<PAGE>
[LOGO] WESTCORE FUNDS Annual Report
[PHOTO]
Westcore Equity Funds May 29, 1998
Westcore MIDCO Growth Fund
Westcore Blue Chip Fund
Westcore Small-Cap Opportunity Fund
Westcore Growth and Income Fund
Westcore Bond Funds
Westcore Intermediate-Term Bond Fund
Westcore Long-Term Bond Fund
Westcore Colorado Tax-Exempt Fund
<PAGE>
[LOGO]
May 29, 1998
DEAR FELLOW SHAREHOLDER:
Another year, another record! Both the U.S. economy and the U.S. financial
markets continue to add to the length and magnitude of their amazing results.
Since our last annual report the Dow Jones Industrial Average has gone up
through the 7000, 8000, and, most recently, 9000 levels. Interest rates for this
period, as measured by long-term treasury bonds, have declined approximately a
full percent from 7% to 6%. The U.S. economy continues to produce above-average
growth with low inflation. A year ago we were talking about the deficit
approaching its lowest level relative to Gross Domestic Product in 15 years and
now the discussion has shifted to budget surpluses. All of this good news has
occurred in the face of an economic and financial meltdown in most of Asia.
Will the record setting environment continue? The clear answer, of course,
is no, but there are no signs on the horizon that suggest a near-term change.
Low inflation and low interest rates plus low unemployment create strong
real-income growth and, combined with the demographically-driven shift to more
savings and investments and the technologically-driven improvement in
productivity, the ingredients remain in place for this favorable environment to
continue for the foreseeable future.
Nonetheless, record high valuations make the market vulnerable to external
shocks, and simple arithmetic suggests that from these levels the returns on
stocks and bonds are unlikely to continue at the rates of the last few years.
The value of investment research in identifying attractive individual securities
and structuring portfolios has never been more important.
Better Research Makes the Difference.
Investment research is an ongoing process and the key to investment
performance. At Westcore we offer a variety of funds intended to meet individual
investment objectives.
Thus, at any given time, our research team may be:
- meeting with company management to assess growth opportunities,
- poring over complex Securities and Exchange Commission documents and
financial statements to assess credit-worthiness to discover corporate
credits that are due for upgrades, or
- building sophisticated quantitative models that help us identify stocks
with the value characteristics that historically have led to good
performance.
Research is a combination of discovery and learning. We are always trying to
discover the best investment ideas and to learn from market history as well as
from our successes and failures.
The performance of our research-driven approach has resulted in favorable
publicity for our funds during the year.
- Westcore Small-Cap Opportunity Fund appeared in an article titled "Best
Funds for Your Goals" by KIPLINGER'S PERSONAL FINANCE MAGAZINE, March
1998.
- Westcore Blue Chip Fund made a WALL STREET JOURNAL article's (4-21-98)
annual short list of stock funds that might appeal to investors who make
their own investment decisions.(1)
[PICTURE]
This report has been prepared for Westcore shareholders and may be
distributed to others only if preceded or accompanied by a prospectus.
Photograph subject: Grenadier Mountains and Molas Lake, San Juan Mountains near
Silverton, Colorado Photographer: Eric Wunrow
<PAGE>
[LOGO]
- Westcore Long-Term Bond Fund ranked #3 out of 101 BBB-Rated Bond Funds
based on total return for the year ended March 31, 1998 according to
Lipper Analytical Services, Inc.(2) (Total return represents past
performance. Past performance is not indicative of future results. Without
the absorption of fee waivers and expense reimbursements, total return
figures would have been lower.)
Year 2000
The "Year 2000 Issue" arises because most business/financial software
written over the past 20 years uses only two digits to specify the date, rather
than four. Therefore, on January 1, 2000, unless software is repaired, computers
with date-sensitive software programs will recognize the year as "00" and may
treat the year as 1900. This could result in computer failure and/or lead to
incorrect calculations.
Westcore Funds has established a Year 2000 Project Team, which is taking
steps that it believes are reasonably designed to address the Year 2000 Issue.
Westcore utilizes major service providers in the operations of the Funds'
business, including the investment adviser, administrator, transfer agent and
custodian. While there can be no guarantee these service providers' systems will
be converted on a timely basis, steps are being taken with each of the Funds'
service providers to evaluate their efforts to address their own Year 2000
situations. At this time, Westcore expects an orderly transition into the 21st
Century.
New Portfolio Manager and New and Improved Services
During the year Jerry Powers took over as portfolio manager for Westcore
Long-Term Bond and Intermediate-Term Bond Funds. Jerry is an experienced
portfolio manager with a research background and a history of managing
fixed-income portfolios substantially larger than the current Funds. His
background is ideally suited to continuing the investment record and style of
these two funds.
Several new services have been introduced. Westcore Funds has made it easy
for shareholders to take advantage of changes in tax laws that enhanced the
flexibility and tax advantages of IRAs and the new Roth IRAs. We have also added
new services to make investing with us easier. Effective August 5, 1998,
information on fund prices, yields and performance as well as specific account
information, including calendar year-end balances, current account balances and
recent transactions will be available 24 hours through the new Westcore
Automated Service Line. Purchases, redemptions and exchanges can also be done 24
hours-a-day using Westcore's Automated Service Line or our online Westcore
Trans@ction Center.
Introducing a New Fund
I am proud to announce that Westcore is launching a new fund that will be
available for investment October 1, 1998. The Fund will seek to maximize
long-term capital appreciation by investing primarily in medium-sized companies
whose stocks appear to be undervalued. Look for more information in your October
prospectus mailing.
Thank you for investing with us for the long-term, and if you are a new
Westcore shareholder -- welcome! We are dedicated to continue meeting your
investment objectives through our commitment to investment research.
Sincerely,
[JACK D. HENDERSON SIGNATURE]
[KENNETH V. PENLAND SIGNATURE]
(1) In the WALL STREET JOURNAL article titled "Your Starting Point for Mutual
Funds? Here Are 65 of Them in the Annual List", the author started with all
5,174 stock-mutual funds. A series of computer screens using a software program
offered by Morningstar Inc. called Morningstar Principia Plus were run. A list
of 65 was comprised by excluding the following: funds that charge a sales
commission; funds with annual expenses greater than 1.4% or an investment
minimum above $5,000; single industry sector or single foreign region funds;
global funds that buy both U.S. and foreign stocks; funds with fund-manager
tenure averages below five years; and funds that failed to outperform 60% of
comparable funds over the past three and five years.
(2) Westcore Long-Term Bond Fund ranked 11th out of 35 funds for the 5-year
period ended 3/31/98. Average annual total returns reflect the reinvestment of
dividends, capital gains distributions, all fee waivers and expense
reimbursements. Investment return and principal value will vary, and shares,
when redeemed, may be worth more or less than their original cost. Westcore fund
shares are not insured by the FDIC, the Federal Reserve Board or any other
agency and are subject to investment risk.
[JACK D. HENDERSON PHOTO]
Jack D. Henderson
CHAIRMAN
[KENNETH V. PENLAND PHOTO]
Kenneth V. Penland, CFA
PRESIDENT
1
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[WESTCORE LOGO]
Manager's Overview
Westcore MIDCO Growth Fund
FUND OBJECTIVE: SEEKS TO MAXIMIZE LONG-TERM CAPITAL APPRECIATION BY INVESTING
PRIMARILY IN MEDIUM-SIZED GROWTH COMPANIES.
[TODGER ANDERSON, CFA PHOTO]
[TODGER ANDERSON, CFA SIGNATURE]
TODGER ANDERSON, CFA
PORTFOLIO MANAGER, WESTCORE MIDCO GROWTH FUND
Q: How was Westcore MIDCO Growth Fund's performance this year?
A: The total return for Westcore MIDCO Growth Fund's fiscal year was 15.10% --
in absolute terms, a very satisfying number. However, on a relative basis when
this number is compared to the S&P 400 Mid-Cap Index, our results were
disappointing. The return on that index was 29.90% for the period.
Q: Why didn't the Fund's return match those of the indices?
A: There are two primary reasons. First, we were underweighted in financial
stocks. We believed these stocks were fully valued relative to their growth
rates. In fact, they went to new historically high valuations. Second, we were
overweighted in healthcare service stocks and these stocks had a tough year.
Q: Didn't some healthcare stocks do well this year?
A: Yes, the very large drug companies such as Pfizer and Merck. Westcore MIDCO
Growth Fund focuses on medium-sized growth companies, and the healthcare service
stocks in our portfolio did not participate in the advances of drug stocks.
Q: What industry was your best?
A: Specialty Retailing was our best. Our investments in this industry included
companies such as Dollar General, Lowe's, TJX Cos., Kohls and Pier One Imports.
Q: Why did Specialty Retailing do so well?
A: Lower interest rates and energy prices left consumers with more money for
discretionary spending. And, because consumers felt confident about their jobs
they spent a lot on such things as clothing and household items.
Q: Can you give us some background on one of the companies you find particularly
interesting?
A: Dollar General is a discount retailer that has developed a successful
business strategy to meet the needs of a segment of the population for everyday
products that are priced affordably. In addition, the management of this company
has re-merchandised its retail locations to emphasize high-margin, high-turnover
products. For example, you might find ironing board covers in one of these
stores, but you wouldn't find ironing boards because they take longer to move
off the shelves.
WESTCORE MIDCO GROWTH FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
Since
Period Ended 1 Year 5 Year 10 Year incep.
<S> <C> <C> <C> <C>
5/29/98 15.10% 14.90% 17.94% 15.54%
6/30/98 14.65% 15.85% 17.41% 15.79%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS REFLECT REINVESTMENT OF ALL DIVIDENDS, CAPITAL
GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN EFFECT AND ANY EXPENSE
REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE REIMBURSEMENTS, THE
TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION DATE IS 8/1/86.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. PRINCIPAL VALUE MAY
FLUCTUATE AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
2
<PAGE>
Annual Report May 29, 1998
Q: What other stocks did well this year?
A: Two stocks that performed well were America Online and WorldCom. More and
more people are connecting to the Internet, and they frequently do this using
America Online. The stock began the year at $28 and ended the year at $83.
WorldCom is our largest holding. It began the year at $30 and ended the year at
$46. Its business is strong and its merger with MCI looks like it will be
successful.
Q: What is your outlook for next year?
A: I believe the stock market will continue to move up but perhaps not as much
as it has over each of the last few years. Stock prices will probably move up in
line with earnings growth, but I do not expect price/earnings ratios to expand.
Q: Why should someone invest -- or stay invested -- in Westcore MIDCO Growth
Fund?
A: Mid-cap stocks may be an attractive sector over the long-term because I
believe they have the potential to outperform large-cap stocks, with less
volatility than small-caps. This fund can be owned by anyone with a time horizon
of three to five years or longer. My two-year old grandson is a MIDCO
shareholder, and so am I at age 54 (it's my largest personal holding). As
always, it depends on your time-horizon, your tolerance for volatility and your
own, individual investment objectives.
Westcore MIDCO Growth Fund
Sector Profile as a Percent of Net Assets
for MAY 29, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Consumer Cyclical 26.79%
Technology 19.11%
Healthcare 15.15%
Credit Sensitive 13.41%
Services 9.59%
Basic Materials 3.90%
Energy 2.83%
Capital Goods 2.60%
Consumer Staples 2.40%
Other 4.22%
</TABLE>
Westcore MIDCO Growth Fund
Top 10 Equity Holdings as of May 29, 1998:
/ / WorldCom Inc
/ / Lowe's Companies Inc
/ / USA Networks Inc
/ / Dollar General Corp
/ / Consolidated Stores Corp
/ / Watson Pharmaceuticals Inc
/ / AES Corp
/ / Westwood One Inc
/ / Loewen Group Inc
/ / Forest Laboratories Inc
Comparison of Change in Value of $10,000
Investment in Westcore MIDCO Growth Fund and
the S&P 400 Mid-Cap Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
$'s shown in thousands
MIDCO Growth Fund S&P 400 Mid-Cap Index
<S> <C> <C>
8/86 10,000 10,000
5/87 12,200 12,622
5/88 10,614 11,810
5/89 13,635 14,974
5/90 15,725 17,463
5/91 20,512 19,522
5/92 23,402 21,447
5/93 27,623 23,935
5/94 29,935 24,954
5/95 32,944 29,980
5/96 45,667 38,491
5/97 48,074 45,477
5/98 55,333 59,079
Please Note: Average Annual Total Returns are for the period ended
5/29/98.
Fund inception date is 8/1/86. Performance calculations are as of
the end
of each fiscal year. Past performance is not indicative of future
results.
</TABLE>
3
<PAGE>
[WESTCORE LOGO]
Manager's Overview
Westcore Blue Chip Fund
FUND OBJECTIVE: SEEKS TO MAXIMIZE LONG-TERM
TOTAL RETURN BY INVESTING IN STOCKS OF LARGE COMPANIES HEADQUARTERED IN THE
UNITED STATES. [VARILYN K. SCHOCK, CFA PHOTO]
[VARILYN K. SCHOCK, CFA SIGNATURE]
VARILYN K. SCHOCK, CFA
PORTFOLIO MANAGER, WESTCORE
BLUE CHIP FUND
Q: How did the Westcore Blue Chip Fund perform relative to its benchmark?
A: The Fund's total return was 29.53%, while the S&P 500 Index was 30.69% for
the year ended May 29, 1998. Large growth stocks that trade at higher valuations
outperformed large value stocks, which is the emphasis of this Fund.
Nevertheless, the Fund outperformed a large value index, the S&P/Barra Value,
which consists of the value stocks within the index.
Q: Did you make any sector weighting changes? Why and how did it affect the
Fund?
A: We reduced Consumer Staples from a slightly overweighted position to match
the index more closely. We increased the Credit Sensitive sector from an
underweighted position to a modest overweighting, which contributed to the
performance of the Fund.
Q: Did you make any investment strategy changes?
A: Late in the fiscal year, we broadened our universe of permissible investments
to include the largest 500 of the Russell 1000 Index as well as all stocks in
the S&P 500 Index. This change increased our investment options while still
maintaining the emphasis on blue chip stocks. It also allowed us to include
stocks that do not pay dividends. We believe that this change is likely to
benefit shareholders and is more comparable to the benchmark, the S&P 500 Index.
Q: How is your investment strategy working?
A: The Fund's strategy is working well against its large-cap value peers while
matching or slightly lagging the S&P 500 Index. It is working well relative to
peers because we focus on owning undervalued stocks with improving businesses
rather than owning "deep discount" stocks that may be very cheap but have
deteriorating businesses or stock prices that may stay flat for an extended
period of time.
Q: How did the economy affect the performance of the Fund?
A: Low interest rates have produced rising profitability for financial stocks
and soaring stock prices. As financials typically have lower valuations, they
have been a strong contributor to the performance of the Fund. The economic and
financial trouble in Asia halted what appeared to be the building of a nice
advance for basic industry stocks.
Q: Do you have any stories about how your research process added value to the
Fund?
A: Unisys, a mainframe computer company, was a stock our quantitative work
identified as having an attractive valuation and a business that was beginning
to turn around after many years of slowing revenues and declining earnings. We
purchased the stock when the company's earnings were exceeding Wall Street's
expectations, and our analysis showed business was improving. It is an example
of our quantitative research combined with experienced judgment identifying a
stock at the right time, and the stock has nearly doubled in price since we
acquired it in September 1997.
WESTCORE BLUE CHIP FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
10
Period Ended 1 Year 5 Year Year Since incep.
<S> <C> <C> <C> <C>
5/29/98 29.53% 20.84% 16.42% 16.42%
6/30/98 28.15% 21.18% 16.54% 16.39%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS REFLECT REINVESTMENT OF ALL DIVIDENDS, CAPITAL
GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN EFFECT AND ANY EXPENSE
REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE REIMBURSEMENTS, THE
TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION DATE IS 6/1/88.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. PRINCIPAL VALUE MAY
FLUCTUATE AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
4
<PAGE>
Annual Report May 29, 1998
Q: What is the outlook for the Fund?
A: The outlook for the Fund seems favorable at this time. Volatility that
financial markets may experience due to the unfolding Asian situation suggests
that stock picking may become increasingly important. So long as interest rates
are low and U.S. consumers and market participants remain optimistic, investing
in U.S. stocks should continue to produce attractive returns.
Q: What kind of investor is the Fund right for?
A: I like to think of the Westcore Blue Chip Fund as a "core holding" in the
equity portion of an investor's portfolio. Investors who are new to investing in
equities may benefit from a value strategy and may appreciate the recognizable
names in the Westcore Blue Chip Fund.
Westcore Blue Chip Fund
Sector Profile as a Percent of Net Assets
for MAY 29, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Credit Sensitive 27.99%
Consumer Cyclical 13.46%
Healthcare 12.29%
Capital Goods 10.90%
Consumer Staples 10.46%
Technology 8.65%
Basic Materials 7.48%
Energy 5.55%
Other 3.22%
</TABLE>
Westcore Blue Chip Fund
Top 10 Equity Holdings as of May 29, 1998:
/ / Dayton Hudson Corp
/ / Rite Aid Corp
/ / Travelers Group Inc
/ / Schering-Plough Corp
/ / Carnival Corp
/ / Becton Dickinson & Co
/ / Unisys Corp
/ / Equitable Companies Inc
/ / United Technologies Corp
/ / McKesson Corp
Comparison of Change in Value of $10,000
Investment in Westcore Blue Chip Fund and the
S&P 500 Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Blue Chip Fund S&P 500 Index
<S> <C> <C>
6/88 10,000 10,000
5/89 11,657 12,679
5/90 13,025 14,786
5/91 14,729 16,530
5/92 16,205 18,159
5/93 18,088 20,266
5/94 18,653 21,129
5/95 22,202 25,385
5/96 27,666 32,592
5/97 34,383 42,174
5/98 44,537 55,117
Please Note: Average Annual Total Returns are for the period ended
5/29/98.
Fund inception date is 6/1/88. Performance calculations are as of
the end
of each fiscal year. Past performance is not indicative of future
results.
</TABLE>
5
<PAGE>
[WESTCORE LOGO]
Manager's Overview
Westcore Small-Cap Opportunity Fund
FUND OBJECTIVE: SEEKS TO MAXIMIZE LONG-TERM CAPITAL APPRECIATION PRIMARILY
THROUGH INVESTMENTS IN DOMESTIC AND FOREIGN EQUITY SECURITIES OF
SMALL-CAPITALIZATION COMPANIES.
[VARILYN K. SCHOCK, CFA PHOTO]
[VARILYN K. SCHOCK, CFA SIGNATURE]
VARILYN K. SCHOCK, CFA
PORTFOLIO MANAGER, WESTCORE
SMALL-CAP OPPORTUNITY FUND
Q: Westcore Small-Cap Opportunity Fund had a good year relative to its
benchmark, the Russell 2000 Index. To what do you attribute this good
performance?
A: Yes, the Fund returned 30.40% compared to 21.24% for the Russell 2000 Index.
We had strong stock selection in several areas -- foods, consumer cyclicals,
services, financials, energy and transportation.
Q: Did sector weightings change in the Fund?
A: Generally, our investment philosophy is to keep economic sector weights in
the Fund similar to those in the Russell 2000 Index. However, we did increase
our weighting in the financial area somewhat, which enhanced the return of the
Fund. We also added high yielding REITs (Real Estate Investment Trusts).
Q: How did the economy affect the performance of the Fund?
A: A strong economy produced rising profits, which benefited many of our
businesses.
Q: Can you share an example of how your investment processes added value this
year?
A: Timberland is a company that makes brown leather casual shoes. This product
is in favor in the marketplace, while the popularity of expensive athletic shoes
is declining. When well-known athletic shoe makers announced earnings
disappointments, Timberland stock declined in sympathy with the overall
industry. Our quantitative analysis identified the stock as attractively priced.
We purchased the stock and the market relatively quickly corrected the error,
producing a positive return for the Fund. Our proprietary valuation models are
designed to identify a pricing opportunity such as this before the market
corrects it.
Q: What other stocks performed well?
A: When Cato Corporation's namesake, John Cato, returned to lead this women's
apparel retailer, he improved merchandising of apparel and sales began to
improve and earnings to pick up. We discovered the stock early and it is now up
over 100% since the Fund acquired it in July 1997. Another stock that was priced
low and identified early was Varlen Corporation whose truck manufacturing
business is exceeding everyone's expectations. Varlen Corp. is up over 85% since
we added it to the portfolio in July 1997.
WESTCORE SMALL-CAP OPPORTUNITY FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
10
Period Ended 1 Year 5 Year Year Since incep.
<S> <C> <C> <C> <C>
5/29/98 30.40% NA NA 20.16%
6/30/98 24.23% NA NA 20.00%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS REFLECT REINVESTMENT OF ALL DIVIDENDS, CAPITAL
GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN EFFECT AND ANY EXPENSE
REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE REIMBURSEMENTS, THE
TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION DATE IS 12/28/93.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. PRINCIPAL VALUE MAY
FLUCTUATE AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
6
<PAGE>
Annual Report May 29, 1998
Q: Why is the value approach to investing working for this Fund?
A: It makes intuitive sense and it is backed by research that demonstrates when
you buy mispriced stocks -- inexpensive stocks with improving businesses -- good
things can happen.
Q: What type of investor might the Westcore Small-Cap Opportunity Fund be right
for?
A: We believe that the small-cap sector of the market has the potential to
perform better on average than large- and mid-cap sectors over time and that the
value approach may reduce volatility. Investors with a long-term investment
horizon who desire diversification into small-cap stocks may find this Fund
particularly interesting.
Westcore Small-Cap Opportunity Fund
Sector Profile as a Percent of Net Assets
for MAY 29, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Credit Sensitive 25.20%
Consumer Cyclical 23.06%
Basic Materials 12.96%
Capital Goods 10.64%
Consumer Staples 7.94%
Healthcare 5.49%
Technology 5.05%
Services 4.06%
Energy 2.91%
Other 2.69%
</TABLE>
Westcore Small-Cap Opportunity Fund
Top 10 Equity Holdings as of May 29, 1998:
/ / Cordant Technologies Inc
/ / Texas Industries Inc
/ / ShopKo Stores Inc
/ / Cato Corp -- Class A
/ / Zale Corp
/ / Footstar Inc
/ / Enhance Financial Services Group Inc
/ / Bindley Western Industries Inc
/ / BJ's Wholesale Club Inc
/ / Bel Fuse Inc
Comparison of Change in Value of $10,000
Investment in Westcore Small-Cap Opportunity
Fund and the Russell 2000 Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
$'s shown in thousands
Small-Cap Opportunity Fund Russell 2000 Index
<S> <C> <C>
1/94 $10,000 $10,000
5/94 $9,770 $9,681
5/95 $10,566 $10,678
5/96 $14,527 $14,518
5/97 $16,892 $15,531
5/98 $22,027 $18,830
Please Note: Average Annual Total Returns are for the period ended
5/29/98.
Fund inception date is 12/28/93. Performance calculations are as of
the end
of each fiscal year. Past performance is not indicative of future
results.
</TABLE>
7
<PAGE>
[WESTCORE LOGO]
Manager's Overview
Westcore Growth and Income Fund
FUND OBJECTIVE: SEEKS TO MAXIMIZE LONG-TERM
TOTAL RETURN BY INVESTING IN EQUITY SECURITIES SELECTED FOR THEIR GROWTH
POTENTIAL AND INCOME PRODUCING ABILITIES.
[MILFORD H. SCHULHOF, II PHOTO]
[MILFORD H. SCHULHOF, II SIGNATURE]
MILFORD H. SCHULHOF, II
PORTFOLIO MANAGER, WESTCORE
GROWTH AND INCOME FUND
Q: How did the Westcore Growth and Income Fund perform against its benchmark,
the S&P 500 Index?
A: The Westcore Growth and Income Fund had a total return of 20.74% for the
year. This was lower than the 30.69% of the S&P 500 Index -- mainly because
large-capitalization stocks continue to dominate the advances in the market.
This year the market rewarded the predictability of earnings and liquidity that
large companies offered.
We believe that large-cap stocks may be overvalued, and the earnings growth
rates of smaller companies will be stronger than larger companies in the next
year. Therefore, we have recently begun to reduce the market-cap size of our
holdings. A movement to smaller stocks in the coming year may be inspired if
large company earnings were to disappoint investors due to factors such as
exposure to foreign markets. The companies we are invested in have strong
earnings growth rates that should compare favorably to the average U.S. company
in the year ahead.
Q: Did you make any sector weighting changes? Why and how did it affect the
Fund?
A: Yes, early in the fiscal year we increased our holdings in Drug stocks -- a
move that benefited the portfolio. Significant new products were introduced by
companies like Pfizer and Warner Lambert and we invested at the right time to
participate in the positive effect this had on their stock prices.
We also raised our energy sector holdings at the beginning of the year
because we expected an increase in energy usage in this healthy economy. A
warmer than normal winter this year, due to the El Nino effect, and the Asian
slowdown reduced the demand for energy. As a result this group didn't perform as
well as expected. However, our underlying evaluation of this sector remains
unchanged and we expect improvement in the coming year.
Q: How did the economy affect the performance of the Fund?
A: The strong consumer environment of the last year had a very positive impact
on our retail stocks such as Dollar General and Family Dollar. A strong housing
market, low interest rates, and healthy consumer balance sheets buoyed building
materials stores such as Home Depot and Lowe's. Lower interest rates also had a
positive impact on our financial stocks.
WESTCORE GROWTH AND INCOME FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
10
Period Ended 1 Year 5 Year Year Since incep.
<S> <C> <C> <C> <C>
5/29/98 20.74% 14.17% 13.38% 13.38%
6/30/98 16.35% 14.27% 13.04% 13.51%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS REFLECT REINVESTMENT OF ALL DIVIDENDS, CAPITAL
GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN EFFECT AND ANY EXPENSE
REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE REIMBURSEMENTS, THE
TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION DATE IS 6/1/88.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. PRINCIPAL VALUE MAY
FLUCTUATE AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
8
<PAGE>
Annual Report May 29, 1998
Q: What is the outlook for the Fund and market?
A: We feel positive about the near-term, because it appears that inflation will
stay low and the economy will continue to grow. A positive interest rate
environment, an accommodative Federal Reserve, and a healthy consumer
environment, among other things, indicate a healthy economy overall, and stocks
in general are expected to do well. We believe our holdings are undervalued and
will deliver strong earnings growth.
Q: What kind of an investor is the Westcore Growth and Income Fund right for?
A: An investor looking for dividend income and a moderate amount of risk. Also,
an investor concerned about capital gains taxation from year-to-year, since we
try to minimize the tax effects of buy and sell decisions in the Fund. Overall,
we like to think the Westcore Growth and Income Fund is designed for the "middle
of the road" investor -- not too conservative and not too aggressive.
Westcore Growth and Income Fund
Sector Profile as a Percent of Net Assets
for MAY 29, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Credit Sensitive 38.50%
Consumer Cyclical 16.96%
Services 9.43%
Healthcare 9.05%
Energy 6.64%
Consumer Staples 5.29%
Technology 3.98%
Basic Materials 3.00%
Capital Goods 2.96%
Other 4.19%
</TABLE>
Westcore Growth and Income Fund
Top 10 Equity Holdings as of May 29, 1998:
/ / AES Corp
/ / Schering-Plough Corp
/ / Loewen Group Inc
/ / Omnicom Group Inc
/ / Frontier Insurance Group Inc
/ / WorldCom Inc
/ / Hartford Life Inc -- Class A
/ / Household International Inc
/ / Lowe's Companies Inc
/ / Camco International Inc
Comparison of Change in Value of $10,000
Investment in Westcore Growth and Income Fund
and the S&P 500 Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
$'s shown in thousands
Growth and Income Fund S&P 500 Index
<S> <C> <C>
6/1/88 $10,000 $10,000
5/31/89 $11,836 $12,679
5/31/90 $13,562 $14,786
5/31/91 $14,792 $16,530
5/31/92 $16,880 $18,159
5/31/93 $18,469 $20,266
5/31/94 $18,785 $21,129
5/31/95 $19,485 $25,385
5/31/96 $24,795 $32,592
5/31/97 $29,682 $42,174
5/31/98 $35,838 $55,117
Please Note: Average Annual Total Returns are for the period ended 5/29/98.
Fund
inception date is 6/1/88. Performance calculations are as of the end of each
fiscal year.
Past performance is not indicative of future results.
</TABLE>
9
<PAGE>
[WESTCORE LOGO]
Manager's Overview
Westcore Intermediate-
Term Bond Fund
FUND OBJECTIVE: SEEKS CURRENT INCOME WITH LESS VOLATILITY OF PRINCIPAL BY
INVESTING PRIMARILY IN INVESTMENT GRADE BONDS. THE FUND EXPECTS TO HAVE
AN AVERAGE DOLLAR-WEIGHTED MATURITY OF BETWEEN 3 AND
6 YEARS. [JEROME R. POWERS, CFA PHOTO]
[JEROME R. POWERS, CFA SIGNATURE]
JEROME R. POWERS, CFA
PORTFOLIO MANAGER, WESTCORE
INTERMEDIATE-TERM BOND FUND
Q: Tell us about the Fund's performance.
A: The Westcore Intermediate-Term Bond Fund had a total return of 8.88% for the
year ended May 29, 1998. This was slightly higher than the 8.84% return for the
Fund's benchmark, the Lehman Brothers Intermediate-Term Government/Corporate
Bond Index.
Q: Why did the Fund outpace its benchmark?
A: Our large exposure to the corporate sector of the bond market enhanced our
performance, because intermediate-term corporate bonds provided more yield than
was available in government securities. The decline in interest rates enhanced
the total return and modestly enhanced the return relative to the benchmark
since we generally maintained a slightly longer-maturity portfolio.
Q: How did the economy affect your performance?
A: The robust economic growth strengthened the already strong fundamental
position of many of our corporate holdings. At the same time, the low inflation
numbers allowed intermediate-term interest rates to continue to drop.
Q: Why do you have such a significant emphasis on corporate bonds?
A: The emphasis on corporate bonds originates from the belief that their higher
yields generate sufficiently higher returns to offset their higher risk. As in
all Westcore Funds, research is critical. Opportunities to add value through
research are abundant in corporate bonds where the underlying credit
fundamentals will determine the return over an economic cycle.
Q: What does the near-term economic environment look like?
A: The economy is beginning to show some signs of slower growth, but remains in
extremely strong condition. Unemployment is at very low levels, and wage
increases are trending modestly higher. Fears of weakness in our domestic
economy due to the serious economic problems being suffered in Asia limit any
desire by the Federal Reserve to increase interest rates.
WESTCORE INTERMEDIATE-
TERM BOND FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
10
Period Ended 1 Year 5 Year Year Since incep.
<S> <C> <C> <C> <C>
5/29/98 8.88% 5.86% 7.83% 7.83%
6/30/98 8.48% 5.69% 7.77% 7.83%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS REFLECT REINVESTMENT OF ALL DIVIDENDS, CAPITAL
GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN EFFECT AND ANY EXPENSE
REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE REIMBURSEMENTS, THE
TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION DATE IS 6/1/88.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. PRINCIPAL VALUE MAY
FLUCTUATE AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
10
<PAGE>
Annual Report May 29, 1998
Q: What type of investor would be interested in the Westcore Intermediate-Term
Bond Fund?
A: This Fund may be appropriate for many types of investors, including those
seeking to reduce their portfolios' exposure to equities by investing in a
fixed-income fund or those seeking to preserve the portfolio gains they have
accumulated over the last few years by re-balancing their overall portfolio to
include more fixed-income exposure.
Westcore Intermediate-Term Bond Fund
Sector Profile as a Percent of Net Assets
for MAY 29, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
US Government Treasuries 30.18%
Industrial 24.73%
Financial 18.46%
Asset-Backed,
Collateralized
Mortgage Obligations, &
Mortgage-Backed
Securities 13.84%
Transportation 7.10%
Utilities 3.02%
Other 2.67%
</TABLE>
Westcore Intermediate-Term Bond Fund
Top 10 Fixed-Income Holdings as of May 29, 1998:
/ / U.S. Treasury Notes*
/ / FHLMC GP#000336, 6.000%, 10/01/24
/ / FNMA Pass-Through Pool #362443, 6.500%, 12/01/08
/ / Walt Disney Co, 6.375%, 03/30/01
/ / Rockwell International Corp, 6.625%, 06/01/05
/ / Aetna Services Inc, 7.125%, 08/15/06
/ / Time Warner Entertainment Co, 9.625%, 05/01/02
/ / Cox Communications Inc, 6.375%, 06/15/00
/ / GNMA Pool #780019, 9.50%, 11/15/09
/ / TKR Cable Inc, 10.50%, 10/30/07
*Please Note: "U.S. Treasury Notes" is a grouping of all U.S. Treasury Note
issues held in the portfolio as of May 29, 1998.
Comparison of Change in Value of $10,000
Investment in Westcore Intermediate-Term Bond
Fund and the Lehman Brothers Intermediate
Government/Corporate Bond Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
$'s shown in thousands
Intermediate-Term Lehman Brothers Intermediate
Government/Corporate Bond
Bond Fund Index
<S> <C> <C>
6/1/88 $10,000 $10,000
5/31/89 $10,884 $10,923
5/31/90 $11,735 $11,915
5/31/91 $12,709 $13,335
5/31/92 $14,287 $14,881
5/31/93 $16,024 $16,429
5/31/94 $16,040 $16,643
5/31/95 $17,473 $18,248
5/31/96 $18,217 $19,087
5/31/97 $19,571 $20,496
5/31/98 $21,308 $22,307
Please Note: Average Annual Total Returns are for the period ended
5/29/98. Fund
inception date is 6/1/88. Performance calculations are as of the end of
each fiscal year.
Past performance is not indicative of future results.
</TABLE>
11
<PAGE>
[WESTCORE LOGO]
Manager's Overview
Westcore Long-Term Bond Fund
FUND OBJECTIVE: SEEKS TO MAXIMIZE LONG-TERM
TOTAL RATE OF RETURN BY INVESTING PRIMARILY IN INVESTMENT GRADE BONDS. THE FUND
EXPECTS TO HAVE AN AVERAGE DOLLAR-WEIGHTED MATURITY OF AT LEAST 10 YEARS.
[JEROME R. POWERS, CFA PHOTO]
[JEROME R. POWERS, CFA SIGNATURE]
JEROME R. POWERS, CFA
PORTFOLIO MANAGER, WESTCORE
LONG-TERM BOND FUND
Q: How did the Fund perform against its benchmark?
A: The Westcore Long-Term Bond Fund had a total return of 16.63% for the year
ended May 29, 1998. This was lower relative to the 18.24% return on the Fund's
benchmark, the Lehman Brothers Long-Term Government/Corporate Bond Index. On an
absolute return basis, however, this was a very strong return.
Q: What factors influenced the Fund's return?
A: Total return was helped by the decline in interest rates created by a very
strong economy. Our performance was less than the index since the maturity of
the Fund was slightly shorter than the benchmark. Our heavy emphasis on
corporate bonds in the long-term portfolio weakened our performance in
comparison to the benchmark. This was due to the market's anticipation that
Asian economic problems would cause weakness in U.S. companies. Longer maturity
corporate bonds underperformed government bonds in this period. Despite this
recent weakness, we remain committed to our emphasis on corporate bonds. We
believe the opportunity to use our experience and exceptional research skills in
the corporate sector can add value to the Fund over the long-term.
Q: What economic environment were you working in?
A: The low inflation numbers drove long-term interest rates lower in spite of a
stable Federal Reserve policy. Market participants for years have been expecting
an increase in inflation, but it has failed to materialize in spite of a very
robust economy with tremendous job growth. This strong economy can, in part, be
credited to productivity improvements companies have achieved by capital
investments.
WESTCORE LONG-TERM BOND FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
10
Period Ended 1 Year 5 Year Year Since incep.
<S> <C> <C> <C> <C>
5/29/98 16.63% 8.52% 10.55% 10.55%
6/30/98 16.71% 8.19% 10.51% 10.66%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS REFLECT REINVESTMENT OF ALL DIVIDENDS, CAPITAL
GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN EFFECT AND ANY EXPENSE
REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE REIMBURSEMENTS, THE
TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION DATE IS 6/1/88.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. PRINCIPAL VALUE MAY
FLUCTUATE AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
12
<PAGE>
Annual Report May 29, 1998
Q: What type of investor would the Westcore Long-Term Bond Fund be right for?
A: This Fund has a higher degree of volatility than one might expect from a
fixed-income fund, due to the longer maturity. This makes it a potentially
attractive fund for investors who believe interest rates will move lower due to
inflation remaining low, the reduction in government debt issuance and the
general demand for financial assets. It can also be a diversifying asset for
those concerned they have an overexposure to the equity market. The greater
volatility may be appropriate for investors with a long-term investment horizon
who can withstand shorter-term fluctuation in the Fund's net asset value.
Westcore Long-Term Bond Fund
Sector Profile as a Percent of Net Assets
for MAY 29, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
US Government Treasuries 43.03%
Financial 19.58%
Industrial 19.31%
Transportation 5.92%
Asset-Backed,
Collateralized
Mortgage Obligations, &
Mortgage-Backed Securities 4.01%
Utilities 3.99%
Other 4.16%
</TABLE>
Westcore Long-Term Bond Fund
Top 10 Fixed-Income Holdings as of May
29, 1998
/ / US Treasury Bonds*
/ / US Treasury Strips*
/ / Long Island Lighting Co, 7.125%,
06/01/05
/ / Lincoln National Corp, 9.125%,
10/01/24
/ / TCI Communications Inc, 8.000%,
08/01/05
/ / Kmart Corp, 7.950%, 02/01/23
/ / Borden Inc, 7.875%, 02/15/23
/ / AMR Corp, 10.00%, 04/15/21
/ / Lubrizol Corp, 7.25%, 06/15/25
/ / US Treasury Note, 7.00%, 07/15/06
*Please Note: "U.S. Treasury Bonds" is
a grouping of all U.S. Treasury Bond
issues and "U.S. Treasury Strips" is a
grouping of all U.S. Treasury Strip
issues held in the portfolio as of May
29, 1998.
Comparison of Change in Value of $10,000
Investment in Westcore Long-Term Bond Fund
and the Lehman Brothers Long-Term
Government/Corporate Bond Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
$'s shown in thousands
Lehman Brothers
Long-Term Government/Corporate
Long-Term Bond Fund Bond Index
<S> <C> <C>
6/1/88 $10,000 $10,000
5/31/89 $11,376 $11,604
5/31/90 $12,179 $12,575
5/31/91 $13,625 $14,154
5/31/92 $15,538 $16,107
5/31/93 $18,242 $18,836
5/31/94 $18,196 $18,806
5/31/95 $20,811 $21,991
5/31/96 $21,521 $22,613
5/31/97 $23,544 $24,723
5/31/98 $27,459 $29,232
Please Note: Average Annual Total Returns are for the period ended 5/29/98.
Fund
inception date is 6/1/88. Performance calculations are as of the end of each
fiscal year.
Past performance is not indicative of future results.
</TABLE>
13
<PAGE>
[WESTCORE LOGO]
Manager's Overview
Westcore Colorado Tax-Exempt Fund
FUND OBJECTIVE: SEEKS TO PROVIDE INCOME EXEMPT FROM BOTH FEDERAL AND COLORADO
STATE PERSONAL INCOME TAXES BY EMPHASIZING COLORADO MUNICIPAL BONDS WITH
INTERMEDIATE MATURITIES. [ROBERT O. LINDIG PHOTO]
[ROBERT O. LINDIG SIGNATURE]
ROBERT O. LINDIG
PORTFOLIO MANAGER, WESTCORE
COLORADO TAX-EXEMPT FUND
Q: How did the Westcore Colorado Tax-Exempt Fund perform this year?
A: During the year ended May 29, 1998, the Fund had a total return of 7.32%
compared to the Lehman Brothers 10-Year Municipal Bond Index total return of
9.28%. Based on the high quality and insured bond emphasis of the Fund, this
shortfall is not unexpected in the current interest rate environment. The Lehman
Brothers 10-Year Municipal Bond Index measures a national universe of municipal
issues as opposed to a single-state fund. In addition, the quality ratings
within the Index are lower than those of the Fund. These factors contributed to
the shortfall.
Q: Can you explain how you approach management of the Fund?
A: The goal of Westcore Colorado Tax-Exempt Fund is to seek federal and Colorado
state tax-exempt income consistent with safety and stability of principal. This
objective results in the selection of high-quality and insured bonds with a
taxable equivalent yield differential that is attractive in comparison to U.S.
Treasury issues with similar maturities. By emphasizing intermediate-term
maturities, the Fund reduces the interest rate risk volatility normally present
in a long-term fund. Additionally, the Fund maintains a low portfolio turnover
ratio to minimize the tax effect of capital gains and losses.
Q: Although total return is not your primary goal, are you taking any steps to
improve the tax-exempt yield and income in the current market environment?
A: Yes, the Fund has started to add higher coupon bonds with longer maturities
(10-15 years) and intermediate (5-8 years) call features. This type of bond is
intended to increase current tax-exempt income as well as yield to maturity --
because if they are not called for payment on the call date, we obtain a longer
stream of income and a higher yield to maturity. In addition, to augment current
income levels the Fund is concentrating on purchasing "full coupon" premium
bonds that are non-callable.
Q: The assets of the Fund have tripled over the last three years. To what do you
attribute this growth and how has it affected your management of the Fund?
A: We believe Colorado investors have discovered a high-quality, double
tax-exempt fund with no loads, no 12b-1 fees and a low expense ratio as compared
to other Colorado tax-exempt bond funds. The growth has not changed our
management of the Fund -- we continue to add high quality issues to the
portfolio. Insured and escrowed bonds collectively represented 84% of the Fund
portfolio as of May 29, 1998, whereas Aaa/AAA issues represented only 53% of the
Lehman Brothers 10-Year Municipal Bond Index. We diversify the types of
municipal projects we invest in, such as school districts, fire protection
districts, general obligation hospitals, sales and use tax revenue and
water/sewer and sanitation systems. In addition, we geographically divide the
holdings, and on May 29, 1998 the Fund held over 120 different Colorado issues.
Our geographic exposure mirrors the population concentration of the state:
Front Range: 74.53% Western Slope: 22.94% Eastern Plains: 2.53%
WESTCORE COLORADO TAX-EXEMPT FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
10
Period Ended 1 Year 5 Year Year Since incep.
<S> <C> <C> <C> <C>
5/29/98 7.32% 5.61% NA 6.65%
6/30/98 6.71% 5.36% NA 6.61%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS REFLECT REINVESTMENT OF ALL DIVIDENDS, CAPITAL
GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN EFFECT AND ANY EXPENSE
REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE REIMBURSEMENTS, THE
TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION DATE IS 6/1/91.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. PRINCIPAL VALUE MAY
FLUCTUATE AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
14
<PAGE>
Annual Report May 29, 1998
Q: What was the market environment like for investment-grade bonds this year?
A: During the Fund's fiscal year, the demand for investment-grade municipal
securities was relatively balanced against the available bond supply. The 20 GO
Bond Buyer Index, a standard for evaluating overall municipal market trends,
declined to 5.13% on May 29, 1998 from 5.63% on May 28, 1997.
Q: To what type of investor would this Fund be attractive?
A: First and foremost the Fund seeks to offer double tax-exempt income to
Colorado residents -- so they do not pay federal or Colorado state income tax on
the income generated by the Fund. It seeks to provide double tax-exempt income
while striving for safety and stability of principal through its emphasis on
intermediate maturities and high-quality, insured issues. As of May 29, 1998,
the average maturity of the Fund's portfolio was 9.34 years. As such, it may be
a desirable fund for a core portion of the portfolio for more conservative or
tax conscious, income-seeking Colorado investors.
Westcore Colorado Tax-Exempt Fund
Top 10 Municipal Bond Holdings as of May 29, 1998:
/ / Boulder & Gilpin Counties, Boulder Valley School District No Re-2, GO,
5.00%, 12/01/11, Optional 12/01/07 @ 101.00, FGIC
/ / Goldsmith Metropolitan District, Arapahoe & Denver Counties GO, 6.50%,
12/01/03, Optional 12/01/99 @ 101.00, MBIA
/ / Boulder County Open Space Sales & Use Tax Revenue, 5.75%, 12/15/04, FGIC
/ / Jefferson County School Dist R-1, GO, 5.90%, 12/15/04, Prerefunded 12/15/02
@ 101.00, 10/15/92, AMBAC
/ / Weld County Certificate of Participation Correctional Facilities, Lease
Purchase Agreement Revenue, 5.35%, 08/01/10, Optional anytime @ 100.00, MBIA
/ / Municipal Subdistrict, Northern Colorado Water Conservancy District Water
Revenue, 5.85%, 12/01/02, AMBAC
/ / El Paso County School District No 11, GO, 5.50%, 12/01/14, Optional 12/01/07
@ 103.00
/ / Adams County School District No 14, GO, 5.30%, 12/01/09, Optional 12/01/07 @
101.00, FSA
/ / Mesa County Sewer Revenue, 5.85%, 11/01/05, Optional 11/01/02 @ 100.00, FGIC
/ / Boulder, Boulder County Water & Sewer Revenue, 5.50%, 12/01/11, Optional
12/01/06 @ 100.00
Westcore Colorado
Westcore Colorado Westcore Colorado Tax-Exempt
Tax-Exempt Fund Tax-Exempt Fund Fund Stated Maturities
Sector Profile as a Quality Analysis Profile Profile as a Percent of
Percent of Net Assets for as a Percent of Par Value Par Value
MAY 29, 1998 for MAY 29, 1998 for MAY 29, 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
General Obligation Bonds 58.60%
Revenue Bonds 29.45%
Certificates of
Participation 4.49%
Other 7.46%
Aaa (Insured) 80.06%
Aa 13.72%
Escrowed to Maturity 3.43%
Aa1/AA 2.08%
Aaa 0.71%
11 to 15 year 37.11%
6 to 10 year 31.13%
1-5 year 19.66%
16 to 20 year 12.10%
</TABLE>
Comparison of Change in Value of $10,000 Investment in Westcore Colorado
Tax-Exempt Fund and the Lehman Brothers 10-Year Municipal Bond Index
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
$'s shown in thousands
Colorado Lehman Brothers 10-Yr.
Tax-Exempt Fund Municipal Bond Index
<S> <C> <C>
6/1/91 $10,000 $10,000
5/31/92 $10,836 $10,982
5/31/93 $11,949 $12,297
5/31/94 $12,334 $12,601
5/31/95 $13,217 $13,781
5/31/96 $13,741 $14,411
5/31/97 $14,629 $15,606
5/31/98 $15,699 $17,054
Please Note: Average Annual Total Returns are for the period ended 5/29/98.
Fund
inception date is 6/1/91. Performance calculations are as of the end of each
fiscal year.
Past performance is not indicative of future results.
</TABLE>
15
<PAGE>
[WESTCORE LOGO]
Definition of Indices
STANDARD & POOR'S 500 INDEX is a broad-based measurement of
changes in stock-market conditions based on the average
performance of 500 widely held common stocks. It is an
unmanaged index.
STANDARD & POOR'S BARRA VALUE INDEX is a
capitalization-weighted index of all the stocks in the
Standard & Poor's 500 Index that have low price-to-book
ratios. The index was developed with a base value of 35 as
of December 31, 1974. The index is rebalanced semi-annually
on January 1 and July 1. It is designed so that
approximately 50% of the S&P 500 Index market capitalization
is in the Value Index. It is an unmanaged index.
STANDARD & POOR'S BARRA GROWTH INDEX is a
capitalization-weighted index of all the stocks in the
Standard & Poor's 500 Index that have high price-to-book
ratios. The index was developed with a base value of 35 as
of December 31, 1974. The index is rebalanced semi-annually
on January 1 and July 1. It is designed so that
approximately 50% of the S&P 500 Index market capitalization
is in the Growth Index. It is an unmanaged index.
STANDARD & POOR'S 400 MID-CAP INDEX is a broad-based
measurement of changes in stock-market conditions based on
the average performance of 400 middle capitalization issues.
It is an unmanaged index.
RUSSELL 2000 INDEX represents the bottom two-thirds of the
largest 3,000 publicly traded companies domiciled in the
United States. Only common stocks are included in the index;
in the case of multiple classes of stock, generally only one
is allowed. It is an unmanaged index.
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND
INDEX includes fixed rate debt issues rated investment grade
or higher by Moody's Investors Services, Standard & Poor's
Corporation or Fitch Investor's Service, in order.
Intermediate indices include bonds with maturities of up to
ten years. It is an unmanaged index.
THE LEHMAN BROTHERS LONG-TERM GOVERNMENT/CORPORATE BOND
INDEX includes fixed rate debt issues rated investment grade
or higher by Moody's Investors Services, Standard & Poor's
Corporation or Fitch Investor's Service, in order. Long-term
indices include bonds with maturities of ten years or
longer. It is an unmanaged index.
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX includes
investment-grade (Moody's Investor Services Aaa to Baa,
Standard & Poor's Corporation AAA to BBB) tax-exempt bonds
with maturities between eight and twelve years. It is an
unmanaged index.
16
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE MIDCO GROWTH FUND
May 29, 1998
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<C> <S> <C>
COMMON STOCKS 95.78%
- --------------------------------------------------------------------
BASIC MATERIALS 3.90%
- --------------------------------------------------------------------
Chemicals 1.77%
- --------------------------------------------------------------------
60,200 Avery Dennison Corp $ 3,119,113
102,600 Crompton & Knowles Corp 2,763,787
57,600 Cytec Industries Inc** 2,822,400
69,100 W. R. Grace & Co 1,282,669
-------------
9,987,969
-------------
Distribution .50%
- --------------------------------------------------------------------
57,100 Fastenal Co 2,826,450
-------------
Metals .50%
- --------------------------------------------------------------------
182,700 National Steel Corp - Class B 2,877,525
-------------
Paper & Packaging .49%
- --------------------------------------------------------------------
54,200 Bowater Inc 2,743,875
-------------
Transportation .64%
- --------------------------------------------------------------------
42,300 US Airways Group Inc** 2,961,000
21,200 US Freightways Corp 667,800
-------------
3,628,800
-------------
TOTAL BASIC MATERIALS
(Cost $22,451,608) 22,064,619
-------------
CAPITAL GOODS 2.60%
- --------------------------------------------------------------------
Aerospace & Defense .89%
- --------------------------------------------------------------------
118,500 Gulfstream Aerospace Corp** 5,036,250
-------------
Engineering & Construction .26%
- --------------------------------------------------------------------
33,300 Ionics Inc** 1,490,175
-------------
Office Products .82%
- --------------------------------------------------------------------
274,100 US Office Products Co** 4,642,569
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<C> <S> <C>
Other Capital Goods .63%
- --------------------------------------------------------------------
74,200 MSC Industrial Direct Co Inc - Class A** $ 1,980,213
60,500 Rental Service Corp** 1,569,218
-------------
3,549,431
-------------
TOTAL CAPITAL GOODS
(Cost $13,657,669) 14,718,425
-------------
CONSUMER CYCLICALS 26.79%
- --------------------------------------------------------------------
Automotive 1.06%
- --------------------------------------------------------------------
101,200 Gentex Corp ** 3,706,450
42,400 Lear Corp** 2,263,100
-------------
5,969,550
-------------
Building Related 1.52%
- --------------------------------------------------------------------
97,800 Furniture Brands International Inc** 2,885,100
76,100 Interface Inc 2,982,169
53,500 Leggett & Platt Inc 2,688,375
-------------
8,555,644
-------------
Consumer Products 1.54%
- --------------------------------------------------------------------
86,300 Mattel Inc 3,268,613
113,100 Newell Co 5,457,075
-------------
8,725,688
-------------
Hotels - Restaurants - Leisure .37%
- --------------------------------------------------------------------
67,200 Four Seasons Hotels Inc 2,100,000
-------------
Media - Publishing - Cable 8.07%
- --------------------------------------------------------------------
78,500 CBS Corp** 2,492,375
102,300 Chancellor Media Corp** 4,277,419
48,800 Clear Channel Communications Inc** 4,678,700
72,000 Comcast Corp - Special Class A 2,468,254
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<C> <S> <C>
196,100 Tele-Communications Inc - Liberty Media
Group - Class A** $ 6,728,681
22,400 Tribune Co 1,498,000
474,920 USA Networks Inc** 11,635,540
58,700 Viacom Inc - Class B** 3,228,500
322,200 Westwood One Inc** 8,618,850
-------------
45,626,319
-------------
Other Consumer Cyclicals 1.02%
- --------------------------------------------------------------------
94,050 Unifi Inc 3,662,072
64,900 WestPoint Stevens Inc** 2,125,475
-------------
5,787,547
-------------
Retail 13.21%
- --------------------------------------------------------------------
38,442 Abercrombie & Fitch Co - Class A** 1,624,175
134,600 Bed Bath & Beyond Inc** 6,755,237
238,056 Consolidated Stores Corp** 9,090,764
295,951 Dollar General Corp 11,283,131
421,600 Family Dollar Stores Inc 6,982,750
136,800 Kohl's Corp** 6,506,550
156,500 Lowe's Companies Inc 12,392,843
39,300 Payless ShoeSource Inc** 2,753,456
307,800 PETsMART Inc** 3,039,525
147,450 Pier 1 Imports Inc 3,548,016
85,700 Proffitt's Inc** 3,363,725
76,600 TJX Companies Inc 3,581,050
121,200 Zale Corp** 3,749,625
-------------
74,670,847
-------------
TOTAL CONSUMER CYCLICALS
(Cost $95,490,632) 151,435,595
-------------
CONSUMER STAPLES 2.40%
- --------------------------------------------------------------------
Food, Beverages & Tobacco .57%
- --------------------------------------------------------------------
86,200 Coca-Cola Enterprises Inc 3,237,888
-------------
</TABLE>
17
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE MIDCO GROWTH FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<S> <C> <C>
Household Products .52%
- --------------------------------------------------------------------
34,400 Clorox Co $ 2,872,400
-------------
Retail Food & Drug 1.31%
- --------------------------------------------------------------------
140,000 Rite Aid Corp 5,013,750
73,000 US Foodservice** 2,418,125
-------------
7,431,875
-------------
TOTAL CONSUMER STAPLES
(Cost $13,063,590) 13,542,163
-------------
CREDIT SENSITIVE 13.41%
- --------------------------------------------------------------------
Banks 1.54%
- --------------------------------------------------------------------
36,000 Amsouth Bancorporation 1,383,750
29,500 First America Corp Tennessee 1,368,063
21,000 Northern Trust Corp 1,481,157
48,200 Star Banc Corp 2,940,200
30,200 Summit Bancorp 1,513,775
-------------
8,686,945
-------------
Financial Services 2.75%
- --------------------------------------------------------------------
107,500 Green Tree Financial Corp 4,320,156
47,600 Kansas City Southern Industries Inc 2,017,050
84,600 MGIC Investment Corp 5,070,713
37,200 The PMI Group Inc 2,796,975
58,400 Waddell & Reed Financial Inc - Class A 1,350,500
-------------
15,555,394
-------------
Insurance 2.53%
- --------------------------------------------------------------------
29,200 Ambac Financial Group Inc 1,596,875
33,100 Executive Risk Inc 2,083,231
89,490 Frontier Insurance Group Inc 2,192,505
41,600 Hartford Life Inc - Class A** 2,142,400
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<S> <C> <C>
178,866 Mutual Risk Management Ltd $ 6,271,489
-------------
14,286,500
-------------
Utilities - Electric 1.54%
- --------------------------------------------------------------------
183,094 AES Corp** 8,708,408
-------------
Utilities - Gas .86%
- --------------------------------------------------------------------
96,700 Enron Corp 4,847,088
-------------
Utilities - Telephone 4.19%
- --------------------------------------------------------------------
45,800 Premiere Technologies Inc** 1,093,475
496,990 Worldcom Inc** 22,613,045
-------------
23,706,520
-------------
TOTAL CREDIT SENSITIVE
(Cost $41,273,580) 75,790,855
-------------
ENERGY 2.83%
- --------------------------------------------------------------------
Energy Equipment & Services 2.33%
- --------------------------------------------------------------------
187,400 Noble Drilling Corp** 5,528,300
265,904 R&B Falcon Corp** 7,628,121
-------------
13,156,421
-------------
Energy Producers .50%
- --------------------------------------------------------------------
64,700 Pioneer Natural Resources Co 1,520,450
29,600 Vastar Resources Inc 1,324,600
-------------
2,845,050
-------------
TOTAL ENERGY
(Cost $12,018,404) 16,001,471
-------------
HEALTHCARE 15.15%
- --------------------------------------------------------------------
Biotechnology 1.25%
- --------------------------------------------------------------------
56,900 Biogen Inc** 2,503,600
80,400 Centocor Inc** 3,135,600
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<S> <C> <C>
72,200 North American Vaccine Inc** $ 1,412,413
-------------
7,051,613
-------------
Drugs & Healthcare Products 7.98%
- --------------------------------------------------------------------
77,300 ALZA Corp** 3,739,388
46,500 Arrow International Inc 1,607,156
71,400 Boston Scientific Corp** 4,551,750
233,200 Forest Laboratories Inc** 7,695,600
79,500 Guidant Corp 5,122,781
102,100 Lifecore Biomedical Inc** 1,895,231
186,200 Mylan Laboratories Inc 5,586,000
245,200 Sybron International Corp** 5,869,475
205,364 Watson Pharmaceuticals Inc** 8,984,675
-------------
45,052,056
-------------
Healthcare Services 5.92%
- --------------------------------------------------------------------
83,800 Access Health Inc** 2,147,375
93,300 Alternative Living Services Inc** 2,530,763
110,105 Concentra Managed Care Inc** 2,573,704
112,500 HBO & Company 6,493,364
64,200 Health Care & Retirement Corp** 2,483,738
121,775 Health Management Associates Inc - Class
A** 3,630,417
95,600 HEALTHSOUTH Corp** 2,712,650
153,500 Orthodontic Centers of America Inc** 3,252,281
60,200 Pediatrix Medical Group Inc** 2,178,488
8,800 Sunrise Assisted Living Inc** 265,100
88,600 Total Renal Care Holdings Inc** 2,718,912
</TABLE>
18
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE MIDCO GROWTH FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<S> <C> <C>
38,500 Wellpoint Health Networks Inc** $ 2,502,500
-------------
33,489,292
-------------
TOTAL HEALTHCARE
(Cost $63,518,974) 85,592,961
-------------
SERVICES 9.59%
- --------------------------------------------------------------------
Business Services 6.21%
- --------------------------------------------------------------------
114,733 ACNielsen Corp** 2,961,546
41,700 CKS Group Inc** 834,000
27,000 Comdisco Inc 982,125
42,700 Concord EFS Inc** 1,361,063
163,000 Corrections Corporation of America** 3,708,250
74,000 Eastern Environmental Services Inc** 2,109,000
59,700 Interim Services Inc** 1,735,031
41,900 Mail-Well Inc** 1,927,400
184,600 Newpark Resources Inc** 3,357,413
89,000 Philip Services Corp** 344,875
189,100 Snyder Communications Inc** 7,623,094
55,700 Staff Leasing Inc** 1,587,450
110,790 USA Waste Services Inc** 5,227,902
55,800 Wilmar Industries Inc** 1,367,100
-------------
35,126,249
-------------
Consumer Services 3.38%
- --------------------------------------------------------------------
194,300 Apollo Group Inc Class A** 6,205,456
150,545 Cendant Corp** 3,264,945
300,800 Loewen Group Inc 8,272,000
44,550 Sylvan Learning Systems Inc** 1,358,775
-------------
19,101,176
-------------
TOTAL SERVICES
(Cost $45,648,884) 54,227,425
-------------
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<S> <C> <C>
TECHNOLOGY 19.11%
- --------------------------------------------------------------------
Computer Hardware .50%
- --------------------------------------------------------------------
68,000 EMC Corp** $ 2,817,750
-------------
Computer Services & Software 10.49%
- --------------------------------------------------------------------
76,200 America Online Inc** 6,348,413
141,400 BMC Software Inc** 6,513,237
184,600 Cadence Design Systems Inc** 6,507,150
65,600 Cambridge Technology Partners Inc** 3,290,253
60,700 Computer Sciences Corp** 3,152,606
82,600 Compuware Corp** 3,794,438
21,600 Documentum Inc** 1,017,900
57,200 Fiserv Inc** 3,373,015
158,475 Harbinger Corp** 3,689,504
50,500 Intuit Inc** 2,392,438
58,000 J D Edwards & Co** 2,133,315
52,900 Network Associates Inc** 3,240,125
165,200 PeopleSoft Inc** 7,217,175
57,960 Renaissance Worldwide Inc** 1,090,373
97,800 Sterling Commerce Inc** 3,881,438
54,875 Technology Solutions Co** 1,656,539
-------------
59,297,919
-------------
Electronics 2.51%
- --------------------------------------------------------------------
134,900 Atmel Corp** 1,998,206
19,700 Linear Technology Corp 1,377,768
69,100 Maxim Integrated Products Inc** 2,306,212
134,600 Micron Technology Inc** 3,171,513
110,900 SanDisk Corp** 1,788,263
85,900 Solectron Corp** 3,554,113
-------------
14,196,075
-------------
Networking 1.39%
- --------------------------------------------------------------------
81,500 Ascend Communications Inc** 3,519,781
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<S> <C> <C>
178,500 Cabletron Systems Inc** $ 2,298,188
93,800 FORE Systems Inc** 2,063,600
-------------
7,881,569
-------------
Telecommunications 4.22%
- --------------------------------------------------------------------
81,000 Advanced Fibre Communications Inc** 3,002,063
79,300 CIENA Corp** 4,123,600
59,300 Concentric Network Corp** 1,312,013
35,400 MindSpring Enterprises Inc** 1,877,307
69,300 Natural Microsystems Corp** 1,483,456
58,100 Pacific Gateway Exchange Com** 2,476,512
237,700 PairGain Technologies Inc** 3,714,062
38,300 Premisys Communications Inc** 953,911
74,600 Uniphase Corp** 3,804,600
84,800 USN Communications Inc** 1,102,400
-------------
23,849,924
-------------
TOTAL TECHNOLOGY
(Cost $90,458,075) 108,043,237
-------------
TOTAL COMMON STOCKS
(Cost $397,581,416) 541,416,751
-------------
MUTUAL FUNDS 4.96%
- --------------------------------------------------------------------
25,063,502 Dreyfus Cash Management Fund 25,063,502
3,000,000 Financial Investors Trust US Government
Fund 3,000,000
-------------
TOTAL MUTUAL FUNDS
(Cost $28,063,502) 28,063,502
-------------
</TABLE>
19
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE MIDCO GROWTH FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<S> <C> <C>
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED 18.64%
- --------------------------------------------------------------------
COMMERCIAL PAPER 14.49%
- --------------------------------------------------------------------
$ 6,000,000 American Express, 06/01/98, 5.51% $ 5,998,163
6,000,000 American General, 06/03/98, 5.52% 5,996,314
6,000,000 Asset Securitization, 06/01/98, 5.50% 5,998,160
8,000,000 Associates Corp, 06/01/98, 5.58% 7,997,520
8,000,000 BBL North America, 06/12/98, 5.50% 7,984,067
8,000,000 Ford Motor Credit, 06/18/98, 5.48% 7,976,827
3,000,000 General Motors Acceptance Corp,
06/03/98, 5.55% 2,998,147
5,000,000 General Motors Acceptance Corp,
06/04/98, 5.53% 4,996,154
8,000,000 Henkel Corp, 06/08/98, 5.49% 7,988,988
8,000,000 Merril Lynch, 06/23/98, 5.53% 7,970,457
7,000,000 Paccar Financial Corp, 06/01/98, 5.53% 6,997,845
9,000,000 USAA, 06/10/98, 5.48% 8,984,887
-------------
TOTAL COMMERCIAL PAPER
(Cost $81,887,529) 81,887,529
-------------
MUTUAL FUNDS 4.15%
- --------------------------------------------------------------------
17,412,175 AIM Liquid Assets Fund 17,412,175
5,603,853 AIM Prime Portfolio Fund 5,603,853
365,319 Provident Temp Fund 365,319
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -------------
<S> <C> <C>
57,186 Provident TempCash Fund $ 57,186
-------------
TOTAL MUTUAL FUNDS
(Cost $23,438,533) 23,438,533
-------------
TOTAL INVESTMENTS OF CASH COLLATERAL FOR SECURITIES
LOANED
(Cost $105,326,062)
105,326,062
-------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $530,970,980) 119.38% $ 674,806,315
Liabilities in Excess of Other Assets (19.38%) (109,513,075)
-------------------------
NET ASSETS 100.00% $ 565,293,240
-------------------------
-------------------------
</TABLE>
See Notes to Statements of Investments.
WESTCORE BLUE CHIP FUND
May 29, 1998
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -----------
<C> <S> <C>
COMMON STOCKS 96.78%
- ------------------------------------------------------------------
BASIC MATERIALS 7.48%
- ------------------------------------------------------------------
Chemicals 1.03%
- ------------------------------------------------------------------
13,400 ARCO Chemical Co $ 747,050
-----------
Metals 2.38%
- ------------------------------------------------------------------
19,600 Timken Co 737,450
27,600 USX - US Steel Group Inc 990,150
-----------
1,727,600
-----------
Transportation 4.07%
- ------------------------------------------------------------------
10,200 AMR Corp** 1,570,163
19,700 US Airways Group Inc** 1,379,000
-----------
2,949,163
-----------
TOTAL BASIC MATERIALS
(Cost $5,056,089) 5,423,813
-----------
CAPITAL GOODS 10.90%
- ------------------------------------------------------------------
Aerospace & Defense 2.66%
- ------------------------------------------------------------------
20,500 United Technologies Corp 1,927,000
-----------
Electrical Equipment 2.10%
- ------------------------------------------------------------------
37,050 Parker - Hannifin Corp 1,521,366
-----------
Engineering & Construction 2.00%
- ------------------------------------------------------------------
32,200 Ingersoll-Rand Co 1,451,012
-----------
Machinery & Equipment 4.14%
- ------------------------------------------------------------------
44,800 Dover Corp 1,680,000
23,900 PACCAR Inc 1,319,729
-----------
2,999,729
-----------
TOTAL CAPITAL GOODS
(Cost $6,011,461) 7,899,107
-----------
</TABLE>
20
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE BLUE CHIP FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -----------
<S> <C> <C>
CONSUMER CYCLICALS 13.46%
- ------------------------------------------------------------------
Automotive 4.95%
- ------------------------------------------------------------------
13,200 Eaton Corp $ 1,185,525
14,800 Goodyear Tire & Rubber Co 1,063,750
36,200 ITT Industries Inc 1,334,875
-----------
3,584,150
-----------
Hotels - Restaurants - Leisure 2.84%
- ------------------------------------------------------------------
30,400 Carnival Corp 2,059,600
-----------
Retail 5.67%
- ------------------------------------------------------------------
54,500 Dayton Hudson Corp 2,527,437
81,500 Kmart Corp** 1,579,063
-----------
4,106,500
-----------
TOTAL CONSUMER CYCLICALS
(Cost $6,154,083) 9,750,250
-----------
CONSUMER STAPLES 10.46%
- ------------------------------------------------------------------
Food, Beverages & Tobacco 1.90%
- ------------------------------------------------------------------
23,400 Sara Lee Corp 1,377,675
-----------
Retail Food & Drug 8.56%
- ------------------------------------------------------------------
24,100 CVS Corp 1,691,518
101,800 Food Lion Inc - Class A 986,187
63,800 Rite Aid Corp 2,284,838
29,700 SUPERVALU Inc 1,243,688
-----------
6,206,231
-----------
TOTAL CONSUMER STAPLES
(Cost $5,122,453) 7,583,906
-----------
CREDIT SENSITIVE 27.99%
- ------------------------------------------------------------------
Banks 8.57%
- ------------------------------------------------------------------
12,350 Chase Manhattan Corp 1,678,828
20,800 Comerica Inc 1,367,600
28,580 First Union Corp 1,580,831
20,900 NationsBank Corp 1,583,175
-----------
6,210,434
-----------
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -----------
<S> <C> <C>
Financial Services 11.64%
- ------------------------------------------------------------------
31,000 Bear Stearns Companies Inc $ 1,681,750
15,100 Golden West Financial Corp 1,630,800
18,400 Lehman Brothers Holdings Inc 1,305,250
40,150 SLM Holding Corp 1,603,491
36,349 Travelers Group Inc 2,217,289
-----------
8,438,580
-----------
Insurance 2.67%
- ------------------------------------------------------------------
28,100 Equitable Companies Inc 1,935,388
-----------
Utilities - Electric 5.11%
- ------------------------------------------------------------------
36,800 DTE Energy Co 1,455,900
37,650 Edison International 1,110,675
29,530 GPU Inc 1,136,905
-----------
3,703,480
-----------
TOTAL CREDIT SENSITIVE
(Cost $14,247,674) 20,287,882
-----------
ENERGY 5.55%
- ------------------------------------------------------------------
Energy Producers 5.55%
- ------------------------------------------------------------------
18,500 Mobil Corp 1,443,000
23,300 Texaco Inc 1,345,575
38,900 Tosco Corp 1,235,075
-----------
4,023,650
-----------
TOTAL ENERGY
(Cost $2,687,716) 4,023,650
-----------
HEALTHCARE 12.29%
- ------------------------------------------------------------------
Drugs & Healthcare Products 7.92%
- ------------------------------------------------------------------
27,500 Becton Dickinson & Co 1,945,625
15,280 Bristol-Myers Squibb Co 1,642,600
25,700 Schering-Plough Corp 2,150,769
-----------
5,738,994
-----------
<CAPTION>
Shares or
Principal Market
Amount Value
- ----------- -----------
<S> <C> <C>
Healthcare Services 4.37%
- ------------------------------------------------------------------
24,600 McKesson Corp $ 1,921,875
17,100 Shared Medical Systems Corp 1,244,025
-----------
3,165,900
-----------
TOTAL HEALTHCARE
(Cost $4,450,894) 8,904,894
-----------
TECHNOLOGY 8.65%
- ------------------------------------------------------------------
Computer Hardware 2.68%
- ------------------------------------------------------------------
79,200 Unisys Corp** 1,940,400
-----------
Computer Services & Software 2.03%
- ------------------------------------------------------------------
28,053 Computer Associates International Inc 1,472,783
-----------
Electronics 1.95%
- ------------------------------------------------------------------
29,380 Harris Corp 1,415,748
-----------
Telecommunications 1.99%
- ------------------------------------------------------------------
20,060 Sprint Corp 1,439,305
-----------
TOTAL TECHNOLOGY
(Cost $3,231,036) 6,268,236
-----------
TOTAL COMMON STOCKS
(Cost $46,961,406) 70,141,738
-----------
MUTUAL FUNDS 2.65%
- ------------------------------------------------------------------
1,918,951 Dreyfus Cash Management Fund 1,918,951
-----------
TOTAL MUTUAL FUNDS
(Cost $1,918,951) 1,918,951
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $48,880,357) 99.43% 72,060,689
Other Assets in Excess of Liabilities 0.57% 416,113
--------------------
NET ASSETS 100.00% $72,476,802
--------------------
--------------------
</TABLE>
See Notes to Statements of Investments.
21
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE SMALL-CAP OPPORTUNITY FUND
May 29, 1998
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- --------- -----------
<C> <S> <C>
COMMON STOCKS 97.31%
- ----------------------------------------------------------------
BASIC MATERIALS 12.96%
- ----------------------------------------------------------------
Chemicals 1.45%
- ----------------------------------------------------------------
36,800 Wellman Inc $ 885,500
-----------
Metals 1.77%
- ----------------------------------------------------------------
45,700 Citation Corp** 874,013
11,300 Hawk Corp - Class A** 206,225
-----------
1,080,238
-----------
Multi-Industry 2.13%
- ----------------------------------------------------------------
21,940 Texas Industries Inc 1,302,687
-----------
Paper & Packaging .97%
- ----------------------------------------------------------------
16,700 Chesapeake Corp 592,850
-----------
Transportation 6.64%
- ----------------------------------------------------------------
25,000 Airborne Freight Corp 931,250
10,200 Alaska Air Group Inc** 472,387
25,800 America West Holdings Corp - Class B** 730,463
41,800 Consolidated Freightways Corp** 616,550
33,750 Rollins Truck Leasing Corp 405,000
26,600 Varlen Corp 901,073
-----------
4,056,723
-----------
TOTAL BASIC MATERIALS
(Cost $6,621,532) 7,917,998
-----------
CAPITAL GOODS 10.64%
- ----------------------------------------------------------------
Aerospace & Defense 6.48%
- ----------------------------------------------------------------
28,620 Cordant Technologies Inc 1,427,423
25,300 Ducommon Inc** 812,762
40,500 ESCO Electronics Corp** 726,468
37,400 Kaman Corp - Class A 687,224
6,500 Primex Technologies Inc 300,625
-----------
3,954,502
-----------
<CAPTION>
Shares or
Principal Market
Amount Value
- --------- -----------
<C> <S> <C>
Electrical Equipment 1.65%
- ----------------------------------------------------------------
37,700 Bel Fuse Inc** $ 1,008,475
-----------
Other Capital Goods 2.51%
- ----------------------------------------------------------------
25,120 AGCO Corp 631,140
30,600 ITI Technologies Inc** 902,700
-----------
1,533,840
-----------
TOTAL CAPITAL GOODS
(Cost $5,065,128) 6,496,817
-----------
CONSUMER CYCLICALS 23.06%
- ----------------------------------------------------------------
Automotive 1.63%
- ----------------------------------------------------------------
17,400 Arvin Industries Inc 644,888
68,600 Audiovox Corp - Class A** 351,575
-----------
996,463
-----------
Building Related 1.99%
- ----------------------------------------------------------------
17,200 M.D.C. Holdings Inc 260,150
8,200 M/I Schottenstein Homes Inc 165,024
66,500 Morrison Knudsen Corp** 789,687
-----------
1,214,861
-----------
Consumer Products 2.49%
- ----------------------------------------------------------------
16,200 Coastcast Corp** 301,725
14,300 Crown Crafts Inc 202,881
41,700 EKCO Group Inc** 328,388
14,400 French Fragrances Inc** 247,500
17,100 Ladd Furniture Inc** 442,463
-----------
1,522,957
-----------
Consumer Soft Goods 2.21%
- ----------------------------------------------------------------
17,500 Maxwell Shoe Company Inc - Class A** 343,438
28,800 Oxford Industries Inc 1,004,400
-----------
1,347,838
-----------
<CAPTION>
Shares or
Principal Market
Amount Value
- --------- -----------
<C> <S> <C>
Hotels-Restaurants-Leisure 3.27%
- ----------------------------------------------------------------
27,800 Monaco Coach Corp** $ 750,600
42,960 Prime Hospitality Corp** 770,595
21,900 Rio Hotel & Casino Inc** 476,325
-----------
1,997,520
-----------
Retail 11.47%
- ----------------------------------------------------------------
25,800 BJ's Wholesale Club Inc** 1,019,100
6,800 Blair Corp 202,300
78,600 Cato Corp - Class A 1,188,825
25,300 Footstar Inc** 1,117,944
37,975 Fred's Inc 892,413
12,900 REX Stores Corp** 173,344
35,630 ShopKo Stores Inc** 1,242,596
37,800 Zale Corp** 1,169,437
-----------
7,005,959
-----------
TOTAL CONSUMER CYCLICALS
(Cost $10,889,938) 14,085,598
-----------
CONSUMER STAPLES 7.94%
- ----------------------------------------------------------------
Food, Beverages & Tobacco 7.15%
- ----------------------------------------------------------------
18,000 Ben & Jerry's Homemade Inc - Class A** 353,250
78,600 Chock Full O' Nuts Corp** 594,413
13,500 Dean Foods Co 664,875
14,800 Earthgrains Co 781,625
7,600 J.M. Smucker Co - Class A 180,975
20,600 Michael Foods Inc 574,225
38,700 Ralcorp Holdings Inc** 824,794
6,700 Suiza Foods Corp** 391,531
-----------
4,365,688
-----------
Household Products .79%
- ----------------------------------------------------------------
40,000 American Safety Razor Co** 477,500
-----------
TOTAL CONSUMER STAPLES
(Cost $4,350,506) 4,843,188
-----------
</TABLE>
22
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE SMALL-CAP OPPORTUNITY FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- --------- -----------
<S> <C> <C>
CREDIT SENSITIVE 25.20%
- ----------------------------------------------------------------
Banks 1.04%
- ----------------------------------------------------------------
23,200 Riggs National Corp Washington D.C. $ 635,100
-----------
Financial Services 7.91%
- ----------------------------------------------------------------
12,300 Advest Group Inc 322,106
13,600 Astoria Financial Corp 748,426
19,400 Downey Financial Corp 642,625
10,400 EVEREN Capital Corp 537,550
13,300 LandAmerica Financial Group Inc 635,075
24,146 MAF Bancorp Inc 911,511
11,800 Reliance Bancorp Inc 450,613
19,600 Rent-Way Inc** 580,650
-----------
4,828,556
-----------
Insurance 6.95%
- ----------------------------------------------------------------
11,900 Capital Re Corp 886,550
10,600 Delphi Financial Group Inc - Class A** 575,713
17,000 Enhance Financial Services Group Inc 1,107,125
15,800 FBL Financial Group Inc - Class A 443,387
3,900 Farm Family Holdings Inc** 159,656
14,950 Fremont General Corp 854,953
8,000 Guarantee Life Companies Inc 217,000
-----------
4,244,384
-----------
REITs 5.65%
- ----------------------------------------------------------------
14,200 Annaly Mortgage Management Inc 153,537
6,900 CCA Prison Realty Trust 216,056
32,400 EastGroup Properties Inc 650,025
19,400 Health Care REIT Inc 500,763
28,500 Innskeepers USA Trust 397,219
20,700 Manufactured Home Communities Inc 516,206
<CAPTION>
Shares or
Principal Market
Amount Value
- --------- -----------
<S> <C> <C>
16,500 Parkway Properties Inc $ 510,469
35,200 Sunstone Hotel Investors Inc 506,000
-----------
3,450,275
-----------
Utilities - Electric 3.65%
- ----------------------------------------------------------------
14,140 Central Hudson Gas & Electric 617,741
17,900 Cleco Corp 535,881
17,488 Interstate Energy Corp 525,733
17,900 Rochester Gas and Electric Corp 550,426
-----------
2,229,781
-----------
TOTAL CREDIT SENSITIVE
(Cost $13,263,584) 15,388,096
-----------
ENERGY 2.91%
- ----------------------------------------------------------------
Energy Equipment & Services 1.01%
- ----------------------------------------------------------------
30,200 Offshore Logistics Inc** 615,325
-----------
Energy Producers 1.90%
- ----------------------------------------------------------------
38,800 HS Resources Inc** 560,175
31,200 Tesoro Petroleum Corp** 602,550
-----------
1,162,725
-----------
TOTAL ENERGY
(Cost $1,589,822) 1,778,050
-----------
HEALTHCARE 5.49%
- ----------------------------------------------------------------
Drugs & Healthcare Products .73%
- ----------------------------------------------------------------
27,000 Roberts Pharmaceutical Corp** 445,500
-----------
Healthcare Services 4.76%
- ----------------------------------------------------------------
33,100 Beverly Enterprises Inc** 473,744
29,770 Bindley Western Industries Inc 1,056,835
15,200 ChroniMed Inc** 188,100
16,541 Integrated Health Services Inc 615,118
12,800 Mariner Health Group Inc** 190,400
<CAPTION>
Shares or
Principal Market
Amount Value
- --------- -----------
<S> <C> <C>
34,900 NovaCare Inc** $ 383,900
-----------
2,908,097
-----------
TOTAL HEALTHCARE
(Cost $2,912,741) 3,353,597
-----------
SERVICES 4.06%
- ----------------------------------------------------------------
Business Services 4.06%
- ----------------------------------------------------------------
21,200 Budget Group Inc - Class A** 625,400
10,700 Casella Waste Systems Inc - Class A** 284,888
23,600 Innovative Valve Technology Inc** 318,600
15,600 Integrated Electrical Services Inc** 315,900
51,300 Mac-Gray Corp** 737,438
11,900 URS Corp** 197,837
-----------
2,480,063
-----------
TOTAL SERVICES
(Cost $2,518,569) 2,480,063
-----------
TECHNOLOGY 5.05%
- ----------------------------------------------------------------
Computer Hardware .82%
- ----------------------------------------------------------------
13,100 Tektronix Inc 501,075
-----------
Computer Services & Software 4.23%
- ----------------------------------------------------------------
21,100 Adept Technology Inc** 197,814
14,800 Software Spectrum Inc** 267,325
29,400 Sterling Software Inc** 799,312
23,600 Symantec Corp** 563,450
31,400 Wang Laboratories Inc** 753,600
-----------
2,581,501
-----------
TOTAL TECHNOLOGY
(Cost $3,220,773) 3,082,576
-----------
TOTAL COMMON STOCKS
(Cost $50,432,593) 59,425,983
-----------
</TABLE>
23
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE SMALL-CAP OPPORTUNITY FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- --------- -----------
<S> <C> <C>
MUTUAL FUNDS 1.98%
- ----------------------------------------------------------------
1,206,279 Dreyfus Cash Management Fund $ 1,206,279
TOTAL MUTUAL FUNDS
(Cost $1,206,279) 1,206,279
-----------
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED 3.17%
- ----------------------------------------------------------------
MUTUAL FUNDS 3.17%
- ----------------------------------------------------------------
1,420,001 AIM Liquid Assets Fund 1,420,001
518,636 AIM Prime Portfolio Fund 518,636
278 Provident Temp Fund 278
15 Provident TempCash Fund 15
-----------
1,938,930
-----------
TOTAL MUTUAL FUNDS
(Cost $1,938,930) 1,938,930
-----------
TOTAL INVESTMENT OF CASH COLLATERAL FOR SECURITIES
LOANED
(Cost $1,938,930)
1,938,930
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $53,577,802) 102.46% $62,571,192
Liabilities in Excess of Other Assets (2.46%) (1,501,849)
--------------------
NET ASSETS 100.00% $61,069,343
--------------------
--------------------
</TABLE>
See Notes to Statements of Investments.
WESTCORE GROWTH AND INCOME FUND
May 29, 1998
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ------------
<C> <S> <C>
COMMON STOCKS 88.86%
- -------------------------------------------------------------------
BASIC MATERIALS 3.00%
- -------------------------------------------------------------------
Chemicals .57%
- -------------------------------------------------------------------
2,600 Crompton & Knowles Corp $ 70,038
900 W.R. Grace & Co 16,706
------------
86,744
------------
Metals .47%
- -------------------------------------------------------------------
4,500 National Steel Corp - Class B 70,875
------------
Paper & Packaging .50%
- -------------------------------------------------------------------
1,500 Bowater Inc 75,937
------------
Transportation 1.46%
- -------------------------------------------------------------------
800 Burlington Northern Santa Fe Corp 79,600
4,500 US Freightways Corp 141,750
------------
221,350
------------
TOTAL BASIC MATERIALS
(Cost $473,822) 454,906
------------
CAPITAL GOODS 2.25%
- -------------------------------------------------------------------
Aerospace & Defense 1.15%
- -------------------------------------------------------------------
1,500 Boeing Co 71,438
2,000 B F Goodrich Co 102,500
------------
173,938
------------
Electrical Equipment 1.10%
- -------------------------------------------------------------------
2,000 General Electric Co 166,750
------------
TOTAL CAPITAL GOODS
(Cost $168,950) 340,688
------------
CONSUMER CYCLICALS 15.79%
- -------------------------------------------------------------------
Building Related .53%
- -------------------------------------------------------------------
1,600 Leggett & Platt Inc 80,400
------------
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ------------
<C> <S> <C>
Consumer Products .47%
- -------------------------------------------------------------------
1,900 Mattel Inc $ 71,963
------------
Hotels - Restaurants - Leisure 2.93%
- -------------------------------------------------------------------
5,400 Hilton Hotels Corp 169,763
15,266 Prime Hospitality Corp** 273,833
------------
443,596
------------
Media - Publishing - Cable 2.64%
- -------------------------------------------------------------------
5,000 CBS Corp** 158,750
3,600 Tribune Co 240,750
------------
399,500
------------
Retail 9.22%
- -------------------------------------------------------------------
6,588 Dollar General Corp 251,168
12,500 Family Dollar Stores Inc 207,031
3,500 Home Depot Inc 274,969
3,800 Lowe's Companies Inc 300,913
3,200 Pier 1 Imports Inc 77,000
5,200 Wal-Mart Stores Inc 286,974
------------
1,398,055
------------
TOTAL CONSUMER CYCLICALS
(Cost $1,348,554) 2,393,514
------------
CONSUMER STAPLES 5.29%
- -------------------------------------------------------------------
Food, Beverages & Tobacco 2.79%
- -------------------------------------------------------------------
3,600 Bestfoods 203,175
5,400 PepsiCo Inc 220,388
------------
423,563
------------
Household Products 2.05%
- -------------------------------------------------------------------
1,000 Clorox Co 83,500
1,400 Colgate-Palmolive Co 121,800
900 Gillette Co 105,412
------------
310,712
------------
</TABLE>
24
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE GROWTH AND INCOME FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ------------
<S> <C> <C>
Retail Food & Drug .45%
- -------------------------------------------------------------------
1,900 Rite Aid Corp $ 68,044
------------
TOTAL CONSUMER STAPLES
(Cost $477,085) 802,319
------------
CREDIT SENSITIVE 37.83%
- -------------------------------------------------------------------
Banks 4.28%
- -------------------------------------------------------------------
1,760 Banc One Corp 97,020
3,100 Cullen/Frost Bankers Inc 167,981
6,000 Norwest Corp 233,250
1,300 Star Banc Corp 79,300
4,000 Yardville National Bancorp 71,000
------------
648,551
------------
Financial Services 8.24%
- -------------------------------------------------------------------
7,678 Charter One Financial Inc 262,972
1,900 Green Tree Financial Corp 76,356
2,400 Household International Inc 324,750
1,100 Kansas City Southern Industries Inc 46,613
5,775 MBNA Corp 182,995
3,200 MGIC Investment Corp 191,800
1,200 The PMI Group Inc 90,225
3,200 Waddell & Reed Financial Inc - Class A 74,000
------------
1,249,711
------------
Insurance 8.92%
- -------------------------------------------------------------------
1,900 Ambac Financial Group Inc 103,906
3,400 Executive Risk Inc 213,988
15,480 Frontier Insurance Group Inc 379,260
7,000 Hartford Life Inc - Class A 360,500
8,400 Mutual Risk Management Ltd 294,525
------------
1,352,179
------------
REITs 2.60%
- -------------------------------------------------------------------
5,600 CCA Prison Realty Trust 175,350
3,000 Healthcare Realty Trust Inc 84,938
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ------------
<S> <C> <C>
9,300 Sunstone Hotel Investments Inc $ 133,687
------------
393,975
------------
Utilities - Electric 5.75%
- -------------------------------------------------------------------
11,992 AES Corp** 570,370
3,535 Duke Energy Corp 203,704
7,000 Trigen Energy Corp 97,125
------------
871,199
------------
Utilities - Gas 4.68%
- -------------------------------------------------------------------
3,600 Enron Corp 180,450
4,500 K N Energy Inc 243,563
4,600 MCN Energy Group Inc 165,600
3,700 The Williams Companies Inc 120,018
------------
709,631
------------
Utilities - Telephone 3.36%
- -------------------------------------------------------------------
4,200 Cincinnati Bell Inc 133,613
8,263 WorldCom Inc** 375,947
------------
509,560
------------
TOTAL CREDIT SENSITIVE
(Cost $3,483,700) 5,734,806
------------
ENERGY 5.94%
- -------------------------------------------------------------------
Energy Equipment & Services 2.93%
- -------------------------------------------------------------------
4,250 Camco International Inc 296,437
3,000 Transocean Offshore Inc 147,938
------------
444,375
------------
Energy Producers 3.01%
- -------------------------------------------------------------------
1,300 Anadarko Petroleum Corp 85,800
3,400 Apache Corp 116,238
10,800 Pioneer Natural Resources Co 253,800
------------
455,838
------------
TOTAL ENERGY
(Cost $692,730) 900,213
------------
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ------------
<S> <C> <C>
HEALTHCARE 7.89%
- -------------------------------------------------------------------
Drugs & Healthcare Products 7.28%
- -------------------------------------------------------------------
3,400 American Home Products Corp $ 164,263
1,600 Guidant Corp 103,100
3,300 Mylan Labs Inc 99,000
1,400 Pfizer Inc 146,738
5,000 Schering-Plough Corp 418,437
2,700 Warner-Lambert Co 172,294
------------
1,103,832
------------
Healthcare Services .61%
- -------------------------------------------------------------------
1,600 HBO & Company 92,350
------------
TOTAL HEALTHCARE
(Cost $609,126) 1,196,182
------------
SERVICES 6.89%
- -------------------------------------------------------------------
Business Services 2.89%
- -------------------------------------------------------------------
8,400 Omnicom Group Inc 393,225
11,400 Philip Services Corp** 44,175
------------
437,400
------------
Consumer Services 4.00%
- -------------------------------------------------------------------
9,129 Cendant Corp** 197,984
14,900 Loewen Group Inc 409,750
------------
607,734
------------
TOTAL SERVICES
(Cost $735,020) 1,045,134
------------
TECHNOLOGY 3.98%
- -------------------------------------------------------------------
Computer Services & Software 1.77%
- -------------------------------------------------------------------
2,600 Analysts International Corp 76,050
1,500 Computer Sciences Corp** 77,906
3,447 First Data Corp 114,612
------------
268,568
------------
Electronics 1.64%
- -------------------------------------------------------------------
1,000 Intel Corp 71,438
</TABLE>
25
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE GROWTH AND INCOME FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ------------
<S> <C> <C>
1,800 Micron Technology Inc** $ 42,413
1,200 Motorola Inc 63,525
1,400 Texas Instruments Inc 71,924
------------
249,300
------------
Telecommunications .57%
- -------------------------------------------------------------------
1,200 Sprint Corp 86,100
------------
TOTAL TECHNOLOGY
(Cost $609,332) 603,968
------------
TOTAL COMMON STOCKS
(Cost $8,598,319) 13,471,730
------------
CONVERTIBLE DEBENTURES 4.46%
- -------------------------------------------------------------------
CAPITAL GOODS .71%
- -------------------------------------------------------------------
Office Products .71%
- -------------------------------------------------------------------
$ 100,000 US Office Products Co, 5.50%, 02/01/01 108,250
------------
TOTAL CAPITAL GOODS
(Cost $112,289) 108,250
------------
CREDIT SENSITIVE .67%
- -------------------------------------------------------------------
Utilities - Telephone .67%
- -------------------------------------------------------------------
100,000 Premiere Technologies Inc, 5.75%,
07/01/04 (1) 101,375
------------
TOTAL CREDIT SENSITIVE
(Cost $100,000) 101,375
------------
ENERGY .70%
- -------------------------------------------------------------------
Energy Equipment & Services .70%
- -------------------------------------------------------------------
75,000 Nabors Industries Inc, 5.00%, 05/15/06 106,688
------------
TOTAL ENERGY
(Cost $91,654) 106,688
------------
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ------------
<S> <C> <C>
HEALTHCARE 1.16%
- -------------------------------------------------------------------
Drugs & Healthcare Products 1.16%
- -------------------------------------------------------------------
$ 125,000 ALZA Corp, 5.00%, 05/01/06 $ 175,781
------------
TOTAL HEALTHCARE
(Cost $159,000) 175,781
------------
SERVICES 1.22%
- -------------------------------------------------------------------
Business Services 1.22%
- -------------------------------------------------------------------
150,000 USA Waste Services Inc, 4.00%, 02/01/02 184,687
------------
TOTAL SERVICES
(Cost $150,992) 184,687
------------
TOTAL CONVERTIBLE DEBENTURES
(Cost $613,935) 676,781
------------
CONVERTIBLE PREFERRED STOCKS 2.48%
- -------------------------------------------------------------------
CONSUMER CYCLICALS 1.17%
- -------------------------------------------------------------------
Media - Publishing - Cable 1.17%
- -------------------------------------------------------------------
2,300 TCI Communications Inc, 6.50%, 11/15/00 177,675
------------
TOTAL CONSUMER CYCLICALS
(Cost $158,125) 177,675
------------
SERVICES 1.31%
- -------------------------------------------------------------------
Business Services 1.31%
- -------------------------------------------------------------------
5,400 Snyder Communications, Inc - STRYPES,
6.50%, 11/15/00 198,450
------------
TOTAL SERVICES
(Cost $155,111) 198,450
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $313,236)
376,125
------------
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ------------
<S> <C> <C>
MUTUAL FUNDS 3.31%
- -------------------------------------------------------------------
$ 502,320 Dreyfus Cash Management Fund $ 502,320
------------
TOTAL MUTUAL FUNDS
(Cost $502,320) 502,320
------------
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED 1.20%
- -------------------------------------------------------------------
MUTUAL FUNDS 1.20%
- -------------------------------------------------------------------
181,522 AIM Liquid Assets Fund 181,522
229 AIM Prime Portfolio 229
------------
181,751
------------
TOTAL MUTUAL FUNDS
(Cost $181,751) 181,751
------------
TOTAL INVESTMENTS OF CASH COLLATERAL FOR SECURITIES
LOANED
(Cost $181,751)
181,751
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $10,209,561) 100.31% $15,208,707
Liabilities in Excess of Other Assets (0.31%) (48,614)
--------------------
NET ASSETS 100.00% $15,160,093
--------------------
--------------------
</TABLE>
See Notes to Statements of Investments.
26
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE INTERMEDIATE-TERM BOND FUND
May 29, 1998
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- -----------
<C> <S> <C>
CORPORATE BONDS 53.31%
- -----------------------------------------------------------------
FINANCIAL 18.46%
- -----------------------------------------------------------------
Investment Banking/Brokerage 0.88%
- -----------------------------------------------------------------
$ 430,000 Merril Lynch & Co, Inc, 6.55%, 08/01/04 $ 439,349
-----------
Life Insurance 2.38%
- -----------------------------------------------------------------
1,150,000 Aetna Services, Inc, 7.125%, 08/15/06 1,191,960
-----------
Personal Credit Institutions 1.46%
- -----------------------------------------------------------------
725,000 General Motors Acceptance Corp, 6.60%,
01/17/01 734,399
-----------
REITs 13.74%
- -----------------------------------------------------------------
550,000 Camden Property Trust, 6.625%, 05/15/01 551,742
400,000 Centerpoint Property Trust, 6.75%,
04/01/05 399,302
600,000 Corporate Property Investors, 7.75%,
08/15/04 (1) 643,367
500,000 Developers Diversified Realty Trust,
6.95%, 7/23/04 506,880
375,000 Evans Withycombe Residential Trust,
7.50%, 04/15/04 392,143
1,000,000 Kimco Realty Corp, 6.83%, 11/14/05 1,034,828
425,000 Nationwide Health Property Trust, 6.93%,
12/18/01 448,214
1,000,000 New Plan Realty Trust, 7.75%, 04/06/05 1,081,365
750,000 Washington Real Estate Investment Trust,
7.125%, 08/13/03 771,156
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- -----------
<C> <S> <C>
$1,000,000 Weingarten Realty Investors Trust,
7.22%, 06/01/05 $ 1,064,512
-----------
6,893,509
-----------
TOTAL FINANCIAL
(Cost $8,880,018) 9,259,217
-----------
INDUSTRIAL 24.73%
- -----------------------------------------------------------------
Aerospace & Defense 3.99%
- -----------------------------------------------------------------
790,000 Raytheon Co, 6.50%, 07/15/05 808,751
1,150,000 Rockwell International Corp, 6.625%,
06/01/05 1,193,212
-----------
2,001,963
-----------
Chemicals 1.52%
- -----------------------------------------------------------------
750,000 ISP Chemicals Inc, 9.00%, 03/01/99 762,615
-----------
Food, Beverages & Tobacco 1.04%
- -----------------------------------------------------------------
500,000 RJR Nabisco Inc, 8.625%, 12/01/02 521,967
-----------
Hotels-Restaurants-Leisure 1.55%
- -----------------------------------------------------------------
350,000 Circus Circus Enterprises Inc, 6.45%,
02/01/06 331,743
425,000 Hilton Hotels Corp, 7.95%, 04/15/07 446,831
-----------
778,574
-----------
Metals 2.09%
- -----------------------------------------------------------------
1,000,000 CSR America Inc, 6.875%, 07/21/05 1,046,539
-----------
Multimedia-Publishing 12.46%
- -----------------------------------------------------------------
1,100,000 Cox Communications Inc, 6.375%, 06/15/00 1,107,922
750,000 New York Times Co, 7.625%, 03/15/05 813,648
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- -----------
<C> <S> <C>
$ 775,000 TCI Communications Inc, 8.00%, 08/01/05 $ 840,856
1,000,000 TKR Cable Inc, 10.50%, 10/30/07 1,099,693
1,000,000 Time Warner Entertainment Co, 9.625%,
05/01/02 1,118,747
1,250,000 Walt Disney Co, 6.375%, 03/30/01 1,267,758
-----------
6,248,624
-----------
Retail 2.08%
- -----------------------------------------------------------------
1,000,000 Kmart Corp, 8.125%, 12/01/06 1,045,010
-----------
TOTAL INDUSTRIAL
(Cost $11,767,720) 12,405,292
-----------
TRANSPORTATION 7.10%
- -----------------------------------------------------------------
Air Transportation 7.10%
- -----------------------------------------------------------------
811,046 American Airlines Sr 1991, 9.71%,
01/02/07 885,905
475,243 Continental Airlines Pass-Through
Certificates, 7.75%, 07/02/14 512,644
1,009,065 Jet Equipment Trust Series 95-B, 7.83%,
02/15/15 (1) 1,093,928
925,083 United Airlines Pass-Through
Certificates 95-A1, 9.02%, 04/19/12 1,067,921
-----------
3,560,398
-----------
TOTAL TRANSPORTATION
(Cost $3,231,871) 3,560,398
-----------
UTILITIES 3.02%
- -----------------------------------------------------------------
Electric & Other Services Combined 2.11%
- -----------------------------------------------------------------
1,000,000 Long Island Lighting Co, 7.125%,
06/01/05 1,056,412
-----------
</TABLE>
27
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE INTERMEDIATE-TERM BOND FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- -----------
<S> <C> <C>
Natural Gas 0.91%
- -----------------------------------------------------------------
$ 460,000 KN Energy Inc, 6.45%, 03/01/03 $ 461,669
-----------
TOTAL UTILITIES
(Cost $1,439,745) 1,518,081
-----------
TOTAL CORPORATE BONDS
(Cost $25,319,354) 26,742,988
-----------
ASSET-BACKED SECURITIES, COLLATERALIZED MORTGAGE
OBLIGATIONS & MORTGAGE-BACKED SECURITIES 13.84%
- -----------------------------------------------------------------
Asset-Backed Securities 2.80%
- -----------------------------------------------------------------
500,000 American Express Master Trust, 5.90%,
05/15/03 500,000
250,000 California Infrastructure and Economic
Development Bank, 6.25%, 6/25/04 253,294
650,000 Premier Auto Trust, 5.77%, 01/06/02 649,431
-----------
1,402,725
-----------
Collateralized Mortgage Obligations 0.75%
- -----------------------------------------------------------------
353,279 Collateralized Mortgage Security Corp,
8.75%, 4/20/19 374,790
-----------
Mortgage-Backed Securities 10.29%
- -----------------------------------------------------------------
1,700,789 FHLMC GP #000336, 6.00%, 10/01/24 1,662,998
1,052,206 FNMA Pool #303845, 7.00%, 05/01/11 1,074,418
1,312,850 FNMA Pool #362443, 6.50%, 12/01/08 1,322,657
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- -----------
<S> <C> <C>
$1,008,370 GNMA Pool #780019, 9.50%, 11/15/09 $ 1,104,366
-----------
5,164,439
-----------
TOTAL ASSET-BACKED SECURITIES, COLLATERALIZED
MORTGAGE OBLIGATIONS & MORTGAGE-BACKED SECURITIES
(Cost $6,733,677)
6,941,954
-----------
U.S. GOVERNMENT TREASURIES 30.18%
- -----------------------------------------------------------------
U.S. Treasury Notes:
1,000,000 6.75%, 06/30/99 1,012,501
2,000,000 6.875%, 08/31/99 2,031,252
1,500,000 7.75%, 11/30/99 1,546,407
1,000,000 5.875%, 02/15/00 1,005,001
2,500,000 6.875%, 03/31/00 2,557,815
500,000 6.75%, 04/30/00 510,782
2,250,000 6.25%, 04/30/01 2,290,784
2,000,000 7.875%, 08/15/01 2,133,126
2,000,000 6.50%, 08/31/01 2,053,752
-----------
15,141,420
-----------
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $15,090,936)
15,141,420
-----------
MUTUAL FUNDS 1.30%
- -----------------------------------------------------------------
650,204 Dreyfus Cash Management Fund 650,204
-----------
TOTAL MUTUAL FUNDS
(Cost $650,204) 650,204
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $47,794,171) 98.63% 49,476,566
Other Assets in Excess of Liabilities 1.37% 682,652
--------------------
NET ASSETS 100.00% $50,159,218
--------------------
--------------------
</TABLE>
See Notes to Statements of Investments.
WESTCORE LONG-TERM BOND FUND
May 29, 1998
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ----------
<C> <S> <C>
CORPORATE BONDS 48.80%
- ----------------------------------------------------------------
FINANCIAL 19.58%
- ----------------------------------------------------------------
Financial Services 1.41%
- ----------------------------------------------------------------
$ 250,000 Leucadia National Corp, 7.75%, 08/15/13 $ 259,650
----------
Fire Marine & Casualty Insurance 3.19%
- ----------------------------------------------------------------
250,000 Geico Corp, 9.15%, 09/15/21 283,719
300,000 Zurich Reinsurance Center Holdings,
7.125%, 10/15/23 305,462
----------
589,181
----------
Life Insurance 4.46%
- ----------------------------------------------------------------
230,000 Aetna Services, Inc, 7.625%, 08/15/26 244,735
500,000 Lincoln National Insurance Co, 9.125%,
10/01/24 578,945
----------
823,680
----------
REITs 10.52%
- ----------------------------------------------------------------
100,000 Centerpoint Property Trust, 6.75%,
04/01/05 99,826
250,000 ERP Operating Ltd Partnership, 7.57%,
08/15/26 273,306
300,000 Kimco Realty Corp, 6.83%, 11/14/05 310,448
150,000 Nationwide Health Property, 6.93%,
12/18/01 158,193
250,000 New Plan Realty Trust 7.75%, 04/06/05 270,341
375,000 Property Trust of America, 6.875%,
02/15/08 378,786
250,000 Rouse Co, 8.50%, 01/15/03 266,908
</TABLE>
28
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE LONG-TERM BOND FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ----------
<S> <C> <C>
$ 175,000 Weingarten Realty Investors Trust,
7.22%, 06/01/05 $ 186,290
----------
1,944,098
----------
TOTAL FINANCIAL
(Cost $3,341,473) 3,616,609
----------
INDUSTRIAL 19.31%
- ----------------------------------------------------------------
Aerospace & Defense 2.93%
- ----------------------------------------------------------------
250,000 Lockheed Martin Corp, 7.70%, 06/15/05 274,628
260,000 Raytheon Co, 6.50%, 07/15/05 266,171
----------
540,799
----------
Chemicals 2.37%
- ----------------------------------------------------------------
400,000 Lubrizol Corp, 7.25%, 06/15/25 436,758
----------
Dairy Products 2.64%
- ----------------------------------------------------------------
500,000 Borden Inc, 7.875%, 02/15/23 488,170
----------
Hotels - Restaurants - Leisure 1.62%
- ----------------------------------------------------------------
150,000 Circus Circus Enterprises Inc, 6.45%,
02/01/06 142,175
150,000 Hilton Hotels Corp, 7.95%, 04/15/07 157,705
----------
299,880
----------
Multimedia-Publishing 7.00%
- ----------------------------------------------------------------
300,000 Cox Communications Inc, 7.625%, 06/15/25 331,114
500,000 TCI Communications Inc, 8.00%, 08/01/05 542,488
275,000 Time Warner Inc, 7.25%, 10/15/17 285,952
125,000 US West Capital Funding, 6.95%, 01/15/37 132,410
----------
1,291,964
----------
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ----------
<S> <C> <C>
Retail 2.75%
- ----------------------------------------------------------------
$ 500,000 Kmart Corp, 7.95%, 02/01/23 $ 508,379
----------
TOTAL INDUSTRIAL
(Cost $3,230,791) 3,565,950
----------
TRANSPORTATION 5.92%
- ----------------------------------------------------------------
Air Transportation - Scheduled 5.92%
- ----------------------------------------------------------------
350,000 AMR Corp, 10.00%, 04/15/21 472,450
327,012 Jet Equipment Trust, 7.83%, 02/15/15 (1) 354,513
231,271 United Airlines Pass-Through
Certificates, 9.02%, 04/19/12 266,980
----------
1,093,943
----------
TOTAL TRANSPORTATION
(Cost $907,068) 1,093,943
----------
UTILITIES 3.99%
- ----------------------------------------------------------------
Electric & Other Services Combined 3.15%
- ----------------------------------------------------------------
550,000 Long Island Lighting Co, 7.125%,
06/01/05 581,027
----------
Natural Gas 0.84%
- ----------------------------------------------------------------
150,000 KN Energy Inc, 7.25%, 03/01/28 153,894
----------
TOTAL UTILITIES
(Cost $689,409) 734,921
----------
TOTAL CORPORATE BONDS
(Cost $8,168,741) 9,011,423
----------
ASSET-BACKED SECURITIES, COLLATERALIZED MORTGAGE
OBLIGATIONS & MORTGAGE-BACKED SECURITIES 4.01%
- ----------------------------------------------------------------
Mortgage-Backed Securities 4.01%
- ----------------------------------------------------------------
409,829 FHLMC Pool #000336, 6.00%, 10/01/24 400,722
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ----------
<S> <C> <C>
$ 332,276 FNMA Pool #303845, 7.00%, 05/01/11 $ 339,290
----------
740,012
----------
TOTAL ASSET-BACKED SECURITIES, COLLATERALIZED
MORTGAGE OBLIGATIONS & MORTGAGE-BACKED SECURITIES
(Cost $707,996)
740,012
----------
U.S. GOVERNMENT TREASURIES 43.03%
- ----------------------------------------------------------------
U.S. Treasury Notes/Bonds 29.11%
- ----------------------------------------------------------------
400,000 U.S. Treasury Note, 7.00%, 07/15/06 434,125
----------
U.S. Treasury Bonds:
350,000 7.50%, 11/15/16 413,000
500,000 8.875%, 02/15/19 676,407
1,000,000 7.875%, 02/15/21 1,243,438
1,100,000 8.125%, 08/15/21 1,404,219
1,150,000 6.25%, 08/15/23 1,203,189
----------
4,940,253
----------
U.S. Government Zero Coupon Strips 13.92%
- ----------------------------------------------------------------
4,000,000 08/15/11 1,858,224
2,350,000 08/15/18 713,025
----------
2,571,249
----------
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $6,874,407)
7,945,627
----------
</TABLE>
29
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE LONG-TERM BOND FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
- ---------- ----------
<C> <S> <C>
MUTUAL FUNDS 2.05%
- ----------------------------------------------------------------
379,477 Dreyfus Cash Management Fund $ 379,477
TOTAL MUTUAL FUNDS
(Cost $379,477) 379,477
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $16,130,618) 97.89% $18,076,539
Other Assets in Excess of Liabilities 2.11% 389,725
--------------------
NET ASSETS 100.00% $18,466,264
--------------------
--------------------
</TABLE>
See Notes to Statements of Investments.
30
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE COLORADO TAX-EXEMPT FUND
May 29, 1998
<TABLE>
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<C> <S> <C> <C>
CERTIFICATES OF PARTICIPATION 4.49%
- ---------------------------------------------------------------------------------
$ 100,000 Colorado State Board of Agriculture,
Certificate of Participation CSU
Research Foundation Master Lease
Purchase Agreement, 6.45%, 11/01/01,
Optional any time @ 100.00, MBIA Aaa/AAA $ 103,277
500,000 Fremont County, Certificate of
Participation, Lease Purchase Agreement,
5.125%, 12/15/11, Optional any time @
100.00, MBIA Aaa/AAA 510,860
250,000 State of Colorado, Certificate of
Participation Master Lease Purchase
Agreement II, 5.10% 11/01/06, Optional
any time @ 100.00, MBIA Aaa/AAA 261,838
510,000 Weld County, Certificate of
Participation Correctional Facilities,
Lease Purchase Agreement, 5.35%,
08/01/10, Optional any time @ 100.00,
MBIA Aaa/AAA 539,065
------------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $1,353,830) 1,415,040
------------
GENERAL OBLIGATION BONDS 58.60%
- ---------------------------------------------------------------------------------
County/City/Special District/School District 58.60%
- ---------------------------------------------------------------------------------
100,000 Adams County School District 12,
7.25%, 12/15/09, Prerefunded 12/15/99 @
100.00 NR/A+ 104,994
500,000 Adams County School District 14,
5.30%, 12/01/09, Optional 12/01/07 @
101.00, FSA Aaa/AAA 531,470
100,000 Adams & Arapahoe Counties Joint School
District 28J, 5.75%, 12/01/06, MBIA Aaa/AAA 109,716
100,000 Adams & Arapahoe Counties School
District 29J, 5.40%, 12/01/09, Optional
12/01/06 @ 100.00, MBIA Aaa/AAA 106,520
250,000 Adams & Weld Counties School District
27J,
5.55% 12/01/09, Optional 12/01/06 @
100.00, FGIC Aaa/AAA 267,725
125,000 Alamosa & Conejos Counties School
District Re-11J, 4.90%, 12/01/07,
Optional 12/01/05 @ 100.00, MBIA Aaa/AAA 129,200
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<C> <S> <C> <C>
$ 100,000 Arapahoe County School District 1,
4.85%, 11/01/04, FSA Aaa/AAA $ 103,452
100,000 Arapahoe County School District 2,
6.75%, 12/01/04, Prerefunded 12/01/99 @
101.00 A/NR 105,312
25,000 Arapahoe County School District 2,
6.75%, 12/01/04, Escrowed to Maturity A/NR 28,581
Arapahoe County School District 5:
250,000 5.25%, 12/15/04, Optional 12/15/03 @
100.00 Aa2/AA 263,237
250,000 5.50%, 12/15/06 Aa2/AA 270,885
250,000 Arapahoe County School District 6,
5.50%, 12/01/06 Aa2/AA 270,812
250,000 Archuleta & Hinsdale Counties Joint
School District No. 50 JT, 5.50%,
12/01/14, Optional 12/01/06 @ 101.00,
MBIA Aaa/AAA 261,987
100,000 Basalt & Rural Fire Protection District,
Eagle & Pitkin Counties, 5.20%,
12/01/15, Optional 12/01/06 @ 100.00,
AMBAC Aaa/AAA 101,482
150,000 Boulder, Boulder County Library,
7.30%, 10/01/08, Prerefunded 10/01/98 @
100.00 Aaa/AAA 151,815
500,000 Boulder, Boulder County Parks,
5.125%, 12/15/09, Optional 12/15/06 @
100.00 Aa1/AA 520,875
Boulder & Gilpin Counties, Boulder
Valley School District Re-2:
250,000 5.55%, 12/01/03 Aa3/AA 267,067
1,000,000 5.00%, 12/01/11, Optional 12/01/07 @
100.00, FGIC Aaa/AAA 1,020,490
Boulder, Larimer & Weld Counties, St.
Vrain Valley School District Re-1J:
100,000 5.50%, 12/15/04, Optional 12/15/02 @
101.00, MBIA Aaa/AAA 106,068
175,000 5.80%, 12/15/07, Optional 12/15/02 @
101.00, MBIA Aaa/AAA 186,275
100,000 6.00%, 12/15/10, Optional 12/15/02 @
101.00, MBIA Aaa/AAA 107,640
205,000 Brighton, Adams County, Water,
6.625%, 12/01/11, Prerefunded 12/01/01 @
101.00, MBIA Aaa/AAA 224,222
</TABLE>
31
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE COLORADO TAX-EXEMPT FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<S> <C> <C>
$ 250,000 Broomfield, Boulder, Jefferson, Adams &
Weld Counties, Water, 4.55%, 08/01/10,
Optional 08/01/08 @ 100.00, FSA Aaa/AAA $ 247,498
100,000 Carbondale & Rural Fire Protection
District, Garfield, Gunnison & Pitkin
Counties, 5.20%, 12/01/10, Optional
12/01/04 @ 101.00, AMBAC Aaa/AAA 104,382
150,000 Chaffee County School District R-31,
5.10%, 12/01/09, Optional 12/01/06 @
100.00, FSA Aaa/AAA 155,979
425,000 Chaffee & Fremont Counties School
District R-32J, 5.00%, 12/01/12,
Optional 12/01/07 @ 100.00, FSA Aaa/AAA 428,519
250,000 Clear Creek County School District Re-1,
5.40%, 12/01/11, Optional 12/01/05 @
100.00, MBIA Aaa/AAA 262,120
Colorado Springs, El Paso County:
125,000 6.60%, 09/01/00, Prerefunded 09/01/99
@ 100.00 NR/AAA 129,336
250,000 5.00%, 09/01/06, Optional 09/01/03 @
100.00 Aa3/AA- 257,545
Douglas & Elbert Counties School
District Re-1:
250,000 5.75%, 12/15/05, Optional 12/15/01 @
101.00, FGIC Aaa/AAA 265,300
250,000 6.15%, 12/15/08, Optional 12/15/04 @
101.00, MBIA Aaa/AAA 277,270
Eagle, Garfield & Routt Counties School
District Re 50J:
85,000 5.60%, 12/01/01, FGIC Aaa/AAA 89,350
200,000 5.75%, 12/01/03, Optional 12/01/02 @
100.00, FGIC Aaa/AAA 212,858
100,000 El Paso County School District 2,
5.70%, 12/01/14, Optional 12/01/05 @
100.00 Aa3/NR 104,846
125,000 El Paso County School District 3,
6.20%, 12/15/00, Optional 6/15/98 @
101.00, MBIA Aaa/AAA 127,769
500,000 El Paso County School District 11,
5.50%, 12/01/14, Optional 12/01/07 @
103.00 Aa3/AA 532,045
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<S> <C> <C>
$ 80,000 El Paso County School District 12,
5.90%, 9/15/04 Aa1/NR $ 87,448
125,000 El Paso County School District 49,
6.75%, 12/01/04, Optional 12/01/00 @
100.00, MBIA Aaa/AAA 133,096
200,000 Fort Collins, Larimer County,
5.55%, 12/01/03, Optional 12/01/02 @
101.00 Aa/AA 212,890
250,000 Fruita, Mesa County, 4.75%, 10/01/06,
Optional 10/01/04 @ 100.00, MBIA Aaa/AAA 255,475
250,000 Garfield County School District Re-2,
4.50%, 12/01/11, Optional 12/01/07 @
100.00, FSA Aaa/AAA 243,093
250,000 Garfield, Pitkin & Eagle Counties,
Roaring Fork School District Re-1,
6.60%, 12/15/14, Prerefunded 06/15/04 @
101.00, MBIA Aaa/AAA 283,963
625,000 Goldsmith Metropolitan District,
Arapahoe & Denver Counties, 6.50%,
12/01/03, Optional 12/01/99 @ 101.00,
MBIA Aaa/AAA 654,056
500,000 Grand County, East Grand School District
2,
5.00%, 12/01/17, Optional 12/01/08 @
100.00, AMBAC Aaa/AAA 495,085
Jefferson County School District R-1:
100,000 5.10%, 12/15/99, AMBAC Aaa/AAA 101,908
100,000 5.75%, 12/15/03, Prerefunded 12/15/02
@ 101.00, AMBAC Aaa/AAA 107,694
500,000 5.90%, 12/15/04, Prerefunded 12/15/02
@ 101.00, AMBAC Aaa/AAA 541,550
335,000 Lafayette, Boulder County,
4.75%, 12/15/10 Optional 12/15/08, @
100.00, FGIC Aaa/AAA 337,760
250,000 La Plata County School District 9-R,
5.25%, 11/01/05, MBIA Aaa/AAA 264,620
125,000 Larimer County, Poudre School District
R-1,
7.00%, 12/15/08, Prerefunded 12/15/01 @
101.00 NR/NR 137,881
500,000 Larimer, Weld & Boulder Counties,
Thompson School District R2-J, 5.40%,
12/15/13, Optional 06/15/07 @ 101.00,
FGIC Aaa/AAA 520,335
</TABLE>
32
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE COLORADO TAX-EXEMPT FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<S> <C> <C>
$ 100,000 Longmont, Boulder County,
5.15%, 09/01/99, MBIA Aaa/AAA $ 101,609
Mesa County Valley School District 51:
250,000 4.80%, 12/01/05, MBIA Aaa/AAA 257,622
500,000 5.40%, 12/01/12, Optional 12/01/06 @
101.00, MBIA Aaa/AAA 521,750
150,000 Montezuma County School District Re-4A,
5.10%, 12/01/10, Optional 12/01/07 @
101.00, MBIA Aaa/AAA 155,812
105,000 Morgan County School District Re-3,
6.45%, 12/01/98, Escrowed to Maturity A/NR 106,429
250,000 Northglenn, Adams County, Water,
5.50%, 12/01/06, Optional 12/01/04 @
101.00, FSA Aaa/AAA 267,735
100,000 Otero County, East Otero School District
R-1,
5.05%, 12/15/09, Optional 12/15/05 @
100.00, FSA Aaa/AAA 103,574
100,000 Pitkin County School District Re-1,
5.50%, 11/15/00, AMBAC Aaa/AAA 103,599
125,000 Poudre Valley Hospital District, Larimer
County, 6.80%, 11/15/02, Prerefunded
11/15/98 @ 101.00 NR/AAA 127,994
Pueblo, Pueblo County Limited Tax:
200,000 5.80%, 06/01/11, Optional 06/01/06 @
100.00, MBIA Aaa/AAA 215,144
250,000 6.00%, 06/01/16, Optional 06/01/06 @
100.00, MBIA Aaa/AAA 266,327
225,000 Pueblo County School District 70,
5.00%, 12/01/11, Optional 12/01/07 @
100.00, AMBAC Aaa/AAA 229,090
150,000 Rio Grande County School District C-8,
5.35%, 11/15/11, Optional 11/15/05 @
100.00, FSA Aaa/AAA 155,787
Routt County School District Re-2:
75,000 5.00%, 12/01/05, Optional 12/01/03 @
100.00, FGIC Aaa/AAA 77,327
250,000 5.05%, 12/01/13, Optional 12/01/07 @
100.00, MBIA Aaa/AAA 252,633
100,000 San Miguel & Montrose Counties, School
District R-2J, 5.00%, 12/01/12, Optional
12/01/07 @ 100.00, MBIA Aaa/AAA 101,055
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<S> <C> <C>
$ 250,000 San Miguel County School District R-1,
5.50%, 12/01/12, Optional 12/01/05 @
101.00, MBIA Aaa/AAA $ 261,925
250,000 South Suburban Park and Recreation
District, Arapahoe, Douglas & Jefferson
Counties, 5.00%, 12/15/12, Optional
12/15/08, @ 100.00 FGIC Aaa/AAA 253,060
Thornton, Adams County, Water:
25,000 7.40%, 12/01/98, FGIC Aaa/AAA 25,461
125,000 5.75%, 12/01/04, Optional 12/01/02 @
101.00, FGIC Aaa/AAA 133,809
250,000 6.00%, 12/01/05, Optional 12/01/02 @
101.00, FGIC Aaa/AAA 270,050
135,000 Three Lakes Water & Sanitation District,
Grand County Limited Tax, 6.00%,
06/01/00 Optional 06/01/98 @ 101.00,
MBIA Aaa/AAA 137,777
150,000 Weld County School District Re-4,
5.30%, 12/01/10, Optional 12/01/05 @
100.00, MBIA Aaa/AAA 156,893
Weld County School District 6:
250,000 5.50%, 12/01/06 Aa/AA 270,258
250,000 5.20%, 12/01/10, Optional 12/01/07 @
101.00 Aa/AA 262,592
100,000 Willows Water District, Arapahoe County,
6.40%, 12/01/98, Optional 06/01/98 @
100.00, MBIA Aaa/AAA 100,220
100,000 Woodland Park, Teller County,
6.30%, 07/01/08, Optional 07/01/00 @
101.00, FGIC Aaa/AAA 105,399
125,000 Woodmoor Water & Sanitation District 1,
El Paso County, 6.20%, 12/01/00,
Optional 06/01/98 @ 100.00, MBIA Aaa/AAA 125,015
250,000 Wray Community Hospital District, Yuma
County, 5.00%, 10/15/11, Optional
10/15/04 @ 100.00, AMBAC Aaa/AAA 253,683
250,000 Yuma Hospital District, Yuma County,
4.95%, 11/01/14, Optional 11/01/07 @
100.00, MBIA Aaa/AAA 248,990
------------
TOTAL GENERAL OBLIGATION BONDS
(Cost $17,793,073) 18,460,115
------------
</TABLE>
33
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE COLORADO TAX-EXEMPT FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<S> <C> <C>
REVENUE BONDS 29.45%
- ---------------------------------------------------------------------------------
Education 1.49%
- ---------------------------------------------------------------------------------
$ 100,000 State of Colorado Department of Higher
Education by State Board for Community
Colleges & Occupational Education,
5.20%, 11/01/03, Optional 11/01/02 @
100.00, AMBAC Aaa/AAA $ 104,076
100,000 University of Colorado Board of Regents
Auxiliary Facilities, 6.50%, 06/01/01,
Prerefunded 06/01/00 @ 101.00 A1/NR 105,775
250,000 University of Northern Colorado Board of
Trustees, Auxiliary Facilities System,
5.00%, 06/01/03, MBIA Aaa/AAA 259,173
------------
469,024
------------
Public Facilities .69%
- ---------------------------------------------------------------------------------
200,000 Denver Metropolitan Major League
Baseball Stadium District Sales Tax,
6.25%, 10/01/02, Prerefunded 10/01/01 @
101.00, FGIC Aaa/AAA 215,674
------------
Special Tax 11.09%
- ---------------------------------------------------------------------------------
100,000 Aspen, Pitkin County,
8.50%, 10/01/99 Escrowed to Maturity,
MBIA Aaa/AAA 106,071
500,000 Boulder County Open Space Sales & Use
Tax,
5.75%, 12/15/04, FGIC Aaa/AAA 543,340
250,000 Boulder Urban Renewal Authority Tax
Increment, 6.00%, 03/01/02, Optional
03/01/00 @ 101.00, MBIA Aaa/AAA 260,568
250,000 Breckenridge, Summit County Excise Tax,
5.20%, 12/01/01, Optional 12/01/00 @
101.00, MBIA Aaa/AAA 259,348
200,000 Castle Rock, Douglas County Sales & Use
Tax, 5.25%, 06/01/06, FSA Aaa/AAA 212,058
100,000 Commerce City, Adams County Sales & Use
Tax, 5.375%, 08/01/07, Optional 08/01/03
@ 101.00, MBIA Aaa/AAA 105,401
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<S> <C> <C>
$ 250,000 Douglas County Sales & Use Tax,
5.25%, 10/15/07, Optional 10/15/06 @
100.00, MBIA Aaa/AAA $ 264,385
500,000 Fort Collins, Larimer County Sales & Use
Tax, 4.90%, 06/01/01, FGIC Aaa/AAA 512,055
325,000 Greeley, Weld County Sales & Use Tax,
4.80%, 10/01/15, Optional 10/01/08 @
100.00, MBIA Aaa/AAA 317,282
150,000 Ignacio, La Plata County Sales Tax,
4.75%, 12/01/09, AMBAC Aaa/AAA 152,396
150,000 Lafayette, Boulder County Sales & Use
Tax,
6.40%, 11/15/04, Prerefunded 11/15/01 @
100.00, AMBAC Aaa/AAA 161,676
250,000 Lakewood, Jefferson County Sales & Use
Tax,
4.70%, 12/01/12, Optional 12/01/09 @
100.00 NR/AA 243,233
100,000 Las Animas County Sales & Use Tax,
4.75%, 12/01/06, Asset Guaranty NR/AA 100,906
250,000 Thornton, Adams County Sales & Use Tax,
4.75%, 03/01/07, AMBAC Aaa/AAA 255,920
------------
3,494,639
------------
Transportation 1.14%
- ---------------------------------------------------------------------------------
250,000 Colorado Springs, El Paso County Airport
System, 5.10%, 01/01/10, Optional
01/01/06 @ 101.00, MBIA Aaa/AAA 257,880
100,000 Regional Transportation District RTD
Sales Tax, 7.00%, 11/01/98, FGIC Aaa/AAA 101,373
------------
359,253
------------
Utility 15.04%
- ---------------------------------------------------------------------------------
150,000 Berthoud, Larimer & Weld Counties, Water
Enterprise, 5.00%, 10/15/09, Optional
10/15/07 @ 100.00, FSA Aaa/AAA 155,099
Boulder, Boulder County Water & Sewer:
75,000 5.75%, 12/01/06, Optional 12/01/02 @
100.00 Aa/AA 79,191
500,000 5.50%, 12/01/11, Optional 12/01/06 @
100.00 Aa/AA 530,655
</TABLE>
34
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
INVESTMENTS REPORT MAY 29, 1998
WESTCORE COLORADO TAX-EXEMPT FUND
May 29, 1998 (continued)
<TABLE>
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<S> <C> <C>
$ 250,000 Central Weld County Water District,
5.25%, 12/01/05, Optional 12/01/03 @
100.00, MBIA Aaa/AAA $ 261,533
Colorado Springs, El Paso County
Utilities Systems:
100,000 6.40%, 11/15/02, Optional 11/15/01 @
102.00 Aa/AA 109,019
250,000 5.75%, 11/15/10, Optional 11/15/06 @
100 Aa/AA 270,503
200,000 Colorado Water Resources and Power
Development Authority, Clean Water 1998
Series B Project Loan Subaccount for
Colorado Springs, 5.00%, 09/01/08 Aaa/AAA 209,470
250,000 Fort Collins, Larimer County Wastewater
Utility Enterprise Sewer, 5.375%,
12/01/09, Optional 12/01/05 @ 100.00,
FGIC Aaa/AAA 262,990
100,000 Lafayette, Boulder County Sewer,
4.95%, 09/01/05, FGIC Aaa/AAA 104,008
500,000 Little Thompson Water District, Larimer
Weld & Boulder Counties, 5.50%,
12/01/11, Optional 12/01/05 @ 101.00,
MBIA Aaa/AAA 528,905
Municipal Subdistrict, Northern Colorado
Water Conservancy District:
500,000 5.85%, 12/01/02, AMBAC Aaa/AAA 535,240
250,000 5.25%, 12/01/15, Optional 12/01/07 @
100.00, AMBAC Aaa/AAA 255,417
500,000 Mesa County, Sewer,
5.85%, 11/01/05, Optional 11/01/02 @
100.00, FGIC Aaa/AAA 530,890
Platte River Power Authority:
100,000 5.75%, 06/01/04 Optional 06/01/02 @
102.00 Aa/A+ 107,200
400,000 5.75%, 06/01/04, MBIA Aaa/AAA 431,948
250,000 Ute Water Conservancy District, Mesa
County, 4.80%, 6/15/02, MBIA Aaa/AAA 255,895
<CAPTION>
Shares or
Principal Bond Rating*
Amount Moody's/S&P Market Value
- ---------- ------------- ------------
<S> <C> <C>
$ 100,000 Westminster, Adams County Water &
Wastewater Utility Enterprise, 6.25%,
12/01/14, Optional 12/01/04 @ 100.00,
AMBAC $ 109,952
------------
4,737,915
------------
TOTAL REVENUE BONDS
(Cost $8,974,109) 9,276,505
------------
MUTUAL FUNDS 4.64%
- ---------------------------------------------------------------------------------
1,460,672 Dreyfus Municipal Money Market Fund 1,460,672
------------
TOTAL MUTUAL FUNDS
(Cost $1,460,672) 1,460,672
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $29,581,684) 97.18% $ 30,612,332
Other Assets in Excess of Liabilities 2.82% 889,132
------------------------
NET ASSETS 100.00% $ 31,501,464
------------------------
------------------------
</TABLE>
See Notes to Statements of Investments.
Notes to Statements of Investments
* Unaudited.
** Non-income producing security.
(1)Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
35
<PAGE>
STATEMENTS OF ASSETS WESTCORE FUNDS ANNUAL
AND LIABILITIES REPORT MAY 29, 1998
<TABLE>
<CAPTION>
Westcore Westcore Westcore Westcore Westcore Westcore
Westcore Blue Small-Cap Growth Intermediate- Long- Term Colorado
MIDCO Growth Chip Opportunity and Income Term Bond Bond Tax-Exempt
Fund Fund Fund Fund Fund Fund Fund
------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost - see below) $674,806,315 $72,060,689 $62,571,192 $15,208,707 $49,476,566 $18,076,539 $30,612,332
- see accompanying
statements
Receivable for
investments sold 6,741,213 0 246,117 162,113 0 0 0
Dividends and interest
receivable 272,584 129,185 50,754 18,276 811,803 280,130 610,367
Receivable for fund
shares subscribed 2,121,279 520,960 363,201 2,212 12,536 183,641 305,250
Organizational costs,
net of accumulated
amortization 0 0 9,658 0 0 0 0
Prepaid and other
assets 218,785 17,889 22,569 9,794 24,163 8,857 5,848
- ----------------------------------------------------------------------------------------------------------------------------------
Total Assets 684,160,176 72,728,723 63,263,491 15,401,102 50,325,068 18,549,167 31,533,797
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Collateral received
from broker 101,149,024 0 1,938,400 181,500 0 0 0
Payable for investments
purchased 3,930,166 0 100,016 20,255 0 0 0
Payable for fund shares
redeemed 8,639,726 149,424 53,662 1,108 80,750 47,596 0
Payable for investment
advisory fee 308,442 31,782 36,040 21 15,498 4,573 0
Payable for
administration fee 141,602 16,750 14,227 3,073 11,705 4,103 2,309
Payable for trustees
fees 185,589 12,002 6,129 4,849 16,233 5,139 3,844
Other payables 4,512,387 41,963 45,674 30,203 41,664 21,492 26,180
- ----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 118,866,936 251,921 2,194,148 241,009 165,850 82,903 32,333
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $565,293,240 $72,476,802 $61,069,343 $15,160,093 $50,159,218 $18,466,264 $31,501,464
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $363,573,796 $43,032,694 $46,913,162 $ 8,057,901 $50,170,564 $16,473,265 $30,498,261
Undistributed/(distribution
in excess of) net
investment income (1,030,830) (18,625) (29,471) (199,233) 41,285 16,210 18,254
Accumulated net
realized gain/(loss)
from investments 58,914,939 6,282,401 5,192,262 2,302,279 (1,735,026) 30,868 (45,699)
Net unrealized
appreciation/(depreciation)
of investments 143,835,335 23,180,332 8,993,390 4,999,146 1,682,395 1,945,921 1,030,648
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $565,293,240 $72,476,802 $61,069,343 $15,160,093 $50,159,218 $18,466,264 $31,501,464
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Net Assets $565,293,240 $72,476,802 $61,069,343 $15,160,093 $50,159,218 18,466,264 $31,501,464
Shares outstanding
(unlimited shares
authorized) 27,519,020 3,853,573 2,285,975 1,103,060 4,770,256 1,782,382 2,846,959
Net asset value,
offering and
redemption price per
share $20.54 $18.81 $26.71 $13.74 $10.51 $10.36 $11.06
- ----------------------------------------------------------------------------------------------------------------------------------
COST OF INVESTMENTS $530,970,980 $48,880,357 $53,577,802 $10,209,561 $47,794,171 $16,130,618 $29,581,684
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
STATEMENTS OF WESTCORE FUNDS ANNUAL
OPERATIONS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
Westcore Westcore Westcore Westcore Westcore Westcore
Westcore Blue Small-Cap Growth Intermediate- Long-Term Colorado
MIDCO Growth Chip Opportunity and Income Term Bond Bond Tax-Exempt
Fund Fund Fund Fund Fund Fund Fund
------------- ------------ ------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 1,104,939 $ 1,034,148 $ 485,448 $ 195,902 $ 0 $ 0 $ 0
Interest 1,220,129 111,976 136,578 62,750 3,527,100 1,209,611 1,311,995
Other Income 319,664 7,208 10,333 1,710 4,318 1,467 1,805
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income 2,644,732 1,153,332 632,359 260,362 3,531,418 1,211,078 1,313,800
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 4,107,999 427,072 473,769 109,352 239,428 79,810 129,855
Administrative fees 1,896,000 197,110 142,136 50,470 159,619 53,206 77,913
Transfer agent fees 339,840 55,960 34,130 45,800 19,980 11,875 11,440
Fund accounting fees and
expenses 183,580 29,380 35,280 34,345 29,440 30,705 41,390
Legal fees 272,450 29,036 18,991 7,300 20,736 7,726 15,461
Printing expenses 110,600 13,000 15,031 4,675 5,660 1,848 8,180
Registration fees 12,995 20,065 17,108 12,280 12,280 15,350 0
Audit fees 19,160 11,480 9,100 9,552 14,151 8,869 10,832
Custodian fees 72,147 9,562 17,080 9,780 5,295 5,075 4,536
Amortization of organization
costs 0 0 17,665 0 0 0 0
Insurance 44,023 4,648 1,642 1,560 5,071 1,707 957
Trustee fees and expenses 109,637 10,533 7,135 2,689 10,167 2,853 4,013
Other 0 0 302 0 0 0 467
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 7,168,431 807,846 789,369 287,803 521,827 219,024 305,044
Expenses waived by:
Investment advisor 0 (48,681) (162,526) (87,613) (60,690) (45,959) (129,855)
Administrators 0 (3,857) (9,175) (6,969) (6,227) (4,725) (44,733)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 7,168,431 755,308 617,668 193,221 454,910 168,340 130,456
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (4,523,699) 398,024 14,691 67,141 3,076,508 1,042,738 1,183,344
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
investment transactions 120,992,876 13,222,160 8,453,552 4,495,635 48,444 274,029 (14,054)
Unrealized appreciation on
investments
Beginning of period 171,123,027 19,775,761 6,366,962 6,214,031 189,705 549,662 412,655
End of period 143,835,335 23,180,332 8,993,390 4,999,146 1,682,395 1,945,921 1,030,648
Change in net unrealized
appreciation or depreciation
of investments (27,287,692) 3,404,571 2,626,428 (1,214,885) 1,492,690 1,396,259 617,993
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN/ (LOSS) ON INVESTMENTS 93,705,184 16,626,731 11,079,980 3,280,750 1,541,134 1,670,288 603,939
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 89,181,485 $17,024,755 $11,094,671 $ 3,347,891 $4,617,642 $2,713,026 $1,787,283
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
37
<PAGE>
STATEMENTS OF CHANGES WESTCORE FUNDS ANNUAL
IN NET ASSETS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE MIDCO GROWTH FUND
-------------------------------
For the Year Ended
-------------------------------
May 29, 1998 May 30, 1997
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ (4,523,699) $ (4,158,191)
Net realized gain/(loss) from investment transactions 120,992,876 86,766,854
Change in unrealized net appreciation or depreciation of investments (27,287,692) (53,117,323)
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 89,181,485 29,491,340
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income 0 0
From net realized gain from investment transactions (84,245,727) (80,255,692)
- ------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (84,245,727) (80,255,692)
- ------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Shares sold 541,305,083 198,972,553
Shares issued in reinvestment of dividends and distributions 81,419,112 76,722,845
- ------------------------------------------------------------------------------------------------------------
622,724,195 275,695,398
Shares redeemed (652,374,393) (291,413,092)
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from capital share transactions (29,650,198) (15,717,694)
- ------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (24,714,440) (66,482,046)
NET ASSETS:
Beginning of period 590,007,680 656,489,726
- ------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
($1,030,830) and ($7,288,835), respectively) $565,293,240 $590,007,680
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE BLUE CHIP FUND
-------------------------------
For the Year Ended
-------------------------------
May 29, 1998 May 30, 1997
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 398,024 $ 635,594
Net realized gain/(loss) from investment transactions 13,222,160 9,990,055
Change in unrealized net appreciation or depreciation of investments 3,404,571 2,879,650
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 17,024,755 13,505,299
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (452,695) (783,962)
From net realized gain from investment transactions (12,258,397) (9,187,213)
- ------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (12,711,092) (9,971,175)
- ------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Shares sold 25,842,217 20,944,535
Shares issued in reinvestment of dividends and distributions 11,179,268 8,612,339
- ------------------------------------------------------------------------------------------------------------
37,021,485 29,556,874
Shares redeemed (35,308,645) (34,926,271)
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from capital share transactions 1,712,840 (5,369,397)
- ------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 6,026,503 (1,835,273)
NET ASSETS:
Beginning of period 66,450,299 68,285,572
- ------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
($18,625) and $36,046, respectively) $ 72,476,802 $ 66,450,299
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
38
<PAGE>
STATEMENTS OF CHANGES WESTCORE FUNDS ANNUAL
IN NET ASSETS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE SMALL-CAP OPPORTUNITY
FUND
-------------------------------
For the Year Ended
-------------------------------
May 29, 1998 May 30, 1997
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 14,691 $ 33,682
Net realized gain/(loss) from investment transactions 8,453,552 4,083,766
Change in unrealized net appreciation or depreciation of investments 2,626,428 1,219,518
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 11,094,671 5,336,966
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (52,827) (25,495)
From net realized gain from investment transactions (6,466,938) (1,366,828)
- ------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (6,519,765) (1,392,323)
- ------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Shares sold 27,101,036 14,705,255
Shares issued in reinvestment of dividends and distributions 5,658,612 1,029,681
- ------------------------------------------------------------------------------------------------------------
32,759,648 15,734,936
Shares redeemed (12,226,884) (7,668,918)
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from capital share transactions 20,532,764 8,066,018
- ------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 25,107,670 12,010,661
NET ASSETS:
Beginning of period 35,961,673 23,951,012
- ------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
($29,471) and $8,665, respectively) $ 61,069,343 $ 35,961,673
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE GROWTH AND INCOME FUND
-------------------------------
For the Year Ended
-------------------------------
May 29, 1998 May 30, 1997
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 67,141 $ 167,310
Net realized gain/(loss) from investment transactions 4,495,635 2,659,580
Change in unrealized net appreciation or depreciation of investments (1,214,885) 1,076,748
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 3,347,891 3,903,638
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (87,477) (202,251)
From net realized gain from investment transactions (2,061,541) (2,273,847)
- ------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (2,149,018) (2,476,098)
- ------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Shares sold 2,719,029 5,355,720
Shares issued in reinvestment of dividends and distributions 1,872,758 2,141,808
- ------------------------------------------------------------------------------------------------------------
4,591,787 7,497,528
Shares redeemed (11,355,464) (13,587,574)
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from capital share transactions (6,763,677) (6,090,046)
- ------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (5,564,804) (4,662,506)
NET ASSETS:
Beginning of period 20,724,897 25,387,403
- ------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
($199,233) and ($178,897), respectively.) $ 15,160,093 $ 20,724,897
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
39
<PAGE>
STATEMENTS OF CHANGES WESTCORE FUNDS ANNUAL
IN NET ASSETS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE INTERMEDIATE-TERM BOND
FUND
-------------------------------
For the Year Ended
-------------------------------
May 29, 1998 May 30, 1997
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 3,076,508 $ 4,242,270
Net realized gain/(loss) from investment transactions 48,444 18,937
Change in unrealized net appreciation or depreciation of investments 1,492,690 1,120,533
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 4,617,642 5,381,740
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (3,079,017) (4,283,756)
From net realized gain from investment transactions (495) 0
- ------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (3,079,512) (4,283,756)
- ------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Shares sold 13,139,252 17,545,780
Shares issued in reinvestment of dividends and distributions 2,564,832 3,461,645
- ------------------------------------------------------------------------------------------------------------
15,704,084 21,007,425
Shares redeemed (30,251,535) (41,975,506)
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from capital share transactions (14,547,451) (20,968,081)
- ------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (13,009,321) (19,870,097)
NET ASSETS:
Beginning of period 63,168,539 83,038,636
- ------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
$41,285 and $43,794, respectively.) $ 50,159,218 $ 63,168,539
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE LONG-TERM BOND FUND
-------------------------------
For the Year Ended
-------------------------------
May 29, 1998 May 30, 1997
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 1,042,738 $ 1,485,141
Net realized gain/(loss) from investment transactions 274,029 250,648
Change in unrealized net appreciation or depreciation of investments 1,396,259 422,206
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 2,713,026 2,157,995
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (1,045,049) (1,495,971)
From net realized gain from investment transactions (432,601) (397,663)
- ------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (1,477,650) (1,893,634)
- ------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Shares sold 3,125,855 3,753,882
Shares issued in reinvestment of dividends and distributions 1,411,449 1,747,726
- ------------------------------------------------------------------------------------------------------------
4,537,304 5,501,608
Shares redeemed (7,466,668) (10,675,976)
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from capital share transactions (2,929,364) (5,174,368)
- ------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (1,693,988) (4,910,007)
NET ASSETS:
Beginning of period 20,160,252 25,070,259
- ------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
$16,210 and $18,521, respectively.) $ 18,466,264 $ 20,160,252
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
40
<PAGE>
STATEMENTS OF CHANGES WESTCORE FUNDS ANNUAL
IN NET ASSETS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE COLORADO TAX-EXEMPT
FUND
-------------------------------
For the Year Ended
-------------------------------
May 29, 1998 May 30, 1997
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 1,183,344 $ 846,432
Net realized gain/(loss) from investment transactions (14,054) (21,758)
Change in unrealized net appreciation or depreciation of investments 617,993 256,969
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 1,787,283 1,081,643
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (1,181,159) (842,088)
From net realized gain from investment transactions
- ------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (1,181,159) (842,088)
- ------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Shares sold 13,594,537 8,514,677
Shares issued in reinvestment of dividends and distributions 888,955 613,448
- ------------------------------------------------------------------------------------------------------------
14,483,492 9,128,125
Shares redeemed (4,935,811) (1,941,761)
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from capital share transactions 9,547,681 7,186,364
- ------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 10,153,805 7,425,919
NET ASSETS:
Beginning of period 21,347,659 13,921,740
- ------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
$18,254 and $16,069, respectively.) $ 31,501,464 $ 21,347,659
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
41
<PAGE>
WESTCORE FUNDS ANNUAL
FINANCIAL HIGHLIGHTS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE MIDCO GROWTH FUND
--------------------------------------------------------------------------------------------------
Institutional Shares Retail Shares
-------------------------------------------------------------- ---------------------------------
For the For the For the For the
Selected data for a share Year Ended Year Ended Year Ended Period Ended
of beneficial interest May 29, May 30, May 31, May 31,
outstanding throughout ---------- ---------- ------------------------------------ ---------------------------------
the periods indicated: 1998 1997 1996 1995 1994 1996** 1995 1994*
---------- ---------- ---------- ---------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value -
beginning of period $20.92 $22.90 $17.12 $16.09 $15.79 $17.10 $16.10 $17.33
-----------------------------------------------------------------------------------------------------------------------------
Income from investment
operations
Net investment
income/(loss) (0.17) (0.15) (0.08) 0.00 0.00 (0.01) (0.03) (0.01)
Net realized and
unrealized gain/(loss)
on investment
transactions 3.03 1.19 6.58 1.56 1.34 3.12 1.56 (0.19)
-----------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from
investment operations 2.86 1.04 6.50 1.56 1.34 3.11 1.53 (0.20)
-----------------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income
Distributions from net
realized gain on
investments (3.24) (3.02) (0.72) (0.53) (1.03) (0.00) (0.53) (1.02)
Return of Capital (0.00) (0.00) (0.00) (0.00) (0.01) (0.00) (0.00) (0.01)
-----------------------------------------------------------------------------------------------------------------------------
Total distributions (3.24) (3.02) (0.72) (0.53) (1.04) (0.00) (0.53) (1.03)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value - end of
period $20.54 $20.92 $22.90 $17.12 $16.09 $20.21 $17.10 $16.10
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Total return 15.10% 5.27% 38.62% 10.05% 8.37% 18.19% 9.78% (1.88)%(2)
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $565,293 $590,008 $656,490 $401,760 $335,453 $30,827 $25,677 $16,309
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets 1.13% 1.14% 1.08% 0.94% 0.84% 1.16%(2) 1.19% 1.10%(2)
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
without fee waivers 1.13% 1.14% 1.10% 0.96% 0.87% 1.17%(2) 1.21% 1.13%(2)
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets (0.71)% (0.70)% (0.42)% (0.03)% (0.09)% (0.24)%(2) (0.28)% (0.37)%(2)
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets
without fee waivers (0.71)% (0.71)% (0.44)% (0.05)% (0.12)% (0.26)%(2) (0.30)% (0.40)%(2)
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(1) 75.79% 60.78% 62.83% 50.19% 52.05% 62.83% 50.19 52.05%
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Average commission rate
(3) $ .0479 $ .0466 -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding securities
with a maturity date of one year or less at the time of acquisition) for a
period and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the year ended May 29, 1998 were
$458,588,628 and $540,509,501, respectively.
(2) Annualized.
(3) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on which a
commission is charged.
* For the period October 11, 1993 (inception of offering) to May 31, 1994.
** For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
42
<PAGE>
WESTCORE FUNDS ANNUAL
FINANCIAL HIGHLIGHTS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE BLUE CHIP FUND
-----------------------------------------------------------
For the For the
Year Year For the
Selected data for a share Ended Ended Year Ended
of beneficial interest May 29, May 30, May 31,
outstanding throughout --------- --------- -----------------------------------
the periods indicated: 1998 1997 1996 1995 1994
--------- --------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value -
beginning of period $18.15 $17.41 $14.70 $12.70 $13.87
- --------------------------------------------------------------------------------------
Income from investment
operations
Net investment
income/(loss) .13 0.19 0.25 0.23 0.40
Net realized and
unrealized gain/(loss)
on investment
transactions 4.66 3.65 4.03 2.12 0.04
- --------------------------------------------------------------------------------------
Total income/(loss) from
investment operations 4.79 3.84 4.28 2.35 0.44
- --------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income (0.14) (0.22) (0.27) (0.16) (0.43)
Distributions from net
realized gain on
investments (3.99) (2.88) (1.30) (0.19) (1.18)
- --------------------------------------------------------------------------------------
Total distributions (4.13) (3.10) (1.57) (0.35) (1.61)
- --------------------------------------------------------------------------------------
Net asset value - end of
period $18.81 $18.15 $17.41 $14.70 $12.70
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Total return 29.53% 24.28% 30.48% 19.03% 3.12%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $72,477 $66,450 $68,286 $52,545 $36,674
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Ratio of expenses to
average net assets 1.15% 1.15% 1.10% 1.01% 1.06%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
without fee waivers 1.23% 1.21% 1.25% 1.06% 1.09%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets .60% 1.02% 1.52% 1.78% 2.30%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets
without fee waivers .52% 0.97% 1.38% 1.73% 2.27%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Portfolio turnover rate
(1) 48.50% 43.47% 65.11% 61.72% 41.32%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Average commission rate
(2) $ .0494 $ .0498 -- -- --
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding securities
with a maturity date of one year or less at the time of acquisition) for a
period and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the year ended May 29, 1998 were
$30,936,790 and $40,782,905, respectively.
(2) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on which
commissions are charged.
SEE NOTES TO FINANCIAL STATEMENTS
43
<PAGE>
WESTCORE FUNDS ANNUAL
FINANCIAL HIGHLIGHTS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE SMALL-CAP OPPORTUNITY FUND
------------------------------------------------------------------------------------------
Institutional Shares
------------------------------------------------------- Retail Shares
--------------------------------
For the For the
Year Year For the For the
Selected data for a share Ended Ended Period Ended Period Ended
of beneficial interest May 29, May 30, May 31, May 31,
outstanding throughout --------- --------- ------------------------------- --------------------------------
the periods indicated: 1998 1997 1996 1995 1994* 1996** 1995 1994*
--------- --------- --------- -------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value -
beginning of period $23.87 $21.35 $15.95 $14.97 $15.00 $15.95 $14.96 $15.00
- ---------------------------------------------------------------------------------------------------------------------
Income from investment
operations
Net investment
income/(loss) 0.01 0.03 0.04 0.09 0.05 0.01 0.06 0.03
Net realized and
unrealized gain/(loss)
on investment
transactions 6.83 3.37 5.86 1.11 (0.05) 2.25 1.11 (0.04)
- ---------------------------------------------------------------------------------------------------------------------
Total income/(loss) from
investment operations 6.84 3.40 5.90 1.20 0.00 2.26 1.17 (0.01)
- ---------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income (0.03) (0.02) (0.06) (0.10) (0.03) (0.02) (0.06) (0.03)
Distributions from net
realized gain on
investments (3.97) (0.86) (0.44) (0.12) 0.00 0.00 (0.12) 0.00
- ---------------------------------------------------------------------------------------------------------------------
Total distributions (4.00) (0.88) (0.50) (0.22) (0.03) (0.02) (0.18) (0.03)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value - end of
period $26.71 $23.87 $21.35 $15.95 $14.97 $18.19 $15.95 $14.96
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Total return 30.40% 16.28% 37.49% 8.15% (0.07)%(3) 14.14% 7.96% (0.22)%(2)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $61,069 $35,962 $23,951 $9,703 $2,159 $1,072 $ 934 $ 497
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets 1.30% 1.30% 1.30% 1.27% 1.38%(2) 1.48%(2) 1.51% 1.63%(2)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
without fee waivers 1.66% 1.69% 2.20% 2.77% 6.56%(2) 2.53%(2) 3.10% 6.81%(2)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets 0.03% 0.11% 0.24% 0.61% 1.00%(2) 0.16%(2) 0.37% 0.64%(2)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets
without fee waivers (0.33)% (0.28)% (0.67)% (0.89)% (4.18)%(2) (0.89)%(2) (1.22)% (4.54)%(2)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(1) 78.48% 77.73% 47.83% 59.17% 64.31%(2) 47.83% 59.17% 64.31%(2)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Average commission rate
(3) $ .0476 $ .0480 -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding securities
with a maturity date of one year or less at the time of acquisition) for a
period and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the year ended May 29, 1998 were
$50,807,020 and $35,455,805, respectively.
(2) Annualized
(3) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on which
commissions are charged.
* For the period December 28, 1993 (inception of offering) to May 31, 1994.
** For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
WESTCORE FUNDS ANNUAL
FINANCIAL HIGHLIGHTS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE GROWTH AND INCOME FUND
--------------------------------------------------------------------------------------------
Institutional Shares
--------------------------------------------------------- Retail Shares
--------------------------------
For the For the
Year Year For the For the
Selected data for a share Ended Ended Year Ended Period Ended
of beneficial interest May 29, May 30, May 31, May 31,
outstanding throughout --------- --------- --------------------------------- --------------------------------
the periods indicated: 1998 1997 1996 1995 1994 1996** 1995 1994*
--------- --------- --------- --------- --------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value -
beginning of period: $13.03 $12.32 $10.50 $10.62 $11.51 $10.51 $10.63 $11.65
- -----------------------------------------------------------------------------------------------------------------------
Income from investment
operations
Net investment
income/(loss) 0.01 0.07 0.15 0.20 0.51 0.05 0.19 0.15
Net realized and
unrealized gain/(loss)
on investment
transactions 2.54 2.19 2.57 0.15 (0.30) 0.72 0.14 (0.45)
- -----------------------------------------------------------------------------------------------------------------------
Total income/(loss) from
investment operations 2.55 2.26 2.72 0.35 0.21 0.77 0.33 (0.30)
- -----------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income (0.07) (0.11) (0.24) (0.21) (0.54) (0.06) (0.19) (0.16)
Distributions from net
realized gain on
investments (1.77) (1.44) (0.66) (0.26) (0.56) 0.00 (0.26) (0.56)
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (1.84) (1.55) (0.90) (0.47) (1.10) (0.06) (0.45) (0.72)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value - end of
period $13.74 $13.03 $12.32 $10.50 $10.62 $11.22 $10.51 $10.63
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Total return 20.74% 19.71% 27.25% 3.73% 1.71% 7.35% 3.48% (4.20)%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $15,160 $20,725 $25,387 $27,029 $42,644 $3,921 $3,871 $4,026
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets 1.15% 1.15% 1.22% 1.17% 1.03% 1.58%(2) 1.41% 1.25%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
without fee waivers 1.71% 1.56% 1.51% 1.22% 1.06% 1.61%(2) 1.47% 1.27%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets 0.40% 0.75% 1.34% 2.09% 4.45% 1.40%(2) 1.86% 2.12%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets
without fee waivers (0.16)% 0.33% 1.05% 2.04% 4.42% 1.37%(2) 1.80% 2.09%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(1) 41.40% 39.80% 88.31% 81.14% 53.86% 88.31% 81.14% 53.86%
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Average commission rate
(3) $ .0496 $ .0491 -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding securities
with a maturity date of one year or less at the time of acquisition) for a
period and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the year ended May 29, 1998 were
$6,769,573 and $11,524,952, respectively.
(2) Annualized
(3) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on which
commissions are charged.
* For the period October 11, 1993 (inception of offering) to May 31, 1994.
** For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
WESTCORE FUNDS ANNUAL
FINANCIAL HIGHLIGHTS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE INTERMEDIATE-TERM BOND FUND
--------------------------------------------------------------------------------------------
Institutional Shares
--------------------------------------------------------- Retail Shares
--------------------------------
For the For the
Year Year For the For the
Selected data for a share Ended Ended Year Ended Period Ended
of beneficial interest May 29, May 30, May 31, May 31,
outstanding throughout --------- --------- --------------------------------- --------------------------------
the periods indicated: 1998 1997 1996 1995 1994 1996** 1995 1994*
--------- --------- --------- --------- --------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value -
beginning of period $10.23 $10.10 $10.27 $10.02 $10.70 $10.27 $10.03 $10.97
- -----------------------------------------------------------------------------------------------------------------------
Income from investment
operations
Net investment
income/(loss) 0.61 0.60 0.60 0.58 0.55 0.20 0.56 0.34
Net realized and
unrealized gain/(loss)
on investment
transactions 0.28 0.13 (0.17) 0.27 (0.52) 0.04 0.26 (0.77)
- -----------------------------------------------------------------------------------------------------------------------
Total income/(loss) from
investment operations 0.89 0.73 0.43 0.85 0.03 0.24 0.82 (0.43)
- -----------------------------------------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income (0.61) (0.60) (0.60) (0.60) (0.53) (0.21) (0.58) (0.33)
Distributions from net
realized gain on
investments (0.00) 0.00 0.00 0.00 (0.18) 0.00 0.00 (0.18)
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (0.61) (0.60) (0.60) (0.60) (0.71) (0.21) (0.58) (0.51)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value - end of
period $10.51 $10.23 $10.10 $10.27 $10.02 $10.30 $10.27 $10.03
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Total return 8.88% 7.43% 4.26% 8.93% 0.10% 2.34% 8.53% (6.33)%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $50,159 $63,169 $83,039 $97,619 $88,965 $2,781 $2,571 $1,941
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets 0.85% 0.85% 0.81% 0.77% 0.68% 0.95%(2) 0.99% 0.95%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
without fee waivers 0.98% 0.97% 0.92% 0.80% 0.70% 0.97%(2) 1.02% 0.97%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets 5.77% 5.81% 5.78% 5.86% 5.03% 5.74%(2) 5.64% 4.65%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets
without fee waivers 5.65% 5.68% 5.67% 5.83% 5.00% 5.72%(2) 5.61% 4.63%(2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(1) 23.45% 27.47% 71.97% 60.86% 65.04% 71.97% 60.86% 65.04%
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding securities
with a maturity date of one year or less at the time of acquisition) for a
period and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the year ended May 29, 1998 were
$12,052,794 and $25,330,939, respectively.
(2) Annualized
* For the period October 11, 1993 (inception of offering) to May 31, 1994.
** For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
WESTCORE FUNDS ANNUAL
FINANCIAL HIGHLIGHTS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE LONG-TERM BOND FUND
---------------------------------------------------------
For the For the
Year Year For the
Selected data for a share Ended Ended Year Ended
of beneficial interest May 29, May 30, May 31,
outstanding throughout --------- --------- ---------------------------------
the periods indicated: 1998 1997 1996 1995 1994
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value -
beginning of period $9.67 $9.59 $9.87 $9.22 $11.25
- ------------------------------------------------------------------------------------
Income from investment
operations
Net investment
income/(loss) 0.60 0.62 0.61 0.59 0.62
Net realized and
unrealized gain/(loss)
on investment
transactions 0.96 0.26 (0.27) 0.66 (0.51)
- ------------------------------------------------------------------------------------
Total income/(loss) from
investment operations 1.56 0.88 0.34 1.25 0.11
- ------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income (0.60) (0.63) (0.62) (0.60) (0.62)
Distributions from net
realized gain on
investments (0.27) (0.17) 0.00 0.00 (1.52)
- ------------------------------------------------------------------------------------
Total distributions (0.87) (0.80) (0.62) (0.60) (2.14)
- ------------------------------------------------------------------------------------
Net asset value - end of
period $10.36 $9.67 $9.59 $9.87 $9.22
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Total return 16.63% 9.40% 3.41% 14.37% (0.25)%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $18,466 $20,160 $25,070 $33,440 $26,962
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratio of expenses to
average net assets 0.95% 0.95% 0.90% 0.94% 0.89%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
without fee waivers 1.23% 1.15% 1.07% 0.99% 0.92%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets 5.87% 6.37% 6.07% 6.54% 5.74%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets
without fee waivers 5.58% 6.18% 5.90% 6.49% 5.71%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Portfolio turnover rate
(1) 11.05% 27.76% 33.10% 25.09% 52.82%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding securities
with a maturity date of one year or less at the time of acquisition) for a
period and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the year ended May 29, 1998 were
$1,895,172 and $5,660,885, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
WESTCORE FUNDS ANNUAL
FINANCIAL HIGHLIGHTS REPORT MAY 29, 1998
<TABLE>
<CAPTION>
WESTCORE COLORADO TAX-EXEMPT FUND
---------------------------------------------------------
For the For the
Year Year For the
Selected data for a share Ended Ended Year Ended
of beneficial interest May 29, May 30, May 31,
outstanding throughout --------- --------- ---------------------------------
the periods indicated: 1998 1997 1996 1995 1994
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value -
beginning of period $10.78 $10.61 $10.70 $10.52 $10.71
- ------------------------------------------------------------------------------------
Income from investment
operations
Net investment
income/(loss) 0.50 0.50 0.52 0.52 0.53
Net realized and
unrealized gain/(loss)
on investment
transactions 0.28 0.17 (0.10) 0.20 (0.19)
- ------------------------------------------------------------------------------------
Total income/(loss) from
investment operations 0.78 0.67 0.42 0.72 0.34
- ------------------------------------------------------------------------------------
Distributions
Dividends from net
investment income (0.50) (0.50) (0.51) (0.54) (0.53)
Distributions from net
realized gain on
investments 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------
Total distributions (0.50) (0.50) (0.51) (0.54) (0.53)
- ------------------------------------------------------------------------------------
Net asset value - end of
period $11.06 $10.78 $10.61 $10.70 $10.52
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Total return 7.32% 6.46% 3.97% 7.16% 3.22%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $31,501 $21,348 $13,922 $10,792 $10,553
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratio of expenses to
average net assets 0.50% 0.50% 0.44% 0.42% 0.27%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratio of expenses to
average net assets
without fee waivers 1.17% 1.21% 1.43% 1.62% 1.59%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets 4.54% 4.73% 4.87% 5.03% 4.98%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Ratio of net investment
income/(loss) to
average net assets
without fee waivers 3.87% 4.02% 3.88% 3.83% 3.65%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Portfolio turnover rate
(1) 24.94% 30.78% 10.23% 3.15% 9.76%
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding securities
with a maturity date of one year or less at the time of acquisition) for a
period and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the year ended May 29, 1998 were
$14,374,828 and $6,327,967, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
NOTES TO FINANCIAL WESTCORE FUNDS ANNUAL
STATEMENTS REPORT MAY 29, 1998
1. SIGNIFICANT ACCOUNTING POLICIES
Westcore Trust ("the Trust") is registered under the Investment Company Act
of 1940, as amended, as an open-ended management investment company. Interests
in the Westcore MIDCO Growth, Westcore Blue Chip, Westcore Small-Cap
Opportunity, Westcore Growth and Income, Westcore Intermediate-Term Bond,
Westcore Long-Term Bond and Westcore Colorado Tax-Exempt Funds ("the Funds") are
represented by separate classes of beneficial interest of the Trust, which is
organized as a Massachusetts business trust. The Funds, for book and tax
purposes, have a fiscal year of May 31. From October 11, 1993 to September 30,
1995, Westcore MIDCO Growth, Westcore Small-Cap Opportunity, Westcore Growth and
Income and Westcore Intermediate-Term Bond Funds offered Institutional and
Retail classes of shares with a front-end load and their own
distribution/administrative service plan. On October 1, 1995 the Retail class
was merged into the Institutional class at the respective net asset value per
share. The distribution/administrative service plan on the Retail class was
discontinued. The front-end sales load on all the Funds was also discontinued.
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
Use of Estimates - The preparation of financial statements in accordance
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. The actual results could differ from those estimates.
Investment Valuation - Securities of the Funds are valued at 4:00 p.m.
(Eastern time) on each trading day. Listed and unlisted securities for which
such information is regularly reported are valued at the last sales price of the
day or, in the absence of sales, at values based on the average closing bid and
asked price. Securities for which market quotations are not readily available
are valued under procedures established by the Board of Trustees to determine
fair value in good faith. Short-term securities having a remaining maturity of
60 days or less are valued at amortized cost which approximates market value.
Federal Income Taxes - It is the Funds' policy to continue to comply with
the provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to shareholders.
Therefore, no federal income tax provision is required. At May 29, 1998 the
Westcore Intermediate-Term Bond and Westcore Colorado Tax-Exempt Funds had
available for federal income tax purposes unused capital loss carryovers of
$1,741,936 and $22,532, respectively, which will expire through 2006. During the
year ended May 29, 1998, $48,444 of capital loss carryovers were utilized by the
Westcore Intermediate-Term Bond.
During the year ended May 29, 1998 the Westcore MIDCO Growth Fund and
Westcore Growth and Income Fund had redemption-in-kind transactions in the
amount of $50,625,860 and $4,678,687, respectively, based on the fair value of
the individual securities within the portfolio. These transactions resulted in
gains of $16,287,524 and $1,655,090, which will be recognized as a permanent
difference for tax purposes.
Classification of Distributions to Shareholders - Net investment income
(loss) and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Funds'.
The Funds' adjust the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended May 29, 1998, amounts have been reclassified to reflect an
accumulated net investment loss which may not be offset against capital gains or
carried forward for tax purposes. In Westcore MIDCO Growth Fund net investment
losses of $10,781,704 and realized gains relating to redemption-in-kind
transactions of $19,196,536 have been reclassed to Paid-in Capital. In Westcore
Growth and Income Fund realized gains relating to redemption-in-kind
transactions of $1,655,090 have been reclassed to Paid-in Capital.
49
<PAGE>
NOTES TO FINANCIAL WESTCORE FUNDS ANNUAL
STATEMENTS REPORT MAY 29, 1998
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Distributions - Distributions of net investment income are distributed
annually for the Westcore MIDCO Growth Fund, quarterly for the Westcore Blue
Chip, Westcore Small-Cap Opportunity and Westcore Growth and Income Funds and
monthly for the Westcore Intermediate-Term Bond, Westcore Long-Term Bond and
Westcore Colorado Tax-Exempt Funds. Distributions of net realized gains, if any,
are declared at least once each year. Distributions to shareholders are recorded
on the ex-dividend date.
Organization Costs - Costs incurred in connection with the organization,
initial registration and public offering of shares have been paid by the Funds.
These costs are being amortized over the period of benefit, but not to exceed
sixty (60) months, from the Funds' commencement of operations.
Securities Lending - The Westcore Funds may loan securities to certain
brokers who pay the Funds negotiated lenders' fees. These fees, net of
associated costs, are included in other income. The Funds receive U.S. Treasury
obligations and/or cash as collateral against the loaned securities, in an
amount at least equal to 102% of the market value of the loaned securities at
the inception of each loan. This collateral must be maintained at not less than
100% of the market value of the loaned securities during the period of the loan.
As of May 29, 1998, the value of securities loaned of the Westcore MIDCO Growth,
Westcore Small-Cap Opportunity and Westcore Growth and Income Funds amount to
$97,547,494, $1,905,800 and $172,219, respectively. The value of collateral of
the Westcore MIDCO Growth, Westcore Small-Cap Opportunity and Westcore Growth
and Income Funds amount to $105,326,062, $1,938,930 and $181,751, respectively.
Allocation of Income, Expenses and Gains and Losses - Trust expenses, which
are not series specific, are allocated to each series based upon their relative
proportion of net assets and/or open accounts represented by each series. From
October 11, 1993 to September 30, 1995 the Westcore MIDCO Growth, Westcore
Small-Cap Opportunity, Westcore Growth and Income and Westcore Intermediate-Term
Bond Funds allocated income, expenses (other than the class specific expenses)
and gains and losses daily to each class of shares based upon their relative
proportion of net assets represented by each class. Operating expenses directly
attributable to a specific class were charged against the operations of that
class.
Other - Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividend income is recorded on
the ex-dividend date. Interest income, which includes amortization of premiums
and accretion of discounts, is accrued and recorded daily. Realized gains and
losses from investment transactions and unrealized appreciation and depreciation
of investments are reported on an identified cost basis which is the same basis
the Funds use for federal income tax purposes.
2. CAPITAL SHARE TRANSACTIONS
On May 29, 1998, there was an unlimited number of no par value shares of
beneficial interest authorized for each fund. Transactions in shares of
beneficial interest were as follows:
WESTCORE MIDCO GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Year For the Year
Ended May Ended May
29, 1998 30, 1997
------------ ------------
<S> <C> <C>
Shares sold 24,794,907 9,603,541
Shares issued in reinvestment of dividends and
distributions 4,328,501 3,872,935
- ---------------------------------------------------------------------------------
Total 29,123,408 13,476,476
Shares redeemed (29,804,359) (13,940,907)
- ---------------------------------------------------------------------------------
Net increase (decrease) in shares (680,951) (464,431)
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
50
<PAGE>
NOTES TO FINANCIAL WESTCORE FUNDS ANNUAL
STATEMENTS REPORT MAY 29, 1998
2. CAPITAL SHARE TRANSACTIONS (Continued)
WESTCORE BLUE CHIP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the For the
Year Year
Ended May Ended May
29, 1998 30, 1997
----------- -----------
<S> <C> <C>
Shares sold 1,372,695 1,224,040
Shares issued in reinvestment of dividends and
distributions 673,685 529,150
- -----------------------------------------------------------------------------
Total 2,046,380 1,753,190
Shares redeemed (1,853,818) (2,013,538)
- -----------------------------------------------------------------------------
Net increase (decrease) in shares 192,562 (260,348)
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
</TABLE>
WESTCORE SMALL-CAP OPPORTUNITY
FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the For the
Year Year
Ended May Ended May
29, 1998 30, 1997
---------- ---------
<S> <C> <C>
Shares sold 1,000,427 678,008
Shares issued in reinvestment of dividends and
distributions 233,455 46,681
- -----------------------------------------------------------------------------
Total 1,233,882 724,689
Shares redeemed (454,614) (339,754)
- -----------------------------------------------------------------------------
Net increase (decrease) in shares 779,268 384,935
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
</TABLE>
WESTCORE GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the For the
Year Year
Ended May Ended May
29, 1998 30, 1997
--------- -----------
<S> <C> <C>
Shares sold 191,743 427,351
Shares issued in reinvestment of dividends and
distributions 146,912 181,615
- -------------------------------------------------------------------------
Total 338,655 608,966
Shares redeemed (825,837) (1,078,894)
- -------------------------------------------------------------------------
Net increase (decrease) in shares (487,182) (469,928)
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
</TABLE>
WESTCORE INTERMEDIATE-TERM BOND
FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Year For the Year
Ended May Ended May
29, 1998 30, 1997
------------ ------------
<S> <C> <C>
Shares sold 1,255,088 1,716,627
Shares issued in reinvestment of dividends and
distributions 245,907 339,628
- -------------------------------------------------------------------------------
Total 1,500,995 2,056,255
Shares redeemed (2,903,900) (4,107,727)
- -------------------------------------------------------------------------------
Net increase (decrease) in shares (1,402,905) (2,051,472)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
51
<PAGE>
NOTES TO FINANCIAL WESTCORE FUNDS ANNUAL
STATEMENTS REPORT MAY 29, 1998
2. CAPITAL SHARE TRANSACTIONS (Continued)
WESTCORE LONG-TERM BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the For the
Year Year
Ended May Ended May
29, 1998 30, 1997
--------- -----------
<S> <C> <C>
Shares sold 303,677 385,322
Shares issued in reinvestment of dividends and
distributions 139,058 179,905
- ---------------------------------------------------------------------------
Total 442,735 565,227
Shares redeemed (745,987) (1,094,841)
- ---------------------------------------------------------------------------
Net increase (decrease) in shares (303,252) (529,614)
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
</TABLE>
WESTCORE COLORADO TAX-EXEMPT
FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the For the
Year Year
Ended May Ended May
29, 1998 30, 1997
---------- ---------
<S> <C> <C>
Shares sold 1,234,556 791,641
Shares issued in reinvestment of dividends and
distributions 80,926 57,178
- --------------------------------------------------------------------------
Total 1,315,482 848,819
Shares redeemed (449,027) (179,890)
- --------------------------------------------------------------------------
Net increase (decrease) in shares 866,455 668,929
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
</TABLE>
3. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS
<TABLE>
<CAPTION>
Westcore Westcore Westcore Westcore
MIDCO Blue Small-Cap Growth and
Growth Chip Opportunity Income
Fund Fund Fund Fund
------------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
As of May 29, 1998
Gross appreciation (excess of value over
cost) $164,824,886 $23,552,066 $11,125,554 $5,346,110
Gross depreciation (excess of cost over
value) (20,989,551) (371,734) (2,132,164) (346,964)
- ---------------------------------------------------------------------------------------------------
Net unrealized
appreciation/(depreciation) $143,835,335 $23,180,332 $ 8,993,390 $4,999,146
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Westcore Westcore Westcore
Intermediate- Long-Term Colorado
Term Bond Bond Tax-Exempt
Fund Fund Fund
----------- ----------- -----------
<S> <C> <C> <C>
As of May 29, 1998
Gross appreciation (excess of value over cost) $1,717,969 $1,964,284 $1,052,104
Gross depreciation (excess of cost over value) (35,574) (18,363) (21,456)
- -------------------------------------------------------------------------------------------
Net unrealized appreciation/(depreciation) $1,682,395 $1,945,921 $1,030,648
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
</TABLE>
52
<PAGE>
NOTES TO FINANCIAL WESTCORE FUNDS ANNUAL
STATEMENTS REPORT MAY 29, 1998
4. INVESTMENT ADVISORY FEES, ADMINISTRATIVE FEES AND OTHER RELATED PARTY
TRANSACTIONS
The Trust has entered into an advisory agreement with Denver Investment
Advisors LLC ("DIA"), for all Funds. DIA succeeded First Interstate Capital
Management, Inc. ("FICM") as investment advisor to the Westcore Long-Term Bond
and the Westcore Colorado Tax-Exempt Funds on October 1, 1995. The advisory
agreements have been approved by the Trust's Board of Trustees and shareholders
and contain terms and conditions similar to those which were in these Funds'
former advisory agreement.
Pursuant to its advisory agreement with the Trust, DIA is entitled to an
investment advisory fee, computed daily and payable monthly of 0.65%, 0.65%,
1.00%, 0.65%, 0.45%, 0.45% and 0.50% of the average net assets for Westcore
MIDCO Growth, Westcore Blue Chip, Westcore Small-Cap Opportunity, Westcore
Growth and Income, Westcore Intermediate-Term Bond, Westcore Long-Term Bond and
Westcore Colorado Tax-Exempt Funds, respectively.
Effective October 1, 1995, ALPS and DIA entered into an administration
agreement to serve as the Funds co-administrators. ALPS and DIA are entitled to
receive a fee from each Fund for its administrative services computed daily and
paid monthly, at the annual rate of 0.30% of the Funds' average net assets.
The Co-Administrators and the Investment Adviser have advised the Trust that
they currently intend to waive fees or reimburse expenses with respect to each
of the Funds so that the Total Operating Expenses of the Westcore MIDCO Growth,
Westcore Blue Chip, Westcore Small-Cap Opportunity, Westcore Growth and Income,
Westcore Intermediate-Term Bond, Westcore Long-Term Bond and Westcore Colorado
Tax-Exempt Funds will not exceed 1.15%, 1.15%, 1.30%, 1.15%, 0.85%, 0.95% and
0.50%, respectively. Without such fee waivers, for the period ended May 29,
1998, the Total Operating Expenses of the Westcore Blue Chip, Westcore Small-Cap
Opportunity, Westcore Growth and Income, Westcore Intermediate-Term Bond,
Westcore Long-Term Bond and Westcore Colorado Tax-Exempt Funds would be 1.23%,
1.66%, 1.71%, 0.98%, 1.23% and 1.17%, respectively.
Certain officers of the Funds are also officers of DIA. All affiliated and
access persons, as defined in the 1940 Act, follow strict guidelines and
policies on personal trading as outlined in the Trust's Code of Ethics.
Expenses for the Funds include legal fees paid to Drinker Biddle & Reath
LLP. A partner of that firm is secretary of the Trust.
The Trust has a Trustee Fee Deferral Plan (the "Deferral Plan") which allows
the Trustees to defer the receipt of all or a portion of Trustees Fees. The
deferred fees are invested in certain Westcore Funds until distribution in
accordance with the Deferral Plan.
Shareholders holding more than 5% of the Funds' outstanding shares as of May
29, 1998, constituted 42.04% of Westcore MIDCO Growth Fund, 70.42% of Westcore
Blue Chip Fund, 59.24% of Westcore Small-Cap Opportunity Fund, 39.34% of
Westcore Growth and Income Fund, 72.88% of Westcore Intermediate-Term Bond Fund,
60.39% of Westcore Long-Term Bond Fund and 41.78% of Westcore Colorado
Tax-Exempt Fund.
5. SHAREHOLDER TAX INFORMATION (Unaudited)
Certain tax information regarding the Westcore Trust is required to be
provided to shareholders based upon each Fund's income and distribution for the
taxable year ended May 29, 1998. The information and distributions reported
herein may differ from information and distributions taxable to the shareholders
for the calendar year ended December 31, 1997.
During the fiscal year ended May 29, 1998, 99.90% of the dividends paid by
the Westcore Colorado Tax-Exempt Fund from net investment income should be
treated as tax-exempt dividends and 100% of the dividends paid by the Westcore
Blue Chip, Westcore Small-Cap Opportunity and Westcore Growth and Income Funds
from net investment income qualify for the corporate dividends received
deduction, respectively.
53
<PAGE>
NOTES TO FINANCIAL WESTCORE FUNDS ANNUAL
STATEMENTS REPORT MAY 29, 1998
5. SHAREHOLDER TAX INFORMATION (Unaudited) (Continued)
During the fiscal year ended May 29, 1998, the Westcore Funds paid the
following distributions:
<TABLE>
<CAPTION>
Ordinary Capital Total
Income Dividends Gains Distributions Distributions
----------------- -------------------- --------------
<S> <C> <C> <C>
Westcore MIDCO Growth Fund $0.00 $3.24 $3.24
Westcore Blue Chip Fund 0.14 3.99 4.13
Westcore Small-Cap Opportunity Fund 0.03 3.97 4.00
Westcore Growth and Income Fund 0.07 1.77 1.84
</TABLE>
54
<PAGE>
[LOGO]
Independent Auditors' Report
[DELOITTE & TOUCHE LLP LOGO]
- --------------------------------------------------------------------
<TABLE>
<S> <C>
Suite 3600 Telephone: (303) 292-5400
555 Seventeenth Street Facsimile: (303) 312-4000
Denver, Colorado 80202-3942
</TABLE>
To the Board of Trustees and Shareholders,
Westcore Trust:
We have audited the accompanying statements of assets
and liabilities, including the statements of investments, of
the Westcore MIDCO Growth Fund, Westcore Blue Chip Fund,
Westcore Small-Cap Opportunity Fund, Westcore Growth and
Income Fund, Westcore Intermediate-Term Bond Fund, Westcore
Long-Term Bond Fund and Westcore Colorado Tax-Exempt Fund as
of May 29, 1998, the related statements of operations for the
year then ended and the statements of changes in net assets
and financial highlights for each of the periods indicated.
These financial statements and financial highlights are the
responsibility of the Trust's Management. Our responsibility
is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we
plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial
highlights are free of material misstatement. An audit also
includes examining on a test basis, evidence supporting the
amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned at May
29, 1998, by correspondence with the custodian and brokers;
where replies were not received from brokers, we performed
other auditing procedures. An audit also includes assessing
the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and financial
highlights present fairly, in all material respects, the
financial position of the Westcore MIDCO Growth Fund,
Westcore Blue Chip Fund, Westcore Small-Cap Opportunity Fund,
Westcore Growth and Income Fund, Westcore Intermediate-Term
Bond Fund, Westcore Long-Term Bond Fund and Westcore Colorado
Tax-Exempt Fund of the Westcore Trust as of May 29, 1998, and
the results of their operations, the changes in their net
assets and financial highlights for each of the periods
indicated in conformity with generally accepted accounting
principles.
[DELOITTE & TOUCHE LLP SIGNATURE]
Deloitte & Touche LLP
Denver, Colorado
June 26, 1998
55
<PAGE>
Westcore Officers
and Trustees:
Jack D. Henderson, Chairman
McNeil S. Fiske, Trustee
James B. O'Boyle, Trustee
Lyman E. Seely, Trustee
Robert L. Stamp, Trustee
Kenneth V. Penland, President
Jasper R. Frontz, Treasurer
Chad S. Christensen, Asst. Treasurer
W. Bruce McConnel, III, Secretary
[LOGO] WESTCORE FUNDS
370 17th Street
Suite 3100
Denver, CO 80202
1-800-392-CORE (2673)
www.westcore.com
Funds distributed by ALPS Mutual Funds Services, Inc., member NASD.
