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[LOGO] WESTCORE FUNDS Annual Report
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Westcore Equity Funds Westcore MIDCO Growth Fund May 28, 1999
Westcore Growth and Income Fund
Westcore Blue Chip Fund
Westcore Mid-Cap Opportunity Fund
Westcore Small-Cap Opportunity Fund
Westcore Bond Funds Westcore Long-Term Bond Fund
Westcore Intermediate-Term Bond Fund
Westcore Colorado Tax-Exempt Fund
Westcore Funds are managed by
Denver Investment Advisors LLC.
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May 28, 1999
DEAR FELLOW SHAREHOLDER:
THE BEGINNING OF A BROADER MARKET?
In our semi-annual report last fall we asked the question, "Will the
Stock Market Ever Broaden?" We asked this question because the U.S. stock market
had been focused on a very narrow list of large-cap growth stocks for quite some
time. About the only way to outperform the market was to be invested in this
narrow group of stocks. While the group included many wonderful companies, a
substantial amount of the good performance was not based on fundamentals but
rather investor preference for household names.
[GRAPHIC]
APRIL MAY HAVE MARKED A SHIFT
Our answer to the above question was "Yes", the market would broaden, but
we were unsure of the timing. Since early April of 1999, there have been clear
signs that the time may be upon us. We are seeing better performance in small
stocks, medium-sized stocks, value stocks and the stocks of more economically
cyclical businesses. We believe the underpinnings for this shift were the
relative valuation differences and the catalyst was a broadening of earnings
growth.
WELCOME CHANGE
The Westcore Fund Family has equity funds that provide exposure to these
broader markets. Westcore MIDCO Growth, Westcore Small-Cap Opportunity and
Westcore Mid-Cap Opportunity Funds should benefit from a move away from
large-cap growth and, as all of our funds employ disciplined value approaches
and tools, they should also benefit from a shift toward value stocks.
STYLE DRIFT AND INDEXING
Studies have shown that in the last several years the S&P 500 has
outperformed 90% of equity mutual funds. Some of this outperformance is related
to the narrow market environment described earlier. A shift toward a broader
market should allow more funds to outperform. Nonetheless, two responses to this
environment have been a move toward index funds by investors and a move by fund
managers to allow their investment styles, whether they be growth, value,
small-cap or mid-cap to drift toward the S&P 500. If we are right and the market
does broaden, then index funds should have a period of underperformance compared
to many mutual funds and be unable to meet the needs of all investors.
At Westcore Funds, there has been no style drift in any of our equity or
fixed income funds. Each of our styles was chosen because it represents an asset
class that has provided superior long-term returns and where we believe our
research-driven investment approach can provide superior returns through good
security selection. In addition, each of our investment styles can play a
specific role in investors' portfolios and provide the means to meet a variety
of investment objectives.
This report has been prepared for Westcore shareholders and may be
distributed to others only if preceded or accompanied by a prospectus.
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Photograph subject: Grenadier Mountains and Molas Lake, San Juan Mountains
near Silverton, Colorado Photographer: Eric Wunrow
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The managers' overviews section of this report show our fund performance
compared to the performance of benchmarks that represent our styles. We view
these benchmarks as the competition and continue to devote research to
structuring our portfolios to attempt to outperform these benchmarks.
ECONOMIC AND MARKET OUTLOOK
From the current historically high valuation levels it is probably a safe
prediction that volatility will remain high. Nonetheless, even though there are
some things to worry about on the horizon such as low unemployment leading to
modest inflation and a possible Fed rate hike, it is also likely that the good
growth, low-inflation environment will continue. In this environment both stocks
and bonds can continue to provide attractive returns.
WWW.WESTCORE.COM
We have redesigned our internet website in order to provide better
information and enhanced tools to our investors. The website can be used to
access your account information as well as for transactions.
WHAT OTHERS ARE SAYING
According to Lipper Analytical Services, Inc.(1), Westcore Long-Term Bond
Fund received a #1 ranking out of 92 BBB-Rated Corporate Bond Funds based on
average annual total return for the one-year period ended September 30, 1998(2).
Westcore Small-Cap Opportunity Fund was one of five funds recommended for
retirement savings in KIPLINGER'S PERSONAL FINANCE MAGAZINE'S article titled
"Just the Right Funds for Your Goals," March 1999. The recommendation was
designed for persons prepared to invest for at least 10 years who can accept
high price volatility, and was based primarily on a relatively strong long-term
performance, comparatively low expenses, and continuity of management. Westcore
Blue Chip Fund was included by the WALL STREET JOURNAL in its May 11, 1999
annual screen of seasoned low-cost large company stock funds.
Thank you for investing with us. We remain dedicated to meeting your
investment objectives through our family of style-specific stock and bond funds
that are driven by investment research.
Sincerely,
/s/ Jack D. Henderson /s/ Kenneth V. Penland
(1)Westcore Long-Term Bond Fund ranked 4th out of 39 funds for the 5-year period
and 1st out of 19 funds for the 10-year period ended 9/30/98. 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.
(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.
[PHOTO]
Jack D. Henderson
CHAIRMAN
[PHOTO]
Kenneth V. Penland, CFA
PRESIDENT
1
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WESTCORE FUNDS MANAGER'S OVERVIEW ANNUAL REPORT MAY 28, 1999
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WESTCORE MIDCO
GROWTH FUND
FUND OBJECTIVE: SEEKS TO MAXIMIZE LONG-TERM CAPITAL APPRECIATION BY INVESTING
PRIMARILY IN MEDIUM-SIZED GROWTH COMPANIES.
[PHOTO]
/s/ Todger Anderson
Todger Anderson, CFA
Portfolio Manager, Westcore
MIDCO Growth Fund
Q: How did the Fund perform?
A: For the fiscal year ending May 28, 1999, Westcore MIDCO Growth Fund's total
return was 11.87%. In comparison, the Standard & Poor's 400 Mid-Cap Index was
11.93%.
Q: What factors affected your performance?
A: Individual stock selection certainly was a contributing factor to our
performance. Stocks which did well included names such as Solectron, Lowes,
Biogen, Charles Schwab and Uniphase Corporation. We were not substantially over-
or underweighted in any particular industry group this past year. With the
benefit of hindsight, we should have had more exposure to internet stocks. When
you look at the portfolio as a whole, we had and continue to have exposure to
high earnings growth. I feel this was helpful.
Q: What investment opportunities are most interesting to you at the moment?
A: Four areas are particularly interesting to me. They are:
1. THE INTERNET: We all have read a lot about the internet, and it is probably
the most important change sweeping the business world today. We are
studying these developments carefully and making thought-out investment
judgements. An example would be our exposure to Charles Schwab and
electronic trading.
2. NEW DRUGS: Drug development has recently been overshadowed by the internet,
but it continues to be very productive. One example is Gilead Sciences
which has a new compound for fighting the flu. I am hopeful it will be
available for this next flu season.
3. SPECIALTY RETAILING: Specialty retailing is always exciting because people
figure out new and better ways to sell goods. Obviously the internet is
playing a role, but in fact companies like TJ Maxx and Abercrombie & Fitch
are doing well because of good merchandising--and because most people are
working and feeling financially secure enough to shop.
4. ENERGY: Last--but not least--is energy. Here the situation is changing as
demand around the world is picking up while supply has been reduced and
prices are up. I like companies like Vastar Resources which does a great
job finding oil.
Q: How do you pick stocks?
A: We're looking for well-managed companies that have new products or rapidly
growing products that haven't been fully reflected in the price of the stock.
For example, our interest in TV Guide was generated by an earlier investment in
a competitor as well as through interviews with chief executives in the
telecommunications industry. We concluded, after much analysis, that the market
WESTCORE MIDCO GROWTH FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
- ----------------------------------------------
Since
incep.
Period Ended 1 Year 5 Year 10 Year 8/1/86
- ----------------------------------------------
<S> <C> <C> <C> <C>
5/31/99 11.87% 15.63% 16.32% 15.25%
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6/30/99 13.80% 18.18% 17.36% 15.64%
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</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 BE LOWER. 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
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opportunity for digital TV guides would be large. In addition, it is likely that
internet access will be available through this new technology.
Q: What stock has disappointed you?
A: Whole Foods Market, an Austin, Texas-based natural foods supermarket chain,
has been expanding rapidly in recent quarters. However, earnings have been
disappointing and the stock has weakened. We expect the company to reaccelerate
their earnings growth later this year as they implement better financial
controls.
Q: What is your outlook
A: I am optimistic! The economy may slow and interest rates may rise a bit,
but the underlying strength of the U. S. economy plus improvements in the Asian
economy should create a positive business environment. Further, the internet
phenomenon--based on digital technology--is reshaping our economy and creating
many new, exciting medium-sized companies.
Westcore MIDCO Growth Fund
Top 10 Equity Holdings as of May 28, 1999
- - Schwab (Charles) Corp.
- - Waste Management Inc.
- - USA Networks Inc.
- - Frontier Corp.
- - Yahoo! Inc.
- - Forest Laboratories - Class A
- - Sybron International Corp.
- - AES Corp.
- - Family Dollar Stores
- - TV Guide Inc. - Class A
Westcore MIDCO Growth Fund
Sector Profile as a Percent of Net Assets
for May 28, 1999
[GRAPH]
<TABLE>
<S> <C>
TECHNOLOGY 24.61%
CONSUMER CYCLICALS 21.93%
CREDIT SENSITIVE 15.29%
OTHER 12.85%
HEALTHCARE 8.12%
SERVICES 4.89%
ENERGY 3.37%
CAPITAL GOODS 3.21%
CONSUMER STAPLES 3.03%
BASIC MATERIALS 2.70%
</TABLE>
Comparison of Change in Value of $10,000 Investment in
Westcore MIDCO Growth Fund, the S&P 400 Mid-Cap Index and
Mid-Cap Growth Category Average
[GRAPH]
<TABLE>
<CAPTION>
Aug-86 May-87 May-88 May-89 May-90 May-91 May-92
<S> <C> <C> <C> <C> <C> <C> <C>
Westcore Midco Growth $ 10,000 $ 12,200 $ 10,614 $ 13,635 $ 15,725 $ 20,512 $ 23,402
Standard & Poor's 400 $ 10,000 $ 11,593 $ 10,916 $ 14,359 $ 16,434 $ 19,617 $ 22,720
Mid-Cap Growth $ 10,000 $ 12,222 $ 10,972 $ 13,946 $ 15,972 $ 17,924 $ 20,084
<CAPTION>
May-93 May-94 May-95 May-96 May-97 May-98 May-99
<S> <C> <C> <C> <C> <C> <C> <C>
Westcore Midco Growth $ 27,623 $ 29,935 $ 32,944 $ 45,667 $ 48,074 $ 55,333 $ 61,901
Standard & Poor's 400 $ 26,940 $ 28,020 $ 31,800 $ 40,843 $ 48,257 $ 62,680 $ 70,158
Mid-Cap Growth $ 23,756 $ 25,207 $ 28,723 $ 41,353 $ 42,002 $ 51,365 $ 59,521
</TABLE>
Please Note: Performance calculations are as of the end of May each year.
Past performance is not indicative of future results. Fund inception date is
8/1/86.
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Source: Morningstar Although data are gathered from reliable sources,
Morningstar cannot guarantee completeness and accuracy.
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The S&P 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.
Morningstar Category averages reflect the performance of mutual funds with the
same Morningstar Category. The Morningstar Category identifies funds based on
their actual investment styles as measured by their underlying portfolio
holdings (portfolio statistics and composition over the past three years). As of
May 28, 1999 the Mid-Cap Growth Category included 420 mutual funds.
3
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WESTCORE FUNDS MANAGER'S OVERVIEW ANNUAL REPORT MAY 28, 1999
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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.
[PHOTO]
/s/ Milford H. Schulhof, II
Milford H. Schulhof, II
PORTFOLIO MANAGER, WESTCORE
GROWTH AND INCOME FUND
Q: How did the Fund perform?
A: For the fiscal year ending May 28, 1999, Westcore Growth and Income Fund's
total return was 6.25%. In comparison, the Standard & Poor's 500 Index was
21.03%.
Q: What factors affected the Fund's performance?
A: Our decision to increase exposure to large capitalization growth companies
had a positive impact on the fund and could have had a greater effect had the
shift occurred at an earlier point in the fiscal year. The increased large
capitalization exposure was particularly beneficial during the first four months
of 1999. However, in May, investors turned away from large growth and shifted
into small- and mid-sized companies, value stocks and economic cyclical stocks
such as aluminum, copper, paper and steel. That happened because Wall Street
believed that the Asian economies were bottoming and investors were looking for
stocks that would benefit from an expected recovery overseas. Although the shift
hurt us in the short-term, a recovery in Asia is very positive for many
companies that we own. It's very good for companies such as General Electric and
Pepsico that do business there.
Q: What stocks performed well during the period?
A: We focused on telecommunications companies such as AT&T, MCI Worldcom,
Sprint, Nokia, Cisco Systems and Qwest Communications. As the Asian economic
crisis eases, the prospects for global telecommunications companies remain
strong. In addition, these companies are building the infrastructure to
facilitate internet access and data transfer. Another strong group during the
year was retailing. Led by the consumer, the U.S. economy continues its robust
growth. Winners in the portfolio include Home Depot, Lowes and Wal-Mart Stores,
all of which are experiencing strong same-store sales growth.
Q: What has been a difficult area?
A: The pharmaceutical industry performed very well in 1998, but 1999 has been
a different story. Part of the problem is that the stock prices have increased
substantially, and the stocks sold off when investors shifted away from
large-cap growth. However, we continue to maintain a similar weight as the S&P
500 Index, because we think that pharmaceuticals are part of the solution to
rising health care costs, not part of the problem. Long-term, we remain bullish
on the group.
WESTCORE GROWTH AND INCOME FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
- -----------------------------------------------
Since
incep.
Period Ended 1 Year 5 Year 10 Year 6/1/88
- -----------------------------------------------
<S> <C> <C> <C> <C>
5/31/99 6.25% 15.17% 12.39% 12.71%
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6/30/99 11.42% 17.37% 13.18% 13.32%
- -----------------------------------------------
</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 BE LOWER. 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>
Q: How do you select stocks?
A: The overwhelming part of our analysis is company specific, where we use
fundamental analysis to project earnings and dividend growth to see if the stock
price is attractive. Our research analysts visit companies and meet with
management and assess the likelihood that the company can meet its goals.
However, certain industries are very dependent on variables outside a company's
control. For example, we might find an excellent oil company with strong
earnings growth and attractive valuations, but if the price of oil goes down,
then the stock is not going to perform well. So, we always have to pay attention
to the big picture.
Q: What is your outlook for the Fund?
A: We are long-term investors, preferring to invest in great companies rather
than trying to make short-term predictions. The current economic environment of
moderate growth and low inflation is positive for stocks. In addition, the
Federal Reserve Board has been very effective in sustaining growth while keeping
inflation at bay. The healthy stock market continues to create a feeling of
wealth among consumers, which in turn has propelled the economy and the stock
market. Therefore, we believe that the Federal Reserve Board will do everything
it can to prevent a recession, maintain low inflation and should be very
cautious about raising interest rates. Under the current scenario, our outlook
for the Fund is very positive.
Westcore Growth and Income Fund
Top 10 Equity Holdings as of May 28, 1999
- - AES Corp.
- - Omnicom Group
- - General Electric Co.
- - MCI WorldCom Inc.
- - Frontier Corp.
- - Oracle Corp.
- - Schering-Plough Corp.
- - Microsoft Corp.
- - Enron Corp.
- - Home Depot Inc.
Westcore Growth and Income Fund
Sector Profile as a Percent of Net Assets
for May 28, 1999
[GRAPH]
<TABLE>
<S> <C>
CREDIT SENSITIVE 33.82%
TECHNOLOGY 18.19%
CONSUMER CYCLICALS 13.22%
HEALTHCARE 10.27%
SERVICES 6.46%
CONSUMER STAPLES 5.13%
CAPITAL GOODS 4.26%
ENERGY 4.77%
OTHER 2.82%
BASIC MATERIALS 1.06%
</TABLE>
Comparison of Change in Value of $10,000 Investment
in Westcore Growth and Income Fund, the S&P 500 Index
and Large Blend Category Average
[GRAPH]
<TABLE>
<CAPTION>
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Jun-88 May-89 May-90 May-91 May-92 May-93 May-94 May-95 May-96 May-97 May-98 May-99
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Westcore Growth and Income $10,000 $11,598 $13,289 $14,494 $16,541 $18,097 $18,407 $19,112 $24,297 $29,086 $35,118 $37,313
S&P 500 Index $10,000 $12,463 $14,533 $16,247 $17,848 $19,917 $20,764 $24,950 $32,038 $41,457 $54,172 $65,564
Large Blend Category Average $10,000 $12,150 $13,757 $15,352 $17,007 $18,947 $19,798 $22,653 $28,629 $35,414 $44,876 $51,734
</TABLE>
Please Note: Performance calculations are as of the end of May each year. Past
performance is not indicative of future results. Fund inception date is 6/1/88.
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Source: Morningstar Although data are gathered from reliable sources,
Morningstar cannot guarantee completeness and accuracy.
- -------------------------------------------------------------------------------
The S&P 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.
Morningstar Category averages reflect the performance of mutual funds with the
same Morningstar Category. The Morningstar Category identifies funds based on
their actual investment styles as measured by their underlying portfolio
holdings (portfolio statistics and composition over the past three years). As of
May 28, 1999 the Large Blend Category included 906 mutual funds.
5
<PAGE>
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WESTCORE FUNDS MANAGER'S OVERVIEW ANNUAL REPORT MAY 28, 1999
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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.
[PHOTO]
/s/ Varylyn K. Schock
Varylyn K. Schock, CFA
Portfolio Manager, Westcore
Blue Chip Fund
Q: How did the Fund perform?
A: For the fiscal year ending May 28, 1999, Westcore Blue Chip Fund's total
return was 7.42%. In comparison, the Standard & Poor's 500 Index was 21.03%.
Q: What factors affected performance?
A: Although large-capitalization stocks outperformed mid-cap and small-cap
stocks, large-cap value stocks did not do as well as large-cap growth. For most
of the fiscal year, the Asian economic crisis cast doubt over global economic
growth. Investors, confronted with scarce growth prospects, drove prices up on a
narrow universe of companies that promised growth--primarily in the software,
telecommunications and internet-related areas of the market. This investment
scenario began to shift as the fiscal year drew to a close and it became
apparent that U.S. economic growth was not slowing down and that foreign
economies were stabilizing.
Q: How would you describe your investment style?
A: We look for companies that are temporarily undervalued and represent great
opportunity. Contrast this with the "deep value" style used by some investors
that requires that a stock sell below 15 times earnings or some other arbitrary
price/earnings ratio. The holdings in the Fund tend to be well-known, large
companies that are global leaders in their industries.
Q: What stocks performed particularly well?
A: Our purchase of Tellabs, which specializes in data communications, was
particularly timely. The company's stock price was depressed partly because a
pending merger did not materialize. We purchased the stock believing that
investors had overreacted. The shares rebounded, partly because the company
continued to report strong earnings, and because Wall Street was paying dearly
for technology companies whose products are related to the internet. We
purchased Harley-Davidson last fall at the height of concerns over the global
economy. However, because the company has a five-year order backlog, we didn't
believe that the company's earnings would be negatively impacted. The stock has
performed very well since then. Dayton-Hudson, a national retail chain including
Mervyn's and Target, has been a long-time winner for the portfolio. Retailing
continues to benefit from the strong U.S. consumer-led economy. Other success
stories include General Dynamics, which posted surprising earnings gains, Apple
Computer, which bounced back when original founder Steve Jobs launched the
extremely popular iMac computer, and Motorola, which had been late to upgrade
its cellular telephone line. Technology companies often offer opportunity
because the stocks are either sky high or priced as if the company is going out
of business. Large-cap technology companies rarely go bankrupt, because they
typically have the resources to turn around their businesses. However, product
cycles are extremely short, so investors often have a daunting task keeping up
with industry trends.
WESTCORE BLUE CHIP FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
- ---------------------------------------------
Since
incep.
Period Ended 1 Year 5 Year 10 Year 6/1/88
- ---------------------------------------------
<S> <C> <C> <C> <C>
5/31/99 7.42% 21.83% 16.02% 15.37%
- ---------------------------------------------
6/30/99 8.48% 23.06% 16.14% 15.65%
- ---------------------------------------------
</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 BE LOWER. 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>
Q: What areas were difficult?
A: Financial companies, including banks and brokerage firms, operated in a
difficult environment for much of the period. Last fall, the Asian economic
crisis, the Russian debt default and currency devaluations in many parts of the
world made it difficult for major banks doing business overseas. In addition,
economically cyclical industries such as chemicals and paper companies performed
poorly, as investors believed that the global troubles would spread to the U.S.
These gyrations in the economy produced a tough environment for investing
profitably and limiting risk in the financial and cyclical areas.
Q: What is your outlook?
A: We are more optimistic about large-cap value as a sector than at any time
in the past three to five years. Beginning in April, investors began to pay more
attention to stocks offering good value. At the same time, they became concerned
about stocks that had been getting increasingly expensive. So far, the shift
from large-cap growth has mostly benefited deep value companies such as energy
and commodities. However, the disparity in price between large-cap growth and
the broader category of large-cap value remains very large. We believe that our
investment sector will benefit over time from the closure of this disparity.
Westcore Blue Chip Fund
Top 10 Equity Holdings as of May 28, 1999
- - ALLTEL Corp.
- - Sprint Corp. (FON Group)
- - International Business Machines Corp.
- - UniSys Corp. Co.
- - Tyco International Ltd.
- - Bristol-Myers Squibb Co.
- - Motorola Inc.
- - Ingersoll-Rand Co.
- - Carnival Corp.
- - Novell Inc.
Westcore Blue Chip Fund
Sector Profile as a Percent of Net Assets
for May 28, 1999
[GRAPH]
<TABLE>
<S> <C>
CREDIT SENSITIVE 29.84%
TECHNOLOGY 18.01%
CONSUMER CYCLICALS 16.21%
CONSUMER STAPLES 7.43%
CAPITAL GOODS 7.10%
HEALTHCARE 6.55%
BASIC MATERIALS 6.38%
SERVICES 5.23%
OTHER 3.25%
</TABLE>
Comparison of Change in Value of $10,000
Investment in Westcore Blue Chip Fund,
the S&P 500 Index and Large Value Category Average
[GRAPH]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Jun-88 May-89 May-90 May-91 May-92 May-93 May-94 May-95 May-96 May-97 May-98 May-99
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BLUE CHIP FUND $10,000 $11,441 $12,784 $14,456 $15,905 $17,753 $18,307 $21,791 $28,433 $35,336 $45,771 $49,167
S&P 500 INDEX $10,000 $12,463 $14,533 $16,247 $17,848 $19,917 $20,764 $24,950 $32,038 $41,457 $54,172 $65,564
LARGE VALUE CATEGORY AVERAGE $10,000 $12,222 $13,345 $14,770 $16,397 $18,625 $19,798 $22,861 $28,496 $35,142 $43,811 $48,087
</TABLE>
Please Note: Performance calculations are as of the end of May each year.
Past performance is not indicative of future results. Fund inception date is
6/1/88.
- -------------------------------------------------------------------------------
Source: Morningstar Although data are gathered from reliable sources,
Morningstar cannot guarantee completeness and accuracy.
- -------------------------------------------------------------------------------
The S&P 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.
Morningstar Category averages reflect the performance of mutual funds with the
same Morningstar Category. The Morningstar Category identifies funds based on
their actual investment styles as measured by their underlying portfolio
holdings (portfolio statistics and composition over the past three years). As of
May 28, 1999 the Large Value Category included 547 mutual funds.
7
<PAGE>
- -------------------------------------------------------------------------------
WESTCORE FUNDS MANAGER'S OVERVIEW ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
WESTCORE MID-CAP
OPPORTUNITY FUND
FUND OBJECTIVE: SEEKS TO MAXIMIZE LONG-TERM CAPITAL APPRECIATION BY INVESTING
PRIMARILY IN MEDIUM-SIZED COMPANIES WHOSE STOCKS APPEAR TO BE UNDERVALUED.
[PHOTO]
/s/ Christianna Wood
Christianna Wood, CFA
Portfolio Manager, Westcore
Mid-Cap Opportunity Fund
Q: How did the Fund perform?
A: From the Fund's inception on October 1, 1998 to the end of the fiscal year
on May 28, 1999, Westcore Mid-Cap Opportunity Fund's total return was 10.50%.
In comparison, the Russell Midcap Index was 26.23%.
Q: What factors affected your performance?
A: As the Fund was launched last fall, the Asian economic crisis, the Russian
default on government debt and the plunge in oil prices created a bleak
international picture. Although the U.S. economy remained strong, investors
questioned whether it could continue to be an island of prosperity. With
investor fears of a recession for much of the period--and growth in profits
perceived to be scarce--large-cap growth stocks were favored. Internet companies
were also favored, regardless of their lack of profitability. By April, the
global economic picture brightened, U.S. corporate profits were stronger than
expected, and investors shifted their interest to stocks that had been out of
favor. That included value as well as small- and mid-cap stocks. Yet, for most
of the period, the larger the company, the better the performance across the
board. Nevertheless, the most attractive stocks on our model were smaller
companies in general. As a result, the Fund's average market capitalization was
smaller than our benchmarks, which in turn hurt performance.
Q: How do you select stocks?
A: We start with a universe of 2,400 companies that fit the mid-cap category.
Using seven different factors such as positive historical earnings trends and
upward earnings revisions by Wall Street analysts, we rank the stocks within
ten economic sectors. Other qualitative factors, such as ease of trading,
quality of management and competitive position narrow down the portfolio to
about 60-70 companies. Economic sector weightings remain close to the Russell
Midcap Index.
Q: What stocks helped performance during the period?
A: Darden Restaurants was one of the most successful stocks. The company,
which operates the Olive Garden and Red Lobster restaurant chains, has improved
menus, boosted traffic, revamped advertising and produced better earnings. The
stock was very inexpensive when we purchased it, but we could see that
management was taking positive steps to improve performance. Another successful
stock was Navistar International, a maker of trucks and diesel engines, whose
earnings have multiplied over the past three years. The company has an
exclusive contract to make diesel engines for Ford through the year 2002. The
company has gained market share and improved product quality, and has the
results to show for it. A third winner was AnnTaylor Stores, an upscale
retailer of women's clothing. In the past year,
WESTCORE MID-CAP OPPORTUNITY FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
- ----------------------------------------------
Since
incep.
Period Ended 1 Year 5 Year 10 Year 10/1/98
- ----------------------------------------------
<S> <C> <C> <C> <C>
5/31/99 N/A N/A N/A 10.50%
- ----------------------------------------------
6/30/99 N/A N/A N/A 12.50%
- ----------------------------------------------
</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 BE LOWER. 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>
management has made better merchandising decisions that better reflect current
trends in business and casual dress. As a result, same-store sales growth is
strong. AnnTaylor Stores is a good example of a company identified by our
investment model, one that is selling at a low price where we identified
positive business change.
Q: What's an example of a stock that didn't work out?
A: Advanced Micro Devices produced disappointing earnings, failing to
capitalize on the upturn in the semiconductor business cycle. One difficulty
with being a value investor is that sometimes a stock is cheap and stays that
way. Advanced Micro Devices was not able to live up to our expectations.
Q: What is your outlook?
A: In 1987 and 1990, investors also focused on companies with extremely high
price/earnings ratios and shunned the traditional measures of value when
selecting stocks. Those periods each lasted about a half year before coming to
an end. With oil above $15 a barrel, we feel that the world economy is
reasonably secure, and the scenario of the downward spiral appears to have been
eliminated. A stronger global economy will help investors feel confident in
buying stocks other than large-cap growth names.
Westcore Mid-Cap Opportunity Fund
Top 10 Equity Holdings as of May 28, 1999
- - Dana Corp.
- - Coastal Corp.
- - Conseco Inc.
- - Energy East Corp.
- - Tyson Foods Inc. - Class A
- - K Mart Corp.
- - Johnson Controls Inc.
- - Seagate Technology Inc.
- - Darden Restaurants Inc.
- - UnionBanCal Corp.
Westcore Mid-Cap Opportunity Fund
Sector Profile as a Percent of Net Assets
for May 28, 1999
[GRAPH]
<TABLE>
<S> <C>
CREDIT SENSITIVE 28.80%
CONSUMER CYCLICALS 22.29%
TECHNOLOGY 10.51%
ENERGY 9.10%
BASIC MATERIALS 7.71%
CONSUMER STAPLES 7.15%
HEALTHCARE 5.59%
OTHER 3.59%
CAPITAL GOODS 3.13%
SERVICES 2.13%
</TABLE>
Comparison of Change in Value of $10,000 Investment
in Westcore Mid-Cap Opportunity Fund, the Russell Midcap
Index and the Mid-Cap Value Category Average
[GRAPH]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Oct-98 May-99
- -------------------------------------------------------------------------------
<S> <C> <C>
WESTCORE MID-CAP OPPORTUNITY FUND $10,000 $11,050
RUSSELL MIDCAP INDEX $10,000 $12,623
MID-CAP VALUE CATEGORY AVERAGE $10,000 $12,516
</TABLE>
$'S SHOWN IN THOUSANDS
Please Note: Performance calculations are as of the end of May each year. Past
performance is not indicative of future results. Fund inception date is 10/1/98.
- -------------------------------------------------------------------------------
Fund and Category Data Source: Morningstar Index Data Source: Russell
Although data are gathered from reliable sources, Morningstar cannot guarantee
completeness and accuracy.
- -------------------------------------------------------------------------------
The Russell Midcap Index is an unmanaged index that measures the performance of
the 800 smallest companies in the Russell 1000 Index, which represents
approximately 35% of the total market capitalization of the Russell 1000 Index.
Morningstar Category averages reflect the performance of mutual funds with the
same Morningstar Category. The Morningstar Category identifies funds based on
their actual investment styles as measured by their underlying portfolio
holdings (portfolio statistics and composition over the past three years). As of
May 28, 1999 the Mid-Cap Value Category included 260 mutual funds.
9
<PAGE>
- -------------------------------------------------------------------------------
WESTCORE FUNDS MANAGER'S OVERVIEW ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
WESTCORE SMALL-CAP
OPPORTUNITY FUND
FUND OBJECTIVE: SEEKS TO MAXIMIZE LONG-TERM CAPITAL APPRECIATION PRIMARILY
THROUGH INVESTMENTS IN COMPANIES WITH RELATIVELY SMALL CAPITALIZATIONS WHOSE
STOCKS APPEAR TO BE UNDERVALUED.
[PHOTO]
/s/ Varylyn K. Schock
Varylyn K. Schock, CFA
Portfolio Manager, Westcore
Small-Cap Opportunity Fund
Q: How did the Fund perform?
A: For the fiscal year ending May 28, 1999, Westcore Small-Cap Opportunity
Fund's total return was -19.72%. In comparison, the Russell 2000 Index was
- -2.79%.
Q: What factors affected the Fund's performance?
A: For most of the year, small-cap value stocks were very much out of favor.
The Asian economic crisis led investors to focus on familiar large-cap companies
with steady growth prospects. Our method of selecting undervalued stocks looks
at companies selling at low price-to-earnings, low price-to-cash flow and low
price-to-book value ratios. For much of the period, investors shunned these
measures in favor of high-priced stocks. By April 1999, U.S. economic growth
proved resilient to global difficulties, and investors became more interested in
stocks in general. To some extent, investors were attracted to small-cap value
stock sectors that hadn't performed well.
Q: What stocks performed particularly well?
A: AFC Cable Systems, which makes wiring systems for construction applications,
is a good example of our stock selection style. We purchased shares of AFC Cable
Systems last fall when the stock was selling at just ten times earnings. The
stock price had lost half its value because investor sentiment was negative on
technology-oriented companies during the height of the global turmoil--even
though the business was performing well. The company had a two-year backlog of
business, its market share was increasing and management owned more than 20% of
the stock, which means that management shared our objectives of a higher stock
price. Our judgement on the company's undervaluation was affirmed by another
company which announced in February that it would be acquiring AFC Cable
Systems. Over the past 12 months, other stocks that did well included Bindley
Western Industries, a pharmaceutical supplier benefiting from higher
prescription drug prices; Ben & Jerry's Homemade, an ice cream company
benefiting from easing butterfat prices and expanding distribution throughout
Europe; and Lafarge, a cement company which benefited from strong economic
growth, ongoing construction around the U.S. and recent federal legislation
funding highway improvements.
Q: What's an example of a stock that had a difficult year?
A: Kellstrom Industries, an aerospace company that sells commercial jet engines
and parts, performed poorly last fall during the height of the Asian crisis as
investors believed that airplane orders would fall. This provided the
opportunity to buy the stock of a solid company at a relatively low price. After
recovering somewhat, the stock was once again shunned by investors during the
first quarter of 1999 as "internet fever" captured investors' attention and
dollars. However, the company is
WESTCORE SMALL-CAP OPPORTUNITY FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
- -----------------------------------------------
Since
incep.
Period Ended 1 Year 5 Year 10 Year 12/28/93
- -----------------------------------------------
<S> <C> <C> <C> <C>
5/31/99 -19.72% 12.59% N/A 11.55%
- -----------------------------------------------
6/30/99 -16.80% 13.96% N/A 12.28%
- -----------------------------------------------
</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 BE LOWER. 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>
growing at about 30% per year and is capitalizing on a consolidating industry.
Although it may not be in a glamorous industry, we continue to hold the stock
and believe the company's strong performance will be rewarded with a higher
stock price.
Q: Where are you currently seeing value?
A: We are seeing an unusual degree of value across the board as investors for
the most part continue to focus on large stocks. We have increased our position
in real estate investment trusts (REITs). REITs have been out of favor over the
past year, but we believe the stronger U.S. economy, which translates into
higher occupancy for shopping centers, industrial properties, office buildings
and other real estate projects bodes well for them. However, we keep the Fund's
sector weightings similar to the Russell 2000 Index so that our focus remains on
stock selection, not sector decisions.
Q: What is your outlook?
A: We are optimistic about small-cap stocks, primarily because the market has
recently broadened out. Small stocks seem to have returned to moving for
fundamental reasons rather than investor sentiment. The economy remains strong,
interest rates are relatively low and this segment of the market is very
inexpensive.
Westcore Small-Cap Opportunity Fund
Top 10 Equity Holdings as of May 28, 1999
- - Zale Corp.
- - ShopKo Stores Inc.
- - Avis Rent A Car Inc.
- - Trigon Healthcare Inc.
- - Golden State Bancorp Inc.
- - Ralcorp Holdings Inc.
- - Bindley Western Industries Inc.
- - Heller Financial Inc. - Class A
- - Cordant Technologies Inc.
- - Earthgrains Co.
Westcore Small-Cap Opportunity Fund
Sector Profile as a Percent of Net Assets
for May 28, 1999
[GRAPH]
<TABLE>
<S> <C>
CREDIT SENSITIVE 28.91%
CONSUMER CYCLICALS 20.09%
HEALTHCARE 8.49%
BASIC MATERIALS 8.26%
CONSUMER STAPLES 8.15%
SERVICES 7.24%
CAPITAL GOODS 5.72%
TECHNOLOGY 5.16%
OTHER 5.02%
ENERGY 2.96%
</TABLE>
Comparison of Change in Value of $10,000 Investment
in Westcore Small-Cap Opportunity Fund, Russell 2000 Index
and Small Value Category Average
[GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Jan-94 May-94 May-95 May-96 May-97 May-98 May-99
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
WESTCORE SMALL CAP OPPORTURNITY FUND $10,000 $9,997 $10,812 $14,865 $17,285 $22,540 $18,095
RUSSELL 2000 INDEX $10,000 $9,682 $10,679 $14,517 $15,531 $18,826 $18,301
SMALL VALUE CATEGORY AVERAGE $10,000 $9,994 $11,007 $14,269 $16,793 $21,174 $18,896
</TABLE>
$'S SHOWN IN THOUSANDS
Please Note: Performance calculations are as of the end of May each year. Past
performance is not indicative of future results. Fund inception date is
12/28/93.
- -------------------------------------------------------------------------------
Source: Morningstar Although data are gathered from reliable sources,
Morningstar cannot guarantee completeness and accuracy.
- -------------------------------------------------------------------------------
The Russell 2000 Index is an unmanaged index that measures the performance of
the 2,000 smallest companies in the Russell 3000 Index, which represents
approximately 8% of the total market capitalization of the Russell 3000 Index.
Morningstar Category averages reflect the performance of mutual funds with the
same Morningstar Category. The Morningstar Category identifies funds based on
their actual investment styles as measured by their underlying portfolio
holdings (portfolio statistics and composition over the past three years). As of
May 28, 1999 the Small Value Category included 233 mutual funds.
11
<PAGE>
- -------------------------------------------------------------------------------
WESTCORE FUNDS MANAGER'S OVERVIEW ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
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.
[PHOTO]
/s/ Jerome R. Powers
Jerome R. Powers, CFA
Portfolio Manager,
Westcore Long-Term Bond Fund
Q: How did the Fund perform?
A: For the fiscal year ending May 28, 1999, the Westcore Long-Term Bond Fund's
total return was 1.21%. In comparison, the unmanaged Lehman Brothers Long-Term
Government/Corporate Index was 1.32%.
Q: What global factors affected the bond market?
A: For long-term bonds, it was a year of big swings. Last summer, when Russia
defaulted on its government debt and the Asian economic crisis was at its worst,
global investors sought a safe haven in U.S. Treasury securities. As a result,
Treasury bonds soared in price and yields on the 30-year bond fell to 4.70%.
Meanwhile, corporate bonds performed poorly because of investor aversion to
credit risk of any kind. Fearing that the U.S. would be dragged into a
recession, the Federal Reserve Board cut short-term interest rates from 5.50% to
4.75% over a six-week period last fall. Central banks throughout the world
followed suit, and the crisis eased. Corporate bond prices recovered and
Treasury bonds sold off sharply, with yields returning to the 5.50% range.
Although the U.S. economy was now in the eighth year of an expansion, no
recession was in sight. On May 14, 1999, the government reported that the
consumer price index jumped 0.7% during April, the biggest increase in nine
years. A few days later, the Fed announced that it was leaning towards raising
interest rates in the near future. Long-term U.S. Treasury yields drifted up
towards 6%.
Q: What factors affected the Fund's performance?
A: Because of the Fund's significant emphasis on corporate bonds, the rebound
in this sector was positive for performance. The Fund also holds bonds issued by
real estate investment trusts (REITs), which had been hurt in last year's global
credit crunch. As liquidity returned to the markets in 1999, REITs recovered
much of their losses.
In addition, we chose to stay "duration" neutral compared to our benchmark.
The duration of a portfolio refers to its sensitivity to changes in interest
rates. Since bond prices move inversely to interest rates, a longer-than-average
duration would cause a bond portfolio to perform worse than average. With so
many conflicting economic forces occurring within the past fiscal year, trying
to project interest rates was a particularly daunting and risky task. Because we
give investors the option of choosing an intermediate-term fund or a long-term
fund, our strategy is to stay duration neutral most of the time. We seek to add
value through sector and issue selection.
WESTCORE LONG-TERM BOND FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
- --------------------------------------------------------------
Since
incep.
Period Ended 1 Year 5 Year 10 Year 6/1/88
- --------------------------------------------------------------
<S> <C> <C> <C> <C>
5/31/99 1.21% 8.83% 9.34% 9.67%
- --------------------------------------------------------------
6/30/99 -1.62% 8.74% 8.82% 9.49%
- --------------------------------------------------------------
</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 BE LOWER. 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>
Q: Describe a recent acquisition that illustrates your management style.
A: We recently purchased 100-year bonds issued by J.C. Penney, a security
whose price had deteriorated due to weaker than expected profitability. However,
we viewed it as an opportunity to buy a bond at an attractive price. The company
has a very strong financial position and management is making improvements to
their stores. The 100-year J.C. Penney bond, with a 7 5/8% coupon due March
2097, offers more yield than a 30-year bond. In a rising interest rate
environment, the 100-year bond doesn't go down in price significantly more than
a 30-year bond. In other words, we believe that we are getting more yield
without taking much extra risk.
Q: What is your outlook?
A: Although foreign economies have rebounded, we are not concerned about a
major resurgence in inflation. True, oil prices are up noticeably from several
months ago--but they are not nearly as high as they were a year ago. Meanwhile,
the U.S. continues to be the most productive economy in the world. To be sure,
the extra yield offered by corporate bonds compared to Treasury securities--the
yield spread--will continue to fluctuate, but should remain attractive. We
continue to believe that long-term bonds offer good value in the current
environment.
Westcore Long-Term Bond Fund
Top 10 Fixed-Income Holdings as of May 28, 1999
- - U.S. Treasury Bonds*
- - U.S. Treasury Strips*
- - Lincoln National Insurance Corp., 9.125%, 10/01/24
- - K Mart Corp., 7.95%, 02/01/23
- - AMR Corp., 10.00%, 04/15/21
- - Borden Inc., 7.875%, 02/15/23
- - Lubrizol Corp., 7.25%, 06/15/25
- - Property Trust of America, 6.875%, 02/15/08
- - FHLMC Pool #G00336, 6.00%, 10/01/24
- - Jet Equipment Trust Series 95-B, 7.83%, 02/15/15
*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 28, 1999.
Westcore Long-Term Bond Fund
Sector Profile as a Percent of Net Assets
for May 28, 1999
[GRAPH]
<TABLE>
<S> <C>
U.S. GOVERNMENT TREASURIES 47.96%
FINANCIAL 20.01%
INDUSTRIAL 18.37%
TRANSPORTATION 5.81%
OTHER 4.71%
UTILITIES 1.54%
MORTGAGE-BACKED SECURITIES 1.60%
</TABLE>
Comparison of Change in Value of $10,000 Investment in Westcore Long-Term Bond
Fund, the Lehman Brothers Long-Term Government/Corporate Bond Index and
Long-Term Bond Category Average
[GRAPH]
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Jun-88 May-89 May-90 May-91 May-92 May-93
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
WESTCORE LONG-TERM BOND FUND $10,000 $11,303 $12,101 $13,537 $15,438 $18,124
LEHMAN BROTHERS LONG-TERM GOVERNMENT/CORPORATE
BOND INDEX $10,000 $11,506 $12,501 $14,124 $16,254 $18,593
LONG-TERM BOND CATEGORY AVERAGE $10,000 $11,019 $11,851 $13,292 $15,066 $17,091
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
May-94 May-95 May-96 May-97 May-98 May-99
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
WESTCORE LONG-TERM BOND FUND $18,079 $20,677 $21,382 $23,392 $27,282 $27,612
LEHMAN BROTHERS LONG-TERM GOVERNMENT/CORPORATE
BOND INDEX $18,531 $21,685 $22,529 $24,759 $28,864 $29,245
LONG-TERM BOND CATEGORY AVERAGE $17,201 $19,260 $20,125 $21,924 $24,585 $25,033
</TABLE>
$'S SHOWN IN THOUSANDS
Please Note: Performance calculations are as of the end of May each year. Past
performance is not indicative of future results. Fund inception date is 6/1/88.
- -------------------------------------------------------------------------------
Source: Morningstar Although data are gathered from reliable sources,
Morningstar cannot guarantee completeness and accuracy.
- -------------------------------------------------------------------------------
The Lehman Brothers Long-Term Government/Corporate Bond Index is an unmanaged
index that 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.
Morningstar Category averages reflect the performance of mutual funds with the
same Morningstar Category. The Morningstar Category identifies funds based on
their actual investment styles as measured by their underlying portfolio
holdings (portfolio statistics and composition over the past three years). As of
May 28, 1999 the Long-Term Bond Category included 102 mutual funds.
13
<PAGE>
- -------------------------------------------------------------------------------
WESTCORE FUNDS MANAGER'S OVERVIEW ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
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.
[PHOTO]
/s/ Jerome R. Powers,
Jerome R. Powers, CFA
Portfolio Manager, Westcore
Intermediate-Term Bond Fund
Q: How did the Fund perform?
A: For the fiscal year ending May 28, 1999, the Westcore Intermediate-Term
Bond Fund's total return was 3.54%. In comparison, the unmanaged Lehman Brothers
Intermediate Government/Corporate Index was 4.23%.
Q: What global factors affected the bond market?
A: For much of 1998, the Asian economic crisis removed the threat of inflation
and caused interest rates to decline sharply. Because of the heightened
sensitivity to credit risk throughout the world, corporate bonds, regardless of
quality, underperformed during this period. In response, the Federal Reserve
Board reduced short-term interest rates three times between September and
November to prevent the U.S. economy from falling into a recession.
By early 1999, it became apparent that U.S. economic growth was far
stronger than expected. Meanwhile, the Asian crisis was off the front page. As a
result, Treasury bonds fell sharply in price, resulting in yields that
approximated levels of last summer before the crisis intensified. Although for
the fiscal year ending May 28, 1999, total return proved to be modestly positive
for Treasury bonds, February 1999 was the worst month for Treasury bonds since
1981. However, corporate bonds and mortgage-backed securities performed
relatively well during the period of turmoil for Treasury securities. By
mid-May, inflation fears resurfaced and the Federal Reserve Board indicated that
its bias was towards raising interest rates to slow down the economy. In
anticipation of a Federal Reserve Board move to raise interest rates, yields on
intermediate securities rose accordingly.
Q: What factors affected the Fund's performance?
A: Compared to our benchmark, the Westcore Intermediate-Term Bond Fund
contains a higher percentage of corporate bonds, which outperformed other asset
classes such as Treasury bonds during the second half of the fiscal year. Bonds
issued by real estate investment trusts (REITs) performed particularly well,
bouncing back from the fourth quarter of 1998 when liquidity was restored to the
market. Corporate bonds issued by media and telecommunications companies also
performed very well.
Q: Why does the Westcore Intermediate-Term Bond Fund invest so heavily in
corporate bonds?
A: Prior to the Asian economic crisis, investment-grade corporate bond yields
were modestly higher than U.S. Treasury bonds. During the crisis, those yield
"spreads" widened considerably as investors shunned credit risk. Even though the
global economy appears to be recovering, the premiums offered by corporate bonds
have remained high. Especially in a shorter-term portfolio, we believe that the
extra yield on corporates adequately compensates us for the extra credit risk
and our research can add further value.
WESTCORE INTERMEDIATE-TERM
BOND FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
Since
incep.
Period Ended 1 Year 5 Year 10 Year 6/1/88
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
5/31/99 3.54% 6.58% 7.32% 7.43%
- ---------------------------------------------------------------------
6/30/99 2.77% 6.60% 7.05% 7.36%
- ---------------------------------------------------------------------
</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 BE LOWER. 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>
Q: What is your strategy regarding credit quality?
A: We focus on securities that are rated "A" or "BBB", the middle to lower end
of investment grade. Because of the turmoil in the corporate market last year,
yield spreads on these corporate bonds widened to such a degree that they
provided excellent value. As a result, we increased our exposure at that time
and we have been rewarded. The portfolio includes issuers with household names
such as Time Warner Entertainment, United Air Lines, New York Times, General
Motors Acceptance and Hilton Hotels.
Q: What is your outlook?
A: We continue to believe strongly in products such as corporates,
mortgage-backed securities and asset-backed securities that offer higher yields
than U.S. Treasury bonds. Rather than try to predict the direction of interest
rates or focus on a top down view of the economy, we will continue to apply our
research techniques to look at individual securities from the bottom up. Despite
recent concerns about inflation, we believe that intermediate-term bonds will
continue to represent good value for investors.
Westcore Intermediate-Term Bond Fund
Top 10 Fixed-Income Holdings as of May 28, 1999
- U.S. Treasury Notes*
- FHLMC Pool #G00336, 6.00%, 10/01/24
- Aetna Services Inc., 7.125%, 08/15/06
- Rockwell International Corp., 6.625%, 06/01/05
- Cox Communications Inc., 6.375%, 06/15/00
- Time Warner Entertainment Co., 9.625%, 05/01/02
- FNMA Pool #362443, 6.50%, 12/01/08
- New Plan Realty Trust, 7.75%, 04/06/05
- Jet Equipment Trust Series 95-B, 7.83%, 02/15/15
- United Air Lines Inc. Pass-Through Certificates, Series 95-A1, 9.02%,
04/19/12
*Please Note: "U.S. Treasury Notes" is a grouping of all U.S. Treasury Note
issues held in the portfolio as of May 28, 1999.
Westcore Intermediate-Term Bond Fund
Sector Profile as a Percent of Net Assets
for May 28, 1999
<TABLE>
<S> <C>
FINANCIAL 27.96%
ASSET-BACKED SECURITIES, COLLATERALIZED MORTGAGE OBLIGATIONS & MORTGAGE-BACKED SECURITIES 22.13%
INDUSTRIAL 22.04%
U.S. GOVERNMENT TREASURIES 12.49%
TRANSPORTATION 8.70%
OTHER 4.54%
UTILITIES 2.14%
</TABLE>
Comparison of Change in Value of $10,000 Investment in
Westcore Intermediate-Term Bond Fund, the Lehman Brothers
Intermediate-Term Government/Corporate Bond Index and
Intermediate-Term Bond Category Average
[GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Jun-88 May-89 May-90 May-91 May-92 May-93
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
WESTCORE INTERMEDIATE-TERM BOND FUND $10,000 $10,853 $11,714 $12,686 $14,258 $15,991
LEHMAN BROTHERS INTERMEDIATE-TERM GOVERNMENT/CORPORATE
BOND INDEX $10,000 $10,974 $11,979 $13,417 $15,106 $16,893
INTERMEDIATE-TERM BOND CATEGORY AVERAGE $10,000 $10,970 $11,678 $12,960 $14,569 $16,261
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
May-94 May-95 May-96 May-97 May-98 May-99
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
WESTCORE INTERMEDIATE-TERM BOND FUND $16,007 $17,435 $18,178 $19,529 $21,263 $22,015
LEHMAN BROTHERS INTERMEDIATE-TERM GOVERNMENT/CORPORATE
BOND INDEX $17,138 $19,193 $20,135 $21,804 $23,882 $24,892
INTERMEDIATE-TERM BOND CATEGORY AVERAGE $16,350 $18,047 $18,742 $20,202 $22,231 $22,886
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Please Note: Performance calculations are as of the end of May each year. Past
performance is not indicative of future results. Fund inception date is 6/1/88.
- -------------------------------------------------------------------------------
Source: Morningstar Although data are gathered from reliable sources,
Morningstar cannot guarantee completeness and accuracy.
- -------------------------------------------------------------------------------
The Lehman Brothers Intermediate-Term Government/Corporate Bond Index is an
unmanaged index that 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-term indices include bonds with
maturities up to ten years.
Morningstar Category averages reflect the performance of mutual funds with the
same Morningstar Category. The Morningstar Category identifies funds based on
their actual investment styles as measured by their underlying portfolio
holdings (portfolio statistics and composition over the past three years). As of
May 28, 1999 the Intermediate-Term Bond Category included 534 mutual funds.
15
<PAGE>
- -------------------------------------------------------------------------------
WESTCORE FUNDS MANAGER'S OVERVIEW ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
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.
[PHOTO]
/s/ Thomas B. Stevens
Thomas B. Stevens, CFA
Portfolio Manager, Westcore
Colorado Tax-Exempt Fund
Q: How did the Fund perform?
A: For the fiscal year ending May 28, 1999, Westcore Colorado Tax-Exempt
Fund's total return was 3.80%. In comparison, the unmanaged Lehman Brothers
10-Year Municipal Bond Index was 4.61%.
As of May 28, 1999, the Fund's 30-Day SEC yield was 3.83%*. For taxpayers
in a combined Federal and Colorado income tax bracket of 33%, that's equivalent
to a taxable yield of 5.59%*.
Q: Describe the municipal bond environment over the past year.
A: While the U.S. Treasury market has been extremely volatile, municipal bond
prices and yields have remained relatively steady. Last fall, when the global
demand for Treasury securities was surging, municipal bonds were actually
yielding more than Treasury bonds. In the past few months, as Treasury bond
yields have risen, tax-free yields returned to a more normal relationship to
taxable Treasury securities, but still continued to remain attractive.
The municipal market is largely governed by the law of supply and demand,
which is often seasonal in nature. As supply diminishes, upward pressure is
exerted on prices and yields fall. For example, after the state-wide bond
elections passed last November, there was a flood of new issues in Colorado, as
many as four per day. By May 1999, the supply was reduced to one new issue per
week, thus causing municipal bond prices to stabilize in a period when Treasury
bond prices were falling.
Q: What factors affected your performance?
A: Buying high-coupon premium bonds helped our performance, particularly in
the last few months, because these bonds hold up best in a rising interest rate
environment. We look for bonds with good call protection, which means that the
issuer cannot retire the bond until many years in the future. In addition, we
continued to emphasize the highest quality bonds, which is advantageous in a
declining market. Another positive factor: our strategy of keeping a moderate
maturity, which also tends to reduce market fluctuations during a period of
interest rate volatility.
Q: Describe your investment process.
A: Our fund emphasizes basic public purpose bonds such as water, sewer,
school, fire, jail, electric, city hall, etc. We stick to bonds that we believe
have little credit risk. Although we rigorously examine the underlying
creditworthiness of a bond, a high proportion of the portfolio is insured,
approximately 75% as of May 31, 1999. We believe that the extra yield currently
available on lower quality bonds does not justify the extra credit risk.
WESTCORE COLORADO TAX-EXEMPT FUND
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
- ------------------------------------------------------------
Since
incep.
Period Ended 1 Year 5 Year 10 Year 6/1/91
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
5/31/99 3.80% 5.73% N/A 6.29%
- ------------------------------------------------------------
6/30/99 1.81% 5.48% N/A 6.01%
- ------------------------------------------------------------
</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 BE LOWER. 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.
16
<PAGE>
For example, we recently purchased "open space" bonds issued by Jefferson
County, the largest county in the state. Open space is a public purpose bond
designed for parks, recreation areas and trails. The bond is insured by FGIC, a
unit of General Electric Co. This 5% coupon bond, which matures in 2012, will be
repaid by sales tax revenues. The bond cannot be called by the issuer until
2009.
Q: What is your outlook for the Fund?
A: Our outlook for the Fund and the Colorado municipal bond market is very
positive. Colorado continues to enjoy strong population growth. Unlike the early
1980s when we were heavily dependent on the energy industry, the current economy
is much more diversified in such fields as telecommunications, technology and
tourism. As more high net worth individuals move to Colorado, the demand for
municipal bonds will increase. In addition, the supply of securities will grow
to fund schools, roads, sewers and other public works.
* The 30-Day yields for the Westcore Funds are computed in accordance with SEC
Guidelines. Quotations of yield reflect all fee waivers and/or expense
reimbursements. Without the absorption of these fee waivers and/or expense
reimbursements, the figures quoted would have been 3.21% and 4.69% for the
tax-equivalent yield.
Westcore Colorado Tax-Exempt Fund
Top 10 Municipal Bond Holdings as of May 28, 1999
- - Summit County School District Re-1, 6.55%, 12/01/09, Prerefunded 12/01/04 @
100.00, FGIC
- - Arapahoe County School District 6, 5.00%, 12/01/07
- - Poudre Valley Hospital District, Larimer County, 5.375%, 11/15/07, Optional
11/15/03 @ 100.00
- - Boulder & Gilpin Counties, Boulder Valley School District Re-2, 5.00%,
12/01/11, Optional 12/01/07 @ 100.00, FGIC
- - Eagle, Garfield & Routt Counties School District Re-50J, 4.40%, 12/01/10,
Optional 12/01/09 @ 101.00, FGIC
- - Boulder County Open Space Sales & Use Tax, 5.75%, 12/15/04, FGIC
- - Jefferson County School District R-1, 5.90%, 12/15/04, Prerefunded 12/15/02 @
101.00, AMBAC
- - Arapahoe County School District 5, 5.50%, 12/15/06
- - Platte River Power Authority, Series DD, 5.75%, 06/01/04, MBIA
- - Weld County, Certificate of Participation Correctional Facilities Lease
Purchase Agreement, 5.35%, 08/01/10, Optional anytime @ 100.00, MBIA
Westcore Colorado Tax-Exempt Fund
Sector Profile as a Percent of Net Assets
for May 28, 1999
[GRAPH]
<TABLE>
<S> <C>
GENERAL OBLIGATION BONDS 64.06%
REVENUE BONDS 26.86%
CERTIFICATES OF PARTICIPATION 4.80%
OTHER 4.28%
</TABLE>
Comparison of Change in Value of $10,000 Investment in Westcore Colorado
Tax-Exempt Fund, the Lehman Brothers 10-Year Municipal Bond Index and Muni
Single State Intermediate Category Average
[GRAPH]
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Jun-91 May-92 May-93 May-94 May-95
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
WESTCORE COLORADO TAX-EXEMPT FUND $10,000 $10,835 $11,948 $12,332 $13,217
LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX $10,000 $10,930 $12,277 $12,698 $13,839
MUNI SINGLE STATE INTERMEDIATE CATEGORY AVERAGE $10,000 $10,876 $12,063 $12,335 $13,221
<CAPTION>
- --------------------------------------------------------------------------------------------
May-96 May-97 May-98 May-99
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WESTCORE COLORADO TAX-EXEMPT FUND $13,741 $14,628 $15,698 $16,295
LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX $14,494 $15,678 $16,401 $17,157
MUNI SINGLE STATE INTERMEDIATE CATEGORY AVERAGE $13,702 $14,601 $15,692 $16,242
</TABLE>
Please Note: Performance calculations are as of the end of May each year. Past
performance is not indicative of future results. Fund inception date is 6/1/91.
- -------------------------------------------------------------------------------
Fund and Category Data Source: Morningstar Index Data Source: Lehman Brothers
Although data are gathered from reliable sources, Morningstar cannot guarantee
completeness and accuracy.
- -------------------------------------------------------------------------------
The Lehman Brothers 10-Year Municipal Bond Index is an unmanaged index that
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.
Morningstar Category averages reflect the performance of mutual funds with the
same Morningstar Category. The Morningstar Category identifies funds based on
their actual investment styles as measured by their underlying portfolio
holdings (portfolio statistics and composition over the past three years). As of
May 28, 1999 the Municipal Single State Intermediate Category included 715
mutual funds.
17
<PAGE>
STATEMENTS OF INVESTMENTS Westcore Funds Annual Report May 28, 1999
WESTCORE MIDCO GROWTH FUND
May 28, 1999
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
COMMON STOCKS 87.15%
- -------------------------------------------------------------------------------
BASIC MATERIALS 2.70%
- -------------------------------------------------------------------------------
CHEMICALS 0.94%
- -------------------------------------------------------------------------------
26,000 Avery Dennison Corp. $ 1,556,750
24,800 Ecolab Inc. 1,054,000
------------
2,610,750
DISTRIBUTION 0.52%
- -------------------------------------------------------------------------------
28,200 Fastenal Co. 1,445,250
------------
PAPER & PACKAGING 0.76%
- -------------------------------------------------------------------------------
16,600 Ball Corp. 808,212
21,000 Sealed Air Corp.** 1,304,625
------------
2,112,837
------------
TRANSPORTATION 0.48%
- -------------------------------------------------------------------------------
33,800 Continental Airlines Inc. -
Class B** 1,326,650
------------
TOTAL BASIC MATERIALS
(Cost $5,415,367) 7,495,487
------------
CAPITAL GOODS 3.21%
- -------------------------------------------------------------------------------
AEROSPACE & DEFENSE 0.75%
- -------------------------------------------------------------------------------
38,000 General Motors Corp. -
Class H** 2,085,250
------------
OFFICE PRODUCTS 0.99%
- -------------------------------------------------------------------------------
131,000 Office Depot Inc.** 2,734,625
------------
OTHER CAPITAL GOODS 1.47%
- -------------------------------------------------------------------------------
41,600 Corning Inc. 2,272,400
27,600 MSC Industrial Direct Co. -
Class A** 520,950
54,300 Rental Service Corp.** 1,296,413
------------
4,089,763
------------
TOTAL CAPITAL GOODS
(Cost $8,388,012) 8,909,638
------------
CONSUMER CYCLICALS 21.93%
- -------------------------------------------------------------------------------
AUTOMOTIVE 0.28%
- -------------------------------------------------------------------------------
26,300 Gentex Corp. ** $ 789,823
------------
BUILDING RELATED 0.43%
- -------------------------------------------------------------------------------
41,700 Masco Corp. 1,191,056
------------
CONSUMER PRODUCTS 0.44%
- -------------------------------------------------------------------------------
45,900 Mattel Inc. 1,213,481
------------
CONSUMER SOFT GOODS 0.76%
- -------------------------------------------------------------------------------
68,900 Jones Apparel Group Inc.** 2,118,675
------------
HOTELS - RESTAURANTS - LEISURE 1.32%
- -------------------------------------------------------------------------------
79,500 Hilton Hotels Corp. 1,093,125
67,300 Marriott International Inc. 2,561,606
------------
3,654,731
------------
MEDIA - PUBLISHING - CABLE 9.54%
- -------------------------------------------------------------------------------
26,700 Adelphia Communications -
Class A** 2,015,850
61,000 Century Communications -
Class A** 3,248,250
43,200 Chancellor Media Corp.** 2,195,100
99,700 Infinity Broadcasting
Corp. - Class A** 2,548,581
43,300 King World
Productions Inc.** 1,445,138
63,600 Readers Digest Assn -
Class A 2,329,350
85,800 TV Guide Inc. - Class A** 3,442,725
149,820 USA Networks Inc.** 5,992,800
95,100 Westwood One Inc.** 3,304,725
------------
26,522,519
------------
RETAIL 9.16%
- -------------------------------------------------------------------------------
34,642 Abercrombie & Fitch Co. -
Class A** 2,914,258
20,900 Ames Dept. Stores Inc.** 856,900
69,800 Bed Bath & Beyond Inc.** 2,386,287
18,000 Best Buy Co. Inc.** 819,000
22,900 Circuit City Stores-Circuit 1,644,506
58,856 Consolidated Stores Corp.** 2,023,175
154,600 Family Dollar Stores 3,449,512
50,400 Kohls Corp.** 3,436,650
50,200 Lowe's Companies 2,607,263
30,500 Nordstrom Inc. 1,082,750
16,800 Tandy Corp. 1,386,000
37,800 TJX Companies Inc. 1,134,000
44,800 Zale Corp.** 1,727,600
------------
25,467,901
------------
TOTAL CONSUMER CYCLICALS
(Cost $38,516,795) 60,958,186
------------
CONSUMER STAPLES 3.03%
- -------------------------------------------------------------------------------
FOOD, BEVERAGES & TOBACCO 0.44%
- -------------------------------------------------------------------------------
52,800 Pepsi Bottling Group Inc. 1,224,300
------------
HOUSEHOLD PRODUCTS 1.14%
- -------------------------------------------------------------------------------
19,100 Clorox Co. 1,927,906
13,700 Estee Lauder Companies
Inc. - Class A 1,250,125
------------
3,178,031
------------
RETAIL FOOD & DRUG 1.45%
- -------------------------------------------------------------------------------
59,000 U.S. Foodservice** 2,625,500
33,600 Whole Foods Market Inc.** 1,394,400
------------
4,019,900
------------
TOTAL CONSUMER STAPLES
(Cost $7,945,647) 8,422,231
------------
CREDIT SENSITIVE 15.29%
- -------------------------------------------------------------------------------
BANKS 1.82%
- -------------------------------------------------------------------------------
47,400 Amsouth Bancorporation 1,344,975
91,700 Firstar Corp. 2,642,106
16,600 Zions Bancorporation 1,058,250
------------
5,045,331
------------
18
<PAGE>
WESTCORE MIDCO GROWTH FUND
May 28, 1999 (CONTINUED)
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
FINANCIAL SERVICES 6.80%
- -------------------------------------------------------------------------------
19,500 Capital One Financial
Corp. $ 2,938,406
66,800 Schwab (Charles) Corp. 7,068,275
25,000 FINOVA Group Inc. 1,195,313
48,300 Kansas City Southern
Industries Inc. 2,716,875
39,200 Knight/Trimark Group Inc. -
Class A** 2,195,200
29,050 Providian Financial Corp. 2,786,984
------------
18,901,053
------------
INSURANCE 2.89%
- -------------------------------------------------------------------------------
28,000 Ambac Financial Group Inc. 1,632,750
60,523 Conseco Inc. 1,849,734
17,500 Hartford Life Inc. - Class A 831,250
65,966 Mutual Risk Management Ltd. 2,407,759
30,500 Nationwide Financial Services 1,317,219
------------
8,038,712
------------
UTILITIES - ELECTRIC 1.33%
- -------------------------------------------------------------------------------
74,094 AES Corp.** 3,686,176
Utilities - Telephone 2.45%
103,800 Frontier Corp. 5,462,475
32,000 Qwest Communications
International** 1,358,000
------------
6,820,475
------------
TOTAL CREDIT SENSITIVE
(Cost $28,013,647) 42,491,747
------------
ENERGY 3.37%
- -------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES 2.72%
- -------------------------------------------------------------------------------
100,300 BJ Services Co.** 2,764,519
135,400 Nabors Industries Inc.** 2,708,000
62,400 Noble Drilling Corp.** 1,131,000
102,404 R&B Falcon Corp.** 947,237
------------
7,550,756
------------
ENERGY PRODUCERS 0.65%
- -------------------------------------------------------------------------------
31,500 Anadarko Petroleum Corp. 1,181,250
11,200 Vastar Resources Inc. 616,000
------------
1,797,250
------------
TOTAL ENERGY
(Cost $8,507,519) 9,348,006
------------
HEALTHCARE 8.12%
- -------------------------------------------------------------------------------
BIOTECHNOLOGY 0.88%
- -------------------------------------------------------------------------------
15,400 Biogen Inc.** 1,680,525
12,200 MedImmune Inc.** 776,225
------------
2,456,750
------------
DRUGS & HEALTHCARE PRODUCTS 5.67%
- -------------------------------------------------------------------------------
57,200 Becton Dickinson & Co. 2,216,500
93,300 Forest Laboratories -
Class A** 4,443,413
21,600 Guidant Corp. 1,080,000
8,100 Lincare Holdings Inc.** 199,463
9,550 PE Corp. - Celera
Genomics Group** 162,350
18,900 PE Corp. - PE Biosystems
Group 2,110,894
166,400 Sybron International Corp.** 4,180,800
35,764 Watson Pharmaceutical Inc.** 1,370,208
------------
15,763,628
------------
HEALTHCARE SERVICES 1.57%
- -------------------------------------------------------------------------------
31,500 HEALTHSOUTH Corp.** 421,312
49,600 IMS Health Inc. 1,221,400
90,800 Orthodontic Centers
of America Inc.** 1,095,275
6,000 Pediatrix Medical
Group Inc.** 135,375
18,000 Wellpoint Health
Networks** 1,483,875
------------
4,357,237
------------
TOTAL HEALTHCARE
(Cost $16,996,239) 22,577,615
------------
SERVICES 4.89%
- -------------------------------------------------------------------------------
BUSINESS SERVICES 4.89%
- -------------------------------------------------------------------------------
84,533 ACNielsen Corp.** 2,382,774
34,730 Allied Waste Industries Inc.** 646,846
57,300 Interim Services Inc.** 1,249,856
41,800 Paychex Inc. 1,238,325
56,500 Republic Services Inc. -
Class A** 1,327,750
22,000 Staff Leasing Inc.** 248,875
118,391 Waste Management Inc. 6,259,924
20,800 Wilmar Industries Inc.** 236,600
------------
13,590,950
------------
TOTAL SERVICES
(Cost $11,794,449) 13,590,950
------------
TECHNOLOGY 24.61%
- -------------------------------------------------------------------------------
COMPUTER HARDWARE 0.59%
- -------------------------------------------------------------------------------
1,300 Brocade Communications
Systems Inc.** 83,850
11,500 Lexmark International
Group Inc. - Class A** 1,565,438
------------
1,649,288
------------
COMPUTER SERVICES & SOFTWARE 9.45%
- -------------------------------------------------------------------------------
12,200 BroadVision Inc.** 634,400
96,500 Cadence Design
Systems Inc.** 1,242,438
102,500 CBT Group PLC-Sponsored
ADR** 1,563,125
39,900 Citrix Systems Inc.** 1,972,556
26,300 Compuware Corp.** 816,944
9,000 eBay Inc.** 1,594,687
14,100 Electronic Arts Inc.** 690,019
76,450 Fiserv Inc.** 2,866,875
23,300 Intuit Inc.** 1,896,038
31,300 Keane Inc.** 907,700
41,400 Legato Systems Inc.** 2,266,650
700 Net Perceptions Inc.** 11,900
28,400 PSINet Inc.** 1,263,800
19,700 RealNetworks Inc.** 1,396,238
19
<PAGE>
WESTCORE MIDCO GROWTH FUND
May 28, 1999 (CONTINUED)
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
9,400 Siebel Systems Inc.** $ 427,994
35,200 Synopsys Inc.** 1,562,000
5,100 VeriSign Inc.** 604,350
30,700 Yahoo! Inc.** 4,543,600
------------
26,261,314
------------
ELECTRONICS 7.19%
- -------------------------------------------------------------------------------
36,300 Altera Corp.** 1,263,694
87,900 Atmel Corp.** 1,736,025
22,100 Conexant Systems Inc.** 856,375
35,900 Jabil Circuit Inc.** 1,732,175
13,900 Kla-Tencor Corp.** 632,450
32,000 Linear Technology Corp. 1,696,000
20,700 Maxim Integrated Products** 1,106,156
38,000 Microchip Technology Inc.** 1,667,250
18,400 Novellus Systems Inc.** 898,150
9,900 Optical Coating Laboratory 642,263
57,500 SanDisk Corp.** 1,782,500
53,900 Solectron Corp.** 2,951,025
21,200 Vitesse Semiconductor Corp.** 1,164,675
42,000 Xilinx Inc.** 1,866,375
------------
19,995,113
------------
NETWORKING 1.15%
- -------------------------------------------------------------------------------
13,900 Ascend Communications Inc.** 1,288,356
80,800 Novell Inc.** 1,898,800
------------
3,187,156
------------
TELECOMMUNICATIONS 6.23%
- -------------------------------------------------------------------------------
50,800 ADC Telecommunications
Inc.** 2,482,850
39,100 Ciena Corp.** 1,124,125
17,100 Comverse Technology Inc.** 1,155,319
26,900 Concentric Network Corp.** 869,206
14,900 Mindspring Enterprises Inc.** 1,102,600
43,700 Newbridge Networks Corp.** 1,207,212
39,200 OneMain.com Inc.** 818,300
71,300 Pacific Gateway
Exchange Inc.** 2,807,438
55,000 PairGain Technologies Inc.** 684,063
29,700 Tellabs Inc.** $ 1,737,450
24,800 Uniphase Corp.** 3,323,200
------------
17,311,763
------------
TOTAL TECHNOLOGY
(Cost $48,849,801) 68,404,634
------------
TOTAL COMMON STOCKS
(Cost $174,427,476) 242,198,494
------------
STOCK RIGHTS 0.00%
- -------------------------------------------------------------------------------
85 United States Surgical
Corp. Value Stock Rights,
06/23/00 0
------------
TOTAL STOCK RIGHTS
(Cost $0) 0
------------
MUTUAL FUNDS 2.04%
- -------------------------------------------------------------------------------
5,672,016 Dreyfus Cash Management
Fund 5,672,016
------------
TOTAL MUTUAL FUNDS
(Cost $5,672,016) 5,672,016
------------
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED 18.11%
- -------------------------------------------------------------------------------
MUTUAL FUNDS 18.11%
- -------------------------------------------------------------------------------
12,006,380 AIM Liquid Assets Fund 12,006,380
1,744,400 AIM Prime Portfolio Fund 1,744,400
36,576,854 Mitchell Hutchins Private
Money Market Fund(4) 36,576,855
------------
50,327,635
------------
TOTAL MUTUAL FUNDS
(Cost $50,327,635) 50,327,635
------------
TOTAL INVESTMENTS OF CASH
COLLATERAL FOR SECURITIES
LOANED
(Cost $50,327,635) 50,327,635
------------
TOTAL INVESTMENTS
(Cost $230,427,126) 107.30% $298,198,145
Liabilities in Excess
of Other Assets (7.30%) (20,273,971)
-------------------------
NET ASSETS 100.00% $277,924,174
-------------------------
-------------------------
See Notes to Statements of Investments.
</TABLE>
20
<PAGE>
WESTCORE GROWTH AND INCOME FUND
May 28, 1999
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
COMMON STOCKS 96.50%
- -------------------------------------------------------------------------------
BASIC MATERIALS 1.06%
- -------------------------------------------------------------------------------
CHEMICALS 1.06%
- -------------------------------------------------------------------------------
3,200 Ecolab Inc. $ 136,000
------------
TOTAL BASIC MATERIALS
(Cost $95,186) 136,000
------------
CAPITAL GOODS 4.26%
- -------------------------------------------------------------------------------
AEROSPACE & DEFENSE 1.20%
- -------------------------------------------------------------------------------
2,800 General Motors Corp. -
Class H** 153,650
------------
ELECTRICAL EQUIPMENT 2.55%
- -------------------------------------------------------------------------------
3,200 General Electric Co. 325,400
------------
OTHER - CAPITAL GOODS 0.51%
- -------------------------------------------------------------------------------
1,200 Corning Inc. 65,550
------------
TOTAL CAPITAL GOODS
(Cost $364,551) 544,600
------------
CONSUMER CYCLICALS 13.22%
- -------------------------------------------------------------------------------
AUTOMOTIVE 0.71%
- -------------------------------------------------------------------------------
1,600 Ford Motor Co. 91,300
------------
BUILDING RELATED 0.92%
- -------------------------------------------------------------------------------
4,100 Masco Corp. 117,106
------------
MEDIA - PUBLISHING - CABLE 4.34%
- -------------------------------------------------------------------------------
2,000 Adelphia Communications -
Class A** 151,000
3,500 CBS Corp.** 146,125
3,700 Readers Digest Assn - Class A 135,513
1,800 Time Warner Inc. 122,512
------------
555,150
------------
RETAIL 7.25%
- -------------------------------------------------------------------------------
9,800 Family Dollar Stores 218,663
4,400 Home Depot Inc. 250,250
4,800 Lowe's Companies 249,300
4,900 Wal-Mart Stores, Inc. 208,862
------------
927,075
------------
TOTAL CONSUMER CYCLICALS
(Cost $1,024,684) 1,690,631
------------
CONSUMER STAPLES 5.13%
- -------------------------------------------------------------------------------
FOOD, BEVERAGES & TOBACCO 1.22%
- -------------------------------------------------------------------------------
3,800 Pepsi Bottling Group Inc. 88,112
1,900 Pepsico Inc. 68,044
------------
156,156
------------
HOUSEHOLD PRODUCTS 3.91%
- -------------------------------------------------------------------------------
500 Clorox Co. 50,469
1,400 Colgate-Palmolive Co. 139,825
1,100 Estee Lauder Companies
Inc. - Class A 100,375
4,100 Gillette Co. 209,100
------------
499,769
------------
TOTAL CONSUMER STAPLES
(Cost $445,812) 655,925
------------
CREDIT SENSITIVE 33.82%
- -------------------------------------------------------------------------------
BANKS 4.37%
- -------------------------------------------------------------------------------
2,200 Bank One Corp. 124,437
3,900 Firstar Corp. 112,369
4,700 Wells Fargo Co. 188,000
2,100 Zions Bancorporation 133,875
------------
558,681
------------
FINANCIAL SERVICES 7.07%
- -------------------------------------------------------------------------------
1,650 Schwab (Charles) Corp. 174,591
8,061 Charter One Financial Inc. 229,235
2,900 Household International Inc. 125,788
2,900 Kansas City Southern
Industries 163,125
7,662 MBNA Corp. 211,663
------------
904,402
------------
INSURANCE 5.26%
- -------------------------------------------------------------------------------
1,100 American International
Group 125,744
3,900 Conseco Inc. 119,194
2,600 Hartford Life Inc. - Class A 123,500
4,900 Mutual Risk
Management Ltd. 178,850
2,900 Nationwide Financial Services -
Class A 125,244
------------
672,532
------------
UTILITIES - ELECTRIC 4.00%
- -------------------------------------------------------------------------------
10,292 AES Corp.** 512,027
UTILITIES - GAS 3.51%
- -------------------------------------------------------------------------------
3,600 Enron Corp. 256,950
3,700 Williams Cos. Inc. 191,706
------------
448,656
------------
UTILITIES - TELEPHONE 9.61%
- -------------------------------------------------------------------------------
3,870 AT&T Corp. 214,785
5,800 Cincinnati Bell Inc. 140,287
5,600 Frontier Corp. 294,700
3,562 MCI WorldCom Inc.** 307,668
3,200 Qwest Communications
International** 135,800
1,200 Sprint Corp. (FON Group) 135,300
------------
1,228,540
------------
TOTAL CREDIT SENSITIVE
(Cost $2,366,868) 4,324,838
------------
ENERGY 4.09%
- -------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES 1.85%
- -------------------------------------------------------------------------------
3,915 Schlumberger Ltd. 235,634
------------
21
<PAGE>
WESTCORE GROWTH AND INCOME FUND
May 28, 1999 (CONTINUED)
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
ENERGY PRODUCERS 2.24%
- -------------------------------------------------------------------------------
3,600 Anadarko Petroleum Corp. $ 135,000
1,500 Mobil Corp. 151,875
------------
286,875
------------
TOTAL ENERGY
(Cost $355,885) 522,509
------------
HEALTHCARE 10.27%
- -------------------------------------------------------------------------------
DRUGS & HEALTHCARE PRODUCTS 9.54%
- -------------------------------------------------------------------------------
3,400 American Home
Products Corp. 195,925
1,200 Guidant Corp. 60,000
1,500 Johnson & Johnson 138,937
1,900 Medtronic Inc. 134,900
2,900 Merck & Co., Inc. 195,750
1,600 Pfizer Inc. 171,200
5,800 Schering-Plough Corp. 261,362
1,000 Warner-Lambert Co. 62,000
------------
1,220,074
------------
HEALTHCARE SERVICES 0.73%
- -------------------------------------------------------------------------------
3,800 IMS Health Inc. 93,575
------------
TOTAL HEALTHCARE
(Cost $1,007,941) 1,313,649
------------
SERVICES 6.46%
- -------------------------------------------------------------------------------
BUSINESS SERVICES 5.49%
- -------------------------------------------------------------------------------
6,000 Omnicom Group 420,000
4,050 Paychex Inc. 119,981
6,900 Republic Services Inc. -
Class A** 162,150
------------
702,131
------------
CONSUMER SERVICES 0.97%
- -------------------------------------------------------------------------------
6,729 Cendant Corp.** 124,066
------------
TOTAL SERVICES
(Cost $413,276) 826,197
------------
TECHNOLOGY 18.19%
- -------------------------------------------------------------------------------
COMPUTER HARDWARE 2.06%
- -------------------------------------------------------------------------------
2,100 Compaq Computer Corp. 49,744
1,500 Dell Computer Corp.** 51,656
1,400 International Business
Machines Corp. 162,838
------------
264,238
------------
COMPUTER SERVICES & SOFTWARE 8.27%
- -------------------------------------------------------------------------------
700 America Online Inc.** 83,562
2,200 Computer Sciences Corp.** 142,313
3,400 First Data Corp. 152,787
4,200 Fiserv Inc.** 157,500
3,200 Microsoft Corp.** 258,200
10,600 Oracle Corp.** 263,013
------------
1,057,375
------------
ELECTRONICS 4.38%
- -------------------------------------------------------------------------------
4,200 Intel Corp. 227,062
3,400 Linear Technology Corp. 180,200
1,400 Texas Instruments Inc. 153,125
------------
560,387
------------
NETWORKING 1.11%
- -------------------------------------------------------------------------------
1,300 Cisco Systems Inc.** 141,537
Telecommunications 2.37%
3,600 Lucent Technologies Inc. 204,750
1,000 Nokia OYJ - ADR 71,000
600 Sprint Corp. (PCS Group)** 27,000
------------
302,750
------------
TOTAL TECHNOLOGY
(Cost $1,989,076) 2,326,287
------------
TOTAL COMMON STOCKS
(Cost $8,063,279) 12,340,636
------------
CONVERTIBLE DEBENTURES 0.68%
- -------------------------------------------------------------------------------
ENERGY 0.68%
- -------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES 0.68%
- -------------------------------------------------------------------------------
$75,000 Nabors Industries Inc.,
5.00%, 05/15/06 $ 87,375
------------
TOTAL ENERGY
(Cost $89,707) 87,375
------------
TOTAL CONVERTIBLE DEBENTURES
(Cost $89,707) 87,375
------------
MUTUAL FUNDS 2.95%
- -------------------------------------------------------------------------------
376,913 Dreyfus Cash Management
Fund 376,913
------------
TOTAL MUTUAL FUNDS
(Cost $376,913) 376,913
------------
TOTAL INVESTMENTS
(Cost $8,529,899) 100.13% $ 12,804,924
Liabilities in Excess
of Other Assets (0.13%) (16,159)
-------------------------
NET ASSETS 100.00% $ 12,788,765
-------------------------
-------------------------
</TABLE>
See Notes to Statements of Investments.
22
<PAGE>
WESTCORE BLUE CHIP FUND
May 28, 1999
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
COMMON STOCKS 96.75%
- -------------------------------------------------------------------------------
BASIC MATERIALS 6.38%
- -------------------------------------------------------------------------------
MULTI-INDUSTRY 3.44%
- -------------------------------------------------------------------------------
27,300 Tyco International Ltd. $ 2,385,337
------------
PAPER & PACKAGING 1.90%
- -------------------------------------------------------------------------------
27,100 Ball Corp. 1,319,431
------------
TRANSPORTATION 1.04%
- -------------------------------------------------------------------------------
12,600 Union Pacific Corp. 718,987
------------
TOTAL BASIC MATERIALS
(Cost $3,558,521 ) 4,423,755
------------
CAPITAL GOODS 7.10%
- -------------------------------------------------------------------------------
AEROSPACE & DEFENSE 4.07%
- -------------------------------------------------------------------------------
19,700 General Dynamics Corp. 1,295,275
24,600 United Technologies Corp. 1,526,738
------------
2,822,013
------------
ENGINEERING & CONSTRUCTION 3.03%
- -------------------------------------------------------------------------------
33,000 Ingersoll-Rand Co. 2,101,688
------------
TOTAL CAPITAL GOODS
(Cost $3,231,291) 4,923,701
------------
CONSUMER CYCLICALS 16.21%
- -------------------------------------------------------------------------------
AUTOMOTIVE 2.24%
- -------------------------------------------------------------------------------
13,140 Delphi Automotive Systems 257,870
18,800 General Motors Corp. 1,297,200
------------
1,555,070
------------
CONSUMER PRODUCTS 2.16%
- -------------------------------------------------------------------------------
29,300 Harley-Davidson Inc. 1,496,131
------------
HOTELS - RESTAURANTS - LEISURE 2.97%
- -------------------------------------------------------------------------------
50,300 Carnival Corp. 2,062,300
------------
MEDIA - PUBLISHING - CABLE 2.74%
- -------------------------------------------------------------------------------
13,600 Adelphia Communications -
Class A** 1,026,800
22,600 Viacom Inc. - Class B** 870,100
------------
1,896,900
------------
RETAIL 6.10%
- -------------------------------------------------------------------------------
31,100 Dayton-Hudson Corp. 1,959,300
15,200 Intimate Brands Inc. - Class A 787,550
96,700 K Mart Corp.** 1,486,763
------------
4,233,613
------------
TOTAL CONSUMER CYCLICALS
(Cost $8,512,985) 11,244,014
------------
CONSUMER STAPLES 7.43%
- -------------------------------------------------------------------------------
RETAIL FOOD & DRUG 7.43%
- -------------------------------------------------------------------------------
30,000 American Stores Co. 990,000
27,900 CVS Corp. 1,283,400
28,700 Kroger Co.** 1,680,744
49,500 SuperValu Inc. 1,200,375
------------
5,154,519
------------
TOTAL CONSUMER STAPLES
(Cost $4,125,883) 5,154,519
------------
CREDIT SENSITIVE 29.84%
- -------------------------------------------------------------------------------
FINANCIAL SERVICES 8.90%
- -------------------------------------------------------------------------------
19,500 CIT Group Inc. - Class A 565,500
17,300 Golden West Financial Corp. 1,641,338
8,000 Golman Sachs Group Inc.** 543,500
20,000 Household International Inc. 867,500
22,200 Lehman Brothers
Holdings Inc. 1,212,675
13,900 Morgan Stanley Dean
Witter & Co. 1,341,350
------------
6,171,863
------------
INSURANCE 2.75%
- -------------------------------------------------------------------------------
27,200 Equitable Companies Inc. 1,909,100
------------
UTILITIES - ELECTRIC 4.31%
- -------------------------------------------------------------------------------
18,100 DTE Energy Co. 788,481
27,750 Edison International 763,125
32,930 GPU Inc. 1,434,513
------------
2,986,119
------------
UTILITIES - TELEPHONE 13.88%
- -------------------------------------------------------------------------------
36,500 ALLTEL Corp. 2,616,594
30,000 AT&T Corp. 1,665,000
40,600 BellSouth Corp. 1,915,813
22,360 Sprint Corp. (FON Group) 2,521,090
16,800 US West Inc. 908,250
------------
9,626,747
------------
TOTAL CREDIT SENSITIVE
(Cost $16,327,176 ) 20,693,829
------------
HEALTHCARE 6.55%
DRUGS & HEALTHCARE PRODUCTS 6.55%
- -------------------------------------------------------------------------------
7,800 Allergan Inc. 725,400
31,160 Bristol-Myers Squibb Co. 2,138,355
37,300 Schering-Plough Corp. 1,680,831
------------
4,544,586
------------
TOTAL HEALTHCARE
(Cost $2,047,120) 4,544,586
------------
SERVICES 5.23%
- -------------------------------------------------------------------------------
BUSINESS SERVICES 5.23%
- -------------------------------------------------------------------------------
19,400 Dun & Bradstreet Corp. 679,000
27,100 Hertz Corp. - Class A 1,488,806
27,600 Waste Management Inc. 1,459,350
------------
3,627,156
------------
TOTAL SERVICES
(Cost $2,985,136) 3,627,156
------------
23
<PAGE>
WESTCORE BLUE CHIP FUND
May 28, 1999 (CONTINUED)
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
TECHNOLOGY 18.01%
- -------------------------------------------------------------------------------
COMPUTER HARDWARE 10.19%
- -------------------------------------------------------------------------------
22,700 Apple Computer Inc.** $ 1,000,219
21,400 International Business
Machines Corp. 2,489,088
36,800 Seagate Technology Inc.** 1,110,900
65,100 UniSys Corp.** 2,469,731
------------
7,069,938
------------
COMPUTER SOFTWARE & SERVICES 1.81%
- -------------------------------------------------------------------------------
16,900 Adobe Systems Inc. 1,252,712
------------
ELECTRONICS 3.05%
- -------------------------------------------------------------------------------
25,500 Motorola Inc. 2,111,719
------------
NETWORKING 2.96%
- -------------------------------------------------------------------------------
87,500 Novell Inc.** 2,056,250
------------
TOTAL TECHNOLOGY
(Cost $7,982,577) 12,490,619
------------
TOTAL COMMON STOCKS
(Cost $48,770,689) 67,102,179
------------
MUTUAL FUNDS 1.34%
- -------------------------------------------------------------------------------
930,975 Dreyfus Cash Management
Fund 930,975
------------
TOTAL MUTUAL FUNDS
(Cost $930,975) 930,975
------------
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED 5.47%
- -------------------------------------------------------------------------------
MUTUAL FUNDS 5.47%
- -------------------------------------------------------------------------------
2,407,400 AIM Liquid Assets Fund 2,407,400
1,383,501 Mitchell Hutchins Private
Money Market Fund(4) 1,383,501
------------
3,790,901
------------
TOTAL MUTUAL FUNDS
(Cost $3,790,901) 3,790,901
------------
TOTAL INVESTMENTS OF CASH
COLLATERAL FOR SECURITIES
LOANED
(Cost $3,790,901) $ 3,790,901
------------
TOTAL INVESTMENTS
(Cost $53,492,565) 103.56% $ 71,824,055
Liabilities in Excess
of Other Assets (3.56%) (2,470,107)
-------------------------
NET ASSETS 100.00% $ 69,353,948
-------------------------
-------------------------
See Notes to Statements of Investments.
</TABLE>
WESTCORE MID-CAP OPPORTUNITY FUND
May 28, 1999
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
COMMON STOCKS 96.41%
- -------------------------------------------------------------------------------
BASIC MATERIALS 7.71%
- -------------------------------------------------------------------------------
METALS 2.81%
- -------------------------------------------------------------------------------
5,350 Bethlehem Steel Corp.** $ 44,472
1,050 USX - U.S. Steel Group Inc. 28,284
------------
72,756
------------
PAPER & PACKAGING 3.21%
- -------------------------------------------------------------------------------
600 Ball Corp. 29,213
700 Boise Cascade Corp. 27,737
300 Georgia-Pacific (Georgia-
Pacific Group) 25,931
------------
82,881
------------
TRANSPORTATION 1.69%
- -------------------------------------------------------------------------------
500 Alaska Air Group Inc.** 20,750
400 Delta Air Lines Inc. 22,950
------------
43,700
------------
TOTAL BASIC MATERIALS
(Cost $222,063) 199,337
------------
CAPITAL GOODS 3.13%
- -------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 1.65%
- -------------------------------------------------------------------------------
450 Honeywell Inc. 42,581
------------
MACHINERY & EQUIPMENT 1.48%
- -------------------------------------------------------------------------------
1,800 Milacron Inc. 38,363
------------
TOTAL CAPITAL GOODS
(Cost $74,681) 80,944
------------
CONSUMER CYCLICALS 22.29%
- -------------------------------------------------------------------------------
AUTOMOTIVE 8.79%
- -------------------------------------------------------------------------------
1,925 Dana Corp. 99,378
1,050 Johnson Controls Inc. 66,216
1,250 Navistar International** 61,719
------------
227,313
------------
24
<PAGE>
WESTCORE MID-CAP OPPORTUNITY FUND
May 28, 1999 (CONTINUED)
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
BUILDING RELATED 2.70%
- -------------------------------------------------------------------------------
575 Centex Corp. $ 21,311
1,450 LaFarge Corp. 48,484
------------
69,795
------------
CONSUMER PRODUCTS 2.04%
- -------------------------------------------------------------------------------
300 Fortune Brands Inc. 12,263
625 Whirlpool Corp. 40,312
------------
52,575
------------
HOTELS - RESTAURANTS - LEISURE 3.60%
- -------------------------------------------------------------------------------
2,950 Darden Restaurants Inc. 62,872
1,400 Harrah's Entertainment Inc.** 30,275
------------
93,147
------------
RETAIL 5.16%
- -------------------------------------------------------------------------------
1,050 AnnTaylor Stores Corp.** 45,347
4,475 K Mart Corp.** 68,803
500 Zale Corp.** 19,281
------------
133,431
------------
TOTAL CONSUMER CYCLICALS
(Cost $463,459) 576,261
------------
CONSUMER STAPLES 7.15%
- -------------------------------------------------------------------------------
FOOD, BEVERAGES & TOBACCO 5.98%
- -------------------------------------------------------------------------------
700 Canandaigua Brands Inc. -
Class A** 34,825
1,300 Earthgrains Co. 30,469
600 RJR Nabisco Holdings Corp. 18,562
3,075 Tyson Foods Inc. - Class A 70,725
------------
154,581
------------
RETAIL FOOD & DRUG 1.17%
- -------------------------------------------------------------------------------
1,250 SuperValu Inc. 30,312
------------
TOTAL CONSUMER STAPLES
(Cost $179,523) 184,893
------------
CREDIT SENSITIVE 28.80%
- -------------------------------------------------------------------------------
BANKS 3.50%
- -------------------------------------------------------------------------------
2,100 Sovereign Bancorp Inc. 27,694
1,700 UnionBanCal Corp. 62,847
------------
90,541
------------
FINANCIAL SERVICES 7.81%
- -------------------------------------------------------------------------------
1,750 CIT Group Inc. - Class A 50,750
2,250 Golden State Bancorp Inc.** 55,266
550 Golden West Financial Corp. 52,181
800 Lehman Brothers
Holdings Inc. 43,700
------------
201,897
------------
INSURANCE 5.31%
- -------------------------------------------------------------------------------
1,000 Allmerica Financial Corp. 58,563
2,575 Conseco Inc. 78,698
------------
137,261
------------
UTILITIES - ELECTRIC 10.79%
- -------------------------------------------------------------------------------
850 Constellation Energy Group Inc. 26,509
825 DTE Energy Co. 35,939
2,600 Energy East Corp. 72,150
1,000 Pinnacle West Capital Corp. 41,875
1,050 Public Service Enterprise
Group 44,034
1,300 Texas Utilities Co. 58,500
------------
279,007
------------
UTILITIES - TELEPHONE 1.39%
- -------------------------------------------------------------------------------
500 ALLTEL Corp. 35,844
------------
TOTAL CREDIT SENSITIVE
(Cost $701,612) 744,550
------------
ENERGY 9.10%
- -------------------------------------------------------------------------------
ENERGY PRODUCERS 5.11%
- -------------------------------------------------------------------------------
1,100 Apache Corp. 39,600
2,400 Coastal Corp. 92,550
------------
132,150
------------
ENERGY EQUIPMENT & SERVICES 3.99%
- -------------------------------------------------------------------------------
1,300 Noble Drilling Corp.** 23,562
2,200 Pride International Inc.** 22,963
1,350 Transocean Offshore Inc. 33,244
1,275 Veritas DGC Inc.** 23,269
------------
103,038
------------
TOTAL ENERGY
(Cost $204,793) 235,188
------------
HEALTHCARE 5.59%
- -------------------------------------------------------------------------------
DRUGS & HEALTHCARE PRODUCTS 0.69%
- -------------------------------------------------------------------------------
700 Mylan Laboratories 17,763
------------
HEALTHCARE SERVICES 4.90%
- -------------------------------------------------------------------------------
4,400 HEALTHSOUTH Corp.** 58,850
300 PacifiCare Health Systems -
Class B** 25,912
1,100 Trigon Healthcare Inc.** 41,938
------------
126,700
------------
TOTAL HEALTHCARE
(Cost $128,939) 144,463
------------
SERVICES 2.13%
- -------------------------------------------------------------------------------
BUSINESS SERVICES 2.13%
- -------------------------------------------------------------------------------
1,000 Hertz Corp. - Class A 54,937
------------
TOTAL SERVICES
(Cost $39,988) 54,937
------------
25
<PAGE>
WESTCORE MID-CAP OPPORTUNITY FUND
May 28, 1999 (CONTINUED)
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
TECHNOLOGY 10.51%
- -------------------------------------------------------------------------------
COMPUTER HARDWARE 8.22%
- -------------------------------------------------------------------------------
1,250 American Power
Conversion Corp.** $ 48,672
650 Apple Computer Inc** 28,641
1,025 NCR Corp.** 40,039
2,100 Seagate Technology Inc.** 63,394
1,600 Storage Technology Corp.** 31,800
------------
212,546
------------
COMPUTER SERVICES & SOFTWARE 0.89%
- -------------------------------------------------------------------------------
950 Sterling Software Inc.** 23,097
------------
TELECOMMUNICATIONS 1.40%
- -------------------------------------------------------------------------------
750 US Cellular Corp.** 36,187
------------
TOTAL TECHNOLOGY
(Cost $288,833) 271,830
------------
TOTAL COMMON STOCKS
(Cost $2,303,891) 2,492,403
------------
MUTUAL FUNDS 3.37%
- -------------------------------------------------------------------------------
87,088 Dreyfus Cash Management
Fund 87,088
------------
TOTAL MUTUAL FUNDS
(Cost $87,088) 87,088
------------
TOTAL INVESTMENTS
(Cost $2,390,979) 99.78% $ 2,579,491
Other Assets in
Excess of Liabilities 0.22% 5,738
-------------------------
NET ASSETS 100.00% $ 2,585,229
-------------------------
-------------------------
</TABLE>
See Notes to Statements of Investments.
WESTCORE SMALL-CAP OPPORTUNITY FUND
May 28, 1999
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
COMMON STOCKS 94.98%
- -------------------------------------------------------------------------------
BASIC MATERIALS 8.26%
- -------------------------------------------------------------------------------
METALS 1.31%
- -------------------------------------------------------------------------------
13,200 AK Steel Holding Corp. $ 316,800
30,700 Citation Corp.** 412,531
18,900 Ryerson Tull Inc. 434,700
------------
1,164,031
------------
MULTI-INDUSTRY 0.83%
- -------------------------------------------------------------------------------
20,140 Texas Industries Inc. 732,593
------------
PAPER & WOOD 1.57%
- -------------------------------------------------------------------------------
16,400 Boise Cascade Corp. 649,850
20,600 Chesapeake Corp. 742,887
------------
1,392,737
------------
TRANSPORTATION 4.55%
- -------------------------------------------------------------------------------
9,700 Alaska Air Group Inc.** 402,550
21,800 America West Holdings
Corp. - Class B** 425,100
36,100 Arkansas Best Corp.** 320,388
17,100 Consolidated Freightways
Corp.** 228,712
30,300 Johnstown America
Industries Inc.** 477,225
8,400 Oshkosh Truck Corp. 333,900
15,600 Roadway Express Inc. 300,300
14,000 USFreightways Corp. 551,250
26,400 Varlen Corp. 996,600
------------
4,036,025
------------
TOTAL BASIC MATERIALS
(Cost $7,343,391) 7,325,386
------------
CAPITAL GOODS 5.72%
- -------------------------------------------------------------------------------
AEROSPACE & DEFENSE 4.92%
- -------------------------------------------------------------------------------
8,200 Alliant TechSystems Inc.** 697,000
26,420 Cordant Technologies Inc. 1,281,370
64,450 Ducommun Inc.** 737,147
43,100 Kellstrom Industries Inc.** 781,187
8,600 Moog Inc. - Class A** 235,963
13,600 Primex Technologies Inc. 258,400
28,500 Remec Inc.** 370,500
------------
4,361,567
------------
ELECTRICAL EQUIPMENT 0.55%
- -------------------------------------------------------------------------------
17,900 Cable Design Technologies
Corp.** 252,837
16,000 Stoneridge Inc.** 232,000
------------
484,837
------------
OTHER - CAPITAL GOODS 0.25%
- -------------------------------------------------------------------------------
9,400 Rental Services Corp.** 224,425
------------
TOTAL CAPITAL GOODS
(Cost $5,768,532) 5,070,829
------------
CONSUMER CYCLICALS 20.09%
- -------------------------------------------------------------------------------
AUTOMOTIVE 2.81%
- -------------------------------------------------------------------------------
12,800 Arvin Industries Inc. 502,400
21,400 Dura Automotive Systems
Inc. - Class A** 636,650
4,000 Tecumseh Products Co. -
Class A 264,000
47,400 Tower Automotive Inc.** 1,084,275
------------
2,487,325
------------
BUILDING RELATED 4.83%
- -------------------------------------------------------------------------------
6,800 Florida Rock Industries 271,150
10,900 Haverty Furniture 321,550
29,900 LaFarge Corp. 999,781
28,000 Lone Star Industries 997,500
31,100 MDC Holdings Inc. 614,225
14,000 M/I Schottenstein Homes Inc. 271,250
81,000 Morrison Knudsen Corp.** 804,938
------------
4,280,394
------------
26
<PAGE>
WESTCORE SMALL-CAP OPPORTUNITY FUND
May 28, 1999 (CONTINUED)
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
CONSUMER SOFT GOODS 0.87%
- -------------------------------------------------------------------------------
27,900 Oxford Industries Inc. $ 774,225
------------
HOTELS - RESTAURANTS - LEISURE 2.88%
- -------------------------------------------------------------------------------
51,600 Innkeepers USA Trust 532,125
32,150 Monaco Coach Corp. 964,500
46,000 Rare Hospitality
International Inc.** 1,058,000
------------
2,554,625
------------
RETAIL 8.70%
- -------------------------------------------------------------------------------
12,500 Blair Corp. 214,844
90,200 Cato Corp. - Class A** 1,183,875
52,800 Elder-Beerman Stores Corp.** 462,000
42,700 Rent-Way Inc.** 1,072,838
22,100 REX Stores Corp.** 455,813
56,330 ShopKo Stores Inc.** 1,999,715
60,200 Zale Corp.** 2,321,463
------------
7,710,548
------------
TOTAL CONSUMER CYCLICALS
(Cost $16,105,859) 17,807,117
------------
CONSUMER STAPLES 8.15%
- -------------------------------------------------------------------------------
FOOD, BEVERAGES & TOBACCO 6.64%
- -------------------------------------------------------------------------------
30,700 Ben & Jerry's Homemade -
Class A** 861,519
16,300 Canandaigua Brands Inc. -
Class A** 810,925
53,600 Earthgrains Co. 1,256,250
19,400 Flowers Industries Inc. 431,650
78,800 Ralcorp Holdings Inc.** 1,487,350
16,300 Smithfield Foods Inc.** 435,006
13,100 Smucker (J.M.) Co. - Class A 271,006
9,000 Suiza Foods Corp.** 329,625
------------
5,883,331
------------
HOUSEHOLD PRODUCTS 0.73%
- -------------------------------------------------------------------------------
9,000 French Fragrances Inc.** 68,344
28,600 Ladd Furniture Inc.** 582,725
------------
651,069
------------
RETAIL FOOD & DRUG 0.78%
- -------------------------------------------------------------------------------
21,000 Great Atlantic & Pacific
TEA Co. 687,750
------------
TOTAL CONSUMER STAPLES
(Cost $7,435,203) 7,222,150
------------
CREDIT SENSITIVE 28.91%
- -------------------------------------------------------------------------------
FINANCIAL SERVICES 10.55%
- -------------------------------------------------------------------------------
22,200 Advest Group Inc. 463,425
8,600 Andover Bancorp Inc. 250,475
24,900 Astoria Financial Corp. 1,120,500
10,800 Dain Rauscher Corp. 562,275
43,000 Downey Financial Corp. 946,000
38,100 Everen Capital Corp. 1,116,806
62,100 Golden State Bancorp Inc.** 1,525,331
46,200 Heller Financial Inc. -
Class A 1,374,450
24,100 LandAmerica Financial
Group Inc. 691,369
14,000 Mack-Cali Realty Corp. 453,250
18,369 MAF Bancorp Inc. 423,635
6,400 Southwest Securities Group 427,200
------------
9,354,716
------------
INSURANCE 3.42%
- -------------------------------------------------------------------------------
15,200 Chicago Title Corp. 559,550
20,190 Delphi Financial Group -
Class A** 700,336
21,800 Enhance Financial Services
Group 426,462
26,900 FBL Financial Group Inc. -
Class A 539,681
38,000 Fremont General Corp. 805,125
------------
3,031,154
------------
REITs 7.80%
- -------------------------------------------------------------------------------
24,500 Annaly Mortgage
Management Inc. 251,125
24,900 Bradley Real Estate Inc. 519,787
30,800 Brandywine Realty Trust 598,675
54,000 Eastgroup Properties 1,096,875
20,100 Essex Property Trust Inc. 645,712
35,000 Health Care REIT Inc. 866,250
41,200 Liberty Property Trust 993,950
21,800 Mills Corp. 480,962
29,900 Parkway Properties Inc./Md. 988,569
19,800 Prentiss Properties Trust 467,775
------------
6,909,680
------------
UTILITIES - ELECTRIC 6.10%
- -------------------------------------------------------------------------------
27,200 BEC Energy 1,196,800
14,000 Calpine Corp.** 758,625
16,440 Central Hudson Gas
& Electric Corp. 693,562
32,200 Cleco Corp. 1,064,612
32,600 Rochester Gas and
Electric Corp. 910,763
8,200 TNP Enterprises Inc. 305,963
10,900 United Illuminating Co.** 477,556
------------
5,407,881
------------
UTILITIES - GAS 1.04%
- -------------------------------------------------------------------------------
15,200 Dynegy Inc. 263,150
23,300 Southwest Gas Corp. 658,225
------------
921,375
------------
TOTAL CREDIT SENSITIVE
(Cost $26,367,993) 25,624,806
------------
ENERGY 2.96%
- -------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES 0.93%
- -------------------------------------------------------------------------------
1,749 Eagle Geophysical Inc.** 5,904
7,800 Seacor Smit Inc.** 387,075
27,200 Seitel Inc.** 430,100
------------
823,079
------------
27
<PAGE>
WESTCORE SMALL-CAP OPPORTUNITY FUND
May 28, 1999 (CONTINUED)
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
ENERGY PRODUCERS 2.03%
- -------------------------------------------------------------------------------
22,500 Louis Dreyfus Natural Gas** $ 438,750
33,800 Pennzoil-Quaker State Co. 468,975
75,300 Tesoro Petroleum Corp.** 889,481
------------
1,797,206
------------
TOTAL ENERGY
(Cost $2,575,268) 2,620,285
------------
HEALTHCARE 8.49%
- -------------------------------------------------------------------------------
BIOTECHNOLOGY 0.85%
- -------------------------------------------------------------------------------
22,200 Conmed Corp.** 754,800
------------
DRUGS & HEALTHCARE PRODUCTS 3.26%
- -------------------------------------------------------------------------------
12,500 Bard (C.R.) Inc. 571,094
42,700 Dura Pharmaceuticals Inc.** 443,012
16,000 Medco Research Inc.** 376,000
35,200 Polymedica Corp.** 301,400
62,900 Roberts Pharmaceutical
Corp.** 1,195,100
------------
2,886,606
------------
HEALTHCARE SERVICES 4.38%
- -------------------------------------------------------------------------------
48,293 Bindley Western
Industries Inc. 1,454,827
55,900 Physician Reliance Network** 503,100
50,500 Trigon Healthcare Inc.** 1,925,313
------------
3,883,240
------------
TOTAL HEALTHCARE
(Cost $7,072,416) 7,524,646
------------
SERVICES 7.24%
- -------------------------------------------------------------------------------
BUSINESS SERVICES 7.24%
- -------------------------------------------------------------------------------
69,100 Avis Rent A Car Inc.** 1,982,306
25,700 Data Processing Resources** 390,319
29,900 Dollar Thrifty Automotive
Group** 635,375
52,000 Personnel Group of
America Inc.** 591,500
29,500 Pomeroy Computer
Resources** 424,063
64,200 Safety-Kleen Corp.** 1,007,138
20,900 URS Corp.** 514,663
34,200 World Color Press Inc.** 872,100
------------
6,417,464
------------
TOTAL SERVICES
(Cost $5,893,819) 6,417,464
------------
TECHNOLOGY 5.16%
- -------------------------------------------------------------------------------
COMPUTER HARDWARE 0.83%
- -------------------------------------------------------------------------------
19,100 Brooktrout Inc.** 359,319
35,700 InFocus Systems Inc.** 374,850
------------
734,169
------------
COMPUTER SOFTWARE 1.60%
- -------------------------------------------------------------------------------
25,700 Software Spectrum Inc.** 346,950
44,300 Sterling Software Inc.** 1,077,044
------------
1,423,994
------------
ELECTRONICS 1.98%
- -------------------------------------------------------------------------------
29,100 Aeroflex Inc.** 423,769
19,200 Bel Fuse Inc. - Class B 547,200
98,600 Integrated Device
Technology Inc.** 782,637
------------
1,753,606
------------
TELECOMMUNICATIONS 0.75%
- -------------------------------------------------------------------------------
10,000 Intervoice Inc.** 111,250
29,100 Periphonics Corp.** 312,825
12,800 Teltrend Inc.** 240,000
------------
664,075
------------
TOTAL TECHNOLOGY
(Cost $4,413,669) 4,575,844
------------
TOTAL COMMON STOCKS
(Cost $82,976,150) 84,188,527
------------
MUTUAL FUNDS 4.26%
- -------------------------------------------------------------------------------
3,774,053 Dreyfus Cash Management
Fund 3,774,053
------------
TOTAL MUTUAL FUNDS
(Cost $3,774,053) 3,774,053
------------
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED 0.49%
- -------------------------------------------------------------------------------
MUTUAL FUNDS 0.49%
- -------------------------------------------------------------------------------
430,156 Mitchell Hutchins Private
Money Market Fund(4) 430,156
------------
TOTAL MUTUAL FUNDS
(Cost $430,156) 430,156
------------
TOTAL INVESTMENTS OF CASH
COLLATERAL FOR SECURITIES
LOANED
(Cost $430,156) 430,156
------------
TOTAL INVESTMENTS
(Cost $87,180,359) 99.73% $ 88,392,736
Other Assets in Excess
of Liabilities 0.27% 241,871
-------------------------
NET ASSETS 100.00% $ 88,634,607
-------------------------
-------------------------
</TABLE>
See Notes to Statements of Investments.
28
<PAGE>
WESTCORE LONG-TERM BOND FUND
May 28, 1999
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
U.S. GOVERNMENT TREASURIES 47.96%
- -------------------------------------------------------------------------------
U.S. TREASURY BONDS 31.89%
- -------------------------------------------------------------------------------
$1,000,000 7.875%, 02/15/21 $ 1,205,625
1,100,000 8.125%, 08/15/21 1,361,937
1,750,000 6.25%, 08/15/23 1,782,267
1,000,000 6.00%, 02/15/26 990,625
1,500,000 6.625%, 02/15/27 1,610,157
------------
6,950,611
------------
U.S. GOVERNMENT ZERO COUPON
STRIPS 16.07%
- -------------------------------------------------------------------------------
4,000,000 08/15/11 1,909,536
3,000,000 08/15/18 916,494
2,500,000 08/15/20 677,815
------------
3,503,845
------------
TOTAL U.S. GOVERNMENT TREASURIES
(Cost 10,061,391) 10,454,456
------------
CORPORATE BONDS 45.73%
- -------------------------------------------------------------------------------
FINANCIAL 20.01%
- -------------------------------------------------------------------------------
INSURANCE 7.80%
- -------------------------------------------------------------------------------
230,000 Aetna Services Inc.,
7.625%, 08/15/26 231,115
250,000 Geico Corp.,
9.15%, 09/15/21 270,003
250,000 Leucadia National Corp.,
7.75%, 08/15/13 242,872
500,000 Lincoln National Insurance
Corp., 9.125%, 10/01/24 544,202
125,000 Progressive Corp.,
6.625%, 03/01/29 117,438
300,000 Zurich Reinsurance Centre
Holdings, 7.125%, 10/15/23 293,557
------------
1,699,187
------------
REITs 12.21%
- -------------------------------------------------------------------------------
100,000 Avalon Bay Communities Inc.,
6.50%, 07/15/03 97,720
100,000 Centerpoint Property Trust,
6.75%, 04/01/05 95,826
175,000 Equity Office Properties
Trust, 6.625%, 02/15/05 170,407
250,000 ERP Operating Ltd.
Partnership, 7.57%, 08/15/26 255,002
250,000 Health Care Properties,
6.50%, 02/15/06 230,531
300,000 Kimco Realty Corp.,
6.83%, 11/14/05 291,032
150,000 Nationwide Health Property,
7.23%, 11/08/06 143,403
250,000 New Plan Realty Trust,
7.75%, 04/06/05 257,526
125,000 Price Development Co. LP,
7.29%, 03/11/08 117,043
375,000 Property Trust of America,
6.875%, 02/15/08 367,044
250,000 Rouse Co.,
8.50%, 01/15/03 261,009
200,000 Security Capital Industrial
Trust, 7.95%, 05/15/08 202,794
175,000 Weingarten Realty Investors
Trust, 7.22%, 06/01/05 172,766
------------
2,662,103
------------
TOTAL FINANCIAL
(Cost $4,295,541) 4,361,290
------------
INDUSTRIAL 18.37%
- -------------------------------------------------------------------------------
AEROSPACE & DEFENSE 2.39%
- -------------------------------------------------------------------------------
250,000 Lockheed Martin Corp.,
7.70%, 06/15/08 262,491
260,000 Raytheon Co.,
6.50%, 07/15/05 258,419
------------
520,910
------------
CHEMICALS 3.76%
- -------------------------------------------------------------------------------
500,000 Borden Inc.,
7.875%, 02/15/23 411,103
400,000 Lubrizol Corp.,
7.25%, 06/15/25 408,956
------------
820,059
------------
HOSPITAL EQUIPMENT 1.05%
- -------------------------------------------------------------------------------
200,000 Hillenbrand Industries Inc.,
8.50%, 12/01/11 230,143
------------
HOTELS - RESTAURANTS - LEISURE 3.01%
- -------------------------------------------------------------------------------
150,000 Circus Circus Enterprises Inc.,
6.45%, 02/01/06 134,679
250,000 Hilton Hotels Corp.,
7.95%, 04/15/07 254,907
175,000 Marriott International Inc.,
6.875%, 11/15/05(1) 170,825
Mirage Resorts Inc.:
50,000 7.25%, 10/15/06 48,932
50,000 6.75%, 08/01/07 47,283
------------
656,626
------------
MEDIA - PUBLISHING - CABLE 3.43%
- -------------------------------------------------------------------------------
175,000 AT&T Corp.,
6.50%, 03/15/29 162,877
300,000 Cox Communications Inc.,
7.625%, 06/15/25 309,462
275,000 Time Warner Inc.,
7.25%, 10/15/17 274,397
------------
746,736
------------
OIL COMPANIES 1.01%
- -------------------------------------------------------------------------------
100,000 Burlington Resources,
7.375%, 03/01/29 99,698
125,000 Conoco Inc.,
6.35%, 04/15/09 121,328
------------
221,026
------------
29
<PAGE>
WESTCORE LONG-TERM BOND FUND
May 28, 1999 (CONTINUED)
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
RETAIL 3.72%
- -------------------------------------------------------------------------------
$ 500,000 K Mart Corp.,
7.95%, 02/01/23 $ 502,733
Penney (JC) Co. Inc.,
120,000 7.625%, 03/01/97 110,140
75,000 7.40%, 04/01/37 75,941
125,000 Pep Boys - Manny, Moe
& Jack, 6.52%, 07/16/07 121,087
------------
809,901
------------
TOTAL INDUSTRIAL
(Cost $3,923,869) 4,005,401
------------
TRANSPORTATION 5.81%
- -------------------------------------------------------------------------------
AIR TRANSPORTATION 5.81%
- -------------------------------------------------------------------------------
350,000 AMR Corp.,
10.00%, 04/15/21 424,915
125,000 Atlas Air Inc. Pass-Through
Certificates, Series 991A
7.20%, 01/02/19 121,094
317,977 Jet Equipment Trust Series
95-B, 7.83%, 02/15/15(1) 323,703
225,944 United Air Lines Inc. Pass-
Through Certificates, Series
95-A1, 9.02%, 04/19/12 247,830
150,000 US Airways Inc. Pass-Through
Certificates, Series 98-1,
6.85%, 01/30/18 148,624
------------
1,266,166
------------
TOTAL TRANSPORTATION
(Cost $1,167,720) 1,266,166
------------
UTILITIES 1.54%
- -------------------------------------------------------------------------------
ELECTRIC & OTHER SERVICES
COMBINED 0.86%
- -------------------------------------------------------------------------------
200,000 Pacificorp,
5.65%, 11/01/06 188,403
------------
NATURAL GAS 0.68%
- -------------------------------------------------------------------------------
150,000 KN Energy Inc.,
7.25%, 03/01/28 147,247
------------
TOTAL UTILITIES
(Cost $349,042) 335,650
------------
TOTAL CORPORATE BONDS
(Cost $ 9,736,172) 9,968,507
------------
MORTGAGE-BACKED SECURITIES 1.60%
- -------------------------------------------------------------------------------
363,571 FHLMC Pool #G00336,
6.00%, 10/01/24 348,446
------------
TOTAL MORTGAGE-BACKED
SECURITIES
(Cost $339,500) 348,446
------------
MUTUAL FUNDS 3.02%
- -------------------------------------------------------------------------------
658,764 Dreyfus Cash Management
Fund 658,764
------------
TOTAL MUTUAL FUNDS
(Cost $658,764) 658,764
------------
INVESTMENTS OF CASH
COLLATERAL FOR SECURITIES LOANED 0.52%
- -------------------------------------------------------------------------------
MUTUAL FUNDS
- -------------------------------------------------------------------------------
113,300 Mitchell Hutchins Private
Money Market Fund(4) 113,300
------------
TOTAL MUTUAL FUNDS
(Cost $113,300) 113,300
------------
TOTAL INVESTMENTS OF CASH
COLLATERAL FOR SECURITIES
LOANED
(Cost $113,300) $ 113,300
------------
TOTAL INVESTMENTS
(Cost $20,909,128) 98.83% $ 21,543,473
Other Assets
in Excess of Liabilities 1.17% 254,280
-------------------------
NET ASSETS 100.00% $ 21,797,753
-------------------------
-------------------------
</TABLE>
See Notes to Statements of Investments.
30
<PAGE>
WESTCORE INTERMEDIATE-TERM BOND FUND
May 28, 1999
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
CORPORATE BONDS 60.84%
- -------------------------------------------------------------------------------
FINANCIAL 27.96%
- -------------------------------------------------------------------------------
FINANCIAL SERVICES 3.23%
- -------------------------------------------------------------------------------
$ 450,000 Beneficial Corp.
6.25%, 02/18/13 $ 448,237
725,000 General Motors Acceptance
Corp., 6.60%, 01/17/01 731,724
150,000 Transamerica Financial Corp.,
6.125%, 11/01/01 149,500
------------
1,329,461
------------
INSURANCE 2.82%
- -------------------------------------------------------------------------------
1,150,000 Aetna Services Inc.,
7.125%, 08/15/06 1,161,819
------------
INVESTMENT BANKING/BROKERAGE 2.08%
- -------------------------------------------------------------------------------
475,000 Donaldson, Lufkin & Jenrette
Inc. 5.875%, 04/01/02 467,430
400,000 Merrill Lynch & Co. Inc.,
6.00%, 07/15/05 387,338
------------
854,768
------------
REITs 19.83%
- -------------------------------------------------------------------------------
300,000 Avalon Bay Communities Inc.,
6.50%, 07/15/03 293,159
300,000 Camden Property Trust,
7.00%, 04/15/04 296,067
400,000 Centerpoint Property Trust,
6.75%, 04/01/05 383,306
600,000 Corporate Property Investors,
7.75%, 08/15/04(1) 616,093
375,000 CP Limited Partnership
6.92%, 12/10/14 347,915
500,000 Developers Diversified Realty
Trust, 6.95%, 07/23/04 483,648
375,000 Evans Withycombe Residential
Trust,7.50%, 04/15/04 383,766
400,000 Health Care Properties
6.50%, 02/15/06 368,850
1,000,000 Kimco Realty Corp.,
6.83%, 11/14/05 970,106
425,000 Nationwide Health Property
Trust, 7.23%, 11/08/06 406,309
1,000,000 New Plan Realty Trust,
7.75%, 04/06/05 1,030,104
200,000 Price Develpment Co. LP,
7.29%, 03/11/08 187,269
350,000 Security Capital Industrial
Trust, 7.95%, 05/15/08 354,890
300,000 United Dominion Realty
Trust Inc., 8.125%, 11/15/00 305,519
750,000 Washington Real Estate
Investment Trust, 7.125%,
08/13/03 748,603
1,000,000 Weingarten Realty Investors
Trust, 7.22%, 06/01/05 987,232
------------
8,162,836
------------
TOTAL FINANCIAL
(Cost $11,576,189) 11,508,884
------------
INDUSTRIAL 22.04%
- -------------------------------------------------------------------------------
AEROSPACE & DEFENSE 4.68%
- -------------------------------------------------------------------------------
790,000 Raytheon Co., 6.50%,
07/15/05 785,195
1,150,000 Rockwell International Corp.,
6.625%, 06/01/05 1,142,403
------------
1,927,598
------------
HOSPITAL EQUIPMENT 0.91%
- -------------------------------------------------------------------------------
325,000 Hillenbrand Industries Inc.,
8.50%, 12/01/11 373,983
------------
HOTELS-RESTAURANTS-LEISURE 3.43%
- -------------------------------------------------------------------------------
350,000 Circus Circus Enterprises Inc.,
6.45%, 02/01/06 314,250
600,000 Hilton Hotels Corp.,
7.95%, 04/15/07 611,777
300,000 Marriott International Inc.,
6.875%, 11/15/05(1) 292,843
Mirage Resorts Inc.:
100,000 7.25%, 10/15/06 97,863
100,000 6.75%, 08/01/07 94,566
------------
1,411,299
------------
MEDIA - PUBLISHING - CABLE 8.06%
- -------------------------------------------------------------------------------
350,000 AT&T Corp., 5.625%,
03/15/04 341,058
1,100,000 Cox Communications Inc.,
6.375%, 06/15/00 1,103,764
750,000 New York Times Co.,
7.625%, 03/15/05 790,626
1,000,000 Time Warner Entertainment
Co., 9.625%, 05/01/02 1,081,084
------------
3,316,532
------------
METALS 2.90%
- -------------------------------------------------------------------------------
1,000,000 CSR America Inc.,
6.875%, 07/21/05 988,558
225,000 Cyprus Amax Minerals Co.,
6.625%, 10/15/05 205,986
------------
1,194,544
------------
OIL COMPANIES 0.54%
- -------------------------------------------------------------------------------
225,000 Conoco Inc., 5.90%, 04/15/04 220,557
------------
RETAIL 1.52%
- -------------------------------------------------------------------------------
400,000 Penney (JC) Co. Inc.,
7.25%, 04/01/02 406,574
225,000 Pep Boys - Manny, Moe
& Jack, 6.52%, 07/16/07 217,957
------------
624,531
------------
TOTAL INDUSTRIAL
(Cost $8,993,312) 9,069,044
------------
TRANSPORTATION 8.70%
- -------------------------------------------------------------------------------
AIR TRANSPORTATION 8.70%
- -------------------------------------------------------------------------------
730,381 American Airlines Inc.,
Series 1991, 9.71%, 01/02/07 786,134
464,969 Continental Airlines Pass-
Through Certificates, Series
962A, 7.75%, 07/02/14 481,590
31
<PAGE>
WESTCORE INTERMEDIATE-TERM BOND FUND
May 28, 1999
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------
<S> <C> <C>
$ 981,187 Jet Equipment Trust, Series
95-B, 7.83%, 02/15/15(1) $ 998,856
903,777 United Air Lines Inc. Pass-
Through Certificates, Series
95-A1, 9.02%, 04/19/12 991,321
325,000 US Airways Inc. Pass-Through
Certificates, Series 98-1
6.85%, 01/30/18 322,018
------------
3,579,919
------------
TOTAL TRANSPORTATION
(Cost $3,415,871) 3,579,919
------------
UTILITIES 2.14%
- -------------------------------------------------------------------------------
ELECTRIC & OTHER SERVICES
COMBINED 1.03%
- -------------------------------------------------------------------------------
450,000 Pacificorp, 5.65%, 11/01/06 423,906
------------
NATURAL GAS 1.11%
- -------------------------------------------------------------------------------
460,000 KN Energy Inc.,
6.45%, 03/01/03 455,989
------------
TOTAL UTILITIES
(Cost $907,925) 879,895
------------
TOTAL CORPORATE BONDS
(Cost $24,893,297) 25,037,742
------------
ASSET-BACKED SECURITIES,
COLLATERALIZED MORTGAGE
OBLIGATIONS & MORTGAGE-
BACKED SECURITIES 22.13%
- -------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 11.69%
- -------------------------------------------------------------------------------
500,000 American Express Master
Trust, 5.90%, 04/15/04 495,607
250,000 Americredit Automobile
Receivables Trust, Series 1999-B,
Class A4, 5.96%, 03/05/06 247,000
California Infrastructure PG&E-1,
Series 1997-1, Class A-5:
250,000 6.25%, 06/25/04 250,656
100,000 6.32%, 09/25/05 100,085
525,000 Carco Auto Loan Master
Trust, Series 1991-1 Class A2,
5.78%, 03/15/04 $ 520,131
250,000 COMED Transitional Funding
Trust, Series 1998-1, Class A2,
5.29%, 06/25/03 248,049
150,000 COMED Transitional Funding
Trust, Series 1998-1, Class A6,
5.63%, 06/25/09 142,598
250,000 Discover Card Master Trust I,
Series 1999-2, Class A, 5.90%,
10/15/04 246,879
450,000 Ford Credit Auto Owner
Trust, Series 1998-C, Class A4,
5.81%, 03/15/02 451,334
200,000 Household Automobile Revolving Trust I,
Series 1998-1, Class B1,
6.30%, 05/17/05 201,837
375,000 John Deere Owner Trust,
Series 1999-A, Class A4,
6.12%, 10/17/05 373,200
340,000 Newcourt Equipment Trust
Securities, Series 1998-1,
Class A3, 5.24%, 12/20/02 333,430
650,000 Premier Auto Trust, Series
1998-2, Class A3, 5.77%,
01/06/02 652,064
300,000 Premier Auto Trust, Series
1998-5, Class A3, 5.07%,
07/08/02 296,906
250,000 Union Acceptance Corp, Series
1998-B, Class A3, 5.875%,
08/08/02 250,996
------------
4,810,772
------------
COLLATERALIZED MORTGAGE
OBLIGATIONS 0.61%
- -------------------------------------------------------------------------------
243,950 Collateralized Mortgage
Securities Corp., Series 1988-4,
Class B, 8.75%, 04/20/19 253,682
------------
MORTGAGE-BACKED SECURITIES 9.83%
- -------------------------------------------------------------------------------
1,508,818 FHLMC Pool #G00336,
6.00%, 10/01/24 $ 1,446,051
769,737 FNMA Pool #303845,
7.00%, 05/01/11 783,385
1,030,486 FNMA Pool #362443,
6.50%, 12/01/08 1,032,300
724,935 GNMA Pool #780019,
9.50%, 12/15/09 782,444
------------
4,044,180
------------
TOTAL ASSET-BACKED SECURITIES,
COLLATERALIZED MORTGAGE
OBLIGATIONS & MORTGAGE-
BACKED SECURITIES
(Cost $9,028,732) 9,108,634
------------
U.S. GOVERNMENT TREASURIES 12.49%
- -------------------------------------------------------------------------------
U.S. Treasury Notes:
1,000,000 6.875%, 03/31/00 1,014,375
500,000 6.75%, 04/30/00 507,032
1,500,000 6.25%, 04/30/01 1,522,032
2,000,000 7.875%, 08/15/01 2,097,500
------------
5,140,939
------------
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $5,117,818) 5,140,939
------------
MUTUAL FUNDS 3.25%
- -------------------------------------------------------------------------------
1,338,057 Dreyfus Cash Management
Fund 1,338,057
------------
TOTAL MUTUAL FUNDS
(Cost $1,338,057) 1,338,057
------------
TOTAL INVESTMENTS
(Cost $40,377,904) 98.71% $ 40,625,372
Other Assets in Excess
of Liabilities 1.29% 530,098
-------------------------
NET ASSETS 100.00% $ 41,155,470
-------------------------
-------------------------
</TABLE>
See Notes to Statements of Investments.
32
<PAGE>
WESTCORE COLORADO TAX-EXEMPT FUND
May 28, 1999
<TABLE>
<CAPTION>
Shares or Bond
Principal Rating* Market
Amount Moody's/S&P Value
- ------ ----------- -----
CERTIFICATES OF PARTICIPATION 4.80%
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 200,000 Bent County, Certificate of Participation,
Jail Facility and County Project Lease Purchase
Agreement, 4.50%, 12/01/10, Optional
anytime @ 100.00, Asset Guaranty NR/AA $ 193,196
90,000 Colorado State Board of Agriculture,
Certificate of Participation CSU Research
Foundation Master Lease Purchase Agreement,
6.45%, 11/01/01, Optional anytime
@ 100.00, MBIA Aaa/AAA 91,112
500,000 Fremont County, Certificate of Participation,
Lease Purchase Agreement, 5.125%,
12/15/11, Optional anytime @ 100.00,
MBIA Aaa/AAA 507,380
500,000 Larimer County Certificate of Participation
Courthouse & Jail Facilities Lease Purchase
Agreement, 4.75%, 12/15/09, Optional
anytime @ 100.00, FSA Aaa/AAA 497,530
100,000 Moffat County, Certificate of Participation
Public Safety Center Project Lease Purchase
Agreement 4.75%, 06/01/09, Optional
anytime @ 100.00, AMBAC Aaa/AAA 99,527
250,000 State of Colorado, Certificate of Participation
Master Lease Purchase Agreement II,
5.10%, 11/01/06, Optional anytime
@ 100.00, MBIA Aaa/AAA 261,458
510,000 Weld County, Certificate of Participation
Correctional Facilities Lease Purchase
Agreement, 5.35%, 08/01/10, Optional
anytime @ 100.00, MBIA Aaa/AAA 534,750
--------------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $2,144,188) 2,184,953
--------------
GENERAL OBLIGATION BONDS 64.06%
- ------------------------------------------------------------------------------------------------------
County/City/Special District/School District 64.06%
- ------------------------------------------------------------------------------------------------------
100,000 Adams County School District 12,
7.25%, 12/15/09, Prerefunded 12/15/99
@ 100.00 NR/A+ 102,095
500,000 Adams County School District 14,
5.30%, 12/01/09, Optional 12/01/07
@ 101.00, FSA Aaa/AAA 527,105
100,000 Adams & Arapahoe Counties Joint School
District 28J, 5.75%, 12/01/06, MBIA Aaa/AAA 108,819
100,000 Adams & Arapahoe Counties School
District 29J, 5.40%, 12/01/09, Optional
12/01/06 @ 100.00, MBIA Aaa/AAA 105,811
250,000 Adams & Weld Counties School
District 27J, 5.55%, 12/01/09, Optional
12/01/06 @ 100.00, FGIC Aaa/AAA 264,935
125,000 Alamosa & Conejos Counties School District
Re-11J, 4.90%, 12/01/07, Optional 12/01/05
@ 100.00, MBIA Aaa/AAA 129,146
Arapahoe County School District 1:
100,000 4.85%, 11/01/04, FSA Aaa/AAA 103,514
500,000 5.25%, 12/01/13, Optional 12/01/08
@ 100.00, FSA Aaa/AAA 510,505
Arapahoe County School District 2:
100,000 6.75%, 12/01/04, Prerefunded 12/01/99
@ 101.00 Aa3\NR 102,759
25,000 6.75%, 12/01/04, Escrowed to Maturity Aa3\NR 28,211
Arapahoe County School District 5:
250,000 5.25%, 12/15/04,Optional 12/15/03
@ 100.00 Aa2/AA 261,918
500,000 5.50%, 12/15/06 Aa2/AA 536,975
Arapahoe County School District 6:
250,000 5.50%, 12/01/06 Aa2/AA 269,743
1,000,000 5.00%, 12/01/07 Aa2/AA 1,045,090
250,000 Archuleta & Hinsdale Counties Joint
School District 50 JT, 5.50%, 12/01/14,
Optional 12/01/06 @ 101.00, MBIA Aaa/AAA 259,942
150,000 Archuleta & La Plata Counties School
District No. 10 JT-R, 4.20%, 12/01/10,
Optional 12/01/08 @ 100.00, MBIA Aaa/AAA 144,268
100,000 Basalt & Rural Fire Protection District,
Eagle & Pitkin Counties, 5.20%, 12/01/15,
Optional 12/01/06 @ 100.00, AMBAC Aaa/AAA 101,526
Boulder, Central Area General
Improvement District:
400,000 5.00%, 06/15/08, AMBAC Aaa/AAA 414,720
500,000 4.60%, 06/15/11, Optional 06/15/08
@ 101.00, AMBAC Aaa/AAA 490,205
33
<PAGE>
WESTCORE COLORADO TAX-EXEMPT FUND
May 28, 1999 (CONTINUED)
Shares or Bond
Principal Rating* Market
Amount Moody's/S&P Value
- ------ ----------- -----
$ 500,000 Boulder, Boulder County Parks,
5.125%, 12/15/09, Optional 12/15/06
@ 100.00 Aa1/AA $ 517,535
Boulder & Gilpin Counties, Boulder Valley
School District Re-2:
250,000 5.55%, 12/01/03 Aa3/AA 266,052
100,000 5.50%, 12/01/05, FGIC Aaa/AAA 107,159
1,000,000 5.00%, 12/01/11, Optional 12/01/07
@ 100.00, FGIC(3) Aaa/AAA 1,012,070
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 105,374
175,000 5.80%, 12/15/07, Optional 12/15/02
@ 101.00, MBIA Aaa/AAA 186,540
100,000 6.00%, 12/15/10, Optional 12/15/02
@ 101.00, MBIA Aaa/AAA 106,906
100,000 Breckenridge Summit County,
4.25%, 12/01/09, Optional 12/01/08
@ 100.00, MBIA Aaa/NR 97,271
205,000 Brighton, Adams County, Water,
6.625%, 12/01/11, Prerefunded 12/01/01
@ 101.00, MBIA Aaa/AAA 221,209
250,000 Broomfield, Boulder, Jefferson, Adams &
Weld Counties, Water, 4.55%, 08/01/10,
Optional 08/01/08 @ 100.00, FSA Aaa/AAA 246,070
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 103,896
150,000 Chaffee County School District R-31,
5.10%, 12/01/09, Optional 12/01/06
@ 100.00, FSA Aaa/AAA 155,293
425,000 Chaffee & Fremont Counties School
District R-32J, 5.00%, 12/01/12, Optional
12/01/07 @ 100.00, FSA Aaa/AAA 432,663
250,000 Clear Creek County School District Re-1,
5.40%, 12/01/11, Optional 12/01/05
@ 100.00, MBIA Aaa/AAA 261,052
Colorado Springs, El Paso County:
125,000 6.60%, 09/01/00, Prerefunded 09/01/99
@ 100.00 NR/AAA 126,053
250,000 5.00%, 09/01/06, Optional 09/01/03
@ 100.00 Aa3/AA 256,432
Douglas & Elbert Counties School
District Re-1:
250,000 5.75%, 12/15/05, Optional 12/15/01
@ 101.00, FGIC Aaa/AAA 263,435
250,000 6.15%, 12/15/08, Optional 12/15/04
@ 101.00, MBIA Aaa/AAA 274,708
Eagle, Garfield & Routt Counties School
District Re-50J:
85,000 5.60%, 12/01/01, FGIC Aaa/AAA 88,731
200,000 5.75%, 12/01/03, Optional 12/01/02
@ 100.00, FGIC Aaa/AAA 211,284
1,000,000 4.40%, 12/01/10, Optional 12/01/09
@ 101.00, FGIC Aaa/AAA 972,350
El Paso County School District 2:
100,000 5.70%, 12/01/14, Prerefunded 12/01/05
@ 100.00 Aa3/NR 108,228
250,000 5.25%, 12/01/12, Optional 12/01/10
@ 100.00, MBIA Aaa/AAA 259,185
125,000 El Paso County School District 3,
6.20%, 12/15/00, Optional 12/15/99
@ 100.75, MBIA Aaa/AAA 127,704
500,000 El Paso County School District 11,
5.50%, 12/01/14, Optional 12/01/07
@ 103.00 Aa3/AA 528,080
El Paso County School District 12:
80,000 5.90%, 09/15/04 Aa1/NR 87,114
400,000 4.50%, 09/15/09, Optional 09/15/08
@ 100.00 Aa1/NR 402,396
500,000 4.70%, 09/15/14, Optional 09/15/08
@ 100.00 Aa1/NR 497,270
250,000 El Paso County School District 20,
5.70%, 12/15/06, FGIC Aaa/AAA 271,342
275,000 El Paso County School District 38,
4.60%, 12/01/13, Optional 12/01/08
@ 100.00, AMBAC Aaa/AAA 264,514
34
<PAGE>
WESTCORE COLORADO TAX-EXEMPT FUND
May 28, 1999 (CONTINUED)
Shares or Bond
Principal Rating* Market
Amount Moody's/S&P Value
- ------ ----------- -----
$ 125,000 El Paso County School District 49
6.75%, 12/01/04, Optional 12/01/00
@ 100.00, MBIA Aaa/AAA $ 130,778
250,000 Elbert County School District C-1 Elizabeth,
4.40%, 12/01/11, Optional 12/01/09
@ 100.00 Aa3/AA- 241,498
200,000 Fort Collins, Larimer County, Water
5.55%, 12/01/03, Optional 12/01/02
@ 101.00 Aa1/AA 211,794
250,000 Fruita, Mesa County,
4.75%, 10/01/06, Optional 10/01/04
@ 100.00, MBIA Aaa/AAA 255,425
Garfield County School District Re-2:
250,000 4.30%, 12/01/08, FSA Aaa/AAA 247,232
250,000 4.50%, 12/01/11, Optional 12/01/07
@ 100.00, FSA Aaa/AAA 246,705
Garfield, Pitkin & Eagle Counties
Roaring Fork School District Re-1:
500,000 5.125%, 12/15/10, Optional 12/15/05
@ 102.00, MBIA Aaa/AAA 513,740
250,000 6.60%, 12/15/14, Prerefunded 06/15/04
@ 101.00, MBIA Aaa/AAA 280,508
500,000 Grand County, East Grand School District 2,
5.00%, 12/01/17, Optional 12/01/08
@ 100.00, AMBAC Aaa/AAA 491,115
250,000 Greenwood South Metropolitan District
Arapahoe County, 5.50%, 12/01/04, MBIA Aaa/AAA 266,848
150,000 Gunnison & Saguache Counties Watershed
School District Re-1J
6.00%, 12/01/05, MBIA Aaa/AAA 164,879
250,000 Inverness Metropolitan Improvement District,
Arapahoe & Douglas Counties, 4.40%,
09/01/10, Optional 09/01/09 @ 100.00, FSA Aaa/AAA 243,827
Jefferson County School District R-1:
100,000 5.75%, 12/15/03, Prerefunded 12/15/02
@ 101.00, AMBAC Aaa/AAA 107,149
500,000 5.90%, 12/15/04, Prerefunded 12/15/02
@ 101.00, AMBAC Aaa/AAA 538,210
500,000 Kit Carson & Yuma Counties, Burlington
School District R-6J
4.75%, 12/01/18, Optional 12/01/08
@ 100.00, FSA Aaa/AAA 474,975
250,000 Lafayette, Boulder County
4.75%, 12/15/10 Optional 12/15/08
@ 100.00, FGIC Aaa/AAA 252,865
250,000 La Plata County School District 9-R,
5.25%, 11/01/05, MBIA Aaa/AAA 264,350
Larimer County, Poudre School District R-1:
125,000 7.00%, 12/15/08, Prerefunded 12/15/01
@ 101.00 NR\NR 135,661
500,000 5.00%, 12/15/16, Optional 12/15/08
@ 100.00, FSA Aaa/AAA 493,095
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 516,430
100,000 Longmont, Boulder County,
5.15%, 09/01/99, MBIA Aaa/AAA 100,468
Mesa County Valley School District 51:
250,000 4.80%, 12/01/05, MBIA Aaa/AAA 258,177
500,000 5.40%, 12/01/12, Optional 12/01/06
@ 101.00, MBIA Aaa/AAA 517,505
100,000 Mesa & Garfield Counties, School
District 49 JT Debeque, 4.25%, 12/01/09,
Optional 12/01/08 @ 100.00, MBIA Aaa/AAA 97,761
150,000 Montezuma County School District Re-4A,
5.10%, 12/01/10, Optional 12/01/07
@ 101.00, MBIA Aaa/AAA 155,490
500,000 Morgan County School District Re-3
Fort Morgan, 4.80%, 12/01/18, Optional
12/01/09 @ 100.00, AMBAC Aaa/AAA 475,900
250,000 Northglenn, Adams County, Water and
Sewer, 5.50%, 12/01/06, Optional 12/01/04
@ 101.00, FSA Aaa/AAA 265,793
100,000 Otero County, East Otero School District R-1,
5.05%, 12/15/09, Optional 12/15/05
@ 100.00, FSA Aaa/AAA 103,201
35
<PAGE>
WESTCORE COLORADO TAX-EXEMPT FUND
May 28, 1999 (CONTINUED)
Shares or Bond
Principal Rating* Market
Amount Moody's/S&P Value
- ------ ----------- -----
$ 250,000 Park County Platte Canyon School District 1,
4.30%, 12/01/10, Optional 12/01/08
@ 101.00, MBIA Aaa/AAA $ 245,458
100,000 Pitkin County School District Re-1,
5.50%, 11/15/00, AMBAC Aaa/AAA 102,955
1,000,000 Poudre Valley Hospital District, Larimer
County, 5.375%, 11/15/07, Optional
11/15/03 @ 100.00 Aa/AA- 1,036,240
Prowers County Hospital District, Prowers
and Baca Counties:
250,000 4.20%, 12/01/08, Optional 12/01/07
@ 100.00, FSA Aaa/AAA 243,645
150,000 4.30%, 12/01/09, Optional 12/01/07
@ 100.00, FSA Aaa/AAA 146,185
250,000 4.35%, 12/01/10, Optional 12/01/07
@ 100.00, FSA Aaa/AAA 243,243
Pueblo, Pueblo County Limited Tax:
200,000 5.80%, 06/01/11, Optional 06/01/06
@ 100.00, MBIA Aaa/AAA 214,982
250,000 6.00%, 06/01/16, Optional 06/01/06
@ 100.00, MBIA Aaa/AAA 270,455
225,000 Pueblo County School District 70,
5.00%, 12/01/11, Optional 12/01/07
@ 100.00, AMBAC Aaa/AAA 227,329
150,000 Rangely School District Re-4,
4.25%, 12/01/09, Optional 12/01/07
@ 100.00 Aa3/NR 146,642
150,000 Rio Grande County School District C-8,
5.35%, 11/15/11, Optional 11/15/05
@ 100.00, FSA Aaa/AAA 155,614
Routt County School District Re-2:
75,000 5.00%, 12/01/05, Optional 12/01/03
@ 100.00, FGIC Aaa/AAA 77,255
250,000 5.05%, 12/01/13, Optional 12/01/07
@ 100.00, MBIA Aaa/AAA 251,133
100,000 San Miguel & Montrose Counties, School
District R-2J, 5.00%, 12/01/12, Optional
12/01/07 @ 100.00, MBIA Aaa/AAA 101,593
250,000 San Miguel County School District R-1,
5.50%, 12/01/12, Optional 12/01/05
@ 101.00, MBIA Aaa/AAA 259,805
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 251,692
1,000,000 Summit County School District Re-1, 6.55%, 12/01/09,
Prerefunded 12/01/04
@ 100.00, FGIC Aaa/AAA 1,120,750
250,000 Thornton, Adams County, Water,
6.00% , 12/01/05, Optional 12/01/02
@ 101.00, FGIC Aaa/AAA 267,965
135,000 Three Lakes Water & Sanitation District,
Grand County Limited Tax, 6.00%,
06/01/00, Optional 12/01/99
@ 101.00, MBIA Aaa/AAA 138,089
115,000 Upper San Juan Hospital District,
Archuleta, Hinsdale & Mineral Counties,
4.65%, 11/01/13, Optional 11/01/07
@ 100.00, MBIA Aaa/AAA 112,629
150,000 Weld County School District Re-4,
5.30%, 12/01/10, Optional 12/01/05
@ 100.00, MBIA Aaa/AAA 155,446
Weld County School District 6:
250,000 5.50%, 12/01/06 Aa3/AA 268,412
250,000 5.20%, 12/01/10, Optional 12/01/07
@ 101.00 Aa3/AA 260,295
100,000 Woodland Park, Teller County, Water,
6.30%, 07/01/08, Optional 07/01/00
@ 101.00, FGIC Aaa/AAA 103,877
125,000 Woodmoor Water & Sanitation District 1,
El Paso County, 6.20%, 12/01/00,
Optional 12/01/99 @ 100.00, MBIA Aaa/AAA 125,027
250,000 Wray Community Hospital District,
Yuma County, 5.00%, 10/15/11, Optional
10/15/04 @ 100.00, AMBAC Aaa/AAA 252,843
250,000 Yuma Hospital District,Yuma County,
4.95%, 11/01/14, Optional 11/01/07
@ 100.00, MBIA Aaa/AAA 251,668
------------
TOTAL GENERAL OBLIGATION BONDS
(Cost $28,776,570) 29,147,809
------------
36
<PAGE>
WESTCORE COLORADO TAX-EXEMPT FUND
May 28, 1999 (CONTINUED)
Shares or Bond
Principal Rating* Market
Amount Moody's/S&P Value
- ------ ----------- -----
REVENUE BONDS 26.86%
- ----------------------------------------------------------------------------------------------------
EDUCATION 1.03%
- ----------------------------------------------------------------------------------------------------
$ 100,000 State of Colorado Department of Higher
Education by State Board for Community
Colleges & Occupational Education,
5.20%, 11/01/03, Prerefunded 11/01/02
@ 100.00, AMBAC Aaa/AAA $ 103,900
100,000 University of Colorado Board of Regents,
Auxiliary Facilities, 6.50%, 06/01/01,
Prerefunded 06/01/00 @ 101.00 A1/NR 104,057
250,000 University of Northern Colorado Board of
Trustees, Auxiliary Facilities System,
5.00%, 06/01/03, MBIA Aaa/AAA 259,267
------------
467,224
------------
PUBLIC FACILITIES 0.47%
- ----------------------------------------------------------------------------------------------------
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 213,256
SPECIAL TAX 10.86%
- ----------------------------------------------------------------------------------------------------
250,000 Avon, Eagle County Sales Tax Revenue,
4.20%, 09/15/09, MBIA Aaa/AAA 244,020
500,000 Boulder County Open Space Sales & Use Tax,
5.75%, 12/15/04, FGIC Aaa/AAA 540,035
250,000 Boulder Urban Renewal Authority Tax
Increment, 6.00%, 03/01/02, Optional
03/01/00 @ 101.00, MBIA Aaa/AAA 257,235
250,000 Breckenridge, Summit County Excise Tax,
5.20%, 12/01/01, Optional 12/01/00
@ 101.00, MBIA Aaa/AAA 257,893
200,000 Castle Rock, Douglas County Sales & Use Tax,
5.25%, 06/01/06, FSA Aaa/AAA 211,516
100,000 Commerce City, Adams County Sales &
Use Tax, 5.375%, 08/01/07, Optional
08/01/03 @ 101.00, MBIA Aaa/AAA 104,626
250,000 Douglas County Sales & Use Tax,
5.25%, 10/15/07, Optional 10/15/06
@ 100.00, MBIA Aaa/AAA 262,452
500,000 Fort Collins, Larimer County Sales &
Use Tax, 4.90%, 06/01/01, FGIC Aaa/AAA 511,345
250,000 Glenwood Springs, Garfield County
Sales & Use Tax, 4.25%, 10/01/10,
Optional 10/01/09 @ 101.00, MBIA Aaa/AAA 241,250
250,000 Greeley, Weld County Sales & Use Tax,
4.80%, 10/01/15, Optional 10/01/08
@ 100.00, MBIA Aaa/AAA 242,545
150,000 Ignacio, La Plata County Sales Tax,
4.75%, 12/01/09, AMBAC Aaa/AAA 151,983
500,000 Jefferson County Open Space Sales & Use Tax,
5.00%, 11/01/12, Optional 11/01/09
@ 100.00, FGIC(2) Aaa/AAA 503,620
150,000 Lafayette, Boulder County Sales &
Use Tax, 6.40%, 11/15/04, Prerefunded
11/15/01 @ 100.00, AMBAC Aaa/AAA 159,633
250,000 Lakewood, Jefferson County Sales & Use Tax
4.70%, 12/01/12, Optional 12/01/09
@ 100.00 NR/AA 241,695
100,000 Las Animas County Sales & Use Tax,
4.75%, 12/01/06, Asset Guaranty NR/AA 101,000
250,000 Louisville, Boulder County Sales Tax Revenue
4.85%, 12/01/04, Optional 12/01/03
@ 101.00, FSA Aaa/AAA 259,410
150,000 Montrose, Montrose County General Fund
Excise Tax Revenue, 5.00%, 12/01/17,
Optional 12/01/08 @ 100.00, AMBAC Aaa/AAA 148,748
250,000 Thornton, Adams County Sales & Use Tax,
4.75%, 03/01/07, AMBAC Aaa/AAA 254,860
250,000 Vail, Eagle County Sales Tax Revenue,
4.40%, 12/01/09, Optional 12/01/08
@ 100.00, MBIA Aaa/AAA 247,265
-------------
4,941,131
-------------
TRANSPORTATION 0.56%
- ----------------------------------------------------------------------------------------------------
250,000 Colorado Springs, El Paso County Airport
System, 5.10%, 01/01/10, Optional 01/01/06
@ 101.00, MBIA Aaa/AAA 255,832
-------------
37
<PAGE>
WESTCORE COLORADO TAX-EXEMPT FUND
May 28, 1999 (CONTINUED)
Shares or Bond
Principal Rating* Market
Amount Moody's/S&P Value
- ------ ----------- -----
UTILITY 13.95%
- ----------------------------------------------------------------------------------------------------
$ 150,000 Berthoud, Larimer & Weld Counties, Water
Enterprise, 5.00%, 10/15/09, Optional
10/15/07 @ 100.00, FSA Aaa/AAA $ 154,758
Boulder, Boulder County Water & Sewer:
75,000 5.75%, 12/01/06, Optional 12/01/02
@ 100.00 Aa2/AA+ 79,131
500,000 5.50%, 12/01/11, Optional 12/01/06
@ 100.00 Aa2/AA+ 529,600
500,000 5.125%, 12/01/12, Optional 12/01/09
@ 100.00 Aa2/AA+ 511,625
250,000 Central Weld County Water District,
5.25%, 12/01/05, Optional 12/01/03
@ 100.00, MBIA Aaa/AAA 261,410
Colorado Springs, El Paso County
Utilities Systems:
100,000 6.40%, 11/15/02, Optional 11/15/01
@ 102.00 Aa2/AA 107,582
250,000 5.75%, 11/15/10, Optional 11/15/06
@ 100.00 Aa2/AA 267,007
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 208,414
250,000 Fort Collins, Larimer County Wastewater
Utility Enterprise Sewer, 5.375%, 12/01/09,
Optional 12/01/05 @ 100.00, FGIC Aaa/AAA 260,648
500,000 Fort Collins, Larimer County Water
Utility Enterprise, 4.25%, 12/01/09,
Optional 12/01/08 @ 100.00, FSA Aaa/AAA 486,355
100,000 Lafayette, Boulder County Sewer,
4.95%, 09/01/05, FGIC Aaa/AAA 104,476
500,000 Little Thompson Water District, Larimer,
Weld & Boulder Counties, 5.50%, 12/01/11,
Optional 12/01/05 @ 101.00, MBIA Aaa/AAA 527,335
500,000 Mesa County, Sewer,
5.85%, 11/01/05, Optional 11/01/02
@ 100.00, FGIC Aaa/AAA 528,495
500,000 Metropolitan Denver Sewage Disposal
District 1, Sewer, 5.45%, 04/01/03,
Escrowed to Maturity Aaa/AAA 526,280
Municipal Subdistrict, Northern Colorado
Water Conservancy District:
500,000 5.85%, 12/01/02, AMBAC Aaa/AAA 531,510
250,000 5.25%, 12/01/15, Optional 12/01/07
@ 100.00, AMBAC Aaa/AAA 253,427
Platte River Power Authority:
100,000 Series BB, 5.75%, 06/01/04, Optional
06/01/02 @ 102.00 Aa3/A+ 106,278
500,000 Series DD, 5.75%, 06/01/04, MBIA Aaa/AAA 536,310
250,000 Ute Water Conservancy District, Mesa County,
4.80%, 06/15/02, MBIA Aaa/AAA 256,617
100,000 Westminster, Adams County Water &
Wastewater Utility Enterprise,
6.25%, 12/01/14, Optional 12/01/04
@ 100.00, AMBAC Aaa/AAA 109,115
------------
6,346,373
------------
TOTAL REVENUE BONDS
(Cost $11,997,037) 12,223,816
------------
MUTUAL FUNDS 3.52%
- ----------------------------------------------------------------------------------------------------
1,603,602 Dreyfus Municipal Money Market Fund 1,603,602
------------
TOTAL MUTUAL FUNDS
(Cost $1,603,602) 1,603,602
------------
TOTAL INVESTMENTS
(Cost $44,521,397) 99.24% $ 45,160,180
Other Assets in Excess
of Liabilities 0.76% 345,338
------------------------------
NET ASSETS 100.00% $ 45,505,518
------------------------------
------------------------------
</TABLE>
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.
(2)When-issued security settling 06/03/99.
(3)$607,242 of this amount is segregated to fulfill the Fund's commitment to
when-issued securities.
(4)Security exempt from registration under Rule 4(2) of the Securities Act of
1933 and not subject to the Fund's investment limitations in other investment
companies.
See Notes to Financial Statements.
38
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES Westcore Funds Annnual Report May 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Westcore Westcore Westcore Westcore
MIDCO Growth Blue Mid-Cap
Growth and Income Chip Opportunity
Fund Fund Fund Fund
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments at value
(cost - see below) $ 298,198,145 $ 12,804,924 $ 71,824,055 $ 2,579,491
- see accompanying statements
Receivable for investments sold 9,636,724 0 1,358,038 0
Dividends and interest receivable 228,409 7,895 72,156 3,616
Receivable for fund shares subscribed 21,927,512 100 5,302 50
Prepaid and other assets 295,098 8,037 17,468 9,824
- ----------------------------------------------------------------------------------------------------------------------------------
Total Assets 330,285,888 12,820,956 73,277,019 2,592,981
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Collateral received from broker for securities
lending transactions 50,323,300 0 3,790,900 0
Payable for investments purchased 1,085,751 0 0 0
Payable for fund shares redeemed 255,212 3,871 30,765 0
Payable for investment advisory fee 98,359 1,113 25,742 0
Payable for administration fee 67,047 2,614 15,410 0
Payable for trustees fees 213,356 5,449 13,662 16
Other payables 318,689 19,144 46,592 7,736
- ----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 52,361,714 32,191 3,923,071 7,752
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 277,924,174 $ 12,788,765 $ 69,353,948 $ 2,585,229
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $ 133,682,099 $ 7,221,979 $ 45,263,437 $ 2,602,838
(Over)/Undistributed net investment income (69,691) (207,993) (135,816) (1,839)
Accumulated net realized gain/(loss)
on investment transactions 76,540,747 1,499,754 5,894,837 (204,282)
Net unrealized appreciation on investments 67,771,019 4,275,025 18,331,490 188,512
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 277,924,174 $ 12,788,765 $ 69,353,948 $ 2,585,229
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Net Assets $ 277,924,174 $ 12,788,765 $ 69,353,948 $ 2,585,229
Shares of beneficial interest outstanding 13,873,758 1,039,609 4,026,315 234,032
Net asset value and redemption price per share $ 20.03 $ 12.30 $ 17.23 $ 11.05
- ----------------------------------------------------------------------------------------------------------------------------------
COST OF INVESTMENTS $ 230,427,126 $ 8,529,899 $ 53,492,565 $ 2,390,979
<CAPTION>
Westcore Westcore Westcore Westcore
Small-Cap Long-Term Intermediate- Colorado
Opportunity Bond Term Bond Tax-Exempt
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investments at value
(cost - see below) $ 88,392,736 $ 21,543,473 $ 40,625,372 $ 45,160,180
- see accompanying statements
Receivable for investments sold 1,238,045 0 0 0
Dividends and interest receivable 75,223 314,024 553,479 871,626
Receivable for fund shares subscribed 1,590,007 74,143 9,810 2,350
Prepaid and other assets 28,148 5,078 29,331 12,515
- ----------------------------------------------------------------------------------------------------------------------------------
Total Assets 91,324,159 21,936,718 41,217,992 46,046,671
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Collateral received from broker for securities
lending transactions 430,100 113,300 0 0
Payable for investments purchased 2,102,364 0 0 509,497
Payable for fund shares redeemed 59,706 0 4,831 0
Payable for investment advisory fee 30,870 0 8,967 0
Payable for administration fee 19,158 3,178 9,069 6,582
Payable for trustees fees 6,335 5,626 17,398 3,975
Other payables 41,019 16,861 22,257 21,099
- ----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 2,689,552 138,965 62,522 541,153
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 88,634,607 $ 21,797,753 $ 41,155,470 $ 45,505,518
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $ 97,330,064 $ 20,998,109 $ 41,996,987 $ 44,889,096
(Over)/Undistributed net investment income 76,006 10,497 20,107 15,571
Accumulated net realized gain/(loss)
on investment transactions (9,983,840) 154,802 (1,109,092) (37,932)
Net unrealized appreciation on investments 1,212,377 634,345 247,468 638,783
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 88,634,607 $ 21,797,753 $ 41,155,470 $ 45,505,518
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Net Assets $ 88,634,607 $ 21,797,753 $ 41,155,470 $ 45,505,518
Shares of beneficial interest outstanding 4,393,084 2,207,760 4,006,888 4,134,256
Net asset value and redemption price per share $ 20.18 $ 9.87 $ 10.27 $ 11.01
- ----------------------------------------------------------------------------------------------------------------------------------
COST OF INVESTMENTS $ 87,180,359 $ 20,909,128 $ 40,377,904 $ 44,521,397
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
39
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS Westcore Funds Annnual Report May 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Westcore Westcore Westcore Westcore
MIDCO Growth Blue Mid-Cap
Growth and Income Chip Opportunity
Fund Fund Fund Fund~
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 2,032,392 $ 152,917 $ 908,392 $ 19,031
Interest 2,330 2,371 4,606 341
Other Income 173,003 1,694 6,866 0
- -----------------------------------------------------------------------------------------------------------
Total Income 2,207,725 156,982 919,864 19,372
- -----------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 2,787,970 86,763 446,804 12,726
Administrative fees 1,286,755 40,045 206,217 5,090
Transfer agent fees 330,693 39,603 67,384 2,809
Fund accounting fees and expenses 141,712 33,069 32,762 22,450
Legal fees 214,887 4,993 31,658 25,557
Printing expenses 145,383 2,315 17,310 582
Registration fees 5,415 12,635 19,855 9,600
Audit fees 21,748 8,673 9,562 5,290
Custodian fees 101,210 4,120 12,715 5,482
Amortization of organization costs 0 0 0 0
Insurance 12,369 0 5,453 480
Trustee fees and expenses 68,717 1,910 8,348 188
Other 0 0 1,435 220
- -----------------------------------------------------------------------------------------------------------
Total expenses before waivers 5,116,859 234,126 859,503 90,474
Expenses waived by:
Investment adviser (196,466) (74,637) (63,138) (12,726)
Administrators (14,788) (5,522) (4,685) (5,089)
Expenses reimbursed by:
Investment adviser 0 0 0 (51,448)
- -----------------------------------------------------------------------------------------------------------
Net Expenses 4,905,605 153,967 791,680 21,211
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (2,697,880) 3,015 128,184 (1,839)
- -----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
investment transactions 120,340,722 1,309,173 9,307,773 (204,282)
Unrealized appreciation/(depreciation)
on investments
Beginning of period 143,835,335 4,999,146 23,180,332 (255,667)
End of period 67,771,019 4,275,025 18,331,490 188,512
Change in net unrealized appreciation or
depreciation of investments (76,064,316) (724,121) (4,848,842) 444,179
- -----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS 44,276,406 585,052 4,458,931 239,897
- -----------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 41,578,526 $ 588,067 $ 4,587,115 $ 238,058
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
Westcore Westcore Westcore Westcore
Small-Cap Long-Term Intermediate- Colorado
Opportunity Bond Term Bond Tax-Exempt
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 1,379,914 $ 0 $ 0 $ 0
Interest 46,526 1,354,705 2,987,708 1,842,687
Other Income 5,420 0 0 0
- -----------------------------------------------------------------------------------------------------------
Total Income 1,431,860 1,354,705 2,987,708 1,842,687
- -----------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 854,659 94,893 204,544 194,101
Administrative fees 256,398 63,262 136,363 116,460
Transfer agent fees 87,739 21,699 23,876 17,367
Fund accounting fees and expenses 35,753 30,843 31,733 48,061
Legal fees 43,800 8,506 16,737 18,672
Printing expenses 23,182 4,587 11,058 9,789
Registration fees 18,191 16,245 12,635 0
Audit fees 10,183 6,914 9,800 8,266
Custodian fees 41,985 5,057 5,300 4,984
Amortization of organization costs 9,658 0 0 0
Insurance 1,819 1,819 47 1,813
Trustee fees and expenses 8,416 2,559 5,589 3,941
Other 3,654 0 0 1,435
- -----------------------------------------------------------------------------------------------------------
Total expenses before waivers 1,395,437 256,384 457,682 424,889
Expenses waived by:
Investment adviser (269,418) (50,699) (63,751) (194,101)
Administrators (14,300) (4,859) (6,095) (23,655)
Expenses reimbursed by:
Investment adviser 0 0 0 0
- -----------------------------------------------------------------------------------------------------------
Net Expenses 1,111,719 200,826 387,836 207,133
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 320,141 1,153,879 2,599,872 1,635,554
- -----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
investment transactions (9,932,871) 249,152 625,934 7,767
Unrealized appreciation/(depreciation)
on investments
Beginning of period 8,993,390 1,945,921 1,682,395 1,030,648
End of period 1,212,377 634,345 247,468 638,783
Change in net unrealized appreciation or
depreciation of investments (7,781,013) (1,311,576) (1,434,927) (391,865)
- -----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS (17,713,884) (1,062,424) (808,993) (384,098)
- -----------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (17,393,743) $ 91,455 $ 1,790,879 $ 1,251,456
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
</TABLE>
~ For the period October 1, 1998 (inception of offering) to May 28, 1999.
SEE NOTES TO FINANCIAL STATEMENTS
40
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Westcore Funds Annual Report May 28, 1999
<TABLE>
<CAPTION>
WESTCORE MIDCO GROWTH FUND
------------------------------------
For the Year Ended
------------------------------------
May 28, 1999 May 29, 1998
--------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ (2,697,880) $ (4,523,699)
Net realized gain/(loss) from investment transactions 120,340,722 120,992,876
Change in unrealized net appreciation or depreciation of investments (76,064,316) (27,287,692)
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 41,578,526 89,181,485
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income 0 0
From net realized gain from investment transactions (59,679,953) (84,245,727)
- -------------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (59,679,953) (84,245,727)
- -------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 844,280,146 541,305,083
Shares issued in reinvestment of dividends and distributions 58,662,082 81,419,112
- -------------------------------------------------------------------------------------------------------------------
902,942,228 622,724,195
Shares redeemed (1,172,209,867) (652,374,393)
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions (269,267,639) (29,650,198)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (287,369,066) (24,714,440)
NET ASSETS:
Beginning of period 565,293,240 590,007,680
- -------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
($69,691) and ($1,030,830), respectively.) $ 277,924,174 $ 565,293,240
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE GROWTH AND INCOME FUND
------------------------------------
For the Year Ended
------------------------------------
May 28, 1999 May 29, 1998
--------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 3,015 $ 67,141
Net realized gain/(loss) from investment transactions 1,309,173 4,495,635
Change in unrealized net appreciation or depreciation of investments (724,121) (1,214,885)
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 588,067 3,347,891
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (11,775) (87,477)
From net realized gain from investment transactions (2,111,698) (2,061,541)
- -------------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (2,123,473) (2,149,018)
- -------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 3,628,138 2,719,029
Shares issued in reinvestment of dividends and distributions 1,946,533 1,872,758
- -------------------------------------------------------------------------------------------------------------------
5,574,671 4,591,787
Shares redeemed (6,410,593) (11,355,464)
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions (835,922) (6,763,677)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (2,371,328) (5,564,804)
NET ASSETS:
Beginning of period 15,160,093 20,724,897
- -------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
($207,993) and ($199,233), respectively.) $ 12,788,765 $ 15,160,093
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
see notes to financial statements
41
<PAGE>
<TABLE>
<CAPTION>
WESTCORE BLUE CHIP FUND
------------------------------------
For the Year Ended
------------------------------------
May 28, 1999 May 29, 1998
--------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 128,184 $ 398,024
Net realized gain/(loss) from investment transactions 9,307,773 13,222,160
Change in unrealized net appreciation or depreciation of investments (4,848,842) 3,404,571
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 4,587,115 17,024,755
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (245,375) (452,695)
From net realized gain from investment transactions (9,695,337) (12,258,397)
- -------------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (9,940,712) (12,711,092)
- -------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 36,867,428 25,842,217
Shares issued in reinvestment of dividends and distributions 9,102,447 11,179,268
- -------------------------------------------------------------------------------------------------------------------
45,969,875 37,021,485
Shares redeemed (43,739,132) (35,308,645)
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 2,230,743 1,712,840
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (3,122,854) 6,026,503
NET ASSETS:
Beginning of period 72,476,802 66,450,299
- -------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
($135,816) and ($18,625), respectively.) $ 69,353,948 $ 72,476,802
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE MID-CAP OPPORTUNITY FUND
------------------------------------
For the Period
October 1, 1998
(inception)
to May 28, 1999
---------------
<S> <C>
OPERATIONS
Net investment income/(loss) $ (1,839)
Net realized gain/(loss) from investment transactions (204,282)
Change in unrealized net appreciation or depreciation of investments 444,179
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 238,058
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income 0
From net realized gain from investment transactions 0
- -------------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions 0
- -------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares issued in connection with the conversion of a separately managed
investment partnership (Note 5) 2,211,243
Shares sold 410,700
Shares issued in reinvestment of dividends and distributions 0
- -------------------------------------------------------------------------------------------------------------------
2,621,943
Shares redeemed (274,772)
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 2,347,171
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 2,585,229
NET ASSETS:
Beginning of period 0
- -------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
($1,839) $ 2,585,229
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
see notes to financial statements
42
<PAGE>
<TABLE>
<CAPTION>
WESTCORE SMALL-CAP OPPORTUNITY FUND
------------------------------------
For the Year Ended
------------------------------------
May 28, 1999 May 29, 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 320,141 $ 14,691
Net realized gain/(loss) from investment transactions (9,932,871) 8,453,552
Change in unrealized net appreciation or depreciation of investments (7,781,013) 2,626,428
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (17,393,743) 11,094,671
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (214,664) (52,827)
From net realized gain from investment transactions (5,243,231) (6,466,938)
- -------------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (5,457,895) (6,519,765)
- -------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 126,319,438 27,101,036
Shares issued in reinvestment of dividends and distributions 5,052,143 5,658,612
- -------------------------------------------------------------------------------------------------------------------
131,371,581 32,759,648
Shares redeemed (80,954,679) (12,226,884)
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 50,416,902 20,532,764
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 27,565,264 25,107,670
NET ASSETS:
Beginning of period 61,069,343 35,961,673
- -------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income
of $76,006 and ($29,471), respectively.) $ 88,634,607 $ 61,069,343
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE LONG-TERM BOND FUND
------------------------------------
For the Year Ended
------------------------------------
May 28, 1999 May 29, 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 1,153,879 $ 1,042,738
Net realized gain/(loss) from investment transactions 249,152 274,029
Change in unrealized net appreciation or depreciation of investments (1,311,576) 1,396,259
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 91,455 2,713,026
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (1,159,592) (1,045,049)
From net realized gain from investment transactions (125,218) (432,601)
- -------------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (1,284,810) (1,477,650)
- -------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 9,688,176 3,125,855
Shares issued in reinvestment of dividends and distributions 1,237,129 1,411,449
- -------------------------------------------------------------------------------------------------------------------
10,925,305 4,537,304
Shares redeemed (6,400,461) (7,466,668)
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 4,524,844 (2,929,364)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 3,331,489 (1,693,988)
NET ASSETS:
Beginning of period 18,466,264 20,160,252
- -------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income
of $10,497 and $16,210 respectively.) $ 21,797,753 $ 18,466,264
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
see notes to financial statements
43
<PAGE>
<TABLE>
<CAPTION>
WESTCORE INTERMEDIATE-TERM BOND FUND
------------------------------------
For the Year Ended
------------------------------------
May 28, 1999 May 29, 1998
--------------- ----------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 2,599,872 $ 3,076,508
Net realized gain/(loss) from investment transactions 625,934 48,444
Change in unrealized net appreciation or depreciation of investments (1,434,927) 1,492,690
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 1,790,879 4,617,642
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (2,621,050) (3,079,017)
From net realized gain from investment transactions 0 (495)
- -------------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (2,621,050) (3,079,512)
- -------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 21,346,730 13,139,252
Shares issued in reinvestment of dividends and distributions 2,260,587 2,564,832
- -------------------------------------------------------------------------------------------------------------------
23,607,317 15,704,084
Shares redeemed (31,780,894) (30,251,535)
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions (8,173,577) (14,547,451)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (9,003,748) (13,009,321)
NET ASSETS:
Beginning of period 50,159,218 63,168,539
- -------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of $20,107 and $41,285, respectively.) $ 41,155,470 $ 50,159,218
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE COLORADO TAX-EXEMPT FUND
-----------------------------------
For the Year Ended
-----------------------------------
May 28, 1999 May 29, 1998
--------------- ----------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 1,635,554 $ 1,183,344
Net realized gain/(loss) from investment transactions 7,767 (14,054)
Change in unrealized net appreciation or depreciation of investments (391,865) 617,993
- ------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 1,251,456 1,787,283
- ------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (1,638,237) (1,181,159)
From net realized gain from investment transactions 0 0
- ------------------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (1,638,237) (1,181,159)
- ------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 20,250,156 13,594,537
Shares issued in reinvestment of dividends and distributions 1,257,593 888,955
------------------------------------------------------------------------------------------------------------------
21,507,749 14,483,492
Shares redeemed (7,116,914) (4,935,811)
- ------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 14,390,835 9,547,681
- ------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 14,004,054 10,153,805
NET ASSETS:
Beginning of period 31,501,464 21,347,659
- ------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of $15,571 and $18,254, respectively.) $ 45,505,518 $ 31,501,464
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
see notes to financial statements
44
<PAGE>
FINANCIAL HIGHLIGHTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
<TABLE>
<CAPTION>
Selected data for a share of beneficial interest WESTCORE MIDCO GROWTH FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
May 28, May 29, May 30,
------------ ------------ ------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value - beginning of the period $20.54 $20.92 $22.90
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.23) (0.17) (0.15)
Net realized and unrealized gain/(loss) on investments 2.22 3.03 1.19
- --------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 1.99 2.86 1.04
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.00) (0.00) (0.00)
Distributions from net realized gain on investments (2.50) (3.24) (3.02)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (2.50) (3.24) (3.02)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $20.03 $20.54 $20.92
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total return 11.87% 15.10% 5.27%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $277,924 $565,293 $590,008
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.15% 1.13% 1.14%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.19% 1.13% 1.14%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets (0.63)% (0.71)% (0.70)%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.68)% (0.71)% (0.71)%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 116.46% 75.79% 60.78%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Selected data for a share of beneficial interest WESTCORE MIDCO GROWTH FUND
outstanding throughout the period indicated: ------------------------------------------------------------------------
Institutional Shares Retail Shares
----------------------------------- ----------------------------------
For the For the
Year Ended Period Ended
May 31, May 31,
----------------------------------- ----------------------------------
1996 1995 1996* 1995
---------------- --------------- -------------- ----------------
<S> <C> <C> <C> <C>
Net asset value - beginning of the period $17.12 $16.09 $17.10 $16.10
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.08) 0.00 (0.01) (0.03)
Net realized and unrealized gain/(loss) on investments 6.58 1.56 3.12 1.56
- ------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 6.50 1.56 3.11 1.53
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.00) (0.00) (0.00) (0.00)
Distributions from net realized gain on investments (0.72) (0.53) (0.00) (0.53)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.72) (0.53) (0.00) (0.53)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $22.90 $17.12 $20.21 $17.10
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total return 38.62% 10.05% 18.19% 9.78%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $656,490 $401,760 $30,827 $25,677
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.08% 0.94% 1.16%(2) 1.19%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.10% 0.96% 1.17%(2) 1.21%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets (0.42)% (0.03)% (0.24)%(2) (0.28)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.44)% (0.05)% (0.26)%(2) (0.30)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 62.83% 50.19% 62.83% 50.19%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</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 period ended
May 28, 1999 were $472,523,632 and $816,019,036, respectively.
(2)Annualized.
* For the period June 1, 1995 to September 30, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
FINANCIAL HIGHLIGHTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
<TABLE>
<CAPTION>
Selected data for a share of beneficial interest WESTCORE GROWTH AND INCOME FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
May 28, May 29, May 30,
------------ ------------ ------------
1999(3) 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value - beginning of the period $13.74 $13.03 $12.32
- -------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.00(4) 0.01 0.07
Net realized and unrealized gain/(loss) on investments 0.66 2.54 2.19
- -------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.66 2.55 2.26
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.01) (0.07) (0.11)
Distributions from net realized gain on investments (2.09) (1.77) (1.44)
- -------------------------------------------------------------------------------------------------------------------
Total distributions (2.10) (1.84) (1.55)
- -------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $12.30 $13.74 $13.03
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Total return 6.25% 20.74% 19.71%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $12,789 $15,160 $20,725
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.15% 1.15% 1.15%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.75% 1.71% 1.56%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 0.02% 0.40% 0.75%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.58)% (0.16)% 0.33%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 72.59% 41.40% 39.80%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Selected data for a share of beneficial interest WESTCORE GROWTH AND INCOME FUND
outstanding throughout the period indicated: ------------------------------------------------------------------------
Institutional Shares Retail Shares
----------------------------------- ----------------------------------
For the For the
Year Ended Period Ended
May 31, May 31,
----------------------------------- ----------------------------------
1996 1995 1996* 1995
---------------- --------------- -------------- ----------------
<S> <C> <C> <C> <C>
Net asset value - beginning of the period $10.50 $10.62 $10.51 $10.63
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.15 0.20 0.05 0.19
Net realized and unrealized gain/(loss) on investments 2.57 0.15 0.72 0.14
- ------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 2.72 0.35 0.77 0.33
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.24) (0.21) (0.06) (0.19)
Distributions from net realized gain on investments (0.66) (0.26) (0.00) (0.26)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.90) (0.47) (0.06) (0.45)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $12.32 $10.50 $11.22 $10.51
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total return 27.25% 3.73% 7.35% 3.48%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $25,387 $27,029 $3,921 $3,871
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.22% 1.17% 1.58%(2) 1.41%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.51% 1.22% 1.61%(2) 1.47%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 1.34% 2.09% 1.40%(2) 1.86%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 1.05% 2.04% 1.37%(2) 1.80%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 88.31% 81.14% 88.31% 81.14%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</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 period ended
May 28, 1999 were $9,324,065 and $11,974,565, respectively.
(2)Annualized.
(3)Per share amounts calculated based on the average shares outstanding during
the period.
(4)Less than $.005 per share.
* For the period June 1, 1995 to September 30, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
FINANCIAL HIGHLIGHTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
<TABLE>
<CAPTION>
Selected data for a share of beneficial interest WESTCORE BLUE CHIP FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
May 28, May 29, May 30,
------------ ------------ ------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value - beginning of the period $18.81 $18.15 $17.41
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.04 0.13 0.19
Net realized and unrealized gain/(loss) on investments 1.07 4.66 3.65
- --------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 1.11 4.79 3.84
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.07) (0.14) (0.22)
Distributions from net realized gain on investments (2.62) (3.99) (2.88)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (2.69) (4.13) (3.10)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $17.23 $18.81 $18.15
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total return 7.42% 29.53% 24.28%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $69,354 $72,477 $66,450
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.15% 1.15% 1.15%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.25% 1.23% 1.21%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 0.19% 0.60% 1.02%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 0.09% 0.52% 0.97%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 73.39% 48.50% 43.47%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Selected data for a share of beneficial interest WESTCORE BLUE CHIP FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the
Year Ended
May 31,
-------------------------------------------------
1996 1995
-------------------- ----------------------
<S> <C> <C>
Net asset value - beginning of the period $14.70 $12.70
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.25 0.23
Net realized and unrealized gain/(loss) on investments 4.03 2.12
- --------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 4.28 2.35
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.27) (0.16)
Distributions from net realized gain on investments (1.30) (0.19)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (1.57) (0.35)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $17.41 $14.70
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total return 30.48% 19.03%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $68,286 $52,545
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.10% 1.01%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.25% 1.06%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 1.52% 1.78%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 1.38% 1.73%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 65.11% 61.72%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
</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 period ended
May 28, 1999 were $48,287,791 and $55,786,517, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
FINANCIAL HIGHLIGHTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
<TABLE>
<CAPTION>
Selected data for a share of beneficial interest WESTCORE MID-CAP OPPORTUNITY FUND
outstanding throughout the period indicated: ---------------------------------
For the
Period Ended
May 28,
1999*
---------------------------------
<S> <C>
Net asset value - beginning of the period $10.00
- ------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.01)
Net realized and unrealized gain/(loss) on investments 1.06
- ------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 1.05
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income 0.00
Distributions from net realized gain on investments 0.00
- ------------------------------------------------------------------------------------------------------------
Total distributions 0.00
- ------------------------------------------------------------------------------------------------------------
Net asset value - end of period $11.05
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Total return 10.50%
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $2,585
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.25%(2)
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 5.33%(2)
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets (0.11)%(2)
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets without fee waivers (4.19)%(2)
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 71.65%
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</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 period ended
May 28, 1999 were $4,245,771 and $1,737,775, respectively.
(2)Annualized.
*For the period October 1, 1998 (inception of offering) to May 28, 1999.
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
FINANCIAL HIGHLIGHTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
<TABLE>
<CAPTION>
Selected data for a share of beneficial interest WESTCORE SMALL-CAP OPPORTUNITY FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
May 28, May 29, May 30,
------------ ------------ ------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value - beginning of the period $26.71 $23.87 $21.35
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.08 0.01 0.03
Net realized and unrealized gain/(loss) on investments (5.35) 6.83 3.37
- --------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations (5.27) 6.84 3.40
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.05) (0.03) (0.02)
Distributions from net realized gain on investments (1.21) (3.97) (0.86)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (1.26) (4.00) (0.88)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $20.18 $26.71 $23.87
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total return (19.72)% 30.40% 16.28%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $88,635 $61,069 $35,962
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.30% 1.30% 1.30%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.63% 1.66% 1.69%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 0.37% 0.03% 0.11%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 0.04% (0.33)% (0.28)%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 82.47% 78.48% 77.73%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Selected data for a share of beneficial interest WESTCORE MIDCO GROWTH FUND
outstanding throughout the period indicated: ------------------------------------------------------------------------
Institutional Shares Retail Shares
----------------------------------- ----------------------------------
For the For the
Year Ended Period Ended
May 31, May 31,
----------------------------------- ----------------------------------
1996 1995 1996* 1995
---------------- --------------- -------------- ----------------
<S> <C> <C> <C> <C>
Net asset value - beginning of the period $15.95 $14.97 $15.95 $14.96
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.04 0.09 0.01 0.06
Net realized and unrealized gain/(loss) on investments 5.86 1.11 2.25 1.11
- ------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 5.90 1.20 2.26 1.17
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.06) (0.10) (0.02) (0.06)
Distributions from net realized gain on investments (0.44) (0.12) (0.00) (0.12)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.50) (0.22) (0.02) (0.18)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $21.35 $15.95 $18.19 $15.95
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total return 37.49% 8.15% 14.14% 7.96%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $23,951 $9,703 $1,072 $934
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.30% 1.27% 1.48%(2) 1.51%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 2.20% 2.77% 2.53%(2) 3.10%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 0.24% 0.61% 0.16%(2) 0.37%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.67)% (0.89)% (0.89)%(2) (1.22)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 47.83% 59.17% 47.83% 59.17%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</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 period ended
May 28, 1999 were $107,762,418 and $65,207,999, respectively.
(2)Annualized.
*For the period June 1, 1995 to September 30, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
FINANCIAL HIGHLIGHTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
<TABLE>
<CAPTION>
Selected data for a share of beneficial interest WESTCORE LONG-TERM BOND FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
May 28, May 29, May 30,
------------ ------------ ------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value - beginning of the period $10.36 $9.67 $9.59
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.57 0.60 0.62
Net realized and unrealized gain/(loss) on investments (0.43) 0.96 0.26
- --------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.14 1.56 0.88
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.57) (0.60) (0.63)
Distributions from net realized gain on investments (0.06) (0.27) (0.17)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (0.63) (0.87) (0.80)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $9.87 $10.36 $9.67
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total return 1.21% 16.63% 9.40%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $21,798 $18,466 $20,160
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.95% 0.95% 0.95%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.22% 1.23% 1.15%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 5.47% 5.87% 6.37%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 5.21% 5.58% 6.18%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 15.97% 11.05% 27.76%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Selected data for a share of beneficial interest WESTCORE LONG-TERM BOND FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the
Year Ended
May 31,
-------------------------------------------------
1996 1995
-------------------- ----------------------
<S> <C> <C>
Net asset value - beginning of the period $9.87 $9.22
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.61 0.59
Net realized and unrealized gain/(loss) on investments (0.27) 0.66
- --------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.34 1.25
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.62) (0.60)
Distributions from net realized gain on investments (0.00) (0.00)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (0.62) (0.60)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $9.59 $9.87
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total return 3.41% 14.37%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $25,070 $33,440
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.90% 0.94%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.07% 0.99%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 6.07% 6.54%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 5.90% 6.49%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 33.10% 25.09%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
</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 period ended
May 28, 1999 were $7,158,147 and $3,218,902, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
FINANCIAL HIGHLIGHTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
<TABLE>
<CAPTION>
Selected data for a share of beneficial interest WESTCORE INTERMEDIATE-TERM BOND FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
May 28, May 29, May 30,
------------ ------------ ------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value - beginning of the period $10.51 $10.23 $10.10
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.61 0.61 0.60
Net realized and unrealized gain/(loss) on investments (0.24) 0.28 0.13
- --------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.37 0.89 0.73
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.61) (0.61) (0.60)
Distributions from net realized gain on investments 0.00 (0.00) (0.00)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (0.61) (0.61) (0.60)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $10.27 $10.51 $10.23
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total return 3.54% 8.88% 7.43%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $41,155 $50,159 $63,169
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.85% 0.85% 0.85%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.01% 0.98% 0.97%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 5.72% 5.77% 5.81%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 5.57% 5.65% 5.68%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 24.68% 23.45% 27.47%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Selected data for a share of beneficial interest WESTCORE INTERMEDIATE-TERM BOND FUND
outstanding throughout the period indicated: ------------------------------------------------------------------------
Institutional Shares Retail Shares
----------------------------------- ----------------------------------
For the For the
Year Ended Period Ended
May 31, May 31,
----------------------------------- ----------------------------------
1996 1995 1996* 1995
---------------- --------------- -------------- ----------------
<S> <C> <C> <C> <C>
Net asset value - beginning of the period $10.27 $10.02 $10.27 $10.03
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.60 0.58 0.20 0.56
Net realized and unrealized gain/(loss) on investments (0.17) 0.27 0.04 0.26
- ------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.43 0.85 0.24 0.82
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.60) (0.60) (0.21) (0.58)
Distributions from net realized gain on investments (0.00) (0.00) (0.00) (0.00)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.60) (0.60) (0.21) (0.58)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $10.10 $10.27 $10.30 $10.27
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total return 4.26% 8.93% 2.34% 8.53%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $83,039 $97,619 $2,781 $2,571
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.81% 0.77% 0.95%(2) 0.99%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 0.92% 0.80% 0.97%(2) 1.02%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 5.78% 5.86% 5.74%(2) 5.64%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 5.67% 5.83% 5.72%(2) 5.61%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 71.97% 60.86% 71.97% 60.86%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</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 period ended
May 28, 1999 were $10,907,758 and $19,558,326, respectively.
(2)Annualized.
*For the period June 1, 1995 to September 30, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
51
<PAGE>
FINANCIAL HIGHLIGHTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
<TABLE>
<CAPTION>
Selected data for a share of beneficial interest WESTCORE COLORADO TAX-EXEMPT FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
May 28, May 29, May 30,
------------ ------------ ------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value - beginning of the period $11.06 $10.78 $10.61
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.47 0.50 0.50
Net realized and unrealized gain/(loss) on investments (0.05) 0.28 0.17
- --------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.42 0.78 0.67
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.47) (0.50) (0.50)
Distributions from net realized gain on investments 0.00 (0.00) (0.00)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (0.47) (0.50) (0.50)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $11.01 $11.06 $10.78
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total return 3.80% 7.32% 6.46%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $45,506 $31,501 $21,348
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.53% 0.50% 0.50%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.09% 1.17% 1.21%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 4.21% 4.54% 4.73%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 3.65% 3.87% 4.02%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 12.12% 24.94% 30.78%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Selected data for a share of beneficial interest WESTCORE COLORADO TAX-EXEMPT FUND
outstanding throughout the period indicated: --------------------------------------------------------
For the
Year Ended
May 31,
-------------------------------------------------
1996 1995
-------------------- ----------------------
<S> <C> <C>
Net asset value - beginning of the period $10.70 $10.52
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.52 0.52
Net realized and unrealized gain/(loss) on investments (0.10) 0.20
- --------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.42 0.72
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.51) (0.54)
Distributions from net realized gain on investments (0.00) (0.00)
- --------------------------------------------------------------------------------------------------------------------
Total distributions (0.51) (0.54)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $10.61 $10.70
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total return 3.97% 7.16%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $13,922 $10,792
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.44% 0.42%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.43% 1.62%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets 4.87% 5.03%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income/(loss) to average net assets
without fee waivers 3.88% 3.83%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 10.23% 3.15%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
</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 period
ended May 28, 1999 were $19,692,877 and $4,530,137, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
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 Growth and Income, Westcore Blue Chip,
Westcore Mid-Cap Opportunity, Westcore Small-Cap Opportunity, Westcore Long-Term
Bond, Westcore Intermediate-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 Growth and Income, Westcore
Small-Cap Opportunity 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 as of the close of
regular trading on the New York Stock Exchange (the "NYSE"), currently 4:00 p.m.
(Eastern time), on each day that the NYSE is open. 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 28, 1999 the
Westcore Mid-Cap Opportunity, Westcore Small-Cap Opportunity, Westcore
Intermediate-Term Bond and Westcore Colorado Tax-Exempt Funds had available for
federal income tax purposes unused capital loss carryovers of $53,504,
$2,328,989, $1,115,999 and $35,421, respectively, which will expire through
2007.
The Westcore Mid-Cap Opportunity and Westcore Small-Cap Opportunity Funds
intend to elect to defer to their fiscal year ending May 31, 2000, $150,778 and
$7,427,671 of losses, respectively, recognized during the period November 1,
1998 to May 28, 1999.
During the year ended May 28, 1999, the Westcore MIDCO Growth Fund had
redemption-in-kind transactions in the amounts of $163,612,554, based on the
fair market value of the individual securities within the portfolio. These
transactions resulted in short-term and long-term gains of $15,506,744 and
$28,537,817, respectively, which will be recognized as permanent differences 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 28, 1999, amounts have been reclassified to reflect an
accumulated net investment loss
53
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
which may not be offset against capital gains or carried forward for tax
purposes. In Westcore MIDCO Growth Fund net investment losses of $3,659,019 and
realized gains relating to redemption-in-kind transactions of $43,034,961 have
been reclassed to paid-in-capital.
DISTRIBUTIONS - Distributions of net investment income, if any, are
distributed annually for the Westcore MIDCO Growth Fund, quarterly for the
Westcore Growth and Income, Westcore Blue Chip, Westcore Mid-Cap Opportunity and
Westcore Small-Cap Opportunity Funds and monthly for the Westcore Long-Term
Bond, Westcore Intermediate-Term Bond, and Westcore Colorado Tax-Exempt Funds.
Distributions of net realized gains, if any, are declared at least once each
year for each of the Funds. 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 were amortized over sixty (60) months from the Funds' commencement
of operations and were fully amortized as of May 28, 1999.
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.
The risks to the Funds of securities lending are that the borrower may not
provide additional collateral when required or return the securities when due.
As of May 28, 1999, the value of securities loaned of the Westcore MIDCO Growth,
Westcore Blue Chip, Westcore Small-Cap Opportunity and Westcore Long-Term Bond
Funds amount to $48,261,288, $3,685,594, $400,563 and $108,104, respectively.
The value of collateral of the Westcore MIDCO Growth, Westcore Blue Chip,
Westcore Small Cap Opportunity and Westcore Long-Term Bond Funds amounts to
$50,327,635, $3,790,901, $430,156 and $113,300, respectively.
ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES - Trust expenses, which
are not series specific, are allocated to each series based upon its relative
proportion of net assets and/or open accounts to the Trust's totals. From
October 11, 1993 to September 30, 1995 the Westcore MIDCO Growth, Westcore
Growth and Income, Westcore Small-Cap Opportunity, 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.
WHEN-ISSUED SECURITIES - Each Fund may purchase or sell securities on a
"when issued" or "forward commitment" basis which involves a commitment by the
Fund to purchase or sell particular securities with payment and delivery taking
place at a future date. During this period, such securities do not earn
interest, are subject to market fluctuation and may increase or decrease in
value prior to their delivery. Each Fund maintains, in a segregated account with
its custodian, assets with a market value at least equal to the amount of its
purchase commitments. The purchase of securities on a when-issued or forward
commitment basis may increase the volatility of the Fund's net asset value to
the extent each Fund makes such purchases while remaining substantially fully
invested.
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.
54
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
On May 28, 1999, 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:
<TABLE>
<CAPTION>
WESTCORE MIDCO GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
For the Year Ended For the Year Ended
May 28, 1999 May 29, 1998
----------------------- -----------------------
<S> <C> <C>
Shares sold 43,718,217 24,794,907
Shares issued as reinvestment of dividends and distributions 3,448,682 4,328,501
- ------------------------------------------------------------------------------------------------------------------------------------
Total 47,166,899 29,123,408
Shares redeemed (60,812,161) (29,804,359)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares (13,645,262) (680,951)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE GROWTH AND INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
For the Year Ended For the Year Ended
May 28, 1999 May 29, 1998
----------------------- -----------------------
<S> <C> <C>
Shares sold 283,005 191,743
Shares issued as reinvestment of dividends and distributions 165,621 146,912
- ------------------------------------------------------------------------------------------------------------------------------------
Total 448,626 338,655
Shares redeemed (512,077) (825,837)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares (63,451) (487,182)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE BLUE CHIP FUND
- ------------------------------------------------------------------------------------------------------------------------------------
For the Year Ended For the Year Ended
May 28, 1999 May 29, 1998
----------------------- -----------------------
<S> <C> <C>
Shares sold 2,062,604 1,372,695
Shares issued as reinvestment of dividends and distributions 585,083 673,685
- ------------------------------------------------------------------------------------------------------------------------------------
Total 2,647,687 2,046,380
Shares redeemed (2,474,945) (1,853,818)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares 172,742 192,562
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE MID-CAP OPPORTUNITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
For the Period from
October 1, 1998 (inception)
to May 28, 1999
-------------------------
<S> <C>
Shares acquired from separately managed investment partnership 221,124
Shares sold 38,815
Shares issued as reinvestment of dividends and distributions 0
- ------------------------------------------------------------------------------------------------------------------------------------
Total 259,939
Shares redeemed (25,907)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares 234,032
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE>
2. SHARES OF BENEFICIAL INTEREST (CONTINUED)
<TABLE>
<CAPTION>
WESTCORE SMALL-CAP OPPORTUNITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
For the Year Ended For the Year Ended
May 28, 1999 May 29, 1998
----------------------- -----------------------
<S> <C> <C>
Shares sold 5,772,830 1,000,427
Shares issued as reinvestment of dividends and distributions 247,647 233,455
- ------------------------------------------------------------------------------------------------------------------------------------
Total 6,020,477 1,233,882
Shares redeemed (3,913,368) (454,614)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares 2,107,109 779,268
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE LONG-TERM BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
For the Year Ended For the Year Ended
May 28, 1999 May 29, 1998
----------------------- -----------------------
<S> <C> <C>
Shares sold 920,644 303,677
Shares issued as reinvestment of dividends and distributions 118,714 139,058
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,039,358 442,735
Shares redeemed (613,980) (745,987)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares 425,378 (303,252)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE INTERMEDIATE-TERM BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
For the Year Ended For the Year Ended
May 28, 1999 May 29, 1998
----------------------- -----------------------
<S> <C> <C>
Shares sold 2,029,671 1,255,088
Shares issued as reinvestment of dividends and distributions 215,203 245,907
- ------------------------------------------------------------------------------------------------------------------------------------
Total 2,244,874 1,500,995
Shares redeemed (3,008,242) (2,903,900)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares (763,368) (1,402,905)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WESTCORE COLORADO TAX-EXEMPT FUND
- ------------------------------------------------------------------------------------------------------------------------------------
For the Year Ended For the Year Ended
May 28, 1999 May 29, 1998
----------------------- -----------------------
<S> <C> <C>
Shares sold 1,811,592 1,234,556
Shares issued as reinvestment of dividends and distributions 112,684 80,926
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,924,276 1,315,482
Shares redeemed (636,979) (449,027)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares 1,287,297 866,455
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
56
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
3. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS (TAX BASIS)
<TABLE>
<CAPTION>
Westcore Westcore Westcore Westcore
MIDCO Growth Westcore Mid-Cap Small-Cap
Growth and Income Blue Chip Opportunity Opportunity
Fund Fund Fund Fund Fund
-------- ---------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
As of May 28, 1999
Gross appreciation (excess of value over tax cost) $ 74,620,228 $4,546,261 $18,864,829 $ 303,517 $ 8,792,724
Gross depreciation (excess of tax cost over value) (5,228,396) (271,236) (533,339) (115,005) (7,375,126)
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 69,391,832 $4,275,025 $18,331,490 $ 188,512 $ 1,417,598
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Cost of investments for income tax purposes $228,806,313 $8,529,899 $53,492,565 $2,390,979 $86,975,138
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Westcore Westcore Westcore
Long-Term Intermediate- Colorado
Bond Term Bond Tax-Exempt
Fund Fund Fund
--------- ------------- ----------
<S> <C> <C> <C>
As of May 28, 1999
Gross appreciation (excess of value over tax cost) $1,227,630 $ 546,664 $ 919,682
Gross depreciation (excess of tax cost over value) (593,285) (299,196) (280,899)
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 634,345 $ 247,468 $ 638,783
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Cost of investments for income tax purposes $20,909,128 $40,377,904 $44,521,397
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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 adviser to the Westcore Long-Term Bond
and the Westcore Colorado Tax-Exempt Funds on October 1, 1995. The advisory
agreement has been approved by the Trust's Board of Trustees and shareholders
and contains 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%,
0.65%, 0.75%, 1.00%, 0.45%, 0.45% and 0.50% of the average net assets for
Westcore MIDCO Growth, Westcore Growth and Income, Westcore Blue Chip, Westcore
Mid-Cap Opportunity, Westcore Small-Cap Opportunity, Westcore Long-Term Bond,
Westcore Intermediate-Term Bond and Westcore Colorado Tax-Exempt Funds,
respectively.
Effective October 1, 1995, ALPS Mutual Fund Services, Inc. ("ALPS") and DIA
entered into an administrative 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 Fund's 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 Growth and Income, Westcore Blue Chip, Westcore Mid-Cap Opportunity,
Westcore Small-Cap Opportunity, Westcore Long-Term Bond, Westcore
Intermediate-Term Bond and Westcore Colorado Tax-Exempt Funds will not exceed
1.15%, 1.15%, 1.15%, 1.25%, 1.30%, 0.95%, 0.85%, and 0.65%, respectively.
Without such fee waivers, for the period ended May 28, 1999, the Total Operating
Expenses
57
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
4. INVESTMENT ADVISORY FEES, ADMINISTRATIVE FEES AND OTHER RELATED PARTY
TRANSACTIONS (CONTINUED)
of the Westcore MIDCO Growth, Westcore Growth and Income, Westcore Blue Chip,
Westcore Mid-Cap Opportunity, Westcore Small-Cap Opportunity, Westcore Long-Term
Bond, Westcore Intermediate-Term Bond, and Westcore Colorado Tax-Exempt Funds
would be 1.19%, 1.75%, 1.25%, 5.33%, 1.63%, 1.22%, 1.01% and 1.09%,
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 Deferred Compensation 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. Deferred amounts are treated
as though equivalent dollar amounts had been invested in shares of the fund or
are invested in a cross-section of other Westcore Funds.
Shareholders holding more than 5% of the Funds' outstanding shares as of May
28, 1999, constituted 27.17% of Westcore Growth and Income Fund, 46.20% of
Westcore Blue Chip Fund, 9.62% of Westcore Small-Cap Opportunity Fund, 49.38% of
Westcore Long-Term Bond Fund, and 50.83% of Westcore Intermediate-Term Bond
Fund. DIA and certain officers of DIA collectively hold 62.50% of the Westcore
Mid-Cap Opportunity Fund's outstanding shares as of May 28, 1999.
5. ACQUISITION OF ASSETS
On October 1, 1998, the Westcore Mid-Cap Opportunity Fund acquired all of
the assets of a separately managed investment partnership, managed by DIA, at
fair market value in a tax-free exchange for shares of the Fund, as stipulated
in the Conversion Agreement approved by the Trust's Board of Trustees. The
following is a summary of shares issued, net assets acquired, and unrealized
depreciation as of October 1, 1998:
<TABLE>
<S> <C>
Shares issued 221,124
Net assets acquired $2,211,243
Unrealized depreciation ($255,667)
</TABLE>
6. 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 distributions for the
taxable year ended May 28, 1999. The information and distributions reported
herein may differ from information and distributions taxable to the shareholders
for the calendar year ended December 31, 1998.
During the fiscal year ended May 28, 1999, 99.99% 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
Growth and Income, Westcore Blue Chip, and Westcore Small-Cap Opportunity Funds
from net investment income qualify for the corporate dividends received
deduction.
58
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS WESTCORE FUNDS ANNUAL REPORT MAY 28, 1999
- -------------------------------------------------------------------------------
6. SHAREHOLDER TAX INFORMATION (UNAUDITED) (CONTINUED)
During the fiscal year ended May 28, 1999, 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 $2.50 $2.50
Westcore Growth and Income Fund 0.10 2.00 2.10
Westcore Blue Chip Fund 0.07 2.62 2.69
Westcore Mid-Cap Opportunity Fund 0.00 0.00 0.00
Westcore Small-Cap Opportunity Fund 0.31 0.95 1.26
Westcore Long-Term Bond Fund 0.57 0.06 0.63
Westcore Intermediate-Term Bond Fund 0.61 0.00 0.61
Westcore Colorado Tax-Exempt Fund 0.47 0.00 0.47
</TABLE>
59
<PAGE>
INDEPENDENT AUDITORS' REPORT
[LOGO]
- ------ -------------------------------------------------
Suite 3600 Telephone: (303) 292-5400
555 Seventeenth Street Facsimile: (303) 312-4000
Denver, Colorado 80202-3942
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 Trust (comprising
respectively, the Westcore MIDCO Growth Fund, Westcore Growth and Income Fund,
Westcore Blue Chip Fund, Westcore Mid-Cap Opportunity Fund, Westcore Small-Cap
Opportunity Fund, Westcore Long-Term Bond Fund, Westcore Intermediate-Term Bond
Fund, and Westcore Colorado Tax-Exempt Fund collectively, the "Trust") as of May
28, 1999, the related statements of operations for the period 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. These 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
as of May 28, 1999, 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, the financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
respective funds constituting the Westcore Trust as of May 28, 1999, the results
of their operations for the period then ended, the changes in their net assets
and financial highlights for each of the periods indicated in conformity with
generally accepted accounting principles.
/s/ Deloitte & Touche LLP
Deloitte &Touche LLP
Denver, Colorado
July 2, 1999
60
<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
Lisa A. Bruckert, 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.
WC123
