<PAGE> 1
[WESTCORE FUNDS LOGO]
ANNUAL REPORT
May 31, 2000
WESTCORE EQUITY FUNDS
Westcore MIDCO Growth Fund
Westcore Growth and Income Fund
Westcore International Frontier Fund
Westcore Small-Cap Growth Fund
Westcore Select 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.
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<S> <C>
SHAREHOLDER LETTER ........................................................ 1
MANAGER'S OVERVIEW ........................................................ 4
Westcore MIDCO Growth Fund .......................................... 4
Westcore Growth and Income Fund ..................................... 8
Westcore International Frontier Fund ................................ 12
Westcore Small-Cap Growth Fund ...................................... 16
Westcore Select Fund ................................................ 20
Westcore Blue Chip Fund ............................................. 24
Westcore Mid-Cap Opportunity Fund ................................... 28
Westcore Small-Cap Opportunity Fund ................................. 32
Westcore Long-Term Bond Fund ........................................ 36
Westcore Intermediate-Term Bond Fund ................................ 40
Westcore Colorado Tax-Exempt Fund ................................... 44
FINANCIAL STATEMENTS ...................................................... 48
</TABLE>
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Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 3
SHAREHOLDER LETTER
DEAR FELLOW SHAREHOLDER:
CONTINUED IMPROVEMENT IN PERFORMANCE
We are happy to report that for the fiscal year ended May 31, 2000, most of
the Westcore Funds outperformed, or were very close to their representative
Lipper Mutual Fund Index of similar funds, which are described in further detail
in each Fund's report. However, outperforming the appropriate benchmark indexes
for each Fund continues to be a challenge. We have summarized the annual total
return1 for the fiscal year ending May 31, 2000 of the Funds ranked highest to
lowest, and indicated how each compared to the Lipper index of similar funds and
the appropriate benchmark.
<TABLE>
<CAPTION>
ANNUAL ANNUAL
TOTAL RETURN(1) TOTAL RETURN(1)
VS. VS.
FISCAL YEAR LIPPER STYLE BENCHMARK
ENDED 5/31/00 INDEX* INDEX
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
EQUITY FUNDS
Westcore Select 134.33%** + +
Westcore Small-Cap Growth 70.11%** + +
Westcore Growth & Income 44.88% + +
Westcore MIDCO Growth 35.63% + -
Westcore Mid-Cap Opportunity 31.08% + +
Westcore International Frontier 16.12%*** + +
Westcore Blue Chip 1.01% + -
Westcore Small-Cap Opportunity 0.20% - -
BOND FUNDS
Westcore Intermediate-Term Bond 1.67% + -
Westcore Long-Term Bond 0.11% + -
Westcore Colorado Tax-Exempt (1.36)% - -
--------------------------------------------------------------------------------------
</TABLE>
+ Outperformed index for the year ended May 31, 2000
- Underperformed index for the year ended May 31, 2000
* Note: specific benchmarks and Lipper groups are shown in each Fund's
report.
** Since inception October 1, 1999.
*** Since inception December 15, 1999.
(1) Annual total return represents past performance. Past performance is not
indicative of future results. Performance information for periods of less
than one year are less meaningful than longer performance history. Annual
total return reflects reinvestment of dividends, capital gains
distributions, all fee waivers and expense reimbursements. Without the fee
waivers and expense reimbursements, the Funds' annual total return would
have been lower. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
For more complete performance information, including the average annual
total returns for 1 year, 5 years, 10 years and since inception, please
refer to the charts for each Fund contained in the Funds' reports. A
significant portion of the Westcore Select, Small-Cap Growth, Growth and
Income, Mid-Cap Opportunity and International Frontier Funds' returns were
attributable to investments in Initial Public Offerings, additional
information on which is contained in each Fund's report. It is possible
that such performance may not be repeated in the future.
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[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 1
<PAGE> 4
SHAREHOLDER LETTER
The array of performance provides several messages. First, the year ended
May 31, 2000, was a very unique time period given the large returns achieved for
growth investing, particularly after several years of a bull market. We are
pleased that our research-intensive approach was able to capture these returns.
The year also included one of the best IPO markets in history, which several of
our equity funds took advantage of to meaningfully enhance their returns.
Second, our three new funds, the Westcore Select, Small-Cap Growth, and
International Frontier Funds increased our offerings. We added these funds to
take advantage of a broader market and to create exposure to additional
investment styles that provide the opportunity for long-term outperformance. The
early investment results support this, as you can see from the summary above.
Third, while there was some broadening of the market towards small and mid-cap
stocks, the environment for value investing remained difficult. This has been
caused by the great strength in "New Economy" industries. However, we believe we
may be entering a more level playing field which we talk about below.
MARKET AND ECONOMIC ENVIRONMENT
During the calendar year 2000, we have seen two distinct market
environments. After a strong fourth quarter in 1999, growth stocks continued to
outperform through early March. At that time, the Federal Reserve's interest
rate hikes caught up with the market and caused a meaningful correction. The
brunt of this correction was focused on growth stocks, as their high valuations
were unsustainable in the face of rising interest rates. It was then that we
began to see better performance from value stocks whose valuations were already
low compared to historical norms. We believe this is signaling the end of last
year's blanket outperformance of "anything.com" stocks and that going forward
company prospects and fundamentals which are supported by reasonable valuations
will drive performance for both growth and value stocks.
As for the overall market, we are now in a mode of "watching and waiting"
to see if the Federal Reserve can successfully slow the economy enough to reduce
inflation without creating a recession. The next few months will be a test, with
simultaneous signs that the economy is slowing combined with difficult inflation
comparisons as energy prices continue at high levels over the summer. We believe
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2 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 5
SHAREHOLDER LETTER
that by fall, the Fed will succeed, due to both early Fed action and to the
private economy's ability to produce exceptional productivity gains. Success
would mean a soft landing for the economy with growth estimates near 4% and low
inflation.
In this environment, we believe that corporate profits should continue to
grow nicely and stocks should continue to provide good performance, albeit
likely at a slower pace than we have seen in the last 12 months. Contained
inflation, along with continued government budget surpluses, may allow for
eventually lower interest rates, providing good returns for bonds.
In the following pages, each of the Funds' portfolio managers report on
their performance and strategies. Investors in the Westcore Long-Term Bond and
Intermediate-Term Bond Funds should note that we are restructuring these funds
effective October 1, 2000. We are pleased with the upcoming changes, because we
believe that the new funds will offer you bond investments that will better suit
your investment needs. The Prospectus Supplement dated July 28, 2000 explains
the changes in detail. For more information, visit www.westcore.com where you
can also meet each of the portfolio managers and hear portfolio updates.
We would like to thank all of our investors for your confidence in
Westcore, and to especially welcome investors to the three new funds introduced
last year.
Sincerely,
/s/ JACK D. HENDERSON /s/ KENNETH V. PENLAND
[PHOTO] [PHOTO]
Jack D. Henderson Kenneth V. Penland, CFA
Chairman President
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<PAGE> 6
MANAGER'S OVERVIEW
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
Westcore MIDCO Growth Fund's total return for the fiscal year ended May 31,
2000 was 35.63%, compared to 43.72% for the Russell Midcap Growth Index and
33.86% for the Lipper Multi-Cap Growth Index. The year was challenging because
of stock price volatility. Our investment performance came primarily from
technology and biotech stocks that peaked early in March--then fell sharply,
appearing to bottom early in May. During this period of decline from mid-March
to the middle of May, the Nasdaq Index was down 41%--its second worst decline
since its inception in the early '70's. We were ahead of our benchmark going
into the decline. However, our stocks came down more in the decline and we ended
the fiscal year behind the Russell Midcap Growth Index.
We continue to have meaningful exposure to technology stocks in the
portfolio. Vignette and Network Appliance are two holdings in our portfolio that
illustrate how strong business is for many companies in this sector. Vignette
makes software for companies needing a robust website, and its March quarter
sales were up 500% over last year. Network Appliance makes high-performance
network-attached storage devices, and sales for the March quarter were up 120%
year-over-year. These companies--and many more in our portfolio--are
experiencing remarkable growth which I expect to continue for the next few
years.
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4 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 7
MANAGER'S OVERVIEW
"...THE COUNTRY'S
ECONOMIC HEALTH
IS STRONG AND
PROVIDING GROWTH
OPPORTUNITIES
FOR MANY
MEDIUM-SIZED
COMPANIES."
In my mind, an important inflection point will be reached when 25% of
Americans can get movies on demand on their television sets. Video is data
intensive and will use an incredible amount of bandwidth and data storage. I
expect that the rate of growth of the infrastructure build-out should peak at
that point.
Specialty retailing stocks, such as Abercrombie and Fitch and Nordstrom,
were disappointing. Last fall, these stocks looked attractive due to their
valuation levels, but unfortunately earnings did not come through. This was due
partly to changing fashion trends and partly to the increase in gas and oil
prices--simply because the consumer who must pay more for a necessity like
gasoline has fewer dollars to spend on apparel.
It is my belief that, while the last few months have been painful, the
market volatility felt by investors has actually been healthy. This market
correction reminds us that the outstanding returns we have all enjoyed are
simply not realistic. We do appear to be through the worst of it, and hopefully
our return expectations have become more reasonable. At the same time, the
country's economic health is strong and providing growth opportunities for many
medium-sized companies.
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<PAGE> 8
MANAGER'S OVERVIEW
WESTCORE MIDCO GROWTH FUND (WTMGX)
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH* 1-YEAR 5-YEAR 10-YEAR 8/1/86
------------ -------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 10.22% 35.63% 20.56% 18.22% 16.62%
6/30/00 0.20% 42.73% 21.46% 19.31% 17.40%
</TABLE>
Average annual total returns reflect reinvestment of all dividends, capital
gains distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements, the total return figures
would have been lower. Fund inception date is 8/1/86. Past performance is not
indicative of future results. Principal value may fluctuate and shares, when
redeemed, may be worth more or less than their original cost. *Not annualized.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
WESTCORE MIDCO GROWTH FUND, THE S&P 400 MID-CAP INDEX,
RUSSELL MIDCAP GROWTH INDEX AND LIPPER MULTI-CAP GROWTH INDEX
[GRAPH]
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.
Westcore MIDCO Growth Fund's relative index has changed from the S&P 400 to the
Russell Midcap Growth Index as a better measure of the Fund's investment
objective.
----------
Lipper Index data provided by Lipper Analytical Services, Inc.
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.
The Russell Midcap Growth Index measures the performance of those Russell Midcap
companies with higher price-to-book ratios and higher forecasted growth values
than in the Russell 1000 index.
The Lipper Multi-Cap Growth Index is an unmanaged index comprised of the 30
largest mutual funds in the Lipper Multi-Cap Growth Funds classification. This
classification consists of funds that concentrate no more than 25% of their
equity assets in any one market capitalization range over an extended period of
time. Multi-Cap Growth funds will generally have between 25% to 75% of their
assets invested in companies with long-term earnings growth expectations that
have market capitalizations (on a three-year weighted basis) above 300% of the
dollar-weighted median market capitalization of the S&P Mid-Cap 400 Index.
An investment cannot be made directly in an index.
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6 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 9
MANAGER'S OVERVIEW
TOP 10 EQUITY HOLDINGS AS OF MAY 31, 2000
+ WESTWOOD ONE INC. (WON) - supplies radio television stations with
information services and programming
* VERITAS SOFTWARE CORP. (VRTS) - develops enterprise storage management data
for business-critical computing systems
- JDS UNIPHASE CORP. (JDSU) - provides advanced fiberoptic modules for
telecommunications and cable providers worldwide
* XILINX INC. (XLNX) - designs and develops complete programmable logic
solutions
+ USA NETWORKS INC. (USAI) - a diversified media and electronic commerce
company
* CINTAS CORP. (CTAS) - manufactures corporate identity uniforms and provides
sanitation and cleanroom supplies, first aid products and services
* ALTERA CORP. (ALTR) - manufactures programmable logic devices for the
telecommunications, data communications and industrial applications markets
* METRO-GOLDWYN-MAYER INC. (MGM) - produces entertainment products including
motion pictures, television programming, home video, interactive media,
music and licensed merchandise
* MAXIM INTEGRATED PRODUCTS INC. (MXIM) - manufactures a broad range of
linear and mixed signal integrated circuits
* KANSAS CITY SOUTHERN INDUSTRIES, INC. (KSU) - provides rail freight
transportation and financial asset management services
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 20.85%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
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<PAGE> 10
MANAGER'S OVERVIEW
WESTCORE GROWTH AND INCOME FUND
FUND OBJECTIVE: Seeks To Maximize Long-Term Total Return By Investing In Equity
Securities Selected For Their Growth Potential And Income-Producing Abilities.
[PHOTO]
/s/ MILFORD H. SCHULHOF, II
Milford H. Schulhof, II
Portfolio Manager, Westcore
Growth and Income Fund
I am pleased to report that the Westcore Growth and Income Fund had a very
good year, gaining 44.88% for the fiscal year ending May 31, 2000. In
comparison, the S&P 500 returned 10.56% and the Lipper Multi-Cap Growth Index
returned 33.86% for the same time period.
Technology continued to play a significant part in our return. Although the
tech sector was, in general, weak at the end of the fiscal period, many of our
holdings in this area finished the year ahead of their beginning values. Intel
is an example of a holding that has done particularly well. Intel, the leading
manufacturer of microprocessors, is benefiting from the huge increase in demand
for personal computers. Their Pentium chips are everywhere, and as computers
increasingly find their way into more and more homes throughout the country, I
believe Intel will enjoy a very strong tailwind.
I did, however, trim our technology holdings from our last report. After
the huge gains in this area, I felt that valuations became excessive and it made
sense to lock in profits and reduce the risk of the portfolio by decreasing our
exposure to this very volatile sector. I made the change at the beginning of the
calendar year--a move that, in hindsight, proved to be good timing.
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8 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 11
MANAGER'S OVERVIEW
"AS ALWAYS,
WE CONTINUE TO
LOOK FOR GREAT
COMPANIES WITH
GOOD GROWTH RATES
AT ATTRACTIVE
VALUATIONS."
Encouraged by strong oil prices, we have moved the portfolio into an
over-weighting in energy. Enron, a wholesaler of electricity and natural gas, is
an example of a company benefiting not only from the increase in prices, but
also from changes within their industry. Enron has moved into the energy
marketing area--in effect becoming wholesalers of electricity, acting as the
middleman between utilities in need of extra power and utilities with surplus
power.
One holding I am cautious about is Lowe's. Though their earnings are
increasing at a good rate--about 20%--some investors are questioning their
recent acquisition of Eagle Hardware, and whether the two businesses are being
integrated smoothly. Also, investors are watching the increase in interest rates
and how that affects the building market--a major market for Lowe's. But, I'm
optimistic that Lowe's will benefit when the Federal Reserve eases its interest
rate focus.
As always, we continue to look for great companies with good growth rates
at attractive valuations. Unemployment and inflation are low, the budget remains
in surplus, corporate earnings are expanding at a very healthy pace, and
interest rates, I believe, will stabilize sometime in the coming year. The
backdrop for investing is very positive. We've seen a lot of profit taking in
the market which has driven it down, but I believe it will stabilize and that we
will resume the bull market that has been in place for years.
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<PAGE> 12
MANAGER'S OVERVIEW
WESTCORE GROWTH AND INCOME FUND (WTEIX)
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH* 1-YEAR 5-YEAR 10-YEAR 6/1/88
------------ -------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 21.15% 44.88% 23.11% 15.05% 15.09%
6/30/00 6.87% 39.47% 23.35% 15.40% 15.28%
</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 have been lower. Fund inception date is 6/1/88. Past performance is not
indicative of future results. Principal value may fluctuate and shares, when
redeemed, may be worth more or less than their original cost. *Not annualized.
This Fund participates in the Initial Public Offering ("IPO") market, and a
significant portion of the fund's returns have been attributable to its
investment in IPOs, which in turn have had a magnified impact due to the fund's
relatively small asset base. As the Fund's assets continue to grow, it will be
increasingly less likely to experience substantially similar performance by
investing in IPOs.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
WESTCORE GROWTH AND INCOME FUND, THE S&P 500 INDEX AND
LIPPER MULTI-CAP GROWTH INDEX
[GRAPH]
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.
----------
Lipper Index data provided by Lipper Analytical Services, Inc.
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.
The Lipper Multi-Cap Growth Index is an unmanaged index comprised of the 30
largest mutual funds in the Lipper Multi-Cap Growth Funds classification. This
classification consists of funds that concentrate no more than 25% of their
equity assets in any one market capitalization range over an extended period of
time. Multi-Cap Growth funds will generally have between 25% to 75% of their
assets invested in companies with long-term earnings growth expectations that
have market capitalizations (on a three-year weighted basis) above 300% of the
dollar-weighted median market capitalization of the S&P Mid-Cap 400 Index.
An investment cannot be made directly in an index.
--------------------------------------------------------------------------------
10 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 13
MANAGER'S OVERVIEW
TOP 10 EQUITY HOLDINGS AS OF MAY 31, 2000
+ GENERAL ELECTRIC CO. (GE) - manufactures products for the generation,
distribution, and utilization of electricity
* ANADARKO PETROLEUM CORP. (APC) - an independent oil and gas exploration and
production company
- AES CORP. (AES) - a global power company that sells electricity generation
to wholesale customers
+ INTEL CORP. (INTC) - manufactures computer components and related products
+ CISCO SYSTEMS INC. (CSCO) - supplies data networking products to the
corporate enterprise and public wide area service provider markets
* ENRON CORP. (ENE) - produces electricity and natural gas and develops,
constructs, and operates energy facilities worldwide
* NABORS INDUSTRIES INC. (NBR) - a land-drilling contractor
- OMNICOM GROUP (OMC) - provides marketing communications and advertising
services
- WAL-MART STORES, INC. (WMT) - operates discount stores and Supercenters, as
well as Sam's Clubs
* ZIONS BANCORPORATION (ZION) - a bank holding company that operates
full-service banking offices
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 28.05%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
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<PAGE> 14
MANAGER'S OVERVIEW
WESTCORE INTERNATIONAL FRONTIER FUND
FUND OBJECTIVE: Seeks Long-Term Growth Of Capital Primarily Through Investments
In International, Small-Cap Companies.
[PHOTO]
/s/ MICHAEL W. GERDING
Michael W. Gerding, CFA
Portfolio Manager, Westcore
International Frontier Fund
Since inception on Dec. 15, 1999 through the end of the fiscal year,
Westcore International Frontier Fund was up 16.12%, which compares favorably to
its indexes. During the same period, the MSCI World Ex-US Small Cap Index was
down 2.17%, and the Lipper Small-Cap International Index was up 1.33%.
The period through May 31, 2000 provided sharp contrasts for U.S.
investors. Performance, market sentiment, and market expectations all moved from
one extreme to the other in the first five months of 2000. These factors also
impacted small companies outside the U.S., creating a very difficult investing
environment for the first five months of the Fund's life. Fortunately for the
Fund, the positives outweighed the negatives. In particular, our overweight
position in Europe helped the Fund, as did our large exposure to the healthcare
and oil services industries. And, although technology was the most volatile
industry during the period, our exposure there added to the performance of the
Fund in general. On the negative side, our Japanese position hurt the Fund. The
good news is that the Fund was underweighted in Japan. Also, most of our
consumer-oriented companies did not help the Fund. The dollar strengthened in
the first five months, and as we were not hedged, it negatively impacted the
performance of the Fund.
The healthcare products and semiconductor capital equipment industries were
particularly strong for us in the period. Angiotech, a Canadian developer of
cardiology products, and Phonak, one of the world's leading manufacturers of
hearing aids based in Switzerland are two examples of healthcare companies that
contributed to the performance of the Fund. Semiconductor companies are rapidly
increasing their spending to create new capacity to meet the strong demand for
their products. In addition, they are introducing new production
--------------------------------------------------------------------------------
12 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 15
MANAGER'S OVERVIEW
"...WE BELIEVE THAT
THE ECONOMIC
GROWTH WE ARE
SEEING OUTSIDE THE
U.S. WILL LEAD TO
BETTER EARNINGS
GROWTH FOR SMALL
COMPANIES..."
lines to produce new, leading edge semiconductors. The combination of these two
trends has greatly improved the prospects for the semiconductor capital
equipment companies. The two that we own, ASM International from the
Netherlands, and SEZ Holdings from Switzerland, both benefit from this, as well
as the fact that they make state of the art equipment, which is allowing them to
gain market share in a growing market.
Westcore International Frontier Fund utilizes a time tested approach to
seek small companies outside the U.S. that are growing faster than the country
in which they are located, faster than the industry in which they participate,
and ideally faster than they have historically. We also try to make sure we are
paying attractive prices for these rapidly growing businesses. We build our
portfolio from the bottom up, regardless of where they are located. We are not
constrained by top down regional, country, or industry models that might force
us to invest in companies that we feel are less than the best.
Looking forward, the balance of 2000 is likely to continue to be impacted
by macro factors in the market. But we believe that the economic growth we are
seeing outside the U.S. will lead to better earnings growth for small companies,
which will provide more opportunities for us. This, coupled with the correction
in prices we have seen in most companies, creates an attractive opportunity to
buy great, rapidly growing businesses at attractive levels.
COUNTRY BREAKDOWN AS OF MAY 31, 2000
<TABLE>
<CAPTION>
COUNTRY MARKET VALUE %
----------- -------------- ------
<S> <C> <C>
France $ 3,379,817.47 15.79%
Germany 3,206,624.61 14.98%
UK 3,186,425.56 14.88%
Switzerland 2,818,879.05 13.17%
Netherlands 1,583,873.98 7.40%
Canada 1,570,858.03 7.34%
USA 1,442,745.39 6.74%
Japan 1,320,956.57 6.17%
China 784,283.88 3.66%
Spain 643,244.64 3.00%
Sweden 585,820.48 2.74%
Denmark 298,118.13 1.39%
Italy 282,578.78 1.32%
Israel 246,875.00 1.15%
Australia 58,191.00 0.27%
-------------- ------
$21,409,292.57 100.00%
</TABLE>
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<PAGE> 16
MANAGER'S OVERVIEW
WESTCORE INTERNATIONAL FRONTIER FUND (WTIFX)
TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH 1-YEAR 5-YEAR 10-YEAR 12/15/99
------------ ------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 N/A N/A N/A N/A 16.12%
6/30/00 22.07% N/A N/A N/A 26.23%
</TABLE>
Total returns reflect reinvestment of all dividends, capital gains
distributions, all fee waivers in effect and any expense reimbursements. Without
the fee waivers and expense reimbursements, the total return figures would have
been lower. Fund inception date is 12/15/99. 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.
This Fund participates in the Initial Public Offering ("IPO") market, and a
significant portion of the fund's returns have been attributable to its
investment in IPOs, which in turn have had a magnified impact due to the fund's
relatively small asset base. As the Fund's assets continue to grow, it will be
increasingly less likely to experience substantially similar performance by
investing in IPOs.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
WESTCORE INTERNATIONAL FRONTIER FUND, THE MSCI WORLD EX-US
SMALL-CAP INDEX AND LIPPER INTERNATIONAL SMALL-CAP INDEX
[GRAPH]
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
12/15/99.
Lipper Index data provided by Lipper Analytical Services, Inc.
The MSCI World Ex-US Small-Cap Index is an unmanaged index that measures the
performance of stocks with market capitalizations between US $200-800 million
across 23 developed markets, excluding the United States.
The Lipper International Small-Cap Index is an unmanaged index comprised of the
30 largest mutual funds in the Lipper International Small-Cap Funds
classification. This classification consists of funds that invest at least 65%
of their assets in equity securities of non-United States companies with market
capitalizations less than $1 billion (U.S.) at the time of purchase.
An investment cannot be made directly in an index.
--------------------------------------------------------------------------------
14 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 17
MANAGER'S OVERVIEW
TOP 10 EQUITY HOLDINGS AS OF MAY 31, 2000
COFLEXIP STENA OFFSHORE (France) - a leading oil service company,
specializing in deep water drilling and production
PHONAK HOLDING AG (Switzerland) - one of the world's leading manufacturers
of hearing aids
BOOKHAM TECHNOLOGY PLC (United Kingdom) - a manufacturer of optical
semiconductors, primarily for the fiber optics industry
PACE MICRO TECHNOLOGY PLC (United Kingdom) - one of the world's largest
manufacturers of set top boxes for the broadcasting, cable and satellite TV
industries
ASM INTERNATIONAL NV (Netherlands) - provides equipment for the manufacture
of semiconductors
SEZ HOLDINGS AG (Switzerland) - produces equipment for the production of
semiconductors
NOBEL BIOCARE (Sweden) - the world's leading manufacturer of dental
implants
NUTRECO HOLDINGS NV (Netherlands) - a broad based agricultural firm,
manufacturing food for the agricultural and aquaculture industries
GT GROUP TELECOM INC. - CLASS B (Canada) - one of Canada's fastest growing
alternative telecom providers
WAVECOM SA (France) - innovative manufacturer of components for wireless
voice and data communication
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 29.72%
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
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<PAGE> 18
MANAGER'S OVERVIEW
WESTCORE SMALL-CAP GROWTH FUND
FUND OBJECTIVE: Seeks long-term growth of capital primarily through investments
in small companies with growth potential.
[PHOTO]
/s/ JOHN N. KARNS
John N. Karns
Portfolio Manager, Westcore
Small-Cap Growth Fund
Westcore Small-Cap Growth Fund's total return from its inception on October
1, 1999, to the end of the fiscal year, May 31, 2000, was 70.11%, strongly
outpacing the Russell 2000 Index at 12.25% and the Lipper Small-Cap Growth Index
at 35.89% for the same period.
Our noteworthy performance masks two very different markets during this
period. From the Fund's inception into early March, we had a very strong market
and the Fund was up well over 100%. Technology stocks and several successful
Initial Public Offerings (IPOs) can be given credit for the lion's share of the
return. For example, Power Wave Technologies, a manufacturer of amplifiers that
send signals to wireless phones, nearly quadrupled in price from where we
purchased it due to strong volumes and a significant contract to supply Motorola
with their product. Interwoven, a company whose software manages content
distributed on the web is up 260% from its IPO in October.
--------------------------------------------------------------------------------
16 Annual Report may 31,2000 [WESTCORE LOGO]
<PAGE> 19
MANAGER'S OVERVIEW
"...SMALL COMPANIES
...HAVE JUST GOTTEN
CHEAPER, GIVING US
MORE OPPORTUNITIES
TO FIND GREAT LITTLE
COMPANIES AT MORE
REASONABLE PRICES."
The second period, mid-March through the end of our fiscal year, was very
negative for small-cap growth stocks in general, and technology stocks in
particular, which have been a strong theme in the Fund since it began. For
example, On Display, a dynamic content aggregation company was down over 50%
from its March highs. This is indicative of the small-cap tech sell-off.
The heady gains and subsequent drop illustrate a characteristic of this
Fund--volatility. I like to remind investors that, while over the short-term,
volatility can be stressful, over the long-term, it can create great potential
for above average returns. I believe this Fund is a great option for the more
aggressive, long-term portion of your investment portfolio.
My outlook for small-cap growth stocks is positive. The growth areas for
small companies have not changed with this downturn--they have just gotten
cheaper, giving us more opportunities to find great little companies at more
reasonable prices. It's also beginning to look like the Federal Reserve's
actions are finally moderating economic growth--leading me to believe the
interest rate increases are coming to an end, and that is positive for the small
companies in this Fund.
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 17
<PAGE> 20
MANAGER'S OVERVIEW
WESTCORE SMALL-CAP GROWTH FUND (WTSMX)
TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH 1-YEAR 5-YEAR 10-YEAR 10/1/99
------------ ------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 (16.16)% N/A N/A N/A 70.11%
6/30/00 (0.09)% N/A N/A N/A 136.40%
</TABLE>
Total returns reflect reinvestment of all dividends, capital gains
distributions, all fee waivers in effect and any expense reimbursements. Without
the fee waivers and expense reimbursements, the total return figures would have
been lower. Fund inception date is 10/1/99. 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.
This Fund participates in the Initial Public Offering ("IPO") market, and a
significant portion of the fund's returns have been attributable to its
investment in IPOs, which in turn have had a magnified impact due to the fund's
relatively small asset base. As the Fund's assets continue to grow, it will be
increasingly less likely to experience substantially similar performance by
investing in IPOs.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
WESTCORE SMALL-CAP GROWTH FUND, THE RUSSELL 2000 INDEX AND
LIPPER SMALL-CAP GROWTH INDEX
[GRAPH]
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 10/1/99.
Lipper Index data provided by Lipper Analytical Services, Inc.
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 11% of the total market capitalization of the Russell 3000 Index.
Lipper Small-Cap Growth Index is an unmanaged index comprised of the 30 largest
mutual funds in the Lipper Small-Cap Growth Funds classification. This
classification consists of funds that invest at least 75% of their equity assets
in companies with long-term earnings growth expectations that have market
capitalizations (on a three-year weighted basis) of less than 250% of the
dollar-weighted median market capitalization of the S&P Small-Cap 600 Index.
An investment cannot be made directly in an index.
--------------------------------------------------------------------------------
18 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 21
MANAGER'S OVERVIEW
TOP 10 EQUITY HOLDINGS AS OF MAY 31, 2000
* MSI HOLDINGS INC. (MSAQ) - provides web and application hosting services
* PARADYNE NETWORKS CORP. (PDTN) - manufactures broadband network access
products for network service providers and business customers
* ALPHARMA INC. - CLASS A (ALO) - manufactures specialty generic and
proprietary human pharmaceutical and animal health products
* PROVINCE HEALTHCARE CO. (PRHC) - provides healthcare services in non-urban
markets in the U.S.
* VARIAN SEMICONDUCTOR EQUIPMENT (VSEA) - manufactures and services
semiconductor processing equipment used in the fabrication of integrated
circuits
* ProsoftTraining.com Inc. (POSO) - a global internet solutions company that
provides curriculum and skills-based Internet certification programs
+ POWERWAVE TECHNOLOGIES INC. (PWAV) - manufactures ultra-linear radio
frequency power amplifiers for use in the wireless communications market
* LABORATORY CORP. OF AMERICA HOLDINGS (LH) - a clinical laboratory
organization that offers a wide range of clinical laboratory tests
* AREMISSOFT CORP. (AREM) - develops and supports enterprise-wide
applications software and internet enabled applications software
* SECURE COMPUTING CORP. (SCUR) - develops interoperable standards-based
products for end-to-end network solutions
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 34.54%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 19
<PAGE> 22
MANAGER'S OVERVIEW
WESTCORE SELECT FUND
FUND OBJECTIVE: Seeks long-term growth of capital primarily through investments
in companies of any size selected for their growth potential.
[PHOTO]
/s/ GERALD W. PETERSON
Gerald W. Peterson, CFA
Portfolio Manager,
Westcore Select Fund
Since its inception less than a year ago on October 1, 1999, Westcore Select
Fund has posted an outstanding 134.33% total return as of May 31, 2000. In
comparison, the S&P 500 returned 11.64% and the Lipper Multi-Cap Core Index
returned 16.28% for the same time period.
The key to this Fund's out-performance this period is flexibility. We
created this Fund to be nimble so that we could respond quickly as markets
changed and new themes and opportunities emerged. This enabled us to benefit
from strong areas and to preserve our gains when the environment turned.
During the first five months of operation, we took advantage of a very
strong market environment, several successful Initial Public Offerings and an
over-weighted exposure to the technology and media sectors. Stocks of particular
strength included ProsoftTraining.com, a global internet solutions company that
provides curriculum and skills-based Internet certification programs, and
Westwood One, a programming and information supplier to radio and television
stations.
--------------------------------------------------------------------------------
20 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 23
MANAGER'S OVERVIEW
"WE WANT TO
OWN WHAT WE
CONSIDER TO BE
THE BEST COMPANIES
WITH EXCELLENT
GROWTH DYNAMICS,
STRONG FUNDAMENTAL
DRIVERS AND
REASONABLE VALUATIONS,
REGARDLESS OF SECTOR."
The following three months, beginning in March, brought a very difficult
market environment as valuations, particularly in the technology area, corrected
significantly over a short period of time. As the market began to trend
downwards in early March, we shifted our emphasis away from technology and
growth and looked for high quality companies with good growth potential at more
modest valuation levels. We purchased highly liquid and quality holdings such as
Maytag, Starwood Hotels, Aetna, and BJ Services.
Looking ahead, we expect the markets' volatility to continue. The
significant interest rate increases over the past year have begun to slow the
economy, which will affect earnings particularly during the second half of 2000.
Even though we believe the Fed is near the end of its rate increases, we believe
that the impact the actions have had on the economy will be felt for the next
six months.
As a result of these volatile times, we have taken a more balanced approach
to constructing the portfolio. As we sift through the debris of the technology
decline, we are finding and beginning to accumulate great companies at
significantly more attractive valuations than in the prior six months. We want
to own what we consider to be the best companies with excellent growth dynamics,
strong fundamental drivers and reasonable valuations, regardless of sector. We
also have ample amounts of cash enabling us to take advantage of what we view as
unusual investment opportunities. We find these to be exciting times, where we
believe that our research will make a difference.
--------------------------------------------------------------------------------
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<PAGE> 24
MANAGER'S OVERVIEW
WESTCORE SELECT FUND (WTSLX)
TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH 1-YEAR 5-YEAR 10-YEAR 10/1/99
------------ ------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 49.16% N/A N/A N/A 134.33%
6/30/00 26.14% N/A N/A N/A 157.57%
</TABLE>
Total returns reflect reinvestment of all dividends, capital gains
distributions, all fee waivers in effect and any expense reimbursements. Without
the fee waivers and expense reimbursements, the total return figures would have
been lower. Fund inception date is 10/1/99. 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.
This Fund participates in the Initial Public Offering ("IPO") market, and a
significant portion of the fund's returns have been attributable to its
investment in IPOs, which in turn have had a magnified impact due to the fund's
relatively small asset base. As the Fund's assets continue to grow, it will be
increasingly less likely to experience substantially similar performance by
investing in IPOs.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
WESTCORE SELECT FUND, THE S&P 500 INDEX AND
LIPPER MULTI-CAP CORE INDEX
[GRAPH]
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 10/1/99.
Lipper Index data provided by Lipper Analytical Services, Inc.
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.
Lipper Multi-Cap Core Index is an unmanaged index comprised of the 30 largest
mutual funds in the Lipper Multi-Cap Core Funds classification. This
classification consists of funds that concentrate no more than 25% of their
equity assets in any one market capitalization range over an extended period of
time. Multi-Cap Core funds will generally have between 25% to 75% of their
assets invested in a wide variety of companies with market capitalizations (on a
three-year weighted basis) above 300% of the dollar-weighted median market
capitalization of the S&P Mid-Cap 400 Index.
An investment cannot be made directly in an index.
--------------------------------------------------------------------------------
22 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 25
MANAGER'S OVERVIEW
TOP 10 EQUITY HOLDINGS AS OF MAY 31, 2000
* LODGENET ENTERTAINMENT CORP. (LNET) - a specialized communications company
that serves lodging properties
+ WESTWOOD ONE INC. (WON) - supplies radio television stations with
information services and programming
- ProsoftTraining.com Inc. (POSO) - a global internet solutions company that
provides curriculum and skills-based Internet certification programs
* CISCO SYSTEMS INC. (CSCO) - supplies data networking products to the
corporate enterprise and public wide area service provider markets
* ECHOSTAR COMMUNICATIONS CORP. - CLASS A (DISH) - operates a direct
broadcast satellite subscription television service
* INFINITY BROADCASTING CORP. - CLASS A (INF) - operates radio stations and
provides outdoor advertising
* HILTON HOTELS CORP. (HLT) - owns, manages, and franchises hotels
* METRO-GOLDWYN-MAYER INC. (MGM) - produces entertainment products including
motion pictures, television programming, home video, interactive media,
music and licensed merchandise
* NEXTEL COMMUNICATIONS INC. - CLASS A (NXTL) - provides digital and analog
wireless communications services
* MERCURY INTERACTIVE CORP. - CLASS A (MERQ) - develops and supports a suite
of automated software testing solutions
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 46.41%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
--------------------------------------------------------------------------------
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<PAGE> 26
MANAGER'S OVERVIEW
WESTCORE BLUE CHIP FUND
FUND OBJECTIVE: Seeks to maximize long-term total return by investing in stocks
of large, well-established companies whose stocks appear to be undervalued.
[PHOTO]
/s/ CHARLOTTE T. PETERSEN
Charlotte T. Petersen, CFA
Portfolio Manager,
Westcore Blue Chip Fund
The total return for Westcore Blue Chip Fund for the fiscal year ended May
31, 2000 was 1.01%. In comparison, the S&P 500 Index returned 10.56% and the
Lipper Multi-Cap Value Index was down 1.51%.
The under-performance relative to the S&P500 Index was primarily a result of
investors continuing to favor growth stocks over value stocks for most of the
fiscal year. However, this trend began to reverse in March and we believe value
stocks will continue to outperform going forward. We were also overweighted in
financials, and underweighted in technology--both of which hurt us for most of
the year but turned out very positive as the market changed in mid-March.
In the early part of 2000, we made the decision to raise our exposure to
energy, especially in natural gas, because we believed the recent higher prices
would last longer than commonly anticipated. We have some interesting companies
in our portfolio benefiting not only from the favorable market environment, but
because they are moving their businesses in new directions. For example, Dynegy
is a company that is consistently increasing the part of their business that is
not regulated--and therefore more profitable--by marketing natural gas to large
companies. Coastal Corp. is merging with El Paso, a company that has been a
leader in laying fiber optic cable through their natural gas pipelines, and as a
result has one of the largest networks of this type.
--------------------------------------------------------------------------------
24 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 27
MANAGER'S OVERVIEW
"LONG-TERM, I AM OPTIMISTIC
ABOUT THE OPPORTUNITY FOR
STOCKS IN GENERAL, AND
FOR VALUE STOCKS IN PARTICULAR."
We have recently added to our financial stocks, because we believe we are
nearing the end of interest rate increases and financials tend to do well in
stable or declining interest rate environments. Also, the valuations in the
financial sector are compelling. Property and casualty insurer ACE Limited has
done very well as property and casualty rates have improved. The company is also
successfully integrating the acquisition of CIGNA's property and casualty
business into its own. We participated in the IPO of MetLife this year, and that
also performed well.
A stock that disappointed us was Novell, who warned of an earnings
disappointment due to poor top-line growth in packaged software sales. We sold
the stock until the demand picture becomes clearer. Office Depot also warned of
poor results due to slower sales and a shift in favor of lower-margined
technology products. We are holding the stock for the time being.
Long-term, I am optimistic about the opportunity for stocks in general, and
for value stocks in particular. Our value team will continue to employ the same
philosophy and disciplines in building a portfolio of attractively-valued,
large-cap stocks. Importantly, we have refined our research processes this year,
placing more emphasis on fundamental research geared toward fully understanding
a company--its products, management, financial model, etc--and requiring a
catalyst for unlocking the value in the company.
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 25
<PAGE> 28
MANAGER'S OVERVIEW
WESTCORE BLUE CHIP FUND (WTMVX)
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH* 1-YEAR 5-YEAR 10-YEAR 6/1/88
------------ ------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 4.22% 1.01% 17.89% 15.71% 14.28%
6/30/00 (3.15%) (4.80%) 16.94% 14.29% 13.80%
</TABLE>
Average annual total returns reflect reinvestment of all dividends, capital
gains distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements, the total return figures
would have been lower. Fund inception date is 6/1/88. Past performance is not
indicative of future results. Principal value may fluctuate and shares, when
redeemed, may be worth more or less than their original cost. *Not annualized.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
WESTCORE BLUE CHIP FUND, THE S&P 500 INDEX AND
LIPPER MULTI-CAP VALUE INDEX
[GRAPH]
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.
Lipper Index data provided by Lipper Analytical Services, Inc.
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.
Lipper Multi-Cap Value Index is an unmanaged index comprised of the 30 largest
mutual funds in the Lipper Multi-Cap Value Funds classification. This
classification consists of funds that concentrate no more than 25% of their
equity assets in any one market capitalization range over an extended period of
time. Multi-Cap Value funds will generally have between 25% to 75% of their
assets invested in companies considered to be undervalued relative to a major
unmanaged stock index and that have market capitalizations (on a three-year
weighted basis) above 300% of the dollar-weighted median market capitalization
of the S&P Mid-Cap 400 Index.
An investment cannot be made directly in an index.
--------------------------------------------------------------------------------
26 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 29
MANAGER'S OVERVIEW
TOP 10 EQUITY HOLDINGS AS OF MAY 31, 2000
* DYNEGY INC. - CLASS A (DYN) - provides energy products and services in
North America and the United Kingdom
* GENERAL DYNAMICS CORP. (GD) - manufactures and supplies defense systems to
the U.S. government and its allies
- CITIGROUP INC. (C) - a diversified financial services holding company that
provides a broad range of financial services
* SPRINT CORP. (FON GROUP) (FON) - provides telecommunications services
* LUCENT TECHNOLOGIES INC. (LU) - develops a wide range of public and
private networks, communications systems and software, and data networking
systems
* COMPUTER ASSOCIATES INTL INC. (CA) - develops and supports standardized
computer software products
- ROYAL DUTCH PETROLEUM CO. (RD) - explores for, produces, refines and
markets petroleum products
* ACE LTD. (ACL) - a property and casualty insurance business
* BALL CORP. (BLL) - manufactures metal and plastic packaging, primarily for
beverages and foods
* VIACOM INC. - CLASS B (VIA.B) - a worldwide entertainment and publishing
company
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 27.66%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 27
<PAGE> 30
MANAGER'S OVERVIEW
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
Westcore Mid-Cap Opportunity Fund gained 31.08% for the fiscal year ended
May 31, 2000, strongly outpacing the returns for the Russell Midcap Index of
13.26% and the Lipper Mid-Cap Value index of 9.14%.
Value investing was a difficult area for most of our fiscal year; however,
we were able to outperform our indexes due to a significant shift in our stock
selection strategy. In the third quarter of 1999, we switched to what I refer to
as a "relative value approach." This approach enabled us to consider good
companies in sectors that aren't traditionally thought of as value areas, such
as technology. By focusing on those stocks that were cheaper on a relative basis
in the areas of the market that were performing well, we were able to drive our
returns well ahead of the indexes. Before the market corrected, we underweighted
our technology holdings and shifted to more conservative tech holdings--a move
that preserved our gains nicely.
We also participated in the IPO market and made some successful decisions
here. For example, Finisar, a maker of fiber optic networking equipment,
performed extremely well due to the fact that it was a profitable company, was
relatively undervalued and produced a good product in a rapidly growing
industry. Finisar more than quadrupled in price from where we purchased it.
--------------------------------------------------------------------------------
28 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 31
MANAGER'S OVERVIEW
"I BELIEVE THAT
ECONOMIC FACTORS
ARE COMING
TOGETHER TO
INDICATE THAT
VALUE IS ON THE
CUSP OF TURNING
AROUND."
An example of a strong performer in our portfolio that was not an IPO is
Dynegy, an independent power producer. Dynegy is taking advantage of new
opportunities being created by an industry rapidly becoming deregulated by
building natural gas-fired generating plants.
Unfortunately, not all of our stories were good this year. One of our more
disappointing purchases was Conseco, an insurance company. The outlook for
Conseco was very positive following a merger with a consumer finance company and
the synergies expected there. However, the stock rapidly lost value when
investors lost confidence in some of its business practices.
Overall, I am very enthusiastic about the outlook for mid-cap value stocks.
I believe that economic factors are coming together to indicate that value is on
the cusp of turning around. We have seen a peak in the bull market and in
economic earnings growth, and a deceleration in the rate of economic growth.
There is a large disparity in the price-to-earnings ratio ("P/Es") of sky-high
growth and bottomed-out value stocks--a condition that naturally tends to
correct itself, moving the extremes back to the middleground. We are, in fact,
at a place in time where the P/Es of value companies are the cheapest we have
seen in 25 years, which is a great time to be a value investor.
--------------------------------------------------------------------------------
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<PAGE> 32
MANAGER'S OVERVIEW
WESTCORE MID-CAP OPPORTUNITY FUND (TICKER NOT YET AVAILABLE)
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH* 1-YEAR 5-YEAR 10-YEAR 10/1/98
------------ -------- ------ ------ ------- ------------
<S> <C> <C> <C> <C> <C>
5/31/00 13.78% 31.08% N/A N/A 26.88%
6/30/00 7.91% 27.33% N/A N/A 24.70%
</TABLE>
Average annual total returns reflect reinvestment of all dividends, capital
gains distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements, the total return figures
would have been lower. Fund inception date is 10/1/98. 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. *Not annualized.
This Fund participates in the Initial Public Offering ("IPO") market, and a
significant portion of the fund's returns have been attributable to its
investment in IPOs, which in turn have had a magnified impact due to the fund's
relatively small asset base. As the Fund's assets continue to grow, it will be
increasingly less likely to experience substantially similar performance by
investing in IPOs.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
WESTCORE MID-CAP OPPORTUNITY FUND, THE RUSSELL MIDCAP INDEX
AND LIPPER MID-CAP VALUE INDEX
[CHART]
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.
Lipper Index data provided by Lipper Analytical Services, Inc.
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.
Lipper Multi-Cap Value Index is an unmanaged index comprised of the 30 largest
mutual funds in the Lipper Multi-Cap Value Funds classification. This
classification consists of funds that invest at least 75% of their equity assets
in companies considered to be undervalued relative to a major unmanaged stock
index and that have market capitalizations (on a three-year weighted basis) of
below 300% of the dollar-weighted median market capitalization of the S&P
Mid-Cap 400 Index.
An investment cannot be made directly in an index.
--------------------------------------------------------------------------------
30 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 33
MANAGER'S OVERVIEW
TOP 10 EQUITY HOLDINGS AS OF MAY 31, 2000
* DYNEGY INC. - CLASS A (DYN) - provides energy products and services in
North America and the United Kingdom
+ COASTAL CORP. (CGP) - an energy holding company that transmits natural gas
and distributes petroleum and chemicals
- UNIONBANCAL CORP. (UB) - a bank holding company whose primary subsidiary is
Union Bank of California, N.A.
* ANTEC CORP. (ANTC) - develops and supplies optical transmission,
construction, and maintenance equipment for the broadband communications
industry
* SYBRON INTERNATIONAL CORP. (SYB) - manufactures laboratory and dental
supply products worldwide
* OMNICARE INC. (OCR) - provides professional pharmacy-related consulting and
data management services
* TELEPHONE & DATA SYSTEMS INC. (TDS) - a diversified telecommunications
company that operates primarily in the cellular, local telephone, and
personal communications services markets
* STARWOOD HOTELS & RESORTS WORLDWIDE, INC. (HOT) - owns, manages, and
franchises hotels throughout the world
* IDEXX LABORATORIES INC. (IDXX) - provides diagnostic, detection, and
information systems for veterinary, food, and water testing applications
* TENET HEALTHCARE CORP. (THC) - owns or operates general hospitals and
related health care facilities
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 30.82%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
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[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 31
<PAGE> 34
MANAGER'S OVERVIEW
WESTCORE SMALL-CAP OPPORTUNITY FUND
FUND OBJECTIVE: Seeks to maximize long-term capital appreciation primarily
through investments in companies with small capitalizations whose stocks appear
to be undervalued.
[PHOTO]
/s/ CHRISTIANNA WOOD
Christianna Wood, CFA
Portfolio Manager, Westcore
Small-Cap Opportunity Fund
For the fiscal year ended May 31, 2000, Westcore Small-Cap Opportunity
Fund's total return was 0.20% versus 9.9% for the Russell 2000 Index and 2.78%
for the Lipper Small-Cap Value Index.
Most of the fiscal year was difficult for value stocks, as illustrated in
the disparity of over 10 percentage points between the Russell 2000 Index, which
includes both growth and value stocks--returning 9.9%--and the Russell 2000
Value Index, representing only the value portion of the index--down 0.26%.
As we came into the year 2000, we made the decision to position the
portfolio so that it would perform well when the market corrected by
underweighting technology and overweighting finance, healthcare and energy. In
March of this year, the anticipated change in the market occurred and the shift
was decidedly in favor of value stocks and away from the high flying, often
profitless technology, internet and telecommunication stocks. As a result, our
performance deficit began to lessen as we closed out the fiscal year.
The technology stocks we did own, however, performed extremely well. We
emphasized stocks that were less risky and generated profits, such as
semiconductors and software companies. International Rectifiers, a company that
makes power semiconductors for lighting, is an example of a holding that
performed well. Others are Symantec, a company that makes anti-virus software,
and Integrated Devices, that makes high-performance integrated circuits.
--------------------------------------------------------------------------------
32 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 35
MANAGER'S OVERVIEW
The deeper cyclical stocks, such as automotive and housing related stocks,
were disappointing this year. Though these companies had good earnings, stock
prices did not do well because of an "end of cycle halo"--a dark cloud hanging
over these stocks because investors didn't believe earnings were sustainable
this far into an extended economic cycle.
Importantly, this year we refined our value investment process. As always,
we continue to focus on companies with attractive relative valuations, but our
process now places more emphasis on in-depth fundamental analysis. We will
require a business to have a catalyst, such as some corporate event, management
change or new product to unlock the value in the stock. And we have worked to
improve our execution and timing for buy and sell decisions.
I believe the prospects for small-cap value is outstanding. Several
economic events have occurred to signal a positive environment for value stocks:
We have reached the peak in the market and the earnings of the economy; the rate
of growth of earnings in the economy is decelerating; and the price-to-earnings
ratio of value stocks are some of the lowest we have seen in 25 years. These
factors indicate the possibility for a very bright future for value stocks.
"I BELIEVE THE
PROSPECTS FOR
SMALL-CAP VALUE IS
OUTSTANDING. SEVERAL
ECONOMIC EVENTS
HAVE OCCURRED TO
SIGNAL A POSITIVE
ENVIRONMENT FOR
VALUE STOCKS..."
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<PAGE> 36
MANAGER'S OVERVIEW
WESTCORE SMALL-CAP OPPORTUNITY FUND (WTSCX)
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH* 1-YEAR 5-YEAR 10-YEAR 12/28/93
------------ -------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 6.36% 0.20% 10.88% N/A 9.70%
6/30/00 3.88% (0.56%) 10.98% N/A 10.20%
</TABLE>
Total returns reflect reinvestment of all dividends, capital gains
distributions, all fee waivers in effect and any expense reimbursements. Without
the fee waivers and expense reimbursements, the total return figures would have
been lower. Fund inception date is 12/28/93. Past performance is not indicative
of future results. Principal value may fluctuate and shares, when redeemed, may
be worth more or less than their original cost. *Not annualized.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
WESTCORE SMALL-CAP OPPORTUNITY FUND, THE RUSSELL 2000 INDEX
AND LIPPER SMALL-CAP VALUE INDEX
[CHART]
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.
Lipper Index data provided by Lipper Analytical Services, Inc.
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 11% of the total market capitalization of the Russell 3000 Index.
Lipper Small-Cap Value Index is an unmanaged index comprised of the 30 largest
mutual funds in the Lipper Small-Cap Value Funds classification. This
classification consists of funds that invest at least 75% of their equity assets
in companies considered to be undervalued relative to a major unmanaged stock
index and that have market capitalizations (on a three-year weighted basis) of
less than 250% of the dollar-weighted median market capitalization of the S&P
Small-Cap 600 Index.
An investment cannot be made directly in an index.
--------------------------------------------------------------------------------
34 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 37
MANAGER'S OVERVIEW
TOP 10 EQUITY HOLDINGS AS OF MAY 31, 2000
* ANTEC CORP. (ANTC) - develops and supplies optical transmission,
construction, and maintenance equipment for the broadband communications
industry
* ACNIELSEN CORP. (ART) - delivers market research, information, and analysis
to the consumer products and services
+ INTERNATIONAL RECTIFIER CORP. (IRF) - manufactures power semiconductors
* DENTSPLY INTERNATIONAL INC. (XRAY) - manufactures dental supplies on a
worldwide basis
* VICOR CORP. (VICR) - develops modular power components and complete power
systems
* IDT CORP. (IDTC) - provides a variety of telecommunications services
including long distance telecommunications services, internet access, and
internet telephone services
* OMNICARE INC. (OCR) - provides professional pharmacy-related consulting and
data management services
* EARTHGRAINS CO. (EGR) - an international manufacturer of packaged fresh
bread and baked goods and refrigerated dough products
* HYPERION SOLUTIONS CORP. (HYSL) - develops and supports enterprise analytic
application software
* OCEAN ENERGY INC. (OEI) - explores and develops crude oil and natural gas
properties
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 24.11%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 35
<PAGE> 38
MANAGER'S OVERVIEW
WESTCORE LONG-TERM BOND FUND
FUND OBJECTIVE: Seeks to maximize long-term total rate of return by investing
primarily in investment-grade bonds.
[PHOTO]
/s/ JEROME R. POWERS
Jerome R. Powers, CFA
Portfolio Manager, Westcore
Long-Term Bond Fund
Westcore Long-Term Bond Fund's total return for the fiscal year ended May
31, 2000, was 0.11% versus the Lehman Brothers Long-Term Government/Corporate
Bond Index of 0.65% and the Lipper Corporate Debt BBB Index of -0.41%. A bond
fund's total return equals its coupon income plus or minus changes in bond
prices. In a period of rising interest rates, bond prices typically fall.
However, the income, or yield, that a bond portfolio produces tends to rise. The
30-day SEC yield for the Fund was 6.86% as of May 31, 2000.*
The Federal Reserve's actions to raise interest rates to slow the economy
did not have as drastic an effect on long-term rates as they did on shorter-term
rates. This was mainly due to the U.S. Treasury's announcement of a program to
buy back longer-term securities because of large budget surpluses. This action
created an increased demand for those long securities, which moderated price
declines.
A factor that did have an effect on our performance was the dramatic
widening of credit and mortgage spreads during this time period due to potential
credit concerns, liquidity concerns in the marketplace and concerns over the
stock market.
For this time period, we placed an emphasis on long-term treasury
securities, which have performed extremely well, and de-emphasized long-term
corporate bonds, which have had a very difficult time.
We do, however, have a fairly large exposure to transportation securities.
Our research has found high-quality enhanced equipment trust certificates--those
--------------------------------------------------------------------------------
36 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 39
MANAGER'S OVERVIEW
securities backed by collateral, such as an airplane. Names we own in this area
are US Airways, Continental, United Airlines and Jet Equipment Trust.
"...CONFLICTING
FORCES DRIVE
TOWARDS
UNCERTAINTY, BUT
FAIRLY STABLE
INTEREST RATES."
Real Estate Investment Trusts (REITs) is another corporate area that has
contributed positively to our performance. Through our research, we have
uncovered securities with solid performance opportunities due to the stable
incomes that are provided by the way the underlying companies are structured.
Two examples of companies in this area are Equity Office Properties and ERP
Operating.
We are currently at an interesting point in the marketplace. Interest rates
are not likely to move significantly in either direction, the economy has been
too strong to warrant lower interest rates and oil price increases are
concerning from an inflationary perspective. On the other hand, the six interest
rate increases have created some slow-down in certain sectors of the economy
such as housing. These conflicting forces drive towards uncertainty, but fairly
stable interest rates. Given the expectation of continued Treasury buy-backs, we
believe long-term interest rates will remain relatively low.
IMPORTANT CHANGES TO YOUR FUND
With this report, I believe that it is important to address a significant
upcoming change to the investment objective of the Westcore Long-Term Bond Fund.
As of October 1, 2000, the name will change to the Westcore Flexible Income
Fund. This restructured Fund will seek long-term total rate of return by
investing primarily through investments in bonds, and to a lesser extent through
convertible securities and high-yielding equities. This change will allow the
Fund to take better advantage of our fixed income team's extensive experience in
credit analysis. Additionally, the Funds' net operating expenses for the fiscal
year ending May 31, 2001 will be lower than for the fiscal year ended May 31,
2000. The Prospectus Supplement dated July 28, 2000 explains the changes in
detail.
* Without the absorption of fee waivers and/or expense reimbursements, the
30-day SEC yield would have been 6.58%.
--------------------------------------------------------------------------------
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<PAGE> 40
MANAGER'S OVERVIEW
WESTCORE LONG-TERM BOND FUND (WTLTX)
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH* 1-YEAR 5-YEAR 10-YEAR 6/1/88
------------ -------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 2.10% 0.11% 5.97% 8.60% 8.84%
6/30/00 5.93% 3.49% 6.24% 8.62% 8.98%
</TABLE>
Average annual total returns reflect reinvestment of all dividends, capital
gains distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements, the total return figures
would have been lower. Fund inception date is 6/1/88. Past performance is not
indicative of future results. Principal value may fluctuate and shares, when
redeemed, may be worth more or less than their original cost. *Not annualized.
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 LIPPER CORPORATE DEBT BBB INDEX
[CHART]
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.
Lipper Index data provided by Lipper Analytical Services, Inc.
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.
Lipper Corporate Debt BBB Index is comprised of the 30 largest mutual funds in
the Lipper Corporate Debt BBB Rated (BBB) Funds classification. This
classification consists of funds that invest at least 65% of their assets in
corporate and government debt issues rated in the top four grades.
An investment cannot be made directly in an index.
--------------------------------------------------------------------------------
38 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 41
MANAGER'S OVERVIEW
TOP 10 FIXED-INCOME HOLDINGS AS OF MAY 31, 2000
U.S. GOVERNMENT ZERO COUPON STRIPS~
U.S. TREASURY BONDS~
- LINCOLN NATIONAL INSURANCE CORP., 9.125%, 10/01/2024
- K MART CORP., 7.95%, 02/01/2023
- AMR CORP., 10.00%, 04/15/2021
- LUBRIZOL CORP., 7.25%, 06/15/2025
- BORDEN INC., 7.875%, 02/15/2023
- PROPERTY TRUST OF AMERICA, 6.875%, 02/15/2008
- ZURICH REINSURANCE CENTRE HOLDINGS, 7.125%, 10/15/2023
- FHLMC POOL #G00336, 6.00%, 10/01/2024
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 63.11%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
~ Please Note: "U.S. Government Zero Coupon Strips" is a grouping of all U.S.
Government Zero Coupon Strip issues and "U.S. Treasury Bonds" is a grouping
of all U.S. Treasury Bond issues held in the portfolio as of May 31, 2000.
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
--------------------------------------------------------------------------------
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<PAGE> 42
MANAGER'S OVERVIEW
WESTCORE INTERMEDIATE-TERM BOND FUND
FUND OBJECTIVE: Seeks current income with less volatility of principal than
funds with longer maturities by investing primarily in investment-grade bonds.
[PHOTO]
/s/ JEROME R. POWERS
Jerome R. Powers, CFA
Portfolio Manager, Westcore
Intermediate-Term Bond Fund
The Westcore Intermediate-Term Bond Fund's total return for the fiscal year
ended May 31, 2000 was 1.67%. In comparison, the Lehman Brothers Intermediate
Government/Corporate Index was up 2.49% and the Lipper Intermediate Investment
Grade Debt Index returned 1.26%. A bond fund's total return equals its coupon
income plus or minus changes in bond prices. In a period of rising interest
rates, bond prices typically fall. However, the income, or yield, that a bond
portfolio produces tends to rise. The 30-day SEC yield for the Fund was 7.33% as
of May 31, 2000.*
Total return was pushed down by the Federal Reserve raising interest rates
six times during the course of the year due to the strong economic growth and
the inflationary concerns that accompany that. Another factor contributing to
our performance was credit spreads and mortgage spreads widened dramatically
during this time period due to credit, liquidity and stock market concerns.
--------------------------------------------------------------------------------
40 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 43
MANAGER'S OVERVIEW
We emphasize corporate securities in this Fund, where we are able to add
value through our research. For example, we have a fairly large exposure to
transportation securities such as US Airways, Continental, United Airlines and
Jet Equipment Trust. Our holdings here are high-quality enhanced equipment trust
certificates, meaning they are backed by the actual airplanes and other such
collateral.
"LOOKING AHEAD,
INTEREST RATES
ARE NOT LIKELY
TO MOVE
SIGNIFICANTLY IN
EITHER DIRECTION."
Real Estate Investment Trusts (REITs) is another corporate area that has
contributed positively to our performance. Avalon Bay Communities and Evans
Withycombe Residential are examples of holdings in this area.
Looking ahead, interest rates are not likely to move significantly in
either direction. The economy has been too strong to warrant lower interest
rates and oil price increases are concerning from an inflationary perspective.
On the other hand, the six interest rate increases have created some slow down
in certain sectors of the economy such as housing. We believe these conflicting
forces drive towards uncertainty, but fairly stable interest rates.
IMPORTANT CHANGES TO YOUR FUND
With this report, I believe that it is important to address a significant
upcoming change to the investment objective of the Westcore Intermediate-Term
Bond Fund. As of October 1, 2000, the name will change to the Westcore Plus Bond
Fund. This restructured Fund will seek long-term total rate of return by
investing primarily in investment-grade corporate bonds of varying maturities.
This change will allow the Fund to take better advantage of our fixed income
team's extensive experience in credit analysis. Additionally, the Funds' net
operating expenses for the fiscal year ending May 31, 2001 will be lower than
for the fiscal year ended May 31, 2000. The Prospectus Supplement dated July 28,
2000 explains the changes in detail.
* Without the absorption of fee waivers and/or expense reimbursements, the
30-day SEC yield would have been 7.07%.
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 41
<PAGE> 44
MANAGER'S OVERVIEW
WESTCORE INTERMEDIATE-TERM BOND FUND (WTIBX)
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH* 1-YEAR 5-YEAR 10-YEAR 6/1/88
------------ -------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 0.73% 1.67% 5.12% 6.69% 6.94%
6/30/00 2.92% 3.72% 5.40% 6.77% 7.06%
</TABLE>
Average annual total returns reflect reinvestment of all dividends, capital
gains distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements, the total return figures
would have been lower. Fund inception date is 6/1/88. Past performance is not
indicative of future results. Principal value may fluctuate and shares, when
redeemed, may be worth more or less than their original cost. *Not annualized.
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
LIPPER INTERMEDIATE INVESTMENT GRADE DEBT INDEX
[CHART]
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.
Lipper Index data provided by Lipper Analytical Services, Inc.
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.
Lipper Intermediate Investment Grade Debt Index is comprised of the 30 largest
mutual funds in the Lipper Intermediate Investment Grade Debt Funds
classification. This classification consists of funds that invest at least 65%
of their assets in investment grade debt issues (rated in top four grades) with
dollar-weighted average maturities of five to ten years.
Note: For the time period 6/1/88 - 5/31/89, the Lipper Intermediate Investment
Grade Index was not in existence. Westcore Funds selected the Lipper Corporate
Debt BBB Index as the most comparable Lipper Index for this time period.
Lipper Corporate Debt BBB Index is comprised of the 30 largest mutual funds in
the Lipper Corporate Debt BBB Rated (BBB) Funds classification. This
classification consists of funds that invest at least 65% of their assets in
corporate and government debt issues rated in the top four grades.
An investment cannot be made directly in an index.
--------------------------------------------------------------------------------
42 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 45
MANAGER'S OVERVIEW
TOP 10 FIXED-INCOME HOLDINGS AS OF MAY 31, 2000
U.S. TREASURY NOTES~
+ FHLMC POOL #G00336, 6.00%, 10/01/2024
+ TIME WARNER ENTERTAINMENT CO., 9.625%, 05/01/2002
* FNMA POOL #524784, 7.00%, 01/01/2030
+ NEW PLAN REALTY TRUST, 7.75%, 04/06/2005
+ WEINGARTEN REALTY INVESTORS TRUST, 7.22%, 06/01/2005
+ KIMCO REALTY CORP., 6.83%, 11/14/2005
+ UNITED AIR LINES INC. PASS-THROUGH CERTIFICATES, SERIES 95-A1, 9.02%,
04/19/2012
* RAYTHEON CO., 6.50%, 07/15/2005
* WASHINGTON REAL ESTATE INVESTMENT TRUST, 7.125%, 08/13/2003
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 32.87%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
~ Please Note: "U.S. Treasury Notes" is a grouping of all U.S. Treasury Note
issues held in the portfolio as of May 31, 2000.
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 43
<PAGE> 46
MANAGER'S OVERVIEW
WESTCORE COLORADO TAX-EXEMPT FUND
FUND OBJECTIVE: Seeks to provide income exempt from both federal and Colorado
state personal income taxes by emphasizing Colorado municipal bonds with
intermediate maturities.
[PHOTO]
/s/ THOMAS B. STEVENS
Thomas B. Stevens, CFA
Portfolio Manager, Westcore
Colorado Tax-Exempt Fund
Westcore Colorado Tax-Exempt Fund's total return for the fiscal year ended
May 31, 2000 was -1.36%. In comparison, the return for the Lehman Brothers 10
Year Municipal Bond Index was -0.18%, and the Lipper Intermediate Municipal
Debt Index was -0.71%.
Rising interest rates put pressure on the municipal market during this fiscal
year, and the total return of the Fund suffered, since bond prices move
inversely to changes in interest rates. However, as bond yields rose, investors
were offered higher tax-exempt income. The 30-day SEC yield for the Westcore
Colorado Tax-Exempt Fund was 4.82% as of May 31, 2000.* For taxpayers in a
combined Federal and Colorado income tax bracket of 34.28%, that equates to a
tax-equivalent yield of 7.33%.*
Several factors in addition to rising interest rates have affected the
municipal bond market in Colorado this year. On the one hand, the strong
economy has caused many municipal debt ratings to improve over the past year,
which is positive for the Fund. On the other hand, because of the burgeoning
tax revenues for some of these municipalities, the need to finance public
projects has lessened. So the issuance, and consequently the supply, of
municipal debt securities has declined, making it difficult to find good
investments for the Fund.
--------------------------------------------------------------------------------
44 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 47
MANAGER'S OVERVIEW
"We continue to
advance the idea of
maintaining a high-
quality portfolio, the
majority of which is
either insured or
pre-refunded to
maturity."
The Fund is focusing on bonds with higher coupons in intermediate maturities
(2-10 years) that will not be subject to wide price volatility should interest
rates continue to go up. For example, we have been purchasing some issues with
a 5.5-6.0% coupon at premiums to par value and, in the process, we've been
selling some of the deeper discount issues with coupons in the 4.25-4.5% range.
This should benefit shareholders in the Fund as most of the return will
consequently come in the form of coupon or interest income rather than price
appreciation.
Looking ahead, it is our belief the Federal Reserve will minimize the extent
of implementing further interest rate increases. Much depends on the economic
data and inflation numbers to be released in the ensuing months. Given this, it
is our intent to gradually extend the Fund's weighted average maturity and
duration to lock in what we believe to be cyclically attractive interest rate
levels. We continue to advance the idea of maintaining a high-quality
portfolio, the majority of which is either insured or pre-refunded to maturity.
We believe this Fund continues to be a suitable investment for risk-averse
investors seeking tax-exempt income in a high-quality vehicle.
*Without the absorption of fee waivers and/or expense reimbursements, the
figures quoted would have been 4.25% for the 30-day SEC yield and 6.47% for the
tax-equivalent yield.
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 45
<PAGE> 48
MANAGER'S OVERVIEW
WESTCORE COLORADO TAX-EXEMPT FUND (WTCOX)
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
SINCE INCEP.
PERIOD ENDED 6-MONTH* 1-YEAR 5-YEAR 10-YEAR 6/1/91
------------- ------- ------ ------ ------- -------------
<S> <C> <C> <C> <C> <C>
5/31/00 0.21% (1.36%) 3.99% N/A 5.41%
6/30/00 3.13% 2.73% 4.53% N/A 5.64%
</TABLE>
Average annual total returns reflect reinvestment of all dividends, capital
gains distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements, the total return figures
would have been lower. Fund inception date is 6/1/91. Past performance is not
indicative of future results. Principal value may fluctuate and shares, when
redeemed, may be worth more or less than their original cost. *Not annualized.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WESTCORE COLORADO
TAX-EXEMPT FUND, THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX AND LIPPER
INTERMEDIATE MUNICIPAL DEBT INDEX
[GRAPH]
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.
Lipper Index data provided by Lipper Analytical Services, Inc.
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.
Lipper Intermediate Municipal Debt Index is comprised of the 30 largest mutual
funds in the Lipper Intermediate Municipal Debt Funds classification. This
classification consists of funds that invest in municipal debt issues with
dollar-weighted average maturities of five to ten years.
Note: Lipper categorizes Westcore Colorado Tax-Exempt Fund in the Lipper Other
States Municipal Debt category. However, Lipper does not calculate a Lipper
Index for this category. Therefore, Westcore Funds selected the Lipper
Intermediate Municipal Debt Index as the most comparable Lipper Index. An
investment cannot be made directly in an index.
-------------------------------------------------------------------------------
46 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 49
MANAGER'S OVERVIEW
TOP 10 MUNICIPAL BOND HOLDINGS AS OF MAY 31, 2000
+ SUMMIT COUNTY SCHOOL DISTRICT RE-1, 6.55%, 12/01/2009, Prerefunded
12/01/2004 @ 100.00, FGIC
* MESA COUNTY VALLEY SCHOOL DISTRICT 51, 6.00%, 12/01/2006
+ POUDRE VALLEY HOSPITAL DISTRICT, LARIMER COUNTY, 5.375%, 11/15/2007,
Optional 11/15/2003 @ 100.00
+ BOULDER & GILPIN COUNTIES, BOULDER VALLEY SCHOOL DISTRICT RE-2, 5.00%,
12/01/2011, Optional 12/01/2007 @ 100.00, FGIC
* EAGLE GARFIELD & ROUTT COUNTIES SCHOOL DISTRICT RE-50J, 5.25%, 12/01/2015,
Optional 12/01/2009 @ 101.00, FGIC
* DOUGLAS & ELBERT COUNTIES SCHOOL RE-1, 6.50%, 12/15/2016, Prerefunded
12/15/2004 @ 101.00
* LA PLATA COUNTY SCHOOL DISTRICT 9-R, 6.60%, 11/01/2017, Optional
11/01/2002 @ 101.00, FGIC
+ JEFFERSON COUNTY SCHOOL DISTRICT R-1, 5.90%, 12/15/2004, Prerefunded
12/15/2002 @ 101.00, AMBAC
* ADAMS COUNTY SCHOOL DISTRICT 12, 6.125%, 12/15/2007, Optional 12/15/2003 @
100.00, FGIC
+ BOULDER COUNTY OPEN SPACE SALES & USE TAX, 5.75%, 12/15/2004, FGIC
PERCENT OF NET ASSETS IN TOP TEN HOLDINGS: 20.51%
+ denotes increase in holding since last report (11/30/99)
- denotes decrease in holding since last report (11/30/99)
* denotes new top ten holding since last report (11/30/99)
Top ten holdings are subject to change, and there are no guarantees that the
Fund will continue to remain invested in any particular company or holding.
SECTOR PROFILE AS A PERCENT OF NET ASSETS FOR MAY 31, 2000
[PIE CHART]
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 47
<PAGE> 50
FINANCIAL TABLE OF CONTENTS
<TABLE>
<S> <C>
STATEMENTS OF INVESTMENTS .................................................. 49
Westcore MIDCO Growth Fund ........................................... 49
Westcore Growth and Income Fund ...................................... 53
Westcore International Frontier Fund ................................. 56
Westcore Small-Cap Growth Fund ....................................... 59
Westcore Select Fund ................................................. 61
Westcore Blue Chip Fund .............................................. 63
Westcore Mid-Cap Opportunity Fund .................................... 66
Westcore Small-Cap Opportunity Fund .................................. 69
Westcore Long-Term Bond Fund ......................................... 72
Westcore Intermediate-Term Bond Fund ................................. 76
Westcore Colorado Tax-Exempt Fund .................................... 81
STATEMENTS OF ASSETS AND LIABILITIES ....................................... 89
STATEMENTS OF OPERATIONS ................................................... 93
STATEMENTS OF CHANGES IN NET ASSETS ........................................ 97
FINANCIAL HIGHLIGHTS ....................................................... 108
NOTES TO FINANCIAL STATEMENTS .............................................. 124
INDEPENDENT AUDITORS' REPORT ............................................... 138
</TABLE>
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48 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 51
STATEMENTS OF INVESTMENTS
WESTCORE MIDCO GROWTH FUND
<TABLE>
<CAPTION>
SHARES MARKET VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS 93.89%
BASIC MATERIALS 0.59%
CHEMICALS 0.17%
Uniroyal Technology
Corp.** 24,000 $ 384,000
PAPER & PACKAGING 0.42%
Sealed Air Corp.** 17,600 985,600
TOTAL BASIC MATERIALS
(Cost $1,672,012) 1,369,600
-----------------------------------------------------------------------------
CAPITAL GOODS 2.13%
AEROSPACE & DEFENSE 1.81%
General Motors Corp. -
Class H** 29,800 2,933,438
Metricom Inc.** 22,300 496,175
Sirius Satellite
Radio Inc.** 20,600 780,225
-----------
4,209,838
OFFICE PRODUCTS 0.32%
Office Depot Inc. ** 105,300 743,681
TOTAL CAPITAL GOODS
(Cost $4,592,690) 4,953,519
-----------------------------------------------------------------------------
CONSUMER CYCLICALS 16.52%
AUTOMOTIVE 1.24%
Gentex Corp. ** 71,300 2,210,300
SPX Corp. 6,300 663,469
-----------
2,873,769
CONSUMER SOFT GOODS 0.35%
Jones Apparel
Group Inc.** 30,200 809,737
HOTELS - RESTAURANTS - LEISURE 2.58%
Marriott International Inc. 20,000 725,000
Metro-Goldwyn-
Mayer Inc.** 152,300 $ 4,321,513
MGM Grand Inc. 28,800 936,000
-----------
5,982,513
MEDIA - PUBLISHING - CABLE 7.77%
AMFM Inc.** 35,500 2,405,125
Infinity Broadcasting
Corp. - Class A** 63,600 2,011,350
Sinclair Broadcast Group
Inc. - Class A** 140,300 1,157,475
TV Guide Inc. - Class A** 55,000 1,415,391
USA Networks Inc.** 240,240 4,549,545
Westwood One Inc.** 196,600 6,524,662
-----------
18,063,548
RETAIL 4.58%
Best Buy Company Inc.** 30,800 1,971,200
Circuit City Stores -
Circuit City Group 28,900 1,439,581
Costco Wholesale Corp.** 28,600 913,413
Family Dollar Stores 75,800 1,497,050
Kohls Corp.** 46,000 2,380,500
Nordstrom Inc. 46,700 1,173,337
Zale Corp.** 33,500 1,273,000
-----------
10,648,081
TOTAL CONSUMER CYCLICALS
(Cost $26,511,395) 38,377,648
-----------------------------------------------------------------------------
CONSUMER STAPLES 1.59%
HOUSEHOLD PRODUCTS 0.40%
Estee Lauder Companies
Inc. - Class A 20,700 927,619
RETAIL FOOD & DRUG 1.19%
Sysco Corp. 66,200 2,776,263
TOTAL CONSUMER STAPLES
(Cost $2,965,482) 3,703,882
-----------------------------------------------------------------------------
</TABLE>
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[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 49
<PAGE> 52
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
----------- ------------
<S> <C> <C>
CREDIT SENSITIVE 6.71%
BANKS 0.28%
U. S. Trust Corp. 4,700 $ 667,694
FINANCIAL SERVICES 3.90%
Capital One Financial Corp. 55,200 2,608,200
CheckFree Holdings Corp.** 8,700 363,769
Kansas City Southern Industries Inc. 58,000 3,900,500
Knight Trading Group Inc.** 23,500 682,969
S1 Corp.** 14,800 497,650
Waddell & Reed Financial Inc. -
Class A 36,750 1,008,328
-----------
9,061,416
INSURANCE 0.54%
AMBAC Financial Group Inc. 24,800 1,249,300
UTILITIES - ELECTRIC 0.30%
AES Corp.** 8,000 698,000
UTILITIES - TELEPHONE 1.69%
AT&T Canada Inc. - Class B** 30,500 1,189,500
McLeodUSA Inc. - Class A** 136,600 2,732,000
-----------
3,921,500
TOTAL CREDIT SENSITIVE
(Cost $15,429,926) 15,597,910
-----------------------------------------------------------------------------
ENERGY 3.60%
ENERGY EQUIPMENT & SERVICES 3.11%
Baker Hughes Inc. 36,500 1,323,125
BJ Services Co. ** 15,200 1,088,700
Nabors Industries Inc.** 64,900 2,790,700
Noble Drilling Corp.** 46,900 2,034,287
-----------
7,236,812
ENERGY PRODUCERS 0.49%
El Paso Energy Corp. 21,900 1,127,850
TOTAL ENERGY
(Cost $3,923,664) 8,364,662
-----------------------------------------------------------------------------
HEALTHCARE 9.90%
BIOTECHNOLOGY 1.42%
ACLARA BioSciences Inc.** 26,100 688,388
PE Corp. - Celera
Genomics Group** 15,900 884,437
QLT Inc.** 35,400 1,732,388
-----------
3,305,213
DRUGS & HEALTHCARE PRODUCTS 4.72%
Biomet Inc. 38,800 1,399,225
Forest Laboratories Inc. -
Class A** 19,300 1,708,050
IDEXX Laboratories Corp.** 111,500 2,766,594
Millennium
Pharmaceuticals Inc.** 13,900 1,162,387
PE Corp. - PE Biosystems Group 30,800 1,709,400
Sybron International Corp.** 69,900 2,214,956
-----------
10,960,612
HEALTHCARE SERVICES 3.76%
Caremark Rx Inc.** 107,900 654,144
Health Management
Associates Inc. -
Class A** 110,900 1,310,006
Laboratory Corp. of
America Holdings** 21,440 1,541,000
Omnicare Inc. 127,400 2,102,100
Tenet Healthcare Corp. 111,000 2,844,375
TriZetto Group Inc.** 21,300 274,238
-----------
8,725,863
-----------
TOTAL HEALTHCARE
(Cost $17,740,193) 22,991,688
-----------------------------------------------------------------------------
</TABLE>
-------------------------------------------------------------------------------
50 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 53
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
----------- ------------
<S> <C> <C>
SERVICES 5.02%
BUSINESS SERVICES 3.84%
Cintas Corp. 100,750 $ 4,433,000
Concord EFS Inc.** 49,000 1,188,250
Paychex Inc. 50,550 1,769,250
TMP Worldwide Inc.** 27,900 1,541,475
--------------
8,931,975
CONSUMER SERVICES 1.18%
Cendant Corp.** 115,800 1,534,350
Sylvan Learning Systems Inc.** 106,800 1,201,500
--------------
2,735,850
TOTAL SERVICES
(Cost $11,164,066) 11,667,825
-----------------------------------------------------------------------------
TECHNOLOGY 47.83%
COMPUTER HARDWARE 2.46%
Gateway Inc.** 23,200 1,148,400
Ingram Micro Inc.** 74,700 1,260,562
Lexmark International Group Inc. - Class A** 13,600 948,600
Network Appliance Inc.** 36,600 2,362,988
--------------
5,720,550
COMPUTER SERVICES & SOFTWARE 16.68%
AnswerThink Consulting Group Inc.** 20,300 359,056
BEA Systems Inc.** 45,100 1,629,237
BroadVision Inc.** 12,500 447,656
Comdisco Inc. 50,900 1,304,313
Computer Sciences Corp.** 24,900 2,388,844
Digex Inc. - Class A** 10,900 460,525
Digital Island** 30,400 557,650
E.piphany Inc.** 9,100 710,938
Fiserv Inc.** 41,600 1,944,800
I2 Technologies Inc.** 16,300 1,733,912
Infospace Inc.** 25,800 1,119,075
Inktomi Corp.** 18,200 2,031,575
Intuit Inc.** 49,600 1,798,000
Kana Communications Inc.** 4,600 206,138
Keynote Systems Inc.** 7,900 275,019
MarchFirst Inc.** 30,186 569,761
Network Solutions Inc.** 5,800 853,325
Parametric Technology Corp.** 74,500 791,562
Portal Software Inc.** 23,100 929,775
RealNetworks Inc.** 29,000 1,053,063
Siebel Systems Inc.** 32,900 3,849,300
SmartForce Plc - ADR** 60,800 2,557,400
360Networks Inc. ** 45,900 645,469
USinternetworking Inc.** 86,400 1,549,800
VeriSign Inc.** 16,600 2,247,225
Veritas Software Corp.** 51,475 5,996,837
Vignette Corp.** 10,000 275,625
Vitria Technology Inc.** 13,600 476,000
--------------
38,761,880
ELECTRONICS 15.78%
Altera Corp.** 51,300 4,405,387
Analog Devices Inc.** 49,800 3,834,600
Atmel Corp.** 59,000 2,253,062
Conexant Systems Inc.** 23,200 872,900
Flextronics International Ltd.** 14,700 800,231
Jabil Circuit Inc.** 43,300 1,580,450
Kla-Tencor Corp.** 11,800 584,838
Linear Technology Corp. 61,800 3,650,062
Maxim Integrated Products Inc. ** 61,600 3,907,750
Microchip Technology Inc.** 21,700 1,231,814
Novellus Systems Inc.** 16,100 775,819
PMC-Sierra Inc.** 19,100 2,927,075
SanDisk Corp.** 65,400 3,801,375
Vitesse Semiconductor Corp.** 21,000 1,063,125
Xilinx Inc.** 65,200 4,963,350
--------------
36,651,838
</TABLE>
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[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 51
<PAGE> 54
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ --------------
<S> <C> <C>
NETWORKING 0.34%
Internap Network
Services Corp.** 27,700 $ 792,912
TELECOMMUNICATIONS 12.57%
Carrier1 International
SA - ADR** 78,500 1,236,375
Ciena Corp.** 28,900 3,458,969
Clarent Corp.** 14,900 631,388
Comverse Technology Inc.** 25,000 2,284,375
Covad Communications Group Inc.** 7,100 167,737
E-Tek Dynamics Inc.** 9,700 1,782,981
Exodus Communications Inc.** 18,800 1,326,575
ICG Communications Inc.** 48,500 912,406
JDS Uniphase Corp.** 61,400 5,403,200
Metromedia Fiber Network Inc. - Class A** 47,800 1,478,812
MGC Communications Inc.** 61,500 2,521,500
Nextlink Communications Inc. - Class A** 13,000 910,813
ONI Systems Corp.** 900 22,500
Paradyne Networks Corp.** 17,200 483,750
PSINet Inc. ** 41,100 1,071,169
Sonus Networks Inc.** 1,600 116,700
Verio Inc.** 29,600 1,683,500
Viatel Inc.** 37,100 925,181
Virata Corp.** 9,800 404,250
WinStar Communications Inc.** 84,150 2,387,756
--------------
29,209,937
TOTAL TECHNOLOGY
(Cost $69,915,342) 111,137,117
---------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $153,914,770) 218,163,851
---------------------------------------------------------------------------------
MUTUAL FUNDS 5.50%
Dreyfus Cash Management Fund 10,030,746 10,030,746
Fidelity Institutional Money Market Fund 2,750,000 2,750,000
--------------
12,780,746
TOTAL MUTUAL FUNDS
(Cost $12,780,746) 12,780,746
---------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL
FOR SECURITIES LOANED 18.35%
COMMERCIAL PAPER 3.87%
American Express Co., 6.70%, 06/01/2000 3,000,000 3,000,000
Associates Corp., 6.76%, 06/01/2000 3,000,000 3,000,000
DaimlerChrysler AG, 6.75%, 06/01/2000 3,000,000 3,000,000
--------------
9,000,000
MUTUAL FUNDS 14.48%
AIM Liquid Assets Fund 5,350,332 5,350,332
AIM Prime Portfolio Fund 326,315 326,315
Mitchell Hutchins Private Money Market Fund(2) 27,958,937 27,958,937
--------------
33,635,584
TOTAL INVESTMENTS OF CASH COLLATERAL
FOR SECURITIES LOANED
(Cost $42,635,584) 42,635,584
---------------------------------------------------------------------------------
Total Investments
(Cost $209,331,100) 117.74% $ 273,580,181
Liabilities in Excess
of Other Assets (17.74%) (41,226,040)
--------------
NET ASSETS 100.00% $ 232,354,141
---------------------------------------------------------------------------------
</TABLE>
See Notes to Statements of Investments
-------------------------------------------------------------------------------
52 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 55
STATEMENTS OF INVESTMENTS
WESTCORE GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ --------------
<S> <C> <C>
COMMON STOCKS 94.55%
BASIC MATERIALS 3.35%
CHEMICALS 2.10%
Avery Dennison Corp. 2,500 $ 153,125
Pharmacia Corp. 3,600 186,975
--------------
340,100
PAPER & PACKAGING 1.25%
Sealed Air Corp.** 3,600 201,600
TOTAL BASIC MATERIALS
(Cost $529,955) 541,700
---------------------------------------------------------------------------------
CAPITAL GOODS 6.14%
AEROSPACE & DEFENSE 0.97%
General Motors Corp. - Class H** 1,600 157,500
ELECTRICAL EQUIPMENT 4.69%
General Electric Co. 14,400 757,800
OTHER - CAPITAL GOODS 0.48%
Corning Inc. 400 77,375
TOTAL CAPITAL GOODS
(Cost $481,680) 992,675
---------------------------------------------------------------------------------
CONSUMER CYCLICALS 10.92%
AUTOMOTIVE 0.98%
Gentex Corp.** 5,100 158,100
HOTELS - RESTAURANTS - LEISURE 0.85%
Marriott International Inc. 3,800 137,750
MEDIA - PUBLISHING - CABLE 3.91%
AMFM Inc.** 2,400 162,600
Time Warner Inc. 1,800 142,088
Viacom Inc. - Class B** 2,821 174,902
Westwood One Inc.** 4,600 152,662
--------------
632,252
RETAIL 5.18%
Bed Bath & Beyond Inc.** 2,400 88,350
Home Depot Inc. 3,900 190,369
Lowe's Companies Inc. 4,800 223,500
Wal-Mart Stores, Inc. 5,800 334,225
--------------
836,444
TOTAL CONSUMER CYCLICALS
(Cost $1,057,981) 1,764,546
---------------------------------------------------------------------------------
CONSUMER STAPLES 1.06%
FOOD, BEVERAGES & TOBACCO 1.06%
Hershey Foods Corp. 3,300 171,188
TOTAL CONSUMER STAPLES
(Cost $167,582) 171,188
---------------------------------------------------------------------------------
CREDIT SENSITIVE 17.23%
BANKS 3.34%
Wells Fargo & Co. 4,700 212,675
Zions Bancorporation 7,000 326,375
--------------
539,050
FINANCIAL SERVICES 4.82%
Capital One Financial Corp. 4,600 217,350
Charles Schwab Corp. 4,950 142,313
Household International Inc. 2,900 136,300
Kansas City Southern Industries 2,600 174,850
MBNA Corp. 3,862 107,653
--------------
778,466
INSURANCE 0.96%
American International Group 1,375 154,773
</TABLE>
-------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 53
<PAGE> 56
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ --------------
<S> <C> <C>
UTILITIES - ELECTRIC 3.02%
AES Corp. 5,592 $ 487,902
UTILITIES - GAS 3.37%
Enron Corp. 5,700 415,387
Williams Cos. Inc. 3,100 128,844
--------------
544,231
UTILITIES - TELEPHONE 1.72%
Sprint Corp. (FON Group) 2,400 145,200
WorldCom Inc. ** 3,543 133,306
--------------
278,506
TOTAL CREDIT SENSITIVE
(Cost $1,332,242) 2,782,928
---------------------------------------------------------------------------------
ENERGY 9.35%
ENERGY EQUIPMENT & SERVICES 5.20%
Baker Hughes Inc. 5,800 210,250
Halliburton Co. 1,800 91,800
Nabors Industries Inc.** 9,237 397,191
Schlumberger Ltd. 1,915 140,872
--------------
840,113
ENERGY PRODUCERS 4.15%
Anadarko Petroleum Corp. 10,500 557,156
El Paso Energy Corp. 2,200 113,300
--------------
670,456
TOTAL ENERGY
(Cost $966,977) 1,510,569
---------------------------------------------------------------------------------
HEALTHCARE 9.35%
BIOTECHNOLOGY 1.11%
Biogen Inc.** 1,700 92,650
Genentech Inc.** 800 85,900
--------------
178,550
DRUGS & HEALTHCARE PRODUCTS 7.67%
Abbott Laboratories Co. 3,600 146,475
Forest Laboratories - Class A** 900 79,650
Guidant Corp.** 3,300 167,063
IDEXX Laboratories Inc.** 8,000 198,500
Medtronic Inc. 3,400 175,525
Pfizer Inc. 3,400 151,513
Schering-Plough Corp. 4,100 198,337
Warner-Lambert Co. 1,000 122,125
--------------
1,239,188
HEALTHCARE SERVICES 0.57%
Health Management Associates Inc. - Class A** 7,800 92,137
TOTAL HEALTHCARE
(Cost $1,018,487) 1,509,875
---------------------------------------------------------------------------------
SERVICES 5.32%
BUSINESS SERVICES 4.97%
Cintas Corp. 5,500 242,000
Concord EFS Inc.** 3,600 87,300
Interim Services Inc.** 4,800 96,600
Omnicom Group 4,500 377,719
--------------
803,619
CONSUMER SERVICES 0.35%
Cendant Corp.** 4,229 56,034
TOTAL SERVICES
(Cost $487,802) 859,653
---------------------------------------------------------------------------------
TECHNOLOGY 31.83%
COMPUTER HARDWARE 4.10%
EMC Corp.** 2,100 244,256
Gateway Inc.** 2,200 108,900
International Business Machines Corp. 1,000 107,313
Lexmark International Group Inc. - Class A** 700 48,825
Sun Microsystems Inc.** 2,000 153,250
--------------
662,544
</TABLE>
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54 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 57
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ --------------
<S> <C> <C>
COMPUTER SERVICES & SOFTWARE 9.50%
America Online Inc.** 2,800 $ 148,400
First Data Corp.** 1,300 72,881
Fiserv Inc.** 3,700 172,975
Intuit Inc.** 4,500 163,125
Korea Thrunet Co. Ltd. - Class A 1,800 30,150
MarchFirst Inc.** 7,808 147,376
Microsoft Corp.** 4,100 256,506
Oracle Corp.** 4,000 287,500
Veritas Software Corp.** 2,200 256,300
--------------
1,535,213
ELECTRONICS 7.75%
Agilent Technologies Inc. ** 3,000 220,875
Intel Corp. 3,600 448,650
Jabil Circuit Inc.** 5,600 204,400
Linear Technology Corp. 3,700 218,531
Texas Instruments Inc. 2,200 158,950
--------------
1,251,406
NETWORKING 2.64%
Cisco Systems Inc.** 7,500 427,500
TELECOMMUNICATIONS 7.84%
AT&T Wireless Group** 2,700 77,119
Ciena Corp.** 1,300 155,594
Ericsson L M Telephone Co. - ADR** 5,900 120,950
E-tek Dynamics Inc.** 500 91,906
Lucent Technologies Inc. 3,600 206,550
Nokia Corp. - ADR 5,400 280,800
Tellabs Inc.** 3,200 207,800
WinStar Communications Inc.** 4,450 126,269
--------------
1,266,988
TOTAL TECHNOLOGY
(Cost $3,426,637) 5,143,651
---------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $9,469,343) 15,276,785
---------------------------------------------------------------------------------
MUTUAL FUNDS 5.31%
Dreyfus Cash Management Fund 607,949 607,949
Fidelity Institutional
Money Market Fund 250,000 250,000
--------------
857,949
TOTAL MUTUAL FUNDS
(Cost $857,949) 857,949
---------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL
FOR SECURITIES LOANED 0.17%
MUTUAL FUNDS 0.17%
AIM Liquid Assets Fund 16,784 16,784
AIM Prime Portfolio Fund 1,351 1,351
Mitchell Hutchins Private Money Market Fund(2) 9,318 9,318
--------------
27,453
TOTAL INVESTMENTS OF CASH COLLATERAL
FOR SECURITIES LOANED
(Cost $27,453) 27,453
---------------------------------------------------------------------------------
Total Investments
(Cost $10,354,745) 100.03% $ 16,162,187
Liabilities in Excess
of Other Assets (0.03%) (5,203)
------------------------------
NET ASSETS 100.00% $ 16,156,984
---------------------------------------------------------------------------------
</TABLE>
See Notes to Statements of Investments
-------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 55
<PAGE> 58
STATEMENTS OF INVESTMENTS
WESTCORE INTERNATIONAL FRONTIER FUND
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ --------------
<S> <C> <C>
COMMON STOCKS 92.38%
BASIC MATERIALS 2.68%
MULTI-INDUSTRY 2.68%
Nutreco Holdings NV
(Netherlands) 15,000 $ 579,393
TOTAL BASIC MATERIALS
(Cost $529,342) 579,393
---------------------------------------------------------------------------------
CAPITAL GOODS 11.43%
ELECTRICAL EQUIPMENT 5.98%
Pace Micro Technology Plc (Great Britain) 50,000 678,968
Sez Holding AG (Switzerland) 800 613,569
--------------
1,292,537
MACHINERY & EQUIPMENT 5.45%
Gretag Imaging Group (Switzerland) 2,000 377,581
Manitou BF SA (France) 3,500 301,869
Noritsu Koki Co. Ltd. (Japan) 4,000 134,850
Pinguely-Haulotte (France) 20,000 363,541
--------------
1,177,841
TOTAL CAPITAL GOODS
(Cost $2,524,031) 2,470,378
---------------------------------------------------------------------------------
CONSUMER CYCLICALS 19.35%
AUTOMOTIVE 1.31%
Ducati Motor Holding SpA** (Italy) 110,000 282,579
CONSUMER PRODUCTS 2.63%
Dorel Industries - Class B**- ADR (Canada) 12,000 234,000
Vtech Holdings Ltd.
(China) 100,000 333,034
--------------
567,034
HOTELS - RESTAURANTS - LEISURE 9.19%
Four Seasons Hotels Inc. - ADR (Canada) 4,600 274,562
Global Dining Inc. (Japan) 6,000 415,138
Groupe Flo (France) 10,000 374,669
Pizzaexpress Plc (Great Britain) 40,000 410,444
Telepizza (Spain) 90,000 513,316
--------------
1,988,129
MEDIA - PUBLISHING - CABLE 1.12%
Alliance Atlantis Communications - Class B** (Canada) 10,000 110,169
Capital Radio Plc (Great Britain) 7,000 132,879
--------------
243,048
OTHER CONSUMER CYCLICALS 2.17%
Senator Film AG (Germany) 5,000 468,337
RETAIL 2.93%
GrandVision (France) 13,400 350,446
Hornbach Holding AG (Germany) 7,700 282,069
--------------
632,515
TOTAL CONSUMER CYCLICALS
(Cost $4,419,174) 4,181,642
---------------------------------------------------------------------------------
</TABLE>
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56 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 59
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ --------------
<S> <C> <C>
CONSUMER STAPLES 2.67%
FOOD, BEVERAGES & TOBACCO 1.28%
Baron De Ley (Spain) 6,000 $ 129,929
Remy Cointreau (France) 6,800 146,937
--------------
276,866
OTHER CONSUMER STAPLES 1.39%
Deodeo Corp. (Japan) 39,000 299,178
TOTAL CONSUMER STAPLES
(Cost $695,902) 576,044
---------------------------------------------------------------------------------
CREDIT SENSITIVE 1.97%
FINANCIAL SERVICES 1.97%
Direkt Anlage Bank** (Germany) 12,500 426,604
TOTAL CREDIT SENSITIVE
(Cost $375,192) 426,604
---------------------------------------------------------------------------------
ENERGY 5.85%
ENERGY EQUIPMENT & SERVICES 5.85%
Coflexip Stena Offshore - ADR (France) 14,000 815,500
IHC Caland NV (Netherlands) 10,000 448,398
--------------
1,263,898
TOTAL ENERGY
(Cost $1,048,648) 1,263,898
---------------------------------------------------------------------------------
HEALTHCARE 15.74%
BIOTECHNOLOGY 2.01%
Celltech Group Plc (Great Britain) 25,500 368,952
GPC Biotech AG** (Germany) 2,500 64,918
--------------
433,870
DRUGS & HEALTHCARE PRODUCTS 13.73%
Angiotech Pharmaceuticals Inc.** (Canada) 10,500 392,602
Genset SA (France) 2,000 148,013
Jomed** (Netherlands) 10,000 383,481
Nobel Biocare (Sweden) 27,500 585,820
Oxford Glycosciences Plc (Great Britain) 14,500 316,428
Phonak Holding AG (Switzerland) 300 707,965
Tecan AG (Switzerland) 500 435,103
--------------
2,969,412
TOTAL HEALTHCARE
(Cost $3,018,844) 3,403,282
---------------------------------------------------------------------------------
SERVICES 8.18%
BUSINESS SERVICES 6.56%
CE Consumer Electronics Ord NPV (Germany) 3,000 386,726
Emitch Limited** (Australia) 200,000 58,191
IFCO Systems NV** (Netherlands) 10,000 222,576
Park 24 Co. Ltd. (Japan) 4,000 471,790
Swisslog Holding AG (Switzerland) 600 277,876
--------------
1,417,159
CONSUMER SERVICES 1.62%
Sixt AG (Germany) 15,000 350,557
TOTAL SERVICES
(Cost $1,909,919) 1,767,716
---------------------------------------------------------------------------------
TECHNOLOGY 24.51%
COMPUTER HARDWARE 1.88%
Logitech International SA
(Switzerland) 700 406,785
COMPUTER SERVICES & SOFTWARE 4.76%
Damgaard AS**
(Denmark) 6,000 298,118
Devoteam SA** (France) 1,400 134,900
Infosources (France) 17,686 185,342
</TABLE>
-------------------------------------------------------------------------------
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<PAGE> 60
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ --------------
<S> <C> <C>
Scoot.com Plc - ADR**
(Great Britain) 8,900 $ 409,400
--------------
1,027,760
ELECTRONICS 6.28%
ASM International NV - ADR** (Netherlands) 24,000 621,000
GFT Technology NPV** (Germany) 3,000 556,440
Parthus Technologies (Great Britain) 75,000 179,924
--------------
1,357,364
NETWORKING 3.19%
Bookham Technology Plc** (Great Britain) 15,000 689,430
TELECOMMUNICATIONS 8.40%
Asianinfo Holdings Inc.- ADR** (China) 10,000 451,250
BreezeCom Ltd. - ADR** (Israel) 10,000 246,876
GT Group Telecom Inc. - Class B** (Canada) 40,000 559,525
Wavecom SA - ADR** (France) 5,700 558,600
--------------
1,816,251
TOTAL TECHNOLOGY
(Cost $4,546,270) 5,297,590
---------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $19,067,322) 19,966,547
---------------------------------------------------------------------------------
U.S. GOVERNMENT TREASURIES 0.92%
U.S. TREASURY BILLS:
08/31/2000 200,000 197,245
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $197,140) 197,245
---------------------------------------------------------------------------------
MUTUAL FUNDS 5.76%
Dreyfus Cash Management Fund 495,501 495,501
Fidelity Institutional
Money Market Fund 750,000 750,000
--------------
1,245,501
TOTAL MUTUAL FUNDS
(Cost $1,245,501) 1,245,501
---------------------------------------------------------------------------------
Total Investments
(Cost $20,509,963) 99.06% $ 21,409,293
Other Assets in
Excess of Liabilities 0.94% 203,420
------------------------------
NET ASSETS 100.00% $ 21,612,713
---------------------------------------------------------------------------------
</TABLE>
See Notes to Statements of Investments
-------------------------------------------------------------------------------
58 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 61
STATEMENTS OF INVESTMENTS
WESTCORE SMALL-CAP GROWTH FUND
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
COMMON STOCKS 91.16%
CONSUMER CYCLICALS 4.39%
MEDIA - PUBLISHING - CABLE 2.56%
New Frontier Media Inc.** 2,500 $ 19,375
Spanish Broadcasting
System - Class A** 31,600 537,200
------------
556,575
RETAIL 1.83%
Linens 'N' Things Inc.** 15,000 398,437
TOTAL CONSUMER CYCLICALS
(Cost $1,083,275) 955,012
---------------------------------------------------------------
ENERGY 4.36%
ENERGY PRODUCERS 4.36%
Noble Affiliates Inc. 10,700 420,644
Spinnaker Exploration Co.** 20,700 527,850
------------
948,494
TOTAL ENERGY
(Cost $728,397) 948,494
---------------------------------------------------------------
HEALTHCARE 11.24%
BIOTECHNOLOGY 1.63%
Aclara BioSciences Inc.** 13,500 356,062
DRUGS & HEALTHCARE PRODUCTS 3.41%
Alpharma Inc. - Class A 15,000 742,500
HEALTHCARE SERVICES 6.20%
Laboratory Corp. of
America Holdings 9,000 646,875
Province Healthcare Co.** 25,000 703,125
------------
1,350,000
TOTAL HEALTHCARE
(Cost $2,189,133) 2,448,562
---------------------------------------------------------------
TECHNOLOGY 71.17%
COMPUTER HARDWARE 3.56%
Alteon Websystems Inc.** 8,000 406,500
Cobalt Networks Inc.** 13,800 369,150
------------
775,650
COMPUTER SERVICES & SOFTWARE 34.65%
Aremissoft Corp.** 25,000 584,375
Bluestone Software Inc.** 26,100 495,900
Breakaway Solutions Inc.** 14,200 351,450
Digex Inc. - Class A** 5,800 245,050
Embarcadero Technologies Inc.** 42,000 556,500
Global Sports Inc.** 56,700 311,850
Interwoven Inc.** 8,800 536,800
Intranet Solutions Inc.** 22,500 447,188
Jupiter Communications Inc.** 17,000 376,125
Numerical Technologies Inc.** 12,200 505,537
Optimal Robotics Corp. - Class A** 13,500 453,938
Pivotal Corp.** 17,100 321,159
ProsoftTraining.com Inc.** 44,000 676,500
PurchasePro.com Inc. 12,000 255,188
Secure Computing Corp.** 48,300 561,487
USinternetworking Inc.** 22,500 403,594
WebTrends Corp.** 18,000 461,250
------------
7,543,891
ELECTRONICS 14.80%
Align-Rite International Inc.** 26,000 520,000
Emcore Corp.** 8,000 518,000
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 62
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
Powerwave Technologies Inc.** 12,000 $ 650,250
Precision Optics Corp.** 14,500 128,687
Precision Optics Corp -
Restricted(3)** 52,631 373,680
Varian Semiconductor Equipment** 14,500 691,469
Xicor Inc.** 49,900 339,944
------------
3,222,030
NETWORKING 2.24%
Extreme Networks** 10,000 488,750
TELECOMMUNICATIONS 15.91%
LCC International Inc. -
Class A** 30,000 442,500
MSI Holdings Inc.(3)** 166,667 1,520,003
Network Access Solutions Corp.** 30,600 321,300
Oni Systems Corp.** 5,000 125,000
Paradyne Networks Corp.** 26,400 742,500
World Wireless Communications
Inc.** 100,000 312,500
------------
3,463,803
TOTAL TECHNOLOGY
(Cost $19,734,290) 15,494,124
---------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $23,735,095) 19,846,192
---------------------------------------------------------------
WARRANTS 0.02%
Precision Optics Corp.(3)** 26,316 4,952
TOTAL WARRANTS
(COST $118,948) 4,952
---------------------------------------------------------------
U.S. GOVERNMENT TREASURIES 4.08%
U.S. TREASURY BILLS:
08/31/2000 900,000 887,602
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $887,041) 887,602
---------------------------------------------------------------
MUTUAL FUNDS 7.30%
Dreyfus Cash Management Fund 798,987 798,987
Fidelity Institutional
Money Market Fund 790,000 790,000
------------
1,588,987
TOTAL MUTUAL FUNDS
(Cost $1,588,987) 1,588,987
---------------------------------------------------------------
Total Investments
(Cost $26,330,071) 102.56% $ 22,327,733
Liabilities in Excess
of Other Assets (2.56)% (556,252)
-----------------------------
NET ASSETS 100.00% $ 21,771,481
---------------------------------------------------------------
</TABLE>
See Notes to Statements of Investments
--------------------------------------------------------------------------------
60 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 63
STATEMENTS OF INVESTMENTS
WESTCORE SELECT FUND
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
COMMON STOCKS 92.14%
CONSUMER CYCLICALS 42.50%
Hotels - Restaurants - Leisure
17.25%
Hilton Hotels Corp. 175,000 $ 1,487,500
Lodgenet Entertainment Corp.** 101,000 2,424,000
Metro-Goldwyn-Mayer Inc.** 50,000 1,418,750
Starwood Hotels & Resorts
Worldwide Inc. 30,000 886,875
-----------
6,217,125
MEDIA - PUBLISHING - CABLE 25.25%
EchoStar Communications
Corp. - Class A** 40,000 1,597,500
Infinity Broadcasting
Corp. - Class A** 50,000 1,581,250
Liberty Digital Inc. - Class A** 20,000 640,000
New Frontier Media Inc.** 160,500 1,243,875
Sinclair Broadcast Group
Inc. - Class A** 110,000 907,500
USA Networks Inc.** 60,000 1,136,250
Westwood One Inc.** 60,000 1,991,250
-----------
9,097,625
TOTAL CONSUMER CYCLICALS
(Cost $15,472,558) 15,314,750
---------------------------------------------------------------
CREDIT SENSITIVE 4.38%
FINANCIAL SERVICES 2.53%
Primark Corp.** 35,000 910,000
INSURANCE 1.85%
Aetna Inc.** 10,000 667,500
TOTAL CREDIT SENSITIVE
(Cost $1,561,425) 1,577,500
---------------------------------------------------------------
ENERGY 9.01%
ENERGY PRODUCERS 9.01%
Anadarko Petroleum Corp.** 15,000 795,938
Apache Corp.** 15,000 913,125
Evergreen Res Inc.** 45,000 1,237,500
Ocean Energy Inc.** 20,000 300,000
-----------
3,246,563
TOTAL ENERGY
(Cost $3,089,297) 3,246,563
---------------------------------------------------------------
HEALTHCARE 2.82%
DRUGS & HEALTHCARE PRODUCTS 2.82%
Abbott Laboratories 25,000 1,017,187
TOTAL HEALTHCARE
(Cost $1,089,150) 1,017,187
---------------------------------------------------------------
SERVICES 5.53%
BUSINESS SERVICES 1.33%
Advo Inc.** 15,000 481,875
CONSUMER SERVICES 4.20%
Cendant Corp.** 75,000 993,750
Edison Schools Inc. -
Class A** 25,000 518,750
-----------
1,512,500
TOTAL SERVICES
(Cost $2,131,556) 1,994,375
---------------------------------------------------------------
TECHNOLOGY 27.90%
COMPUTER SERVICES & SOFTWARE 14.52%
Art Technology Group Inc.** 15,000 880,312
Bluestone Software Inc.** 65,000 1,235,000
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 64
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
Shares Market Value
------ ------------
<S> <C> <C>
Mercury Interactive Corp.** 15,000 $1,271,250
ProsoftTraining.com Inc.** 120,000 1,845,000
------------
5,231,562
ELECTRONICS 3.22%
Sandisk Corp.** 20,000 1,162,500
NETWORKING 4.74%
Cisco Systems Inc.** 30,000 1,710,000
TELECOMMUNICATIONS 5.42%
Nextel Communications
Inc. - Class A** 15,000 1,389,375
World Wireless
Communications Inc.(3)** 200,000 562,500
------------
1,951,875
TOTAL TECHNOLOGY
(Cost $8,590,837) 10,055,937
---------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $31,934,823) 33,206,312
---------------------------------------------------------------
U.S. GOVERNMENT TREASURIES 26.55%
U.S. TREASURY BILLS:
08/31/2000 9,700,000 9,566,373
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $9,559,354) 9,566,373
---------------------------------------------------------------
MUTUAL FUNDS 7.60%
Dreyfus Cash Management Fund 1,389,711 1,389,711
Fidelity Institutional
Money Market Fund 1,350,000 1,350,000
------------
2,739,711
TOTAL MUTUAL FUNDS
(Cost $2,739,711) 2,739,711
---------------------------------------------------------------
Total Investments
(Cost $44,233,888) 126.29% $ 45,512,396
Liabilities in Excess
of Other Assets (26.29)% (9,475,025)
---------------------------
NET ASSETS 100.00% $ 36,037,371
---------------------------------------------------------------
</TABLE>
See Notes to Statements of Investments
--------------------------------------------------------------------------------
62 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 65
STATEMENTS OF INVESTMENTS
WESTCORE BLUE CHIP FUND
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
COMMON STOCK 95.99%
BASIC MATERIALS 3.82%
CHEMICALS 1.51%
Dow Chemical Co. 7,300 $ 781,556
PAPER & PACKAGING 2.31%
Ball Corp. 40,400 1,199,375
TOTAL BASIC MATERIALS
(Cost $2,429,012 ) 1,980,931
----------------------------------------------------------------
CAPITAL GOODS 7.98%
AEROSPACE & DEFENSE 4.38%
General Dynamics Corp. 29,000 1,712,813
General Motors Corp. -
Class H** 5,693 560,443
------------
2,273,256
ENGINEERING & CONSTRUCTION 2.27%
Ingersoll-Rand Co. 25,800 1,175,513
OFFICE PRODUCTS 1.33%
Office Depot Inc.** 97,800 690,713
TOTAL CAPITAL GOODS
(Cost $4,134,060) 4,139,482
---------------------------------------------------------------
CONSUMER CYCLICALS 9.37%
AUTOMOTIVE 1.43%
Delphi Automotive Systems 11,239 203,004
General Motors Corp. 7,671 541,764
------------
744,768
MEDIA - PUBLISHING - CABLE 4.27%
USA Networks Inc.** 53,800 1,018,837
Viacom Inc. - Class B** 19,300 1,196,600
------------
2,215,437
RETAIL 3.67%
Target Corp. 16,500 1,034,344
TJX Companies Inc. 40,300 871,487
------------
1,905,831
TOTAL CONSUMER CYCLICALS
(Cost $3,806,879) 4,866,036
---------------------------------------------------------------
CONSUMER STAPLES 1.79%
RETAIL FOOD & DRUG 1.79%
CVS Corp. 21,300 926,550
TOTAL CONSUMER STAPLES
(Cost $425,808) 926,550
---------------------------------------------------------------
CREDIT SENSITIVE 36.41%
BANKS 6.40%
Chase Manhattan Corp. 12,300 918,656
Citigroup Inc. 27,200 1,691,500
Wells Fargo & Co. 15,700 710,425
------------
3,320,581
FINANCIAL SERVICES 8.01%
American Express Co. 15,300 823,331
Household
International Inc. 17,100 803,700
J.P. Morgan & Company Inc. 8,100 1,042,875
Lehman Brothers Holdings Inc. 10,600 818,188
Merrill Lynch & Company Inc. 6,800 670,650
------------
4,158,744
INSURANCE 7.88%
ACE Ltd. 48,600 1,303,087
Allmerica Financial Corp. 9,300 536,494
AXA Financial Inc. 30,700 1,195,381
Metlife Inc.** 51,400 1,053,700
------------
4,088,662
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 66
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
UTILITIES - ELECTRIC 1.63%
Duke Energy Corp. 14,500 $ 844,625
UTILITIES - GAS 4.54%
Columbia Energy Group 9,500 614,531
Dynegy Inc. - Class A 22,605 1,743,411
------------
2,357,942
UTILITIES - TELEPHONE 7.95%
Alltell Corp. 15,600 1,020,825
AT&T Corp. 16,000 555,000
Bellsouth Corp. 23,200 1,083,150
Sprint Corp.
(FON Group) 24,220 1,465,310
------------
4,124,285
TOTAL CREDIT SENSITIVE
(Cost $15,225,884) 18,894,839
---------------------------------------------------------------
ENERGY 9.25%
ENERGY - EQUIPMENT & SERVICES 1.31%
Transocean Sedco Forex Inc. 13,800 678,787
ENERGY PRODUCERS 7.94%
Coastal Corp. 19,400 1,190,675
Conoco Inc.- Class B 28,600 815,100
El Paso Energy Corp. 15,400 793,100
Royal Dutch Petroleum Co. - ADR 21,200 1,323,675
------------
4,122,550
TOTAL ENERGY
(Cost $4,203,846) 4,801,337
---------------------------------------------------------------
HEALTHCARE 7.23%
DRUGS & HEALTHCARE PRODUCTS 7.23%
Abbott Laboratories 29,200 1,188,075
Bristol-Myers Squibb Co. 15,660 862,279
Eli Lilly & Co. 8,500 647,063
Schering-Plough Corp. 21,800 1,054,575
------------
3,751,992
TOTAL HEALTHCARE
(Cost $2,210,698) 3,751,992
---------------------------------------------------------------
SERVICES 2.87%
BUSINESS SERVICES 2.87%
Hertz Corp. - Class A 23,100 723,318
Young & Rubicam Inc. 16,000 764,000
------------
1,487,318
TOTAL SERVICES
(Cost $1,735,420) 1,487,318
---------------------------------------------------------------
TECHNOLOGY 17.27%
COMPUTER HARDWARE 1.92%
Unisys Corp.** 36,800 998,200
COMPUTER SERVICES & SOFTWARE 6.55%
Adobe Systems Inc. 9,100 1,024,319
Computer Associates Intl Inc. 26,300 1,354,450
Microsoft Corp.** 16,300 1,019,770
------------
3,398,539
ELECTRONICS 5.21%
Atmel Corp.** 23,300 889,769
Intel Corp. 8,600 1,071,775
Motorola Inc. 7,900 740,625
------------
2,702,169
TELECOMUNICATIONS 3.59%
Antec Corp.** 9,900 497,475
Lucent Technologies Inc. 23,800 1,365,525
------------
1,863,000
TOTAL TECHNOLOGY
(Cost $7,240,694) 8,961,908
---------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $41,412,301) 49,810,393
---------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
64 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 67
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
MUTUAL FUNDS 4.07%
Dreyfus Cash Management Fund 2,113,061 $ 2,113,061
TOTAL MUTUAL FUNDS
(Cost $2,113,061) 2,113,061
----------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL
FOR SECURITIES LOANED 2.44%
MUTUAL FUNDS 2.44%
AIM Liquid Assets Fund 309,014 309,014
Mitchell Hutchins Private Money
Market Fund(2) 958,287 958,287
------------
1,267,301
TOTAL INVESTMENTS OF CASH COLLATERAL
FOR SECURITIES LOANED
(Cost $1,267,301) 1,267,301
----------------------------------------------------------------
Total Investments
(Cost $44,792,663) 102.50% $ 53,190,755
Liabilities in Excess
of Other Assets (2.50%) (1,299,014)
---------------------------
NET ASSETS 100.00% $ 51,891,741
----------------------------------------------------------------
</TABLE>
See Notes to Statements of Investments
--------------------------------------------------------------------------------
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<PAGE> 68
STATEMENTS OF INVESTMENTS
WESTCORE MID-CAP OPPORTUNITY FUND
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
COMMON STOCKS 96.17%
BASIC MATERIALS 3.24%
Chemicals 1.98%
Eastman Chemical Co. 800 $ 36,450
Hercules Inc. 1,400 23,188
-------------
59,638
Paper & Packaging 1.26%
Boise Cascade Corp. 1,300 37,862
TOTAL BASIC MATERIALS
(Cost $129,125) 97,500
---------------------------------------------------------------
CAPITAL GOODS 3.66%
Aerospace & Defense 2.35%
General Dynamics Corp. 1,200 70,875
OFFICE PRODUCTS 1.31%
Office Depot Inc.** 5,600 39,550
Total Capital Goods
(Cost $126,209) 110,425
---------------------------------------------------------------
CONSUMER CYCLICALS 9.40%
HOTELS - RESTAURANTS - LEISURE 3.67%
Harrah's Entertainment Inc.** 1,700 33,575
Starwood Hotels & Resorts
Worldwide Inc. 2,600 76,863
------------
110,438
MEDIA - PUBLISHING - CABLE 1.89%
USA Networks Inc.** 3,000 56,813
Retail 3.84%
Spiegel Inc. - Class A 6,300 47,250
Zale Corp.** 1,800 68,400
------------
115,650
Total Consumer Cyclicals
(Cost $285,831) 282,901
---------------------------------------------------------------
CONSUMER STAPLES 1.04%
FOOD, BEVERAGES & TOBACCO 1.04%
Canandaigua Brands Inc. - Class A** 600 31,425
TOTAL CONSUMER STAPLES
(Cost $32,338) 31,425
--------------------------------------------------------------
CREDIT SENSITIVE 27.35%
BANKS 5.09%
Comerica Inc. 1,000 50,625
UnionBanCal Corp. 3,000 102,750
------------
153,375
FINANCIAL SERVICES 4.32%
Golden State Bancorp Inc.** 1,650 28,978
Heller Financial Inc. - Class A 3,100 58,512
Lehman Brothers Holdings Inc. 550 42,453
------------
129,943
Insurance 6.13%
Allmerica Financial Corp. 1,000 57,688
AMBAC Financial Group Inc. 1,100 55,413
Everest Re Group Ltd. 2,100 71,400
------------
184,501
REITs 2.37%
Equity Residential
Properties Trust 1,600 71,400
UTILITIES - GAS 6.80%
Dynegy Inc. - Class A 1,900 146,537
NRG Energy Inc.** 3,500 58,188
------------
204,725
</TABLE>
--------------------------------------------------------------------------------
66 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 69
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
UTILITIES - TELEPHONE 2.64%
Telephone & Data
Systems Inc. 750 $ 79,500
TOTAL CREDIT SENSITIVE
(Cost $701,699) 823,444
----------------------------------------------------------------
ENERGY 8.83%
ENERGY EQUIPMENT & SERVICES 2.12%
Transocean Sedco
Forex Inc. 1,300 63,944
ENERGY PRODUCERS 6.71%
Apache Corp. 500 30,438
Coastal Corp. 1,950 119,681
Sante Fe Snyder Corp.** 4,100 51,763
-------------
201,882
TOTAL ENERGY
(Cost $175,922) 265,826
----------------------------------------------------------------
HEALTHCARE 12.74%
DRUGS & HEALTHCARE PRODUCTS 6.73%
Covance Inc.** 6,000 42,750
IDEXX Laboratories Inc.** 3,000 74,437
Sybron International Corp.** 2,700 85,556
-------------
202,743
HEALTHCARE SERVICES 6.01%
Health Management Associates Inc. -
Class A** 2,200 25,987
Omnicare Inc. 4,900 80,850
Tenet Healthcare Corp. 2,900 74,313
-------------
181,150
TOTAL HEALTHCARE
(Cost $334,085) 383,893
----------------------------------------------------------------
SERVICES 8.46%
BUSINESS SERVICES 6.48%
ACNielsen Corp.** 3,000 66,562
Interim Services Inc.** 3,300 66,413
Young & Rubicam Inc. 1,300 62,075
-------------
195,050
CONSUMER SERVICES 1.98%
Sylvan Learning Systems Inc.** 5,300 59,625
TOTAL SERVICES
Cost ($259,001) 254,675
----------------------------------------------------------------
TECHNOLOGY 21.45%
COMPUTER SERVICES & SOFTWARE 7.86%
Aremissoft Corp.** 1,600 37,400
Computer Associates International Inc. 704 36,256
Convergys Corp.** 1,200 53,925
Hyperion Solutions Corp.** 1,600 50,200
MarchFirst Inc.** 1,210 22,839
Symantec Corp.** 550 36,162
-------------
236,782
ELECTRONICS 5.27%
National Semiconductor Corp.** 900 48,375
SCI Systems Inc.** 1,000 45,000
Varian Semiconductor Equipment** 900 42,918
Veeco Instruments Inc.** 500 22,500
-------------
158,793
NETWORKING 1.78%
Xircom Inc.** 1,300 53,625
TELECOMMUNICATIONS 6.54%
Antec Corp.** 1,750 87,937
IDT Corp.** 2,000 65,125
Viatel Inc.** 900 22,444
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 70
\
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
WinStar Communications Inc.** 750 $ 21,281
------------
196,787
TOTAL TECHNOLOGY
(Cost $651,019) 645,987
----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $2,695,229) 2,896,076
----------------------------------------------------------------
MUTUAL FUNDS 6.74%
Dreyfus Cash Management Fund 117,956 117,956
Fidelity Institutional
Money Market Fund 85,000 85,000
------------
202,956
TOTAL MUTUAL FUNDS
(Cost 202,956) 202,956
----------------------------------------------------------------
Total Investments
(Cost $2,898,185) 102.91% $ 3,099,032
Liabilities in Excess
of Other Assets (2.91%) $ (87,666)
---------------------------
NET ASSETS 100.00% $ 3,011,366
----------------------------------------------------------------
</TABLE>
See Notes to Statements of Investments
--------------------------------------------------------------------------------
68 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 71
STATEMENTS OF INVESTMENTS
WESTCORE SMALL-CAP OPPORTUNITY FUND
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
COMMON STOCKS 97.99%
BASIC MATERIALS 3.15%
CHEMICALS 1.26%
Dexter Corp. 10,100 $ 436,825
PAPER & PACKAGING 1.89%
Bemis Co. 12,100 415,937
Boise Cascade Corp. 8,100 235,913
----------------------------------------------------------------
651,850
TOTAL BASIC MATERIALS
(Cost $1,022,466) 1,088,675
----------------------------------------------------------------
CAPITAL GOODS 2.07%
AEROSPACE & DEFENSE 0.15%
Primex Technologies Inc. 2,800 53,900
ELECTRICAL EQUIPMENT 1.92%
Belden Inc. 24,200 662,475
TOTAL CAPITAL GOODS
(Cost $654,878) 716,375
----------------------------------------------------------------
CONSUMER CYCLICALS 8.47%
AUTOMOTIVE 1.64%
A.O. Smith Corp. 2,100 44,100
Tenneco Automotive Inc. 36,100 263,981
Tower Automotive Inc.** 18,600 258,075
------------
566,156
BUILDING RELATED 0.82%
Lafarge Corp. 9,800 249,900
Morrison Knudsen Corp.** 4,100 31,775
------------
281,675
HOTELS - RESTAURANTS - LEISURE 0.70%
Monaco Coach Corp.** 16,825 241,859
MEDIA - PUBLISHING - CABLE 0.86%
Sinclair Broadcast Group Inc.** 36,200 298,650
RETAIL 4.45%
Rent-Way Inc.** 13,900 370,956
REX Stores Corp.** 16,100 340,112
Spiegel Inc - Class A 41,700 312,750
Zale Corp.** 13,500 513,000
------------
1,536,818
TOTAL CONSUMER CYCLICALS
(Cost $3,081,682) 2,925,158
----------------------------------------------------------------
CONSUMER STAPLES 4.14%
FOOD, BEVERAGES & TOBACCO 2.93%
Canandaigua Brands Inc. - Class A** 6,000 314,250
Earthgrains Co. 42,200 696,300
------------
1,010,550
RETAIL FOOD & DRUG 1.21%
Wild Oats Markets Inc.** 45,300 419,025
TOTAL CONSUMER STAPLES
(Cost $1,360,600) 1,429,575
----------------------------------------------------------------
CREDIT SENSITIVE 23.46%
BANKS 2.05%
Bank United Corp. - Class A 7,300 261,888
Bay View Capital Corp. 44,100 446,513
------------
708,401
FINANCIAL SERVICES 7.38%
Astoria Financial Corp. 11,300 307,925
Downey Financial Corp. 12,100 359,975
Golden State Bancorp Inc.** 23,300 409,206
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 72
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
Heller Financial Inc. - Class A 31,600 $ 596,450
LaBranche & Co. Inc.** 33,000 404,250
Sovereign Bancorp Inc. 68,600 471,625
-------------
2,549,431
INSURANCE 4.92%
Delphi Financial Group - Class A** 13,020 436,170
Everest RE Group Ltd. 11,500 391,000
Radian Group Inc. 11,300 621,500
Stancorp Financial Group Inc. 7,900 251,813
-------------
1,700,483
REITs 5.04%
AvalonBay Communities Inc. 8,500 337,875
BRE Properties - Class A 12,100 325,944
Liberty Property Trust 15,300 382,500
Mack-Cali Realty Corp. 7,700 207,900
Mills Corp. 7,700 136,194
Reckson Associates Realty 16,000 351,000
-------------
1,741,413
UTILITIES - ELECTRIC 2.13%
Cleco Corp. 12,100 414,425
NSTAR 7,481 322,150
-------------
736,575
UTILITIES - GAS 1.94%
NRG Energy Inc.** 40,400 671,650
TOTAL CREDIT SENSITIVE
(Cost $8,070,703) 8,107,953
----------------------------------------------------------------
ENERGY 7.08%
ENERGY EQUIPMENT & SERVICES 3.44%
Tidewater Inc. 15,700 610,338
Veritas DGC Inc.** 21,000 580,125
-------------
1,190,463
ENERGY PRODUCERS 3.64%
Ocean Energy Inc.** 44,800 672,000
Santa Fe Snyder Corp.** 46,300 584,538
-------------
1,256,538
TOTAL ENERGY
(Cost $1,809,106) 2,447,001
----------------------------------------------------------------
HEALTHCARE 14.06%
BIOTECHNOLOGY 1.13%
Packard Biosciences** 27,800 389,200
DRUGS & HEALTHCARE PRODUCTS 9.09%
Conmed Corp.** 24,500 591,062
Covance Inc.** 77,300 550,762
Dentsply International Inc 28,400 871,525
Dura Pharmaceuticals Inc.** 25,800 301,538
IDEXX Laboratories Inc.** 17,800 441,663
King Pharmaceuticals Inc.** 3,897 208,489
Medicis Pharmaceutical - Class A** 3,800 177,650
-------------
3,142,689
HEALTHCARE SERVICES 3.84%
Bindley Western Industries 29,290 558,341
Omnicare Inc. 46,600 768,900
-------------
1,327,241
TOTAL HEALTHCARE
(Cost $4,807,113) 4,859,130
----------------------------------------------------------------
SERVICES 12.24%
BUSINESS SERVICES 11.65%
ACNielsen Corp.** 45,100 1,000,656
ARIS Corp.** 39,400 137,900
Avis Group Holdings Inc.** 25,800 496,650
</TABLE>
--------------------------------------------------------------------------------
70 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 73
STATEMENTS OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
<S> <C> <C>
Dollar Thrifty
Automotive Group** 11,200 $ 201,600
Heidrick & Struggles Inc.** 14,300 587,194
Interim Services Inc.** 26,100 525,262
Metamor Worldwide Inc.** 20,300 461,825
Personnel Group of America Inc.** 62,700 250,800
R H Donnelley Corp.** 19,800 366,300
-------------
4,028,187
CONSUMER SERVICES 0.59%
ITT Educational Services Inc.** 12,200 202,825
TOTAL SERVICES
(Cost $4,493,067) 4,231,012
----------------------------------------------------------------
TECHNOLOGY 23.32%
COMPUTER - HARDWARE 2.73%
InFocus Systems Inc.** 16,200 452,588
Zebra Technologies Corp. - Class A** 10,200 489,600
-------------
942,188
COMPUTER SERVICES & SOFTWARE 7.66%
Aremissoft Corp.** 17,900 418,413
Axent Technologies Inc.** 22,800 422,512
Bell & Howell Co.** 28,900 619,544
Computer Associates
International Inc. 9,280 477,920
Hyperion Solutions Corp.** 21,500 674,562
Progress Software Corp.** 2,300 34,788
-------------
2,647,739
ELECTRONICS 6.41%
Arrow Electronics Inc.** 12,100 424,256
International Rectifier Corp.** 23,000 $ 948,750
Vicor Corp.** 31,900 843,356
-------------
2,216,362
TELECOMMUNICATIONS 6.52%
Antec Corp.** 20,300 1,020,075
IDT Corp.** 25,800 840,112
InterVoice-Brite Inc.** 22,300 317,775
Superior Telecom Inc. 6,900 75,038
-------------
2,253,000
TOTAL TECHNOLOGY
(Cost $7,104,974) 8,059,289
----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $32,404,589) 33,864,168
----------------------------------------------------------------
MUTUAL FUNDS 5.14%
Dreyfus Cash Management Fund 1,376,333 1,376,333
Fidelity Institutional
Money Market Fund 400,000 400,000
Mitchell Hutchins Private Money
Market Fund(2) 146 146
-------------
1,776,479
TOTAL MUTUAL FUNDS
(Cost $1,776,479) 1,776,479
----------------------------------------------------------------
Total Investments
(Cost $34,181,069) 103.13% $ 35,640,647
Liabilities in Excess
of Other Assets (3.13%) (1,082,580)
----------------------------
NET ASSETS 100.00% $ 34,558,067
-----------------------------------------------------------------
</TABLE>
See Notes to Statements of Investments
--------------------------------------------------------------------------------
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<PAGE> 74
Statements of Investments
WESTCORE LONG-TERM BOND FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
--------- ------------
<S> <C> <C>
CORPORATE BONDS 43.30%
FINANCIAL 19.06%
INSURANCE 6.95%
Aetna Services Inc., 7.625%, 08/15/2026 $ 230,000 $ 190,970
Geico Corp., 9.15%, 09/15/2021 250,000 260,465
Leucadia National Corp., 7.75%, 08/15/2013 250,000 224,040
Lincoln National Insurance Corp., 9.125%, 10/01/2024 500,000 516,368
Progressive Corp., 6.625%, 03/01/2029 125,000 94,769
Zurich Reinsurance Centre Holdings, 7.125%, 10/15/2023 400,000 352,753
----------
1,639,365
INVESTMENT BANKING/BROKERAGE 0.82%
Bear Stearns Companies Inc., 7.625%, 02/01/2005 200,000 194,541
LEASING COMPANIES 0.60%
AT&T Capital Corp., 6.60%, 05/15/2005 150,000 142,276
REITS 10.69%
Avalon Bay Communities Inc., 6.50%, 07/15/2003 100,000 94,977
Centerpoint Property Trust, 6.75%, 04/01/2005 100,000 91,522
Equity Office Properties Trust, 6.625%, 02/15/2005 175,000 163,003
ERP Operating Ltd. Partnership, 7.57%, 08/15/2026 250,000 242,846
Health Care Properties, 6.50%, 02/15/2006 250,000 213,990
Kimco Realty Corp., 6.83%, 11/14/2005 300,000 279,694
Nationwide Health Property, 7.23%, 11/08/2006 150,000 127,483
New Plan Realty Trust, 7.75%, 04/06/2005 250,000 241,640
Price Development Co. LP, 7.29%, 03/11/2008 125,000 108,998
Property Trust of America, 6.875%, 02/15/2008 375,000 355,141
Rouse Co., 8.50%, 01/15/2003 250,000 250,448
Security Capital Industrial Trust, 7.95%, 05/15/2008 200,000 187,932
Weingarten Realty Investors Trust, 7.22%, 06/01/2005 175,000 164,763
----------
2,522,437
TOTAL FINANCIAL
(Cost $4,734,813) 4,498,619
--------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
72 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 75
Statements of Investments
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
---------- ------------
<S> <C> <C>
INDUSTRIAL 16.91%
AEROSPACE & DEFENSE 2.03%
Lockheed Martin Corp., 7.70%, 06/15/2008 $ 250,000 $ 238,209
----------
Raytheon Co., 6.50%, 07/15/2005 260,000 242,130
480,339
CHEMICALS 3.14%
Borden Inc., 7.875%, 02/15/2023 500,000 368,202
Lubrizol Corp., 7.25%, 06/15/2025 400,000 373,364
----------
741,566
HOSPITAL EQUIPMENT 0.90%
Hillenbrand Industries Inc., 8.50%, 12/01/2011 200,000 211,380
HOTELS - RESTAURANTS - LEISURE 3.78%
Circus Circus Enterprises Inc., 6.45%, 02/01/2006 150,000 126,089
Hilton Hotels Corp., 7.95%, 04/15/2007 250,000 224,842
Marriott International Inc., 6.875%, 11/15/2005 175,000 163,233
Mirage Resorts Inc.:
7.25%, 10/15/2006 50,000 45,082
6.75%, 08/01/2007 50,000 43,264
Park Place Entertainment Corp., 8.50%, 11/15/2006 300,000 289,192
----------
891,702
MEDIA - PUBLISHING - CABLE 2.77%
AT&T Corp., 6.50%, 03/15/2029 175,000 142,480
Cox Communications Inc., 7.625%, 06/15/2025 300,000 267,361
Time Warner Inc., 7.25%, 10/15/2017 275,000 243,270
----------
653,111
OIL COMPANIES 1.01%
Burlington Resources, 7.375%, 03/01/2029 100,000 89,244
Pemex Finance Ltd., 7.80%, 02/15/2013(1) 150,000 149,770
239,014
RETAIL 2.74%
K Mart Corp., 7.95%, 02/01/2023 500,000 407,736
Penney (JC) Co Inc.:
7.40%, 04/01/2037 75,000 65,822
7.625%, 03/01/2097 120,000 76,971
Pep Boys - Manny, Moe & Jack, 6.52%, 07/16/2007 125,000 96,303
----------
646,832
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 76
Statements of Investments
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
--------- ------------
<S> <C> <C>
TELEPHONE 0.54%
BellSouth Capital Funding, 7.12%, 07/15/2097 $ 150,000 $ 126,592
TOTAL INDUSTRIAL
(Cost $4,388,225) 3,990,536
---------------------------------------------------------------------------------------------
TRANSPORTATION 6.79%
AIR TRANSPORTATION 6.79%
AMR Corp., 10.00%, 04/15/2021 350,000 378,000
Atlas Air Inc. Pass-Through Certificates, Series 991A, 7.20%,
01/02/2019 125,000 110,716
Continental Airlines Inc. Pass-Through Certificates, Series 99-2,
Class B, 7.566%, 03/15/2020 250,000 228,422
Delta Airlines Inc., 7.70%, 12/15/2005 175,000 163,982
Jet Equipment Trust, Class C, 9.71%, 08/15/2013(1) 225,000 226,907
United Airlines Inc. Pass-Through Certificates, Series 95-A1,
9.02%, 04/19/2012 220,137 221,265
US Airways Inc. Pass-Through Certificates, Series 98-1,
6.85%, 01/30/2018 147,019 127,104
US Airways Inc. Pass-Through Certificates, Series 99-1,
8.36%, 07/20/2020 150,000 144,274
----------
1,600,670
TOTAL TRANSPORTAION
(Cost $1,644,311) 1,600,670
---------------------------------------------------------------------------------------------
UTILITIES 0.54%
NATURAL GAS 0.54%
KN Energy Inc., 7.25%, 03/01/2028 150,000 127,517
TOTAL UTILITIES
(Cost $149,680) 127,517
---------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $10,917,029) 10,217,342
---------------------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES 1.26%
FHLMC Pool #G00336, 6.00%, 10/01/2024 325,673 296,554
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $304,664) 296,554
---------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
74 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 77
Statements of Investments
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
---------- ------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES & TREASURIES 50.77%
U.S. GOVERNMENT AGENCIES 0.61%
FHLMC, 6.70%, 01/05/2007 $ 150,000 $ 144,081
U.S. GOVERNMENT ZERO COUPON STRIPS 25.89%
08/15/2011 2,500,000 1,219,445
08/15/2016 2,500,000 892,198
11/15/2016 2,300,000 809,278
08/15/2018 3,000,000 949,461
05/15/2020 5,375,000 1,535,105
08/15/2020 2,500,000 704,150
-----------
6,109,637
U.S. TREASURY BONDS 24.27%
6.50%, 02/15/2010 750,000 761,250
7.50%, 11/15/2016 1,750,000 1,939,767
6.25%, 08/15/2023 1,600,000 1,584,000
6.00%, 02/15/2026 1,500,000 1,441,407
-----------
5,726,424
TOTAL U.S. GOVERNMENT AGENCIES & TREASURIES
(Cost $2,080,370) 11,980,142
----------------------------------------------------------------------------------------------
MUTUAL FUNDS 3.57%
Dreyfus Cash Management Fund 842,560 842,560
TOTAL MUTUAL FUNDS
(Cost $842,560) 842,560
----------------------------------------------------------------------------------------------
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED 2.62%
MUTUAL FUNDS
AIM Liquid Assets Fund 44,607 44,607
Mitchell Hutchins Private Money Market Fund(2) 572,893 572,893
-----------
617,500
TOTAL INVESTMENTS OF CASH COLLATERAL
FOR SECURITIES LOANED
(Cost $617,500) 617,500
----------------------------------------------------------------------------------------------
Total Investments (Cost $24,762,123) 101.52% $23,954,098
Liabilities in Excess of Other Assets (1.52)% (357,723)
---------- -----------
NET ASSETS 100.00% $23,596,375
----------------------------------------------------------------------------------------------
</TABLE>
See Notes to Statements of Investments
--------------------------------------------------------------------------------
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<PAGE> 78
Statements of Investments
WESTCORE INTERMEDIATE-TERM BOND FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
--------- ------------
<S> <C> <C>
CORPORATE BONDS 61.49%
FINANCIAL 32.75%
FINANCIAL SERVICES 4.68%
Beneficial Corp., 6.25%, 02/18/2013 $ 450,000 $ 435,012
Ford Motor Credit Co., 5.75%, 02/23/2004 500,000 465,482
Heller Financial, Inc., Series MTNI, 7.125%, 09/28/2004 375,000 357,991
Norwest Financial Inc., 6.625%, 07/15/2004 200,000 191,926
Transamerica Financial Corp., 7.25%, 08/15/2002 150,000 148,496
----------
1,598,907
INSURANCE 2.04%
Aetna Services Inc., 7.125%, 08/15/2006 750,000 699,025
INVESTMENT BANKING/BROKERAGE 2.62%
Bear Stearns Companies Inc., 7.625%, 02/01/2005 450,000 437,718
Donaldson, Lufkin & Jenrette, Inc., 5.875%, 04/01/2002 475,000 458,872
----------
896,590
LEASING COMPANIES 0.69%
AT&T Capital Corp., Series MTNF, 6.60%, 05/15/2005 250,000 237,127
REITS 22.72%
Avalon Bay Communities Inc., 6.50%, 07/15/2003 300,000 284,931
Camden Property Trust, 7.00%, 04/15/2004 300,000 283,853
Centerpoint Property Trust, 6.75%, 04/01/2005 400,000 366,088
Corporate Property Investors, 7.75%, 08/15/2004(1) 600,000 583,484
CP Limited Partnership, 6.92%, 12/10/2004 375,000 353,706
Developers Diversified Realty Trust, 6.95%, 07/23/2004 500,000 465,220
Evans Withycombe Residential Trust, 7.50%, 04/15/2004 375,000 365,083
Health Care Properties, 6.50%, 02/15/2006 400,000 342,384
Kimco Realty Corp., 6.83%, 11/14/2005 1,000,000 932,312
Nationwide Health Property Trust, 7.23%, 11/08/2006 425,000 361,203
New Plan Realty Trust, 7.75%, 04/06/2005 1,000,000 966,559
Price Development Co. LP, 7.29%, 03/11/2008 200,000 174,398
Security Capital Industrial Trust, 7.95%, 05/15/2008 350,000 328,881
United Dominion Realty Trust Inc., 8.125%, 11/15/2000 300,000 300,159
</TABLE>
--------------------------------------------------------------------------------
76 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 79
Statements of Investments
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
----------- ------------
<S> <C> <C>
Washington Real Estate Investment Trust, 7.125%, 08/13/2003 $ 750,000 $ 720,382
Weingarten Realty Investors Trust, 7.22%, 06/01/2005 1,000,000 941,503
----------
7,770,146
TOTAL FINANCIAL
(Cost $11,800,617) 11,201,795
---------------------------------------------------------------------------------------
INDUSTRIAL 15.14%
AEROSPACE & DEFENSE 2.15%
Raytheon Co., 6.50%, 07/15/2005 790,000 735,702
CHEMICALS - DIVERSIFIED 0.59%
Olin Corp., 8.00%, 06/15/2002 200,000 201,653
HOSPITAL EQUIPMENT 1.00%
Hillenbrand Industries Inc., 8.50%, 12/01/2011 325,000 343,493
HOTELS - RESTAURANTS - LEISURE 5.25%
Circus Circus Enterprises Inc., 6.45%, 02/01/2006 350,000 294,207
Hilton Hotels Corp., 7.95%, 04/15/2007 600,000 539,622
Marriott International Inc., 6.875%, 11/15/2005 300,000 279,829
Mirage Resorts Inc.:
7.25%, 10/15/2006 100,000 90,164
6.75%, 08/01/2007 100,000 86,528
Park Place Entertainment Corp., 8.50%, 11/15/2006 525,000 506,086
----------
1,796,436
MEDIA - PUBLISHING - CABLE 3.91%
AT&T Corp., 6.00%, 03/15/2009 350,000 305,654
Time Warner Entertainment Co., 9.625%, 05/01/2002 1,000,000 1,033,075
----------
1,338,729
METALS 0.61%
Cyprus Amax Minerals Co., 6.625%, 10/15/2005 225,000 207,306
RETAIL 1.63%
Penney (JC) Co. Inc., 7.25%, 04/01/2002 400,000 382,909
Pep Boys - Manny, Moe & Jack, 6.52%, 07/16/2007 225,000 173,346
----------
556,255
TOTAL INDUSTRIAL
(Cost $5,477,816) 5,179,574
---------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 80
Statements of Investments
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
---------- ------------
<S> <C> <C>
TRANSPORTATION 11.91%
AIR TRANSPORTATION 11.91%
Aerofreighter Finance Trust - Series A, Class A, 7.85%, 12/15/2009(1) $ 297,766 $ 295,719
America West Airlines Inc. Pass-Through Certificates, Series 1999-1,
Class G, 7.93%, 01/02/2019(1) 170,965 167,979
American Airlines Inc., Series 1991, 9.71%, 01/02/2007 690,222 698,246
Atlas Air Inc., 8.707%, 01/02/2020(1) 500,000 499,312
Continental Airlines Inc. Pass-Through Certificates, Series 962A,
7.75%, 07/02/2014 452,632 436,226
Continental Airlines Inc. Pass-Through Certificates, Series 99-2,
Class B, 7.566%,03/15/2020 197,624 182,738
Delta Airlines Inc., 7.7%, 12/15/2005 300,000 281,113
Jet Equipment Trust, Class C, 9.71%, 08/15/2013(1) 350,000 352,966
United Airlines Inc. Pass-Through Certificates, Series 95-A1,
9.02%, 04/19/2012 880,549 885,061
US Airways Inc. Pass-Through Certificates, Series 98-1,
6.85%, 01/30/2018 318,541 275,393
------------
4,074,753
TOTAL TRANSPORTATION
(Cost $4,179,801) 4,074,753
--------------------------------------------------------------------------------------------------------------
UTILITIES 1.69%
ELECTRIC & OTHER SERVICES COMBINED 1.69%
Duke Capital Corp., 7.25%,10/01/2004 200,000 195,209
Edison International Inc., 6.875%, 09/15/2004 400,000 382,072
------------
577,281
TOTAL UTILITIES
(Cost $597,795) 577,281
--------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $22,056,029) 21,033,403
--------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES, COLLATERALIZED MORTGAGE OBLIGATIONS &
MORTGAGE-BACKED SECURITIES 24.09%
ASSET-BACKED SECURITIES 10.94%
American Express Master Trust, 5.90%, 04/15/2004 500,000 478,917
Americredit Automobile Receivables Trust, Series 1999-B,
Class A4, 5.96%, 03/05/2006 250,000 241,994
Arcadia Automobile Receivables Trust, Series 1999-C,
Class A3, 7.20%, 06/15/2007 181,260 179,001
--------------------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
78 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 81
Statements of Investments
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
---------- ------------
<S> <C> <C>
California Infrastructure PG&E-1, Series 1997-1, Class A-5,
6.25%, 06/25/2004 $ 250,000 $ 245,331
California Infrastructure PG&E-1, Series 1997-1, Class A-6,
6.32%, 09/25/2005 100,000 97,254
Capital Auto Receivables Asset Trust, Series 1999-2, Class A4,
6.30%, 05/15/2004 375,000 369,606
Carco Auto Loan Master Trust, Series 1991-1, Class A2,
5.78%, 03/15/2004 525,000 509,888
COMED Transitional Funding Trust, Series 1998-1, Class A2,
5.29%, 06/25/2003 250,000 245,396
COMED Transitional Funding Trust, Series 1998-1, Class A6,
5.63%, 06/25/2009 150,000 135,155
Household Automobile Revolving Trust I, Series 1998-1, Class B1,
6.30%, 05/17/2005 109,221 107,662
John Deere Owner Trust, Series 1999-A, Class A4, 6.12%, 10/17/2005 375,000 363,714
Newcourt Equipment Trust Securities, Series 1998-1, Class A3,
5.24%, 12/20/2002 229,360 226,427
Sears Credit Account Master Trust, Series 1999-2, Class A,
6.35%, 02/15/2007 300,000 293,342
WFS Financial Owner Trust, Series 2000-A, Class A3,
7.22%, 09/20/2004 250,000 247,919
------------
3,741,606
COLLATERALIZED MORTGAGE OBLIGATIONS 0.50%
Collateralized Mortgage Securities Corp., Series 1988-4, Class B,
8.75%, 04/20/2019 168,344 171,204
MORTGAGE-BACKED SECURITIES 12.65%
FHLMC Gold Pool, #C00909, 7.00%, 01/01/2030 99,255 94,369
FHLMC Pool, #C31604, 7.50%, 10/01/2029 149,449 145,489
FHLMC Pool #C35372, 7.00%, 01/01/2030 79,395 75,486
FHLMC Pool #C35377, 7.00%, 01/01/2030 118,843 112,993
FHLMC Pool #G00336, 6.00%, 10/01/2024 1,351,541 1,230,699
FNMA Pool #303845, 7.00%, 05/01/2011 627,440 609,812
FNMA Pool #524784, 7.00%, 01/01/2030 1,055,629 1,002,346
FNMA Pool #529027, 7.00%, 02/01/2030 501,076 475,784
GNMA Pool #780019, 9.50%, 12/15/2009 557,767 579,882
------------
4,326,860
TOTAL ASSET-BACKED SECURITIES, COLLATERALIZED MORTGAGE
OBLIGATIONS & MORTGAGE-BACKED SECURITIES
(Cost $8,411,784) 8,239,670
---------------------------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE> 82
Statements of Investments
<TABLE>
<CAPTION>
<S> <C> <C>
U.S. GOVERNMENT AGENCIES & TREASURIES 9.80%
U.S. GOVERNMENT AGENCIES 1.36%
FNMA, 5.125%, 02/13/2004 $ 500,000 $ 463,750
U.S. GOVERNMENT TREASURIES 8.44%
U.S. TREASURY NOTES:
6.25%, 04/30/2001 1,000,000 996,250
7.875%, 08/15/2001 750,000 759,610
5.75%, 08/15/2003 100,000 97,406
7.50%, 02/15/2005 1,000,000 1,035,313
-----------
2,888,579
TOTAL U.S. GOVERNMENT AGENCIES & TREASURIES
(Cost $3,389,421) 3,352,329
---------------------------------------------------------------------------------
MUTUAL FUNDS 3.35%
Dreyfus Cash Management Fund 1,146,904 1,146,904
TOTAL MUTUAL FUNDS
(Cost $1,146,904) 1,146.904
---------------------------------------------------------------------------------
Total Investments
(Cost $35,004,138) 98.73% $33,772,306
Other Assets in Excess of Liabilities 1.27% 435,465
--------- -----------
NET ASSETS 100.00% $34,207,771
---------------------------------------------------------------------------------
See Notes to Statements of Investments
</TABLE>
--------------------------------------------------------------------------------
80 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 83
Statements of Investments
WESTCORE COLORADO TAX-EXEMPT FUND
<TABLE>
<CAPTION>
BOND RATING* PRINCIPAL
MOODY'S/S&P AMOUNT MARKET VALUE
------------ --------- ------------
<S> <C> <C> <C>
CERTIFICATES OF PARTICIPATION 5.59%
Bent County, Certificate of Participation,
Jail Facility and County Project Lease Purchase
Agreement, 4.50%, 12/01/2010, Optional anytime
@ 100.00, Asset Guaranty NR/AA $ 200,000 $ 171,820
Colorado State Board of Agriculture, Certificate of
Participation, CSU Research Foundation Master
Lease Purchase Agreement, 6.45%, 11/01/2001,
Optional anytime @ 100.00, MBIA Aaa/AAA 60,000 60,380
El Paso County, Certificate of Participation, Lease
Purchase Agreement, 4.40%, 12/01/2002,
Optional anytime @100.00, MBIA Aaa/NR 200,000 196,276
Fremont County, Certificate of Participation, Lease
Purchase Agreement, 5.125%, 12/15/2011,
Optional anytime @ 100.00, MBIA Aaa/AAA 500,000 474,995
Garfield County Building Corporation, Certificate of
Participation, Correctional Facilities Improvements
Lease Purchase Agreement, 4.55%, 12/01/2003,
Optional anytime @ 100.00, AMBAC NR/AAA 110,000 107,547
Larimer County, Certificate of Participation, Courthouse &
Jail Facilities Lease Purchase Agreement, 4.75%,
12/15/2009, Optional anytime @ 100.00, FSA Aaa/AAA 500,000 467,855
Moffat County, Certificate of Participation, Public Safety
Center Project Lease Purchase Agreement, 4.75%,
06/01/2009, Optional anytime @ 100.00, AMBAC Aaa/AAA 100,000 93,117
Weld County, Certificate of Participation, Correctional
Facilities Lease Purchase Agreement, 5.35%, 8/01/2010,
Optional anytime @ 100.00, MBIA Aaa/AAA 510,000 498,556
----------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $2,175,651) 2,070,546
--------------------------------------------------------------------------------------------------
GENERAL OBLIGATION BONDS 62.95%
County/City/Special District/School District 62.95%
Adams County School District 12, 6.125%, 12/15/2007,
Optional 12/15/2003 @ 100.00, FGIC Aaa/AAA 500,000 513,380
Adams County School District 14, 5.30%, 12/01/2009,
Optional 12/01/2007 @ 101.00, FSA Aaa/AAA 500,000 497,420
</TABLE>
--------------------------------------------------------------------------------
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Statements of Investments
<TABLE>
<CAPTION>
BOND RATING* PRINCIPAL
MOODY'S/S&P AMOUNT MARKET VALUE
----------- ---------- ------------
<S> <C> <C> <C>
Adams & Arapahoe Counties Joint School District 28J,
5.75%, 12/01/2006, MBIA Aaa/AAA $ 100,000 $ 102,945
Adams & Arapahoe Counties School District 29J, 5.40%,
12/01/2009, Optional 12/01/2006 @ 100.00, MBIA Aaa/AAA 100,000 100,108
Adams & Weld Counties School District 27J, 5.55%,
12/01/2009, Optional 12/01/2006 @ 100.00, FGIC Aaa/AAA 250,000 252,442
Arapahoe County School District 1, 5.25%, 12/01/2013,
Optional 12/01/2008 @ 100.00, FSA Aaa/AAA 500,000 478,555
Arapahoe County School District 2, 6.75%, 12/01/2004,
Escrowed to Maturity Aa3/NR 25,000 26,589
Arapahoe County School District 5, 5.50%, 12/15/2006 Aa2/AA 500,000 509,045
Arapahoe County School District 6, 5.50%, 12/01/2006 Aa2/AA 250,000 254,920
Archuleta & Hinsdale Counties Joint School District 50 JT,
5.50%, 12/01/2014, Optional 12/01/2006 @
101.00, MBIA Aaa/AAA 250,000 244,855
Archuleta & La Plata Counties School District No. 10 JT-R,
4.20%, 12/01/2010, Optional 12/01/2008 @
100.00, MBIA Aaa/AAA 150,000 129,253
Basalt & Rural Fire Protection District, Eagle & Pitkin
Counties, 5.20%, 12/01/2015, Optional 12/01/2006
@ 100.00, AMBAC Aaa/AAA 100,000 93,155
Boulder & Gilpin Counties, Boulder Valley School
District Re-2:
5.90%, 10/15/2003, Optional 10/15/2001 @ 100.00 Aa3/AA 500,000 505,605
5.50%, 12/01/2005, FGIC Aaa/AAA 100,000 101,610
6.25%, 10/15/2006, Optional 10/15/2001 @100.00 Aa3/AA 100,000 101,621
5.00%, 12/01/2011, Optional 12/01/2007 @
100.00, FGIC Aaa/AAA 1,000,000 951,260
Boulder, Larimer, & Weld Counties,
St. Vrain Valley School District Re-1J:
5.50%, 12/15/2004, Optional 12/15/2002 @
101.00, MBIA Aaa/AAA 100,000 101,519
6.00%, 12/15/2010, Optional 12/15/2002 @
101.00, MBIA Aaa/AAA 100,000 102,229
Brighton, Adams County, Water, 6.625%, 12/01/2011,
Prerefunded 12/01/2001 @ 101.00, MBIA Aaa/AAA 205,000 212,161
Broomfield, Boulder, Jefferson, Adams & Weld Counties,
Water, 4.55%, 08/01/2010, Optional 08/01/2008
@ 100.00, FSA Aaa/AAA 250,000 227,450
</TABLE>
--------------------------------------------------------------------------------
82 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 85
Statements of Investments
<TABLE>
<CAPTION>
BOND RATING* PRINCIPAL
MOODY'S/S&P AMOUNT MARKET VALUE
----------- ---------- ------------
<S> <C> <C> <C>
Carbondale & Rural Fire Protection District, Garfield,
Gunnison & Pitkin Counties, 5.20%, 12/01/2010,
Optional 12/01/2004 @ 101.00, AMBAC Aaa/AAA $ 100,000 $ 97,966
Chaffee County School District R-31, 5.10%,
12/01/2009, Optional 12/01/2006 @ 100.00, FSA Aaa/AAA 150,000 146,093
Chaffee & Fremont Counties School District R-32J, 5.00%,
12/01/2012, Optional 12/01/2007 @ 100.00, FSA Aaa/AAA 425,000 398,297
City & County of Denver Board Water Commissioners,
5.50%, 10/01/2011 Aa2/AA+ 250,000 251,025
Clear Creek County School District Re-1, 5.40%,
12/01/2011, Optional 12/01/2005 @ 100.00, MBIA Aaa/AAA 250,000 248,310
Denver City & County Various Purposes, 5.25%,
08/01/2005 Aa2/AA+ 500,000 501,980
Douglas & Elbert Counties School District Re-1:
5.75%, 12/15/2005, Optional 12/15/2001 @
101.00, FGIC Aaa/AAA 250,000 253,462
6.15%, 12/15/2008, Optional 12/15/2004 @
101.00, MBIA Aaa/AAA 250,000 259,690
6.50%, 12/15/2016, Prerefunded 12/15/2004 @
101.00 Aaa/AAA 500,000 532,010
Eagle, Garfield & Routt Counties School District Re-50J:
5.75%, 12/01/2003, Optional 12/01/2002 @
100.00, FGIC Aaa/AAA 200,000 203,062
4.40%, 12/01/2010, Optional 12/01/2009 @
101.00, FGIC Aaa/AAA 500,000 446,250
5.25%, 12/01/2015, Optional 12/01/2009 @
101.00, FGIC Aaa/AAA 1,000,000 949,160
El Paso County School District 2:
5.70%, 12/01/2014, Prerefunded 12/01/2005
@ 100.00 Aa3/NR 100,000 102,461
5.25%, 12/01/2012, Optional 12/01/2010
@ 100.00, MBIA Aaa/AAA 250,000 243,743
El Paso County School District 3, 6.20%, 12/15/2000,
MBIA Aaa/AAA 125,000 126,034
El Paso County School District 12, 5.90%, 09/15/2004 Aa1/NR 80,000 82,462
El Paso County School District 20, 5.70%, 12/15/2006,
FGIC Aaa/AAA 250,000 256,708
El Paso County School District 38, 4.60%, 12/01/2013,
Optional 12/01/2008 @ 100.00, AMBAC Aaa/AAA 275,000 239,258
El Paso County School District 49 6.75%, 12/01/2004,
Optional 12/01/2000 @ 100.00, MBIA Aaa/AAA 125,000 126,241
</TABLE>
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<PAGE> 86
Statements of Investments
<TABLE>
<CAPTION>
BOND RATING* PRINCIPAL
MOODY'S/S&P AMOUNT MARKET VALUE
----------- ---------- ------------
<S> <C> <C> <C>
Elbert County School District C-1 Elizabeth, 4.40%,
12/01/2011, Optional 12/01/2009 @ 100.00 Aa3/AA- $ 250,000 $ 212,795
Fort Collins, Larimer County, Water, 5.55%, 12/01/2003,
Optional 12/01/2002 @ 101.00 Aa1/AA 200,000 203,006
Garfield, Pitkin & Eagle Counties Roaring Fork School
District Re-1:
5.125%, 12/15/2010, Optional 12/15/2005 @
102.00 MBIA Aaa/AAA 500,000 487,910
6.60%, 12/15/2014, Prerefunded 06/15/2004 @
101.00, MBIA Aaa/AAA 250,000 265,585
Grand County, East Grand School District 2, 5.00%,
12/01/2017, Optional 12/01/2008 @ 100.00, AMBAC Aaa/AAA 500,000 447,280
Greenwood South Metropolitan District, Arapahoe County,
5.50%, 12/01/2004, MBIA Aaa/AAA 250,000 253,775
Gunnison & Saguache Counties, Watershed School
District Re-1J 6.00%, 12/01/2005, MBIA Aaa/AAA 150,000 155,967
Jefferson County School District R-1:
5.75%, 12/15/2003, Prerefunded 12/15/2002 @
101.00, AMBAC Aaa/AAA 100,000 102,671
5.90%, 12/15/2004, Prerefunded 12/15/2002 @
101.00, AMBAC Aaa/AAA 500,000 515,125
La Plata County School District 9-R, 6.60%, 11/01/2017,
Optional 11/01/2002 @ 101.00, FGIC Aaa/AAA 500,000 518,445
Larimer County, Poudre School District R-1:
5.50%, 12/15/2008 Aa3/AA- 500,000 506,440
7.00%, 12/15/2008, Prerefunded 12/15/2001
@ 101.00 NR\NR 125,000 129,887
5.00%, 12/15/2016, Optional 12/15/2008
@ 100.00, FSA Aaa/AAA 500,000 452,380
Larimer, Weld, & Boulder Counties, Thompson School
District R2-J:
5.40%, 12/15/2013, Optional 06/15/2007 @
101.00, FGIC Aaa/AAA 500,000 488,730
5.45%, 12/15/2016, Optional 06/15/2007 @
101.00, FGIC Aaa/AAA 250,000 240,382
Mesa County Valley School District 51:
6.00%, 12/01/2006, MBIA Aaa/AAA 1,000,000 1,043,090
5.40 %, 12/01/2012, Optional 12/01/2006 @
101.00, MBIA Aaa/AAA 500,000 491,980
Montezuma County School District Re-4A, 5.10%,
12/01/2010, Optional 12/01/2007 @ 101.00, MBIA Aaa/AAA 150,000 144,857
</TABLE>
--------------------------------------------------------------------------------
84 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 87
Statements of Investments
<TABLE>
<CAPTION>
BOND RATING* PRINCIPAL
MOODY'S/S&P AMOUNT MARKET VALUE
----------- ---------- ------------
<S> <C> <C> <C>
Morgan County School District Re-3, Fort Morgan,
4.80%, 12/01/2018, Optional 12/01/2009 @
100.00, AMBAC Aaa/AAA $ 500,000 $ 428,205
Park County Platte Canyon School District 1, 4.30%,
12/01/2010, Optional 12/01/2008 @ 101.00, MBIA Aaa/AAA 250,000 218,665
Poudre Valley Hospital District, Larimer County, 5.375%,
11/15/2007, Optional 11/15/2003 @ 100.00 Aa/AA- 1,000,000 1,002,940
Pueblo County School District 70, 5.00%, 12/01/2011,
Optional 12/01/2007 @ 100.00, AMBAC Aaa/AAA 225,000 213,118
Pueblo, Pueblo County Limited Tax:
5.80%, 06/01/2011, Optional 06/01/2006 @
100.00, MBIA Aaa/AAA 200,000 203,072
6.00%, 06/01/2016, Optional 06/01/2006 @
100.00, MBIA Aaa/AAA 250,000 253,008
Rio Grande County School District C-8, 5.35%, 11/15/2011,
Optional 11/15/2005 @ 100.00, FSA Aaa/AAA 150,000 147,927
Routt County School District Re-2, 5.05%, 12/01/13,
Optional 12/01/2007 @ 100.00, MBIA Aaa/AAA 250,000 233,345
San Miguel & Montrose Counties, School District R-2J,
5.00%, 12/01/2012, Optional 12/01/2007 @
100.00, MBIA Aaa/AAA 100,000 93,717
San Miguel County School District R-1, 5.50%,
12/01/2012, Optional 12/01/2005 @ 101.00, MBIA Aaa/AAA 250,000 247,553
South Suburban Park and Recreation District, Arapahoe,
Douglas & Jefferson Counties, 5.00%, 12/15/2012,
Optional 12/15/2008 @ 100.00, FGIC Aaa/AAA 250,000 235,107
Summit County School District Re-1, 6.55%, 12/01/2009,
Prerefunded 12/01/2004 @ 100.00, FGIC Aaa/AAA 1,000,000 1,057,650
Thornton, Adams County, Water, 6.00% , 12/01/2005,
Optional 12/01/2002 @ 101.00, FGIC Aaa/AAA 250,000 256,832
Three Lakes Water & Sanitation District, Grand County
Limited Tax, 6.00%, 06/01/2000, MBIA Aaa/AAA 135,000 135,000
Upper San Juan Hospital District, Archuleta, Hinsdale &
Mineral Counties, 4.65%, 11/01/2013, Optional
11/01/2007 @ 100.00, MBIA Aaa/AAA 115,000 100,517
Weld County School District Re-4, 5.30%, 12/01/2010,
Optional 12/01/2005 @ 100.00, MBIA Aaa/AAA 150,000 148,668
Weld County School District 6, 5.50%, 12/01/2006 Aa3/AA 250,000 254,230
Woodland Park, Teller County,Water, 6.30%, 07/01/2008,
Optional 07/01/2000 @ 101.00, FGIC Aaa/AAA 100,000 101,119
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 88
Statements of Investments
<TABLE>
<CAPTION>
BOND RATING* PRINCIPAL
MOODY'S/S&P AMOUNT MARKET VALUE
----------- ---------- ------------
<S> <C> <C> <C>
Woodmoor Water & Sanitation District 1, El Paso County,
6.20%, 12/01/2000, MBIA Aaa/AAA $ 125,000 $ 125,952
Wray Community Hospital District, Yuma County,
5.00%, 10/15/2011, Optional 10/15/2004 @
100.00, AMBAC Aaa/AAA 250,000 236,685
---------------------------------------------------------------------------------------------------------------------------
TOTAL GENERAL OBLIGATION BONDS
(Cost $24,162,544) 23,323,949
---------------------------------------------------------------------------------------------------------------------------
REVENUE BONDS 24.96%
Education 0.27%
University of Colorado Board of Regents, Auxiliary
Facilities, 6.50%, 06/01/2001, Prerefunded
6/01/2000 @ 101.00 A1/NR 100,000 101,000
PUBLIC FACILITIES 0.55%
Denver Metropolitan Major League Baseball Stadium
District Sales Tax, 6.25%, 10/01/2002, Prerefunded
10/01/2001 @ 101.00, FGIC Aaa/AAA 200,000 205,564
SPECIAL TAX 8.61%
Boulder County Open Space Sales & Use Tax, 5.75%,
12/15/2004, FGIC Aaa/AAA 500,000 512,600
Boulder Urban Renewal Authority Tax Increment, 6.00%,
03/01/2002, Optional 03/01/2000 @ 101.00, MBIA Aaa/AAA 250,000 252,070
Castle Rock, Douglas County Sales & Use Tax, 5.25%,
06/01/2006, FSA Aaa/AAA 200,000 199,898
Commerce City, Adams County Sales & Use Tax, 5.375%,
08/01/2007, Optional 08/01/2003 @ 101.00, MBIA Aaa/AAA 100,000 100,283
Denver City & County Excise Tax, 5.25%, 9/01/2008, FSA Aaa/AAA 500,000 497,315
Glenwood Springs, Garfield County Sales & Use Tax,
4.25%, 10/01/2010, Optional 10/01/2009 @
101.00, MBIA Aaa/AAA 250,000 219,645
Greeley, Weld County Sales & Use Tax, 4.80%,
10/01/2015, Optional 10/01/2008 @ 100.00, MBIA Aaa/AAA 250,000 220,682
Ignacio, La Plata County Sales Tax, 4.75%,
12/01/2009 AMBAC Aaa/AAA 150,000 140,600
Jefferson County Open Space Sales & Use Tax, 5.00%,
11/01/2012, Optional 11/01/2009 @ 100.00, FGIC Aaa/AAA 500,000 470,400
Lafayette, Boulder County Sales & Use Tax, 6.40%,
11/15/2004, Prerefunded 11/15/2001 @
100.00, AMBAC Aaa/AAA 150,000 153,277
</TABLE>
--------------------------------------------------------------------------------
86 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 89
Statements of Investments
<TABLE>
<CAPTION>
BOND RATING* PRINCIPAL
MOODY'S/S&P AMOUNT MARKET VALUE
----------- ---------- ------------
<S> <C> <C> <C>
Longmont, Boulder County Sales & Use Tax 5.50%,
11/15/2015, Optional 11/15/2010 @ 100.00 NR/AA $ 300,000 $ 292,377
Montrose, Montrose County General Fund Excise Tax
Revenue, 5.00%, 12/01/2017, Optional 12/01/2008
@ 100.00, AMBAC Aaa/AAA 150,000 131,087
-----------
3,190,234
Transportation 0.65%
Colorado Springs, El Paso County Airport System, 5.10%,
01/01/2010, Optional 01/01/2006 @ 101.00, MBIA Aaa/AAA 250,000 242,020
Utility 14.88%
Boulder, Boulder County Water & Sewer:
5.75%, 12/01/2006, Optional 12/01/2002 @ 100.00 Aa2/AA+ 75,000 75,955
5.50%, 12/01/2011, Optional 12/01/2006 @ 100.00 Aa2/AA+ 500,000 502,710
Central Weld County Water District,
5.25%, 12/01/2005, Optional 12/01/2003 @
100.00, MBIA Aaa/AAA 250,000 250,395
Colorado Springs, El Paso County Utilities Systems:
6.40%, 11/15/2002, Optional 11/15/2001 @ 102.00 Aa2/AA 100,000 103,125
5.75%, 11/15/2010, Optional 11/15/2006 @ 100.00 Aa2/AA 250,000 254,300
6.50%, 11/15/2015, Optional 11/15/2001 @ 102.00 Aa2/AA 250,000 260,028
Colorado Water Resources & Power Development
Authority, Small Water Resources 5.70%, 11/01/2015,
Optional 11/01/2010 @ 100.00 FGIC Aaa/AAA 500,000 497,945
Fort Collins, Larimer County Wastewater Utility Enterprise,
Sewer, 5.375%, 12/01/2009, Optional 12/01/2005 @
100.00, FGIC Aaa/AAA 250,000 249,907
Fort Collins, Larimer County Water Utility Enterprise,
4.25%, 12/01/2009, Optional 12/01/2008 @
100.00, FSA Aaa/AAA 500,000 444,000
Little Thompson Water District, Larimer, Weld & Boulder
Counties, 5.50%, 12/01/2011, Optional 12/01/2005
@ 101.00, MBIA Aaa/AAA 500,000 499,580
Mesa County, Sewer, 5.85%, 11/01/2005, Optional
11/01/2002 @ 100.00, FGIC Aaa/AAA 500,000 507,040
Metropolitan Denver Sewage Disposal District 1, Sewer,
5.45%, 04/01/2003, Escrowed to Maturity Aaa/AAA 500,000 505,315
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 90
Statements of Investments
<TABLE>
<CAPTION>
BOND RATING* PRINCIPAL
MOODY'S/S&P AMOUNT MARKET VALUE
----------- ---------- ------------
<S> <C> <C> <C>
Municipal Subdistrict, Northern Colorado Water
Conservancy District:
5.85%, 12/01/2002, AMBAC Aaa/AAA 500,000 509,990
5.25%, 12/01/2015, Optional 12/01/2007 @
100.00, AMBAC Aaa/AAA 250,000 236,555
Platte River Power Authority Series BB, 5.75%,
06/01/2004, Optional 06/01/2002 @ 102.00 Aa3/A+ 500,000 511,625
Westminster, Adams County Water & Wastewater
Utility Enterprise, 6.25%, 12/01/2014, Optional
12/01/2004 @ 100.00, AMBAC Aaa/AAA 100,000 103,517
-----------
5,511,987
TOTAL REVENUE BONDS
(Cost $9,487,725) 9,250,805
-------------------------------------------------------------------------------------------------------------------
MUTUAL FUNDS 5.04%
Dreyfus Municipal Money Market Fund 1,616,840 1,616,840
Fidelity Institutional Money Market Tax Exempt Fund 250,000 250,000
-----------
1,866,840
TOTAL MUTUAL FUNDS
(Cost $1,866,840) 1,866,840 1,866,840
-------------------------------------------------------------------------------------------------------------------
Total Investments (Cost $37,692,760) 98.54% $ 36,512,140
Other Assets in Excess of Liabilities 1.46% 542,395
--------------------------
NET ASSETS 100.00% $ 37,054,535
-------------------------------------------------------------------------------------------------------------------
</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) 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.
(3) Security purchased through a private placement transaction and has certain
restrictions on its resale, as defined in the Securities Act of 1933, and is
therefore considered an illiquid investment.
--------------------------------------------------------------------------------
88 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 91
STATEMENTS OF ASSETS AND LIABILITIES
WESTCORE EQUITY GROWTH FUNDS
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
MIDCO GROWTH AND INTERNATIONAL
GROWTH FUND INCOME FUND FRONTIER FUND
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash $ 0 $ 0 $ 0
Investments at value (cost - see below) 273,580,181 16,162,187 21,409,293
- see accompanying statements
Receivable for investments sold 1,665,110 149,471 111,447
Dividends and interest receivable 292,966 8,950 42,624
Receivable for fund shares subscribed 1,152,719 55,768 134,732
Receivable from investment adviser 0 0 0
Investment for trustee deferred
compensation plan 205,590 5,770 440
Prepaid and other assets 42,571 5,279 23,679
----------------------------------------------------------------------------------------------------
TOTAL ASSETS 276,939,137 16,387,425 21,722,215
----------------------------------------------------------------------------------------------------
LIABILITIES
Collateral received from broker for
securities lending transactions 42,563,900 27,200 0
Payable for investments purchased 401,416 107,654 56,184
Payable for fund shares redeemed 836,583 57,264 18,991
Payable for investment advisory fee 141,447 3,240 15,051
Payable for administration fee 66,000 3,898 6,185
Payable for trustee deferred
compensation plan 205,590 5,770 440
Other payables 370,060 25,415 12,651
----------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 44,584,996 230,441 109,502
----------------------------------------------------------------------------------------------------
NET ASSETS $ 232,354,141 $ 16,156,984 $ 21,612,713
====================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $ 95,757,281 $ 7,534,342 $ 19,693,730
(Over)/Undistributed net investment income (69,691) (21,236) 27,979
Accumulated net realized gain (loss) on
investments and foreign currency transactions 72,417,470 2,836,436 991,842
Net unrealized appreciation/(depreciation)
on investments and translation of assets and
liabilities denominated in foreign currencies 64,249,081 5,807,442 899,162
----------------------------------------------------------------------------------------------------
NET ASSETS $ 232,354,141 $ 16,156,984 $ 21,612,713
====================================================================================================
NET ASSET VALUE PER SHARE
Net Assets $ 232,354,141 $ 16,156,984 $ 21,612,713
Shares of beneficial interest outstanding 12,843,785 1,060,080 1,862,828
Net asset value and redemption price per share $ 18.09 $ 15.24 $ 11.60
----------------------------------------------------------------------------------------------------
COST OF INVESTMENTS $ 209,331,100 $ 10,354,745 $ 20,509,963
====================================================================================================
</TABLE>
See Notes to Financial Statements
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<PAGE> 92
STATEMENTS OF ASSETS AND LIABILITIES
WESTCORE EQUITY GROWTH FUNDS (CONTINUED)
<TABLE>
<CAPTION>
WESTCORE
SMALL-CAP WESTCORE
GROWTH FUND SELECT FUND
------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash $ 0 $ 1,720,041
Investments at value (cost - see below) 22,327,733 45,512,396
- see accompanying statements
Receivable for investments sold 59,798 4,464,785
Dividends and interest receivable 7,720 34,739
Receivable for fund shares subscribed 133,936 2,554,430
Receivable from investment adviser 0 0
Investment for trustee deferred
compensation plan 730 789
Prepaid and other assets 11,451 9,910
------------------------------------------------------------------------------------
TOTAL ASSETS 22,541,368 54,297,090
------------------------------------------------------------------------------------
LIABILITIES
Collateral received from broker for
securities lending transactions 0 0
Payable for investments purchased 446,063 17,365,348
Payable for fund shares redeemed 294,601 852,172
Payable for investment advisory fee 11,329 16,293
Payable for administration fee 6,026 9,511
Payable for trustee deferred
compensation plan 730 789
Other payables 11,138 15,606
------------------------------------------------------------------------------------
TOTAL LIABILITIES 769,887 18,259,719
------------------------------------------------------------------------------------
NET ASSETS $ 21,771,481 $ 36,037,371
====================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $ 28,192,469 $ 21,141,124
(Over)/Undistributed net investment income (28,043) (18,126)
Accumulated net realized gain (loss) on
investments and foreign currency transactions (2,390,607) 13,635,865
Net unrealized appreciation/(depreciation)
on investments and translation of assets and
liabilities denominated in foreign currencies (4,002,338) 1,278,508
------------------------------------------------------------------------------------
NET ASSETS $ 21,771,481 $ 36,037,371
====================================================================================
NET ASSET VALUE PER SHARE
Net Assets $ 21,771,481 $ 36,037,371
Shares of beneficial interest outstanding 1,281,177 1,602,809
Net asset value and redemption price per share $ 16.99 $ 22.48
------------------------------------------------------------------------------------
COST OF INVESTMENTS $ 26,330,071 $ 44,233,888
====================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
90 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 93
STATEMENTS OF ASSETS AND LIABILITIES
WESTCORE EQUITY VALUE FUNDS
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
BLUE CHIP MID-CAP SMALL-CAP
FUND OPPORTUNITY FUND OPPORTUNITY FUND
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash $ 0 $ 0 $ 0
Investments at value (cost - see below) 53,190,755 3,099,032 35,640,647
- see accompanying statements
Receivable for investments sold 0 0 228,428
Dividends and interest receivable 71,335 1,863 23,240
Receivable for fund shares subscribed 5,918 0 110,990
Receivable from investment adviser 0 3,915 0
Investment for trustee deferred
compensation plan 17,417 194 12,607
Prepaid and other assets 6,204 10,982 13,896
------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 53,291,629 3,115,986 36,029,808
------------------------------------------------------------------------------------------------------------
LIABILITIES
Collateral received from broker for
securities lending transactions 1,267,300 0 0
Payable for investments purchased 0 94,268 1,293,784
Payable for fund shares redeemed 32,031 0 89,630
Payable for investment advisory fee 23,699 0 15,451
Payable for administration fee 13,471 0 9,416
Payable for trustee deferred
compensation plan 17,417 194 12,607
Other payables 45,970 10,158 50,853
------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,399,888 104,620 1,471,741
------------------------------------------------------------------------------------------------------------
NET ASSETS $ 51,891,741 $ 3,011,366 $ 34,558,067
============================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $ 36,824,221 $ 2,369,614 $ 44,326,029
(Over)/Undistributed net investment income (124,434) (7,431) (43,044)
Accumulated net realized gain (loss) on
investments and foreign currency transactions 6,793,862 448,336 (11,184,496)
Net unrealized appreciation/(depreciation)
on investments and translation of assets and
liabilities denominated in foreign currencies 8,398,092 200,847 1,459,578
------------------------------------------------------------------------------------------------------------
NET ASSETS $ 51,891,741 $ 3,011,366 $ 34,558,067
============================================================================================================
NET ASSET VALUE PER SHARE
Net Assets $ 51,891,741 $ 3,011,366 $ 34,558,067
Shares of beneficial interest outstanding 3,522,067 207,929 1,716,703
Net asset value and redemption price per share $ 14.73 $ 14.48 $ 20.13
------------------------------------------------------------------------------------------------------------
COST OF INVESTMENTS $ 44,792,663 $ 2,898,185 $ 34,181,069
============================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2973) o www.westcore.com 91
<PAGE> 94
STATEMENTS OF ASSETS AND LIABILITIES
WESTCORE BOND FUNDS
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
LONG-TERM INTERMEDIATE- COLORADO
BOND FUND TERM BOND FUND TAX-EXEMPT FUND
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash $ 0 $ 0 $ 0
Investments at value (cost - see below) 23,954,098 33,772,306 36,512,140
- see accompanying statements
Receivable for investments sold 0 0 0
Dividends and interest receivable 308,661 482,181 789,605
Receivable for fund shares subscribed 7,494 66 5,500
Receivable from investment adviser 0 0 0
Investment for trustee deferred
compensation plan 6,987 18,047 7,640
Prepaid and other assets 1,796 8,405 4,000
-----------------------------------------------------------------------------------------------------------
TOTAL ASSETS 24,279,036 34,281,005 37,318,885
-----------------------------------------------------------------------------------------------------------
LIABILITIES
Collateral received from broker for
securities lending transactions 617,502 0 0
Payable for investments purchased 0 0 0
Payable for fund shares redeemed 17,348 9,425 220,747
Payable for investment advisory fee 3,392 4,861 0
Payable for administration fee 5,737 8,404 6,919
Payable for trustee deferred
compensation plan 6,987 18,047 7,640
Other payables 31,695 32,497 29,044
-----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 682,661 73,234 264,350
-----------------------------------------------------------------------------------------------------------
NET ASSETS $ 23,596,375 $ 34,207,771 $ 37,054,535
===========================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $ 24,415,079 $ 36,777,768 $ 38,814,702
(Over)/Undistributed net investment income 13,355 18,590 15,482
Accumulated net realized gain (loss) on
investments and foreign currency transactions (24,034) (1,356,755) (595,029)
Net unrealized appreciation/(depreciation)
on investments and translation of assets and
liabilities denominated in foreign currencies (808,025) (1,231,832) (1,180,620)
-----------------------------------------------------------------------------------------------------------
NET ASSETS $ 23,596,375 $ 34,207,771 $ 37,054,535
===========================================================================================================
NET ASSET VALUE PER SHARE
Net Assets $ 23,596,375 $ 34,207,771 $ 37,054,535
Shares of beneficial interest outstanding 2,568,277 3,487,607 3,564,550
Net asset value and redemption price per share $ 9.19 $ 9.81 $ 10.40
-----------------------------------------------------------------------------------------------------------
COST OF INVESTMENTS $ 24,762,123 $ 35,004,138 $ 37,692,760
===========================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
92 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 95
STATEMENTS OF OPERATIONS
WESTCORE EQUITY GROWTH FUNDS
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
MIDCO GROWTH AND INTERNATIONAL
GROWTH FUND INCOME FUND FRONTIER FUND*
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 339,084 $ 65,391 $ 49,718
Interest 446,233 32,508 160,451
Other income 136,028 2,562 0
Foreign taxes withheld 0 0 (189)
-------------------------------------------------------------------------------------------------
TOTAL INCOME 921,345 100,461 209,980
-------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 1,759,321 94,328 133,137
Administrative fees 811,994 43,536 33,284
Transfer agent fees 265,582 37,802 11,323
Fund accounting fees and expenses 81,778 28,652 17,562
Legal fees 90,136 7,591 9,464
Printing expenses 79,403 4,893 518
Registration fees 18,155 7,945 6,929
Audit fees 19,017 13,252 5,408
Custodian fees 58,390 7,734 12,616
Insurance 39,820 1,086 22
Trustee fees and expenses 42,417 2,844 738
Other 6,447 1,048 301
-------------------------------------------------------------------------------------------------
Total expenses before waivers 3,272,460 250,711 231,302
Expenses waived by:
Investment adviser (160,709) (77,365) (61,705)
Administrators (12,129) (5,818) (3,022)
Expenses reimbursed by:
Investment adviser 0 0 0
-------------------------------------------------------------------------------------------------
NET EXPENSES 3,099,622 167,528 166,575
-------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (2,178,277) (67,067) 43,405
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized gain/(loss) from:
Investments 91,818,342 3,675,563 1,239,961
Foreign currency transactions 0 0 (248,119)
-------------- -------------- --------------
Net realized gain/(loss) 91,818,342 3,675,563 991,842
Net change in unrealized appreciation/
(depreciation) on:
Investments (3,521,938) 1,532,417 1,728,299
Translation of assets and liabilities
denominated in foreign currencies 0 0 (829,137)
-------------- -------------- --------------
Net change (3,521,938) 1,532,417 899,162
NET REALIZED AND UNREALIZED GAIN/(LOSS) 88,296,404 5,207,980 1,891,004
-------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 86,118,127 $ 5,140,913 $ 1,934,409
=================================================================================================
</TABLE>
*For the period December 15, 1999 (inception of offering) to May 31, 2000
See Notes to Financial Statements
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2973) o www.westcore.com 93
<PAGE> 96
STATEMENTS OF OPERATIONS
WESTCORE EQUITY GROWTH FUNDS (CONTINUED)
<TABLE>
<CAPTION>
WESTCORE
SMALL-CAP WESTCORE
GROWTH FUND~ SELECT FUND~
-----------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends $ 2,292 $ 29,255
Interest 229,261 183,711
Other income 0 0
-----------------------------------------------------------------------------------
TOTAL INCOME 231,553 212,966
EXPENSES
Investment advisory fees 190,455 122,497
Administrative fees 57,136 56,537
Transfer agent fees 21,323 20,555
Fund accounting fees and expenses 18,885 18,996
Legal fees 15,904 16,065
Printing expenses 2,721 2,921
Registration fees 8,923 8,923
Audit fees 5,368 5,368
Custodian fees 5,091 8,388
Insurance 65 79
Trustee fees and expenses 1,476 1,659
Other 595 593
-----------------------------------------------------------------------------------
Total expenses before waivers 327,942 262,581
Expenses waived by:
Investment adviser (76,234) (42,655)
Administrators (4,107) (3,161)
Expenses reimbursed by:
Investment adviser 0 0
-----------------------------------------------------------------------------------
NET EXPENSES 247,601 216,765
-----------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (16,048) (3,799)
-----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized gain/(loss) from:
Investments (2,390,607) 14,754,199
Foreign currency transactions 0 0
-------------- --------------
Net realized gain/(loss) (2,390,607) 14,754,199
Net change in unrealized appreciation/
(depreciation) on:
Investments (4,002,338) 1,278,508
Translation of assets and liabilities
denominated in foreign currencies 0 0
-------------- --------------
Net change (4,002,338) 1,278,508
NET REALIZED AND UNREALIZED GAIN/(LOSS) (6,392,945) 16,032,707
-----------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (6,408,993) $ 16,028,908
===================================================================================
</TABLE>
~For the period October 1, 1999 (inception of offering) to May 31, 2000
See Notes to Financial Statements
--------------------------------------------------------------------------------
94 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 97
STATEMENTS OF OPERATIONS
WESTCORE EQUITY VALUE FUNDS
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
BLUE CHIP MID-CAP SMALL-CAP
FUND OPPORTUNITY FUND OPPORTUNITY FUND
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 633,534 $ 22,682 $ 952,763
Interest 76,719 5,380 140,231
Other income 2,637 0 3,236
-----------------------------------------------------------------------------------------------------
TOTAL INCOME 712,890 28,062 1,096,230
-----------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 395,430 19,720 705,641
Administrative fees 182,506 7,888 211,692
Transfer agent fees 70,125 13,624 86,569
Fund accounting fees and expenses 29,109 26,795 31,946
Legal fees 28,812 358 28,724
Printing expenses 22,192 881 27,349
Registration fees 9,735 12,267 15,950
Audit fees 14,220 6,493 12,457
Custodian fees 12,092 3,021 37,380
Insurance 2,639 14 7,999
Trustee fees and expenses 10,332 1,304 13,339
Other 2,754 0 2,766
-----------------------------------------------------------------------------------------------------
Total expenses before waivers 779,946 92,365 1,181,812
Expenses waived by:
Investment adviser (72,951) (19,720) (250,104)
Administrators (5,487) (7,888) (13,456)
Expenses reimbursed by:
Investment adviser 0 (31,871) 0
-----------------------------------------------------------------------------------------------------
NET EXPENSES 701,508 32,886 918,252
-----------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 11,382 (4,824) 177,978
-----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized gain/(loss) from:
Investments 10,091,813 652,618 (1,200,656)
Foreign currency transactions 0 0 0
------------- ---------------- ----------------
Net realized gain/(loss) 10,091,813 652,618 (1,200,656)
Net change in unrealized appreciation/
(depreciation) on:
Investments (9,933,398) 12,335 247,201
Translation of assets and liabilities
denominated in foreign currencies 0 0 0
------------- ---------------- ----------------
Net change (9,933,398) 12,335 247,201
NET REALIZED AND UNREALIZED GAIN/(LOSS) 158,415 664,953 (953,455)
-----------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 169,797 $ 660,129 $ (775,477)
=====================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2973) o www.westcore.com 95
<PAGE> 98
STATEMENTS OF OPERATIONS
WESTCORE BOND FUNDS
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
LONG-TERM INTERMEDIATE- COLORADO
BOND FUND TERM BOND FUND TAX-EXEMPT FUND
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 0 $ 0 $ 0
Interest 1,582,367 2,649,647 1,993,646
Other income 749 0 0
------------------------------------------------------------------------------------------------
TOTAL INCOME 1,583,116 2,649,647 1,993,646
------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 100,885 169,538 202,938
Administrative fees 67,257 113,025 121,763
Transfer agent fees 31,181 27,864 26,372
Fund accounting fees and expenses 31,734 32,979 45,084
Legal fees 11,807 20,458 20,529
Printing expenses 8,062 12,429 15,868
Registration fees 8,065 11,815 2,964
Audit fees 14,177 13,289 11,101
Custodian fees 4,405 6,564 5,616
Insurance 759 3,258 3,293
Trustee fees and expenses 4,851 7,154 7,395
Other 254 878 1,542
------------------------------------------------------------------------------------------------
Total expenses before waivers 283,437 419,251 464,465
Expenses waived by:
Investment adviser (63,559) (88,407) (190,479)
Administrators (6,174) (8,616) (17,243)
Expenses reimbursed by:
Investment adviser 0 0 0
------------------------------------------------------------------------------------------------
NET EXPENSES 213,704 322,228 256,743
------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 1,369,412 2,327,419 1,736,903
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized gain/(loss) from:
Investments 49,894 (247,663) (557,097)
Foreign currency transactions 0 0 N/A
------------- -------------- --------------
Net realized gain/(loss) 49,894 (247,663) (557,097)
Net change in unrealized appreciation/
(depreciation) on:
Investments (1,442,370) (1,479,300) (1,819,403)
Translation of assets and liabilities
denominated in foreign currencies 0 0 N/A
------------- -------------- --------------
Net change (1,442,370) (1,479,300) (1,819,403)
NET REALIZED AND UNREALIZED GAIN/(LOSS) (1,392,476) (1,726,963) (2,376,500)
------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (23,064) $ 600,456 $ (639,597)
================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
96 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 99
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE MIDCO GROWTH FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 28, 1999
----------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ (2,178,277) $ (2,697,880)
Net realized gain/(loss) 91,818,342 120,340,722
Change in unrealized net appreciation or depreciation (3,521,938) (76,064,316)
----------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 86,118,127 41,578,526
----------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income 0 0
From net realized gain from investment transactions (93,763,342) (59,679,953)
----------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (93,763,342) (59,679,953)
----------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 207,679,920 844,280,146
Shares issued in reinvestment of dividends and distributions 83,009,085 58,662,082
----------------------------------------------------------------------------------------------------
290,689,005 902,942,228
Shares redeemed (328,613,823) (1,172,209,867)
----------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions (37,924,818) (269,267,639)
----------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (45,570,033) (287,369,066)
NET ASSETS:
Beginning of period 277,924,174 565,293,240
----------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of ($69,691) and ($69,691), respectively) $ 232,354,141 $ 277,924,174
====================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2973) o www.westcore.com 97
<PAGE> 100
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 28, 1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ (67,067) $ 3,015
Net realized gain/(loss) 3,675,563 1,309,173
Change in unrealized net appreciation or depreciation 1,532,417 (724,121)
-----------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 5,140,913 588,067
-----------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (4,043) (11,775)
From net realized gain from investment transactions (2,081,014) (2,111,698)
-----------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (2,085,057) (2,123,473)
-----------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 3,770,052 3,628,138
Shares issued in reinvestment of dividends and distributions 1,990,011 1,946,533
-----------------------------------------------------------------------------------------------------
5,760,063 5,574,671
Shares redeemed (5,447,700) (6,410,593)
-----------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 312,363 (835,922)
-----------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 3,368,219 (2,371,328)
NET ASSETS:
Beginning of period 12,788,765 15,160,093
-----------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of ($21,236) and ($207,993), respectively) $ 16,156,984 $ 12,788,765
=====================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
98 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 101
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE INTERNATIONAL FRONTIER FUND
<TABLE>
<CAPTION>
FOR THE PERIOD
DECEMBER 15, 1999
(INCEPTION) TO
MAY 31, 2000
-------------------------------------------------------------------------------------
<S> <C>
OPERATIONS
Net investment income/(loss) $ 43,405
Net realized gain/(loss) 991,842
Change in unrealized net appreciation or depreciation 899,162
-------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 1,934,409
-------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (15,426)
From net realized gain from investment transactions 0
-------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (15,426)
-------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 36,302,581
Shares issued in reinvestment of dividends and distributions 15,247
-------------------------------------------------------------------------------------
36,317,828
Shares redeemed (16,624,098)
-------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 19,693,730
-------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 21,612,713
NET ASSETS:
Beginning of period 0
-------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of $27,979) $ 21,612,713
=====================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2973) o www.westcore.com 99
<PAGE> 102
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE SMALL-CAP GROWTH FUND
<TABLE>
<CAPTION>
FOR THE PERIOD
OCTOBER 1, 1999
(INCEPTION) TO
MAY 31, 2000
--------------------------------------------------------------------------------------
<S> <C>
OPERATIONS
Net investment income/(loss) $ (16,048)
Net realized gain/(loss) (2,390,607)
Change in unrealized net appreciation or depreciation (4,002,338)
--------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (6,408,993)
--------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (30,268)
From net realized gain from investment transactions 0
--------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (30,268)
-------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 89,198,105
Shares issued in reinvestment of dividends and distributions 30,357
--------------------------------------------------------------------------------------
89,228,462
Shares redeemed (61,017,720)
--------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 28,210,742
-------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 21,771,481
NET ASSETS:
Beginning of period 0
--------------------------------------------------------------------------------------
End of period (including (over)/undistributed net
investment income of ($28,043)) $ 21,771,481
======================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
100 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 103
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE SELECT FUND
<TABLE>
<CAPTION>
FOR THE PERIOD
OCTOBER 1, 1999
(INCEPTION) TO
MAY 31, 2000
--------------------------------------------------------------------------------------
<S> <C>
OPERATIONS
Net investment income/(loss) $ (3,799)
Net realized gain/(loss) 14,754,199
Change in unrealized net appreciation or depreciation 1,278,508
--------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 16,028,908
--------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (14,327)
From net realized gain from investment transactions (1,118,334)
--------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (1,132,661)
--------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 47,751,567
Shares issued in reinvestment of dividends and distributions 1,125,266
--------------------------------------------------------------------------------------
48,876,833
Shares redeemed (27,735,709)
--------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 21,141,124
--------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 36,037,371
NET ASSETS:
Beginning of period 0
--------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of ($18,126)) $ 36,037,371
======================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2973) o www.westcore.com 101
<PAGE> 104
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE BLUE CHIP FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 28, 1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 11,382 $ 128,184
Net realized gain/(loss) 10,091,813 9,307,773
Change in unrealized net appreciation or depreciation (9,933,398) (4,848,842)
-----------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 169,797 4,587,115
-----------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income 0 (245,375)
From net realized gain from investment transactions (9,192,788) (9,695,337)
-----------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (9,192,788) (9,940,712)
-----------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 20,217,722 36,867,428
Shares issued in reinvestment of dividends and distributions 8,437,817 9,102,447
-----------------------------------------------------------------------------------------------------
28,655,539 45,969,875
Shares redeemed (37,094,755) (43,739,132)
-----------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions (8,439,216) 2,230,743
-----------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (17,462,207) (3,122,854)
NET ASSETS:
Beginning of period 69,353,948 72,476,802
-----------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of ($124,434) and ($135,816), respectively) $51,891,741 $ 69,353,948
=====================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
102 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 105
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE MID-CAP OPPORTUNITY FUND
<TABLE>
<CAPTION>
FOR THE PERIOD
OCTOBER 1, 1998
YEAR ENDED (INCEPTION) TO
MAY 31, 2000 MAY 28, 1999
------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ (4,824) $ (1,839)
Net realized gain/(loss) 652,618 (204,282)
Change in unrealized net appreciation or depreciation 12,335 444,179
------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 660,129 238,058
------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (768) 0
From net realized gain from investment transactions 0 0
------------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (768) 0
------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares issued in connection with the conversion of a
separately managed investment partnership (Note 5) 0 2,211,243
Shares sold 414,821 410,700
Shares issued in reinvestment of dividends and distributions 751 0
------------------------------------------------------------------------------------------------------
415,572 2,621,943
Shares redeemed (648,796) (274,772)
------------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions (233,224) 2,347,171
------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 426,137 2,585,229
NET ASSETS:
Beginning of period 2,585,229 0
------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of ($7,431) and ($1,839), respectively) $ 3,011,366 $ 2,585,229
======================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
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<PAGE> 106
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE SMALL-CAP OPPORTUNITY FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 28, 1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 177,978 $ 320,141
Net realized gain/(loss) (1,200,656) (9,932,871)
Change in unrealized net appreciation or depreciation 247,201 (7,781,013)
-----------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (775,477) (17,393,743)
-----------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (327,185) (214,664)
From net realized gain from investment transactions 0 (5,243,231)
-----------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (327,185) (5,457,895)
-----------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 44,257,042 126,319,438
Shares issued in reinvestment of dividends and distributions 274,641 5,052,143
-----------------------------------------------------------------------------------------------------
44,531,683 131,371,581
Shares redeemed (97,505,561) (80,954,679)
-----------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions (52,973,878) 50,416,902
-----------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (54,076,540) 27,565,264
NET ASSETS:
Beginning of period 88,634,607 61,069,343
-----------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of ($43,044) and $76,006, respectively) $ 34,558,067 $ 88,634,607
=====================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
104 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 107
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE LONG-TERM BOND FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 28, 1999
---------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 1,369,412 $ 1,153,879
Net realized gain/(loss) 49,894 249,152
Change in unrealized net appreciation or depreciation (1,442,370) (1,311,576)
---------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (23,064) 91,455
---------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (1,366,554) (1,159,592)
From net realized gain from investment transactions (228,730) (125,218)
---------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (1,595,284) (1,284,810)
---------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 8,926,578 9,688,176
Shares issued in reinvestment of dividends and distributions 1,541,868 1,237,129
---------------------------------------------------------------------------------------------------
10,468,446 10,925,305
Shares redeemed (7,051,476) (6,400,461)
---------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions 3,416,970 4,524,844
---------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 1,798,622 3,331,489
NET ASSETS:
Beginning of period 21,797,753 18,466,264
---------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of $13,355 and $10,497 respectively) $ 23,596,375 $ 21,797,753
===================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 105
<PAGE> 108
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE INTERMEDIATE-TERM BOND FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 28, 1999
---------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 2,327,419 $ 2,599,872
Net realized gain/(loss) (247,663) 625,934
Change in unrealized net appreciation or depreciation (1,479,300) (1,434,927)
---------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 600,456 1,790,879
---------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (2,328,936) (2,621,050)
From net realized gain from investment transactions 0 0
---------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (2,328,936) (2,621,050)
---------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 25,580,496 21,346,730
Shares issued in reinvestment of dividends and distributions 2,072,550 2,260,587
---------------------------------------------------------------------------------------------------
27,653,046 23,607,317
Shares redeemed (32,872,265) (31,780,894)
---------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions (5,219,219) (8,173,577)
---------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (6,947,699) (9,003,748)
NET ASSETS:
Beginning of period 41,155,470 50,159,218
---------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of $18,590 and $20,107, respectively) $ 34,207,771 $ 41,155,470
===================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
106 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 109
STATEMENTS OF CHANGES IN NET ASSETS
WESTCORE COLORADO TAX-EXEMPT FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
MAY 31, 2000 MAY 28, 1999
---------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 1,736,903 $ 1,635,554
Net realized gain/(loss) (557,097) 7,767
Change in unrealized net appreciation or depreciation (1,819,403) (391,865)
---------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations (639,597) 1,251,456
---------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
From net investment income (1,736,992) (1,638,237)
From net realized gain from investment transactions 0 0
---------------------------------------------------------------------------------------------------
Decrease in net assets from dividends and distributions (1,736,992) (1,638,237)
---------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (NOTE 2)
Shares sold 9,822,900 20,250,156
Shares issued in reinvestment of dividends and distributions 1,327,388 1,257,593
---------------------------------------------------------------------------------------------------
11,150,288 21,507,749
Shares redeemed (17,224,682) (7,116,914)
---------------------------------------------------------------------------------------------------
Net increase/(decrease) from beneficial interest transactions (6,074,394) 14,390,835
---------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (8,450,983) 14,004,054
NET ASSETS:
Beginning of period 45,505,518 31,501,464
---------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of $15,482 and $15,571, respectively) $ 37,054,535 $ 45,505,518
===================================================================================================
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 107
<PAGE> 110
FINANCIAL HIGHLIGHTS
WESTCORE MIDCO GROWTH FUND
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT THE
PERIOD INDICATED.
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
MAY 31,
2000
--------------------------------------------------------------------------------
<S> <C>
Net asset value - beginning of the period $20.03
--------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.17)
Net realized and unrealized gain/(loss) 7.08
--------------------------------------------------------------------------------
Total income/(loss) from investment operations 6.91
--------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.00)
Distributions from net realized gain (8.85)
--------------------------------------------------------------------------------
Total distributions (8.85)
--------------------------------------------------------------------------------
Net asset value - end of period $18.09
================================================================================
Total return 35.63%
================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $232,354
================================================================================
Ratio of expenses to average net assets 1.15%
================================================================================
Ratio of expenses to average net assets without fee waivers 1.21%
================================================================================
Ratio of net investment income/(loss) to average net assets (0.81)%
================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.87)%
================================================================================
Portfolio turnover rate(1) 117.65%
================================================================================
</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 31, 2000 were $299,173,753 and
$411,389,291, respectively.
(2) Annualized.
* For the period June 1, 1995 to September 30, 1995.
See Notes to Financial Statements
--------------------------------------------------------------------------------
108 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 111
<TABLE>
<CAPTION>
INSTITUTIONAL RETAIL
SHARES SHARES
------- -------
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 28, MAY 29, MAY 30, MAY 31, MAY 31,
1999 1998 1997 1996 1996*
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of the period $20.54 $20.92 $22.90 $17.12 $17.10
-----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.23) (0.17) (0.15) (0.08) (0.01)
Net realized and unrealized gain/(loss) 2.22 3.03 1.19 6.58 3.12
-----------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 1.99 2.86 1.04 6.50 3.11
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions from net realized gain (2.50) (3.24) (3.02) (0.72) (0.00)
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions (2.50) (3.24) (3.02) (0.72) (0.00)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $20.03 $20.54 $20.92 $22.90 $20.21
===================================================================================================================================
Total return 11.87% 15.10% 5.27% 38.62% 18.19%
===================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $277,924 $565,293 $590,008 $656,490 $30,827
===================================================================================================================================
Ratio of expenses to average net assets 1.15% 1.13% 1.14% 1.08% 1.16%(2)
===================================================================================================================================
Ratio of expenses to average net assets without fee waivers 1.19% 1.13% 1.14% 1.10% 1.17%(2)
===================================================================================================================================
Ratio of net investment income/(loss) to average net assets (0.63)% (0.71)% (0.70)% (0.42)% (0.24)%(2)
===================================================================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.68)% (0.71)% (0.71)% (0.44)% (0.26)%(2)
===================================================================================================================================
Portfolio turnover rate(1) 116.46% 75.79% 60.78% 62.83% 62.83%
===================================================================================================================================
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 109
<PAGE> 112
FINANCIAL HIGHLIGHTS
WESTCORE GROWTH AND INCOME FUND
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT THE
PERIOD INDICATED.
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
MAY 31,
2000
<S> <C>
--------------------------------------------------------------------------------
Net asset value - beginning of the period $12.30
--------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.06)
Net realized and unrealized gain/(loss) 5.27
--------------------------------------------------------------------------------
Total income/(loss) from investment operations 5.21
--------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.01)
Distributions from net realized gain (2.26)
--------------------------------------------------------------------------------
Total distributions (2.27)
--------------------------------------------------------------------------------
Net asset value - end of period $15.24
--------------------------------------------------------------------------------
Total return 44.88%
===============================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $16,157
----------------------------------------------------------------------------
Ratio of expenses to average net assets 1.15%
----------------------------------------------------------------------------
Ratio of expenses to average net assets without fee waivers 1.73%
===============================================================================
Ratio of net investment income/(loss) to average net assets (0.46)%
===============================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers (1.04)%
===============================================================================
Portfolio turnover rate(1) 81.19%
===============================================================================
</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 31, 2000 were $11,301,169 and
$13,655,734, 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
--------------------------------------------------------------------------------
110 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 113
<TABLE>
<CAPTION>
INSTITUTIONAL RETAIL
SHARES SHARES
------ ------
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 28, MAY 29, MAY 30, MAY 31, MAY 31,
1999(3) 1998 1997 1996 1996*
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value - Beginning Of The Period $13.74 $13.03 $12.32 $10.50 $10.51
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.00(4) 0.01 0.07 0.15 0.05
Net realized and unrealized gain/(loss) 0.66 2.54 2.19 2.57 0.72
------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.66 2.55 2.26 2.72 0.77
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.01) (0.07) (0.11) (0.24) (0.06)
Distributions from net realized gain (2.09) (1.77) (1.44) (0.66) (0.00)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions (2.10) (1.84) (1.55) (0.90) (0.06)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $12.30 $13.74 $13.03 $12.32 $11.22
====================================================================================================================================
Total return 6.25% 20.74% 19.71% 27.25% 7.35%
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $12,789 $15,160 $20,725 $25,387 $3,921
====================================================================================================================================
Ratio of expenses to average net assets 1.15% 1.15% 1.15% 1.22% 1.58%(2)
====================================================================================================================================
Ratio of expenses to average net assets without fee waivers 1.75% 1.71% 1.56% 1.51% 1.61%(2)
====================================================================================================================================
Ratio of net investment income/(loss) to average net assets 0.02% 0.40% 0.75% 1.34% 1.40%(2)
====================================================================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.58)% (0.16)% 0.33% 1.05% 1.37%(2)
====================================================================================================================================
Portfolio turnover rate(1) 72.59% 41.40% 39.80% 88.31% 88.31%
====================================================================================================================================
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 111
See Notes to Financial Statements
<PAGE> 114
FINANCIAL HIGHLIGHTS
WESTCORE INTERNATIONAL FRONTIER FUND
WESTCORE SMALL-CAP GROWTH FUND
WESTCORE SELECT FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated.
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
INTERNATIONAL FRONTIER FUND SMALL-CAP GROWTH FUND SELECT FUND
--------------------------- --------------------- -----------
FOR THE FOR THE FOR THE
PERIOD ENDED PERIOD ENDED PERIOD ENDED
MAY 31, MAY 31, MAY 31,
2000* 2000** 2000**
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value - beginning of the period $10.00 $10.00 $10.00
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.03 (0.01) (0.00)(6)
Net realized and unrealized gain/(loss) 1.58 7.03 13.29
------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 1.61 7.02 13.29
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.01) (0.03) (0.01)
Distributions from net realized gain (0.00) (0.00) (0.80)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.01) (0.03) (0.81)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $11.60 $16.99 $22.48
====================================================================================================================================
Total return 16.12% 70.11% 134.33%
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $21,613 $21,771 $36,037
====================================================================================================================================
Ratio of expenses to average net assets 1.50%(2) 1.30%(2) 1.15%(2)
====================================================================================================================================
Ratio of expenses to average net assets without fee waivers 2.08%(2) 1.72%(2) 1.39%(2)
====================================================================================================================================
Ratio of net investment income/(loss) to average net assets 0.39%(2) (0.08)%(2) (0.02)%(2)
====================================================================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.19)%(2) (0.50)%(2) (0.26)%(2)
====================================================================================================================================
Portfolio turnover rate(1) 93.31%(3) 149.88%(4) 1142.65%(5)
====================================================================================================================================
</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.
(2) Annualized.
(3) Purchases and sales of investment securities (excluding short-term
securities) for the period ended May 31, 2000 were $32,280,702 and
$14,204,812, respectively.
(4) Purchases and sales of investment securities (excluding short-term
securities) for the period ended May 31, 2000 were $57,669,714 and
$31,429,598, respectively.
(5) Purchases and sales of investment securities (excluding short-term
securities) for the period ended May 31, 2000 were $267,570,764 and
$250,392,609, respectively.
(6) Less than ($.005) per share.
* For the period December 15, 1999 (inception of offering) to May 31,
2000.
** For the period October 1, 1999 (inception of offering) to May 31,
2000.
See Notes to Financial Statements
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 112
<PAGE> 115
WESTCORE BLUE CHIP FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated.
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
MAY 31,
2000
--------------------------------------------------------------------------------
<S> <C>
Net asset value - beginning of the period $17.23
--------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.00
Net realized and unrealized gain/(loss) 0.02
--------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.02
--------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.00)
Distributions from net realized gain (2.52)
--------------------------------------------------------------------------------
Total distributions (2.52)
--------------------------------------------------------------------------------
Net asset value - end of period $14.73
================================================================================
Total return 1.01%
================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $51,892
================================================================================
Ratio of expenses to average net assets 1.15%
================================================================================
Ratio of expenses to average net assets without fee waivers 1.28%
================================================================================
Ratio of net investment income/(loss) to average net assets 0.02%
================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.11)%
================================================================================
Portfolio turnover rate(1) 73.95%
================================================================================
</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 31, 2000 were $43,443,983 and
$60,894,183, respectively.
See Notes to Financial Statements
--------------------------------------------------------------------------------
113 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 116
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 28, MAY 29, MAY 30, MAY 31,
1999 1998 1997 1996
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value - beginning of the period $18.81 $18.15 $17.41 $14.70
----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.04 0.13 0.19 0.25
Net realized and unrealized gain/(loss) 1.07 4.66 3.65 4.03
----------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 1.11 4.79 3.84 4.28
----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.07) (0.14) (0.22) (0.27)
Distributions from net realized gain (2.62) (3.99) (2.88) (1.30)
----------------------------------------------------------------------------------------------------------------------------
Total distributions (2.69) (4.13) (3.10) (1.57)
----------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $17.23 $18.81 $18.15 $17.41
============================================================================================================================
Total return 7.42% 29.53% 24.28% 30.48%
============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $69,354 $72,477 $66,450 $68,286
============================================================================================================================
Ratio of expenses to average net assets 1.15% 1.15% 1.15% 1.10%
============================================================================================================================
Ratio of expenses to average net assets without fee waivers 1.25% 1.23% 1.21% 1.25%
============================================================================================================================
Ratio of net investment income/(loss) to average net assets 0.19% 0.60% 1.02% 1.52%
============================================================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers 0.09% 0.52% 0.97% 1.38%
============================================================================================================================
Portfolio turnover rate(1) 73.39% 48.50% 43.47% 65.11%
============================================================================================================================
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 114
<PAGE> 117
FINANCIAL HIGHLIGHTS
WESTCORE MID-CAP OPPORTUNITY FUND
Selected data for a share of beneficial interest outstanding throughout the
period indicated.
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
MAY 31, MAY 28,
2000 1999*
---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value - beginning of the period $11.05 $10.00
---------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.02) (0.01)
Net realized and unrealized gain/(loss) 3.45 1.06
---------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 3.43 1.05
---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.00)(3) (0.00)
Distributions from net realized gain (0.00) (0.00)
---------------------------------------------------------------------------------------------------------------
Total distributions (0.00) (0.00)
---------------------------------------------------------------------------------------------------------------
Net asset value - end of period $14.48 $11.05
===============================================================================================================
Total return 31.08% 10.50%
===============================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $3,011 $2,585
===============================================================================================================
Ratio of expenses to average net assets 1.25% 1.25%(2)
===============================================================================================================
Ratio of expenses to average net assets without fee waivers 3.51% 5.33%(2)
===============================================================================================================
Ratio of net investment income/(loss) to average net assets (0.18)% (0.11)%(2)
===============================================================================================================
Ratio of net investment income/(loss) to average net assets without fee waive (2.44)% (4.19)%(2)
===============================================================================================================
Portfolio turnover rate(1) 159.34% 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 31, 2000 were $4,048,606 and
$4,309,880, respectively.
(2) Annualized.
(3) Less than ($.005) per share.
* For the period October 1, 1998 (inception of offering) to May 28,
1999.
See Notes to Financial Statements
--------------------------------------------------------------------------------
115 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 118
FINANCIAL HIGHLIGHTS
WESTCORE SMALL-CAP OPPORTUNITY FUND
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT THE
PERIOD INDICATED.
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
MAY 31,
2000
----------------------------------------------------------------------------
<S> <C>
Net asset value - beginning of the period $ 20.18
----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.03
Net realized and unrealized gain/(loss) 0.01
----------------------------------------------------------------------------
Total income/(loss) from investment operations 0.04
----------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.09)
Distributions from net realized gain (0.00)
----------------------------------------------------------------------------
Total distributions (0.09)
----------------------------------------------------------------------------
Net asset value - end of period $ 20.13
============================================================================
Total return 0.20%
============================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 34,558
============================================================================
Ratio of expenses to average net assets 1.30%
============================================================================
Ratio of expenses to average net assets without fee waivers 1.67%
============================================================================
Ratio of net investment income/(loss) to average net assets 0.25%
============================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.12)%
============================================================================
Portfolio turnover rate(1) 99.84%
============================================================================
</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 31, 2000 were $66,836,764 and $116,207,645, respectively.
(2) Annualized.
* For the period June 1, 1995 to September 30, 1995.
See Notes to Financial Statements
--------------------------------------------------------------------------------
116 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 119
<TABLE>
<CAPTION>
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) (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 (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>
INSTITUTIONAL SHARES RETAIL SHARES
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
MAY 31, MAY 31,
1996 1996*
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value - beginning of the period $ 15.95 $ 15.95
----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.04 0.01
Net realized and unrealized gain/(loss) 5.86 2.25
----------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 5.90 2.26
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.06) (0.02)
Distributions from net realized gain (0.44) (0.00)
----------------------------------------------------------------------------------------------------
Total distributions (0.50) (0.02)
----------------------------------------------------------------------------------------------------
Net asset value - end of period $ 21.35 $ 18.19
====================================================================================================
Total return 37.49% 14.14%
====================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 23,951 $ 1,072
====================================================================================================
Ratio of expenses to average net assets 1.30% 1.48%(2)
====================================================================================================
Ratio of expenses to average net assets without fee waivers 2.20% 2.53%(2)
====================================================================================================
Ratio of net investment income/(loss) to average net assets 0.24% 0.16%(2)
====================================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers (0.67)% (0.89)%(2)
====================================================================================================
Portfolio turnover rate(1) 47.83% 47.83%
====================================================================================================
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 117
<PAGE> 120
FINANCIAL HIGHLIGHTS
WESTCORE LONG-TERM BOND FUND
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT THE
PERIOD INDICATED.
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
MAY 31,
2000
----------------------------------------------------------------------------
<S> <C>
Net asset value - beginning of the period $ 9.87
----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.58
Net realized and unrealized gain/(loss) (0.58)
----------------------------------------------------------------------------
Total income/(loss) from investment operations 0.00
----------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.58)
Distributions from net realized gain (0.10)
----------------------------------------------------------------------------
Total distributions (0.68)
----------------------------------------------------------------------------
Net asset value - end of period $ 9.19
============================================================================
Total return 0.11%
============================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 23,596
============================================================================
Ratio of expenses to average net assets 0.95%
============================================================================
Ratio of expenses to average net assets without fee waivers 1.26%
============================================================================
Ratio of net investment income/(loss) to average net assets 6.11%
============================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers 5.80%
============================================================================
Portfolio turnover rate(1) 36.02%
============================================================================
</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 31, 2000 were $10,617,290 and $7,773,879, respectively.
See Notes to Financial Statements
--------------------------------------------------------------------------------
118 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 121
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MAY 28, MAY 29,
1999 1998
-----------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value - beginning of the period $ 10.36 $ 9.67
-----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.57 0.60
Net realized and unrealized gain/(loss) (0.43) 0.96
-----------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.14 1.56
-----------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.57) (0.60)
Distributions from net realized gain (0.06) (0.27)
-----------------------------------------------------------------------------------------------
Total distributions (0.63) (0.87)
-----------------------------------------------------------------------------------------------
Net asset value - end of period $ 9.87 $ 10.36
===============================================================================================
Total return 1.21% 16.63%
===============================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 21,798 $ 18,466
===============================================================================================
Ratio of expenses to average net assets 0.95% 0.95%
===============================================================================================
Ratio of expenses to average net assets without fee waivers 1.22% 1.23%
===============================================================================================
Ratio of net investment income/(loss) to average net assets 5.47% 5.87%
===============================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers 5.21% 5.58%
===============================================================================================
Portfolio turnover rate(1) 15.97% 11.05%
===============================================================================================
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MAY 30, MAY 31,
1997 1996
-----------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value - beginning of the period $ 9.59 $ 9.87
-----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.62 0.61
Net realized and unrealized gain/(loss) 0.26 (0.27)
-----------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.88 0.34
-----------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.63) (0.62)
Distributions from net realized gain (0.17) (0.00)
-----------------------------------------------------------------------------------------------
Total distributions (0.80) (0.62)
-----------------------------------------------------------------------------------------------
Net asset value - end of period $ 9.67 $ 9.59
===============================================================================================
Total return 9.40% 3.41%
===============================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 20,160 $ 25,070
===============================================================================================
Ratio of expenses to average net assets 0.95% 0.90%
===============================================================================================
Ratio of expenses to average net assets without fee waivers 1.15% 1.07%
===============================================================================================
Ratio of net investment income/(loss) to average net assets 6.37% 6.07%
===============================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers 6.18% 5.90%
===============================================================================================
Portfolio turnover rate(1) 27.76% 33.10%
===============================================================================================
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 119
<PAGE> 122
FINANCIAL HIGHLIGHTS
WESTCORE INTERMEDIATE-TERM BOND FUND
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT THE
PERIOD INDICATED.
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
MAY 31,
2000
----------------------------------------------------------------------------
<S> <C>
Net asset value - beginning of the period $ 10.27
----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.63
Net realized and unrealized gain/(loss) (0.46)
----------------------------------------------------------------------------
Total income/(loss) from investment operations 0.17
----------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.63)
Distributions from net realized gain (0.00)
----------------------------------------------------------------------------
Total distributions (0.63)
----------------------------------------------------------------------------
Net asset value - end of period $ 9.81
============================================================================
Total return 1.67%
============================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 34,208
============================================================================
Ratio of expenses to average net assets 0.85%
============================================================================
Ratio of expenses to average net assets without fee waivers 1.11%
============================================================================
Ratio of net investment income/(loss) to average net assets 6.18%
============================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers 5.92%
============================================================================
Portfolio turnover rate(1) 37.26%
============================================================================
</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 31, 2000 were $13,402,994 and $18,326,477, respectively.
(2) Annualized.
* For the period June 1, 1995 to September 30, 1995.
See Notes to Financial Statements
--------------------------------------------------------------------------------
120 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 123
<TABLE>
<CAPTION>
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) (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 (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>
INSTITUTIONAL SHARES RETAIL SHARES
-------------------- -------------
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
MAY 31, MAY 31,
1996 1996*
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value - beginning of the period $ 10.27 $ 10.27
---------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.60 0.20
Net realized and unrealized gain/(loss) (0.17) 0.04
---------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.43 0.24
---------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.60) (0.21)
Distributions from net realized gain (0.00) (0.00)
---------------------------------------------------------------------------------------------------
Total distributions (0.60) (0.21)
---------------------------------------------------------------------------------------------------
Net asset value - end of period $ 10.10 $ 10.30
===================================================================================================
Total return 4.26% 2.34%
===================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 83,039 $ 2,781
===================================================================================================
Ratio of expenses to average net assets 0.81% 0.95%(2)
===================================================================================================
Ratio of expenses to average net assets without fee waivers 0.92% 0.97%(2)
===================================================================================================
Ratio of net investment income/(loss) to average net assets 5.78% 5.74%(2)
===================================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers 5.67% 5.72%(2)
===================================================================================================
Portfolio turnover rate(1) 71.97% 71.97%
===================================================================================================
</TABLE>
--------------------------------------------------------------------------------
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<PAGE> 124
FINANCIAL HIGHLIGHTS
WESTCORE COLORADO TAX-EXEMPT FUND
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT THE
PERIOD INDICATED.
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
MAY 31,
2000
----------------------------------------------------------------------------
<S> <C>
Net asset value - beginning of the period $ 11.01
----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.46
Net realized and unrealized gain/(loss) (0.61)
----------------------------------------------------------------------------
Total income/(loss) from investment operations (0.15)
----------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.46)
Distributions from net realized gain (0.00)
----------------------------------------------------------------------------
Total distributions (0.46)
----------------------------------------------------------------------------
Net asset value - end of period $ 10.40
============================================================================
Total return (1.36)%
============================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 37,055
============================================================================
Ratio of expenses to average net assets 0.63%
============================================================================
Ratio of expenses to average net assets without fee waivers 1.14%
============================================================================
Ratio of net investment income/(loss) to average net assets 4.28%
============================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers 3.77%
============================================================================
Portfolio turnover rate(1) 19.76%
============================================================================
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding
securities with a maturity date of one year or less at the time of
acquisition) for a period and dividing it by the monthly average of the
market value of such securities during the period. Purchases and sales of
investment securities (excluding short-term securities) for the period
ended May 31, 2000 were $7,627,019 and $14,052,638, respectively.
See Notes to Financial Statements
--------------------------------------------------------------------------------
122 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 125
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 28, MAY 29, MAY 30, MAY 31,
1999 1998 1997 1996
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value - beginning of the period $ 11.06 $ 10.78 $ 10.61 $ 10.70
----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.47 0.50 0.50 0.52
Net realized and unrealized gain/(loss) (0.05) 0.28 0.17 (0.10)
----------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from investment operations 0.42 0.78 0.67 0.42
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from net investment income (0.47) (0.50) (0.50) (0.51)
Distributions from net realized gain (0.00) (0.00) (0.00) (0.00)
----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.47) (0.50) (0.50) (0.51)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $ 11.01 $ 11.06 $ 10.78 $ 10.61
==================================================================================================================================
Total return 3.80% 7.32% 6.46% 3.97%
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 45,506 $ 31,501 $ 21,348 $ 13,922
==================================================================================================================================
Ratio of expenses to average net assets 0.53% 0.50% 0.50% 0.44%
==================================================================================================================================
Ratio of expenses to average net assets without fee waivers 1.09% 1.17% 1.21% 1.43%
==================================================================================================================================
Ratio of net investment income/(loss) to average net assets 4.21% 4.54% 4.73% 4.87%
==================================================================================================================================
Ratio of net investment income/(loss) to average net assets
without fee waivers 3.65% 3.87% 4.02% 3.88%
==================================================================================================================================
Portfolio turnover rate(1) 12.12% 24.94% 30.78% 10.23%
==================================================================================================================================
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 123
<PAGE> 126
NOTES TO FINANCIAL STATEMENTS
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 International
Frontier, Westcore Small-Cap Growth, Westcore Select, 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. Foreign securities are valued at the closing price on
the principal stock exchange on which they are
--------------------------------------------------------------------------------
124 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 127
NOTES TO FINANCIAL STATEMENTS
traded. In the event that closing prices are not available for foreign
securities, prices will be obtained from the principal stock exchange at or
prior to the close of the New York Stock Exchange. London closing quotes for
exchange rates are used to convert foreign security values into U.S. dollars.
Forward foreign currency contracts are valued based on the closing prices of the
foreign currency contract rates in the London foreign exchange markets on a
daily basis as provided by a reliable pricing vendor.
FOREIGN SECURITIES - All of the Funds, except the Westcore Colorado
Tax-Exempt Fund, may invest at least a portion of their assets in foreign
securities. In the event that a Fund executes a foreign security transaction,
the Fund will enter into a forward foreign currency contract to settle the
foreign security transaction. Foreign securities may carry more risk than U.S.
securities, such as political, market and currency risks.
The accounting records of the Funds are maintained in U.S. dollars. Prices
of securities denominated in foreign currencies are translated into U.S. dollars
at the closing rates of exchange. Amounts related to the purchase and sale of
foreign securities and investment income are translated at the rates of exchange
prevailing on the respective dates of such transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Funds' Statements of Operations.
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 31, 2000 the
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 approximately $6,800,000, $1,100,000 and $82,000
respectively, which will expire through 2008.
The Westcore Small-Cap Growth, Westcore Small-Cap Opportunity, Westcore
Long-Term Bond, Westcore Intermediate-Term Bond and Westcore Colorado Tax-Exempt
Funds intend to elect to defer to their fiscal year ending May 31, 2001,
approximately $609,000, $3,400,000, $1,300, $217,000 and $510,000 of losses,
respectively, recognized during the period November 1, 1999 to May 31, 2000.
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 125
<PAGE> 128
NOTES TO FINANCIAL STATEMENTS
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 31, 2000, $18,273 and $30,157 for the Westcore Small-Cap Growth
and Westcore Small-Cap Opportunity Funds, respectively, have been reclassified
to paid-in-capital to reflect a post-December net investment loss which may not
be offset against capital gains or carried forward for tax purposes. In
addition, $2,178,277 and $257,867 for the Westcore MIDCO Growth and Westcore
Growth and Income Funds, respectively, have been reclassified to accumulated net
realized gain (loss) on investments to reflect an accumulated net investment
loss which was offset against short-term capital gains. The calculation of net
investment income in the Financial Highlights excludes these adjustments.
DISTRIBUTIONS - Distributions of net investment income, if any, are made
annually for the Westcore MIDCO Growth, Westcore International Frontier,
Westcore Small-Cap Growth and Westcore Select Funds, 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 are expensed as incurred.
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
--------------------------------------------------------------------------------
126 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 129
NOTES TO FINANCIAL STATEMENTS
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 31, 2000, the value
of securities loaned of the Westcore MIDCOGrowth, Westcore Growth and Income,
Westcore Blue Chip, and Westcore Long-Term Bond Funds amount to $41,556,131,
$26,350, $1,220,869 and $556,640, respectively. The value of collateral of the
Westcore MIDCO Growth, Westcore Growth and Income, Westcore Blue Chip and
Westcore Long-Term Bond Funds amounts to $42,635,584, $27,453, $1,267,301 and
$617,500, 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,
accretion of discounts and income earned on money market funds, 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.
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 127
<PAGE> 130
NOTES TO FINANCIAL STATEMENTS
2. SHARES OF BENEFICIAL INTEREST
On May 31, 2000, there was an unlimited number of no par value shares of
beneficial interest authorized for each Fund. Transactions in shares of
beneficial interest were as follows:
WESTCORE EQUITY GROWTH FUNDS
WESTCORE MIDCO GROWTH FUND
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
MAY 31, 2000 MAY 28, 1999
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 9,954,344 43,718,217
Shares issued as reinvestment of dividends and distributions 4,713,747 3,448,682
------------------------------------------------------------------------------------------------------
Total 14,668,091 47,166,899
Shares redeemed (15,698,064) (60,812,161)
------------------------------------------------------------------------------------------------------
Net decrease in shares (1,029,973) (13,645,262)
======================================================================================================
</TABLE>
WESTCORE GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
MAY 31, 2000 MAY 28, 1999
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 271,356 283,005
Shares issued as reinvestment of dividends and distributions 148,508 165,621
------------------------------------------------------------------------------------------------------
Total 419,864 448,626
Shares redeemed (399,393) (512,077)
------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares 20,471 (63,451)
======================================================================================================
</TABLE>
--------------------------------------------------------------------------------
128 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 131
NOTES TO FINANCIAL STATEMENTS
WESTCORE INTERNATIONAL FRONTIER FUND
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
DECEMBER 15, 1999
(INCEPTION) TO
MAY 31, 2000
-----------------------------------------------------------------------------------
<S> <C>
Shares sold 3,219,658
Shares issued as reinvestment of dividends and distributions 1,488
-----------------------------------------------------------------------------------
Total 3,221,146
Shares redeemed (1,358,318)
-----------------------------------------------------------------------------------
Net increase in shares 1,862,828
====================================================================================
</TABLE>
WESTCORE SMALL-CAP GROWTH FUND
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
OCTOBER 1, 1999
(INCEPTION) TO
MAY 31, 2000
-----------------------------------------------------------------------------------
<S> <C>
Shares sold 3,437,335
Shares issued as reinvestment of dividends and distributions 1,282
-----------------------------------------------------------------------------------
Total 3,438,617
Shares redeemed (2,157,440)
-----------------------------------------------------------------------------------
Net increase in shares 1,281,177
====================================================================================
</TABLE>
WESTCORE SELECT FUND
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
OCTOBER 1, 1999
(INCEPTION) TO
MAY 31, 2000
-----------------------------------------------------------------------------------
<S> <C>
Shares sold 2,775,670
Shares issued as reinvestment of dividends and distributions 59,131
-----------------------------------------------------------------------------------
Total 2,834,801
Shares redeemed (1,231,992)
-----------------------------------------------------------------------------------
Net increase in shares 1,602,809
====================================================================================
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 129
<PAGE> 132
NOTES TO FINANCIAL STATEMENTS
WESTCORE EQUITY VALUE FUNDS
WESTCORE BLUE CHIP FUND
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
MAY 31, 2000 MAY 28, 1999
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 1,301,710 2,062,604
Shares issued as reinvestment of dividends and distributions 607,474 585,083
----------------------------------------------------------------------------------------------------
Total 1,909,184 2,647,687
Shares redeemed (2,413,432) (2,474,945)
----------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares (504,248) 172,742
====================================================================================================
</TABLE>
WESTCORE MID-CAP OPPORTUNITY FUND
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
OCTOBER 1, 1998
FOR THE YEAR ENDED (INCEPTION) TO
MAY 31, 2000 MAY 28, 1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares acquired from separately managed
investment partnership 0 221,124
Shares sold 30,455 38,815
Shares issued as reinvestment of dividends and distributions 61 0
-----------------------------------------------------------------------------------------------------
Total 30,516 259,939
Shares redeemed (56,619) (25,907)
-----------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares (26,103) 234,032
=====================================================================================================
</TABLE>
WESTCORE SMALL-CAP OPPORTUNITY FUND
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
MAY 31, 2000 MAY 28, 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 2,232,713 5,772,830
Shares issued as reinvestment of dividends and distributions 14,239 247,647
-------------------------------------------------------------------------------------------------------------------
Total 2,246,952 6,020,477
Shares redeemed (4,923,333) (3,913,368)
-------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares (2,676,381) 2,107,109
===================================================================================================================
</TABLE>
--------------------------------------------------------------------------------
130 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 133
NOTES TO FINANCIAL STATEMENTS
WESTCORE BOND FUNDS
WESTCORE LONG-TERM BOND FUND
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
MAY 31, 2000 MAY 28, 1999
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 946,059 920,644
Shares issued as reinvestment of dividends and distributions 164,666 118,714
------------------------------------------------------------------------------------------------------------
Total 1,110,725 1,039,358
Shares redeemed (750,208) (613,980)
------------------------------------------------------------------------------------------------------------
Net increase in shares 360,517 425,378
============================================================================================================
</TABLE>
WESTCORE INTERMEDIATE-TERM BOND FUND
<TABLE>
<CAPTION>
For the Year Ended For the Year Ended
May 31, 2000 May 28, 1999
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 2,555,023 2,029,671
Shares issued as reinvestment of dividends and distributions 206,930 215,203
------------------------------------------------------------------------------------------------------------
Total 2,761,953 2,244,874
Shares redeemed (3,281,234) (3,008,242)
------------------------------------------------------------------------------------------------------------
Net decrease in shares (519,281) (763,368)
============================================================================================================
</TABLE>
WESTCORE COLORADO TAX-EXEMPT FUND
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
MAY 31, 2000 MAY 28, 1999
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 925,356 1,811,592
Shares issued as reinvestment of dividends and distributions 125,311 112,684
------------------------------------------------------------------------------------------------------------
Total 1,050,667 1,924,276
Shares redeemed (1,620,373) (636,979)
------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in shares (569,706) 1,287,297
============================================================================================================
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 131
<PAGE> 134
NOTES TO FINANCIAL STATEMENTS
3. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS (TAX BASIS)
WESTCORE EQUITY GROWTH FUNDS
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
MIDCO GROWTH AND INTERNATIONAL
GROWTH FUND INCOME FUND FRONTIER FUND
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
As of May 31, 2000
Gross appreciation (excess of
value over tax cost) $ 80,137,322 $ 6,178,794 $ 2,680,108
Gross depreciation (excess of
tax cost over value) (20,073,028) (399,820) (1,780,946)
--------------------------------------------------------------------------------------------
Net unrealized appreciation/(depreciation) $ 60,064,294 $ 5,778,974 $ 899,162
============================================================================================
Cost of investments for
income tax purposes $213,515,887 $10,383,213 $20,509,963
============================================================================================
</TABLE>
<TABLE>
<CAPTION>
WESTCORE WESTCORE
SMALL-CAP SELECT
GROWTH FUND FUND
--------------------------------------------------------------------------------------------
<S> <C> <C>
As of May 31, 2000
Gross appreciation (excess of
value over tax cost) $ 1,458,843 $ 1,476,748
Gross depreciation (excess of
tax cost over value) (7,243,253) (931,054)
--------------------------------------------------------------------------------------------
Net unrealized appreciation/(depreciation) $(5,784,410) $ 545,694
============================================================================================
Cost of investments for
income tax purposes $28,112,143 $44,966,702
============================================================================================
</TABLE>
--------------------------------------------------------------------------------
132 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 135
NOTES TO FINANCIAL STATEMENTS
WESTCORE EQUITY VALUE FUNDS
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
BLUE CHIP MID-CAP SMALL-CAP
FUND OPPORTUNITY FUND OPPORTUNITY FUND
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
As of May 31, 2000
Gross appreciation (excess of
value over tax cost) $10,562,996 $ 442,098 $ 3,268,680
Gross depreciation (excess of
tax cost over value) (2,170,597) (241,251) (2,823,984)
-------------------------------------------------------------------------------------------------------
Net unrealized appreciation/(depreciation) $ 8,392,399 $ 200,847 $ 444,696
=======================================================================================================
Cost of investments for
income tax purposes $44,798,356 $ 2,898,185 $35,195,951
=======================================================================================================
</TABLE>
WESTCORE BOND FUNDS
<TABLE>
<CAPTION>
WESTCORE WESTCORE WESTCORE
LONG-TERM INTERMEDIATE-TERM COLORADO
BOND FUND BOND FUND TAX-EXEMPT FUND
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
As of May 31, 2000
Gross appreciation (excess of
value over tax cost) $ 445,124 $ 47,298 $ 77,455
Gross depreciation (excess of
tax cost over value) (1,253,149) (1,279,130) (1,258,075)
-------------------------------------------------------------------------------------------------------
Net unrealized appreciation/(depreciation) $ (808,025) $ (1,231,832) $(1,180,620)
=======================================================================================================
Cost of investments for
income tax purposes $24,762,123 $ 35,004,138 $37,692,760
=======================================================================================================
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 133
<PAGE> 136
NOTES TO FINANCIAL STATEMENTS
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%,
1.20%, 1.00%, 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
International Frontier, Westcore Small-Cap Growth, Westcore Select, 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 International Frontier, Westcore
Small-Cap Growth, Westcore Select, 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%, 1.50%, 1.30%, 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 31, 2000, the
Total Operating Expenses of the Westcore MIDCO Growth, Westcore Growth and
Income, Westcore International Frontier, Westcore Small-Cap Growth, Westcore
Select, 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 1.21%, 1.73%, 2.08%, 1.72%, 1.39%,
1.28%, 3.51%, 1.67%, 1.26%, 1.11%, and 1.14%, respectively.
--------------------------------------------------------------------------------
134 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 137
NOTES TO FINANCIAL STATEMENTS
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. Under the Deferral Plan, any compensation deferred results in an equal
adjustment to the Investment for/Payable for Trustee Deferred Compensation Plan
on the Statement of Assets and Liabilities, as though an equivalent amount had
been invested in shares of one or more Westcore Funds selected by the trustee.
The amount paid to the Trustees under the Deferral Plan will be determined based
upon the performance of the selected funds. Deferral of trustees' fees under the
Deferral Plan will not affect the net assets of the Fund.
Shareholders holding more than 5% of the Funds' outstanding shares as of
May 31, 2000, constituted 13.88% of Westcore MIDCO Growth Fund, 24.19% of
Westcore Growth and Income Fund, 26.86% of Westcore International Frontier Fund,
13.24% of Westcore Small-Cap Growth Fund, 17.03% of Westcore Select Fund, 49.20%
of Westcore Blue Chip Fund, 69.66% of Westcore Mid-Cap Opportunity Fund, 49.84%
of Westcore Small-Cap Opportunity Fund, 73.36% of Westcore Long-Term Bond Fund,
58.60% of Westcore Intermediate-Term Bond Fund and 11.24% of Westcore Colorado
Tax-Exempt Fund. Included in the percentages above are holdings of DIA and/or
certain officers of DIA representing 6.52% of Westcore Growth and Income Fund,
10.75% of Westcore International Frontier Fund, 7.76% of Westcore Small-Cap
Growth Fund, 11.08% of Westcore Select Fund, 62.07% of Westcore Mid-Cap
Opportunity Fund and 5.88% of Westcore Colorado Tax-Exempt Fund.
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>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 135
<PAGE> 138
NOTES TO FINANCIAL STATEMENTS
6. ILLIQUID OR RESTRICTED SECURITIES
As of May 31, 2000, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Trustees as reflecting fair value. A security may also be
considered illiquid if it lacks a readily available market or if its valuation
has not changed for a certain period of time. The Funds intend to invest no more
than 15% of their net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limitation. The aggregate value of illiquid or restricted
securities subject to this limitation as of May 31, 2000 for the Westcore
Small-Cap Growth, Westcore Select, Westcore Long-Term Bond and Westcore
Intermediate-Term Bond Funds was $1,898,635, $562,500, $226,907 and $648,685
respectively, which represents 8.72%, 1.56%, .96% and 1.90% of the Funds' net
assets, respectively. Of the preceding amounts for the Westcore Small-Cap
Growth, Westcore Select, Westcore Long-Term Bond and Westcore Intermediate-Term
Bond Funds, $1,898,635, $562,500, $0 and $0, respectively, is considered
restricted. Information concerning restricted securities is as follows:
<TABLE>
<CAPTION>
VALUATION PER UNIT
SECURITY ACQUISITION DATES COST PER UNIT AS OF MAY 31, 2000
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WESTCORE SMALL-CAP GROWTH FUND
COMMON STOCKS
MSI Holdings Inc. 02/11/2000 $ 6.00 $9.12
Precision Optics Corp. 03/14/2000 $16.74 $7.10
WARRANTS
Precision Optics Corp. 03/14/2000 $ 4.52 $0.19
WESTCORE SELECT FUND
COMMON STOCKS
World Wireless Communications Inc. 02/16/2000 $ 3.00 $2.81
-------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
136 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 139
NOTES TO FINANCIAL STATEMENTS
7. 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 31, 2000. The information and distributions reported
herein may differ from information and distributions taxable to the shareholders
for the calendar year ended December 31, 1999.
During the fiscal year ended May 31, 2000, 99.93% of the dividends paid by
the Westcore Colorado Tax-Exempt Fund from net investment income should be
treated as tax-exempt dividends. In addition, 100%, 0%, 8%, 47%, 100% and 100%
of the dividends paid by the Westcore Growth and Income, Westcore International
Frontier, Westcore Small-Cap Growth, Westcore Select, Westcore Mid-Cap
Opportunity and Westcore Small-Cap Opportunity Funds from net investment income,
respectively, qualify for the corporate dividends received deduction.
During the fiscal year ended May 31, 2000, 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 $0.55 $8.30 $8.85
Westcore Growth and Income Fund 0.01 2.26 2.27
Westcore International Frontier Fund 0.01 0.00 0.01
Westcore Small-Cap Growth Fund 0.03 0.00 0.03
Westcore Select Fund 0.81 0.00 0.81
Westcore Blue Chip Fund 0.04 2.48 2.52
Westcore Mid-Cap Opportunity Fund 0.00 0.00 0.00
Westcore Small-Cap Opportunity Fund 0.09 0.00 0.09
Westcore Long-Term Bond Fund 0.58 0.10 0.68
Westcore Intermediate-Term Bond Fund 0.63 0.00 0.63
Westcore Colorado Tax-Exempt Fund 0.46 0.00 0.46
-----------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com 137
<PAGE> 140
INDEPENDENT AUDITORS' REPORT
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 International Frontier Fund, Westcore Small-Cap Growth Fund, Westcore
Select 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 31, 2000, 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 auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
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 31, 2000, 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 referred
to above present fairly, in all material respects, the financial position of
each of the respective funds constituting the Westcore Trust as of May 31, 2000,
the results of their operations for the period then ended, and the changes in
their net assets and financial highlights for each of the periods indicated, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ DELOITTE & TOUCHE LLP
Deloitte & Touche LLP [DELOITTE & TOUCHE LLP LOGO]
Denver, Colorado
June 30, 2000
--------------------------------------------------------------------------------
138 Annual Report May 31, 2000 [WESTCORE LOGO]
<PAGE> 141
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--------------------------------------------------------------------------------
[WESTCORE LOGO] 1-800-392-CORE (2673) o www.westcore.com
<PAGE> 142
[WESTCORE FUNDS LOGO]
BETTER RESEARCH MAKES THE DIFFERENCE.
370 17th Street
Suite 3100
Denver, CO 80202
1-800-392-CORE (2673)
www.westcore.com
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
This report has been prepared for Westcore shareholders and may be distributed
to others only if preceded or accompanied by a prospectus. Funds distributed by
ALPS Mutual Funds Services, Inc., member NASD.
WC123
