SEC Info

Home

Search

My Interests

Help

Sign In

Please Sign In

  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

 2/06/06  Westcore Trust                    N-CSR      11/30/05    3:449                                    1003297

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSR       Certified Annual Shareholder Report of a            HTML  2,502K 
                          Management Investment Company                          
 2: EX-99.CERT  Miscellaneous Exhibit                               HTML     12K 
 3: EX-99.906 CERT  Miscellaneous Exhibit                           HTML      6K 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-3373

Westcore Trust
(exact name of registrant as specified in charter)

1625 Broadway, Suite 2200, Denver, Colorado 80202
(Address of principal executive offices) (Zip code)

Tané Tyler, Secretary
Westcore Trust
1625 Broadway, Suite 2200
Denver, Colorado 80202
(Name and address of agent for service)

Registrant's telephone number, including area code: 303-623-2577

Date of fiscal year end:     May 31

Date of reporting period:  November 30, 2005

Item 1.  Reports to Stockholders.

 

1-800-392-CORE (2673) ■ www.westcore.com

1

Dear Fellow Shareholders:

     The past six months have been a good period for the U.S. economy, the stock market and the Westcore Funds. Total Fund Family assets were up 22% for the period, surpassing the $1 billion mark in June 2005, while finishing at $1.19 billion as the first half of our fiscal year came to a close on November 30, 2005. We believe this growth reflects our efforts to meet your investment expectations—efforts that are based on sound philosophies and skilled execution.

     We are also pleased to report that Westcore Funds continues to be recognized by independent mutual fund rating services Morningstar Inc. and Lipper Inc. As of November 30, 2005, nine of ten eligible Westcore Funds earned an Overall Morningstar Rating™ of 3 or more stars for risk-adjusted performance. Of those nine, five Westcore Funds achieved above average ratings, with Westcore Plus Bond Fund receiving a 5-star Overall Morningstar Rating™ while Westcore Flexible Income Fund, Westcore Blue Chip Fund, Westcore Growth Fund and Westcore Mid-Cap Value Fund each received a 4-star Overall Morningstar Rating™.

     Likewise, as of November 30, 2005, six Westcore Funds were awarded Lipper Leader designations. Please see the tables on pages 8 through 11 for more detailed information and pages 12 through 15 for important disclosures on these independent ratings and designations. Overall Fund performance and expense examples can be viewed on pages 4 through 7.

     In closing, we believe we are on the cusp of a very exciting time. Whereas technology drove the markets in the late 1990s, we are seeing convincing signs that markets today are being driven by the spread of capitalism on a global scale. The rapidly growing economies of emerging free market countries such as China and India have led to a commodities boom, which in turn could drive economic and stock market growth for many years to come.

     While the recent performance of energy and basic materials stocks makes for compelling evidence, it is impossible to predict what the future may hold. This is why we always encourage investors to maintain a diversified portfolio across a variety of asset classes (stocks and bonds), market capitalizations (large, medium and small) and investment styles (growth, value, domestic and international), and we hope you will consider the Westcore Fund Family for that very reason.

     Thank you for the privilege of serving your investment needs. For more information, please call 1-800-392-2673, e-mail us at invest@westcore.com or visit us online at www.westcore.com.

 

The Shareholder Letter and the Manager Overviews included in this shareholder report contain certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management's predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.

 

1-800-392-CORE (2673) ■ www.westcore.com

3

"The performance data quoted represent past performance. Past performance does not guarantee future results and current performance may be lower or higher than the performance quoted. To obtain current performance as of the most recent month-end, please call 1-800-392-CORE (2673) or visit us online at www.westcore.com. Average annual total returns and yield figures reflect the reinvestment of dividends, capital gains distributions, all fee waivers and expense reimbursements. Without the fee waivers and expense reimbursements, total return and yield figures would have been lower. The performance data quoted does not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 90 days of purchase. If imposed, the fee would reduce the performance quoted. Total return and yield figures represent past performance. Investment return and principal value will vary, and shares, when redeemed, may be worth more or less than their original cost. Westcore fund shares are not insured by the FDIC, the Federal Reserve Board or any other agency and are subject to investment risk.

¹ Westcore Growth Fund's benchmark index was changed from the S&P 500 Index to the Russell 1000 Growth Index because the advisor believes that this is the most appropriate broad-based securities index for performance comparison purposes given the growth oriented investment style of the Fund. However, the Fund will continue to present the S&P 500 Index in performance comparisons as the Advisor believes that both are relevent.

² Lipper currently classifies the Westcore Growth Fund in the Multi-Cap Growth Category, however the Fund will be reclassified to the Lipper Large-Cap Growth Index, which the Adviser believes is a more appropriate peer group comparison, especially for the 6-Month and 1-Year periods.

³ Lipper currently classifies the Westcore Blue Chip Fund in the Multi-Cap Core Category, however the Fund will be reclassified to the Lipper Large-Cap Core Index, which the Adviser believes is a more appropriate peer group comparison, especially for the 6-Month and 1-Year periods.

⁴ Westcore Flexible Income Fund Custom Index is comprised of the Lehman Brothers Long-Term Government/Corporate Bond Index for the time period 6/1/88 - 9/30/00 and the Lehman Brothers U.S. Corporate High Yield Ba Index for the time period 10/1/00 - 11/30/05 to reflect the change in the Fund's investment strategy on 10/1/00. The Adviser believes that the Custom Index is a useful benchmark measurement for historical performance over three years.

Please see important footnotes on page 6.

 

1-800-392-CORE (2673) ■ www.westcore.com

5

Westcore Select, International Frontier and Mid-Cap Value Funds:
These Funds participate in the Initial Public Offering ("IPO") market, and a significant portion of the Funds' since inception returns have been attributable to their investment in IPOs, which in turn have had a magnified impact due to the Funds' relatively small asset base. As the Funds' assets continue to grow, it will be increasingly less likely to experience substantially similar performance by investing in IPOs.

Westcore International Frontier, Small-Cap Opportunity and Small-Cap Value Funds:
Investing in small-cap funds can be more volatile and loss of principal could be greater than investing in large-cap funds.

Westcore Select Fund:
Investing in non-diversified funds can be more volatile and loss of principal could be greater than investing in more diversified funds.

Westcore International Frontier Fund:
Investing in foreign securities entails special risks, such as currency fluctuations and political uncertainties, which are described in more detail in the prospectus.

Westcore Flexible Income and Plus Bond Funds:
Westcore Flexible Income and Plus Bond Funds are subject to additional risk in that each may invest in high-yield/high-risk bonds and are subject to greater levels of liquidity risk. Additionally, investing in bond funds entails interest rate risk and credit risk.

Westcore Colorado Tax-Exempt Fund:
This Fund invests primarily in instruments issued by or on behalf of one state and can be more volatile and loss of principal could be greater due to state specific risk.

*       Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the second fiscal half-year/365 (to reflect the half-year period). The annualized expense ratio of Westcore MIDCO Growth, Westcore Growth, Westcore Select, Westcore International Frontier, Westcore Blue Chip, Westcore Mid-Cap Value, Westcore Small-Cap Opportunity, Westcore Small-Cap Value, Westcore Flexible Income, Westcore Plus Bond and Westcore Colorado Tax-Exempt Funds were 1.11%, 1.09%, 1.15%, 1.50%, 1.15%, 1.25%, 1.30%, 1.30%, 0.85%, 0.55%, and 0.65%, respectively.

Disclosure of Fund Expenses (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs (such as the 2% fee on redemption of Fund shares made within 90 days of purchase); and (2) ongoing costs, including management fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested on June 1, 2005 and held until November 30, 2005.

Actual Return. The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expense Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical 5% Return. The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the table are meant to highlight ongoing Fund costs only and do not reflect transaction fees, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds.

 

1-800-392-CORE (2673) ■ www.westcore.com

7

© 2005 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Morningstar proprietary ratings reflect historical risk-adjusted performance as of 11/30/05. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.

See complete disclaimers beginning on page 12.

 

Lipper Leaders for Consistent Return for the Three-Years Ended 11/30/05:
	Westcore Mid-Cap Value Fund Lipper Leader for Consistent Return out of 204 Mid-Cap Value Equity Funds for the three-year period	Westcore Plus Bond Fund Lipper Leader for Consistent Return out of 374 Intermediate Investment Grade Fixed Income Funds for the three-year period
Lipper ratings for Consistent Return reflect funds' historical risk-adjusted returns, adjusted for volatility, relativeto peers as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Consistent Return metric over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Consistent Return, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. A Lipper Leader for Consistent Return is a fund that has provided superior consistency and risk-adjusted returns when compared to a group of similar funds. Lipper Leaders for Consistent Return may be the best fit for investors who value a fund's year-to-year consistency relative to other funds in a particular peer group. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.
Lipper Leaders for Total Return for the Three-Years Ended 11/30/05:
	Westcore Mid-Cap Value Fund Lipper Leader for Total Return out of 204 Mid-Cap Value Equity Funds for the three-year period	Westcore Plus Bond Fund Lipper Leader for Total Return out of 392 Intermediate Investment Grade Fixed Income Funds for the three-year period
Lipper ratings for Total Return reflect funds' historical total return performance relative to peers as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return metrics over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Total Return, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. Lipper Leaders for Total Return may be the best fit for investors who want the best historical return, without looking at risk. This measure alone may not be suitable for investors who want to avoid downside risk. For more risk-averse investors, the Total Return scores can be used with Preservation and/or Consistent Return scores to make an appropriate selection that balances the risk and return. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.

 

1-800-392-CORE (2673) ■ www.westcore.com

9

 

Lipper Leaders for Expense for the Three-Years Ended 11/30/05:
	Westcore MIDCO Growth Fund Lipper Leader for Expense out of 162 Mid- Cap Growth Equity Funds for the three-year period	Westcore Select Fund Lipper Leader for Expense out of 162 Mid- Cap Growth Equity Funds for the three-year period	Westcore Flexible Income Fund Lipper Leader for Expenseout of 120 High Current Yield Fixed Income Funds for the three-year period
	Westcore Plus Bond Fund Lipper Leader for Expense out of 138 Intermediate Investment Grade Fixed Income Funds for the three-year period	Westcore Colorado Tax-Exempt Fund Lipper Leader for  Expense out of 383 Single State Intermediate Municipal Fixed Income Funds for the three-year period
Lipper ratings for Expense reflect funds' expense minimization relative to peers with similar load structures as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Expense metric over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Expense, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. Lipper Leaders for Expense may be the best fit for investors who want to minimize their total cost. It can be used in conjunction with Total Return or Consistent Return to identify funds with above-average performance and lower-than-average cost. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.
Lipper Leaders for Preservation for the Three-Years Ended 11/30/05:
	Westcore Blue Chip Fund Lipper Leader for Preservation out of 7,972 Equity Funds for the three-year period	Westcore Plus Bond Fund Lipper Leader for Preservation out of 4,093 Fixed Income Funds for the three- year period
Lipper ratings for Preservation reflect funds' historical loss avoidance relative to other funds within the same asset class, as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Preservation metric over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Preservation, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.

 

Lipper Leaders for Tax Efficiency for the Three-Years Ended 11/30/05:
	Westcore MIDCO Growth Fund Lipper Leader for Tax Efficiency out of 454 Mid-Cap Growth Equity Funds for the three-year period	Westcore Select Fund Lipper Leader for Tax Efficiency out of 454 Mid-Cap Growth Equity Funds for the three-year period
	Westcore Colorado Tax-Exempt Fund Lipper Leader for Tax Efficiency out of 102 Other State Intermediate Municipal Fixed Income Funds for the three-year period
Lipper ratings for Tax Efficiency reflect funds' historical success in postponing taxable distributions relative to peers as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Tax Efficiency metric over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Tax Efficiency, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. Tax Efficiency offers no benefit to investors in tax-sheltered accounts such as 401(k) plans. Tax Efficiency on its own does not take relative or absolute performance into account. Investors can pair Tax Efficiency with Consistent Return and/or Total Return to find funds that have delivered solid relative performance and have postponed taxable distributions better than their peers. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.

 

1-800-392-CORE (2673) ■ www.westcore.com

11

  Morningstar Ratings

Morningstar proprietary ratings reflect historical risk-adjusted performance as of 11/30/05 and are subject to change every month. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. During periods on which ratings are based, service providers of the Fund waived fees. This waiver had a material impact on the funds' average annual returns. In the absence of fee waivers, performance would have been reduced.

Westcore MIDCO Growth Fund was rated against the following numbers of U.S.-domiciled Mid-Cap Growth funds over the following time periods: 800 funds in the last three years, 594 funds in the last five years, and 212 funds in the last ten years. With respect to these Mid-Cap Growth funds, Westcore MIDCO Growth Fund received a Morningstar Rating of 3 stars, 4 stars and 3 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.

Westcore Growth Fund was rated against the following numbers of U.S.-domiciled Large Growth funds over the following time periods: 1,342 funds in the last three years, 1,046 funds in the last five years, and 368 funds in the last ten years. With respect to these Large Growth funds, Westcore Growth Fund received a Morningstar Rating of 4 stars, 4 stars and 4 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.

Westcore Select Fund was rated against the following numbers of U.S.-domiciled Mid-Cap Growth funds over the following time periods: 800 funds in the last three years, and 594 funds in the last five years. With respect to these Mid-Cap Growth funds, Westcore Select Fund received a Morningstar Rating of 2 stars and 4 stars for the three- and five-year periods, respectively. Past performance is no guarantee of future results.

Westcore International Frontier Fund was rated against the following numbers of U.S.-domiciled Foreign Small/Mid Growth funds over the following time periods: 81 funds in the last three years, and 71 funds in the last five years. With respect to these Foreign Small/Mid Growth funds, Westcore International Frontier Fund received a Morningstar Rating of 1 star and 2 stars for the three- and five-year periods, respectively. Past performance is no guarantee of future results.

Westcore Blue Chip Fund was rated against the following numbers of U.S.-domiciled Large Blend funds over the following time periods: 1,470 funds in the last three years, 1,116 funds in the last five years, and 399 funds in the last ten years. With respect to these Large Blend funds, Westcore Blue Chip Fund received a Morningstar Rating of 4 stars, 4 stars and 3 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.

Westcore Mid-Cap Value Fund was rated against the following numbers of U.S.-domiciled Mid-Cap Blend funds over the following time periods: 340 funds in the last three years, and 239 funds in the last five years. With respect to these Mid-Cap Blend funds, Westcore Mid-Cap Opportunity Fund received a Morningstar Rating of 4 stars and 4 stars for the three- and five-year periods, respectively. Past performance is no guarantee of future results.

Westcore Small-Cap Opportunity Fund was rated against the following numbers of U.S.-domiciled Small Blend funds over the following time periods: 431 funds in the last three years, 317 funds in the last five years, and 97 funds in the last ten years. With respect to these Small Blend funds, Westcore Small-Cap Opportunity Fund received a Morningstar Rating of 3 stars, 3 stars and 3 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.

Westcore Flexible Income Fund was rated against the following numbers of U.S.-domiciled High Yield Bond funds over the following time periods: 444 funds in the last three years, 369 funds in the last five years, and 133 funds in the last ten years. With respect to these High Yield Bond funds, Westcore Flexible Income Fund received a Morningstar Rating of 3 stars, 4 stars and 4 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.

Westcore Plus Bond Fund was rated against the following numbers of U.S.-domiciled Intermediate-Term Bond funds over the following time periods: 894 funds in the last three years, 669 funds in the last five years, and 349 funds in the last ten years. With respect to these Intermediate-Term Bond funds, Westcore Plus Bond Fund received a Morningstar Rating of 5 stars, 5 stars and 4 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.

Westcore Colorado Tax-Exempt Fund was rated against the following numbers of U.S.-domiciled Municipal Single State Intermediate funds over the following time periods: 330 funds in the last three years, 291 funds in the last five years, and 218 funds in the last ten years. With respect to these Municipal Single State Intermediate funds, Westcore Colorado Tax-Exempt Fund received a Morningstar Rating of 3 stars, 3 stars and 2 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.

Lipper Leaders for Consistent Return

Lipper ratings for Consistent Return reflect funds' historical risk-adjusted returns, adjusted for volatility, relative to peers as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Consistent Return metric over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Consistent Return, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. A Lipper Leader for Consistent Return is a fund that has provided superior consistency and risk-adjusted returns when compared to a group of similar funds. Lipper Leaders for Consistent Return may be the best fit for investors who value a fund's year-to-year consistency relative to other funds in a particular peer group. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.

Westcore Mid-Cap Value Fund was rated among the following number of Mid-Cap Value Equity Funds for the following time periods: 204 funds in the last three years, 103 funds in the last five years and 204 funds in the overall period. With respect to these Mid-Cap Value Equity Funds, Westcore Mid-Cap Value Fund received a Consistent Return rating of Lipper Leader, 4 and 2 for the three-year, five-year and overall periods, respectively.

Westcore Plus Bond Fund was rated among the following number of Intermediate Investment Grade Fixed Income Funds for the following time periods: 374 funds in the last three years, 283 funds in the last five years, 112 funds in the last ten years and 375 funds in the overall period. With respect to these Intermediate Investment Grade Fixed Income Funds, Westcore Plus Bond Fund received a Consistent Return rating of Lipper Leader for the three-year, five-year, ten-year and overall periods.

Lipper Leaders for Total Return

Lipper ratings for Total Return reflect funds' historical total return performance relative to peers as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return metrics over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Total Return, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. Lipper Leaders for Total Return may be the best fit for investors who want the best historical return, without looking at risk. This measure alone may not be suitable for investors who want to avoid downside risk. For more risk-averse investors, the Total Return scores can be used with Preservation and/or Consistent Return scores to make an appropriate selection that balances the risk and return. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.

 

1-800-392-CORE (2673) ■ www.westcore.com

13

Westcore Mid-Cap Value Fund was rated among the following number of Mid-Cap Value Equity Funds for the following time periods: 204 funds in the last three years, 104 funds in the last five years and 204 funds in the overall period. With respect to these Mid-Cap Value Equity Funds, Westcore Mid-Cap Value Fund received a Total Return rating of Lipper Leader, 3 and 2 for the three-year, five-year and overall periods, respectively.

Westcore Plus Bond Fund was rated among the following number of Intermediate Investment Grade Fixed Income Funds for the following time periods: 392 funds in the last three years, 293 funds in the last five years, 139 funds in the last ten years and 392 funds in the overall period. With respect to these Intermediate Investment Grade Fixed Income Funds, Westcore Plus Bond Fund received a Total Return rating of Lipper Leader for the three-year, five-year, ten-year and overall periods, respectively.

Lipper Leaders for Expense

Lipper ratings for Expense reflect funds' expense minimization relative to peers with similar load structures as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Expense metric over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Expense, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. Lipper Leaders for Expense may be the best fit for investors who want to minimize their total cost. It can be used in conjunction with Total Return or Consistent Return to identify funds with above-average performance and lower-than-average cost. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.

Westcore MIDCO Growth Fund was rated among the following number of Mid-Cap Growth Equity Funds for the following time periods: 162 funds in the last three years, 131 funds in the last five years, 66 funds in the last ten years and 162 funds in the overall period. With respect to these Mid-Cap Growth Equity Funds, Westcore MIDCO Growth Fund received an Expense rating of Lipper Leader, Lipper Leader, 2 and Lipper Leader for the three-year, five-year, ten-year and overall periods, respectively.

Westcore Select Fund was rated among the following number of Mid-Cap Growth Equity Funds for the following time periods: 162 funds in the last three years, 131 funds in the last five years and 162 funds in the overall period. With respect to these Mid-Cap Growth Equity Funds, Westcore Select Fund received an Expense rating of Lipper Leader, 2 and Lipper Leader for the three-year, five-year and overall periods.

Westcore Flexible Income Fund was rated among the following number of High Current Yield Fixed Income Funds for the following time periods: 120 funds in the last three years, 106 funds in the last five years, 46 funds in the last ten years and 120 funds in the overall period. With respect to these High Current Yield Fixed Income Funds, Westcore Flexible Income Fund received an Expense rating of Lipper Leader, Lipper Leader, 2 and Lipper Leader for the three-year, five-year, ten-year and overall periods, respectively.

Westcore Plus Bond Fund was rated among the following number of Intermediate Investment Grade Fixed Income Funds for the following time periods: 138 funds in the last three years, 111 funds in the last five years, 63 funds in the last ten years and 138 funds in the overall period. With respect to these Intermediate Investment Grade Fixed Income Funds, Westcore Plus Bond Fund received an Expense rating of Lipper Leader for the three-year, five-year, ten-year and overall periods.

Westcore Colorado Tax-Exempt Fund was rated among the following number of Single State Municipal Fixed Income Funds for the following time periods: 383 funds in the last three years, 362 funds in the last five years, 324 funds in the last ten years and 383 funds in the overall period. With respect to these Single State Municipal Fixed Income Funds, Westcore Colorado Tax-Exempt Fund received an Expense rating of Lipper Leader for the three-year, five-year, ten-year and overall periods. The Single State Category is a culmination of multiple single state categories.

Lipper Leaders for Preservation

Lipper ratings for Preservation reflect funds' historical loss avoidance relative to other funds within the same asset class, as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Preservation metric over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Preservation, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.

Westcore Blue Chip Fund was rated among the following number of Equity Funds for the following time periods: 7,972 funds in the last three years, 5,853 funds in the last five years, 2,015 funds in the last ten years and 7,972 funds in the overall period. With respect to these Equity Funds, Westcore Blue Chip Fund received a Preservation rating of Lipper Leader, 2, 2 and 2 for the three-year, five-year, ten-year and overall periods, respectively.

Westcore Plus Bond Fund was rated among the following number of Fixed Income Funds for the following time periods: 4,093 funds in the last three years, 3,385 funds in the last five years, 2,090 funds in the last ten years and 4,093 funds in the overall period. With respect to these Fixed Income Funds, Westcore Plus Bond Fund received a Preservation rating of Lipper Leader for the three-year, five-year, ten-year and overall periods.

Lipper Leaders for Tax Efficiency

Lipper ratings for Tax Efficiency reflect funds' historical success in postponing taxable distributions relative to peers as of 11/30/05. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Tax Efficiency metric over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders for Tax Efficiency, the next 20% receive a score of 2, the middle 20% are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. Tax Efficiency offers no benefit to investors in tax-sheltered accounts such as 401(k) plans. Tax Efficiency on its own does not take relative or absolute performance into account. Investors can pair Tax Efficiency with Consistent Return and/or Total Return to find funds that have delivered solid relative performance and have postponed taxable distributions better than their peers. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2005, Reuters, All Rights Reserved.

Westcore MIDCO Growth Fund was rated among the following number of Mid-Cap Growth Equity Funds for the following time periods: 454 funds in the last three years, 333 funds in the last five years, 123 funds in the last ten years and 454 funds in the overall period. With respect to these Mid-Cap Growth Equity Funds, Westcore MIDCO Growth Fund received a Tax Efficiency rating of Lipper Leader, 5, 5 and 5 for the three-year, five-year, ten-year and overall periods, respectively.

Westcore Select Fund was rated among the following number of Mid-Cap Growth Equity Funds for the following time periods: 454 funds in the last three years, 333 funds in the last five years and 454 funds in the overall period. With respect to these Mid-Cap Growth Equity Funds, Westcore Select Fund received a Tax Efficiency rating of Lipper Leader, 5 and 4 for the three-year, five-year and overall periods, respectively.

Westcore Colorado Tax-Exempt Fund was rated among the following number of Other States Intermediate Municipal Fixed Income Funds for the following time periods: 102 funds in the last three years, 81 funds in the last five years, 59 funds in the last ten years and 102 funds in the overall period. With respect to these Other States Intermediate Municipal Fixed Income Funds, Westcore Colorado Tax-Exempt Fund received a Tax Efficiency rating of Lipper Leader for the three-year, five-year, ten-year and overall periods.

 

1-800-392-CORE (2673) ■ www.westcore.com

15

  Westcore MIDCO Growth Fund

FUND STRATEGY: Investing in a diversified portfolio of medium-sized companies with growth potential.

 

Amid higher interest rates, rising energy prices and devastating hurricanes, the Westcore MIDCO Growth Fund gained 9.96%— trailing both the 11.05% and 12.44% returns for the Fund's Russell Midcap Growth Index and its peer group, the Lipper Mid-Cap Growth Index. Although lagging these indices is disappointing, we are encouraged by an absolute return of nearly 10%.      During the period, healthcare stocks provided us with the best overall returns. Within this sector, our top-performing holdings were Amylin Pharmaceuticals Inc., Endo Pharmaceutical Holdings Inc., Neurocrine Biosciences Inc. and Celgene Corp. Each of these companies is bringing, or has recently brought, new products to market— Amylin for diabetics, Endo for pain management, Neurocrine for sleep management, and Celgene for cancer treatment.      The technology portion of our portfolio also performed well. Harris Corp., a leading supplier of government communications systems, was our principal contributor in the sector. We have benefited from several years of ownership as both sales and earnings have grown nicely.      Likewise, energy stocks continued to provide excellent returns. However, our decision to underweight the sector, in the belief that energy prices will moderate in the months ahead, detracted from our relative performance versus our benchmark index.      Unfortunately, we stumbled with a number of our consumer cyclical stocks. Two notable setbacks involved closeout retailer Tuesday Morning Corp. and mattress manufacturer Tempur-Pedic International Inc. Both companies reported disappointing earnings causing their stock prices to decline substantially. We subsequently sold our position in Tuesday Morning.

 

Looking ahead, we remain optimistic about our portfolio, and mid-cap stocks in general. As you may know, mid-cap stocks— typically those with market capitalizations between $1 and $10 billion— can frequently grow earnings faster than small or large companies. Small companies often lack the resources to grow rapidly, while the critical mass of large companies makes rapid growth more difficult. From our standpoint, portfolio companies such as NAVTEQ Corp., FMC Technologies Inc., SanDisk Corp. and Station Casinos Inc. are examples of companies that possess those characteristics and have the resources and the ability to gain market share.
	We believe that the challenging environment facing growth stocks is behind us. For this reason, we are confident we will be rewarded for investing in companies that deliver the innovation that is an inherent characteristic of all capitalist economies. In providing these transformational products and services, it is our view that these businesses have gone relatively unrecognized. We would expect that to change over the next few years.
In closing, please note that as previously announced, Lisa Z. Ramirez, CFA will be stepping down as Co-Portfolio Manager effective March 31, 2006. Lisa will continue to assist the team during this transition period to ensure consistency in our research efforts. We are grateful for Lisa's many years of valuable service to the MIDCO team.

 

1-800-392-CORE (2673) ■ www.westcore.com

17

Westcore MIDCO Growth Fund (continued)

Russell Midcap Growth Index is the Fund's benchmark index. It is an unmanaged index and measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values in the Russell 1000 index.

Lipper Mid-Cap Growth Index is an unmanaged index comprised of the 30 largest mutual funds in the Lipper Mid-Cap Growth Funds classification. This classification consists of funds that invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Mid-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P MidCap 400 Index.

An investment cannot be made directly in an index.

Please see Average Annual Total Return information on pages 4 and 5.

Top ten holdings do not include any cash, cash equivalent or exchange traded fund investments and are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular holding.

 

1-800-392-CORE (2673) ■ www.westcore.com

19

 Westcore Growth Fund

FUND STRATEGY: Investing primarily in large companies with growth potential.

 

"Anyone can hold the helm when the sea is calm," wrote first century B.C. dramatist Publilius Syrus. But as we have seen, the sea has been anything but calm, with higher interest rates, rising fuel costs and the substantial damage inflicted by two major hurricanes. Yet even as the market wrestled with these fears, opportunities still emerged via companies fueled by positive margin expansion, strong operating profit growth and some of the most robust balance sheets in 20 years.      When the fog of negative sentiment ultimately lifted, these strong fundamentals coupled with reasonable valuations set the stage for a strong autumn rally, rewarding those investors with enough patience to weather the storm. During the six months that ended November 30, 2005, the Westcore Growth Fund held true to its investment philosophy and remained on course. The Fund returned 9.80% for the period, compared to returns of 7.05% for its benchmark, the Russell 1000 Growth Index, 5.88% for the S&P 500 Index, and 11.37% for the Lipper Multi-Cap Growth Index. While Lipper currently classifies the Westcore Growth Fund in Multi-Cap Growth Category, the Fund will be reclassified to the Lipper Large-Cap Growth Index, which we believe is a more appropriate peer group comparison. For the six months ended November 30, 2005, the Lipper Large-Cap Growth Index returned 9.47%      The Fund's strong performance was driven by positive contributions from investments in a number of areas, most notably the healthcare and financials sectors. Gilead Sciences Inc., Caremark Rx Inc. and Hospira Inc. led the way for the Fund as strong fundamentals and reasonable valuations were recognized by the market.

 

Meanwhile, the financials sector was also a valuable contributor as Goldman Sachs Group Inc. and Franklin Resources Inc. benefited from favorable conditions in the capital markets. Not to be outdone, other relative contributors included America Movil S.A. de C.V., Corning Inc. and Broadcom Corp. in the information technology arena as well as Transocean Inc. and Schlumberger Ltd. in the energy sector. However, even after factoring in our sector allocation decisions, the vast majority of the Fund's strong performance resulted from individual stock selection, further strengthening our conviction in our intensive fundamental research.
	Likewise, negative Fund performance was limited to specific detractors rather than broad thematic events, namely XM Satellite Radio Holdings, Pfizer Inc. and FedEx Corp. Despite strong subscriber growth at XM Satellite Radio, the company was burdened by short-term cost concerns and competitive market share shifts. We remain positive on long-term growth rates for satellite radio and the potential for additional services that could leverage the medium's technological platform and distribution channels.      Pfizer also detracted from performance as controversy surrounding the cholesterol drug Lipitor dampened the company's growth outlook and allowed regulatory and legal issues facing large pharmaceutical companies to resurface. Lastly, we sold the Fund's position in FedEx during the summer months when fears of rising fuel costs and a slowing economy weighed on the stock. As fuel costs retreated from their highs, FedEx later rebounded. The Fund's lack of exposure to airfreight providers ultimately led to relative underperformance.
Looking ahead, our forecast for the equity markets is sunny with patches of clouds. We believe domestic and global economic growth should remain solid, while next year's corporate profits may well surprise on the upside. Given the backdrop of relatively low (albeit increasing) interest rates, decent profit growth, increased merger and acquisition activity, and reasonable valuations, it is our view that ongoing opportunity exists within the marketplace.      To that end, the Fund remains dedicated to our discipline of balancing companies with longer-term "core" growth catalysts and those with more near-term and potentially higher "tactical" growth catalysts. We are confident that this strategy will enable us to hold the helm and navigate our shareholders through turbulent markets.

 

1-800-392-CORE (2673) ■ www.westcore.com

21

Westcore Growth Fund (continued)

Russell 1000 Growth Index is an unmanaged index that measures the performance of the largest 1,000 firms in the Russell 3000 Index, which represents approximately 98% of the investable US equity market.

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 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 invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap funds typically have between 25% to 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) above 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Multi-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index.

Lipper currently classifies the Westcore Growth Fund in the Multi-Cap Growth Category, however the Fund will be reclassified to the Lipper Large-Cap Growth Index, which the Adviser believes is a more appropriate peer group comparison, especially for the past 1-Year period.

Lipper Large-Cap Growth Index is an unmanaged index comprised of the 30 largest mutual funds in the Lipper Large-Cap Growth classification. This classification consists of funds that invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500 Index.

An investment cannot be made directly in an index.

Please see Average Annual Total Return information on pages 4 and 5.

Top ten holdings do not include any cash, cash equivalent or exchange traded fund investments and are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular holding.

 

1-800-392-CORE (2673) ■ www.westcore.com

23

 Westcore Select Fund

FUND STRATEGY: Investing in a limited number of primarily medium-sized companies selected for their growth potential.

     Reflecting renewed strength in growth stocks, the Westcore Select Fund finished the first half of our fiscal year with a solid gain of 14.13%, nicely ahead of the 11.05% return for our benchmark, the Russell Midcap Growth Index, and the 12.44% return of our peer group, the Lipper Mid-Cap Growth Index. Although the period was characterized by higher interest rates, rising energy prices and devastating hurricanes, economic fundamentals and corporate earnings remained strong, providing support for increased stock prices.

     The Westcore Select Fund is a concentrated portfolio, normally investing in 20 to 35 mid-cap stocks we believe have strong long-term performance possibilities. The Fund maintains sector and industry diversification, and the companies represented in the portfolio typically possess favorable balance sheets and well-defined business franchises. We are particularly fond of companies with high returns on invested capital and meaningful free cash flow.

     Many of these qualities were identified in our healthcare stocks, which provided significant outperformance relative to our benchmark. Amylin Pharmaceuticals Inc., St. Jude Medical Inc. and Neurocrine Biosciences Inc. were new holdings during the period replacing Covance Inc. and PacifiCare Health Systems Inc. Amylin was up 112% as investors realized the potential of Byetta, its new blood sugar control treatment for Type II diabetics. Endo Pharmaceutical Holdings Inc. gained 45% on strong sales for its four major pain management products— Lidoderm, OxycodoneER, Percocet/Endocet and Frova. PacifiCare Health Systems, a West Coast HMO, advanced 22% following the announcement of its acquisition by UnitedHealth Group. Other healthcare holdings— Covance, DaVita, St. Jude Medical and Neurocrine Biosciences— also contributed positively to Fund performance.

     Additionally, our portfolio benefited from stocks in the capital goods, credit sensitive, technology and energy sectors. We made no changes in capital goods where we continued to be pleased by the progress of Jacobs Engineering Group Inc. In the credit sensitive sector, we benefited from our holdings in T. Rowe Price Group Inc. and State Street Corp., while adding Zions Bancorp.

     Elsewhere, Akamai Technologies Inc., Intuit Inc. and Cadence Design Systems Inc. were our top contributors in the technology sector, while RSA Security Inc., ATI Technologies Inc. and Altera Corp. detracted from performance and were ultimately sold. We held Altera for only a brief period before changing our investment decision, adding Harris Corporation in its place. Within the energy sector, we sold Noble Corp. and replaced it with FMC Technologies Inc.

     In contrast, the Fund suffered significant disappointments in the consumer cyclical sector. Mattress manufacturer Tempur-Pedic International Inc. declined 28%; Royal Caribbean Cruises Ltd. fell by 11%; XM Satellite Radio Holdings Inc. dropped 10%; and Ross Stores Inc. was off by 9%. Although Tempur-Pedic and Ross Stores were both added during the period, only Tempur-Pedic remained at period end. Royal Caribbean, which we had held for several years, was also sold and replaced with Wynn Resorts Ltd.

     All things considered, we engaged in more buy and sell activity than is typical for us over the past six months. However, we are very comfortable with the portfolio's present structure. We currently hold 20 mid-cap companies in the portfolio, and will be monitoring their progress closely as we navigate the second half of our fiscal year.

 

1-800-392-CORE (2673) ■ www.westcore.com

25

Westcore Select Fund (continued)

Russell Midcap Growth Index is an unmanaged index and measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values in the Russell 1000 index.

Lipper Mid-Cap Growth Index is an unmanaged index comprised of the 30 largest mutual funds in the Lipper Mid-Cap Growth Funds classification. This classification consists of funds that invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Mid-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P MidCap 400 Index.

An investment cannot be made directly in an index.

Please see Average Annual Total Return information on pages 4 and 5.

Top ten holdings do not include any cash, cash equivalent or exchange traded fund investments and are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular holding.

 

1-800-392-CORE (2673) ■ www.westcore.com

27

  Westcore International Frontier Fund

FUND STRATEGY: Investing in small, international companies that are poised for growth.

 

For the fiscal half-year ended November 30, 2005, the Westcore International Frontier Fund gained 13.04%, while its benchmark and peer group, the MSCI EAFE Small-Cap Index and the Lipper International Small-Cap Index, returned 14.77% and 15.12%, respectively. Although we are disappointed when we trail these relative yardsticks, it should be pointed out that we neither manage to an index, nor do we measure investment success in six-month intervals.      Given the tremendous focus on short-term results, many investors fail to differentiate between providence and discipline, between what has happened in the past and what may occur in the future. This is important to consider because it is our view that we are entering a period where individual stock selection will take on increasing importance.      Small-cap international stocks have had a terrific run over the past few years but only during 2005 has that success appeared to be fundamentally driven. Looking back, the sector experienced a broad revaluation from the depressed levels following the September 11 terrorist attacks and up through the March 2003 invasion of Iraq. In 2004, the rally continued, but appeared more sector based and speculative in nature, driven largely by China's seemingly insatiable demand for commodities. Your Fund did not participate in these trends, as concerns surrounding the underlying investment value of many top-performing names prevented us from owning them.      Which brings us to 2005 and beyond. With a number of our holdings reporting solid revenue growth, strong cash generation and positive earnings visibility, we have seen revaluation of the portfolio. Buyouts have accounted for some of these revaluations while operating leverage has accounted for others. For example, French industrial equipment manufacturer Pinguely-Haulotte continues to report strong revenue growth with clear margin improvements. Leverage is apparent in the business model and the stock has rallied on strong sales and earnings growth trends.

     In contrast, Global Bio-Chem Technology Group, a leading Chinese manufacturer of corn-refined and corn-based biochemical products, reported a significant decline in gross margins as the company lowered lysine prices in an effort to remove marginal players and absorb excess capacity. Although the stock continued to struggle as lysine prices stabilized, we believe the substitution of imported products, local demand and increasing downstream capacity should ultimately drive strong long-term growth and profitability.

     From a regional perspective, Europe continues to grow, albeit slowly, but is flush with private equity money. Several of our companies have been acquired by or have sold divisions to private equity investors. A number of other holdings have been approached. That private equity firms rather than industrial buyers are the highest bidders illustrates the premiums being paid. It also highlights the opportunities in a bottom-up, stock-picking portfolio of cash generative companies with healthy balance sheets and strong competitive positions.

     We believe a stock-by-stock approach is equally important in Asia. With economic growth in Australia and New Zealand slowing, with Hong Kong and China facing reform, growth and currency issues, and with Japan perhaps on the cusp of a long-awaited recovery, great uncertainty means stock selection is paramount. Although an increasing number of Japanese companies have come to focus on returns on equity and other indicators of value creation, we believe it is still too few. Nevertheless, we remain diligent in our efforts to uncover these opportunities.

     Going forward, our strategy remains the same: Find quality companies and wait for market value to close the gap with our assessed intrinsic value. We continue to see opportunities in companies traditionally considered to be value plays, as we believe they are well positioned for economic recovery. At the same time, their prospects for modest revenue growth could drive operating leverage and profit growth.

     Likewise, we remain bullish as we witness operating leverage in the reported results of our holdings. Robust merger and acquisition activity and attractive relative valuations continue to support a favorable environment that is clearly rewarding fundamental quality. Against this backdrop, we believe stock pickers will be best positioned to outperform, while markets will reward companies for their solid results.

 

1-800-392-CORE (2673) ■ www.westcore.com

29

Westcore International Frontier Fund (continued)

MSCI EAFE Small Cap Index is unmanaged and is an arithmetic, market value-weighted average of the performance of securities of small cap companies listed on the stock exchanges of 21 developed markets outside of North America with a capitalization range of $200 million - $1.5 billion.

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.

Please see Average Annual Total Return information on pages 4 and 5.

Top ten holdings do not include any cash, cash equivalent or exchange traded fund investments and are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular holding.

 

1-800-392-CORE (2673) ■ www.westcore.com

31

 Westcore Blue Chip Fund

FUND STRATEGY: Investing in large, well-established companies whose stocks appear to be undervalued.

     We are pleased to report that the Westcore Blue Chip Fund posted a gain of 6.14% for the six months ended November 30, 2005. This compares favorably to the 5.88% return of its benchmark, the S&P 500 Index, yet falls short of the 7.65% return for its current Lipper classification, the Multi-Cap Core Index. While Lipper currently classifies the Westcore Blue Chip Fund in the Multi-Cap Core Category, the Fund will be reclassified to the Lipper Large-Cap Core Index, which we believe is a more appropriate peer group comparison. For the period ended November 30, 2005, the Lipper Large-Cap Core Index returned 6.84%.

     Against a backdrop of above-average economic performance, investors found much to distract them. With three catastrophic hurricanes, higher energy costs, rising interest rates and a potential housing bubble all converging at once, equity markets trended moderately higher amid conflicting fears of economic slowdown and mounting inflation.

     Among the strongest-performing sectors during this period were energy and transportation, and in both instances our stock selection within those sectors added value to Fund performance. Although hurricane-related supply disruptions drove energy prices significantly higher, which benefited the companies we owned, in our view oil prices will remain above the market's expectations based on our belief in the industry's inability to meaningfully grow supply. From our standpoint, there is still tremendous value to be realized as the market rewards those energy companies that are positioned to benefit.

     Such was the case for XTO Energy Inc. and Transocean Inc, up 28% and 26% respectively during the period. XTO is an exploration and production company with a long history of superior and highly cost-efficient extraction performance. Transocean, a leading offshore drilling company, continues to capitalize on strong demand and higher day rates for contract rigs.

 

Transportation stocks were fairly flat through the summer and came under some pressure as fuel prices spiked. However, solid third quarter shipping volumes followed by moderating energy prices in October and November led the group to rally nicely. Our position in railroad operator Norfolk Southern Corp. prospered in this environment, aided by ongoing efficiency gains.
	While healthcare stocks as a whole were down slightly for the period, due to a prolonged tough market for large-cap pharmaceuticals, our holdings were up more than 9%. Stocks that contributed to Fund performance included generic drug manufacturer Teva Pharmaceutical Industries, having benefited from revenue gains and a robust drug pipeline, and managed healthcare provider PacifiCare Health Systems Inc., which was acquired at a premium near our price target.      Offsetting these strong performers were modest laggards within the technology and financial sectors. VeriSign Inc., a provider of e-commerce security software, underperformed as concerns arose regarding its mobile content. We believe these issues are overstated relative to its fundamentals and continue to favor the holding. Likewise, semiconductor manufacturing stocks fared poorly on fears that margins would come under severe competitive pressure. This affected our positions in technology companies Altera Corp. and Maxim Integrated Products Inc. were down for the period, we remain confident in their business models.      Meanwhile, the proliferation of higher risk lending products combined with a general decline in home mortgage applications hurt the six-month performance of Countrywide Financial Corp. and Freddie Mac.
Looking forward, we remain optimistic about the investment opportunities we see in higher quality, large-cap stocks. As the economy appears to be growing at an acceptable pace, interest rates appear to be stabilizing at still attractive levels and current energy prices seem manageable, we foresee a favorable environment developing for large-cap stocks and look forward to the year ahead. As always, we thank you for your continued interest in and support of the Westcore Blue Chip Fund.

 

1-800-392-CORE (2673) ■ www.westcore.com

33

Westcore Blue Chip Fund (continued)

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.

Lipper currently classifies the Westcore Blue Chip Fund in the Multi-Cap Core Category, however the Fund will be reclassified to the Lipper Large-Cap Core Index, which the Adviser believes is a more appropriate peer group comparison, especially for the past 1-Year period.

Lipper Large-Cap Core Index is an unmanaged index comprised of the 30 largest mutual funds in the Lipper Large-Cap Core classification. This classification consists of funds that invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500 Index.

An investment cannot be made directly in an index.

Please see Average Annual Total Return information on pages 4 and 5.

Top ten holdings do not include any cash, cash equivalent or exchange traded fund investments and are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular holding.

 

1-800-392-CORE (2673) ■ www.westcore.com

35

  Westcore Mid-Cap Value Fund

FUND STRATEGY: Investing primarily in medium-sized companies whose stocks appear to be undervalued.

     The six-month period ended November 30, 2005 saw a continuation of strong economic growth and rising equity prices despite the presence of higher energy prices, rising interest rates, and significant event-driven pressures such as Hurricanes Katrina, Rita, and Wilma. Given the context of this setting, the Westcore Mid-Cap Value Fund navigated these difficulties well, posting a fiscal half-year gain of 10.09%. In relative terms, the Fund's performance compared favorably to that of its benchmark, the Russell Mid-Cap Value Index, as well as its peer group, the Lipper Mid-Cap Value Index, which returned 9.19% and 7.79%, respectively.

     The Fund captured positive performance among the medical/healthcare, energy and interest rate sensitive sectors. Within the medical/healthcare sector, performance was driven in large part by Biovail Corporation, a specialty pharmaceutical company. Robust price appreciation materialized on the heels of strong financial results and upwardly revised guidance. Furthermore, the company received FDA approval for a new pain therapy as a replacement for COX-2 drugs that were taken off the market.

     XTO Energy Inc., an exploration and production company, provided the largest contribution within the energy sector. The stock advanced in recognition that increasing production levels would generate higher and more sustainable levels of future free cash flow. As for the interest rate sensitive sector, Assured Guaranty Ltd., a provider of credit enhancement products, was the standout performer based on the affirmation of the company's credit rating along with improving new business successes.

     In contrast, sectors that weighed heavily on fiscal half-year performance were the consumer staples, technology and commercial services sectors. Agricultural processor Bunge Ltd. was the leading detractor within the consumer staples sector. Drought-like conditions throughout the Midwest and a weak South American soybean harvest pressured Bunge's raw material supplies, thereby dampening the outlook for free cash generation. Looking ahead, the U.S. harvest was better than expected and many indications point to a healthy growing season in South America.

 

	Elsewhere, Altera Corp., a programmable chip manufacturer, held back results in the technology sector. New product launches and subsequent near-term scalability issues pressured operating margins; however, we believe these issues will be resolved in short order. Within the commercial services sector, our underperformance was primarily attributable to Waste Connections Inc., an environmental waste operator. Higher fuel costs dampened quarterly results, leading to share price weakness. Nevertheless, we are seeing signs of improving fundamentals as the company exercises pricing power within its competitive markets.      In conclusion, we continue to expect moderate economic growth within a modestly higher interest rate environment. We are keeping a watchful eye on the consumer and the degree to which rising energy prices may affect spending patterns. However, we subscribe to the notion that energy prices would need to exceed recent highs by a meaningful margin before reaching levels of past oil shocks.      Looking toward 2006, we remain steadfast in our disciplined process, focusing on intrinsic value, free cash generation and improving returns. We believe this approach will lead to long-term outperformance as we seek to uncover companies exhibiting significant upside potential that has yet to be realized. As always, thank you for your continued support and please feel free to contact us should you have any questions.

 

1-800-392-CORE (2673) ■ www.westcore.com

37

Westcore Mid-Cap Value Fund (continued)

The Russell Midcap Value Index is an unmanaged index that measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values.

Lipper Mid-Cap Value Index is an unmanaged index comprised of the 30 largest mutual funds in the Lipper Mid-Cap Value Funds classification. This classification consists of funds that invest in companies to be undervalued relative to a major stock index.

An investment cannot be made directly in an index.

Please see Average Annual Total Return information on pages 4 and 5.

Top ten holdings do not include any cash, cash equivalent or exchange traded fund investments and are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular holding.

 

1-800-392-CORE (2673) ■ www.westcore.com

39

  Westcore Small-Cap Opportunity Fund

FUND STRATEGY: Investing in small-company stocks that appear to be undervalued.

     The Westcore Small-Cap Opportunity Fund reported a strong fiscal half-year gain, advancing 10.53% for the six months ended November 30, 2005. This was consistent with the 10.47% return for the Fund's benchmark, the Russell 2000 Index, but fell slightly short of its peer group, the Lipper Small-Cap Core Index, which appreciated 11.07%.

     The first half of our fiscal year was strikingly similar to the same period last year, with the press focusing on Iraq, oil prices, a potential real estate bubble, and fears of a pullback in consumer spending. While all of these concerns, coupled with the effects of three devastating hurricanes, pose risks and warrant close monitoring, we believe, much like last year, that the positives still outweigh the negatives.

     As economist Lawrence Kudlow pointed out in a recent commentary, real GDP (gross domestic product) has grown at 3% or better for ten straight quarters, averaging 4.1% on an annualized basis for its best showing since the mid-1980s. Furthermore, business profits have increased at a double-digit pace for nine straight quarters, only the third time this has occurred since 1950.

     Meanwhile, productivity gains continue to drive growth and limit inflation as output per hour has expanded at an annualized rate of 3% over the past 10 years. With profits and cash flows at all-time highs, businesses are now paying out record dividends and buying back significant blocks of outstanding stock. Capital expenditures are also increasing, which may provide needed balance should the consumer ultimately take a breather. Taken together, we believe this setting provides a favorable underpinning for stocks in general and small-cap stocks in particular.

 

Turning to the portfolio, sectors contributing most positively to Fund performance during the period were energy, capital goods and utilities. Energy prices increased significantly, as supply-demand imbalances were exacerbated by storm-related refining disruptions in the Gulf of Mexico. In light of these disruptions, independent exploration and production firm Carrizo Oil & Gas Inc. generated considerable upside, benefiting from increased recognition of the company's Barnett Shale assets in North Texas.
	Within the capital goods sector, electrical equipment manufacturer General Cable Corp. was a standout. Factoring into its strong results was a combination of improved demand, industry consolidation and cost-cutting measures. Additionally, the Fund's relative underweight in utilities proved advantageous given the sector's underperformance during the reporting period. Our sole utilities position, geothermal energy producer Ormat Technologies Inc., bucked this trend due to increasing cost efficiencies versus traditional forms of power generation.      Conversely, sectors detracting most from Fund performance included medical/healthcare, consumer cyclicals and commercial services. At the company level, medical device maker HealthTronics Inc. announced the retirement of its chief executive officer, triggering investor uncertainty and downward pressure on its share price. Nevertheless, we remain confident in the underlying business.
Consumer cyclical WMS Industries Inc. also underperformed, as investors voiced displeasure with the gaming company's recent quarterly release. However, we believe WMS is well positioned to gain market share and to deliver on improved returns. Elsewhere, independent media distributor Source Interlink Cos. Inc. reported disappointing results within the commercial services sector, although a new agreement with Wal-Mart could bode well for the future.

 

1-800-392-CORE (2673) ■ www.westcore.com

41

Westcore Small-Cap Opportunity Fund (continued)

     In closing, we are committed to investing in companies that generate cash and effectively deploy that cash for the benefit of their shareholders. We continue to find attractive companies based upon our investment principles and therefore look positively to the future. We greatly appreciate your confidence and support. As always, please feel free to contact us at invest@westcore.com should you have any questions.

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 Core Index is an unmanaged index comprised of the 30 largest mutual funds in the Lipper Small-Cap Core Funds classification. This classification consists of funds that invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Small-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SmallCap 600 Index.

An investment cannot be made directly in an index.

Please see Average Annual Total Return information on pages 4 and 5.

Top ten holdings do not include any cash, cash equivalent or exchange traded fund investments and are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular holding.

 

1-800-392-CORE (2673) ■ www.westcore.com

43

  Westcore Small-Cap Value Fund

FUND STRATEGY: Investing primarily in small, dividend paying company stocks that appear to be undervalued.

     With the six-month period ending November 30, 2005, and nearly a full year of operations under our belt, the Westcore Small-Cap Value Fund returned a fiscal half-year gain of 8.67%. This strong absolute return failed to keep pace with that of our benchmark, the Russell 2000 Value Index and our peer group, the Lipper Small-Cap Value Index, which returned 9.20% and 9.74%, respectively. Although disappointing on a comparative basis, our history is brief, and we remain committed to pursuing strong relative long-term, risk-adjusted performance on behalf of our shareholders.

     The first half of our fiscal year was strikingly similar to the same period last year, with the press focusing on Iraq, oil prices, a potential real estate bubble, and fears of a pullback in consumer spending. While all of these concerns, coupled with the effects of three devastating hurricanes, pose risks and warrant close monitoring, we believe, much like last year, that the positives still outweigh the negatives.

     As economist Lawrence Kudlow pointed out in a recent commentary, real GDP (gross domestic product) has grown at 3% or better for ten straight quarters, averaging 4.1% on an annualized basis for its best showing since the mid-1980s. Furthermore, business profits have increased at a double-digit pace for nine straight quarters, only the third time this has occurred since 1950.

     Meanwhile, productivity gains continue to drive growth and limit inflation as output per hour has expanded at an annualized rate of 3% over the past 10 years. With profits and cash flows at all-time highs, businesses are now paying out record dividends and buying back significant blocks of outstanding stock. Capital expenditures are also increasing, which may provide needed balance should the consumer ultimately take a breather. Taken together, we believe this setting provides a favorable underpinning for stocks in general and small-cap stocks in particular.

 

Against this backdrop, sectors contributing most positively to performance over the past six months were medical/healthcare, interest rate sensitive and basic materials. Within the medical/healthcare area, Meridian Bioscience Inc. was a significant outperformer. As a leading provider of infectious disease testing equipment, the company benefited from rising demand amid heightened concerns regarding the transfer of avian flu and other animal-based illnesses to humans.
	Meanwhile, Federal Agricultural Mortgage Corp. was a standout among our interest rate sensitive holdings. Farmer Mac capitalized on the flattening Treasury yield curve, which led to increased loan volume. Albany International Corp., a basic materials position, also bolstered returns, as the maker of paper production products achieved sizable cost reductions associated with enhanced manufacturing efficiencies and improved operating rates.      In contrast, sectors most adversely impacting performance included transportation, real estate investment trusts (REITs) and communications. Transportation stocks were especially volatile during the period as evidenced by our position in Tsakos Energy Navigation Ltd. Although the oil tanker operator was affected by a seasonal lull in the shipping cycle, we remain positive on its fundamental outlook.
Glenborough Realty Trust Inc. was also an underperformer. An anticipated improvement in office REITs has yet to materialize, as supply dynamics and leasing rates have been slow to materialize. Elsewhere, communications equipment provider Inter-Tel Inc. proved disappointing due to pricing pressure and a weak launch for its new PBX product. It was expected that the business telephone system would represent a primary revenue source for the next three to five years.      Looking ahead, we believe in our focus on small, dividend-paying stocks identified as undervalued and its prospects for generating superior, risk-adjusted returns over time. We continue to find attractive companies that meet our cash flow and capital return criteria and remain optimistic about future results. As always, we thank you for your support, and invite you to contact us at invest@westcore.com should you have any questions regarding your investment.

 

1-800-392-CORE (2673) ■ www.westcore.com

45

Westcore Small-Cap Value Fund (continued)

Russell 2000 Value Index is the Fund's benchmark index. It is an unmanaged index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

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 with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Small-cap value funds typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SmallCap 600 Index.

An investment cannot be made directly in an index.

Please see Average Annual Total Return information on pages 4 and 5.

Top ten holdings do not include any cash, cash equivalent or exchange traded fund investments and are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular holding.

 

1-800-392-CORE (2673) ■ www.westcore.com

47

  Westcore Flexible Income Fund

FUND STRATEGY: A more aggressive fixed-income fund focusing on higher-yielding securities.

     In managing the Westcore Flexible Income Fund, our long-term goal is to achieve a higher risk-adjusted return than either a pure high-quality or pure high-yield debt fund. For us, that has meant investing for total return by holding a diversified portfolio of high-yield debt, investment-grade corporate bonds, preferred stocks, and income-generating equities. However, while some fixed-income managers engage in rapid trading in order to capture capital gains, we believe it is best to maximize income yield while maintaining safety of principal, regardless of market conditions.

     Although our long-term record reflects the benefits of this approach, the six months ended November 30, 2005 proved otherwise. In what has been a trader's market, the Westcore Flexible Income Fund returned 1.41%, whereas our benchmark and peer group, the Lehman Brothers Corporate U.S. High Yield Ba Index and the Lipper High Current Yield Bond Index, returned 1.90% and 3.09%, respectively.

     While this underperformance is certainly disappointing, we are not distracted by short-term fluctuations in market value. Instead, our primary focus continues to be the underlying strength and long-term relative value of the companies in which we invest. Nevertheless, while these criteria apply to our real estate investment trust (REIT) preferred stock and automotive debt exposure, both were ultimately core detractors of six-month performance.

     As interest rates have trended higher, REIT preferred stocks have traded down in conjunction with mounting investor concerns over the rising rate environment. However, given that REIT preferred stocks continue to offer a significant yield spread premium over 10-year U.S. Treasuries as well as corporate bonds, we see this environment as creating attractive, long-term buying opportunities. Overall, we believe REIT credit remains solid based on underlying strength in the commercial real estate market, rather than the uncertain housing market (more on that later).

 

What about the newsworthy auto sector? As many of you know, we have held positions in both General Motors and Ford for the past few years. Given their cost structure and profitability issues, we expect continued price volatility over the near term, especially as both companies implement proposed reorganizations. Critical to GM's plan is the sale of a controlling stake in financing arm GMAC, resolution of labor issues between the UAW and parts supplier Delphi, and progress on plant closures. If any of these measures appear at risk, we may revisit our short-term outlook for the credit.
	Likewise, our overall economic outlook remains unchanged. While we view economic and interest rate factors as secondary considerations, long yields have moved slightly higher as the Federal Reserve continued to raise short-term rates. Nevertheless, we see no significant risks that would trigger a spike in long-term rates. Barring a sharp rise in consumer inflation (CPI) or job growth, we believe short-term rates should level off, with the Fed likely concluding its tightening cycle by May 2006.      From our standpoint, the biggest risk to the economy appears to be the over-leveraged consumer. Anecdotal evidence has suggested a slowdown in the housing market and the possibility that higher interest rates could boost defaults and dampen consumer spending. Our stance is that rate increases have removed speculative excesses at the margins of the housing market, but have had limited impact on overall demographic-based demand. In any event, we are keeping a watchful eye. If more concrete signs of a weakening consumer were to emerge, we would revisit our broad assessment of corporate credit quality. However, at present, our analysis indicates that the vast majority of corporate balance sheets are still in great shape.
At this time, we would like to take a moment to cordially welcome all of our new investors, while again thanking our longstanding shareholders for their continued support. We also want to remind you that each of us firmly believes in eating our own cooking, as evidenced by our significant investments in the Fund alongside yours. As always, please feel free to email your questions or comments to invest@westcore.com.

 

1-800-392-CORE (2673) ■ www.westcore.com

49

Westcore Flexible Income Fund (continued)

     As previously announced, Co-Portfolio Manager Alex W. Lock has resigned effective April 28, 2006. During his 16-year tenure with the firm, Alex has played a major role in shaping our fixed-income investment philosophy and commitment to fundamental research. Of his many contributions, perhaps the most meaningful is that his presence will continue to be felt well after his departure.

Lehman Brothers U.S. Corporate High Yield Ba Index is an unmanaged index that measures the performance of intermediate (1 to 10 year) U.S. high yield issues. It includes fixed-rate, noninvestment grade debt issues rated Ba1 or lower by Moody's, rated BB+ or lower by S&P, rated below investment grade by Fitch Investor's Service or if unrated previously held a high yield rating or have been associated with a high yield issuer, and must trade accordingly.

Note: Westcore Flexible Income Fund Custom Index is comprised of the Lehman Brothers Long-Term Government/Corporate Bond Index for the time period 6/1/88 - 9/30/00 and the Lehman Brothers U.S. Corporate High Yield Ba Index for the time period 10/1/00 - 11/30/05 to reflect the change in the Fund's investment strategy on 10/1/00. The Adviser believes that the Custom Index is the best benchmark measurement for historical performance over three years.

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 High Current Yield Index is comprised of the 30 largest funds in the Lipper High Current Yield Funds classification. This classification consists of funds that aim at high (relative) current yield from fixed-income securities, has no quality or maturity restrictions, and tends to invest in lower grade debt issues.

Note: Lipper categorizes Westcore Flexible Income Fund in the Lipper Flexible Income category. However, Lipper does not calculate a Lipper Index for this category. Therefore Westcore Funds selected Lipper High Current Yield Index as the most comparable index.

An investment cannot be made directly in an index.

Please see Average Annual Total Return information on pages 4 and 5.

* Percentages represent the Fund's aggregate holdings in the same corporate issuer and its affiliates. Top ten corporate credit exposure and sectors are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular security, issuer or sector.

 

1-800-392-CORE (2673) ■ www.westcore.com

51

 Westcore Plus Bond Fund

FUND STRATEGY: A more moderate fixed-income fund focusing on investment quality bonds of varying maturities.

     In light of continued strong inflows, we would like to begin this semi-annual commentary by cordially welcoming all of our new investors, while again thanking our longstanding shareholders for their continued faith in our efforts. Accordingly, we look forward to serving your income needs for many years to come.

     We also want to assure you that the bottom-up discipline with which we manage the Westcore Plus Bond Fund has not changed and can easily accommodate current and future asset growth. As such, the Fund remains suitable for investors seeking a fundamental approach to income investing. Given recent market conditions, our ability to generate positive returns in a rising rate environment underscores the benefits of diversification and opportunistic security selection.

     With that said, performance for the six-month period ended November 30, 2005 remained positive. The Fund gained 0.52%, well ahead of the – 0.49% return for its benchmark, the Lehman Brothers Aggregate Bond Index, and the – 0.44% return for its peer group, the Lipper Intermediate Investment Grade Debt Index. Moreover, the Fund continued to outperform its benchmark for the one-, three-, five- and 10-year periods ended November 30, 2005.

     As evidenced by these results, our principal focus continues to be the underlying strength and long-term relative value of the companies in which we invest. For the period, however, our outperformance was driven primarily by the Fund's exposure to higher-yielding securities, which generally outpaced their investment-grade counterparts and experienced less price decline amid rising interest rates and ongoing monetary tightening. In turn, higher relative income levels generated by the portfolio provided a buffer when prices declined due to macroeconomic factors.

 

What about the newsworthy auto sector? As many of you know, we have held positions in both General Motors and Ford for the past few years. Given their cost structure and profitability issues, we expect continued price volatility over the near term, especially as both companies implement proposed reorganizations. Critical to GM's plan is the sale of a controlling stake in financing arm GMAC, resolution of labor issues between the UAW and parts supplier Delphi, and progress on plant closures. If any of these measures appear at risk, we may revisit our short-term outlook for the credit.
	Likewise, our overall economic outlook remains unchanged. While we view economic and interest rate factors as secondary considerations, long yields have moved slightly higher as the Federal Reserve continued to raise short- term rates. Nevertheless, we see no significant risks that would trigger a spike in long-term rates. Barring a sharp rise in consumer inflation (CPI) or job growth, we believe short-term rates should level off, with the Fed likely concluding its tightening cycle by May 2006.      From our standpoint, the biggest risk to the economy appears to be the over-leveraged consumer. Anecdotal evidence has suggested a slowdown in the housing market and the possibility that higher interest rates could boost defaults and dampen consumer spending. Our stance is that rate increases have removed speculative excesses at the margins of the housing market, but have had limited impact on overall demographic-based demand. In any event, we are keeping a watchful eye. If more concrete signs of a weakening consumer were to emerge, we would revisit our broad assessment of corporate credit quality. However, at present, our analysis indicates that the vast majority of corporate balance sheets are still in great shape.
As previously announced, Co-Portfolio Manager Alex W. Lock has resigned effective April 28, 2006. During his 16-year tenure with the firm, Alex has played a major role in shaping our fixed-income investment philosophy and commitment to fundamental research. Of his many contributions, perhaps the most meaningful is that his presence will continue to be felt well after his departure.

 

1-800-392-CORE (2673) ■ www.westcore.com

53

Westcore Plus Bond Fund (continued)

Lehman Brothers Aggregate Bond Index is an unmanaged index that includes investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.

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 - 11/30/89, 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.

Please see Average Annual Total Return information on pages 4 and 5.

* Percentages represent the Fund's aggregate holdings in the same corporate issuer and its affiliates. Top ten corporate credit exposure and sectors are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular security, issuer or sector.

 

1-800-392-CORE (2673) ■ www.westcore.com

55

  Westcore Colorado Tax-Exempt Fund

FUND STRATEGY: Offering Colorado investors double tax-exempt income through investing in municipal bonds of investment quality.

     Monetary tightening continued to drive the interest rate environment, as the Federal Reserve maintained a policy of measured interest rate hikes in its ongoing efforts to stave off inflation. While November's quarter-point increase brought the widely followed federal funds rate to a near-term high of 4.0%, up from 1% in June 2004, longer-term U.S. Treasury yields traded in a narrow range, just slightly above their short-term counterparts.

     Against this backdrop, the municipal yield curve tracked the flattening in Treasury yields, with tax-exempt yields, as measured by the Municipal 20 Bond Buyer Index, rising from 4.24% on May 31, 2005 to 4.51% on November 30, 2005. Subsequently, the uptrend in interest rates led to a general decline in bond prices during the six-month period.

     Over the same six-month period, the Westcore Colorado Tax-Exempt Fund returned – 0.10% compared to a – 0.12% return for its primary benchmark, the Lehman Brothers 10-year Municipal Bond Index, and a 0.17% return for its peer group, the Lipper Intermediate Municipal Index. In keeping with its current defensive posture, the Fund's return reflected shorter average maturity and duration, and higher average credit quality, relative to its benchmark.

     This return also reflects our longstanding practice of protecting principal value during rising rate environments while providing high current income that is exempt from both state and federal taxes. Consistent with this is the Fund's focus on high quality intermediate-term securities that generate relatively high levels of interest income. In keeping with this approach, the Fund primarily holds insured or prerefunded credits that carry "AAA" credit ratings from Moody's Investors Service and Standard & Poor's.

     Our focus over the reporting period has been to maintain the Fund's average credit quality at suitably high levels, while adding a few select investment-grade securities offering higher income levels. One example of this is Aurora Golf Course Enterprise System Revenue bonds, rated Baa2 by Moody's and yielding 4.50% to maturity on 12/1/2015. Although these holdings carry a lower-than-usual credit rating, they provide attractive yields and are backed by revenues from a mature, self-sustaining system of seven municipal golf courses.

     Another example is Colorado Health Facilities Authority Revenue bonds backed by Parkview Hospital in Pueblo. These yield 4.55% to maturity on 9/1/2020 and are rated A3 by Moody's, supporting their position as an essential, well-managed and profitable community hospital.

     In addition to purchasing attractive securities with relatively higher yields, the Fund was also actively selling a select number of securities with shorter maturities and relatively low yields. Given our assumption that short-term interest rates will continue to rise, we have been sellers of securities most likely to be impacted by these rate increases, namely bonds with maturities in the three- to five-year range. Because the Fund had tax-loss carry forward credits, we were able to realize capital gains on these sales without triggering taxable capital gains distributions.

     In closing, we believe that tax-exempt securities continue to offer compelling value in today's marketplace. At period-end, the 10-year high grade Municipal yield as a percentage of the 10-year U.S. Treasury note was 87.6%, according to Lehman Brothers. At these levels, demand for municipal debt securities may be quite high, especially in light of historically strong performance associated with such attractive valuations.

     Likewise, Colorado municipal debt could perform particularly well due to steady improvements in both economic fundamentals and fiscal discipline. While we anticipate that the Federal Reserve will continue to raise short-term interest rates in hopes of curbing inflationary pressures, it is unlikely that long-term rates would rise appreciably above current levels. As such, it is our belief that lower yielding, shorter maturities will become relatively less attractive than higher yielding securities with somewhat longer maturities. We will monitor this situation carefully, looking for opportunities to increase income potential without adding undue interest rate risk.

 

1-800-392-CORE (2673) ■ www.westcore.com

57

Westcore Colorado Tax-Exempt Fund (continued)

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.

Please see Average Annual Total Return information on pages 4 and 5.

Top ten holdings do not include any cash or cash equivalent investments and are subject to change. There are no guarantees that the Fund will continue to remain invested in any particular holding.

 

1-800-392-CORE (2673) ■ www.westcore.com

59

This Page Intentionally Left Blank

 

1-800-392-CORE (2673) ■ www.westcore.com

61