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Effective December 1,
2001, Westcore Funds began imposing a 2.00% redemption fee on Fund
shares redeemed (including in connection with an exchange) within 3
months or less from their date of purchase.
The fee is paid directly to the Funds rather than the
Adviser and is intended to encourage long-term investment
in the Funds and to the extent that short-term trading
persists, to offset brokerage commissions, market impact,
transaction costs and other expenses associated with
short-term trading. For purposes of determining whether
the redemption fee applies, the shares that were held
the longest will be redeemed first.
The redemption fee will not be charged on transactions
involving the following:
1. redemption of shares purchased through reinvested
dividends or distributions.
2. redemption of shares purchased through certain qualified
plans, including retirement and deferred compensation
plans maintained pursuant to Sections 401, 403 and 457
of the Internal Revenue Code and "rabbi trusts".
3. certain investment programs administered by financial
intermediaries that represent to management at least
annually that they too discourage short-term trading
activity and the primary extent of their short-term
trading activity is expected to be limited to periodic
rebalancing programs to meet asset allocation targets.
4. redemption of shares purchased through "omnibus
accounts" maintained by Service Organizations that
have represented to management at least annually that
for administrative reasons they are unable to apply
the redemption fee to underlying shareholders. The Funds
will implement the redemption fee in a timely manner
(at least 90 days) once the Service Organization provides
written notice to the Funds of its ability to apply
the redemption fee.
5. redemption of shares initiated by a fund (i.e. liquidation
or merger of a fund).
6. redemption resulting from the IRS required minimum
distribution rules.
7. redemption in the event of death.
Westcore Funds reserves the right to impose the redemption
fee on exempted transactions, qualified plans or investment
programs described above if management believes that
disruptive short-term trading is present and it or a
third party has the necessary account information to
impose the redemption fee. In addition, Westcore Funds
reserves the right to waive the redemption fee in other
circumstances at its discretion if such waiver is approved
by both the Fund's President and Treasurer and disclosed
at the next scheduled Board of Trustees Meeting. Under
no circumstances will any waiver involve any compensation
or other consideration received by the Funds, the Adviser,
or any other party pursuant to such arrangements.
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