Westcore Funds - Westcore Tax and IRA Information - Shareholder 2011 Tax Information

Westcore Tax and IRA Information

Westcore has compiled the following information to assist you in with preparation and IRA planning.

Shareholder 2011 Tax Information

General 2011 Tax Information

Here you will find 2011 tax information specific to Westcore shareholders.

Tax Statements to Expect from Westcore

The tax forms you will receive from Westcore are dependent upon the transactions you made during 2011. Please see the chart below for details.

Tax Form:	2011 transactions that will generate this form:	When to expect this tax form for your regular taxable accounts:	When to expect this tax form for your tax-deferred accounts:
1099-DIV	Receipt of taxable fund distributions of greater than $10	February 2012¹	N/A
1099-INT	Receipt of tax-exempt dividends of greater than $10	February 2012¹	N/A
1099-B	Redemption or exchange of shares	February 2012¹	N/A
1099-R	Receipt of a distribution from an IRA or other qualified plan	N/A	February 2012¹
1099-Q	Receipt of a distribution from an Education Savings Account	N/A	February 2012¹
5498-IRA or 5498-ESA	Making 2011 contributions to an IRA or Education Savings Account from January 1, 2012 to April 17, 2012	N/A	May 2011
Average Cost Statement	Redemption or exchange of shares if we have a complete history of your account transactions	February 2012¹	N/A

¹Westcore expects to mail these forms by the end of January 2012, but IRS regulations have extended the deadline to February 15 unless an extension is granted (as in the case of funds investing in certain real estate investment trust “REITs” and other partnerships which may report their tax information to Westcore later than February 2012).

Please note that copies of Forms 1099-DIV, 1099-INT, 1099-B, 1099-R and 1099-Q are also filed with the Internal Revenue Service.

We recommend keeping all tax forms you receive as the IRS may request them if you are audited.

Qualified Dividend Income Information

The Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), included a provision regarding the taxation of dividends that directly impacts shareholders of mutual funds. We have compiled a summary of this provision for your information. It is important to note that the tax benefits associated with this provision generally were effective for tax years 2003 through 2008 and were then extended through 2010 by the Tax Increase Prevention Act and Reconciliation Act of 2005. On December 17, 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, was enacted. This act generally extends several provisions of the 2003 and 2005 acts, including reduced tax rates for long-term capital gains and qualified dividends, through December 31, 2012.

The act reduces the tax rate assessed on certain “qualifying dividends” to 15% for most taxpayers and 5% for those in the lowest income tax bracket. In addition, the acts reduce the qualifying dividends tax rate for taxpayers in the lowest income bracket to 0%.

Dividends received from domestic corporations, including mutual funds, and certain foreign corporations are deemed qualifying dividends if the security on which the distribution is received is held for a minimum period of time. Westcore Funds will report to its shareholders the amount of qualifying dividends paid in 2010 in box 1b of Form 1099-DIV. You should consult a tax adviser to determine how much of that amount qualifies for the reduced rates based on your specific tax situation.

Of the Westcore Funds that paid dividends in 2011 the percentage of the dividends that qualify for the reduced tax rate deduction are:

Westcore Select Fund: 38.50%
Westcore Blue Chip Fund: 100.00%
Westcore Mid-Cap Value Fund: 100.00%
Westcore Small-Cap Value Fund: 100.00%
Westcore International Small-Cap Fund: 100.00%
Westcore Flexible Income Fund: 0.64%
Westcore Plus Bond Fund: 0.17%

Corporate Dividend Received Deduction Information

Corporate shareholders may be eligible for a deduction as a result of receiving ordinary dividends. For eligible corporations, the percentage of dividends paid in 2011 by Funds in the Westcore family that qualify for the corporate dividends received deductions are:

Westcore Select Fund: 38.50%
Westcore Blue Chip Fund: 98.05%
Westcore Mid-Cap Value Fund: 100.00%
Westcore Small-Cap Value Fund: 100.00%
Westcore Flexible Income Fund: 0.64%
Westcore Plus Bond Fund: 0.17%

State Tax Information

The following information is provided to assist you in preparing your 2011 state income tax return.

The amount shown on your Form 1099-DIV in Box 1a may include income derived from U.S. Treasury obligations of the United States Government. Such income may be tax-exempt in your state. The percentages of the totals derived from such obligations and the percentage of assets invested in direct U.S. Government Obligations as of December 31, 2011 are presented in the chart below:

Westcore Fund	Percent of Total in Box 1a of Form 1099-DIV Derived from U.S. Treasury Obligations as of 12/31/2011	Percent of Assets Invested in Direct U.S. Government Obligations as of 12/31/2011
Westcore Plus Bond Fund	4.67%	11.59%

For those shareholders who may be required to pay an intangible or personal-property tax, the last column indicates the percentage of assets held in direct U.S. Government Obligations on December 31, 2011. It is important to keep in mind that each state has its own policies that govern tax exemptions and liability. If you have any questions about the application of this information to your tax returns, please consult a tax adviser.

More detailed information regarding U.S. Government obligations held in the Westcore Funds is presented below:

Percent of Ordinary Income Earned from Government Investments
	Direct Obligations:	Indirect Obligations:
Westcore Fund	Treasury Income as a Percent of Box 1a	Federal Home Loan Mortgage Corp. as a Percent of Box 1a	Federal National Mortgage Association as a Percent of Box 1a	Government National Mortgage Association as a Percent of Box 1a	Federal Government Loan Mortgage Corporation as a Percent of Box 1a
Westcore Plus Bond Fund	4.67%	10.85%	18.35%	0.09%	0.00%

Important Information for Residents of California, Connecticut and New York:

Westcore Plus Bond Fund did not meet the threshold for federal obligations in 2011.

Westcore Colorado Tax-Exempt Fund 2011 Dividend Information

The dividends paid by the Westcore Colorado Tax-Exempt Fund in 2011 were 99.60% exempt from federal taxation.
100% of the tax-exempt dividends paid by the Westcore Colorado Tax-Exempt Fund in 2011 are exempt from state income taxes for shareholders who are residents of the state of Colorado.
None of the distributions paid by the Westcore Colorado Tax-Exempt Fund in 2011 are subject to the Federal Alternative Minimum Tax.

Please note that this information should not be construed as investment advice nor is it intended as a substitute for individual tax or legal advice. for information or advice specific to your situation please contace an investment or tax professional.

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