Manager Commentary as of 6/30/2010

• In the first quarter, equity markets registered day-after-day gains as solid economic news and powerful earnings drove the markets higher.  Even though European concerns had spooked the markets, it was the “Flash Crash” on May 6 that produced the big change in sentiment.  The tide shifted towards more risk-averse behavior after the Dow fell 999 points in 30 minutes – producing one of the most volatile days in Wall Street history.  The second quarter was anything but normal with European sovereign debt concerns, default risk from Portugal, Ireland, Greece, and Spain and the Euro in a free fall and at home, the oil spill in the Gulf, state and municipal budget deficits and heated debate of the Financial Reform Bill.  With the aforementioned problems as a back-drop, most equity indexes suffered double digit declines for the second quarter.  The Westcore Growth Fund returned -13.92% in the quarter underperforming its benchmark, the Russell 1000 Growth Index’s return of -11.74%. 
  
  

• The Fund’s holdings in the consumer discretionary and financials sectors were among the most detrimental relative to the benchmark in the quarter.  Additionally, the Fund’s underweight position in healthcare also detracted from performance relative to the benchmark.  Companies in the financials sector faced significant uncertainty with a delay in completion of the Financial Reform Bill which was originally to be completed by Memorial Day.  From an individual holdings standpoint, four of the Fund’s bottom five performing stocks were information technology companies.  Google Inc. continued its struggle with the Chinese government and other larger liquid technology names became a source of cash as investors attempted to reduce risk in their portfolios.  We have a high degree of conviction in these holdings and view the pullback as temporary and market-driven rather than company-specific.
  
  

• At the sector level, the Fund’s strongest contributors relative to the benchmark were energy, telecommunications services and utilities.  However, there were no individual standout performers in these sectors.  Top performing stocks included Apple Inc. and NetApp Inc., both information technology sector holdings.  Apple had two exciting product releases during the second quarter, the iPad and the iPhone 4G.  The iPad with its revolutionary table-form was released in April and received rave reviews from users for its price, simplicity, battery life, application availability, and multimedia functionality.  Released in June, the iPhone 4G with its new operating system that greatly enhanced its capabilities, was such a hit with consumers that it is on pace to be the fastest selling phone ever released.  NetApp provides solutions for storing, managing, protecting and archiving business data.  Its product offerings uniquely address virtualized computing environments that have been a growing part of overall IT network budgets.  Additionally, NetApp continued to gain market share as it capitalized on the long-term shift to network-based storage by offering a full range of network-based storage solutions.  We believe that as demand for data storage continues to grow, NetApp should continue to grow its customer and revenue base by providing affordable, reliable and flexible storage solutions.
  
  
• In these times of uncertainty, we continue to focus on companies with dominant franchises, exciting new products, proprietary technology, unique distribution channels, and defensible business models that we believe will survive and thrive regardless of the economic environment.  Given the magnitude of the correction in the second quarter, we expect the market to remain volatile as investors rehash “ghosts” from the crash of 2008-2009.  However, large-cap equities are trading at valuation levels that we have not seen since the recession of 1981-1982 and spring of 2009.  We believe it won’t take much positive news for the markets to stabilize and/or advance.  We remain focused on driving long-term returns, and we are seeing compelling opportunities for investors in multiple areas.
  
  
• Thank you for your continued investment in the Fund and your confidence in our team
  
  

The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value will vary, and shares, when redeemed, may be worth more or less than their original cost. To obtain current performance as of the most recent month-end, please call 800.392.CORE (2673) or visit the Performance tab.

Stock Performance (3 months ended 6/30/2010)