Manager Commentary as of 12/31/2011

• In the fourth quarter of 2011, the Westcore MIDCO Growth Fund outperformed its benchmark returning 13.20% compared to Russell Midcap^® Growth Index’s return of 11.24%.

• Equity markets rebounded in the fourth quarter as perceived risk from the debt crisis in Europe partially subsided and U.S. economic data proved better than expected.  Volatility remained at elevated levels, giving us opportunities to add to existing positions and find new investment ideas where we saw attractive long-term fundamentals. 

• The sectors that contributed most to the Fund’s performance relative to its benchmark in the fourth quarter were health care, consumer discretionary, and industrials.  Within the health care sector, the Fund’s best performing stock was Varian Medical Systems, Inc., a leading provider of radiation oncology equipment.  Varian benefited from the fourth quarter announcement that Siemens, the third largest market participant in radiation oncology, plans to exit the market.  Signet Jewelers Ltd., an industry leading retailer of specialty jewelry, was the Fund’s best performing stock in the consumer discretionary sector.  Signet reported better than expected sales and profit margins in the quarter as the company’s growing scale and marketing power continued to drive strong share gains.  Within the industrials sector, the Fund’s best performing holding was Ryder System Inc., a provider of outsourced transportation services.  Against a back-drop of improving freight trends, trucking fleet managers plan to increase capital spending to replace aging trucks, which is beneficial to Ryder’s rental and leasing business lines.

• At the sector level, the Fund’s largest detractors from performance relative to the benchmark in the quarter were information technology and financials.  Within the information technology sector, Rovi Corp., a digital media technology provider, was the Fund’s largest detractor.  Rovi underperformed after lowering guidance for the year based on a faster decay of its legacy ACP (analog copy protection) and DVD copy businesses.  We still however, like the company’s opportunities in its Total Guide cable search platform and metadata information supplier for video providers.  None of the Fund’s financial sector holdings were among its poorest performers in the quarter; however, our underweight position in the sector impacted performance.

• At the end of the fourth quarter of 2011, the Fund’s primary overweight positions were in the information technology and health care sectors and its largest underweight positions were in the consumer staples and financials sectors. 

• The global growth outlook is mixed.  While the U.S. outlook appears to be improving, there are concerns over a slowdown in China and a recession in Europe.  We’ve positioned the portfolio with a focus on long-term growth companies that we believe have attractive valuations and can outperform despite slowing growth outside the U.S.  Our underweight positions currently include sectors that are dependent on global cyclical forces. 

• As always, we thank you for your continued investment.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 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 12/31/2011)