Manager Commentary as of 3/31/2012  

• On the back of improving investor sentiment, most equity markets were up in the first quarter of 2012.  In general, better than expected earnings drove many shares higher.  The Westcore International Small-Cap Fund finished the quarter up 16.36% outpacing its benchmark, the MSCI EAFE Small-Cap Index^®, which returned 14.86%.    

• The Fund’s strongest contributors to performance were Australia based Cardno Limited and Credit Corp. Group Limited.  Cardno is an engineering consultant with a global reach from emerging markets to developed markets, such as the U.S.  Growth in the U.S. and Australia along with a boost in contributions from acquisitions led Cardno to announce a stronger earnings outlook at the beginning of the year.  Credit Corp., a collector of past due credit card debt, also reported strong results during the first quarter.  Through a high-touch, personal approach, it runs a highly profitable and cash generative business with good visibility. 

• The biggest detractors from the Fund's performance over the quarter were Slater & Gordon Ltd. and Ports Design Ltd.  Australia based Slater & Gordon was the first publically traded law firm in the world.  It recently entered the newly opened legal market in the UK via an acquisition of an established UK law firm, Russell, Jones & Walker.  We feel that the market is not only undervaluing Slater’s opportunity in its home market, but is also failing to recognize the opportunities in entering the UK market.  Hong Kong based Ports Design Ltd. is a retailer of high-end women’s apparel.  Same store sales growth slowed throughout last year from 17.5% in the first quarter to an estimated 10% in the fourth quarter due to slower traffic.  We, however, are encouraged as Ports continued to fulfill its expansion goals and remained a profitable, high return business with net cash on its balance sheet.

• After facing a challenging period in the markets last year, we are pleased that in the first quarter of this year, the Fund’s holdings provided solid performance.  There remain pockets of uncertainty around the globe.  Specifically, how the events in Southern Europe will unfold is still largely unknown and very difficult to predict.  Rather than dwelling on the uncertainty, we are focused on identifying and investing in companies with strong growth, substantial free cash flow, robust balance sheets and attractive valuations.  We are confident this strategy will help us position the Fund well over time.   

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 3/31/2012)