Manager Commentary as of 12/31/2011

• The Westcore Micro-Cap Opportunity Fund returned 16.39% for the fourth quarter of 2011, outperforming the 13.83% return of its benchmark, the Russell Microcap^® Index.

• The equity markets were positive across the board in the fourth quarter.  Generally, small stocks outperformed large stocks.  Among micro-cap companies, value stocks outperformed growth stocks by about 1%, while among large-cap stocks value outperformed growth by about 2.5%.

• The models used to help manage and select stocks for the Fund were effective again in the quarter.  The Fund outperformed its benchmark in nine out of thirteen sectors.  The technology, interest rate sensitive and energy sectors were the strongest performers relative to the benchmark while the consumer cyclicals, consumer staples and REITs sectors were the Fund’s weakest performers relative to the benchmark.  On an absolute basis, the Fund had positive returns in all sectors while the benchmark had positive returns in all but one sector, communications.

• From a factor and modeling standpoint, valuation factors again outperformed momentum factors as drivers of equity returns.  Companies that were inexpensive based on cash flow metrics or had stronger returns on equity (ROE) outperformed.  Companies with higher historic volatility and the strongest price momentum over the previous nine months were the worst performers in the quarter.  Dividend paying stocks outperformed non-dividend paying stocks and higher priced stocks outperformed lower priced stocks. 

• The Fund’s top performing holding in the quarter was The9 Limited, an online gaming company operating in China.  Fund holding SonoSite Inc. was also a strong performer in the quarter.  SonoSite, a medical device company, makes hand held ultrasound systems.  Zygo Corp., another top performer, operates two business lines, one in metrology and the other in precision optics. 

• The Fund’s worst performing stock in the quarter was MELA Sciences Inc.  MELA is involved in developing a device to detect melanoma, as well as a device to detect cavities without X-Rays.  Another of the Fund’s detractors was Xerium Technologies Inc. a producer of products used in making paper clothing and roll covers for paper-making machines. Also among the Fund’s detractors was Wet Seal Inc.,  a women’s clothing retailer that operates through two segments, Wet Seal aimed at teenagers and Arden B. aimed at 25 to 35 year-olds.

• As always, we thank you for your continued investment and confidence in our team.

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)