Manager Commentary as of 6/30/2010

• The second quarter of 2010 proved to be bittersweet.  On the one hand, the Fund’s absolute returns were negative.  On the other hand, we provided some downside protection to our shareholders with slightly better results than the benchmark Russell Midcap Value Index.  In the quarter the Westcore Mid-Cap Value Fund returned -9.43% while the Russell Midcap Value Index returned -9.57%.  Previously, we have talked about the length of the low-quality, low share-price, “junk” rally that began in March 2009 and the fact that it was getting “long in the tooth” by historical standards.  The duration of such rallies has typically been 10 months.  This rally came to an end in late April/early May as the market began rewarding companies that have what we believer are higher-quality characteristics.  Our focus on companies with these characteristics helped contribute to our relative outperformance during the second quarter.

• The three sectors that most significantly contributed to the Fund’s performance relative to the benchmark in the quarter were commercial services, energy and capital goods.  Quanta Services Inc., a provider of specialty contract services to electric power, gas, and telecommunications customers, was the top performer within the commercial services sector.  The company announced quarterly results that were better than the market expected.  More importantly, we believe that data indicates new business awards will pick up, supporting our view that slower spending was only temporary.  SM Energy Company, formerly St. Mary’s Land & Exploration Company, is an independent energy company.  In the quarter, SM continued to execute its strategic plan that focuses more on shale oil and gas development.  The company’s position in the Eagle Ford Shale in south Texas has been a major driver of value and promising drilling results there appear to have caused the market to re-evaluate SM’s future cash flow potential.

• The Fund’s most disappointing results relative to the benchmark came from the consumer cyclical, utility and consumer staples sectors.  Teen clothing retailer Abercrombie & Fitch was the Fund’s largest detractor within the consumer cyclical sector having posted weaker-than-expected same store sales for the month of May.  Although the Fund’s interest rate sensitive sector holdings outperformed the benchmark, the sector was generally quite weak in the quarter.  Shares of Invesco Ltd. were negatively impacted by investor concerns that the market correction in the second quarter could become more severe and extended in duration.  Additionally, investors were also apparently anxious since a significant portion of Invesco’s revenues are generated in Europe and would be impacted by the weak Euro.  While we believe the company is well managed and well positioned within the investment management industry, we will continue to monitor the situation closely.

• Investors appear increasingly skeptical of the vibrancy of the U.S. and global economic recovery as a number of economic indicators have flashed caution signals.  Car and housing sales declined after government stimulus programs expired, job creation remains anemic and persistently high unemployment rates continue to point to a consumer that cannot be expected to be the engine that will drive strong GDP growth.  While we believe this may prove to be a typical correction from both a market and economic standpoint, we are monitoring the situation closely.  We believe that over the next year, companies with strong fundamentals will be rewarded by investors.

• As always, we want to thank our shareholders for their confidence and patience in these difficult market conditions. 

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)