The Westcore Colorado Tax-Exempt Fund was created to help risk-sensitive investors with high taxable incomes keep more of their after-tax investment earnings. Whether you seek current income or compounded earnings to meet future goals, this Colorado municipal bond fund may help ease your tax burden and allow you to keep more of what you earn. Westcore Colorado Tax-Exempt Fund:

• provides income exempt from both federal and Colorado state income taxes
  (a portion of income may be subject to alternative minimum taxes).

• seeks to protect principal through expert interest rate risk management.

• has no sales charges or 12b-1 fees.

• invests primarily in a wide range of higher-quality, insured assets.

• supports Colorado cities, counties, school districts and special projects.

 
Return to Top of Page
 

Here's an example of how the Westcore Colorado Tax-Exempt Fund can help you keep more of your investment earnings. If you are a high net-worth individual, you may be in the highest federal income tax bracket of 35%. As a Colorado resident, you are probably paying an additional 4.63% in Colorado state income tax. That means you are paying a total of 39.63% — or over one-third of your interest income — just for taxes! If you earn $1,000, you keep only $604 after taxes. Your federal and state tax bill would be $396.

 
Return to Top of Page
 

Tax Equivalent Yields for Colorado Investors

Example: If your federal income tax bracket is 35%, you would have to earn at least 8.26% in a taxable investment to match that 5% yield from a tax-exempt fund.

As you know, developing a sound investment strategy is about more than just maximizing your return. It's about understanding your risk tolerance and allocating your assets in a way that maximizes your individual goals. If you are a Colorado resident with investable assets that need to be tax-sheltered in a conservative vehicle, consider Westcore Colorado Tax-Exempt Fund for a portion of your portfolio. It invests primarily in municipal bonds issued by cities, counties and municipalities located in your own backyard, Colorado. (Municipal bonds have a lower risk level than other fixed-income securities, second only to U.S. government securities.)

Westcore Colorado Tax-Exempt Fund invests in Colorado's most creditworthy bonds, high-quality issues rated AAA/Aaa, AA/Aa or A by Moody's Investors Service, Inc. or Standard & Poor's Corporation. These strong ratings reflect financial strength of the issuing municipalities and their ability to generate revenues or levy taxes in order to meet their obligations. Plus, they provide valuable funding for many public projects and issues throughout your home state, such as fire protection districts, school districts, hospitals, libraries, and much more.

 
Return to Top of Page

This double tax-exempt fund may be right for you if:

• You want higher after-tax income from an investment with a conservative approach. If you are sensitive to risk, the Fund's combination of insured, investment-grade bonds and techniques for controlling price volatility may meet your needs. If you have a high taxable income, or if you're retired and living on a fixed income, its double tax-exempt income can be particularly valuable.

• You want tax-exempt growth of your assets over time. Without taxes taking a bite out of your earnings each year, your account value may grow faster than if your investment were subject to taxes. Westcore Colorado Tax-Exempt Fund can give you the tax-exempt growth possible in IRAs, annuities and other retirement-oriented vehicles, but without the restrictions.

If you would like to find out more, visit the Westcore Colorado Tax-Exempt Fund fact page. If you would like to invest in Westcore Colorado Tax-Exempt Fund, visit our How To Invest site for a Westcore Funds Prospectus and Account Application.

Westcore fund shares are not insured by the FDIC, the Federal Reserve Board, or any other agency and are subject to investment risk.

An investor should consider investment objectives, risks, charges and expenses of the Fund(s) carefully before investing. Click here for a prospectus, which contains this and other important information. Please read the prospectus carefully before investing.

Westcore Funds are distributed by ALPS Distributors, Inc.

* Please note that Westcore Colorado Tax-Exempt Fund may invest in up to 25% of its assets in uninsured securities per our Funds Prospectus.

Westcore Colorado Tax-Exempt Fund provides income exempt from both federal and Colorado state income taxes, however a portion of income may be subject to alternative minimum taxes or other taxes.

Westcore Colorado Tax-Exempt Fund is non-diversified and concentrates its investments in a single state, therefore an investment in the Fund may be riskier than an investment in other types of municipal bond funds.

Return to Top of Page

Return to Tax & IRA Guide