Westcore Micro-Cap Opportunity Fund

Quantitative Equity

Style: Micro-Cap Core Retail Class: WTMIX

Investment Strategy

The Westcore Micro-Cap Opportunity Fund invests primarily in the stocks of micro-cap companies that appear to be undervalued.

We use a mathematically driven approach to construct a diversified micro-cap portfolio. Our proprietary multi-factor quantitative investment model is designed to help us identify attractively valued micro-cap companies based on various financial measures and ratios. Our disciplined process emphasizes risk controls and repeatability.

This Fund is available in the retail class only.

Management Team

We employ a quantitative approach to investing, one that utilizes fundamental factors, which we believe are predictive of long-term stock price performance. – Paul A. Kuppinger, CFA

Paul A. Kuppinger, CFA

Paul A. Kuppinger, CFA

Vice President, Portfolio Manager, Quantitative Analyst

Fund Information & Investment Minimums

Retail Class
Ticker WTMIX
CUSIP 957904477
Inception Date 6/23/2008
Distribution Frequency Annually
Minimum to open a new regular account: $2,500
Minimum to open a new retirement, education1 or UGMA/UTMA account: $1,000
Minimum to open an Automatic Investment Plan Account: $1,000
Automatic Investments: $25/month per Fund
Minimum to add to any type of account: $25
Retail Class
Ticker WTMIX
CUSIP 957904477
Inception Date 6/23/2008
Minimum to open a new regular account: $2,500
Minimum to open a new retirement, education1 or UGMA/UTMA account: $1,000
Minimum to open an Automatic Investment Plan Account: $1,000
Automatic Investments: $25/month per Fund
Minimum to add to any type of account: $25
Investing in micro-cap funds generally will be more volatile and loss of principal could be greater than investing in large-cap funds.

The risk profile spectrum provides an approximate illustration of the relative volatility of the Westcore Family of Funds determined by using each fund’s 5-year annualized standard deviation as of 3/31/17. If the fund’s retail class has less than five years of operations as of that date, the standard deviation of the fund’s Morningstar category is used instead. Standard deviation is a statistical measure of the historical volatility of a fund, which we believe can assist in classifying a fund within a risk spectrum. The placement on the risk spectrum (Low to High) is based on the comparison of each Fund’s standard deviation measure, as described above, in relation to the universe of funds with a 5-year standard deviation measure as obtained from a third-party fund database. We believe those measures are accurate but have not independently verified them. Please refer to the prospectus for each fund’s specific risks. Also a fund’s measure of volatility is subject to change without notice as market or economic conditions change, and such changes may include significant and nonrecurring volatility events. Historical volatility is not necessarily indicative of future volatility and there is no guarantee that in any time period any one fund will be more or less volatile than any other fund.

CFA is a trademark owned by CFA Institute.
Please see the prospectus for more detailed information regarding investment minimums. The Funds reserve the right to change the amount of these minimums from time to time or to waive them in whole or in part, including the right to waive the Institutional Class minimums, if in the Advisor’s sole opinion, the investor has adequate intent and availability of assets to reach a future level of investment in the Fund that is equal to or greater than the minimum.
1 A description of the retirement and education accounts available for investment in the Westcore Funds may be found in the SAI for the Funds. Please call 800.392.CORE (2673) to request a free copy of the SAI or click here to download.
The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange–traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-,and 10 year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five year rating/40% three-year rating for 60-119 months of total returns, and 50% 10 year rating/30% five-year rating/20% three year rating for 120 or more months of total returns. While the 10 year overall rating formula seems to give the most weight to the 10 year period, the most recent three–year period actually has the greatest impact because it is included in all three rating periods.
© 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Investment Team

Paul A. Kuppinger, CFA
Paul A. Kuppinger, CFA

Vice President, Portfolio Manager, Quantitative Analyst

2006 to Present: Denver Investments
2003 to 2006: Rocky Mountain Wealth Advisors, Principal
2002 to 2003: Curian Capital, Vice President of Research
1998 to 2002: Prima Capital, Director of Research
1997 to 1998: KPMG, Research Analyst
1993 to 1995: Westcap Investors, Trader
1990 to 1993: Wilshire Associates, Supervisor of Performance Measurement
Education:

BA – The Colorado College; MBA – University of Colorado
Member of CFA Institute and CFA Society Colorado

Georgene L.A. Pedrie
Georgene L.A. Pedrie

Vice President, Senior Equity Trader

2002 to Present: Denver Investments
1987 to 2002: NDB Capital Market, Sales Trader
Education:

BA and MA – University of Northern Colorado

CFA is a trademark owned by CFA Institute.
Georgene L.A. Pedrie is a registered representative of ALPS Distributors, Inc.

The risk profile spectrum provides an approximate illustration of the relative volatility of the Westcore Family of Funds determined by using each fund’s 5-year annualized standard deviation as of 3/31/17. If the fund’s retail class has less than five years of operations as of that date, the standard deviation of the fund’s Morningstar category is used instead. Standard deviation is a statistical measure of the historical volatility of a fund, which we believe can assist in classifying a fund within a risk spectrum. The placement on the risk spectrum (Low to High) is based on the comparison of each Fund’s standard deviation measure, as described above, in relation to the universe of funds with a 5-year standard deviation measure as obtained from a third-party fund database. We believe those measures are accurate but have not independently verified them. Please refer to the prospectus for each fund’s specific risks. Also a fund’s measure of volatility is subject to change without notice as market or economic conditions change, and such changes may include significant and nonrecurring volatility events. Historical volatility is not necessarily indicative of future volatility and there is no guarantee that in any time period any one fund will be more or less volatile than any other fund.

The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange–traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-,and 10 year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five year rating/40% three-year rating for 60-119 months of total returns, and 50% 10 year rating/30% five-year rating/20% three year rating for 120 or more months of total returns. While the 10 year overall rating formula seems to give the most weight to the 10 year period, the most recent three–year period actually has the greatest impact because it is included in all three rating periods.
© 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
View Performance as of:
Month-End   Quarter-End
  Monthly Returns (%)
Periods Ended: 9/30/2017
Annualized Returns (%)
Periods Ended: 9/30/2017
1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years Since Inception
Westcore Micro-Cap Opportunity Fund 6.22 4.43 4.54 20.92 11.25 13.32 - 9.95
Russell Microcap® Index 8.15 6.65 11.16 22.33 12.16 13.89 - 9.45
  Monthly Returns (%)
Periods Ended: 9/30/2017
Annualized Returns (%)
Periods Ended: 9/30/2017
1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years Since Inception
Westcore Micro-Cap Opportunity Fund 6.22 4.43 4.54 20.92 11.25 13.32 - 9.95
Russell Microcap® Index 8.15 6.65 11.16 22.33 12.16 13.89 - 9.45
Westcore Micro-Cap Opportunity Fund
Monthly Returns(%) as of 9/30/2017
1 Month 6.22
3 Months 4.43
YTD 4.54
Annualized Returns(%) as of 9/30/2017
1 Year 20.92
3 Years 11.25
5 Years 13.32
10 Years -
Since Inception 9.95
Russell Microcap® Index
Monthly Returns(%) as of9/30/2017
1 Month 8.15
3 Months 6.65
YTD 11.16
Annualized Returns(%) as of 9/30/2017
1 Year 22.33
3 Years 12.16
5 Years 13.89
10 Years -
Since Inception 9.45
Westcore Micro-Cap Opportunity Fund
Monthly Returns(%) as of 9/30/2017
1 Month 6.22
3 Months 4.43
YTD 4.54
Annualized Returns(%) as of9/30/2017
1 Year 20.92
3 Years 11.25
5 Years 13.32
10 Years -
Since Inception 9.95
Russell Microcap® Index
Monthly Returns(%) as of 9/30/2017
1 Month 8.15
3 Months 6.65
YTD 11.16
Annualized Returns(%) as of 9/30/2017
1 Year 22.33
3 Years 12.16
5 Years 13.89
10 Years -
Since Inception 9.45
Retail Class Annual Expense Ratio -- Gross: 2.09%, Net: 1.30%

Calendar Year Returns (%)

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Westcore Micro-Cap Opportunity Fund 24.49 -4.92 2.49 46.20 15.60 -3.55 33.49 15.55 -24.43* -
Russell Microcap® Index 20.37 -5.16 3.65 45.62 19.75 -9.27 28.89 27.48 -35.16* -
Westcore Micro-Cap Opportunity Fund
2016 24.49
2015 -4.92
2014 2.49
2013 46.20
2012 15.60
2011 -3.55
2010 33.49
2009 15.55
2008 -24.43*
2007 -
Russell Microcap® Index
2016 20.37
2015 -5.16
2014 3.65
2013 45.62
2012 19.75
2011 -9.27
2010 28.89
2009 27.48
2008 -35.16*
2007 -
*2008 calendar year returns for the Fund and benchmark are for the period 6/28/2008 through 12/31/2008.
Investing in micro-cap funds generally will be more volatile and loss of principal could be greater than investing in large-cap funds.
Performance data quoted represents past performance and does not guarantee future results. Performance information for the institutional class shares prior to their inception is based on the performance of the retail class. Current performance may be lower or higher than the performance quoted. To obtain current performance as of the most recent month-end, please call 800.392.CORE(2673). Average annual total returns reflect the reinvestment of dividends, capital gains distributions, all fee waivers and expense reimbursements. If imposed, the fee would reduce the performance quoted. Investment return and principal value will vary, and shares, when redeemed, may be worth more or less than their original cost. Westcore fund shares are not insured by the FDIC, the Federal Reserve Board or any other agency and are subject to investment risk.
Denver Investments (the “Adviser”) has contractually agreed to waive the investment advisory and/or administration fees and/or to reimburse other expenses from April 30, 2017 until at least April 30, 2018, so that the ratio of expenses to average net assets as reported in the Fund’s Financial Highlights will be no more than a fixed percentage for the Fund’s Retail Class for such period. This agreement may not be terminated or modified by the Adviser prior to April 30, 2018 without the approval of the Board of Trustees.
All indices are unmanaged and investors cannot invest directly in an index. View index descriptions.
FTSE Russell is the source and owner of the Russell Index data. See Terms of Use for additional disclosure.

The risk profile spectrum provides an approximate illustration of the relative volatility of the Westcore Family of Funds determined by using each fund’s 5-year annualized standard deviation as of 3/31/17. If the fund’s retail class has less than five years of operations as of that date, the standard deviation of the fund’s Morningstar category is used instead. Standard deviation is a statistical measure of the historical volatility of a fund, which we believe can assist in classifying a fund within a risk spectrum. The placement on the risk spectrum (Low to High) is based on the comparison of each Fund’s standard deviation measure, as described above, in relation to the universe of funds with a 5-year standard deviation measure as obtained from a third-party fund database. We believe those measures are accurate but have not independently verified them. Please refer to the prospectus for each fund’s specific risks. Also a fund’s measure of volatility is subject to change without notice as market or economic conditions change, and such changes may include significant and nonrecurring volatility events. Historical volatility is not necessarily indicative of future volatility and there is no guarantee that in any time period any one fund will be more or less volatile than any other fund.

The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange–traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-,and 10 year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five year rating/40% three-year rating for 60-119 months of total returns, and 50% 10 year rating/30% five-year rating/20% three year rating for 120 or more months of total returns. While the 10 year overall rating formula seems to give the most weight to the 10 year period, the most recent three–year period actually has the greatest impact because it is included in all three rating periods.
© 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Manager Commentary as of 6/30/2017

 

Market Overview

After performing poorly in the first quarter of 2017, micro-cap stocks rebounded in the second quarter, with the Russell Microcap® Index up 3.83% for the three months ended June 30, 2017. Once again, stocks that we view as expensive outperformed companies with high cash flow to price and other positive valuation metrics. Stocks with solid return on equity were mixed, but those with higher quality (as measured by the Piotroski score) outperformed. Stocks with low volatility and higher historical trading volume outperformed less-volatile and less-liquid stocks.

Fund Performance

For the second quarter, the Westcore Micro-Cap Opportunity Fund returned 3.78%, slightly underperforming its benchmark, the Russell Microcap® Index, which returned 3.83%. The models used to help manage and select stocks for the Fund delivered mixed results for the quarter. On an absolute basis, the Fund provided positive returns in 9 of 11 sectors for the quarter. The benchmark’s returns were positive in 8 out of 11 sectors on an absolute basis. The Fund outperformed the benchmark in 4 out the 11 sectors.

Contributors to Return

The Fund’s best-performing sectors, relative to the benchmark, were health care, energy, and materials. Among the Fund’s best-performing holdings this quarter was MiMedx Group Inc., a biopharmaceutical company that delivers innovative bioactive healing products for tissue regeneration. The company reported better-than-expected results for the first quarter. RetailMeNot Inc. was another significant contributor to the Fund’s performance in the quarter. This online aggregator of digital coupons for dining and shopping was acquired during the quarter. Another strong performer was Massachusetts-based Lantheus Holdings Inc. This medical imaging solutions company reported better-than-expected results for the first quarter and also raised guidance for its full-year 2017 earnings estimates.

Detractors from Return

The Fund’s weakest sectors relative to the benchmark were telecommunications services, financials, and information technology. Among the Fund’s detractors in the quarter was DHI Group Inc., a leading provider of data, insights, and employment connections to specialized professional communities. The stock struggled after the company announced that it had concluded its exploration of alternative of ownership options and would continue to operate independently. Another detractor from the Fund’s performance in the quarter was magicJack VocalTec Ltd., a provider of voice over internet protocol (VOIP) solutions. The company reported several one-time expenses, including a $31.5 million charge related to its recent acquisition, Broadsmart Global Inc. Net 1 UEPS Technologies Inc. also hampered the Fund’s performance in the quarter. The company provides secure financial transaction channels for populations with limited access to formal banking options. Its stock underperformed after Net 1 UEPS received some bad press regarding its subsidiary that distributes welfare grants in South Africa.

Outlook and Positioning

Despite the uncertainty around the timing of pro-growth policy changes proposed by the new administration, stock market volatility remains at extremely low levels. Additionally, we see continued signs of optimism for small companies. Non-residential fixed investment spending increased by 11% in the quarter, which to us suggests that increased optimism among CEOs and CFOs is translating into actual activity. U.S. consumer confidence also remains high. While it certainly does not appear to be a low-risk environment for stocks, particularly as valuations have increased in recent years, we are still finding some reasonably priced micro-cap stocks.

Stock Performance (3 months ended 6/30/2017)
Top 5 Stocks Average Weight Contribution to Return
MiMedx Group Inc 0.82% 0.35%
OraSure Technologies Inc 1.02 0.32
RetailMeNot Inc 0.54 0.31
Lantheus Holdings Inc 0.88 0.31
Bassett Furniture Industries Inc 0.82 0.31
Bottom 5 Stocks Average Weight Contribution to Return
Zumiez Inc 0.34% -0.14%
magicJack VocalTec Ltd 0.78 -0.15
Net 1 UEPS Technologies Inc 0.61 -0.15
DHI Group Inc 0.60 -0.20
Bristow Group Inc 0.37 -0.22
Top 5 Stocks
MiMedx Group Inc
Average Weight 0.82%
Contribution to Return 0.35%
OraSure Technologies Inc
Average Weight 1.02
Contribution to Return 0.32
RetailMeNot Inc
Average Weight 0.54
Contribution to Return 0.31
Lantheus Holdings Inc
Average Weight 0.88
Contribution to Return 0.31
Bassett Furniture Industries Inc
Average Weight 0.82
Contribution to Return 0.31
Bottom 5 Stocks
Zumiez Inc
Average Weight 0.34%
Contribution to Return -0.14%
magicJack VocalTec Ltd
Average Weight 0.78
Contribution to Return -0.15
Net 1 UEPS Technologies Inc
Average Weight 0.61
Contribution to Return -0.15
DHI Group Inc
Average Weight 0.60
Contribution to Return -0.20
Bristow Group Inc
Average Weight 0.37
Contribution to Return -0.22
Investing in micro-cap funds generally will be more volatile and loss of principal could be greater than investing in large-cap funds.
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.
The Top 5 and Bottom 5 performing stocks do not represent all of the securities purchased, sold or recommended by the Funds’ Adviser. The methodology used to construct this chart took into account the weighting of every holding in the Fund that contributed to the Fund’s performance during the measurement period. The contribution of each Fund holding was consistently determined by calculating the weight of each holding multiplied by the rate of return for that holding during the measurement period. To request a complete list of the contribution of each Fund holding to overall Fund performance, please call 800-392-CORE (2673) or visit the Performance tab.
The Manager Commentaries contain certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.
All indices are unmanaged and investors cannot invest directly in an index. View index descriptions.

The risk profile spectrum provides an approximate illustration of the relative volatility of the Westcore Family of Funds determined by using each fund’s 5-year annualized standard deviation as of 3/31/17. If the fund’s retail class has less than five years of operations as of that date, the standard deviation of the fund’s Morningstar category is used instead. Standard deviation is a statistical measure of the historical volatility of a fund, which we believe can assist in classifying a fund within a risk spectrum. The placement on the risk spectrum (Low to High) is based on the comparison of each Fund’s standard deviation measure, as described above, in relation to the universe of funds with a 5-year standard deviation measure as obtained from a third-party fund database. We believe those measures are accurate but have not independently verified them. Please refer to the prospectus for each fund’s specific risks. Also a fund’s measure of volatility is subject to change without notice as market or economic conditions change, and such changes may include significant and nonrecurring volatility events. Historical volatility is not necessarily indicative of future volatility and there is no guarantee that in any time period any one fund will be more or less volatile than any other fund.

The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange–traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-,and 10 year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five year rating/40% three-year rating for 60-119 months of total returns, and 50% 10 year rating/30% five-year rating/20% three year rating for 120 or more months of total returns. While the 10 year overall rating formula seems to give the most weight to the 10 year period, the most recent three–year period actually has the greatest impact because it is included in all three rating periods.
© 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Distributions

The Westcore Micro-Cap Opportunity Fund pays any income and capital gain distributions at least annually, generally in December.

To view the Fund’s most recent distributions click here.

To view historical distribution information for all of the Westcore Funds click here.

 

Past performance does not guarantee future results.
A fund’s income from dividends and interest and any net realized short-term capital gains are paid to shareholders as income dividends. A fund realizes capital gains whenever it sells securities for a higher price than it paid for them. Net realized long-term gains are paid to shareholders as capital gain dividends. A dividend will reduce the net asset value of a fund share by the amount of the dividend on the ex-dividend date. View the prospectus for more information.

The risk profile spectrum provides an approximate illustration of the relative volatility of the Westcore Family of Funds determined by using each fund’s 5-year annualized standard deviation as of 3/31/17. If the fund’s retail class has less than five years of operations as of that date, the standard deviation of the fund’s Morningstar category is used instead. Standard deviation is a statistical measure of the historical volatility of a fund, which we believe can assist in classifying a fund within a risk spectrum. The placement on the risk spectrum (Low to High) is based on the comparison of each Fund’s standard deviation measure, as described above, in relation to the universe of funds with a 5-year standard deviation measure as obtained from a third-party fund database. We believe those measures are accurate but have not independently verified them. Please refer to the prospectus for each fund’s specific risks. Also a fund’s measure of volatility is subject to change without notice as market or economic conditions change, and such changes may include significant and nonrecurring volatility events. Historical volatility is not necessarily indicative of future volatility and there is no guarantee that in any time period any one fund will be more or less volatile than any other fund.

The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange–traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-,and 10 year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five year rating/40% three-year rating for 60-119 months of total returns, and 50% 10 year rating/30% five-year rating/20% three year rating for 120 or more months of total returns. While the 10 year overall rating formula seems to give the most weight to the 10 year period, the most recent three–year period actually has the greatest impact because it is included in all three rating periods.
© 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
3-star Morningstar Overall Rating out of 653 Small Blend Funds based upon risk adjusted returns as of 9/30/2017.
View all Ratings

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