Westcore Small-Cap Value Dividend Fund

Value Equity

Style: Small-Cap Value Retail Class: WTSVX Institutional Class: WISVX

Investment Strategy

The Westcore Small-Cap Value Dividend Fund invests primarily in the stocks of small, dividend-paying companies that appear to be undervalued.

We combine our independent fundamental research with strict adherence to our style and risk controls to help us uncover small dividend-paying companies whose future cash flow and return on invested capital appear to be undervalued by the market. Through analyzing business models, evaluating products, management and competitive sustainability, we build this diversified small-cap value portfolio with what we believe are high-quality companies with the most attractive risk reward characteristics.

This Fund is available in both the retail and institutional class.

Management Team

We look for dividend-paying, cash-flow generating businesses at attractive prices. We believe our process creates a powerful approach that may preserve capital in down markets while also participating in up markets. – – Derek R. Anguilm, CFA

Derek R. Anguilm, CFA

Derek R. Anguilm, CFA

Partner, Co-Director of Value Research, Portfolio Manager

Troy Dayton, CFA

Troy Dayton, CFA

Partner, Co-Director of Value Research, Portfolio Manager

Mark M. Adelmann, CFA, CPA

Mark M. Adelmann, CFA, CPA

Partner, Portfolio Manager, Analyst

Lisa Z. Ramirez, CFA

Lisa Z. Ramirez, CFA

Partner, Portfolio Manager, Analyst

Alex A. Ruehle, CFA

Alex A. Ruehle, CFA

Partner, Portfolio Manager, Analyst

Fund Information & Investment Minimums

Retail Class Institutional Class2
Ticker WTSVX WISVX
CUSIP 957904535 957904493
Inception Date 12/13/2004 9/28/2007
Distribution Frequency Annually Annually
Minimum to open a new regular account: $2,500 $250,000
Minimum to open a new retirement, education1 or UGMA/UTMA account: $1,000 $250,000
Minimum to open an Automatic Investment Plan Account: $1,000 $250,000
Automatic Investments: $25/month per Fund -
Minimum to add to any type of account: $25 -
Retail Class
Ticker WTSVX
CUSIP 957904535
Inception Date 12/13/2004
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
Institutional Class2
Ticker WISVX
CUSIP 957904493
Inception Date 9/28/2007
To open a new regular account: $250,000
To open a new retirement, education1 or UGMA/UTMA account: $250,000
To open an Automatic Investment Plan Account: $250,000
Click here for information regarding the 2013 merger of the Westcore Small-Cap Opportunity Fund into the Westcore Small-Cap Value Dividend Fund.
Investing in small-cap funds generally will be more volatile and loss of principal could be greater than investing in large-cap funds.
Dividends are not guaranteed. A company’s future abilities to pay dividends may be limited and a company may cease paying dividends at any time.

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.
Lisa Z. Ramirez, CFA is a registered representative of ALPS Distributors, Inc.
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.
2 The minimum investment in the Institutional Class shares is $250,000. Investors generally may meet the minimum investment amount by aggregating multiple accounts with common ownership within the Fund. Common ownership includes individual and joint accounts as well as accounts where an investor has beneficial ownership through acting as a custodian for a minor account or as a beneficiary to a trust account. In addition, Institutional Class accounts offered through a financial intermediary may meet the $250,000 minimum investment amount by aggregating multiple accounts within the Fund, however each separate account must meet a minimum investment requirement of $10,000. Exceptions to the Institutional Class minimums may apply for qualified requirement plans and other account types with lower or no networking and/or omnibus fees charged to the Funds.
 
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

Derek R. Anguilm, CFA
Derek R. Anguilm, CFA

Partner, Co-Director of Value Research, Portfolio Manager

2000 to Present: Denver Investments
1999: Everen Securities, Research Assistant
Education:

BS – Metropolitan State College of Denver
Member of CFA Institute and CFA Society Colorado

Troy Dayton, CFA
Troy Dayton, CFA

Partner, Co-Director of Value Research, Portfolio Manager

2002 to Present: Denver Investments
2001 to 2002: Jurika and Voyles, Equity Research Analyst
1998 to 2001: Dresdner RCM Global Investors, Equity Research Associate
1996 to 1998: Jurika and Voyles, Equity Research Associate
1996: Citibank, Trading Support Officer
Education:

BSBA – Colorado State University
Member of CFA Institute and CFA Society Colorado

Mark M. Adelmann, CFA, CPA
Mark M. Adelmann, CFA, CPA

Partner, Portfolio Manager, Analyst

1995 to Present: Denver Investments
1979 to 1995: Deloitte & Touche, Senior Manager
Education:

BS – Oral Roberts University
Member of CFA Institute and CFA Society Colorado
Member of the American Institute of CPAs and the Colorado Society of CPAs

Lisa Z. Ramirez, CFA
Lisa Z. Ramirez, CFA

Partner, Portfolio Manager, Analyst

1989 to Present: Denver Investments
Education:

BS – University of Colorado; MBA – Regis University
Member of CFA Institute and CFA Society Colorado

Alex A. Ruehle, CFA
Alex A. Ruehle, CFA

Partner, Portfolio Manager, Analyst

2008 to Present: Denver Investments
2006 to 2007: First Western Financial Services, Inc., Intern
Education:

BS and MBA – University of Denver
Member of CFA Institute and CFA Society Colorado

Jennifer B. Oldland
Jennifer B. Oldland

Vice President, Analyst

2006 to Present: Denver Investments
Education:

BS – Colorado State University

Guangyan (Yan) Qin, CFA
Guangyan (Yan) Qin, CFA

Vice President, Analyst

2008 to Present: Denver Investments
2007: Investment Protection Services, Wealth Management Intern
2007: First Data Corporation, Treasury Analyst Intern
2005: China Construction Bank, Intern
Education:

BS – University of International Business and Economics, Beijing, China; MS – University of Denver
Member of CFA Institute and CFA Society Colorado

Robbie A. Steiner, CFA
Robbie A. Steiner, CFA

Vice President, Analyst

2014 to Present: Denver Investments
2012 to 2013: BMO Capital Markets, Investment Banking Associate
2008 to 2010: Transamerica Investments, Mutual Fund Wholesaler
Education:

BBA – University of Georgia, MBA – Emory University
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 and Lisa Z. Ramirez, CFA are registered representatives 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: 11/30/2017
Annualized Returns (%)
Periods Ended: 11/30/2017
1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years Since Inception
Westcore Small-Cap Value Dividend Fund 2.21 8.23 -0.24 3.53 6.78 12.23 6.64 7.14
Westcore Small-Cap Value Dividend Fund Institutional 2.20 8.21 -0.08 3.69 6.97 12.44 6.78 7.25
Russell 2000® Value Index 2.89 10.32 8.88 13.37 10.89 14.16 8.18 7.76
  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 Small-Cap Value Dividend Fund 6.41 0.66 -1.92 12.86 9.05 11.37 5.74 7.10
Westcore Small-Cap Value Dividend Fund Institutional 6.40 0.74 -1.76 13.09 9.24 11.60 5.89 7.21
Russell 2000® Value Index 7.08 5.11 5.68 20.55 12.12 13.27 7.14 7.61
Westcore Small-Cap Value Dividend Fund
Monthly Returns(%) as of 11/30/2017
1 Month 2.21
3 Months 8.23
YTD -0.24
Annualized Returns(%) as of 11/30/2017
1 Year 3.53
3 Years 6.78
5 Years 12.23
10 Years 6.64
Since Inception 7.14
Westcore Small-Cap Value Dividend Fund Institutional
Monthly Returns(%) as of 11/30/2017
1 Month 2.20
3 Months 8.21
YTD -0.08
Annualized Returns(%) as of 11/30/2017
1 Year 3.69
3 Years 6.97
5 Years 12.44
10 Years 6.78
Since Inception 7.25
Russell 2000® Value Index
Monthly Returns(%) as of11/30/2017
1 Month 2.89
3 Months 10.32
YTD 8.88
Annualized Returns(%) as of 11/30/2017
1 Year 13.37
3 Years 10.89
5 Years 14.16
10 Years 8.18
Since Inception 7.76
Westcore Small-Cap Value Dividend Fund
Monthly Returns(%) as of 9/30/2017
1 Month 6.41
3 Months 0.66
YTD -1.92
Annualized Returns(%) as of9/30/2017
1 Year 12.86
3 Years 9.05
5 Years 11.37
10 Years 5.74
Since Inception 7.10
Westcore Small-Cap Value Dividend Fund Institutional
Monthly Returns(%) as of 9/30/2017
1 Month 6.40
3 Months 0.74
YTD -1.76
Annualized Returns(%) as of 9/30/2017
1 Year 13.09
3 Years 9.24
5 Years 11.60
10 Years 5.89
Since Inception 7.21
Russell 2000® Value Index
Monthly Returns(%) as of 9/30/2017
1 Month 7.08
3 Months 5.11
YTD 5.68
Annualized Returns(%) as of 9/30/2017
1 Year 20.55
3 Years 12.12
5 Years 13.27
10 Years 7.14
Since Inception 7.61
Retail Class Annual Expense Ratio -- Gross: 1.46%, Net: 1.31%
Institutional Class Annual Expense Ratio -- Gross: 1.25%, Net: 1.09%

Calendar Year Returns (%)

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Westcore Small-Cap Value Dividend Fund 29.72 -8.13 6.46 36.49 9.69 -0.31 27.03 22.08 -33.57 -3.38
Westcore Small-Cap Value Dividend Fund Institutional 29.98 -7.98 6.62 36.86 9.78 -0.31 27.15 22.16 -33.51 -3.32
Russell 2000® Value Index 31.74 -7.47 4.22 34.52 18.05 -5.50 24.52 20.57 -28.92 -9.78
Westcore Small-Cap Value Dividend Fund
2016 29.72
2015 -8.13
2014 6.46
2013 36.49
2012 9.69
2011 -0.31
2010 27.03
2009 22.08
2008 -33.57
2007 -3.38
Westcore Small-Cap Value Dividend Fund Institutional
2016 29.98
2015 -7.98
2014 6.62
2013 36.86
2012 9.78
2011 -0.31
2010 27.15
2009 22.16
2008 -33.51
2007 -3.32
Russell 2000® Value Index
2016 31.74
2015 -7.47
2014 4.22
2013 34.52
2012 18.05
2011 -5.50
2010 24.52
2009 20.57
2008 -28.92
2007 -9.78

Investing in small-cap funds generally will be more volatile and loss of principal could be greater than investing in large-cap funds.
Dividends are not guaranteed. A company’s future abilities to pay dividends may be limited and a company may cease paying dividends at any time.
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 certain investment advisory and/or administration fees and/or to reimburse other expenses from April 30, 2017 until at least April 30, 2018. The first waiver/reimbursement applies so that the ratio of expenses to average net assets, as reported in the Fund’s financial statements, will be no more than a fixed percentage for the Fund’s Retail Class for such period. Please see the Fund’s Prospectus for more information. The second waiver/reimbursement applies so that Fund level Other Expenses (as defined in the Fund’s financial statements) for the Institutional Class will be in the same proportion as the Retail Class waivers/reimbursements. The third waiver/reimbursement applies so that the institutional class-specific Other Expenses are reimbursed. The Adviser has contractually agreed to waive/reimburse all of these class-specific Other Expenses, but only to the extent that the difference between the net Institutional Class and net Retail Class expense ratios, after applying the waiver/reimbursement, does not exceed 25 basis points. These agreements may not be terminated or modified 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 9/30/2017

 

Market Overview

After a weak start to the quarter, value stocks experienced a bounce as the potential for tax reform fueled optimism that lower corporate and individual taxes would boost economic growth. In addition, the Federal Reserve left rates unchanged and, despite recent inflation data remaining low, did not appear to alter its rate policy plans, which include at least one more rate hike in 2017. The continuation of gradual economic growth and the Fed’s normalization of monetary policy were additional drivers of more economically sensitive stocks, such as domestic small-cap value stocks. Importantly, the market’s historically high valuation levels, combined with the backdrop of weak earnings growth, has appeared to increase investors’ skittishness. This has resulted in a lack of tolerance for companies that fail to hit financial targets or reduce earnings estimates. While stocks that disappointed were hit hard, stocks that met expectations were bid up, regardless of valuation levels. 

Fund Performance

Although value stocks began a rebound in September, the Westcore Small-Cap Value Dividend Fund’s 0.66% return for the third quarter significantly lagged the 5.11% return of its benchmark, the Russell 2000® Value Index. Our strategy tends to lag in momentum-driven markets such as we’ve seen recently. This quarter’s return was consistent with that pattern and, unfortunately, we exacerbated the downside with mistakes in fundamental projections for a handful of stocks.

Contributors to Return

The sectors that contributed most to the Fund’s return relative to its benchmark in the quarter were technology and energy. The Fund’s top performer for the quarter was oil and gas exploration company Enerplus Corp. Driven by growth in its core North Dakota acreage, Enerplus beat production cost expectations and raised oil production guidance for the year. Radian Group Inc., a leading mortgage insurer, reported solid second quarter earnings that beat estimates and assuaged concerns regarding an earnings miss in the first quarter. Application software developer Progress Software Corp. experienced share price appreciation as the company announced favorable preliminary quarterly results and boosted its quarterly dividend payment. Fund holding TiVo Corp., a provider of entertainment technology and software offerings, outperformed in the quarter due largely to the extension of its intellectual property license with AT&T through 2024. Additionally, the renewal layered intellectual property for TiVo and Rovi, which acquired TiVo in 2016, into one agreement. Also among the Fund’s top contributors in the quarter was Independent Bank Corp. This bank holding company reported solid results driven by strong margin income and fee revenues. The company’s profits from lending activity beat expectations and management increased both margin and loan growth estimates for the year.

Detractors from Return

The Fund’s weakest sectors relative to the benchmark for the quarter were the consumer, capital goods, and medical/healthcare. Within the consumer sector, brick and mortar retailers were hit particularly hard. Shifts in consumer spending, fashion trends, and shopping habits accelerated and weighed heavily on sales, profitability, and forward outlooks. As we mentioned earlier, the markets had little tolerance for companies that disappointed, regardless of valuations. This was a significant departure from the past, when investors tended to look beyond near-term disappointments and instead focused on identifying companies that they believed would recover, driven by either internal or external factors. With the growing presence of Amazon and the landscape rapidly being changed by millennials’ behaviors, the competitive environment has become drastically worse for many brick and mortar retailers. This has raised the risk profile of the consumer cyclicals industry. We did not place a high enough probability on the downside scenarios of some of the Fund’s consumer cyclical holdings. We have since reduced the Fund’s exposure and are looking for a bottom in fundamentals before we will consider increasing this exposure.

From an individual stock standpoint, AMC Entertainment Holdings Inc., an owner and operator of movie theaters, detracted the most from the Fund’s performance in the consumer sector. Investor concerns about Premium Video on Demand (PVOD), a plan that would offer movies to home viewers within the 90-day period in which theaters typically have exclusive rights, and MoviePass, a service in which consumers pay a monthly fee to see up to one movie per day, were only exacerbated by industry box office performance that marked the worst quarterly sales in a decade. Sporting goods retailer Big 5 Sporting Goods Corp. also detracted from performance as second quarter same-store sales disappointed. This was a result of a more competitive promotional environment than was expected, which, in turn, has delayed the benefits of industry consolidation. Bloomin’ Brands Inc., an operator of casual dining restaurants, also detracted from the Fund’s performance. Challenging quarterly same-store sales were the driver of reduced near-term guidance for earnings estimates. Additionally, recent hurricane disruptions added another layer of concern and intensified share price underperformance. Capital Goods holding Dean Foods Co., a processor and distributor of dairy products, was the Fund’s largest detractor during the quarter. The company’s weaker-than-expected quarterly results and lowered future earnings estimates were attributable to high production in the dairy industry. This resulted in aggressive pricing in certain markets which compressed profitability and led to Dean’s earnings miss. Aceto Corp. is a manufacturer of generic pharmaceuticals and active ingredients. This medical/healthcare sector holding underperformed upon reporting weak financial results due to a combination of competitive headwinds and delays in launching new products.

Outlook and Positioning

Historically, valuation has been the largest factor that dictates stock performance over time. However, in shorter periods, that is often not the case and this year has, so far, been an example. We believe it is important to take a longer-term view as these types of momentum-driven markets have tended to be relatively short lived. In the current market, which may be overdue for a correction, we believe our strategy is positioned well for the future. In the meantime, we remain focused on our value-oriented dividend-focused process, which we have refined over the past 18 years. We continue to work on sharpening our execution while also learning from our mistakes and stringently reviewing our underperforming stocks. We have added to positions that we believe have presented us with an opportunity on the pullback, where the long-term picture is unchanged despite the near-term weakness. We have sold positions that we believe will be unable to achieve our original predictions or where the risk to achieving it outweighs the potential reward. We continue to find opportunities across sectors as the market disregards valuation and are confident that the Fund will bounce back from this tough period.

Stock Performance (3 months ended 9/30/2017)
Top 5 Stocks Average Weight Contribution to Return
Enerplus Corp. 3.20% 0.66%
Radian Group Inc. 2.40 0.32
Progress Software Corp. 1.01 0.25
TiVo Corp. 2.69 0.21
Independent Bank Corp. 1.62 0.19
Bottom 5 Stocks Average Weight Contribution to Return
Bloomin’ Brands Inc. 1.60% -0.30%
Aceto Corp. 1.03 -0.35
Big 5 Sporting Goods Corp. 0.73 -0.48
AMC Entertainment Holdings Inc. 1.57 -0.72
Dean Foods Co. 2.20 -1.05
Top 5 Stocks
Enerplus Corp.
Average Weight 3.20%
Contribution to Return 0.66%
Radian Group Inc.
Average Weight 2.40
Contribution to Return 0.32
Progress Software Corp.
Average Weight 1.01
Contribution to Return 0.25
TiVo Corp.
Average Weight 2.69
Contribution to Return 0.21
Independent Bank Corp.
Average Weight 1.62
Contribution to Return 0.19
Bottom 5 Stocks
Bloomin’ Brands Inc.
Average Weight 1.60%
Contribution to Return -0.30%
Aceto Corp.
Average Weight 1.03
Contribution to Return -0.35
Big 5 Sporting Goods Corp.
Average Weight 0.73
Contribution to Return -0.48
AMC Entertainment Holdings Inc.
Average Weight 1.57
Contribution to Return -0.72
Dean Foods Co.
Average Weight 2.20
Contribution to Return -1.05
Investing in small-cap funds generally will be more volatile and loss of principal could be greater than investing in large-cap funds.
Dividends are not guaranteed. A company’s future abilities to pay dividends may be limited and a company may cease paying dividends at any 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.
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 Small-Cap Value Dividend 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.

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