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 12/31/17. 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 12/31/17. 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: 1/31/2018
Annualized Returns (%)
Periods Ended: 1/31/2018
1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years Since Inception
Westcore Small-Cap Value Dividend Fund 1.50 2.08 1.50 0.43 8.48 10.41 7.48 7.03
Westcore Small-Cap Value Dividend Fund Institutional 1.59 2.17 1.59 0.61 8.70 10.63 7.63 7.15
Russell 2000® Value Index 1.23 3.17 1.23 9.95 11.56 11.98 8.76 7.68
  Monthly Returns (%)
Periods Ended: 12/31/2017
Annualized Returns (%)
Periods Ended: 12/31/2017
1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 Years Since Inception
Westcore Small-Cap Value Dividend Fund -1.61 0.08 -1.84 -1.84 5.37 11.19 6.71 6.96
Westcore Small-Cap Value Dividend Fund Institutional -1.59 0.09 -1.67 -1.67 5.56 11.41 6.85 7.07
Russell 2000® Value Index -0.95 2.05 7.84 7.84 9.55 13.01 8.17 7.63
Westcore Small-Cap Value Dividend Fund
Monthly Returns(%) as of 1/31/2018
1 Month 1.50
3 Months 2.08
YTD 1.50
Annualized Returns(%) as of 1/31/2018
1 Year 0.43
3 Years 8.48
5 Years 10.41
10 Years 7.48
Since Inception 7.03
Westcore Small-Cap Value Dividend Fund Institutional
Monthly Returns(%) as of 1/31/2018
1 Month 1.59
3 Months 2.17
YTD 1.59
Annualized Returns(%) as of 1/31/2018
1 Year 0.61
3 Years 8.70
5 Years 10.63
10 Years 7.63
Since Inception 7.15
Russell 2000® Value Index
Monthly Returns(%) as of1/31/2018
1 Month 1.23
3 Months 3.17
YTD 1.23
Annualized Returns(%) as of 1/31/2018
1 Year 9.95
3 Years 11.56
5 Years 11.98
10 Years 8.76
Since Inception 7.68
Westcore Small-Cap Value Dividend Fund
Monthly Returns(%) as of 12/31/2017
1 Month -1.61
3 Months 0.08
YTD -1.84
Annualized Returns(%) as of12/31/2017
1 Year -1.84
3 Years 5.37
5 Years 11.19
10 Years 6.71
Since Inception 6.96
Westcore Small-Cap Value Dividend Fund Institutional
Monthly Returns(%) as of 12/31/2017
1 Month -1.59
3 Months 0.09
YTD -1.67
Annualized Returns(%) as of 12/31/2017
1 Year -1.67
3 Years 5.56
5 Years 11.41
10 Years 6.85
Since Inception 7.07
Russell 2000® Value Index
Monthly Returns(%) as of 12/31/2017
1 Month -0.95
3 Months 2.05
YTD 7.84
Annualized Returns(%) as of 12/31/2017
1 Year 7.84
3 Years 9.55
5 Years 13.01
10 Years 8.17
Since Inception 7.63
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 (%)

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Westcore Small-Cap Value Dividend Fund -1.84 29.72 -8.13 6.46 36.49 9.69 -0.31 27.03 22.08 -33.57
Westcore Small-Cap Value Dividend Fund Institutional -1.67 29.98 -7.98 6.62 36.86 9.78 -0.31 27.15 22.16 -33.51
Russell 2000® Value Index 7.84 31.74 -7.47 4.22 34.52 18.05 -5.50 24.52 20.57 -28.92
Westcore Small-Cap Value Dividend Fund
2017 -1.84
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
Westcore Small-Cap Value Dividend Fund Institutional
2017 -1.67
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
Russell 2000® Value Index
2017 7.84
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

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 12/31/17. 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 12/31/2017

 

Market Overview

Markets climbed higher in the fourth quarter based on the passage of the tax bill and hopes that lower corporate and individual tax rates would accelerate economic growth. Value stocks underperformed growth stocks and small caps underperformed large caps, as was the case throughout the year, as valuation remained out of favor and the momentum-driven market continued. Investors focused on stocks that had the highest sales growth and best fundamental execution, regardless of valuation levels. In this environment, it was not surprising that dividend-paying and less volatile stocks underperformed. 

Fund Performance

Our value-oriented, dividend-focused strategy tends to lag in momentum-driven markets, and this quarter and year were consistent with that pattern. We exacerbated the downside with mistakes in fundamental projections for a handful of stocks and, unfortunately, the penalty for those mistakes was greater than it could have been in a valuation-driven market. The Westcore Small-Cap Value Dividend Fund‘s fourth quarter return of 0.08% lagged the 2.05% return of its benchmark, the Russell 2000® Value Index.

Contributors to Return

The sectors that contributed most to the Fund’s return relative to its benchmark in the quarter were basic materials, capital goods, and utilities. The Fund’s top performer for the quarter was Artisan Partners Asset Management Inc. This boutique asset manager reported better-than-expected operating results driven by lower expenses. While asset flow trends are still a headwind, new smaller alternative-like products have been gaining traction. The passage of tax reform has also served as a tailwind to asset manager stock performance, as investors anticipate accelerating economic growth to support market valuations, and attract investment flows into actively managed equity products. Radian Group Inc., a leading mortgage insurer, reported solid third quarter earnings that beat street expectations. Strength in the mortgage business, driven by strong credit quality and better premiums, coupled with a restructuring of its services business, resulted in an improved outlook by management. Sinclair Broadcasting Group Inc., a diversified television broadcaster, experienced share price appreciation after the Federal Communications Commission took steps toward deregulating the broadcasting industry. An increase or elimination of the media ownership cap would allow Sinclair to combine with Tribune Media and divest fewer TV stations as a result. In addition, the stock reacted favorably to the passing of tax reform, as a lower cash tax rate should drive free cash flow higher for Sinclair and other cash-tax paying Broadcasting companies. Fund holding, ITT Inc., a manufacturer of pumps, valves, and brake pads, outperformed due largely to favorable results from its third quarter earnings report. The company demonstrated organic revenue growth supported by strong transportation gains in auto and rail. Additionally, margins benefited from increased volumes and operational improvement across the company’s Industrial Process (IP) and Connect/Control Technologies segments. Also among the Fund’s top contributors this quarter was ManTech International Corp., a government technologies and solutions service provider. Improved contracting capabilities coupled with favorable customer demand and funding trends drove booking levels to historic highs, while the award pipeline remained robust.

Detractors from Return

The Fund’s weakest sectors relative to the benchmark for the quarter were REITs, technology, and consumer. AmTrust Financial Services Inc., an insurer focused on small businesses in lower risk industries, was the Fund’s largest detractor during the quarter. The stock pulled back on lower-than-expected earnings that resulted from record-high catastrophe losses due to the severe hurricane season. In addition, the stock has been volatile while management repositions the company through a partial sale of the fee business and the strengthening of reserves and capital raises. We believe these actions position the company well to accelerate growth and improve returns in the coming quarters. GEO Group Inc., a leading provider of prisons, prison operations, and post-release monitoring and re-entry services, underperformed despite reporting an in-line third quarter. Concerns around U.S. Immigration and Customs Enforcement’s (ICE) interior enforcement transition and uncertainties regarding the fiscal year 2018 House Appropriations Budget caused the stock to pull back in December. We believe the transition at ICE is temporary and that utilization rates will continue to recover in 2018. The company also has several contracts that could be awarded in the next six to nine months as the proposed House appropriations budget calls for a demand increase in ICE and U.S. Marshals Service beds. TiVo Corp., a provider of entertainment technology and software offerings, also detracted from Fund performance. The stock struggled as a ruling in an intellectual property complaint filed by TiVo was delayed until late November. While certain intellectual property infringement was ultimately confirmed in December, the company charged with infringement has issued notice of appeal. We believe these issues will be resolved in the coming months. Within the consumer sector, Travelport Worldwide Ltd., a provider of global distribution systems for the travel industry, was a detractor despite reporting an in-line quarter. Investors were anticipating an increase to fourth quarter guidance for earnings estimates driven by new business contract wins, but management indicated that costs related to the launch of these new customers has been offsetting incremental profitability in the near term. We believe Travelport is well positioned to benefit from continued growth in global travel and the emerging middle class in India and Asia. A leading owner and franchisor of residential real estate brokerages, along with corporate relocation and title insurance, Realogy Holdings Corp. also detracted from performance. The company reported lower-than-expected earnings and reduced forward guidance for earnings estimates due to higher costs. The stock also pulled back on market concerns regarding the impact of tax reform on the sale of higher-priced homes in high tax states. We see a very favorable outlook for housing and a significantly lower tax rate for Realogy as significant tailwinds to sales and cash flow growth going forward.

Outlook and Positioning

With the passing of tax reform, markets finally have a reason to believe that economic growth will accelerate. Such growth is necessary to support historically high equity valuation levels and fuel further stock price appreciation. The question remains whether tax reform will drive capital expenditures and consumer spending high enough to offset wage pressure and other inflation drivers. This could allow the Fed to normalize policy rates and accelerate the shrinkage of its balance sheet, thereby putting a damper on the economy’s growth rate. An accelerating economy is typically more beneficial to economically-sensitive, domestic-focused, and smaller-cap stocks, and tax reform should positively impact higher tax sectors, such as financials, consumer discretionary, and capital goods. We believe our strategy is well-positioned in this type of environment and we are working hard to improve our stock selection and bounce back, as we have in the past, from a tough year of performance.

Stock Performance (3 months ended 12/31/2017)
Top 5 Stocks Average Weight Contribution to Return
Artisan Partners Asset Management Inc. 1.57% 0.33%
Radian Group Inc. 2.46 0.28
Sinclair Broadcast Group Inc. 1.59 0.27
ITT Inc. 1.32 0.24
ManTech International Corp. 1.90 0.24
Bottom 5 Stocks Average Weight Contribution to Return
Travelport Worldwide Ltd. 1.41% -0.25%
GEO Group Inc. 2.00 -0.29
Realogy Holdings Corp. 1.43 -0.30
TiVo Corp. 2.71 -0.57
AmTrust Financial Services Inc. 1.93 -0.58
Top 5 Stocks
Artisan Partners Asset Management Inc.
Average Weight 1.57%
Contribution to Return 0.33%
Radian Group Inc.
Average Weight 2.46
Contribution to Return 0.28
Sinclair Broadcast Group Inc.
Average Weight 1.59
Contribution to Return 0.27
ITT Inc.
Average Weight 1.32
Contribution to Return 0.24
ManTech International Corp.
Average Weight 1.90
Contribution to Return 0.24
Bottom 5 Stocks
Travelport Worldwide Ltd.
Average Weight 1.41%
Contribution to Return -0.25%
GEO Group Inc.
Average Weight 2.00
Contribution to Return -0.29
Realogy Holdings Corp.
Average Weight 1.43
Contribution to Return -0.30
TiVo Corp.
Average Weight 2.71
Contribution to Return -0.57
AmTrust Financial Services Inc.
Average Weight 1.93
Contribution to Return -0.58
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 12/31/17. 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 12/31/17. 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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