UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08397
THE MARSICO INVESTMENT FUND
(Exact name of registrant as specified in charter)
1200 17th Street, Suite 1300
Denver, CO 80202
(Address of principal executive offices) (Zip code)
Christopher J. Marsico
The Marsico Investment Fund
1200 17th Street, Suite 1300
Denver, CO 80202
(Name and address of agent for service)
Copies to:
Sander M. Bieber, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, D.C. 20006
Registrant's telephone number, including area code: (303)454-5600
Date of fiscal year end: September 30
Date of reporting period: March 31, 2004
Item 1 - Reports to Stockholders
MARSICO FUNDS/R o SEMI-ANNUAL REPORT o MARCH 31, 2004
The investments we put the highest value on
cannot be found in a portfolio.
[LOGO] MARSICO FUNDS/R
Helping you appreciate life/SM
[PHOTO GRAPHIC]
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TABLE OF CONTENTS
SEMI-ANNUAL SHAREHOLDER LETTER 3
MARSICO FOCUS FUND 15
Fund Overview 15
Schedule of Investments 16
Statement of Assets and Liabilities 19
Statement of Operations 20
Statements of Changes in Net Assets 21
Financial Highlights 22
MARSICO GROWTH FUND 24
Fund Overview 24
Schedule of Investments 25
Statement of Assets and Liabilities 29
Statement of Operations 30
Statements of Changes in Net Assets 31
Financial Highlights 32
MARSICO 21ST CENTURY FUND 34
Fund Overview 34
Schedule of Investments 35
Statement of Assets and Liabilities 39
Statement of Operations 40
Statements of Changes in Net Assets 41
Financial Highlights 42
MARSICO INTERNATIONAL OPPORTUNITIES FUND 44
Fund Overview 44
Schedule of Investments 45
Statement of Assets and Liabilities 51
Statement of Operations 52
Statements of Changes in Net Assets 53
Financial Highlights 54
NOTES TO FINANCIAL STATEMENTS 56
This report is submitted for the general information of Marsico Funds
shareholders. It is not authorized for distribution unless preceded or
accompanied by an effective prospectus, which contains more complete information
about the Funds.
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APRIL 2004
DEAR SHAREHOLDER:
Writing a report for the Marsico Funds that encompasses the six months ending
March 31, 2004 presents the challenge of reviewing investment results in a
reasonable number of pages. To present a helpful summary for you, we thought it
would be appropriate to start with a review of each Fund's performance for the
six-month period ending March 31, 2004. This section is meant to provide a brief
retrospective for the past six months, and to explain the main reasons for the
Funds' investment results - while simultaneously trying to avoid repetition of
prior shareholder correspondence. Then we shift gears and offer a few comments
regarding the Funds' current investment posture. For a detailed discussion of
our economic and market outlook, we would refer you to the most recent quarterly
shareholder letter, mailed to you a few weeks ago.
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INVESTMENT REVIEW BY TOM MARSICO
MARSICO FOCUS FUND AND MARSICO GROWTH FUND
The Focus Fund and Growth Fund posted total returns of 11.34% and 12.49%,
respectively, for the six months ending March 31, 2004.(1) For comparative
purposes, the S&P 500/R Index - which we consider to be the Fund's primary
equity benchmark - had a total return of 14.08% over the same period of time.(1)
The Funds reached 61/4 years of operating history as of the end of March 2004.
Please see the Fund overviews for more information regarding the Funds' longer-
term investment results. The performance data quoted here represents past
performance, and past performance is not a guarantee of future results.
Investment return and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Current performance may be lower or higher than the performance
information quoted. To obtain performance information current to the most recent
month-end, please call 888-860-8686 or visit www.marsicofunds.com.
The Focus Fund and Growth Fund may often invest in similar growth companies.
Still, their performance may differ at times because the Focus Fund invests in a
relatively more concentrated portfolio of securities, while the Growth Fund may
hold some positions not present in the Focus Fund.
The six-month period encompassed in this report was a "bull market" for US
large-capitalization companies, as represented by the S&P 500/R Index, as
investors seemed cheered by signs of an improved economic environment, continued
fiscal and monetary stimulus, and encouraging corporate profit reports. The
period was characterized by a broad-based rally for equities, with the vast
majority of sectors and industries having strong gains. All 10 economic sectors
that comprise the S&P 500/R Index had a positive return for the period from
October 1, 2003 through March 31, 2004. Eight of the ten sectors had returns in
excess of 10%. Energy (+21%), Materials (+21%), Telecommunications Services
(+19%), Financials (+17%), and Consumer Discretionary (+16%) were the market
leaders. Health Care, with a gain of 7%, was the weakest performing economic
sector, while Information Technology posted a return of 10%.
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As a further testament to the overall strength of the equity markets, we note
that 13 industry groups (out of 20 in the S&P 500/R Index) had gains of 15% or
higher, while five industries experienced returns of 20% or more, including:
o Hotels/Restaurants/Leisure 27%
o Consumer Durables and Apparel 26%
o Insurance 21%
o Communications Services and Supplies 21%
o Automobiles and Components 21%
Although the Funds generated relatively strong absolute results over the past
six months, their overall returns did not quite keep up with the performance of
the S&P 500/R Index. To a significant extent, that "shortfall" could be
attributed to the Funds' middling performance in the fourth quarter of 2003.
Investment results for the Growth Fund were stronger than the S&P 500/R Index
during the first quarter of 2004, while the Focus Fund slightly underperformed
the Index.
There were several areas of strength for the Funds during the past six months.
These included:
o Health Care Investments-The Funds' aggregate holdings in this sector gained
more than 20% over the six-month period, substantially outpacing the
sector's return (8%) within the S&P 500/R Index. Service provider
UnitedHealth Group (28%), medical device company Boston Scientific (33%),
and biotechnology company Genentech (32%) were among both Funds' best-
performing holdings. In addition, the Growth Fund benefited from investments
in medical testing and device companies Quest Diagnostics (37%) and Zimmer
Holdings (34%). (The Focus Fund did not own Zimmer Holdings during the six-
month period, and sold its position in Quest Diagnostics prior to a
significant rally in the stock.)(2)
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o Information Technology-The Funds' investment returns benefited on several
levels within this sector. Both Funds maintained an underweighted posture
(as compared to the S&P 500/R Index) in the Software and Services industry,
which was the weakest-performing industry in the Index over the six-month
period. QUALCOMM, a company emphasizing wireless technology, was one of the
Funds' larger individual holdings, and gained 60% over the six-month period.
That return helped buoy overall Fund performance by a material degree.(2)
o Homebuilding-related-Both Funds benefited from investments in the
homebuilding industry. The Growth Fund on average had a larger allocation
(including MDC Corporation and Lennar Corp. (Class A)) to this industry than
the Focus Fund, which was one of the primary reasons why it outperformed the
Focus Fund during the six-month period.(2)
The Funds' limited underperformance compared to the S&P 500/R Index could be
ascribed primarily to the Funds' not having investments in certain economic
sectors such as Energy, Materials, and Insurance, which performed well over the
six-month period. (As noted earlier, these sectors/industries were among the
strongest areas of the stock market over the six-month period covered in this
report.) Additionally, the Funds were negatively impacted by the following
factors:
o Retailing Investments-The retailing industry, as represented by the S&P
500/R Index, had a return of more than 16% for the six months ending March
31, 2004. The Funds' retailing investments, in aggregate, experienced a
modest decline over that period of time. The primary "culprits" for us were
Tiffany & Co. (3% return) and Amazon (-14% decline in the Focus Fund, and a
-12% decline in the Growth Fund prior to being sold).(2)
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o Diversified Financials-Similar to the retailing industry, this area was one
of the better-performing industries (+17%) for the S&P 500/R Index. Although
the Funds' Diversified Financials holdings produced positive returns in the
aggregate, they lagged the industry's return in the benchmark by a
considerable degree. This was primarily attributable to the Funds' positions
in SLM Corporation, which had a return of just 8%. SLM was one of the Funds'
largest holdings, which exacerbated its relative performance impact.(2)
o Industrials-Capital Goods and Transportation holdings adversely impacted
Fund performance. In the Capital Goods industry, the Funds had a significant
weighting on average in General Electric, whose 4% return, although
positive, substantially trailed the performance of the S&P 500/R Index.
Meanwhile, certain Airline positions (e.g., RyanAir Holdings in the Focus
Fund and JetBlue Airways in the Growth Fund) had significant negative
returns during the period in which they were owned in the Funds. RyanAir
Holdings sustained a -18% decline prior to being sold, while JetBlue Airways
fell by -36% before it, too, was sold.(2)
o Media-Comcast Corporation, which declined by -13% during the time
it was owned in both Funds, had a materially negative impact on investment
results.(2)
As of March 31, 2004, the Funds' primary sector allocations were in Consumer
Discretionary, Health Care, Industrials, and Financials. During the previous six
months, the Funds' positions in Information Technology companies were reduced
(e.g., positions in companies such as Intel and Cisco Systems were sold), while
investments were increased in areas such as Health Care, Financials, Consumer
Staples, and Industrials. As of March 31, the Funds had little or no exposure in
areas such as Energy, Utilities, and Telecommunications Services.(2)
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I want to take a moment to acknowledge the contributions of Jim Hillary, who co-
managed the Focus and Growth Funds with me during this period, and his departure
from our Company on April 30, 2004. We are sorry to see Jim leave. Jim was one
of the original partners when we created Marsico Capital Management in 1997.
Over the past 61/2 years, he made numerous contributions to the firm, our
investment process, and our Fund performance. He and I worked closely together
over that entire period of time. All of us will miss Jim, professionally and
personally, and we wish him well with his future endeavors.
Thank you for being an investor in the Fund.
Sincerely,
/s/ Thomas F. Marsico
THOMAS F. MARSICO
PORTFOLIO MANAGER
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INVESTMENT REVIEW BY CORY GILCHRIST
MARSICO 21ST CENTURY FUND
The 21st Century Fund had a total return of 17.39% for the six-month period
ending March 31, 2004.(1) For comparative purposes, the S&P 500/R Index (which
we consider to be the Fund's primary benchmark), Nasdaq Composite Index, and
Wilshire 5000 Index had total returns of 14.08%, 11.90%, and 15.36%,
respectively, over the same period. (The Wilshire 5000 Index is designed to
reflect investment results for the overall US stock market, spanning both large-
and smaller-capitalization companies.)(1) Please see the Fund overviews for more
information regarding the Fund's longer-term investment results. As noted above,
the performance data quoted here represents past performance, and past
performance is not a guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance information quoted. To
obtain performance information current to the most recent month-end, please call
888-860-8686 or visit www.marsicofunds.com.
Over the six-month period covered in this report, several factors influenced the
21st Century Fund's investment results. The most prolific positive factor was
the Fund's investments in the Consumer Discretionary sector. This was a
significant area of emphasis for the Fund throughout the past six months; as of
March 31, 2004, approximately 38% of the Fund's net assets consisted of Consumer
Discretionary holdings. The Fund's total holdings in this sector gained 26%
during the past six months. The Fund benefited in part from being relatively
overweighted in the sector (as compared to its benchmark indexes), while
industry positioning and stock selection also added value. In particular,
investments in two industries were strong performers:
o Consumer Durables-The Fund's investments in this industry appreciated in
aggregate by nearly 55% during the six-month period. These included
homebuilding-related companies (e.g., WCI Communities, which gained 52%) and
Harman International Industries, a manufacturer of high-fidelity audio
products and electronic systems, which had a 61% gain in its
stock price.(2)
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o Hotels/Leisure-The Fund (as compared to its benchmark index) had an
overweighted posture in this industry, which helped investment results. And,
we were fortunate to have success with several related holdings, including
hotel/casino operators Wynn Resorts (93%) and Mandalay Resort Group
(13%).(2)
The Fund's performance was materially impacted, in a positive manner, by
positions owned in the Health Care sector as well as certain holdings in the
Financials sector. In Health Care, the Fund's positions collectively had a
return of 38% during the past six months. More specifically, strong returns were
achieved in equipment/services companies (e.g., UnitedHealth Group, 28%) and
biotechnology (e.g., Genentech, 32%, and Kinetic Concepts, 50%). Kinetic
Concepts was an Initial Public Offering. Within the Financials sector, banking-
related holdings had strong relative returns, including UCBH Holdings (33%), a
San Francisco-based company focused on providing local banking services for
Asian-Americans and others, and Countrywide Financial Credit (15%), a
residential mortgage banking and service company.(2)
A significant "weak link" performance-wise for the Fund was the Industrials
sector, particularly our holdings in the Transportation industry. We sold all of
our Transportation holdings prior to March 31, 2004, but not before sustaining,
in aggregate, a -13% loss on these investments during the six-month period. In
particular, JetBlue Airways (-36% prior to being sold) and RyanAir Holdings
(-12%) negatively impacted performance. Certain retailing holdings also were
relatively weak performers for us. These included Electronic Boutique (-17%
prior to being sold), a video game hardware and software retailer, PetSmart
(-12% prior to being sold), and Select Comfort (4%), a manufacturer of
adjustable-firmness mattresses.(2)
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As of March 31, 2004, the Fund maintained three primary areas of emphasis in
terms of economic sector distribution. These included Consumer Discretionary
(38% of net assets), Financials (31%), and Health Care (12%). During the past
six months, the Fund reduced its allocation to Technology and Industrial
companies. As of March 31, the Fund did not have any significant exposure to
sectors such as Utilities, Telecommunications Services, and Energy.
Thank you for your support.
Sincerely,
/s/ Corydon J. Gilchrist
CORYDON J. GILCHRIST
PORTFOLIO MANAGER
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INVESTMENT REVIEW BY JIM GENDELMAN
MARSICO INTERNATIONAL OPPORTUNITIES FUND
The International Opportunities Fund had a (US$) return of 26.28% for the six-
month period ending March 31, 2004.(1) For comparative purposes, the Morgan
Stanley Capital International EAFE Index, which we consider the Fund's primary
international benchmark, had a total (US$) return of 22.16% for the same
period.(1) Please see the Fund overviews for more information regarding the
Fund's longer-term investment results. As noted above, the performance data
quoted here represents past performance, and past performance is not a guarantee
of future results. Investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost. Current performance may be lower or higher than the
performance information quoted. To obtain performance information current to the
most recent month-end, please call 888-860-8686 or visit www.marsicofunds.com.
Investment results over the past six months were driven primarily by the
following factors:
o Consumer Discretionary-For the six-month period ending March 31, 2004, this
sector was the most significant contributor to the Fund's outperformance as
compared to the Fund's benchmark index. Collectively, the Fund's holdings
had an aggregate total return of nearly 32% for this period. Media
positions, which rose 47%, were particularly strong investments. The Fund's
media holdings included EMI Group, Sogecable (a Spanish media company), and
NTL (a United Kingdom-based broadband communications and services company).
Another individual holding that performed well for the Fund was hotel/casino
operator Wynn Resorts, which rose by nearly 93%. Retailing companies Esprit
Holdings (43%), located in Hong Kong, and Yamada Denki (33%), based in
Japan, also contributed materially to the Fund's results. Sharp Corporation,
a South Korean manufacturer of flat-panel display televisions, gained 23%
during the time it was owned in the Fund.(2)
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o Financial Services-This sector overall was an important contributor to the
Fund's performance, led primarily by the Fund's banking positions, which
gained 34% collectively. Specific positions owned in this sector included
certain Japanese banks (Mitsubishi Financial and UFJ Holdings). Other
banking positions that performed well were Erste Bank der Oster (Austria-
based), OTP Bank (Hungary-based), ICICI Bank (India-based), and Unibanco-
Unaio de Brazil.(2)
o Telecommunications Services-The Fund's investments in this sector gained 83%
in the aggregate for the period in which they were owned during the past six
months. Russia-based Mobile Telesystems, the Fund's sole "pure"
Telecommunications holding as of March 31, gained 79% for the period in
which it was owned during the past six months.(2)
o Select Technology Investments-Investments in industries such as
Semiconductors and Semiconductor Equipment (e.g., Samsung Electronics and
ASM Pacific Technology) and hardware and equipment (e.g., AU Optronics,
Canon, and Keyence) performed well for the Fund. SAP, a Germany-domiciled
software company, gained 29%.(2)
The main areas that detracted from the Fund's performance as compared to its
benchmark index were industries such as Transportation (e.g., regional airline
RyanAir Holdings), Automobiles (e.g., Nissan Motor, BMW), and certain
Technology-related holdings (e.g., Yahoo! Japan Corporation, Sohu Com, and
Nortel Networks).(2)
Neither country allocations nor currency had a material impact in the aggregate
on the Fund's performance. Generally, the Fund's country allocations are a
residual factor in our investment process; we are typically more focused on
sectors, industries, and individual companies in formulating our investment
strategy. In a related vein, currency-related strategies are not a central facet
of the Fund's investment process.
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As of March 31, 2004, the Fund's holdings in terms of economic sector
distribution were allocated primarily to Consumer Discretionary, Financials, and
Information Technology. The Fund's largest country allocations were in Japan,
United Kingdom, Switzerland, and South Korea.
Thank you for including the International Opportunities Fund as part of your
investment program.
Sincerely,
/s/ James G. Gendelman
JAMES G. GENDELMAN
PORTFOLIO MANAGER
(1) The performance returns for the 21st Century Fund and the International
Opportunities Fund reflect a fee waiver in effect; in the absence of such a
waiver, the returns would be reduced. A redemption fee of 2% may be imposed
on redemptions or exchanges of Fund shares owned for 30 days or less. See
the prospectus for more information.
The S&P 500/R Index is a registered trademark of Standard & Poor's
Corporation and is an unmanaged broadly based index of the common stock
prices of 500 large U.S. companies. The Nasdaq Composite Index is an
unmanaged, broad-based index of over 5,000 stocks that consists of all
Nasdaq domestic and non-U.S. based common stocks listed on the Nasdaq Stock
Market. The Morgan Stanley Capital International EAFE Index tracks the
stocks of about 1,000 companies in Europe, Australasia, and the Far East
(EAFE). You cannot invest directly in an index. The Wilshire 5000 Index is
an unmanaged broad-based index of all U.S.- headquartered equity securities
with readily available price data, including over 5,000 capitalization
weighted security returns.
(2) Portfolio composition is subject to change at any time and references to
specific securities, industries and sectors referenced in this letter are
not recommendations to purchase or sell any particular security. See the
accompanying Schedule of Investments for the percent of a Fund's portfolio
represented by the securities or industries mentioned in this letter.
Not authorized for distribution unless preceded or accompanied by a current
Marsico Funds prospectus.
UMB DISTRIBUTION SERVICES, LLC, DISTRIBUTOR FOR THE MARSICO FUNDS.
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FUND OVERVIEW MARCH 31, 2004 (Unaudited)
MARSICO FOCUS FUND
The Focus Fund invests primarily in the common stocks of large companies,
normally a core position of 20-30 common stocks that are selected for their
long-term growth potential.
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PERFORMANCE COMPARISON
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Five Year Average Annual
One Year Average Annual Since Inception
(4/1/03-3/31/04) (4/1/99-3/31/04) (12/31/97-3/31/04)
Marsico Focus Fund 32.69% -0.19% 8.73%
S&P 500/R Index 35.12% -1.20% 3.91%
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NET ASSETS
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3/31/04
$2,785,396,384
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NET ASSET VALUE
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Net Asset Value Per Share $15.02
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TOP FIVE HOLDINGS
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UnitedHealth Group, Inc. 7.13%
Genentech, Inc. 5.92
SLM Corp. 5.29
QUALCOMM, Inc. 5.18
Citigroup, Inc. 4.91
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SECTOR ALLOCATION(2)
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Consumer Non-Cyclical 31.91%
Financial 23.77
Consumer Cyclical 14.92
Industrial 13.77
Communications 11.36
Technology 4.27
GROWTH OF $10,000
Marsico
Focus S&P 500/R
Fund Index
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12/31/1997 10,000 10,000
3/31/1998 12,310 11,395
9/30/1998 12,360 10,600
3/31/1999 17,030 13,498
9/30/1999 17,430 13,548
3/31/2000 23,542 15,920
9/30/2000 22,210 15,347
3/31/2001 15,692 12,469
9/30/2001 13,733 11,262
3/31/2002 15,956 12,500
9/30/2002 13,115 8,955
3/31/2003 12,711 9,404
9/30/2003 15,148 11,140
3/31/2004 16,866 12,708
The performance data quoted here represents past performance, and past
performance is not a guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance information quoted. To
obtain performance information current to the most recent month-end, please call
888-860-8686 or visit www.marsicofunds.com.
The performance included in the table and graph do not reflect the
deduction of taxes on Fund distributions or the redemption of Fund shares.
(1) This chart assumes an initial investment of $10,000 made on December 31,
1997 (inception).
(2) Sector weightings represent the percentage of the Fund's equity investments
in certain general sectors. These sectors may include more than one
industry. The Fund's portfolio composition is subject to change at any
time.
The S&P 500/R Index is a registered trademark of Standard & Poor's
Corporation and is an unmanaged, broadly based index of the common stock
prices of 500 large U.S. companies. You cannot invest directly in an index.
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SCHEDULE OF INVESTMENTS
MARSICO FOCUS FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
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COMMON STOCKS
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ATHLETIC FOOTWEAR
NIKE, Inc. - Class B 526,756 $41,018,490 1.47%
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AUTOMOTIVE - CARS/LIGHT TRUCKS
Bayerische Motoren Werke AG 256,824 10,446,545 0.37
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BEVERAGES - NON-ALCOHOLIC
PepsiCo, Inc. 1,201,363 64,693,398 2.32
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BUILDING - RESIDENTIAL/COMMERCIAL
Lennar Corporation - Class A 858,714 46,396,317 1.67
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CABLE TV
Comcast Corporation - Class A* 2,037,089 56,794,041 2.04
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CELLULAR TELECOMMUNICATIONS
Nextel Communications, Inc. - Class A* 1,927,385 47,664,231 1.71
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COMPUTERS
Dell, Inc.* 905,071 30,428,487 1.09
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COSMETICS & TOILETRIES
The Procter & Gamble Company 786,035 82,439,351 2.96
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DIVERSIFIED MANUFACTURING OPERATIONS
General Electric Company 3,080,918 94,029,617 3.38
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ELECTRIC PRODUCTS - MISCELLANEOUS
Samsung Electronics Co., Ltd. 172,230 85,930,970 3.09
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ENTERTAINMENT SOFTWARE
Electronic Arts, Inc.* 847,018 45,705,091 1.64
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FINANCE - CONSUMER LOANS
SLM Corporation 3,519,257 147,280,905 5.29
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*Non-income producing.
See notes to financial statements.
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SCHEDULE OF INVESTMENTS
MARSICO FOCUS FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
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COMMON STOCKS CONTINUED
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FINANCE - INVESTMENT BANKER/BROKER
Citigroup, Inc. 2,664,059 $136,697,850 4.91%
The Goldman Sachs Group, Inc. 254,945 26,603,511 0.95
Merrill Lynch & Co., Inc. 1,911,853 113,869,965 4.09
Morgan Stanley 491,400 28,157,220 1.01
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305,328,546 10.96
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FINANCE - MORTGAGE LOAN/BANKER
Countrywide Financial Corporation 850,789 81,590,665 2.93
Fannie Mae 1,165,004 86,618,047 3.11
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168,208,712 6.04
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HOTELS & MOTELS
Four Seasons Hotels, Inc. 825,883 43,854,387 1.57
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MACHINERY - CONSTRUCTION & MINING
Caterpillar, Inc. 1,556,950 123,108,037 4.42
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MEDICAL - BIOMEDICAL/GENETIC
Genentech, Inc.* 1,557,144 164,776,978 5.92
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MEDICAL - DRUGS
Eli Lilly & Co. 396,588 26,531,737 0.95
Forest Laboratories, Inc.* 1,355,178 97,057,848 3.49
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123,589,585 4.44
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MEDICAL - HMO
UnitedHealth Group, Inc. 3,080,004 198,475,458 7.13
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MEDICAL INSTRUMENTS
Boston Scientific Corporation* 3,090,050 130,956,319 4.70
Medtronic, Inc. 1,437,058 68,619,520 2.46
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199,575,839 7.16
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MULTIMEDIA
The Walt Disney Company 1,921,871 48,027,556 1.72
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RETAIL - BUILDING PRODUCTS
Lowe's Companies, Inc. 1,275,200 71,576,976 2.57
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*Non-income producing.
See notes to financial statements.
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SCHEDULE OF INVESTMENTS
MARSICO FOCUS FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
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COMMON STOCKS CONTINUED
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RETAIL - DISCOUNT
Wal-Mart Stores, Inc. 1,634,442 $97,559,843 3.50%
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RETAIL - JEWELRY
Tiffany & Company 2,062,337 78,719,403 2.83
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SEMICONDUCTORS - INTEGRATED CIRCUITS
Maxim Integrated Products, Inc. 750,840 35,357,056 1.27
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TRANSPORTATION - SERVICES
FedEx Corporation 753,599 56,640,501 2.03
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WIRELESS EQUIPMENT
QUALCOMM, Inc. 2,171,268 144,215,621 5.18
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TOTAL COMMON STOCKS
(COST $2,116,722,541) 2,611,841,941 93.77
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Principal/ Market Value Percent of
Shares in Dollars Net Assets
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SHORT-TERM INVESTMENTS
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SSgA Money Market Funds 200,413,623 200,413,623 7.19
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TOTAL SHORT-TERM INVESTMENTS
(COST $200,413,623) 200,413,623 7.19
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TOTAL INVESTMENTS
(COST $2,317,136,164) 2,812,255,564 100.96
Liabilities Less Cash and Other Assets (26,859,180) (0.96)
------------------------------------------
NET ASSETS $2,785,396,384 100.00%
==========================================
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MARSICO FOCUS FUND
MARCH 31, 2004 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $2,317,136) $2,812,256
Foreign currency (cost $41) 41
Receivable for investments sold 10,555
Receivable for capital stock sold 2,808
Interest and dividends receivable 1,327
Prepaid expenses and other assets 596
-------------
TOTAL ASSETS 2,827,583
-------------
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 37,413
Payable for capital stock redeemed 1,543
Accrued investment advisory fee 1,988
Accrued distribution fee 254
Accrued trustees' fees 563
Accrued expenses and other liabilities 426
-------------
TOTAL LIABILITIES 42,187
-------------
NET ASSETS $2,785,396
=============
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------
Paid-in-capital $2,513,898
Accumulated net investment loss (6,224)
Accumulated net realized loss on investments and
foreign currency transactions (217,486)
Net unrealized appreciation on investments
and foreign currency translations 495,208
-------------
NET ASSETS $2,785,396
=============
SHARES OUTSTANDING, $0.001 PAR VALUE
(UNLIMITED SHARES AUTHORIZED) 185,475
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE
(NET ASSETS/SHARES OUTSTANDING)* $15.02
=============
*Not in thousands.
See notes to financial statements.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
MARSICO FOCUS FUND
For the Six Months Ended March 31, 2004 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $654
Dividends (net of $51 of non-reclaimable
foreign withholding taxes) 10,412
-------------
TOTAL INVESTMENT INCOME 11,066
-------------
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 11,111
Distribution fees 3,268
Transfer agent fees and expenses 1,494
Printing and postage expenses 352
Custody and fund accounting fees 195
Trustees' fees and expenses 156
Professional fees 139
Fund administration fees 139
Federal and state registration fees 48
Miscellaneous 84
TOTAL EXPENSES 16,986
Less expenses paid indirectly (544)
-------------
NET EXPENSES 16,442
-------------
NET INVESTMENT LOSS (5,376)
-------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 152,897
Net realized gain on foreign currency transactions 12,689
Change in unrealized appreciation/depreciation on
investments and foreign currency translations 104,037
-------------
Net Gain on Investments 269,623
-------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $264,247
=============
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
MARSICO FOCUS FUND
Six Months Year
Ended 3/31/04 Ended
(Amounts in thousands) (Unaudited) 9/30/03
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
Net investment loss $(5,376) $(9,525)
Net realized gain (loss) on investments 152,897 (44,296)
Net realized gain on foreign
currency transactions 12,689 5,675
Change in unrealized appreciation/
depreciation on investments and
foreign currency translations 104,037 354,257
--------------------------------------
Net increase in net assets
resulting from operations 264,247 306,111
--------------------------------------
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Proceeds from sale of shares 542,346 1,273,020
Redemption fees 9 -
Redemption of shares (303,319) (571,086)
--------------------------------------
Net increase from
capital share transactions 239,036 701,934
--------------------------------------
TOTAL INCREASE
IN NET ASSETS 503,283 1,008,045
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 2,282,113 1,274,068
END OF PERIOD $2,785,396 $2,282,113
--------------------------------------
Accumulated net investment loss (6,224) (848)
- --------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
- --------------------------------------------------------------------------------
Shares sold 36,876 107,005
Shares redeemed (20,619) (46,887)
--------------------------------------
NET INCREASE 16,257 60,118
======================================
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
MARSICO FOCUS FUND
For a Fund Share Outstanding Throughout the Period.
Six Months Year Year Year Year Year
Ended 3/31/04 Ended Ended Ended Ended Ended
(Unaudited) 9/30/03 9/30/02 9/30/01 9/30/00 9/30/99
------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.49 $11.68 $12.27 $22.17 $17.43 $12.36
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.03) (0.03) (0.08) (0.07) (0.16) (0.06)
Net realized and unrealized gains
(losses) on investments 1.56 1.84 (0.47) (7.87) 4.94 5.13
------------------------------------------------------------------------------------------
Total from investment
operations 1.53 1.81 (0.55) (7.94) 4.78 5.07
------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS & OTHER
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gains - - - (1.96) (0.04) -
Tax return of capital - - (0.04) - - -
Redemption fees -(1) - - - - -
------------------------------------------------------------------------------------------
Total distributions & other - - (0.04) (1.96) (0.04) -
------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $15.02 $13.49 $11.68 $12.27 $22.17 $17.43
------------------------------------------------------------------------------------------
TOTAL RETURN 11.34%(2) 15.50% (4.50)% (38.17)% 27.42% 41.02%
- ------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA AND RATIOS
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s) $2,785,396 $2,282,113 $1,274,068 $1,311,495 $2,853,805 $2,258,141
Ratio of expenses to average net assets,
before expenses paid indirectly 1.30%(3) 1.34% 1.35% 1.30% 1.27% 1.31%
Ratio of net investment loss to average
net assets, net of expenses paid indirectly (0.41)%(3) (0.54)% (0.64)% (0.36)% (0.69)% (0.43)%
Ratio of net investment loss to average
net assets, before expenses paid indirectly (0.45)%(3) (0.59)% (0.68)% (0.39)% (0.70)% (0.45)%
Portfolio turnover rate 54%(2) 90% 117% 127% 176% 173%
(1) Less than $0.01.
(2) Not annualized for the periods less than one year.
(3) Annualized for the periods less than one year.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FUND OVERVIEW MARCH 31, 2004 (Unaudited)
MARSICO GROWTH FUND
The Growth Fund invests primarily in the common stocks of large companies that
are selected for their growth potential. The Growth Fund will normally hold
between 35 and 50 common stocks.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
Five Year Average Annual
One Year Average Annual Since Inception
(4/1/03-3/31/04) (4/1/99-3/31/04) (12/31/97-3/31/04)
Marsico Growth Fund 36.64% 1.12% 8.47%
S&P 500/R Index 35.12% -1.20% 3.91%
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
3/31/04
$1,174,048,317
- --------------------------------------------------------------------------------
NET ASSET VALUE
- --------------------------------------------------------------------------------
Net Asset Value Per Share $15.85
- --------------------------------------------------------------------------------
TOP FIVE HOLDINGS
- --------------------------------------------------------------------------------
UnitedHealth Group, Inc. 5.94%
QUALCOMM, Inc. 5.09
Genentech, Inc. 4.81
Citigroup, Inc. 4.37
SLM Corp. 3.61
- --------------------------------------------------------------------------------
SECTOR ALLOCATION(2)
- --------------------------------------------------------------------------------
Consumer Non-Cyclical 29.40%
Financial 18.54
Consumer Cyclical 17.19
Industrial 17.11
Communications 11.57
Technology 6.19
GROWTH OF $10,000
Marsico
Growth S&P 500/R
Fund Index
- ----------------------------------------------------------
12/31/1997 10,000 10,000
3/31/1998 11,960 11,395
9/30/1998 11,540 10,600
3/31/1999 15,710 13,498
9/30/1999 16,290 13,548
3/31/2000 22,607 15,920
9/30/2000 20,938 15,347
3/31/2001 15,495 12,469
9/30/2001 13,307 11,262
3/31/2002 15,304 12,500
9/30/2002 12,452 8,955
3/31/2003 12,159 9,404
9/30/2003 14,769 11,140
3/31/2004 16,614 12,708
The performance data quoted here represents past performance, and past
performance is not a guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance information quoted. To
obtain performance information current to the most recent month-end, please call
888-860-8686 or visit www.marsicofunds.com.
The performance included in the table and graph do not reflect the
deduction of taxes on Fund distributions or the redemption of Fund shares.
(1) This chart assumes an initial investment of $10,000 made on December 31,
1997 (inception).
(2) Sector weightings represent the percentage of the Fund's equity investments
in certain general sectors. These sectors may include more than one
industry. The Fund's portfolio composition is subject to change at any
time.
The S&P 500/R Index is a registered trademark of Standard & Poor's
Corporation and is an unmanaged, broadly based index of the common stock
prices of 500 large U.S. companies. You cannot invest directly in an index.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO GROWTH FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
AGRICULTURAL OPERATIONS
Monsanto Company 141,140 $5,175,604 0.44%
------------------------------------------
ATHLETIC FOOTWEAR
NIKE, Inc. - Class B 281,845 21,947,270 1.87
------------------------------------------
AUTOMOTIVE - CARS/LIGHT TRUCKS
Bayerische Motoren Werke AG 84,869 3,452,122 0.29
------------------------------------------
BEVERAGES - NON-ALCOHOLIC
PepsiCo, Inc. 492,324 26,511,647 2.26
------------------------------------------
BUILDING - RESIDENTIAL/COMMERCIAL
Lennar Corporation - Class A 331,556 17,913,971 1.52
M.D.C. Holdings, Inc. 203,001 14,291,270 1.22
------------------------------------------
32,205,241 2.74
------------------------------------------
CABLE TV
Comcast Corporation - Class A* 799,453 22,288,750 1.90
------------------------------------------
CASINO HOTELS
Mandalay Resort Group 236,312 13,531,225 1.15
Wynn Resorts Ltd.* 791,390 27,698,650 2.36
------------------------------------------
41,229,875 3.51
------------------------------------------
CELLULAR TELECOMMUNICATIONS
Nextel Communications, Inc. - Class A* 909,286 22,486,643 1.92
------------------------------------------
COMPUTERS
Dell, Inc.* 318,639 10,712,643 0.91
------------------------------------------
COSMETICS & TOILETRIES
The Procter & Gamble Company 315,117 33,049,471 2.82
------------------------------------------
CRUISE LINES
Royal Caribbean Cruises Ltd. 115,389 5,088,655 0.43
------------------------------------------
DATA PROCESSING/MANAGEMENT
Automatic Data Processing, Inc. 211,562 8,885,604 0.76
------------------------------------------
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO GROWTH FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING OPERATIONS
General Electric Company 1,293,002 $39,462,421 3.36%
Honeywell International, Inc. 431,102 14,592,803 1.24
Tyco International Ltd. 740,497 21,215,239 1.81
------------------------------------------
75,270,463 6.41
------------------------------------------
ELECTRIC PRODUCTS - MISCELLANEOUS
Samsung Electronics Co., Ltd. 70,400 35,124,776 2.99
Sharp Corporation 739,000 13,186,169 1.12
------------------------------------------
48,310,945 4.11
------------------------------------------
ELECTRONIC MEASURING INSTRUMENTS
Agilent Technologies, Inc.* 34,085 1,078,109 0.09
------------------------------------------
ENTERTAINMENT SOFTWARE
Electronic Arts, Inc.* 455,175 24,561,243 2.09
------------------------------------------
FINANCE - CONSUMER LOANS
SLM Corporation 1,011,877 42,347,052 3.61
------------------------------------------
FINANCE - INVESTMENT BANKER/BROKER
Citigroup, Inc. 991,432 51,257,034 4.37
The Goldman Sachs Group, Inc. 185,000 19,304,750 1.64
J.P. Morgan Chase & Co. 817,961 34,313,464 2.92
Merrill Lynch & Co., Inc. 569,568 33,923,470 2.89
------------------------------------------
138,798,718 11.82
------------------------------------------
FINANCE - MORTGAGE LOAN/BANKER
Countrywide Financial Corporation 145,375 13,941,175 1.19
Fannie Mae 296,902 22,074,664 1.88
------------------------------------------
36,015,839 3.07
------------------------------------------
HOTELS & MOTELS
Four Seasons Hotels, Inc. 336,417 17,863,743 1.52
------------------------------------------
MACHINERY - CONSTRUCTION & MINING
Caterpillar, Inc. 515,148 40,732,752 3.47
------------------------------------------
MEDICAL - BIOMEDICAL/GENETIC
Genentech, Inc.* 533,982 56,505,975 4.81
------------------------------------------
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO GROWTH FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
MEDICAL - DRUGS
Eli Lilly & Co. 181,189 $12,121,544 1.03%
Forest Laboratories, Inc.* 443,319 31,750,507 2.71
------------------------------------------
43,872,051 3.74
------------------------------------------
MEDICAL - HMO
UnitedHealth Group, Inc. 1,082,727 69,770,928 5.94
------------------------------------------
MEDICAL INSTRUMENTS
Boston Scientific Corporation* 925,780 39,234,556 3.34
Medtronic, Inc. 462,863 22,101,708 1.88
St. Jude Medical, Inc.* 107,653 7,761,781 0.66
------------------------------------------
69,098,045 5.88
------------------------------------------
MEDICAL LABS & TESTING SERVICES
Quest Diagnostics, Inc. 180,730 14,969,866 1.28
------------------------------------------
MEDICAL PRODUCTS
Zimmer Holdings, Inc.* 345,479 25,489,441 2.17
------------------------------------------
MULTIMEDIA
The Walt Disney Company 781,809 19,537,407 1.67
------------------------------------------
RETAIL - BUILDING PRODUCTS
Lowe's Companies, Inc. 624,412 35,048,246 2.99
------------------------------------------
RETAIL - DISCOUNT
Wal-Mart Stores, Inc. 346,737 20,696,731 1.76
------------------------------------------
RETAIL - JEWELRY
Tiffany & Company 623,520 23,799,758 2.03
------------------------------------------
SEMICONDUCTORS - INTEGRATED CIRCUITS
Maxim Integrated Products, Inc. 602,662 28,379,354 2.42
------------------------------------------
TRANSPORTATION - SERVICES
FedEx Corporation 467,173 35,112,723 2.99
------------------------------------------
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO GROWTH FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
WIRELESS EQUIPMENT
Motorola, Inc. 657,177 $11,566,315 0.98%
QUALCOMM, Inc. 899,138 59,720,746 5.09
------------------------------------------
71,287,061 6.07
------------------------------------------
TOTAL COMMON STOCKS
(COST $951,564,303) 1,171,579,975 99.79
------------------------------------------
Principal/ Market Value Percent of
Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
- --------------------------------------------------------------------------------
SSgA Money Market Funds 6,945,830 6,945,830 0.59
------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $6,945,830) 6,945,830 0.59
------------------------------------------
TOTAL INVESTMENTS
(COST $958,510,133) 1,178,525,805 100.38
Liabilities Less Cash and Other Assets (4,477,488) (0.38)
------------------------------------------
NET ASSETS $1,174,048,317 100.00%
==========================================
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MARSICO GROWTH FUND
MARCH 31, 2004 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $958,510) $1,178,526
Foreign currency (cost $11) 11
Receivable for investments sold 9,110
Receivable for capital stock sold 1,794
Interest and dividends receivable 758
Prepaid expenses and other assets 329
-------------
TOTAL ASSETS 1,190,528
-------------
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 14,467
Payable for capital stock redeemed 490
Accrued investment advisory fee 826
Accrued distribution fee 148
Accrued trustees' fees 303
Accrued expenses and other liabilities 246
-------------
TOTAL LIABILITIES 16,480
-------------
NET ASSETS $1,174,048
=============
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------
Paid-in-capital $1,061,864
Accumulated net investment loss (2,237)
Accumulated net realized loss on investments and
foreign currency transactions (105,655)
Net unrealized appreciation on investments
and foreign currency translations 220,076
-------------
NET ASSETS $1,174,048
-------------
SHARES OUTSTANDING, $0.001 PAR VALUE
(UNLIMITED SHARES AUTHORIZED) 74,081
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE (NET
ASSETS/SHARES OUTSTANDING)* $15.85
=============
*Not in thousands.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
MARSICO GROWTH FUND
For the Six Months Ended March 31, 2004 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $367
Dividends (net of $32 of non-reclaimable
foreign withholding taxes) 4,068
-------------
TOTAL INVESTMENT INCOME 4,435
-------------
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 4,297
Distribution fees 1,264
Transfer agent fees and expenses 531
Printing and postage expenses 125
Fund administration fees 99
Custody and fund accounting fees 90
Trustees' fees and expenses 68
Professional fees 50
Federal and state registration fees 38
Miscellaneous 31
-------------
TOTAL EXPENSES 6,593
Less expenses paid indirectly (206)
-------------
NET EXPENSES 6,387
-------------
NET INVESTMENT LOSS (1,952)
-------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 39,911
Net realized gain on foreign currency transactions 425
Change in unrealized appreciation/depreciation on
investments and foreign currency translations 69,483
-------------
Net Gain on Investments 109,819
-------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $107,867
=============
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
MARSICO GROWTH FUND
Six Months Year
Ended 3/31/04 Ended
(Amounts in thousands) (Unaudited) 9/30/03
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
Net investment loss $(1,952) $(4,165)
Net realized gain (loss) on investments 39,911 (23,520)
Net realized gain on foreign
currency transactions 425 8,532
Change in unrealized appreciation/
depreciation on investments and
foreign currency translations 69,483 132,227
--------------------------------------
Net increase in net assets
resulting from operations 107,867 113,074
--------------------------------------
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Proceeds from sale of shares 382,833 356,489
Redemption fees 2 -
Redemption of shares (105,874) (322,317)
--------------------------------------
Net increase from
capital share transactions 276,961 34,172
--------------------------------------
TOTAL INCREASE
IN NET ASSETS 384,828 147,246
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 789,220 641,974
END OF PERIOD $1,174,048 $789,220
--------------------------------------
Accumulated net investment loss (2,237) (285)
- --------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
- --------------------------------------------------------------------------------
Shares sold 24,971 28,383
Shares redeemed (6,886) (26,435)
--------------------------------------
NET INCREASE 18,085 1,948
--------------------------------------
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
MARSICO GROWTH FUND
For a Fund Share Outstanding Throughout the Period.
Six Months Year Year Year Year Year
Ended 3/31/04 Ended Ended Ended Ended Ended
(Unaudited) 9/30/03 9/30/02 9/30/01 9/30/00 9/30/99
------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $14.09 $11.88 $12.71 $20.82 $16.29 $11.54
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.03) (0.07) (0.04) (0.09) (0.11) (0.06)
Net realized and unrealized gains
(losses) on investments 1.79 2.28 (0.77) (7.32) 4.75 4.81
------------------------------------------------------------------------------------------
Total from investment
operations 1.76 2.21 (0.81) (7.41) 4.64 4.75
------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS & OTHER
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gains - - - (0.70) (0.11) -
Tax return of capital - - (0.02) - - -
Redemption fees -(1) - - - - -
------------------------------------------------------------------------------------------
Total distributions & other - - (0.02) (0.70) (0.11) -
------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $15.85 $14.09 $11.88 $12.71 $20.82 $16.29
------------------------------------------------------------------------------------------
TOTAL RETURN 12.49%(2) 18.60% (6.42)% (36.45)% 28.53% 41.16%
- ------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA AND RATIOS
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s) $1,174,048 $789,220 $641,974 $530,904 $1,002,722 $688,490
Ratio of expenses to average net assets,
before expenses paid indirectly 1.30%(3) 1.38% 1.37% 1.33% 1.30% 1.43%
Ratio of net investment loss to average net
assets, net of expenses paid indirectly (0.39)%(3) (0.62)% (0.49)% (0.53)% (0.54)% (0.46)%
Ratio of net investment loss to average net
assets, before expenses paid indirectly (0.43)%(3) (0.67)% (0.52)% (0.55)% (0.55)% (0.47)%
Portfolio turnover rate 51%(2) 91% 111% 120% 137% 137%
(1) Less than $0.01.
(2) Not annualized for the periods less than one year.
(3) Annualized for the periods less than one year.
See notes to financial statements.
- --------------------------------------------------------------------------------
FUND OVERVIEW MARCH 31, 2004 (Unaudited)
MARSICO 21ST CENTURY FUND
The 21st Century Fund invests primarily in common stocks that are selected for
their long-term growth potential. The Fund may invest in companies of any size,
and will normally hold a core position of between 35 and 50 common stocks.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
One Year Average Annual Since Inception
(4/1/03-3/31/04) (2/1/00-3/31/04)
Marsico 21st Century Fund 56.88%(1) 0.62%(1)
S&P 500/R Index 35.12% -3.57%
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
3/31/04 $196,285,064
- --------------------------------------------------------------------------------
NET ASSET VALUE
- --------------------------------------------------------------------------------
Net Asset Value Per Share $10.26
- --------------------------------------------------------------------------------
TOP FIVE HOLDINGS
- --------------------------------------------------------------------------------
EMI Group PLC 4.66%
Brunswick Corporation 4.48
Jefferies Group, Inc. 4.41
Countrywide Financial Corporation 4.04
Standard Chartered PLC 3.86
- --------------------------------------------------------------------------------
SECTOR ALLOCATION(3)
- --------------------------------------------------------------------------------
Consumer Cyclical 36.49%
Financial 31.46
Consumer Non-Cyclical 16.17
Communications 9.19
Industrial 4.98
Technology 1.71
GROWTH OF $10,000(1)(2)
Marsico
21st Century S&P 500/R
Fund Index
- ----------------------------------------------------------
2/01/2000 10,000 10,000
3/31/2000 12,810 10,770
9/30/2000 10,860 10,383
3/31/2001 7,290 8,436
9/30/2001 6,260 7,619
3/31/2002 7,520 8,456
9/30/2002 6,540 6,058
3/31/2003 6,540 6,362
9/30/2003 8,740 7,536
3/31/2004 10,260 8,597
The performance data quoted here represents past performance, and past
performance is not a guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance information quoted. To
obtain performance information current to the most recent month-end, please call
888-860-8686 or visit www.marsicofunds.com.
The performance included in the table and graph do not reflect the
deduction of taxes on Fund distributions or the redemption of Fund shares.
(1) The performance returns for the 21st Century Fund reflect a fee waiver in
effect; in the absence of such a waiver, the returns would be reduced.
(2) This chart assumes an initial investment of $10,000 made on February 1,
2000 (inception).
(3) Sector weightings represent the percentage of the Fund's equity investments
in certain general sectors. These sectors may include more than one
industry. The Fund's portfolio composition is subject to change at any
time.
The S&P 500/R Index is a registered trademark of Standard & Poor's
Corporation and is an unmanaged, broadly based index of the common stock
prices of 500 large U.S. companies. You cannot invest directly in an index.
SCHEDULE OF INVESTMENTS
MARSICO 21ST CENTURY FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
AGRICULTURAL OPERATIONS
Monsanto Company 108,355 $3,973,378 2.02%
------------------------------------------
AUDIO/VIDEO PRODUCTS
Digital Theater Systems, Inc.* 173,423 4,444,831 2.26
Harman International Industries, Inc. 43,135 3,433,546 1.75
------------------------------------------
7,878,377 4.01
------------------------------------------
AUTOMOTIVE - MEDIUM &
HEAVY DUTY TRUCKS
PACCAR, Inc. 130,036 7,313,225 3.73
------------------------------------------
BUILDING - RESIDENTIAL/COMMERCIAL
WCI Communities, Inc.* 155,742 3,898,222 1.99
------------------------------------------
CABLE TV
Sogecable S.A.* ** 148,042 6,207,361 3.16
------------------------------------------
CASINO HOTELS
Mandalay Resort Group 120,765 6,915,004 3.52
Wynn Resorts Ltd.* 177,390 6,208,650 3.16
------------------------------------------
13,123,654 6.68
------------------------------------------
COMMERCIAL BANKS - EASTERN US
The Bancorp Bank* 80,735 1,453,230 0.74
------------------------------------------
COMMERCIAL BANKS - NON-US
Mitsubishi Tokyo Financial
Group, Inc. ADR 188,808 1,874,863 0.96
------------------------------------------
COMMERCIAL BANKS - SOUTHERN US
The South Financial Group, Inc. 130,235 3,853,654 1.96
------------------------------------------
COMMERCIAL BANKS - WESTERN US
UCBH Holdings, Inc. 180,400 7,223,216 3.68
------------------------------------------
COMPUTER GRAPHICS
Pixar* 50,950 3,284,237 1.67
------------------------------------------
*Non-income producing.
**A portion of this security has been segregated by the custodian to cover
segregation requirements on open forward currency contracts.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO 21ST CENTURY FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
COSMETICS & TOILETRIES
The Procter & Gamble Company 45,400 $4,761,552 2.43%
------------------------------------------
CRUISE LINES
Royal Caribbean Cruises Ltd. 25,046 1,104,529 0.56
------------------------------------------
DIVERSIFIED MANUFACTURING OPERATIONS
Tyco International Ltd. 137,043 3,926,282 2.00
------------------------------------------
FINANCE - INVESTMENT BANKER/BROKER
Citigroup, Inc. 95,116 4,917,497 2.51
Jefferies Group, Inc. 244,977 8,655,037 4.41
J.P. Morgan Chase & Co. 155,409 6,519,407 3.32
------------------------------------------
20,091,941 10.24
------------------------------------------
FINANCE - MORTGAGE LOAN/BANKER
Countrywide Financial Corporation 82,758 7,936,492 4.04
------------------------------------------
FINANCIAL GUARANTEE INSURANCE
Ambac Financial Group, Inc. 51,799 3,821,730 1.95
------------------------------------------
HOSPITAL BEDS/EQUIPMENT
Kinetic Concepts, Inc.* 71,345 3,199,823 1.63
------------------------------------------
HOTELS & MOTELS
Shangri-La Asia Ltd. 3,640,006 3,573,350 1.82
------------------------------------------
LEISURE & RECREATION PRODUCTS
Brunswick Corporation 215,341 8,792,373 4.48
WMS Industries, Inc.* 64,220 1,990,820 1.01
------------------------------------------
10,783,193 5.49
------------------------------------------
MACHINERY - CONSTRUCTION & MINING
Caterpillar, Inc. 71,699 5,669,240 2.89
------------------------------------------
MEDICAL - BIOMEDICAL/GENETIC
Genentech, Inc.* 59,311 6,276,290 3.20
------------------------------------------
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO 21ST CENTURY FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
MEDICAL - HMO
UnitedHealth Group, Inc. 60,831 $3,919,950 2.00%
------------------------------------------
MEDICAL INSTRUMENTS
Boston Scientific Corporation* 67,436 2,857,938 1.46
------------------------------------------
MEDICAL PRODUCTS
Wright Medical Group, Inc.* 56,763 1,742,624 0.89
------------------------------------------
MONEY CENTER BANKS
Standard Chartered PLC** 451,698 7,573,400 3.86
------------------------------------------
MUSIC
EMI Group PLC** 1,790,933 9,146,747 4.66
------------------------------------------
RADIO
Cumulus Media, Inc. - Class A* 283,244 5,662,048 2.88
------------------------------------------
REITS - OFFICE PROPERTY
Government Properties Trust, Inc. 510,007 6,716,792 3.42
------------------------------------------
RETAIL - BEDDING
Select Comfort Corporation* 241,705 6,668,641 3.40
------------------------------------------
RETAIL - SPORTING GOODS
The Sports Authority, Inc.* 168,108 6,737,769 3.43
------------------------------------------
THERAPEUTICS
ImClone Systems, Inc.* 86,262 4,387,285 2.24
------------------------------------------
WIRELESS EQUIPMENT
QUALCOMM, Inc. 87,750 5,828,355 2.97
------------------------------------------
TOTAL COMMON STOCKS
(COST $164,427,298) 192,469,388 98.06
------------------------------------------
*Non-income producing.
**A portion of this security has been segregated by the custodian to cover
segregation requirements on open forward currency contracts.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO 21ST CENTURY FUND
MARCH 31, 2004 (Unaudited)
Principal/ Market Value Percent of
Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
- --------------------------------------------------------------------------------
SSgA Money Market Funds 8,188,099 $8,188,099 4.17%
------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $8,188,099) 8,188,099 4.17
------------------------------------------
TOTAL INVESTMENTS
(COST $172,615,397) 200,657,487 102.23
Liabilities Less Cash and Other Assets (4,372,423) (2.23)
------------------------------------------
NET ASSETS $196,285,064 100.00%
==========================================
- --------------------------------------------------------------------------------
FORWARD CURRENCY CONTRACTS OPEN AT MARCH 31, 2004
- --------------------------------------------------------------------------------
Currency
Currency Sold and Local U.S. Value in Unrealized
Settlement Date Currency Dollars U.S. Dollars Loss
- --------------------------------------------------------------------------------
British Pound
6/16/04 8,163,165 14,590,432 14,923,002 (332,570)
--------------------------------------------------------------
Euro
6/16/04 4,456,403 5,446,838 5,467,585 (20,747)
--------------------------------------------------------------
TOTAL $(353,317)
==============================================================
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MARSICO 21ST CENTURY FUND
MARCH 31, 2004 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $172,615) $200,657
Receivable for investments sold 5,394
Receivable for capital stock sold 665
Interest and dividends receivable 371
Prepaid expenses and other assets 173
-------------
TOTAL ASSETS $207,260
-------------
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 9,954
Payable for capital stock redeemed 78
Payable for loss on foreign currency
exchange contracts 71
Accrued investment advisory fee 132
Accrued distribution fee 147
Accrued trustees' fees 149
Unrealized loss on foreign currency
exchange contracts 353
Accrued expenses and other liabilities 91
-------------
TOTAL LIABILITIES 10,975
-------------
NET ASSETS $196,285
=============
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------
Paid-in-capital $222,778
Accumulated net investment loss (533)
Accumulated net realized loss on investments and
foreign currency transactions (53,700)
Net unrealized appreciation on investments
and foreign currency translations 27,740
-------------
NET ASSETS $196,285
=============
SHARES OUTSTANDING, $0.001 PAR VALUE
(UNLIMITED SHARES AUTHORIZED) 19,123
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE (NET
ASSETS/SHARES OUTSTANDING)* $10.26
=============
*Not in thousands.
See notes to financial statements.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
MARSICO 21ST CENTURY FUND
For the Six Months Ended March 31, 2004 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $37
Dividends (net of $30 of non-reclaimable
foreign withholding taxes) 731
-------------
TOTAL INVESTMENT INCOME 768
-------------
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 673
Distribution fees 198
Transfer agent fees and expenses 98
Fund administration fees 54
Custody and fund accounting fees 38
Trustees' fees and expenses 27
Printing and postage expenses 25
State registration fees 11
Professional fees 9
Miscellaneous 4
-------------
TOTAL EXPENSES 1,137
Recovery of previously waived fees 51
-------------
NET EXPENSES 1,188
-------------
NET INVESTMENT LOSS (420)
-------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 9,323
Net realized gain on foreign currency transactions 143
Change in unrealized appreciation/depreciation on
investments and foreign currency translations 12,725
-------------
Net Gain on Investments 22,191
-------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $21,771
=============
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
MARSICO 21ST CENTURY FUND
Six Months Year
Ended 3/31/04 Ended
(Amounts in thousands) (Unaudited) 9/30/03
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
Net investment loss $(420) $(693)
Net realized gain on investments 9,323 6,230
Net realized gain on foreign
currency transactions 143 322
Change in unrealized appreciation/
depreciation on investments and
foreign currency translations 12,725 13,359
Increase from payment by
service provider - 68
--------------------------------------
Net increase in net assets
resulting from operations 21,771 19,286
--------------------------------------
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Proceeds from sale of shares 99,052 56,312
Redemption fees 1 -
Redemption of shares (28,577) (27,581)
--------------------------------------
Net increase from
capital share transactions 70,476 28,731
--------------------------------------
TOTAL INCREASE IN NET ASSETS 92,247 48,017
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 104,038 56,021
END OF PERIOD $196,285 $104,038
--------------------------------------
Accumulated net investment loss (533) (113)
- --------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
- --------------------------------------------------------------------------------
Shares sold 10,118 7,212
Shares redeemed (2,904) (3,875)
--------------------------------------
NET INCREASE 7,214 3,337
--------------------------------------
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
MARSICO 21ST CENTURY FUND
For a Fund Share Outstanding Throughout the Period.
Six Months Year Year Year 2/1/00*
Ended 3/31/04 Ended Ended Ended to
(Unaudited) 9/30/03 9/30/02 9/30/01 9/30/00
--------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.74 $6.54 $6.26 $10.86 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment loss (0.02) (0.04) (0.08) (0.08) (0.07)
Net realized and unrealized gains
(losses) on investments 1.54 2.23 0.36 (4.52) 0.93
--------------------------------------------------------------------------
Total from investment
operations 1.52 2.19 0.28 (4.60) 0.86
--------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS & OTHER
- ---------------------------------------------------------------------------------------------------------------------
Increase from payment
by service provider - 0.01 - - -
--------------------------------------------------------------------------
Total other - 0.01 - - -
--------------------------------------------------------------------------
Redemption fees -(1) - - - -
--------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.26 $8.74 $6.54 $6.26 $10.86
--------------------------------------------------------------------------
TOTAL RETURN 17.39%(2) 33.64% 4.47% (42.36)% 8.60%(2)
- ---------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA AND RATIOS
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s) $196,285 $104,038 $56,021 $60,124 $130,173
Ratio of expenses to average net
assets, less waivers and before
expenses paid indirectly 1.50%(3) 1.55%(5) 1.50% 1.50% 1.50%(3)
Ratio of net investment loss to average
net assets, net of waivers and
expenses paid indirectly (0.53)%(3) (1.05)% (0.89)% (0.76)% (0.92)%(3)
Ratio of expenses to average net assets,
before waivers and expenses
paid indireclty 1.50%(3) 1.65% 1.60% 1.57% 1.70%(3)
Ratio of net investment loss to average
net assets, before waivers and expenses
paid indirectly (0.53)%(3) (1.15)% (0.99)% (0.83)% (1.13)%(3)
Portfolio turnover rate(4) 112%(2) 236% 388% 399% 267%(2)
* Inception.
(1) Less than $0.01.
(2) Not annualized for the periods less than one year.
(3) Annualized for the periods less than one year.
(4) Portfolio turnover is greater than most funds due to the investment style
of the Fund.
(5) See Note 3 for information regarding the voluntary fee waiver.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FUND OVERVIEW MARCH 31, 2004 (Unaudited)
MARSICO INTERNATIONAL OPPORTUNITIES FUND
The International Opportunities Fund invests primarily in common stocks of
foreign companies that are selected for their long-term growth potential. The
Fund may invest in companies of any size throughout the world. It normally
invests in issuers from at least three different countries, not including the
United States, and maintains a core position of between 35 and 50 common stocks.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
One Year Average Annual Since Inception
(4/1/03-3/31/04) (6/30/00-3/31/04)
Marsico International
Opportunities Fund 63.24%(1) 3.78%(1)
Morgan Stanley Capital
International EAFE Index 57.54% -4.11%
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
3/31/04 $80,333,645
- --------------------------------------------------------------------------------
NET ASSET VALUE
- --------------------------------------------------------------------------------
Net Asset Value Per Share $11.10
- --------------------------------------------------------------------------------
TOP FIVE HOLDINGS
- --------------------------------------------------------------------------------
Samsung Electronics Co., Ltd. 4.47%
Roche Holding AG 4.43
EMI Group PLC 4.38
Sogecable S.A. 4.13
HSBC Holdings PLC 4.09
- --------------------------------------------------------------------------------
SECTOR ALLOCATION(3)
- --------------------------------------------------------------------------------
Consumer Cyclical 23.36%
Financial 22.17
Industrial 18.78
Communications 18.36
Consumer Non-Cyclical 7.25
Technology 4.17
Energy 2.97
Basic Materials 2.94
GROWTH OF $10,000(1)(2)
Marsico Morgan Stanley
International Capital International
Opportunities Fund EAFE Index
- ----------------------------------------------------------
6/30/2000 10,000 10,000
9/30/2000 10,360 9,193
3/31/2001 8,283 7,720
9/30/2001 7,011 6,570
3/31/2002 8,542 7,064
9/30/2002 7,248 5,550
3/31/2003 7,040 5,422
9/30/2003 9,101 6,993
3/31/2004 11,493 8,542
The performance data quoted here represents past performance, and past
performance is not a guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance information quoted. To
obtain performance information current to the most recent month-end, please call
888-860-8686 or visit www.marsicofunds.com.
The performance included in the table and graph do not reflect the
deduction of taxes on Fund distributions or the redemption of Fund shares.
(1) The performance returns for the International Opportunities Fund reflect a
fee waiver in effect; in the absence of such a waiver, the returns would
have been 62.88% for the one year period ended 3/31/04, 2.85% since
inception through 3/31/04, and the ending value of a $10,000 investment
would have been $11,113 on 3/31/04.
(2) This chart assumes an initial investment of $10,000 made on June 30, 2000
(inception).
(3) Sector weightings represent the percentage of the Fund's equity investments
in certain general sectors. These sectors may include more than one
industry. The Fund's portfolio composition is subject to change at any
time.
The Morgan Stanley Capital International EAFE Index tracks the stocks of
about 1,000 companies in Europe, Australasia, and the Far East (EAFE). You
cannot invest directly in an index.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO INTERNATIONAL OPPORTUNITIES FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
ADVERTISING SERVICES
JC Decaux S.A.* 47,345 $1,058,637 1.32%
------------------------------------------
AIRLINES
Cathay Pacific Airway Ltd. 374,000 763,099 0.94
------------------------------------------
AUDIO/VIDEO PRODUCTS
Sony Corporation 55,900 2,339,339 2.91
Yamaha Corporation 83,800 1,564,438 1.95
------------------------------------------
3,903,777 4.86
------------------------------------------
AUTOMOTIVE - CARS/LIGHT TRUCKS
Bayerische Motoren Werke AG 37,870 1,540,396 1.92
Nissan Motor Company Ltd. 205,000 2,292,317 2.85
------------------------------------------
3,832,713 4.77
------------------------------------------
CABLE TV
Sogecable S.A.* 79,067 3,315,258 4.13
------------------------------------------
CASINO HOTELS
Wynn Resorts Ltd.* 21,140 739,900 0.92
------------------------------------------
CELLULAR TELECOMMUNICATIONS
Mobile Telesystems ADR* 10,644 1,399,686 1.74
------------------------------------------
CHEMICALS - SPECIALTY
Syngenta AG 16,259 1,185,505 1.48
------------------------------------------
COMMERCIAL BANKS - NON-US
ICICI Bank Ltd. ADR 80,276 1,280,402 1.59
Kookmin Bank* 23,490 952,754 1.18
Mitsubishi Tokyo Financial
Group, Inc. 160 1,581,802 1.97
OTP Bank Rt. GDR* 20,587 777,159 0.97
UFJ Holdings, Inc. 245 1,556,750 1.94
Unibanco Uniao de Bancos
Brasileiros S.A. GDR 32,768 801,833 1.00
------------------------------------------
6,950,700 8.65
------------------------------------------
* Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO INTERNATIONAL OPPORTUNITIES FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
DISTRIBUTION/WHOLESALE
Esprit Holdings Ltd. 263,500 $1,102,326 1.37%
------------------------------------------
DIVERSIFIED MANUFACTURING OPERATIONS
Tyco International Ltd. 68,930 1,974,844 2.46
------------------------------------------
DIVERSIFIED MINERALS
Companhia Vale do Rio Doce ADR* 18,105 993,964 1.24
------------------------------------------
ELECTRIC PRODUCTS - MISCELLANEOUS
Samsung Electronics Co., Ltd.* 7,200 3,592,307 4.47
Sharp Corporation 111,000 1,980,602 2.47
------------------------------------------
5,572,909 6.94
------------------------------------------
ELECTRONIC COMPONENTS - MISCELLANEOUS
AU Optronics Corp. ADR* 52,015 1,087,113 1.35
Koninklijke (Royal) Philips
Electronics N.V. 39,957 1,155,727 1.44
------------------------------------------
2,242,840 2.79
------------------------------------------
ELECTRONIC MEASURING INSTRUMENTS
Keyence Corporation 3,500 851,946 1.06
------------------------------------------
ENTERPRISE SOFTWARE/SERVICES
SAP AG 9,908 1,566,881 1.95
------------------------------------------
FINANCE - INVESTMENT BANKER/BROKER
Daiwa Securities Group, Inc. 95,000 775,064 0.96
------------------------------------------
HOTELS & MOTELS
Shangri-La Asia Ltd. 1,093,003 1,072,988 1.34
------------------------------------------
MACHINE TOOLS & RELATED PRODUCTS
THK Company Ltd. 57,100 1,126,271 1.40
------------------------------------------
MEDICAL - DRUGS
Roche Holding AG 36,414 3,555,914 4.43
------------------------------------------
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO INTERNATIONAL OPPORTUNITIES FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
MEDICAL PRODUCTS
Synthes-Stratec, Inc. 1,031 $1,056,831 1.32%
------------------------------------------
MONEY CENTER BANKS
Erste Bank der oesterreichischen
Sparkassen AG 10,234 1,532,262 1.91
HSBC Holdings PLC 220,828 3,287,963 4.09
UBS AG 41,937 3,114,044 3.88
------------------------------------------
7,934,269 9.88
------------------------------------------
MULTIMEDIA
The News Corporation Ltd. ADR 66,259 2,383,999 2.97
------------------------------------------
MUSIC
EMI Group PLC 688,271 3,515,174 4.38
------------------------------------------
OFFICE AUTOMATION & EQUIPMENT
Canon, Inc. 15,000 776,023 0.97
------------------------------------------
OIL COMPANIES -
EXPLORATION & PRODUCTION
CNOOC Ltd. ADR 28,523 1,226,489 1.53
------------------------------------------
OIL COMPANIES - INTEGRATED
Total Fina ELF* 5,344 981,426 1.22
------------------------------------------
PUBLISHING - BOOKS
Reed Elsevier PLC 266,289 2,359,793 2.94
------------------------------------------
REAL ESTATE OPERATING/DEVELOPMENT
Sun Hung Kai Properties, Ltd. 86,000 786,313 0.98
------------------------------------------
RETAIL - CONSUMER ELECTRONICS
Yamada Denki Company, Ltd. 40,400 1,578,231 1.96
------------------------------------------
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO INTERNATIONAL OPPORTUNITIES FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
RETAIL - MISCELLANEOUS/DIVERSIFIED
Ito-Yokado Co., Ltd. 18,000 $818,928 1.02%
------------------------------------------
SEMICONDUCTOR EQUIPMENT
ASM Pacific Technology Ltd. 169,500 754,764 0.94
------------------------------------------
TELEPHONE - INTEGRATED
NTL, Inc.* 33,665 2,001,384 2.48
------------------------------------------
TELEVISION
British Sky Broadcasting
Group PLC ADR* 88,155 1,100,832 1.37
------------------------------------------
TRANSPORTATION - MARINE
Golar LNG Ltd.* 87,000 1,322,275 1.65
------------------------------------------
TRANSPORTATION - TRUCK
Yamato Transport Co., Ltd. 50,000 838,892 1.04
------------------------------------------
TOTAL COMMON STOCKS
(COST $60,833,035) 73,420,845 91.40
------------------------------------------
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO INTERNATIONAL OPPORTUNITIES FUND
MARCH 31, 2004 (Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
PREFERRED STOCK
- --------------------------------------------------------------------------------
BREWERY
Companhia de Bebidas das
Americas ADR 38,208 $764,160 0.95%
------------------------------------------
TOTAL PREFERRED STOCK
(cost $730,502) 764,160 0.95
------------------------------------------
Principal/ Market Value Percent of
Shares in Dollars Net Assets
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
- --------------------------------------------------------------------------------
SSgA Money Market Funds 6,901,893 6,901,893 8.59
------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $6,901,893) 6,901,893 8.59
------------------------------------------
TOTAL INVESTMENTS
(COST $68,465,430) 81,086,898 100.94
Liabilities Less Cash and Other Assets (753,253) (0.94)
------------------------------------------
NET ASSETS $80,333,645 100.00%
==========================================
*Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
MARSICO INTERNATIONAL OPPORTUNITIES FUND
MARCH 31, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY COUNTRY
- --------------------------------------------------------------------------------
Percent of
Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Australia $2,383,999 2.9%
Austria 1,532,262 1.9
Bermuda 1,974,844 2.4
Brazil 2,559,957 3.2
China 5,705,979 7.0
France 2,040,063 2.5
Germany 3,107,277 3.8
Hungary 777,159 1.0
India 1,280,402 1.6
Japan 18,080,603 22.3
Netherlands 1,155,727 1.4
Russia 1,399,686 1.7
South Korea 4,545,061 5.6
Spain 3,315,258 4.1
Switzerland 8,912,294 11.0
Taiwan 1,087,113 1.4
United Kingdom 11,586,037 14.3
United States(1) 9,643,177 11.9
--------------------------------------------------------------
TOTAL $81,086,898 100.0%
--------------------------------------------------------------
(1) Includes short-term securities.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MARSICO INTERNATIONAL OPPORTUNITIES FUND
MARCH 31, 2004 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $68,465) $81,087
Foreign currency (cost $19) 19
Receivable for investments sold 321
Receivable for capital stock sold 592
Interest and dividends receivable 224
Prepaid expenses and other assets 126
-------------
TOTAL ASSETS $82,369
-------------
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 1,778
Payable for capital stock redeemed 28
Accrued investment advisory fee 38
Accrued distribution fee 23
Accrued trustees' fees 114
Accrued expenses and other liabilities 54
-------------
TOTAL LIABILITIES 2,035
-------------
NET ASSETS $80,334
=============
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------
Paid-in-capital $73,665
Accumulated net investment loss (273)
Accumulated net realized loss on investments and
foreign currency transactions (5,721)
Net unrealized appreciation on investments
and foreign currency translations 12,663
-------------
NET ASSETS $80,334
=============
SHARES OUTSTANDING, $0.001 PAR VALUE
(UNLIMITED SHARES AUTHORIZED) 7,237
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE (NET
ASSETS/SHARES OUTSTANDING)* $11.10
=============
*Not in thousands.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
MARSICO INTERNATIONAL OPPORTUNITIES FUND
For the Six Months Ended March 31, 2004 (Unaudited)
(Amounts in thousands)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $16
Dividends (net of $23 of non-reclaimable
foreign withholding taxes) 261
-------------
TOTAL INVESTMENT INCOME 277
-------------
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 196
Custody and fund accounting fees 64
Distribution fees 58
Transfer agent fees and expenses 34
Fund administration fees 30
Trustees' fees and expenses 25
Printing and postage expenses 4
State registration fees 4
Professional fees 4
Miscellaneous 1
-------------
TOTAL EXPENSES 420
Less waiver of expenses (51)
-------------
Net Expenses 369
NET INVESTMENT LOSS (92)
-------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 1,246
Net realized gain on foreign currency transactions 228
Change in unrealized appreciation/depreciation on
investments and foreign currency translations 7,604
-------------
Net Gain on Investments 9,078
-------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $8,986
=============
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
MARSICO INTERNATIONAL OPPORTUNITIES FUND
Six Months Year
Ended 3/31/04 Ended
(Amounts in thousands) (Unaudited) 9/30/03
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
Net investment income (loss) $(92) $42
Net realized gain (loss) on investments 1,246 (699)
Net realized gain on foreign
currency transactions 228 1,560
Change in unrealized appreciation/
depreciation on investments and
foreign currency translations 7,604 4,489
-----------------------------------------
Net increase in net assets
resulting from operations 8,986 5,392
-----------------------------------------
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Proceeds from sale of shares 45,534 7,109
Redemption fees 17 9
Redemption of shares (2,612) (4,733)
-----------------------------------------
Net increase from
capital share transactions 42,939 2,385
-----------------------------------------
TOTAL INCREASE IN NET ASSETS 51,925 7,777
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 28,409 20,632
END OF PERIOD $80,334 $28,409
-----------------------------------------
Accumulated net investment loss (273) (181)
- --------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
- --------------------------------------------------------------------------------
Shares sold 4,259 919
Shares redeemed (250) (637)
-----------------------------------------
NET INCREASE 4,009 282
=========================================
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
MARSICO INTERNATIONAL OPPORTUNITIES FUND
For a Fund Share Outstanding Throughout the Period.
Six Months Year Year Year 6/30/00*
Ended 3/31/04 Ended Ended Ended to
(Unaudited) 9/30/03 9/30/02 9/30/01 9/30/00
--------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $8.80 $7.00 $6.78 $10.36 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.02) 0.02 (0.02) - 0.01
Net realized and unrealized gains
(losses) on investments 2.32 1.78 0.19 (3.27) 0.35
--------------------------------------------------------------------------
Total from investment
operations 2.30 1.80 0.17 (3.27) 0.36
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS& OTHER
- ---------------------------------------------------------------------------------------------------------------------
Net investment income - - (0.01) (0.04) -
Net realized gains - - - (0.27) -
Redemption fees -(1) -(1) 0.05 - -
Payment by affiliate - - 0.01 - -
--------------------------------------------------------------------------
Total distributions & other - - 0.05 (0.31) -
--------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.10 $8.80 $7.00 $6.78 $10.36
--------------------------------------------------------------------------
TOTAL RETURN 26.28%(2) 25.57% 3.37% (32.32)% 3.60%(2)
- ---------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA AND RATIOS
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s) $80,334 $28,409 $20,632 $17,609 $15,480
Ratio of expenses to average net
assets, less waivers and before
expenses paid indirectly 1.60%(3) 1.68%(5) 1.60% 1.60% 1.60%(3)
Ratio of net investment income (loss)
to average net assets, net of waivers
and expenses paid indirectly (0.40)%(3) 0.18% (0.25)% 0.05% 0.33%(3)
Ratio of expenses to average net assets,
before waivers and expenses
paid indireclty 1.82%(3) 2.31% 2.07% 2.60% 4.76%(3)
Ratio of net investment loss to average
net assets, before waivers and expenses
paid indirectly (0.62)%(3) (0.45)% (0.73)% (0.94)% (2.83)%(3)
Portfolio turnover rate(4) 48%(2) 211% 192% 534% 190%(2)
* Inception.
(1) Less than $0.01.
(2) Not annualized for the periods less than one year.
(3) Annualized for the periods less than one year.
(4) Portfolio turnover is greater than most funds due to the investment style
of the Fund.
(5) See Note 3 for information regarding the voluntary fee waiver.
See notes to financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
MARSICO FUNDS
MARCH 31, 2004 (Unaudited)
1. ORGANIZATION
The Marsico Investment Fund (the "Trust") was organized on October 1, 1997,
as a Delaware Statutory Trust and is registered under the Investment
Company Act of 1940 (the "1940 Act") as an open-end management investment
company. The Focus Fund, the Growth Fund, the 21st Century Fund and the
International Opportunities Fund (collectively, the "Funds") are separate
investment portfolios of the Trust. The Focus Fund is a non-diversified
fund and the Growth Fund, the 21st Century Fund and the International
Opportunities Fund are diversified funds. The Focus and Growth Funds
commenced operations on December 31, 1997, the 21st Century Fund commenced
operations on February 1, 2000 and the International Opportunities Fund
commenced operations on June 30, 2000. Affiliates of the Adviser hold
approximately 10% of the 21st Century Fund and 25% of the International
Opportunities Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements.
These policies are in conformity with generally accepted accounting
principles ("GAAP") for investment companies. The presentation of financial
statements in conformity with GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of income
and expenses during the reporting period. Actual results could differ from
those estimates. Certain prior year information has been reformatted to
conform to the current year presentation.
(a) Investment Valuation-A security traded on a recognized stock exchange
is valued at the last sale price prior to the time when assets are
valued on the principal exchange on which the security is traded. If
no sale is reported on the valuation date, the most current bid price
will be used. All other securities for which over-the-counter market
quotations are readily available are valued at the most current
closing price. Debt securities that will mature in more than 60 days
are valued at prices furnished by a pricing service. Securities that
will mature in 60 days or less are valued at amortized cost, which
approximates market value. Any securities for which market quotations
are not readily available are valued at their fair value as determined
in good faith by the Adviser in accordance with procedures established
by, and under the general supervision of, the Trustees.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARSICO FUNDS
MARCH 31, 2004 (Unaudited)
(b) Expenses-The Funds are charged for those expenses that are directly
attributable to each Fund, such as advisory and custodian fees.
Expenses that are not directly attributable to a Fund are typically
allocated among the Funds in proportion to their respective net
assets. The Funds' expenses may be reduced by voluntary advisory fee
waivers, brokerage credits and uninvested cash balances earning
interest or credits. Such credits are included in Waiver of Expenses
and Expenses Paid Indirectly in the Statement of Operations.
Brokerage commissions were paid to unaffiliated brokers which reduced
certain transfer agent fees and expenses in the amount of $541,072 and
$204,623 for the Focus Fund and Growth Fund, respectively, for the six
months ended March 31, 2004. Also, the Funds received credits on
certain custody account balances which reduced certain transfer agent
fees and expenses in the amount of $2,582, $999, $157 and $46 for the
Focus Fund, Growth Fund, 21st Century Fund and International
Opportunities Fund, respectively, for the six months ended March 31,
2004. Brokerage commission credits and custody account earnings
credits are included in Expenses Paid Indirectly on the Statements of
Operations.
(c) Federal Income Taxes-Each Fund intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated
investment company and to make the requisite distributions of income
to its shareholders which will be sufficient to relieve it from all or
substantially all federal and state income and excise taxes.
(d) Distributions to Shareholders-Dividends from net investment income and
net realized capital gains, if any, will be declared and paid at least
annually. Distributions to shareholders are recorded on the ex-
dividend date. Each Fund may periodically make reclassifications among
certain of its capital accounts as a result of the timing and
characterization of certain income and capital gains determined in
accordance with federal tax regulations, which may differ from GAAP.
These reclassifications are due to differing treatment for items such
as deferral of wash sales, foreign currency transactions, net
operating losses and post-October capital losses.
(e) Foreign Currency Translation-The accounting records of the Funds are
maintained in U.S. dollars. Prices of securities denominated in
foreign currencies are translated into U.S. dollars at the closing
rates of exchange. Amounts related to the purchase and sale of foreign
securities and investment income are translated at the rates of
exchange prevailing on the respective dates of such transactions.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARSICO FUNDS
MARCH 31, 2004 (Unaudited)
Reported realized gains on foreign currency transactions arise from
sales of portfolio securities, forward currency contracts, currency
gains or losses realized between the trade and settlement dates on
securities transactions, the difference between the amounts of
dividends, interest, and foreign withholding taxes recorded on the
Funds' books, and the U.S. dollar equivalent of the amounts actually
received or paid.
The Funds do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from
the fluctuations arising from changes in market prices of securities
held at fiscal year-end. Net unrealized appreciation or depreciation
on investments and foreign currency translations arise from changes in
the value of assets and liabilities, including investments in
securities at fiscal year-end, resulting from changes in the exchange
rates and changes in market prices of securities held.
(f) Forward Currency Contracts and Futures Contracts-The Funds may enter
into forward currency contracts to reduce their exposure to changes in
foreign currency exchange rates on their foreign holdings and to lock
in the U.S. dollar cost of firm purchase and sale commitments for
securities denominated in foreign currencies. A forward currency
contract is a commitment to purchase or sell a foreign currency at a
future date at a negotiated forward rate. The gain or loss arising
from the difference between the U.S. dollar cost of the original
contract and the value of the foreign currency in U.S. dollars upon
closing of such contract is included in net realized gain or loss from
foreign currency transactions.
Forward currency contracts held by the Funds are fully collateralized
by other securities. If held by the Funds, such collateral would be in
the possession of the Funds' custodian. The collateral would be
evaluated daily to ensure its market value equals or exceeds the
current market value of the corresponding forward currency contracts.
Futures contracts are marked to market daily and the resultant
variation margin is recorded as an unrealized gain or loss. When a
contract is closed, a realized gain or loss is recorded equal to the
difference between the opening and closing value of the contract.
Generally, open forward and futures contracts are marked to market
(i.e., treated as realized and subject to distribution) for federal
income tax purposes at fiscal year-end.
Foreign-denominated assets and forward currency contracts may involve
more risks than domestic transactions, including currency risk,
political and economic risk, regulatory risk and market risk. Risks
may arise from the potential inability of a counterparty to meet the
terms of a contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARSICO FUNDS
MARCH 31, 2004 (Unaudited)
The Funds may enter into "futures contracts" and "options" on
securities, financial indexes and foreign currencies, forward
contracts, and interest rate swaps and swap-related products. The
Funds intend to use such derivative instruments primarily to hedge or
protect from adverse movements in securities prices, currency rates or
interest rates. The use of futures contracts and options may involve
risks such as the possibility of illiquid markets or imperfect
correlation between the value of the contracts and the underlying
securities, or that the counterparty will fail to perform its
obligations.
(g) Options Contracts-The Funds may purchase and write (sell) put and call
options on foreign and domestic stock indices, foreign currencies and
U.S. and foreign securities that are traded on U.S. and foreign
securities exchanges and over-the-counter markets. These transactions
are for hedging purposes or for the purpose of earning additional
income. In addition, the Funds may enter into such transactions for
cross-hedging purposes.
The risk associated with purchasing an option is that the Fund pays a
premium whether or not the option is exercised. Additionally, the Fund
bears the risk of loss of premium and change in market value should
the counterparty not perform under the contract. Put and call options
purchased are accounted for in the same manner as portfolio
securities. The cost of securities acquired through the exercise of
call options is increased by premiums paid. The proceeds from
securities sold through the exercise of put options are decreased by
the premiums paid.
When the Fund writes an option, the premium received by the Fund is
recorded as a liability and is subsequently adjusted to the current
market value of the option written. Premiums received from writing
options that expire are recorded by the Fund on the expiration date as
realized gains from option transactions. The difference between the
premium and the amount paid on effecting a closing purchase
transaction, including brokerage commissions, is also treated as a
realized gain, or if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security or currency in determining whether the Fund has
realized a gain or loss. If a put option is exercised, the premium
reduces the cost basis of the security or currency purchased by the
Fund. In writing an option, the Fund bears the market risk of an
unfavorable change in the price of the security or currency underlying
the written option. Exercise of an option written by the Fund could
result in the Fund selling or buying a security or currency at a price
different from the current market value.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARSICO FUNDS
MARCH 31, 2004 (Unaudited)
(h) Trustees' Compensation-Effective February 1, 2000, the Board of
Trustees adopted the Marsico Investment Fund Deferred Fee Plan (the
"Plan") that allows the independent Trustees to defer the receipt of
all or a portion of the Trustees' fees payable. The Trustees are
deemed to be notionally invested in the Funds until distribution in
accordance with the Plan. Included in the Trustees' Fees and Expenses
on the Statement of Operations is the unrealized appreciation of
$88,277, $60,026, $51,522 and $41,293 related to the mark-to-market of
the shares of the deferred plan for the Focus Fund, Growth Fund, 21st
Century Fund and International Opportunities Fund, respectively.
(i) Redemption Fee-For shares purchased on or after January 30, 2004, a
2.00% redemption fee is retained by the Funds to offset transaction
costs and other expenses associated with short-term investing. The fee
is imposed on redemptions or exchanges of shares held 30 days or less
from their purchase date. Prior to January 30, 2004, a 2.00%
redemption fee was imposed on redemptions or exchanges of shares of
the International Opportunities Fund held three months or less from
their purchase date. Redemption fees are recorded by the Funds as a
reduction of shares redeemed and as a credit to paid-in-capital. For
the period January 30 (effective date) to March 31, 2004, the Focus
Fund, Growth Fund and 21st Century Fund received $8,801, $2,230 and
$812, respectively, in redemption fees. For the six months ended March
31, 2004, the International Opportunities Fund received $16,873 in
redemption fees.
(j) Other-Investment transactions are accounted for on a trade date basis.
Each Fund determines the gain or loss realized from the investment
transactions by comparing the original cost of the security lot sold
with the net sale proceeds. Dividend income is recognized on the ex-
dividend date. Certain dividends from foreign securities will be
recorded as soon as the Trust is informed of the dividend if such
information is obtained subsequent to the ex-dividend date. Interest
income is recognized on an accrual basis.
During the year ended September 30, 2003, the fund accounting agent
reimbursed the 21st Century Fund $67,752 for an investment transaction
loss, which had resulted from an unintended error in available cash
balances for investment transactions. This reimbursement is included
in the Statement of Operations and Financial Highlights as an Increase
From Payment By Service Provider and did not have a significant effect
on the Fund's total return.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARSICO FUNDS
MARCH 31, 2004 (Unaudited)
3. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH AFFILIATES
The Funds have an agreement with Marsico Capital Management, LLC (the
"Adviser") to furnish investment advisory services to the Funds. Under the
terms of this agreement, the Adviser is compensated at the rate of 0.85% of
the average daily net assets of each of the Focus, Growth, 21st Century and
International Opportunities Funds. The Adviser has voluntarily agreed to
limit the total expenses of each Fund (excluding interest, taxes, brokerage
and extraordinary expenses) to an annual rate of 1.60% of the Focus and
International Opportunities Funds' average daily net assets and 1.50% of
the Growth and 21st Century Funds' average daily net assets until December
31, 2004. This fee waiver is voluntary and may be terminated at any time.
The voluntary waiver of expenses for the year ended September 30, 2003
excludes as an extraordinary item the unrealized appreciation of $30,090
and $17,937, respectively, for the 21st Century Fund and International
Opportunities Fund. The unrealized appreciation is included in the Change
in Unrealized Appreciation/Depreciation on Investment and Foreign Currency
Translations on the Statement of Operations. As a result, the unrealized
appreciation is retained by the Funds in accordance with the Plan. For
periods subsequent to September 30, 2003, unrealized appreciation/
depreciation of Fund shares in the Board of Trustees Deferred Fee Plan will
be subject to the Funds' expense reimbursement agreement with the Adviser.
The Adviser is entitled to reimbursement from a Fund of any fees waived
pursuant to this arrangement if such reimbursements do not cause a Fund to
exceed existing expense limitations and the reimbursement is made within
three years after the year in which the Adviser incurred the expense. For
the six months ended March 31, 2004, the Adviser recovered previously
waived fees of $50,962 in the 21st Century Fund.
As of March 31, 2004, the reimbursements that may potentially be made by
the 21st Century Fund and the International Opportunities Fund to the
Adviser are $153,474 and $403,141, respectively, which expire between 2004
and 2006.
Banc of America Securities is an affiliate of Marsico Capital Management,
LLC and is designated as an introductory broker on certain Fund
transactions. For the six months ended March 31, 2004, none of the Funds
paid brokerage commissions to Banc of America Securities.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARSICO FUNDS
MARCH 31, 2004 (Unaudited)
4. SERVICE AND DISTRIBUTION PLAN
The Funds have adopted a Service and Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by
the Funds in connection with the distribution of their shares at an annual
rate, as determined from time to time by the Board of Trustees, of up to
0.25% of a Fund's average daily net assets.
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the six months ended March 31, 2004, were as
follows:
(Amounts in thousands) Purchases Sales
---------------------------------------------------------------------------
Focus Fund $1,504,374 $1,332,818
Growth Fund 801,902 486,475
21st Century Fund 236,848 170,487
International Opportunities Fund 58,910 20,986
There were no purchases or sales of U.S. government securities.
6. FEDERAL INCOME TAX INFORMATION
At March 31, 2004, gross unrealized appreciation and depreciation of
investments, based on cost for federal income tax purposes were as follows:
21st International
Focus Growth Century Opportunities
(Amounts in thousands) Fund Fund Fund Fund
---------------------------------------------------------------------------
Cost of investments $2,325,429 $960,212 $172,946 $69,006
Gross unrealized
appreciation 517,351 228,231 28,679 12,312
Gross unrealized
depreciation (30,524) (9,917) (968) (231)
Net unrealized
appreciation
on investments $486,827 $218,314 $27,711 $12,081
The difference between cost amounts for financial statement and federal
income tax purposes is due primarily to wash sale loss deferrals and
foreign currency transactions.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARSICO FUNDS
MARCH 31, 2004 (Unaudited)
The Focus Fund and Growth Fund had realized capital losses (in thousands)
from transactions between November 1, 2002 and September 30, 2003 of
$47,093 and $10,671, respectively.
The Focus, Growth, 21st Century and International Opportunities Funds had
realized currency losses (in thousands) from transactions between November
1, 2002 and September 30, 2003 of $2,455, $26, $51 and $73, respectively.
Post-October currency losses and capital losses are treated as arising in
the Funds next fiscal year.
At September 30, 2003, Focus, Growth, 21st Century and International
Opportunities Funds had accumulated capital loss carryforwards (in
thousands) of $329,779, $133,120, $63,078 and $6,683, with $0, $0, $34,555
and $480 expiring in 2009, $242,309, $54,527, $28,523 and $6,125 expiring
in 2010 and $87,470, $78,593, $0 and $78 expiring in 2011, respectively.
To the extent that a fund may realize future net capital gains, those
gains will be offset by any of its unused capital loss carryforward.
The tax character of distributions paid during the fiscal years ended
September 30, 2003, and September 30, 2002 were as follows (in thousands):
21st International
Focus Growth Century Opportunities
Fund Fund Fund Fund
---------------------------------------------------------------------------
2003 2002 2003 2002 2003 2002 2003 2002
---------------------------------------------------------------------------
Ordinary income - - - - - - - $24
Return of capital - $4,530 - $717 - - - -
-------------------------------------------------------
TOTAL DISTRIBUTIONS
PAID - $4,530 - $717 - - - $24
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARSICO FUNDS
MARCH 31, 2004 (Unaudited)
As of September 30, 2003, the components of accumulated earnings (deficit)
on a tax basis were as follows:
21st International
Focus Growth Century Opportunities
(Amounts in thousands) Fund Fund Fund Fund
---------------------------------------------------------------------------
Undistributed ordinary
income (deficit) $(804) $(253) $(83) $(163)
Undistributed long-term
capital gains - - - -
Tax accumulated
earnings (deficit) (804) (253) (83) (163)
Accumulated capital and
other losses (376,872) (143,791) (63,078) (6,683)
Unrealized appreciation
on investments 386,953 148,361 14,991 4,529
TOTAL ACCUMULATED
EARNINGS (DEFICIT) $9,277 $4,317 $(48,170) $(2,317)
7. PROXY VOTING GUIDELINES
Marsico Capital Management, LLC, the Funds' Adviser, is responsible for
exercising the voting rights associated with the SECURITIES held by the
Funds. A description of the policies and procedures used by the Adviser in
fulfilling this responsibility is available without charge, upon request,
by calling 888-860-8686. It is also available on the Securities and
Exchange Commission's website at www.sec.gov.
- --------------------------------------------------------------------------------
[LOGO] MARSICO FUNDS/R
Helping you appreciate life/SM
The Marsico Investment Fund
UMB Distribution Services, LLC, Distributor
P.O. Box 3210, Milwaukee, WI 53201-3210
www.marsicofunds.com
888.860.8686
(C)2004 MARSICO CAPITAL MANAGEMENT, LLC.
Item 2 - Code of Ethics
Not applicable to semi-annual reports.
Item 3 - Audit Committee Financial Expert
Not applicable to semi-annual reports.
Item 4 - Principal Accountant Fees and Services
Not applicable to semi-annual reports.
Item 5 - Audit Committee of Listed Registrants
Not applicable.
Item 6 - Schedule of Investments
Disclosure requirement currently not effective.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 9 - Submission of Matters to a Vote of Security Holders
None.
Item 10 - Controls and Procedures
(a) The registrant's principal executive officer and principal financial officer
have concluded that the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended,
are effective based on their evaluation of these disclosure controls and
procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
Item 11 - Exhibits
(a)(1) Code of Ethics.
Not applicable to semi-annual reports.
(a)(2) Certification for each principal executive and principal financial
officer of the registrant as required by Rule 30a-2 under the Act (17 CFR
270.30a-2(a)).
(b) Certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) - Filed as an attachment to this filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
The Marsico Investment Fund
By: /s/ Thomas F. Marsico
Thomas F. Marsico
President
Date: June 2, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Thomas F. Marsico
Thomas F. Marsico
President
Date: June 2, 2004
By: /s/ Christopher J. Marsico
Christopher J. Marsico
Vice President and Treasurer
Date: June 2, 2004