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 1600
Denver, CO 80202
(Address of principal executive offices) (Zip code)
Christopher J. Marsico
The Marsico Investment Fund
1200 17th Street, Suite 1600
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, 2005
Item 1 - Reports to Stockholders
SEMI-ANNUAL REPORT
MARCH 31, 2005
[MARSICO FUNDS LOGO]
Helping you appreciate life/TM
The priorities that are closest to us extend well beyond day-to-day stock market
fluctuations. Family. Friends. Good health. Financial security.
- --------------------------------------------------------------------------------
At Marsico Funds, we understand the value of perspective. Perspective guides us
toward what truly matters most. Perspective reminds us that the most meaningful
goals are those that truly shape our lives, require conviction and are reached
over time - not in a day or in a week or even in a year.
That is why your investment in the Marsico Funds can benefit from our long-term
perspective, which is anchored by essential qualities such as experience, sound
investment principles, hard work and passion. Qualities that shape an enduring
investment process as well as a framework for life. All of which may help you
achieve your most important goals.
APRIL 2005
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
Enclosed is your semiannual report for the Marsico Investment Fund encompassing
the six-month period from October 1, 2004 - March 31, 2005. In many senses, the
time period represents a "tale of two equity markets" - one (the fourth quarter
of calendar year 2004) generally positive in nature, the other (first quarter of
calendar year 2005) not nearly so positive. The purpose of this letter is to
provide a retrospective for the Funds' six-month investment results by
discussing what we believe are the main factors that impacted performance (e.g.,
sector positioning, industry allocations, and stock selection) as compared to
the Funds' benchmark indexes. Certain sector or industry classifications used in
this letter may be broader than those used elsewhere in this semiannual report.
For our updated thoughts regarding the market environment and our overall
investment outlook, please refer to the first quarter 2005 shareholder letter
dated April 2005 that we previously sent to you (which is also available on our
web site at www.marsicofunds.com).
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Investment Review for Focus Fund and Growth Fund 4
- --------------------------------------------------------------------------------
MARSICO FOCUS FUND
- --------------------------------------------------------------------------------
Fund Overview 6
Schedule of Investments 7
Statement of Assets and Liabilities 8
Statement of Operations 8
Statements of Changes in Net Assets 9
Financial Highlights 10
- --------------------------------------------------------------------------------
MARSICO GROWTH FUND
- --------------------------------------------------------------------------------
Fund Overview 11
Schedule of Investments 12
Statement of Assets and Liabilities 14
Statement of Operations 14
Statements of Changes in Net Assets 15
Financial Highlights 16
- --------------------------------------------------------------------------------
MARSICO 21ST CENTURY FUND
- --------------------------------------------------------------------------------
Investment Review for 21st Century Fund 17
Fund Overview 18
Schedule of Investments 19
Statement of Assets and Liabilities 21
Statement of Operations 21
Statements of Changes in Net Assets 22
Financial Highlights 23
- --------------------------------------------------------------------------------
MARSICO INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
Investment Review for International Opportunities Fund 24
Fund Overview 26
Schedule of Investments 27
Statement of Assets and Liabilities 29
Statement of Operations 29
Statements of Changes in Net Assets 30
Financial Highlights 31
NOTES TO FINANCIAL STATEMENTS 32
EXPENSE EXAMPLE 37
ANNUAL RENEWAL OF INVESTMENT ADVISORY AGREEMENTS 38
OTHER INFORMATION 40
MARSICO FOCUS FUND & MARSICO GROWTH FUND
- --------------------------------------------------------------------------------
INVESTMENT REVIEW BY TOM MARSICO
The Focus Fund and Growth Fund posted total returns of 7.22% and 5.96%,
respectively, for the six-month period ended March 31, 2005. For comparative
purposes, the S&P 500/R Index - which we consider to be the Funds' primary
benchmark index - had a total return of 6.88% over the same time period. The
Funds reached 7-1/4 years of operating history as of the end of March 2005.
Please see the Funds' overviews for more detailed information about each of the
Funds' performance for various periods ended March 31, 2005. The performance
data for the Funds quoted here represent 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.(1)
The six-month reporting period ended March 31, 2005, as mentioned earlier in
this report, in our opinion was essentially divided into two very different
quarters for the US equity markets - one with robust gains and generally
positive economic and financial developments; the other with negative returns
and a "wall of worry" built on (among other factors) higher interest rates,
inflation concerns, and rising energy prices. The two environments melded into a
period where US equity returns, as well as the performance of the Funds, may
appear quite solid on an absolute basis. However, it is very interesting to take
a few extra steps and further examine those results in order to better
understand their main underlying sources.
During the six-month period, nine of ten economic sectors (GICS classification)
in the S&P 500/R Index, the Funds' primary benchmark index, had a positive
return. That said, market leadership over the period was decidedly skewed
towards certain areas. The leading sectors, in terms of investment returns,
included Energy (+23%), Utilities (+18%), Materials (+10%), and Consumer Staples
(+9%). In general, leadership by these types of areas suggested to us that
equity investors grew somewhat more risk-averse during the overall reporting
period, particularly during the first quarter of 2005. Sectors that
traditionally have been considered more "growth-oriented" in nature - such as
Information Technology, Financials, Health Care, and Telecommunications Services
- - had lower returns than the S&P 500/R Index for the overall reporting period,
and struggled noticeably in the first quarter of 2005.
The performance of the Focus Fund and the Growth Fund during the past six months
was, on balance, similar to the S&P 500/R Index, and was characterized by
several
- --------------------------------------------------------------------------------
common factors. The Focus Fund and Growth Fund often invest in similar growth
companies. Their performance has differed at times, however, because the Focus
Fund invests in a relatively more concentrated portfolio of securities, while
the Growth Fund has held some positions that are not present in the Focus
Fund.(2)
The Funds' investment results were buoyed primarily by several factors that
included generally positive positioning and stock selection within the Health
Care sector (e.g., UnitedHealth Group, Genentech); several positions owned in
the Diversified Financials industry (e.g., SLM Corporation, Goldman Sachs
Group); several hotel/casino operator investments (e.g., Wynn Resorts, MGM
Grand); and an underweighted posture (as compared to the benchmark index) in two
areas - Information Technology and Insurance - whose returns were lower than the
overall equity market.(3)
There were several offsetting factors limiting investment results. The main
performance detriment for the Funds over the reporting period was our decision
to remain significantly underweighted in the Energy sector. This investment
posture created an "opportunity cost" for the Funds, as the Energy sector (with
a 23% gain) was the strongest-performing area over the past six months. Two
other factors that materially impacted performance were our stock selection in
the Banks and Retailing industries. More specifically, Countrywide Financial
(-17% during the six-month period) and eBay (-13% prior to being sold) were
among the Funds' weaker-performing individual holdings.(3)
As of March 31, 2005 the Funds' primary economic sector allocations were in
Health Care, Consumer Discretionary, Financials, and Industrials. The Funds had
modest or no exposure in areas such as Energy, Utilities, Materials, and
Telecommunications Services.
Sincerely,
/s/ Thomas F. Marsico
THOMAS F. MARSICO
PORTFOLIO MANAGER
(1) A redemption fee may be imposed on redemptions or exchanges of Fund shares
owned for 30 days or less. See the prospectus for more information.
(2) Because the Focus Fund may hold securities of fewer issuers than other
diversified funds, the Fund is more exposed to individual stock volatility
and market pressures than funds investing in a larger number of securities.
(3) 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 percentage of a Fund's
portfolio represented by the securities or industries mentioned in this
letter.
MARSICO FOCUS FUND
- --------------------------------------------------------------------------------
FUND OVERVIEW MARCH 31, 2005 (UNAUDITED)
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.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
Five Year Average Annual
One Year Average Annual Since Inception
(4/1/04-3/31/05) (4/1/00-3/31/05) (12/31/97-3/31/05)
Marsico Focus Fund 5.86% -5.38% 8.33%
S&P 500/R Index 6.69% -3.16% 4.29%
- ---------------------------------------- --------------------------------------
NET ASSETS GROWTH OF $10,000(1)
- ---------------------------------------- --------------------------------------
3/31/05 $3,314,605,317 Marsico S&P 500/R
Focus Fund Index
- ---------------------------------------- 12/31/1997 10,000 10,000
NET ASSET VALUE 3/31/1998 12,310 11,395
- ---------------------------------------- 9/30/1998 12,360 10,600
Net Asset Value Per Share $15.90 3/31/1999 17,030 13,498
9/30/1999 17,430 13,548
- ---------------------------------------- 3/31/2000 23,542 15,920
TOP FIVE HOLDINGS 9/30/2000 22,210 15,347
- ---------------------------------------- 3/31/2001 15,692 12,469
UnitedHealth Group, Inc. 11.36% 9/30/2001 13,733 11,262
Genentech, Inc. 6.03 3/31/2002 15,956 12,500
General Electric Co. 5.88 9/30/2002 13,115 8,955
The Procter & Gamble Co. 5.46 3/31/2003 12,711 9,404
Lowe's Companies, Inc. 5.43 9/30/2003 15,148 11,140
3/31/2004 16,866 12,708
- ---------------------------------------- 9/30/2004 16,652 12,685
SECTOR ALLOCATION(2) 3/31/2005 17,854 13,558
- ----------------------------------------
Consumer Non-Cyclical 30.77%
Consumer Cyclical 21.06
Financial 18.04
Industrial 13.38
Technology 5.34
Communications 4.73
Energy 3.60
Utilities 3.08
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. A redemption fee may be imposed on
redemptions or exchanges of Fund shares owned for 30 days or less.
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). Total returns are based on net change in NAV, assuming
reinvestment of distributions.
(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.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 2005 (UNAUDITED)
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
ATHLETIC FOOTWEAR
NIKE, Inc. - Class B 785,889 $65,472,413 1.98%
---------------------------------------------
BUILDING -
RESIDENTIAL/COMMERCIAL
Lennar Corporation - Class A 1,024,730 58,081,696 1.75
---------------------------------------------
CASINO HOTELS
MGM MIRAGE* 834,051 59,067,492 1.78
Wynn Resorts Ltd.* 1,542,524 104,490,576 3.15
---------------------------------------------
163,558,068 4.93
---------------------------------------------
COMPUTERS
Dell, Inc.* 3,012,932 115,756,848 3.49
---------------------------------------------
COSMETICS & TOILETRIES
The Procter &
Gamble Company 3,412,068 180,839,604 5.46
---------------------------------------------
CRUISE LINES
Carnival Corporation 1,490,511 77,223,375 2.33
---------------------------------------------
DIVERSIFIED MANUFACTURING
OPERATIONS
General Electric Company 5,402,325 194,807,840 5.88
---------------------------------------------
ELECTRIC - INTEGRATED
TXU Corporation 1,244,784 99,122,150 2.99
---------------------------------------------
ENTERTAINMENT SOFTWARE
Electronic Arts, Inc.* 1,081,634 56,007,009 1.69
---------------------------------------------
FINANCE - CONSUMER LOANS
SLM Corporation 3,313,793 165,159,443 4.98
---------------------------------------------
FINANCE - INVESTMENT
BANKER/BROKER
The Goldman Sachs
Group, Inc. 1,487,573 163,618,154 4.94
---------------------------------------------
FINANCE - MORTGAGE
LOAN/BANKER
Countrywide Financial
Corporation 3,251,967 105,558,849 3.18
---------------------------------------------
FINANCE - OTHER SERVICES
The Chicago Mercantile
Exchange 311,708 60,480,703 1.82
---------------------------------------------
HOTELS & MOTELS
Four Seasons Hotels, Inc. 825,883 58,389,928 1.76
---------------------------------------------
MACHINERY - CONSTRUCTION
& MINING
Caterpillar, Inc. 947,716 86,659,151 2.61
---------------------------------------------
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
MEDICAL - BIOMEDICAL/GENETIC
Genentech, Inc.* 3,527,801 $199,708,815 6.03%
---------------------------------------------
MEDICAL - HMO
UnitedHealth Group, Inc. 3,948,111 376,570,827 11.36
---------------------------------------------
MEDICAL PRODUCTS
Johnson & Johnson 971,609 65,253,260 1.97
Zimmer Holdings, Inc.* 2,164,077 168,386,831 5.08
---------------------------------------------
233,640,091 7.05
---------------------------------------------
MONEY CENTER BANKS
UBS AG 1,020,313 86,114,417 2.60
---------------------------------------------
OIL COMPANIES - INTEGRATED
Exxon Mobil Corporation 1,505,131 89,705,808 2.71
---------------------------------------------
OIL - FIELD SERVICES
Schlumberger Ltd. 369,534 26,044,756 0.79
---------------------------------------------
RETAIL - BUILDING PRODUCTS
Lowe's Companies, Inc. 3,155,060 180,122,375 5.43
---------------------------------------------
RETAIL - RESTAURANTS
Starbucks Corporation* 1,456,073 75,220,731 2.27
---------------------------------------------
TRANSPORTATION - SERVICES
FedEx Corporation 1,588,002 149,192,788 4.50
---------------------------------------------
WIRELESS EQUIPMENT
QUALCOMM, Inc. 4,156,802 152,346,793 4.60
---------------------------------------------
TOTAL COMMON STOCKS
(COST $2,538,285,697) 3,219,402,632 97.13
---------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
- --------------------------------------------------------------------------------
SSgA Prime Money
Market Fund 149,997,471 149,997,471 4.53
SSgA Money Market Fund 16,343,155 16,343,155 0.49
---------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $166,340,626) 166,340,626 5.02
---------------------------------------------
TOTAL INVESTMENTS
(COST $2,704,626,323) 3,385,743,258 102.15
Liabilities Less Cash
and Other Assets (71,137,941) (2.15)
---------------------------------------------
NET ASSETS $3,314,605,317 100.00%
=============================================
* Non-income producing.
See notes to financial statements.
MARSICO FOCUS FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2005 (UNAUDITED)
(Amounts in thousands)
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $2,704,626) $3,385,743
Receivable for investments sold 5,671
Receivable for capital stock sold 4,186
Interest and dividends receivable 2,562
Prepaid expenses and other assets 861
--------------
TOTAL ASSETS 3,399,023
--------------
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 78,968
Payable for capital stock redeemed 1,478
Accrued investment advisory fee 2,363
Accrued distribution fee 18
Accrued trustees' fees 654
Accrued expenses and other liabilities 937
--------------
TOTAL LIABILITIES 84,418
--------------
NET ASSETS $3,314,605
==============
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------
Paid-in-capital $2,861,594
Accumulated net investment loss (5,998)
Accumulated net realized loss on investments
and foreign currency transactions (222,195)
Net unrealized appreciation on investments
and foreign currency translations 681,204
--------------
NET ASSETS $3,314,605
==============
SHARES OUTSTANDING, $0.001 PAR VALUE
(UNLIMITED SHARES AUTHORIZED) 208,451
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE
(NET ASSETS/SHARES OUTSTANDING)* $15.90
==============
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005
(UNAUDITED)
(Amounts in thousands)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $899
Dividends (net of $6 of non-reclaimable
foreign withholding taxes) 13,987
--------------
TOTAL INVESTMENT INCOME 14,886
--------------
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 13,213
Distribution fees 3,909
Transfer agent fees and expenses 1,676
Printing and postage expenses 307
Custody and fund accounting fees 227
Fund administration fees 152
Trustees' fees and expenses 142
Professional fees 101
Federal and state registration fees 38
Miscellaneous 128
--------------
TOTAL EXPENSES 19,893
Less expenses paid indirectly (647)
--------------
NET EXPENSES 19,246
--------------
NET INVESTMENT LOSS (4,360)
--------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 76,605
Net realized gain on options written 1,524
Net realized gain on foreign
currency transactions 1,037
Change in unrealized appreciation/
depreciation on investments and foreign
currency translations 131,367
--------------
Net Gain on Investments 210,533
--------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $206,173
==============
* Not in thousands.
See notes to financial statements.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended 3/31/05 Ended
(Amounts in thousands) (Unaudited) 9/30/04
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
Net investment loss $(4,360) $(9,652)
Net realized gain on investments 76,605 66,096
Net realized gain on options written 1,524 -
Net realized gain on foreign
currency transactions 1,037 12,287
Change in unrealized appreciation/depreciation
on investments and foreign currency
translations 131,367 158,667
--------------------------------
Net increase in net assets resulting
from operations 206,173 227,398
--------------------------------
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Proceeds from sale of shares 555,703 1,022,647
Redemption fees 19 27
Redemption of shares (342,612) (636,863)
--------------------------------
Net increase from capital share transactions 213,110 385,811
--------------------------------
TOTAL INCREASE IN NET ASSETS 419,283 613,209
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 2,895,322 2,282,113
--------------------------------
END OF PERIOD $3,314,605 $2,895,322
================================
Accumulated net investment loss (5,998) (1,638)
- --------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
- --------------------------------------------------------------------------------
Shares sold 34,894 69,859
Shares redeemed (21,620) (43,900)
--------------------------------
NET INCREASE 13,274 25,959
================================
See notes to financial statements.
MARSICO FOCUS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Six Months Year Year Year Year Year
For a Fund Share Outstanding Ended 3/31/05 Ended Ended Ended Ended Ended
Throughout the Period. (Unaudited) 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
NET ASSET VALUE, BEGINNING OF PERIOD $14.83 $13.49 $11.68 $12.27 $22.17 $17.43
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.02) (0.05) (0.03) (0.08) (0.07) (0.16)
Net realized and unrealized gains
(losses) on investments 1.09 1.39 1.84 (0.47) (7.87) 4.94
---------------------------------------------------------------------------------
Total from investment operations 1.07 1.34 1.81 (0.55) (7.94) 4.78
---------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS & OTHER
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gains - - - - (1.96) (0.04)
Tax return of capital - - - (0.04) - -
Redemption fees [See Note 2(i)] -(1) -(1) - - - -
---------------------------------------------------------------------------------
Total distributions & other - - - (0.04) (1.96) (0.04)
---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $15.90 $14.83 $13.49 $11.68 $12.27 $22.17
---------------------------------------------------------------------------------
TOTAL RETURN 7.22%(2) 9.93% 15.50% (4.50)% (38.17)% 27.42%
- ------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA AND RATIOS
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s) $3,314,605 $2,895,322 $2,282,113 $1,274,068 $1,311,495 $2,853,805
Ratio of expenses to average net assets,
before expenses paid indirectly 1.27%(3) 1.30% 1.34% 1.35% 1.30% 1.27%
Ratio of net investment loss to average
net assets, net of expenses paid indirectly (0.28)%(3) (0.36)% (0.54)% (0.64)% (0.36)% (0.69)%
Ratio of net investment loss to average
net assets, before expenses paid indirectly (0.32)%(3) (0.40)% (0.59)% (0.68)% (0.39)% (0.70)%
Portfolio turnover rate 56%(2) 84% 90% 117% 127% 176%
(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.
MARSICO GROWTH FUND
- --------------------------------------------------------------------------------
FUND OVERVIEW MARCH 31, 2005 (UNAUDITED)
The Growth Fund invests primarily in the common stocks of large companies that
are selected for their long-term growth potential. The Growth Fund will normally
hold a core position of between 35 and 50 common stocks.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
Five Year Average Annual
One Year Average Annual Since Inception
(4/1/04-3/31/05) (4/1/00-3/31/05) (12/31/97-3/31/05)
Marsico Growth Fund 6.62% -4.76% 8.21%
S&P 500/R Index 6.69% -3.16% 4.29%
- ----------------------------------------- ------------------------------------
NET ASSETS GROWTH OF $10,000(1)
- ----------------------------------------- ------------------------------------
3/31/05 $1,727,824,250 Marsico S&P 500/R
Growth Fund Index
- ----------------------------------------- 12/31/1997 10,000 10,000
NET ASSET VALUE 3/31/1998 11,960 11,395
- ----------------------------------------- 9/30/1998 11,540 10,600
Net Asset Value Per Share $16.90 3/31/1999 15,710 13,498
9/30/1999 16,290 13,548
- ----------------------------------------- 3/31/2000 22,607 15,920
TOP FIVE HOLDINGS 9/30/2000 20,938 15,347
- ----------------------------------------- 3/31/2001 15,495 12,469
UnitedHealth Group, Inc. 7.91% 9/30/2001 13,307 11,262
General Electric Co. 4.51 3/31/2002 15,304 12,500
Genentech, Inc. 4.32 9/30/2002 12,452 8,955
FedEx Corp. 3.58 3/31/2003 12,158 9,404
The Procter & Gamble Co. 3.52 9/30/2003 14,769 11,140
3/31/2004 16,614 12,708
- ----------------------------------------- 9/30/2004 16,719 12,685
SECTOR ALLOCATION(2) 3/31/2005 17,714 13,558
- -----------------------------------------
Consumer Non-Cyclical 30.07%
Consumer Cyclical 23.83
Industrial 16.09
Financial 15.51
Technology 5.92
Energy 4.05
Communications 3.48
Utilities 1.05
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. A redemption fee may be imposed on
redemptions or exchanges of Fund shares owned for 30 days or less.
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). Total returns are based on net change in NAV, assuming
reinvestment of distributions.
(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.
MARSICO GROWTH FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 2005 (UNAUDITED)
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
AEROSPACE/DEFENSE
General Dynamics Corporation 235,733 $25,235,218 1.46%
Lockheed Martin Corporation 423,915 25,884,250 1.50
---------------------------------------------
51,119,468 2.96
---------------------------------------------
AEROSPACE/DEFENSE -
EQUIPMENT
United Technologies
Corporation 327,198 33,262,949 1.93
---------------------------------------------
ATHLETIC FOOTWEAR
NIKE, Inc. - Class B 414,133 34,501,420 2.00
---------------------------------------------
AUDIO/VIDEO PRODUCTS
Harman International
Industries, Inc. 77,654 6,869,273 0.40
Sony Corporation 134,911 5,399,138 0.31
---------------------------------------------
12,268,411 0.71
---------------------------------------------
BEVERAGES - NON-ALCOHOLIC
PepsiCo, Inc. 207,508 11,004,149 0.64
---------------------------------------------
BUILDING -
RESIDENTIAL/COMMERCIAL
KB HOME 173,162 20,339,608 1.18
Lennar Corporation - Class A 438,937 24,878,949 1.44
M.D.C. Holdings, Inc. 247,967 17,270,901 1.00
Toll Brothers, Inc.* 167,215 13,184,903 0.76
---------------------------------------------
75,674,361 4.38
---------------------------------------------
CASINO HOTELS
MGM MIRAGE* 276,152 19,557,085 1.13
Wynn Resorts Ltd.* 791,390 53,608,759 3.10
---------------------------------------------
73,165,844 4.23
---------------------------------------------
COMMERCIAL BANKS -
WESTERN US
UCBH Holdings, Inc. 190,036 7,582,436 0.44
---------------------------------------------
COMPUTER GRAPHICS
Pixar* 87,023 8,489,094 0.49
---------------------------------------------
COMPUTERS
Dell, Inc.* 1,251,593 48,086,203 2.78
---------------------------------------------
COSMETICS & TOILETRIES
The Procter &
Gamble Company 1,148,708 60,881,524 3.52
---------------------------------------------
CRUISE LINES
Royal Caribbean Cruises Ltd. 500,208 22,354,295 1.29
---------------------------------------------
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING
OPERATIONS
General Electric Company 2,162,173 $77,967,958 4.51%
---------------------------------------------
ELECTRIC - INTEGRATED
TXU Corporation 217,549 17,323,427 1.00
---------------------------------------------
ENTERTAINMENT SOFTWARE
Electronic Arts, Inc.* 798,999 41,372,168 2.39
---------------------------------------------
FINANCE - CONSUMER LOANS
SLM Corporation 996,188 49,650,010 2.87
---------------------------------------------
FINANCE - INVESTMENT
BANKER/BROKER
Citigroup, Inc. 606,374 27,250,448 1.58
The Goldman Sachs
Group, Inc. 356,425 39,203,186 2.27
---------------------------------------------
66,453,634 3.85
---------------------------------------------
FINANCE - MORTGAGE
LOAN/BANKER
Countrywide Financial
Corporation 1,564,949 50,798,245 2.94
---------------------------------------------
FINANCE - OTHER SERVICES
The Chicago Mercantile
Exchange 109,337 21,214,658 1.23
---------------------------------------------
HOTELS & MOTELS
Four Seasons Hotels, Inc. 336,417 23,784,682 1.38
---------------------------------------------
MACHINERY - CONSTRUCTION
& MINING
Caterpillar, Inc. 456,199 41,714,837 2.41
---------------------------------------------
MEDICAL - BIOMEDICAL/GENETIC
Genentech, Inc.* 1,317,964 74,609,942 4.32
---------------------------------------------
MEDICAL - DRUGS
Pfizer, Inc. 734,325 19,290,718 1.12
---------------------------------------------
MEDICAL - HMO
Aetna, Inc. 79,500 5,958,525 0.34
PacifiCare Health
Systems, Inc.* 141,612 8,060,555 0.47
UnitedHealth Group, Inc. 1,432,727 136,653,501 7.91
WellPoint, Inc.* 69,697 8,736,519 0.51
---------------------------------------------
159,409,100 9.23
---------------------------------------------
* Non-income producing.
See notes to financial statements.
SCHEDULE OF INVESTMENTS MARCH 31, 2005 (UNAUDITED)
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
MEDICAL INSTRUMENTS
Medtronic, Inc. 446,097 $22,728,642 1.32%
St. Jude Medical, Inc.* 731,240 26,324,640 1.52
---------------------------------------------
49,053,282 2.84
---------------------------------------------
MEDICAL LABS &
TESTING SERVICES
Quest Diagnostics, Inc. 180,730 19,000,145 1.10
---------------------------------------------
MEDICAL PRODUCTS
Johnson & Johnson 505,391 33,942,060 1.96
Zimmer Holdings, Inc.* 675,002 52,521,906 3.04
---------------------------------------------
86,463,966 5.00
---------------------------------------------
MONEY CENTER BANKS
UBS AG 529,937 44,726,683 2.59
---------------------------------------------
MOTORCYCLE/MOTOR
SCOOTER MANUFACTURER
Harley-Davidson, Inc. 133,048 7,684,852 0.44
---------------------------------------------
OIL COMPANIES - INTEGRATED
Exxon Mobil Corporation 794,958 47,379,497 2.74
---------------------------------------------
OIL - FIELD SERVICES
Schlumberger Ltd. 278,755 19,646,652 1.14
---------------------------------------------
REAL ESTATE
OPERATING/DEVELOPMENT
The St. Joe Company 238,516 16,052,127 0.93
---------------------------------------------
RETAIL - BUILDING PRODUCTS
Lowe's Companies, Inc. 870,357 49,688,681 2.88
---------------------------------------------
RETAIL - DISCOUNT
Target Corporation 426,943 21,355,689 1.24
---------------------------------------------
RETAIL - DRUG STORE
CVS Corporation 287,854 15,146,877 0.88
Walgreen Co. 391,010 17,368,664 1.00
---------------------------------------------
32,515,541 1.88
---------------------------------------------
RETAIL - RESTAURANTS
Starbucks Corporation* 466,147 24,081,154 1.39
Yum! Brands, Inc. 662,889 34,344,279 1.99
---------------------------------------------
58,425,433 3.38
---------------------------------------------
TRANSPORTATION - SERVICES
FedEx Corporation 658,912 61,904,782 3.58
---------------------------------------------
WIRELESS EQUIPMENT
QUALCOMM, Inc. 1,568,220 57,475,263 3.33
---------------------------------------------
TOTAL COMMON STOCKS
(COST $1,311,856,711) 1,653,352,126 95.69
---------------------------------------------
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
- --------------------------------------------------------------------------------
SSgA Prime Money
Market Fund 78,028,079 $78,028,079 4.52%
SSgA Money Market Fund 43,636,604 43,636,604 2.52
---------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $121,664,683) 121,664,683 7.04
---------------------------------------------
TOTAL INVESTMENTS
(COST $1,433,521,394) 1,775,016,809 102.73
Liabilities Less Cash
and Other Assets (47,192,559) (2.73)
---------------------------------------------
NET ASSETS $1,727,824,250 100.00%
=============================================
* Non-income producing.
See notes to financial statements.
MARSICO GROWTH FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2005 (UNAUDITED)
(Amounts in thousands)
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $1,433,521) $1,775,017
Receivable for investments sold 6,193
Receivable for capital stock sold 2,948
Interest and dividends receivable 1,015
Prepaid expenses and other assets 490
--------------
TOTAL ASSETS 1,785,663
--------------
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 55,201
Payable for capital stock redeemed 496
Accrued investment advisory fee 1,241
Accrued distribution fee 156
Accrued trustees' fees 338
Accrued expenses and other liabilities 407
--------------
TOTAL LIABILITIES 57,839
--------------
NET ASSETS $1,727,824
==============
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------
Paid-in-capital $1,516,653
Accumulated net investment loss (1,824)
Accumulated net realized loss on investments
and foreign currency transactions (128,553)
Net unrealized appreciation on investments
and foreign currency translations 341,548
--------------
NET ASSETS $1,727,824
==============
SHARES OUTSTANDING, $0.001 PAR VALUE
(UNLIMITED SHARES AUTHORIZED) 102,215
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE
(NET ASSETS/SHARES OUTSTANDING)* $16.90
==============
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005
(UNAUDITED)
(Amounts in thousands)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $7,161
Dividends (net of $3 of non-reclaimable
foreign withholding taxes) 1,145
--------------
TOTAL INVESTMENT INCOME 8,306
--------------
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 6,683
Distribution fees 1,965
Transfer agent fees and expenses 693
Printing and postage expenses 156
Custody and fund accounting fees 126
Fund administration fees 113
Trustees' fees and expenses 68
Professional fees 56
Federal and state registration fees 50
Miscellaneous 51
--------------
TOTAL EXPENSES 9,961
Less expenses paid indirectly (157)
--------------
NET EXPENSES 9,804
--------------
NET INVESTMENT LOSS (1,498)
--------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 5,055
Net realized gain on foreign
currency transactions 1,037
Net realized gain on options written 42
Change in unrealized appreciation/
depreciation on investments and foreign
currency translations 77,098
--------------
Net Gain on Investments 83,232
--------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $81,734
==============
* Not in thousands.
See notes to financial statements.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended 3/31/05 Ended
(Amounts in thousands) (Unaudited) 9/30/04
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
Net investment loss $(1,498) $(3,796)
Net realized gain on investments 5,055 9,815
Net realized gain on options written 42 -
Net realized gain on foreign
currency transactions 1,037 1,481
Change in unrealized appreciation/depreciation
on investments and foreign currency
translations 77,098 113,857
-------------------------------
Net increase in net assets resulting
from operations 81,734 121,357
-------------------------------
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Proceeds from sale of shares 405,593 684,707
Redemption fees 29 21
Redemption of shares (122,957) (231,880)
-------------------------------
Net increase from capital share transactions 282,665 452,848
-------------------------------
TOTAL INCREASE IN NET ASSETS 364,399 574,205
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 1,363,425 789,220
-------------------------------
END OF PERIOD $1,727,824 $1,363,425
===============================
Accumulated net investment loss (1,824) (326)
- --------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
- --------------------------------------------------------------------------------
Shares sold 23,979 44,600
Shares redeemed (7,260) (15,100)
-------------------------------
NET INCREASE 16,719 29,500
===============================
See notes to financial statements.
MARSICO GROWTH FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Six Months Year Year Year Year Year
For a Fund Share Outstanding Ended 3/31/05 Ended Ended Ended Ended Ended
Throughout the Period. (Unaudited) 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
NET ASSET VALUE, BEGINNING OF PERIOD $15.95 $14.09 $11.88 $12.71 $20.82 $16.29
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.01) (0.04) (0.07) (0.04) (0.09) (0.11)
Net realized and unrealized gains
(losses) on investments 0.96 1.90 2.28 (0.77) (7.32) 4.75
-----------------------------------------------------------------------------
Total from investment operations 0.95 1.86 2.21 (0.81) (7.41) 4.64
-----------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS & OTHER
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gains - - - - (0.70) (0.11)
Tax return of capital - - - (0.02) - -
Redemption fees [See Note 2(i)] -(1) -(1) - - - -
-----------------------------------------------------------------------------
Total distributions & other - - - (0.02) (0.70) (0.11)
-----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $16.90 $15.95 $14.09 $11.88 $12.71 $20.82
-----------------------------------------------------------------------------
TOTAL RETURN 5.96%(2) 13.20% 18.60% (6.42)% (36.45)% 28.53%
- ------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA AND RATIOS
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s) $1,727,824 $1,363,425 $789,220 $641,974 $530,904 $1,002,722
Ratio of expenses to average net assets,
before expenses paid indirectly 1.27%(3) 1.30% 1.38% 1.37% 1.33% 1.30%
Ratio of net investment loss to average
net assets, net of expenses paid indirectly (0.19)%(3) (0.34)% (0.62)% (0.49)% (0.53)% (0.54)%
Ratio of net investment loss to average
net assets, before expenses paid indirectly (0.21)%(3) (0.38)% (0.67)% (0.52)% (0.55)% (0.55)%
Portfolio turnover rate 40%(2) 73% 91% 111% 120% 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.
MARSICO 21ST CENTURY FUND
- --------------------------------------------------------------------------------
INVESTMENT REVIEW BY CORY GILCHRIST
I am pleased to report that the 21st Century Fund had a total return of 9.71%
for the six-month period ended March 31, 2005. For comparative purposes, the S&P
500/R Index (which we consider to be the Fund's primary benchmark index),
Russell 3000 Index (a proxy for the performance of all publicly traded US
stocks, including smaller capitalization companies), and Nasdaq Composite Index
(consisting primarily of technology-related companies) had total returns of
6.88%, 7.73%, and 5.73%, respectively, over the same period. Please see the Fund
overview for more detailed information about the Fund's performance for various
periods ended March 31, 2005. The performance data for the Fund quoted here
represent 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.(1)
The Fund's performance during the six months ended March 31, 2005 benefited
primarily from stock selection in the Consumer Discretionary sector,
particularly those stocks in two industry groups: Hotels, Restaurants & Leisure;
and Media. The former category included holdings such as Wynn Resorts (+31%
during the six-month period), Shangri-La Asia (+36%), Las Vegas Sands (+55%),
and Kerzner International (+32%). As to the Fund's media-related holdings during
the reporting period, positions in Getty Images (+27% prior to being sold),
Dreamworks Animation (+44% prior to being sold), and Pixar (+15%) materially
enhanced performance.(2)
Several other individual holdings, spanning a variety of industries, also
contributed positively to the Fund's six-month return. These included Chicago
Mercantile Exchange (+21%), UnitedHealth Group (+29%), and Monsanto (+42% prior
to being sold).(2)
The main "Achilles heel" in terms of the Fund's performance was our decision to
have a limited number of investments in the Energy sector and an overall
underweighted posture in this sector as compared to the benchmark index. This
sector rose well over 20% during the past six months, and so our decision to
essentially remain "on the sidelines" detracted from the Fund's performance.
We also had some individual positions during the reporting period whose returns
were considerably lower than the Fund's benchmark index and significantly
detracted from performance. These included Harman International (-18%),
Countrywide Financial (-17%), and MarketAxess Holdings (+2%).(2)
The Fund has tended to have a relatively high portfolio turnover level because
of its investment style. Although the Fund may hold core positions for some
time, it may change its portfolio composition quickly to take advantage of new
opportunities, or to address issues affecting particular holdings.
In terms of economic sector distribution, the Fund maintained three areas of
emphasis as of March 31, 2005: Consumer Discretionary, Financials, and Health
Care. The Fund had a modest allocation to Energy as of the end of the reporting
period, and had few or no investments in Utilities, Materials, and
Telecommunications Services.
Sincerely,
/s/ Corydon J. Gilchrist
CORYDON J. GILCHRIST
PORTFOLIO MANAGER
(1) The performance returns for the 21st Century Fund (for the period prior to
March 31, 2004) reflect a fee waiver in effect; in the absence of such a
waiver, the returns would be reduced. For the period beginning April 1,
2004, performance returns for the 21st Century Fund would be higher but for
the reimbursement of fees waived previously. A redemption fee may be
imposed on redemptions or exchanges of Fund shares owned for 30 days or
less. See the prospectus for more information.
(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 percentage of the Fund's
portfolio represented by the securities or industries mentioned in this
letter.
MARSICO 21ST CENTURY FUND
- --------------------------------------------------------------------------------
FUND OVERVIEW MARCH 31, 2005 (UNAUDITED)
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
- --------------------------------------------------------------------------------
Five Year Average Annual
One Year Average Annual Since Inception
(4/1/04-3/31/05) (4/1/00-3/31/05) (2/1/00-3/31/05)
Marsico 21st
Century Fund 9.06%(1) -2.67% 2.20%(1)
S&P 500/R Index 6.69% -3.16% -1.66%
- ----------------------------------------- -------------------------------------
NET ASSETS GROWTH OF $10,000(1)(2)
- ----------------------------------------- -------------------------------------
3/31/05 $392,768,784 Marsico 21st S&P 500/R
Century Fund Index
- ----------------------------------------- 2/01/2000 10,000 10,000
NET ASSET VALUE 3/31/2000 12,810 10,770
- ----------------------------------------- 9/30/2000 10,860 10,383
Net Asset Value Per Share $11.19 3/31/2001 7,290 8,436
9/30/2001 6,260 7,619
- ----------------------------------------- 3/31/2002 7,520 8,456
TOP FIVE HOLDINGS 9/30/2002 6,540 6,058
- ----------------------------------------- 3/31/2003 6,540 6,362
Wynn Resorts Ltd. 4.70% 9/30/2003 8,740 7,536
UCBH Holdings, Inc. 4.63 3/31/2004 10,260 8,597
UBS AG 3.98 9/30/2004 10,200 8,582
UnitedHealth Group, Inc. 3.96 3/31/2005 11,190 9,172
St. Joe Co. 3.91
- -----------------------------------------
SECTOR ALLOCATION(3)
- -----------------------------------------
Consumer Cyclical 32.55%
Financial 31.35
Consumer Non-Cyclical 15.39
Technology 9.21
Industrial 5.62
Communications 3.78
Energy 2.10
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. A redemption fee may be imposed on
redemptions or exchanges of Fund shares owned for 30 days or less.
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 (for the period prior to
March 31, 2004) reflect a fee waiver in effect; in the absence of such a
waiver, the returns would be reduced. For the period beginning April 1,
2004 performance returns for the 21st Century Fund would be higher but for
the reimbursement of fees waived previously.
(2) This chart assumes an initial investment of $10,000 made on February 1,
2000 (inception). Total returns are based on net change in NAV, assuming
reinvestment of distributions.
(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.
SCHEDULE OF INVESTMENTS MARCH 31, 2005 (UNAUDITED)
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
AEROSPACE/DEFENSE -
EQUIPMENT
United Technologies
Corporation 95,038 $9,661,563 2.46%
---------------------------------------------
AUDIO/VIDEO PRODUCTS
Harman International
Industries, Inc. 76,310 6,750,383 1.72
Sony Corporation 30,634 1,225,973 0.31
---------------------------------------------
7,976,356 2.03
---------------------------------------------
BUILDING -
RESIDENTIAL/COMMERCIAL
Toll Brothers, Inc.* 75,222 5,931,255 1.51
WCI Communities, Inc.* 188,129 5,658,920 1.44
---------------------------------------------
11,590,175 2.95
---------------------------------------------
CASINO HOTELS
Kerzner International Ltd.* 216,005 13,225,986 3.37
Las Vegas Sands Corp.* 243,896 10,975,320 2.79
Wynn Resorts Ltd.* 272,217 18,439,980 4.70
---------------------------------------------
42,641,286 10.86
---------------------------------------------
COMMERCIAL BANKS -
SOUTHERN US
The South Financial
Group, Inc. 245,849 7,508,228 1.91
---------------------------------------------
COMMERCIAL BANKS -
WESTERN US
UCBH Holdings, Inc. 456,086 18,197,831 4.63
---------------------------------------------
COMPUTER GRAPHICS
Pixar* 149,213 14,555,728 3.71
---------------------------------------------
COMPUTERS
Dell, Inc.* 342,604 13,162,846 3.35
---------------------------------------------
CRUISE LINES
Royal Caribbean Cruises Ltd. 265,707 11,874,446 3.02
---------------------------------------------
ENTERTAINMENT SOFTWARE
Electronic Arts, Inc.* 120,231 6,225,561 1.59
---------------------------------------------
FINANCE - CONSUMER LOANS
The First Marblehead
Corporation* 56,242 3,235,602 0.82
---------------------------------------------
FINANCE - INVESTMENT
BANKER/BROKER
Jefferies Group, Inc. 332,196 12,517,145 3.19
---------------------------------------------
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
FINANCE - MORTGAGE
LOAN/BANKER
Countrywide Financial
Corporation 361,307 $11,728,025 2.99%
---------------------------------------------
FINANCE - OTHER SERVICES
The Chicago Mercantile
Exchange 56,558 10,973,949 2.79
MarketAxess Holdings, Inc.* 251,983 2,814,650 0.72
---------------------------------------------
13,788,599 3.51
---------------------------------------------
FOOD - DAIRY PRODUCTS
Dean Foods Company* 353,911 12,139,147 3.09
---------------------------------------------
FOOD - RETAIL
Whole Foods Market, Inc. 39,077 3,990,934 1.02
---------------------------------------------
HOTELS & MOTELS
Four Seasons Hotels, Inc. 50,441 3,566,179 0.91
Shangri-La Asia Ltd. 6,119,006 8,865,339 2.26
Shangri-La Asia Ltd. 144A 832,000 1,205,418 0.31
---------------------------------------------
13,636,936 3.48
---------------------------------------------
LEISURE & RECREATION PRODUCTS
Brunswick Corporation 207,647 9,728,262 2.48
---------------------------------------------
MEDICAL - BIOMEDICAL/GENETIC
Genentech, Inc.* 187,607 10,620,432 2.70
---------------------------------------------
MEDICAL - HMO
AMERIGROUP Corporation* 395,045 14,442,845 3.68
UnitedHealth Group, Inc. 163,086 15,555,143 3.96
---------------------------------------------
29,997,988 7.64
---------------------------------------------
MONEY CENTER BANKS
UBS AG 185,051 15,626,563 3.98
---------------------------------------------
MOTION PICTURES & SERVICES
Lions Gate Entertainment
Corp.* 526,232 5,814,864 1.48
---------------------------------------------
OIL COMPANIES - INTEGRATED
Sasol Ltd. 324,430 7,737,656 1.97
---------------------------------------------
REAL ESTATE
OPERATING/DEVELOPMENT
The St. Joe Company 228,350 15,367,955 3.91
---------------------------------------------
REITS - DIVERSIFIED
Crystal River Capital 144A* 240,411 6,010,275 1.53
Government Properties
Trust, Inc. 771,262 7,681,769 1.96
---------------------------------------------
13,692,044 3.49
---------------------------------------------
* Non-income producing.
See notes to financial statements.
MARSICO 21ST CENTURY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2005 (UNAUDITED) (continued)
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
REITS - MORTGAGE
Redwood Trust, Inc. 76,848 $3,933,081 1.00%
---------------------------------------------
RETAIL - PET FOOD & SUPPLIES
PETsMART, Inc. 215,122 6,184,758 1.57
---------------------------------------------
RETAIL - RESTAURANTS
Yum! Brands, Inc. 204,106 10,574,732 2.69
---------------------------------------------
TRANSPORTATION - SERVICES
FedEx Corporation 117,659 11,054,063 2.81
---------------------------------------------
WIRELESS EQUIPMENT
QUALCOMM, Inc. 380,806 13,956,540 3.55
---------------------------------------------
TOTAL COMMON STOCKS
(COST $329,377,696) 368,719,346 93.88
---------------------------------------------
Principal Market Percent
Amount Value of Net
in Dollars in Dollars Assets
- --------------------------------------------------------------------------------
CORPORATE BONDS
- --------------------------------------------------------------------------------
Kerzner International Ltd.
2.375%, 4-15-24 $1,543,000 $1,868,959 0.47%
---------------------------------------------
TOTAL CORPORATE BONDS
(COST $1,586,539) 1,868,959 0.47
---------------------------------------------
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
SSgA Prime Money
Market Fund 17,674,730 17,674,730 4.50
SSgA Money Market Fund 9,684,650 9,684,650 2.47
---------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $27,359,380) 27,359,380 6.97
---------------------------------------------
TOTAL INVESTMENTS
(COST $358,323,615) 397,947,685 101.32
Liabilities Less Cash
and Other Assets (5,178,901) (1.32)
---------------------------------------------
NET ASSETS $392,768,784 100.00%
=============================================
* Non-income producing.
See notes to financial statements.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2005 (UNAUDITED)
(Amounts in thousands)
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $358,324) $397,948
Receivable for investments sold 2,729
Receivable for capital stock sold 674
Interest and dividends receivable 308
Prepaid expenses and other assets 220
--------------
TOTAL ASSETS 401,879
--------------
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 8,097
Payable for capital stock redeemed 237
Accrued investment advisory fee 284
Accrued distribution fee 236
Accrued trustees' fees 145
Unrealized loss on foreign currency
exchange contracts 2
Accrued expenses and other liabilities 109
--------------
TOTAL LIABILITIES 9,110
--------------
NET ASSETS $392,769
==============
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------
Paid-in-capital $402,842
Accumulated net investment loss (955)
Accumulated net realized loss on investments
and foreign currency transactions (48,784)
Net unrealized appreciation on investments
and foreign currency translations 39,666
--------------
NET ASSETS $392,769
==============
SHARES OUTSTANDING, $0.001 PAR VALUE
(UNLIMITED SHARES AUTHORIZED) 35,087
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE
(NET ASSETS/SHARES OUTSTANDING)* $11.19
==============
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005
(UNAUDITED)
(Amounts in thousands)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $229
Dividends (net of $0 of non-reclaimable
foreign withholding taxes) 1,474
--------------
TOTAL INVESTMENT INCOME 1,703
--------------
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 1,328
Distribution fees 391
Transfer agent fees and expenses 145
Fund administration fees 70
Custody and fund accounting fees 56
Printing and postage expenses 29
Trustees' fees and expenses 22
State registration fees 16
Professional fees 12
Miscellaneous 8
--------------
TOTAL EXPENSES 2,077
Less expenses paid indirectly (1)
Recovery of previously waived expenses 99
--------------
NET EXPENSES 2,175
--------------
NET INVESTMENT LOSS (472)
--------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 2,578
Net realized gain on foreign
currency transactions 115
Change in unrealized appreciation/
depreciation on investments and foreign
currency translations 14,969
--------------
Net Gain on Investments 17,662
--------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $17,190
==============
* Not in thousands.
See notes to financial statements.
MARSICO 21ST CENTURY FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended 3/31/05 Ended
(Amounts in thousands) (Unaudited) 9/30/04
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
Net investment loss $(472) $(872)
Net realized gain on investments 2,578 11,654
Net realized gain (loss) on foreign
currency transactions 115 (438)
Change in unrealized appreciation/depreciation
on investments and foreign currency
translations 14,969 9,681
-------------------------------
Net increase in net assets resulting
from operations 17,190 20,025
-------------------------------
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Proceeds from sale of shares 204,252 159,175
Redemption fees 27 18
Redemption of shares (44,928) (67,028)
-------------------------------
Net increase from capital share transactions 159,351 92,165
-------------------------------
TOTAL INCREASE IN NET ASSETS 176,541 112,190
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 216,228 104,038
-------------------------------
END OF PERIOD $392,769 $216,228
===============================
Accumulated net investment loss (955) (483)
- --------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
- --------------------------------------------------------------------------------
Shares sold 17,821 16,143
Shares redeemed (3,931) (6,855)
-------------------------------
NET INCREASE 13,890 9,288
===============================
See notes to financial statements.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Six Months Year Year Year Year Year
For a Fund Share Outstanding Ended 3/31/05 Ended Ended Ended Ended Ended
Throughout the Period. (Unaudited) 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
NET ASSET VALUE, BEGINNING OF PERIOD $10.20 $8.74 $6.54 $6.26 $10.86 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.01) (0.04) (0.04) (0.08) (0.08) (0.07)
Net realized and unrealized gains
(losses) on investments 1.00 1.50 2.23 0.36 (4.52) 0.93
---------------------------------------------------------------------------------
Total from investment operations 0.99 1.46 2.19 0.28 (4.60) 0.86
---------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS & OTHER
- ------------------------------------------------------------------------------------------------------------------------------------
Increase from payment by service provider - - 0.01 - - -
Redemption fees [See Note 2(i)] -(1) -(1) - - - -
---------------------------------------------------------------------------------
Total distributions & other - - 0.01 - - -
---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.19 $10.20 $8.74 $6.54 $6.26 $10.86
---------------------------------------------------------------------------------
TOTAL RETURN 9.71%(2) 16.70% 33.64% 4.47% (42.36)% 8.60%(2)
- ------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA AND RATIOS
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s) $392,769 $216,228 $104,038 $56,021 $60,124 $130,173
Ratio of expenses to average net assets,
less waivers and before expenses paid indirectly,
plus reimbursements of previously waived expenses 1.39%(3) 1.50% 1.55%(5) 1.50% 1.50% 1.50%(3)
Ratio of net investment loss to average net assets,
net of waivers, reimbursements of previously
waived expenses and expenses paid indirectly (0.30)%(3) (0.48)% (1.05)% (0.89)% (0.76)% (0.92)%(3)
Ratio of expenses to average net assets,
before waivers, reimbursements of previously
waived expenses and expenses paid indirectly 1.33%(3) 1.44% 1.65% 1.60% 1.57% 1.70%(3)
Ratio of net investment loss to average net assets,
before waivers, reimbursements of previously
waived expenses and expenses paid indirectly (0.36)%(3) (0.42)% (1.15)% (0.99)% (0.83)% (1.13)%(3)
Portfolio turnover rate(4) 61%(2) 191% 236% 388% 399% 267%(2)
* Inception.
(1) Less than $0.01.
(2) Not annualized for the periods less than one year.
(3) Annualized for the periods less than one year.
(4) Portfolio turnover is greater than most funds due to the investment style
of the Fund.
(5) See Note 3 for information regarding the voluntary fee waiver.
See notes to financial statements.
MARSICO INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
INVESTMENT REVIEW BY JIM GENDELMAN
The Marsico International Opportunities Fund had a (US$) total return of 9.69%
for the six-month period ended March 31, 2005. For comparative purposes, the
Morgan Stanley Capital International EAFE Index, which we consider to be the
Fund's primary benchmark index, had a total (US$) total return of 15.13% for the
same time period. Please see the Fund overview for more detailed information
about the Fund's performance for various periods ended March 31, 2005. The
performance data for the Fund quoted here represent 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.(1)
The Fund's six-month underperformance relative to its benchmark index was
primarily attributable to several factors:
- - CURRENCY: In the context of a generally weakening US dollar over the six
months ended March 31, 2005, the Fund's exposure to dollar-based assets
(e.g., American Depositary Receipts, cash equivalents), and companies whose
"home currency" correlates generally with the value of the dollar, had a
substantial negative performance impact.
- - MEDIA POSITIONS: The Fund's media holdings, collectively, had a positive
return but struggled in comparison to the Fund's benchmark index. During the
reporting period, the Fund's media positions had a collective price return of
7%, while the benchmark index's Media industry group return was 19%. Specific
individual holdings that impacted performance in relation to the benchmark
index included NTL (+3%), Sogecable (-4%), Reuters Group (+6%), and News
Corp., Ltd. (+7%).(2)
- - INFORMATION TECHNOLOGY: Our stock selection in this sector was mixed during
the reporting period. In particular, positions such as LM Ericsson Telephone
(-12%), Trend Micro (-16%), and Research In Motion (-2%) had returns that
materially impacted the Fund's performance. The Fund did have some strong-
performing holdings in this sector, such as Samsung Electronics (+26%) and
Canon (+15%). However, these were not enough to fully offset the impact of
the Fund's less strong holdings.(2)
- - ENERGY: During the reporting period, we increased the Fund's energy-related
holdings rather significantly, based - in part - on our assessment of several
unique opportunities at the individual company level. For the entire
reporting period, the Fund's positions in this sector had an aggregate return
of 9%, compared to the benchmark index's sector return (+17%). The Fund's
position in Total (+17%) was among its better-performing individual holdings.
However, Petroleo Brasileiro (-8%), Golar Lng
(-11% prior to being sold), and Sasol (-1%) had the overall impact of
moderating the Fund's gains in the Energy sector.(2)
The Fund has tended to have a relatively high portfolio turnover level because
of its investment style. Although the Fund may hold core positions for some
time, it may change its portfolio composition quickly to take advantage of new
opportunities, or to address issues affecting particular holdings.
As of March 31, 2005 the Fund's holdings, in terms of economic sector
distribution, were allocated primarily to Financials, Consumer Discretionary,
and Energy. During the reporting period, we reduced the Consumer Discretionary
positions quite substantially, primarily in industry groups such as Media and
Retailing. The Financials weighting rose, and included new investments in
Insurance and Real Estate. The Fund's largest country-level allocations as of
the end of the reporting period were in Japan, the United Kingdom, Switzerland,
France, and Canada.
Sincerely,
/s/ James G. Gendelman
JAMES G. GENDELMAN
PORTFOLIO MANAGER
(1) The performance returns for the International Opportunities Fund (for the
period prior to September 30, 2004) reflect a fee waiver in effect; in the
absence of such a waiver, the returns would have been reduced. For the
period beginning October 1, 2004, performance returns for the International
Opportunities Fund would be higher but for the reimbursement of fees waived
previously. A redemption fee may be imposed on redemptions or exchanges of
Fund shares owned for 30 days or less. See the prospectus for more
information. Foreign investments present additional risks due to currency
fluctuations, economic and political factors, lower liquidity, government
regulations, differences in securities regulations and accounting
standards, possible changes in taxation, limited public information and
other factors.
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.
(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 percentage of the Fund's
portfolio represented by the securities or industries mentioned in this
letter.
MARSICO INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
FUND OVERVIEW MARCH 31, 2005 (UNAUDITED)
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
- --------------------------------------------------------------------------------
Average Annual
One Year Since Inception
(4/1/04-3/31/05) (6/30/00-3/31/05)
Marsico International Opportunities Fund 5.05%(1) 4.04%(1)
Morgan Stanley Capital
International EAFE Index 15.06% -0.36%
- ---------------------------------------- --------------------------------------
NET ASSETS GROWTH OF $10,000(1)(2)
- ---------------------------------------- --------------------------------------
3/31/05 $208,197,321 Morgan
Marsico Stanley
- ---------------------------------------- International Capital
NET ASSET VALUE Opportunities International
- ---------------------------------------- Fund EAFE Index
Net Asset Value Per Share $11.66 6/30/2000 10,000 10,000
9/30/2000 10,360 9,193
- ---------------------------------------- 3/31/2001 8,283 7,720
TOP FIVE HOLDINGS 9/30/2001 7,011 6,570
- ---------------------------------------- 3/31/2002 8,542 7,064
UBS AG 4.88% 9/30/2002 7,248 5,550
Enterprise Inns PLC 3.67 3/31/2003 7,040 5,422
Vinci S.A. 3.47 9/30/2003 9,101 6,993
Sanofi-Aventis 2.97 3/31/2004 11,493 8,542
InterContinental Hotels 9/30/2004 11,006 8,537
Group PLC 2.73 3/31/2005 12,072 9,829
- ----------------------------------------
SECTOR ALLOCATION(3)
- ----------------------------------------
Financial 31.20%
Consumer Cyclical 19.05
Consumer Non-Cyclical 10.74
Energy 10.18
Industrial 10.00
Communications 8.15
Technology 5.17
Basic Materials 4.44
Utilities 1.07
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. A redemption fee may be imposed on
redemptions or exchanges of Fund shares owned for 30 days or less.
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 (for the
period prior to September 30, 2004) reflect a fee waiver in effect; in the
absence of such a waiver, the returns would be reduced. For the period
beginning October 1, 2004, performance returns for the International
Opportunities Fund would be higher but for the reimbursement of fees waived
previously.
(2) This chart assumes an initial investment of $10,000 made on June 30, 2000
(inception). Total returns are based on net change in NAV, assuming
reinvestment of distributions.
(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 MARCH 31, 2005 (UNAUDITED)
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
ADVERTISING SERVICES
JC Decaux S.A.* 118,350 $3,230,966 1.55%
---------------------------------------------
APPLICATIONS SOFTWARE
Trend Micro Inc. 48,000 2,063,602 0.99
---------------------------------------------
AUDIO/VIDEO PRODUCTS
Sony Corporation 22,800 907,918 0.44
Thompson Multimedia 152,195 4,103,642 1.97
---------------------------------------------
5,011,560 2.41
---------------------------------------------
AUTOMOTIVE -
CARS/LIGHT TRUCKS
Renault S.A. 34,272 3,061,008 1.47
---------------------------------------------
BROADCAST
SERVICES/PROGRAMMING
Grupo Televisa S.A. ADR 68,810 4,046,028 1.94
---------------------------------------------
BUILDING - HEAVY CONSTRUCTION
Vinci S.A. 50,124 7,225,306 3.47
---------------------------------------------
CASINO HOTELS
Kerzner International Ltd.* 42,776 2,619,174 1.26
Wynn Resorts Ltd.* 48,367 3,276,381 1.57
---------------------------------------------
5,895,555 2.83
---------------------------------------------
CELLULAR TELECOMMUNICATIONS
America Movil ADR 73,267 3,780,577 1.82
---------------------------------------------
CHEMICALS - SPECIALTY
Lonza Group AG 50,733 3,104,933 1.49
---------------------------------------------
COMMERCIAL BANKS - NON-US
Anglo Irish Bank Corp., PLC 179,709 4,500,727 2.16
Banca Intesa SpA 452,500 2,299,378 1.10
Bayerische Hypo-und
Vereinsbank AG* 91,519 2,238,664 1.08
ForeningsSparbanken AB 132,094 3,119,786 1.50
ICICI Bank Ltd. ADR 118,285 2,450,865 1.18
Mitsubishi Tokyo Financial
Group, Inc. 467 4,050,266 1.94
---------------------------------------------
18,659,686 8.96
---------------------------------------------
COMPUTERS
Research in Motion Ltd.* 40,370 3,085,075 1.48
---------------------------------------------
COSMETICS & TOILETRIES
Natura Cosmeticos S.A. 45,675 1,241,949 0.60
Natura Cosmeticos S.A. 144A 1,500 40,787 0.02
---------------------------------------------
1,282,736 0.62
---------------------------------------------
DIVERSIFIED MINERALS
BHP Billiton PLC 155,453 2,088,684 1.00
---------------------------------------------
DRUG DELIVERY SYSTEMS
Fresenius AG 30,935 3,560,974 1.71
---------------------------------------------
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
ELECTRIC - GENERATION
British Energy Group PLC* 412,277 $2,165,897 1.04%
---------------------------------------------
ELECTRIC PRODUCTS -
MISCELLANEOUS
Samsung Electronics Co., Ltd. 4,090 2,021,841 0.97
---------------------------------------------
ELECTRONIC COMPONENTS -
MISCELLANEOUS
Fanuc Ltd. 40,814 2,553,968 1.23
---------------------------------------------
ELECTRONIC COMPONENTS -
SEMICONDUCTORS
Arm Holdings PLC 1,602,009 3,186,332 1.53
---------------------------------------------
ELECTRONIC MEASURING
INSTRUMENTS
Keyence Corporation 13,600 3,150,462 1.51
---------------------------------------------
FINANCE - CONSUMER LOANS
Promise Co., Ltd. 74,500 5,092,651 2.45
Takefuji Corp. 30,090 2,026,017 0.97
---------------------------------------------
7,118,668 3.42
---------------------------------------------
FINANCE - INVESTMENT
BANKER/BROKER
Macquarie Bank Ltd. 28,111 1,042,737 0.50
---------------------------------------------
HOTELS & MOTELS
InterContinental Hotels
Group PLC 487,110 5,684,182 2.73
Shangri-La Asia Ltd. 2,743,003 3,974,118 1.91
Shangri-La Asia Ltd. 144A 258,000 373,796 0.18
---------------------------------------------
10,032,096 4.82
---------------------------------------------
LIFE/HEALTH INSURANCE
Swiss Life Holding* 31,971 4,806,142 2.31
---------------------------------------------
MEDICAL - DRUGS
Astellas Pharma, Inc.* 119,000 4,028,444 1.93
Sanofi-Aventis 73,290 6,180,132 2.97
Schering AG 31,904 2,115,833 1.02
---------------------------------------------
12,324,409 5.92
---------------------------------------------
MONEY CENTER BANKS
Erste Bank der oesterreichischen
Sparkassen AG 90,988 4,759,194 2.29
UBS AG 120,437 10,170,258 4.88
---------------------------------------------
14,929,452 7.17
---------------------------------------------
MULTI-LINE INSURANCE
Riunione Adriatica di
Sicurta SpA 179,585 4,225,250 2.03
---------------------------------------------
MUSIC
EMI Group PLC 476,842 2,128,876 1.02
---------------------------------------------
OFFICE AUTOMATION & EQUIPMENT
Canon, Inc. 40,000 2,144,922 1.03
---------------------------------------------
* Non-income producing.
See notes to financial statements.
MARSICO INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 2005 (UNAUDITED) (continued)
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
- --------------------------------------------------------------------------------
OIL COMPANIES -
EXPLORATION & PRODUCTION
CNOOC Ltd. ADR 46,079 $2,520,982 1.21%
Talisman Energy, Inc. 126,072 4,313,565 2.07
---------------------------------------------
6,834,547 3.28
---------------------------------------------
OIL COMPANIES - INTEGRATED
BP PLC 200,927 2,082,663 1.00
Petroleo Brasilerio SA 59,455 2,626,722 1.26
Sasol Ltd. 167,131 3,885,971 1.87
Total S.A. 22,235 5,202,596 2.50
---------------------------------------------
13,797,952 6.63
---------------------------------------------
PETROCHEMICALS
Reliance Industries, Ltd. 148,509 3,804,801 1.83
---------------------------------------------
PROPERTY/CASUALTY INSURANCE
Millea Holdings, Inc. 163 2,371,350 1.14
---------------------------------------------
REAL ESTATE
OPERATING/DEVELOPMENT
Capitaland Ltd. 2,942,000 4,188,217 2.01
Hang Lung Properties Ltd. 1,371,518 1,995,875 0.96
Sumitomo Realty &
Development Co., Ltd. 325,000 3,921,943 1.89
---------------------------------------------
10,106,035 4.86
---------------------------------------------
RETAIL - CONSUMER ELECTRONICS
Yamada Denki Company, Ltd. 92,600 4,853,231 2.33
---------------------------------------------
RETAIL - DRUG STORES
Shoppers Drug
Mart Corporation* 62,476 2,084,427 1.00
---------------------------------------------
RETAIL - PUBS
Enterprise Inns PLC 524,221 7,637,879 3.67
---------------------------------------------
SOAP & CLEANING PREPARATIONS
Reckitt Benckiser PLC 79,334 2,521,676 1.21
---------------------------------------------
TELECOM EQUIPMENT
Ericsson (LM) Tel-SP ADR 75,002 2,115,056 1.02
---------------------------------------------
TELECOM SERVICES
Cesky Telecom AS 144A 70,166 1,315,613 0.63
---------------------------------------------
TELEPHONE - INTEGRATED
NTL, Inc.* 32,164 2,047,882 0.98
---------------------------------------------
TRANSPORT - RAIL
Canadian National
Railway Co. 83,988 5,317,280 2.56
---------------------------------------------
TOTAL COMMON STOCKS
(COST $188,802,041) 202,735,471 97.38
---------------------------------------------
Number Market Percent
of Value of Net
Shares in Dollars Assets
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
- --------------------------------------------------------------------------------
SSgA Money Market Funds 6,467,061 $6,467,061 3.10%
---------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(COST $6,467,061) 6,467,061 3.10
---------------------------------------------
TOTAL INVESTMENTS
(COST $195,269,102) 209,202,532 100.48
Liabilities Less Cash
and Other Assets (1,005,211) (0.48)
---------------------------------------------
NET ASSETS $208,197,321 100.00%
=============================================
- --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY COUNTRY
- --------------------------------------------------------------------------------
Percent
of
Market Investment
Country Value Securities
- --------------------------------------------------------------------------------
Australia $1,042,737 0.5%
Austria 4,759,194 2.3
Brazil 3,909,458 1.9
Canada 14,800,347 7.1
France 29,003,650 13.9
Germany 7,915,471 3.8
Hong Kong 8,864,771 4.2
India 6,255,666 3.0
Italy 6,524,628 3.1
Japan 37,164,774 17.8
Mexico 7,826,605 3.7
Scotland 4,500,727 2.1
Singapore 4,188,217 2.0
South Africa 3,885,971 1.8
South Korea 2,021,841 1.0
Sweden 5,234,842 2.5
Switzerland 18,081,333 8.6
United Kingdom 28,811,802 13.8
United States(1) 14,410,498 6.9
--------------------------------------------------
TOTAL $209,202,532 100.0%
--------------------------------------------------
* Non-income producing.
(1) Includes short-term securities.
See notes to financial statements.
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2005 (UNAUDITED)
(Amounts in thousands)
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $195,269) $209,203
Foreign currency (cost $85) 85
Receivable for investments sold 1,556
Receivable for capital stock sold 480
Interest and dividends receivable 408
Prepaid expenses and other assets 152
Unrealized gain on foreign exchange contracts 9
--------------
TOTAL ASSETS 211,893
--------------
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 2,689
Payable for capital stock redeemed 184
Payable to custodian 385
Accrued investment advisory fee 178
Accrued distribution fee 87
Accrued trustees' fees 104
Accrued expenses and other liabilities 69
--------------
TOTAL LIABILITIES 3,696
--------------
NET ASSETS $208,197
==============
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------
Paid-in-capital $195,580
Accumulated net investment loss (196)
Accumulated net realized loss on investments
and foreign currency transactions (1,140)
Net unrealized appreciation on investments
and foreign currency translations 13,953
--------------
NET ASSETS $208,197
==============
SHARES OUTSTANDING, $0.001 PAR VALUE
(UNLIMITED SHARES AUTHORIZED) 17,854
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE
(NET ASSETS/SHARES OUTSTANDING)* $11.66
==============
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005
(UNAUDITED)
(Amounts in thousands)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $103
Dividends (net of $59 of non-reclaimable
foreign withholding taxes) 1,153
--------------
TOTAL INVESTMENT INCOME 1,256
--------------
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 635
Distribution fees 187
Custody and fund accounting fees 82
Transfer agent fees and expenses 69
Fund administration fees 60
Federal and state registration fees 14
Trustees' fees and expenses 12
Printing and postage expenses 12
Professional fees 8
Miscellaneous 3
--------------
TOTAL EXPENSES 1,082
Recovery of previously waived expenses 112
--------------
NET EXPENSES 1,194
--------------
NET INVESTMENT INCOME 62
--------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 2,721
Net realized gain on foreign
currency transactions 3,364
Change in unrealized appreciation/
depreciation on investments and foreign
currency translations 3,599
--------------
Net Gain on Investments 9,684
--------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $9,746
==============
* Not in thousands.
See notes to financial statements.
MARSICO INTERNATIONAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended 3/31/05 Ended
(Amounts in thousands) (Unaudited) 9/30/04
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
Net investment income $62 $51
Net realized gain (loss) on investments 2,721 (513)
Net realized gain on foreign
currency transactions 3,364 334
Change in unrealized appreciation/depreciation
on investments and foreign currency
translations 3,599 5,295
-------------------------------
Net increase in net assets resulting
from operations 9,746 5,167
-------------------------------
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Proceeds from sale of shares 106,723 90,174
Redemption fees 5 24
Redemption of shares (14,439) (17,612)
-------------------------------
Net increase from capital share transactions 92,289 72,586
-------------------------------
TOTAL INCREASE IN NET ASSETS 102,035 77,753
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 106,162 28,409
-------------------------------
END OF PERIOD $208,197 $106,162
===============================
Accumulated net investment loss (196) (258)
- --------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
- --------------------------------------------------------------------------------
Shares sold 9,108 8,443
Shares redeemed (1,239) (1,686)
-------------------------------
NET INCREASE 7,869 6,757
===============================
See notes to financial statements.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Six Months Year Year Year Year Year
For a Fund Share Outstanding Ended 3/31/05 Ended Ended Ended Ended Ended
Throughout the Period. (Unaudited) 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
NET ASSET VALUE, BEGINNING OF PERIOD $10.63 $8.80 $7.00 $6.78 $10.36 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) -(1) 0.01 0.02 (0.02) - 0.01
Net realized and unrealized gains
(losses) on investments 1.03 1.82 1.78 0.19 (3.27) 0.35
-----------------------------------------------------------------------------------
Total from investment operations 1.03 1.83 1.80 0.17 (3.27) 0.36
-----------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS & OTHER
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income - - - (0.01) (0.04) -
Net realized gains - - - - (0.27) -
Redemption fees [See Note 2(i)] -(1) -(1) -(1) 0.05 - -
Payment by affiliate - - - 0.01 - -
-----------------------------------------------------------------------------------
Total distributions & other - - - 0.05 (0.31) -
-----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.66 $10.63 $8.80 $7.00 $6.78 $10.36
-----------------------------------------------------------------------------------
TOTAL RETURN 9.69%(2) 20.80% 25.71% 3.37% (32.32)% 3.60%(2)
- ------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA AND RATIOS
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s) $208,197 $106,162 $28,409 $20,632 $17,609 $15,480
Ratio of expenses to average net assets,
less waivers and before expenses paid indirectly,
plus reimbursements of previously waived expenses 1.60%(3) 1.60% 1.68%(5) 1.60% 1.60% 1.60%(3)
Ratio of net investment income (loss) to average net
assets, net of waiver, reimbursements of previously
waived expenses and expenses paid indirectly 0.08%(3) 0.07% 0.18% (0.25)% 0.05% 0.33%(3)
Ratio of expenses to average net assets,
before waivers, reimbursements of previously
waived expenses and expenses paid indirectly 1.45%(3) 1.68% 2.31% 2.07% 2.60% 4.76%(3)
Ratio of net investment loss to average net assets,
before waivers, reimbursements of previously
waived expenses and expenses paid indirectly 0.23%(3) (0.00)% (0.45)% (0.73)% (0.94)% (2.83)%(3)
Portfolio turnover rate(4) 99%(2) 105% 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.
MARSICO FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2005 (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 6% of the 21st Century Fund and 10% 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.
(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 Funds' Board of
Trustees. The Funds may use pricing services to determine market
value. The Board of Trustees has authorized the use of a pricing
service to assist the Funds in valuing certain equity securities
listed or traded on foreign security exchanges in the Funds'
portfolios in certain circumstances where there is a significant
change in the value of related U.S.-traded securities, as represented
by the S&P 500/R Index.
(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 $641,453 and
$153,955 for the Focus Fund and Growth Fund, respectively, for the six
months ended March 31, 2005. Also, the Funds received credits on
certain custody account balances which reduced certain transfer agent
fees and expenses in the amount of $5,174, $2,602, $517 and $247 for
the Focus Fund, Growth Fund, 21st Century Fund and International
Opportunities Fund, respectively, for the six months ended March 31,
2005. 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. Certain
Funds may utilize earnings and profits on redemption of shares as part
of the dividends paid deduction.
(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, deferred trustees compensation, 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 4:00 p.m. ET.
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.
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.
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
MARSICO FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2005 (UNAUDITED) (continued)
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. Transactions in call options written for the six
months ended March 31, 2005 were as follows:
Number of
FOCUS FUND Contracts Premiums
- --------------------------------------------------------------------------------
Options outstanding
at 9/30/04 - -
Options written 7,753 $1,545,094
Options closed (257) (54,925)
Options exercised (3,768) (782,825)
Options expired (3,728) (707,344)
-------------------------------------------------
Options outstanding
at 3/31/05 - $-
=================================================
Number of
GROWTH FUND Contracts Premiums
- --------------------------------------------------------------------------------
Options outstanding
at 9/30/04 - -
Options written 252 $42,166
Options closed - -
Options exercised (252) (42,166)
Options expired - -
-------------------------------------------------
Options outstanding
at 3/31/05 - $-
=================================================
(h) Trustees' Compensation-Effective February 1, 2000, the Board of
Trustees adopted the Marsico Investment Fund Deferred Fee Plan (the
"Deferred Fee 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 Deferred Fee Plan. Included in the
Trustees' Fees and Expenses on the Statement of Operations is the
unrealized appreciation of $10,090, $16,362, $8,787 and $4,050 related
to the mark-to-market of the shares of the Deferred Fee 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 six months ended March 31, 2005, the Focus Fund, Growth Fund, 21st
Century Fund and International Opportunities Fund received $18,513,
$28,692, $27,289 and $5,429, respectively, 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 Financial Highlights as an Increase From Payment By Service
Provider.
(k) Indemnifications-In the normal course of business, the Funds enter
into contracts that contain provisions indemnifying other parties
against specified potential liabilities. Each Fund's maximum exposure
under these arrangements is unknown as this would involve future
claims that may be made against the Fund that have not yet occurred.
However, based on experience, the Funds expect the risk of loss to be
remote.
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. Effective November 11, 2004, the Adviser
reduced its investment advisory fee ("management fee") for managing the
Focus Fund and Growth Fund for assets that exceed certain thresholds. The
current management fee schedule for these two Funds is 0.85% per year of
average daily net assets up to $3 billion in each Fund, and 0.75% per year
of average daily net assets exceeding $3 billion in each Fund. 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, 2005. 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 related to the mark-to-market of
the shares of the Deferred Fee Plan. 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 Deferred Fee Plan. For periods subsequent to
September 30, 2003, unrealized appreciation/depreciation of Fund shares in
the 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, 2005, the Adviser recovered previously
waived fees of $98,548 and $111,946, respectively, in the 21st Century Fund
and International Opportunities Fund.
As of March 31, 2005, the reimbursement that may potentially be made by the
International Opportunities Fund to the Adviser is $192,624, which expires
in 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, 2005, none of the Funds
paid brokerage commissions to Banc of America Securities.
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, 2005, were as
follows:
(Amounts in thousands) Purchases Sales
---------------------------------------------------------------------------
Focus Fund $1,894,952 $1,706,912
Growth Fund 853,295 589,795
21st Century Fund 318,049 180,086
International Opportunities Fund 235,382 140,356
There were no purchases or sales of U.S. government securities.
MARSICO FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2005 (UNAUDITED) (continued)
6. FEDERAL INCOME TAX INFORMATION
At March 31, 2005, 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 $2,712,791 $1,436,564 $358,863 $197,014
--------------------------------------------------
Gross unrealized appreciation 699,317 346,365 43,548 16,795
Gross unrealized depreciation (26,365) (7,912) (4,463) (4,606)
--------------------------------------------------
Net unrealized appreciation
on investments $672,952 $338,453 $39,085 $12,189
- --------------------------------------------------------------------------------
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.
The Focus, Growth, 21st Century and International Opportunities Funds had
realized currency losses (in thousands) from transactions between November 1,
2003 and September 30, 2004 of $1,068, $9, $401 and $173, respectively. Post-
October currency losses and capital losses are treated as arising in the Funds'
next fiscal year.
At September 30, 2004, the Focus, Growth, 21st Century and International
Opportunities Funds had accumulated capital loss carryforwards (in thousands) of
$293,243, $133,048, $50,674 and $5,843, with $0, $0, $22,151 and $0 expiring in
2009, $205,773, $54,455, $28,523 and $5,765 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 Focus, Growth, 21st Century and International Opportunities Funds utilized
$36,536, $72, $12,404 and $840, respectively, of its capital loss carryforwards
during the year ended September 30, 2004.
- --------------------------------------------------------------------------------
As of September 30, 2004, 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) $(1,603) $(297) $(463) $(239)
Undistributed long-term
capital gains - - - -
--------------------------------------------------
Tax accumulated
earnings (deficit) (1,603) (297) (463) (239)
--------------------------------------------------
Accumulated capital and
other losses (293,243) (133,047) (50,674) (5,843)
Unrealized appreciation
on investments 541,684 262,781 23,927 8,954
TOTAL ACCUMULATED
EARNINGS (DEFICIT) $246,838 $129,437 $(27,210) $2,872
--------------------------------------------------
Undistributed ordinary income (deficit) consists primarily of post-October
currency losses and deferred Trustees' compensation.
EXPENSE EXAMPLE FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
As a shareholder of the Marsico Funds (the "Funds"), you incur two types of
costs: (1) transaction costs, including redemption fees on certain redemptions;
and (2) ongoing costs, including management fees; distribution (12b-1) fees, and
other Fund expenses. This Example is intended to help you understand your
ongoing costs (in dollars) of investing in the Funds and to compare these costs
with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from October 1, 2004 to March 31, 2005
(the "period").
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 equals 8.6), then multiply the result by the number in the
first line under the heading entitled "Expenses Paid During the Period" to
estimate the expenses you paid on your account during the period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Funds' actual expense
ratios and an assumed rate of return of 5% per year before expenses, which is
not the actual return of any of the Funds. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Funds and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as
redemption fees. Therefore, the second line of the table is useful in comparing
the ongoing costs only, and will not help you determine the relative total costs
of owning different funds. In addition, if these transactional costs were
included, your costs could have been higher.
- --------------------------------------------------------------------------------
EXPENSES PAID DURING THE PERIOD
FOCUS FUND
------------------------------------------------------
Beginning Ending Expenses paid during
account value account value the period ended
October 1, 2004 March 31, 2005 March 31, 2005(1)
------------------------------------------------------
Actual Example $1,000.00 $1,072.20 $6.36
Hypothetical Example,
assuming a 5% return
before expenses $1,000.00 $1,018.86 $6.20
GROWTH FUND
------------------------------------------------------
Beginning Ending Expenses paid during
account value account value the period ended
October 1, 2004 March 31, 2005 March 31, 2005(1)
------------------------------------------------------
Actual Example $1,000.00 $1,059.60 $6.40
Hypothetical Example,
assuming a 5% return
before expenses $1,000.00 $1,018.78 $6.28
MARSICO FUNDS
EXPENSES PAID DURING THE PERIOD (continued)
21ST CENTURY FUND
------------------------------------------------------
Beginning Ending Expenses paid during
account value account value the period ended
October 1, 2004 March 31, 2005 March 31, 2005(1)
------------------------------------------------------
Actual Example $1,000.00 $1,097.10 $7.28
Hypothetical Example,
assuming a 5% return
before expenses $1,000.00 $1,018.06 $7.00
INTERNATIONAL OPPORTUNITIES FUND
------------------------------------------------------
Beginning Ending Expenses paid during
account value account value the period ended
October 1, 2004 March 31, 2005 March 31, 2005(1)
------------------------------------------------------
Actual Example $1,000.00 $1,096.90 $8.36
Hypothetical Example,
assuming a 5% return
before expenses $1,000.00 $1,017.02 $8.05
(1)Expenses are equal to the Funds' annualized expense ratios (1.23% for
the Focus Fund, 1.25% for the Growth Fund, 1.39% for the 21st Century Fund
and 1.60% for the International Opportunities Fund), multiplied by the
average account value over the period, multiplied by 182/365 (to reflect
the six month period).
- --------------------------------------------------------------------------------
ANNUAL RENEWAL OF INVESTMENT
ADVISORY AGREEMENTS
At a meeting of the Board of Trustees of the Trust that commenced on November
10, 2004 and concluded on November 11, 2004, the Trustees, by a unanimous vote
(including a separate vote of those Trustees who are not "interested persons"
(as the term is defined in the 1940 Act) (the "Independent Trustees"), approved
the renewal of the Funds' Investment Advisory Agreements (the "Agreements"). In
advance of the meeting, the Independent Trustees requested and received
extensive materials from the Adviser to assist them in considering the renewal
of the Agreements. The materials provided by the Adviser contained information
with respect to the factors noted below, including detailed comparative
information relating to the performance, advisory fees and other expenses of the
Funds, other funds sub-advised by the Adviser and non-fund advisory accounts of
the Adviser. The materials also included comparisons of the Funds with other
funds and non-fund accounts of similar size and investment objectives in terms
of performance, fees and other expenses, as well as the performance of each Fund
versus its benchmark. In addition, the Adviser provided information regarding
its overall expenses and profitability, as well as estimates of its costs and
profitability relating to managing the Funds.
In addition to the materials prepared specifically for contract review analysis,
on an ongoing basis the Trustees receive information and reports from the
Adviser and other service providers to the Funds on investment performance as
well as operational, compliance and other matters.
The Trustees engaged in a detailed discussion of the materials with management
of the Adviser. The Independent Trustees then met separately with independent
counsel to the Independent Trustees for a full review of the materials.
Following this session, the full Board reconvened and approved the continuation
of the Agreements.
DISCUSSION OF FACTORS CONSIDERED
In connection with the re-approval of the Agreements, the Trustees, including
the Independent Trustees, requested and received from the Adviser, and reviewed,
a wide variety of information, including information about (1) the nature,
extent, and quality of the services provided by the Adviser; (2) the investment
performance of the Funds and the Adviser; (3) the costs of the services to be
provided and profits realized by the Adviser and its affiliates from the
relationship with the Funds; (4) the extent to which economies of scale may be
realized as the Funds grow; and (5) whether fee levels reflect these economies
of scale for the benefit of Fund investors; as well as other relevant
considerations such as the management fees and expense ratios of each Fund;
potential fall-out benefits to the Adviser from its relationship to each Fund;
and other general information about the Adviser. The following is a summary of
the Board's discussion and views regarding these factors:
1. NATURE, EXTENT, AND QUALITY OF SERVICES.
The Trustees considered the nature, quality and extent of administrative
and shareholder services performed by the Adviser, including portfolio
management, supervision of Fund operations and compliance and regulatory
filings and disclosures to shareholders, general oversight of other service
providers, coordination of Fund marketing initiatives, review of Fund legal
issues, assisting the Trustees in that capacity and other services. The
Trustees concluded that the services are extensive in nature and that the
Adviser consistently delivered a high level of service.
2. INVESTMENT PERFORMANCE OF THE FUNDS AND ADVISER.
The Trustees considered short-term and long-term investment performance for
each Fund over various periods of time as compared to both relevant equity
indices and the performance of such Fund's Lipper, Inc. peer group
universe, and concluded that the Adviser was delivering superior
performance results consistent with the long-term investment strategies
being pursued by the Funds. The Trustees also noted that the strong
investment performance delivered by the Adviser to the Funds appeared to be
consistent with the performance delivered for other clients of the Adviser.
3. COSTS OF SERVICES AND PROFITS REALIZED BY THE ADVISER.
(a) Costs of Services to Funds: Fees and Expenses. The Trustees
considered each Fund's management fee rates and expense ratios
relative to industry averages for such Fund's benchmark category and
the advisory fees charged by the Adviser to other sub-advised funds
and non-fund clients, including information regarding expense
limitation commitments from the Adviser, and the actual and proposed
breakpoints for the Fund's advisory services. The Trustees noted that
the mix of services under the Agreements are much more extensive than
those under the Adviser's advisory agreements for sub-advised funds as
well as non-fund clients. While the Trustees noted that the investment
advisory fees paid by the Funds are generally in the upper quartile of
their peer groups, they concluded that those fees are acceptable based
upon the qualifications, experience, reputation, and performance of
the Adviser and the low-to-moderate overall expense ratios of the
Funds.
(b) Profitability and Costs of Services to Adviser. The Trustees
considered the Adviser's overall profitability and costs and a pro
forma estimate of the Adviser's profitability and costs if the Funds
constituted the Adviser's only assets under management. The Trustees
also considered whether the amount of profit is a fair entrepreneurial
profit for the management of each Fund, and noted that the Adviser has
substantially increased its resources devoted to Fund matters in
response to recently-enacted regulatory requirements and new or
enhanced Fund policies and procedures. The Trustees concluded that the
Adviser's profitability was at an acceptable level, particularly in
light of the high quality of the services being provided to the Funds.
4. EXTENT OF ECONOMIES OF SCALE AS FUNDS GROW.
The Trustees considered whether there have been economies of scale with
respect to the management of each Fund and whether such Fund has
appropriately benefited from any economies of scale. Economies of scale may
develop for certain Funds as their assets increase and their Fund-level
expenses decline as a percentage of assets. Fund-level economies of scale
may not necessarily result in Adviser-level economies of scale, however.
The Adviser explained that the expenses incurred by the Adviser relating to
management of the Funds have increased substantially in recent years as a
percentage of management fees, rather than declining as might be
anticipated as the assets of certain Funds increase. The Adviser and the
Independent Trustees agreed that it was possible that Adviser-level
expenses incurred in managing the Funds eventually may level off or decline
as a percentage of management fees, especially if the assets of certain
Funds continue to grow beyond certain thresholds.
5. WHETHER FEE LEVELS REFLECT ECONOMIES OF SCALE.
The Trustees also considered whether the management fee rate is reasonable
in relation to the asset size of each Fund and any economies of scale that
may exist. In response to a previous suggestion by the Independent Trustees
that the Adviser consider whether breakpoints might be appropriate
- --------------------------------------------------------------------------------
MARSICO FUNDS
at some level, the Adviser proposed that, effective November 11, 2004,
breakpoints be introduced for the two larger Funds, the Focus Fund and the
Growth Fund, for assets that grow beyond $3 billion in each Fund. Under the
proposed breakpoints, investment management fees will be 0.85% per year of
average daily net assets up to $3 billion in each of those two Funds, and
0.75% per year of average daily net assets exceeding $3 billion in each
Fund. The Independent Trustees noted that the Adviser had responded
positively to their recommendation that the investment management fees for
certain Funds be reconsidered, and approved the proposed new fee schedule.
6. OTHER RELEVANT CONSIDERATIONS.
(a) Adviser Personnel and Methods. The Trustees considered the size,
education and experience of the Adviser's staff, the Adviser's
fundamental research capabilities and the Adviser's approach to
recruiting, training and retaining portfolio managers and other
research and management personnel, and concluded that in each of these
areas the Adviser was structured in such a way to support the high
level of services being provided to the Funds.
(b) Other Benefits to the Adviser. The Trustees also considered the
character and amount of other incidental benefits received by the
Adviser and its affiliates from its association with the Funds. The
Trustees concluded that potential "fall-out" benefits that the Adviser
may receive, such as greater name recognition or increased ability to
obtain research or brokerage services, appear to be reasonable, and
may in some cases benefit the Funds.
CONCLUSIONS
All of these factors were considered by the Trustees at large, and also were
considered by the Independent Trustees meeting separately with independent legal
counsel. In considering the Agreements, the Trustees did not identify any factor
as all-important or all-controlling and instead considered these factors
collectively in light of each Fund's surrounding circumstances. Based on this
review, it was the judgment of the Trustees and the Independent Trustees that
shareholders had received very favorable absolute and relative performance at
reasonable fees and, therefore, re-approval of the Agreements was in the best
interests of each Fund and its shareholders. As a part of its decision-making
process, the Trustees noted that the Adviser has managed the Funds since their
inception, and the Trustees believe that a long-term relationship with a
capable, conscientious adviser is in the best interests of the Funds. The
Trustees considered, generally, that shareholders invested in a Fund knowing
that the Adviser managed that Fund and knowing its investment management fee
schedule. As such, the Trustees considered, in particular, whether the Adviser
managed each Fund in accordance with its investment objectives and policies as
disclosed to shareholders. The Trustees concluded that each Fund was managed by
the Adviser consistent with its investment objectives and policies.
OTHER INFORMATION
PROXY VOTING GUIDELINES
The Funds exercise the voting rights associated with the securities held by the
Funds under the proxy voting policy of the Funds. A description of those
policies and procedures of the Fund and a record of the Funds' proxy votes for
the year ended June 30, 2004 are 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.
QUARTERLY FILING OF PORTFOLIO HOLDINGS
The Funds will file their complete schedule of investments with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Funds' Form N-Q
will be available (i) on the SEC's website at www.sec.gov; (ii) at the SEC's
Public Reference Room and (iii) by calling 800-SEC-0330.
[MARSICO FUNDS LOGO]
Helping you appreciate life/tm
The Marsico Investment Fund
UMB Distribution Services, LLC, Distributor
P.O. Box 3210, Milwaukee, WI 53201-3210
www.marsicofunds.com o 888.860.8686
C/2005 MARSICO CAPITAL MANAGEMENT, LLC
Not authorized for distribution unless preceded or
accompanied by an effective Marsico Funds prospectus.
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
The schedule of investments in securities of unaffiliated issuers is
included as part of the report to shareholders filed under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. 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 control over
financial reporting (as defined in Rule 30a-3(d) under the Investment Company
Act of 1940, as amended) that occurred during the most recent fiscal half-year
covered by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. 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(a) under the Act (17 CFR
270.30a-2(a)) (Exhibits (a) and (b)).
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the Investment Company Act of 1940, as amended, that was sent or given during
the period covered by the report by or on behalf of the registrant to 10 or more
persons.
Not applicable.
(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
(Exhibits (c) and (d)).
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, 2005
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, 2005
By: /s/ Christopher J. Marsico
--------------------------
Christopher J. Marsico
Vice President and Treasurer
Date: June 2, 2005