<PAGE>
<PAGE>
The Marsico Investment Fund March 31, 1999
- ------------------------------------------------
Semi-Annual Report
[PHOTOS]
- ------------------------------------------------
NO ONE GETS CLOSER TO LARGE CAPS
THAN MARSICO.
[LOGO]
MARSICO FUNDS(R)
We do the work.(SM)
<PAGE>
<PAGE>
TABLE OF CONTENTS:
- ------------------------------------------------
Letter to the Shareholders 1
Schedule of Investments 4
Statements of Assets and Liabilities 12
Statements of Operations 13
Statements of Changes in Net Assets 14
Financial Highlights 16
Notes to Financial Statements 18
This report is submitted for the general Information of Marsico Funds
shareholders. It is not authorized for distribution unless preceded
or accompanied by an effective prospectus, which contains more complete
information about the Funds.
<PAGE>
<PAGE>
April 1999
DEAR MARSICO FUNDS SHAREHOLDER:
We are pleased to present the Semiannual Report of the Marsico Funds for
the six-month period ended March 31, 1999. The Funds, which passed
their one-year anniversary in December, continued to post solid
investment results. Both Marsico Focus Fund and Marsico Growth & Income
Fund outperformed the S&P 500(R) Index, which we consider to be the
Funds' primary "market" benchmark, during the first calendar quarter of
1999 and for the six months ended March 31, 1999. In addition, the
Funds have outperformed the S&P 500(R) Index for the period from their
inception through March 31, 1999, as reflected below:
<TABLE>
<CAPTION>
Total Returns Focus Growth & S&P 500(R)
as of 3/31/99<F1> Fund Income Fund Index<F2>
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Three Months Ended 12.56% 9.55% 4.98%
Six Months Ended 37.78% 36.14% 27.34%
Since Inception (12/31/97) 70.30% 57.10% 34.98%
One Year 38.34% 31.35% 18.46%
Average Annual
Since Inception 53.28% 43.67% 27.21%
</TABLE>
INVESTMENT REVIEW
At the time of our first Annual Report on September 30, 1998, the market
had just come through a difficult period for equity investments. A
number of events - Russian debt default, the emergency bailout of Long
Term Capital Management, fears of a possible global credit crunch and
Presidential impeachment proceedings - caused significant volatility in
the markets. However, due in part to strong leadership by the Federal
Reserve (which cut interest rates in September and October), which in
turn spurred a variety of interest rate reductions in overseas markets,
equities staged a powerful recovery in the fourth quarter 1998. The S&P
500(R) Index rose 21.30% during the fourth quarter, fueled by strong
gains in the technology and financial services sectors. Both Marsico
Focus Fund and Marsico Growth & Income Fund participated in the stock
market rally with the Focus Fund posting a return of 22.41% and the
Growth & Income Fund gaining 24.26% for the quarter ended December 31,
1998.
1
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<PAGE>
Capital market returns were mixed during the first quarter 1999. Large
capitalization companies (the investment universe which the Funds
emphasize) once again had strong performance, with the S&P 500(R) Index
advancing 4.98%. However, smaller capitalization companies - as measured
by the Russell 2000 Index - fell by more than 5.43% and the broad U.S.
fixed income market - as measured by the Lehman Brothers Aggregate Bond
Index - experienced its first quarterly loss in two years. Continued
strong economic growth and solemn words from Federal Reserve Bank
Chairman Alan Greenspan during his Humphrey Hawkins testimony seemed to
indicate that the Fed might potentially move toward tightening monetary
policy by raising interest rates. However, as of the end of March, the
Fed had decided to leave rates unchanged. In evaluating the investment
results of the Funds for the six months ended March 31, 1999, the
primary "drivers" were allocations to technology, consumer and financial
services companies. A variety of individual holdings contributed to
performance. In technology, EMC Corporation and Microsoft posted strong
returns. In the consumer-related arena, positions such as McDonald's
and Anheuser Busch Cos. were two of the better-performing stocks.
Citigroup, one of the largest positions in each Fund, represented the
biggest gain in the financial services sector. Diversification across
various industries also helped results, as the Funds' portfolios were
buoyed by positions in the airline and cable/media sectors.
INVESTMENT OUTLOOK
As we write, the stock market is experiencing substantial volatility.
Although the market changes have been rapid and widespread and the
potential for escalated conflict in Kosovo remains, we continue to have
a positive long-term "macro" investment outlook for U.S. equities.
There are a variety of factors contributing to this view. We believe
inflation for all intents and purposes is near zero, and we do not
believe there are any visible signs that inflation may rise near-term.
In a related vein, we believe that interest rates should stabilize and
may in fact decline during the next several years. In our opinion,
technology is spurring major productivity enhancements. The consumer is
strong. Unemployment is low. The Federal government has budget
surpluses for the first time in years and is projecting higher surpluses
in the future. We continue to have confidence in the Federal Reserve,
and have been pleased by central banks' policies
2
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<PAGE>
(including coordinated interest rate cuts) in overseas markets. While
we are mindful that U.S. equities may appear fully valued based on
extrapolation of historical data measures, we believe the overall
investing backdrop remains attractive. As always, we continue to seek
investment opportunities in large capitalization companies that we
believe have a strong brand franchise, global reach, strong fundamentals
and are experiencing positive change.
We thank you for your investment in the Marsico Funds and appreciate
being part of your long-term investment strategy. You have our promise
that we will continue to do the work...for you.
Sincerely,
/s/ Thomas F. Marsico
Thomas F. Marsico
Chairman and Chief Executive Officer
[FN]
<F1> Total returns are based on net change in NAV assuming reinvestment
of distributions. Share price and investment return will vary so
that, when redeemed, an investor's shares may be worth more or
less than their original cost. Past performance is no guarantee
of future results. Because it is not diversified, the Focus Fund
may take larger positions in fewer companies, thereby
concentrating its holdings in what the manager believes to be the
best investment ideas. Such concentration also increases the
overall risk profile of the Fund.
<F2> The S&P 500(R) Index is a registered trademark of Standard &
Poor's Corporation and is an unmanaged broadly based index of the
common stock prices of 500 large U.S. companies. You cannot invest
directly in an index.
3
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<TABLE>
MARSICO FOCUS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1999
(Unaudited)
<CAPTION>
Number Market Value Percent of
of Shares in Dollars Net Assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
Airlines
Delta Air Lines, Inc. 1,053,544 $ 73,221,308 3.87%
Southwest Airlines 1,358,558 41,096,379 2.17
UAL Corporation<F*> 947,182 73,643,401 3.89
- ----------------------------------------------------------------------------------------
187,961,088 9.93
- ----------------------------------------------------------------------------------------
Automotive -
Cars/Light Trucks
Ford Motor Company 882,362 50,074,044 2.65
General Motors Corporation 1,332,257 115,739,827 6.11
- ----------------------------------------------------------------------------------------
165,813,871 8.76
- ----------------------------------------------------------------------------------------
Beverages - Non-Alcoholic
Coca-Cola Enterprises Inc. 1,639,009 49,580,022 2.62
Pepsi Bottling Group, Inc.<F*> 1,080,194 23,426,707 1.24
- ----------------------------------------------------------------------------------------
73,006,729 3.86
- ----------------------------------------------------------------------------------------
Brewery
Anheuser-Busch
Companies, Inc. 1,038,359 79,109,976 4.18
- ----------------------------------------------------------------------------------------
Cable Television
MediaOne Group, Inc.<F*> 815,070 51,756,945 2.73
- ----------------------------------------------------------------------------------------
Chemicals - Diversified
Monsanto Company 1,107,195 50,861,770 2.69
- ----------------------------------------------------------------------------------------
Computer Software
Microsoft Corporation<F*> 747,924 67,032,688 3.54
- ----------------------------------------------------------------------------------------
Computers -
Memory Devices
EMC Corporation<F*> 1,172,745 149,818,174 7.91
- ----------------------------------------------------------------------------------------
Computers - Micro
Sun Microsystems Inc.<F*> 511,495 63,904,907 3.38
- ----------------------------------------------------------------------------------------
4
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<PAGE>
<CAPTION>
MARSICO FOCUS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
(Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cosmetics & Toiletries
Gillette Company 1,010,843 $ 60,081,981 3.17%
- ----------------------------------------------------------------------------------------
Diversified Financial Services
Associates First Capital Corp. 1,124,865 50,618,925 2.67
Citigroup, Inc. 1,602,087 102,333,307 5.41
- ----------------------------------------------------------------------------------------
152,952,232 8.08
- ----------------------------------------------------------------------------------------
Diversified Manufacturing
Operations
General Electric Company 587,371 64,977,917 3.43
- ----------------------------------------------------------------------------------------
Finance - Mortgage
Loan/Banker
Fannie Mae 508,214 35,193,819 1.86
- ----------------------------------------------------------------------------------------
Internet Content
Inktomi Corporation<F*> 417,823 35,828,322 1.89
- ----------------------------------------------------------------------------------------
Medical - Drugs
Merck & Co. Inc. 584,740 46,888,839 2.48
Pfizer Inc. 406,964 56,466,255 2.98
- ----------------------------------------------------------------------------------------
103,355,094 5.46
- ----------------------------------------------------------------------------------------
Money Center Banks
Chase Manhattan Corp. 869,738 70,720,571 3.74
- ----------------------------------------------------------------------------------------
Multimedia
Time Warner Inc. 976,864 69,418,398 3.67
- ----------------------------------------------------------------------------------------
Networking Products
Cisco Systems, Inc.<F*> 367,636 40,279,119 2.13
- ----------------------------------------------------------------------------------------
Oil Companies - Integrated
Royal Dutch Petroleum
Company 690,361 35,898,772 1.90
- ----------------------------------------------------------------------------------------
5
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<CAPTION>
MARSICO FOCUS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
(Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Retail - Building Products
The Home Depot, Inc. 774,769 $ 48,229,370 2.55%
- ----------------------------------------------------------------------------------------
Retail - Restaurants
McDonald's Corporation 886,316 40,161,194 2.12
- ----------------------------------------------------------------------------------------
Telecommunication Equipment
Lucent Technologies Inc. 843,136 90,847,904 4.80
- ----------------------------------------------------------------------------------------
Telecommunication Services
Level 3 Communications, Inc.<F*> 506,379 36,870,721 1.95
Qwest Communications<F*> 977,588 70,569,634 3.73
- ----------------------------------------------------------------------------------------
107,440,355 5.68
- ----------------------------------------------------------------------------------------
Telephone - Long Distance
AT&T Corporation 301,767 24,084,779 1.27
- ----------------------------------------------------------------------------------------
Total Common Stocks
(cost $1,514,336,860) 1,868,735,975 98.73
- ----------------------------------------------------------------------------------------
<CAPTION>
Principal/ Market Value Percent of
Shares in Dollars Net Assets
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS
SSgA Money Market Fund 23,701 23,701 -
Federal Agricultural Mortgage
Corporation, 4.80%, 4/1/99 $46,700,000 46,700,000 2.47
- ----------------------------------------------------------------------------------------
Total Short-Term Investments
(cost $46,723,701) 46,723,701 2.47
- ----------------------------------------------------------------------------------------
Total Investments
(cost $1,561,060,561) 1,915,459,676 101.20
Liabilities less Other Assets (22,668,236) (1.20)
- ----------------------------------------------------------------------------------------
NET ASSETS $1,892,791,440 100.00%
========================================================================================
<FN>
<F*> Non-income producing.
See notes to financial statements.
</TABLE>
6
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<TABLE>
MARSICO GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1999
(Unaudited)
<CAPTION>
Number Market Value Percent of
of Shares in Dollars Net Assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
Advertising Agencies
Young and Rubicam Inc.<F*> 78,936 $ 3,216,642 0.59%
- ----------------------------------------------------------------------------------------
Airlines
Delta Air Lines, Inc. 282,942 19,664,469 3.59
Southwest Airlines 364,477 11,025,429 2.02
UAL Corporation<F*> 243,896 18,962,914 3.46
- ----------------------------------------------------------------------------------------
49,652,812 9.07
- ----------------------------------------------------------------------------------------
Automotive -
Cars/Light Trucks
Ford Motor Company 240,491 13,647,864 2.49
General Motors Corporation 255,209 22,171,282 4.05
- ----------------------------------------------------------------------------------------
35,819,146 6.54
- ----------------------------------------------------------------------------------------
Automotive/Truck Parts
& Equipment - Original
Delphi Automotive
Systems Corporation<F*> 136,752 2,427,348 0.44
- ----------------------------------------------------------------------------------------
Beverages - Non-Alcoholic
Coca-Cola Enterprises Inc. 253,768 7,676,482 1.41
Pepsi Bottling Group, Inc.<F*> 311,402 6,753,531 1.23
- ----------------------------------------------------------------------------------------
14,430,013 2.64
- ----------------------------------------------------------------------------------------
Brewery
Anheuser-Busch
Companies, Inc. 292,824 22,309,529 4.08
- ----------------------------------------------------------------------------------------
Building - Residential/
Commercial
M.D.C. Holdings, Inc. 265,188 3,812,078 0.70
- ----------------------------------------------------------------------------------------
Cable Television
MediaOne Group, Inc.<F*> 281,881 17,899,444 3.27
- ----------------------------------------------------------------------------------------
7
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<CAPTION>
MARSICO GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
(Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cellular Telecommunications
Sprint Corporation<F*> 96,473 $ 4,274,960 0.78%
- ----------------------------------------------------------------------------------------
Computer Software
Microsoft Corporation<F*> 220,376 19,751,199 3.61
- ----------------------------------------------------------------------------------------
Computers -
Information Technology
IMS Health Inc. 187,794 6,220,676 1.14
- ----------------------------------------------------------------------------------------
Computers -
Memory Devices
EMC Corporation<F*> 220,218 28,132,850 5.14
- ----------------------------------------------------------------------------------------
Computers - Micro
International Business
Machines Corporation 50,000 8,862,500 1.62
- ----------------------------------------------------------------------------------------
Cosmetics & Toiletries
Gillette Company 283,204 16,832,938 3.08
- ----------------------------------------------------------------------------------------
Diversified Financial Services
Associates First
Capital Corporation 333,667 15,015,015 2.74
Citigroup, Inc. 364,124 23,258,421 4.25
- ----------------------------------------------------------------------------------------
38,273,436 6.99
- ----------------------------------------------------------------------------------------
Diversified Manufacturing
Operations
General Electric Company 32,832 3,632,040 0.66
- ----------------------------------------------------------------------------------------
Finance - Mortgage
Loan/Banker
Fannie Mae 141,765 9,817,226 1.80
Freddie Mac 162,992 9,310,918 1.70
- ----------------------------------------------------------------------------------------
19,128,144 3.50
- ----------------------------------------------------------------------------------------
8
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<PAGE>
<CAPTION>
MARSICO GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
(Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hotels & Motels
Four Seasons Hotel, Inc. 235,265 $ 9,822,314 1.79%
- ----------------------------------------------------------------------------------------
Lasers - Systems/Components
Uniphase Corporation<F*> 38,643 4,448,775 0.81
- ----------------------------------------------------------------------------------------
Medical - Drugs
Pfizer Inc. 127,734 17,723,093 3.24
Schering-Plough Corporation 49,988 2,764,961 0.50
- ----------------------------------------------------------------------------------------
20,488,054 3.74
- ----------------------------------------------------------------------------------------
Money Center Banks
Chase Manhattan Corp. 265,952 21,625,222 3.95
- ----------------------------------------------------------------------------------------
Multimedia
Comcast Corporation,
Special Class A 145,131 9,134,182 1.67
Time Warner Inc. 319,230 22,685,282 4.14
- ----------------------------------------------------------------------------------------
31,819,464 5.81
- ----------------------------------------------------------------------------------------
Networking Products
Cisco Systems, Inc.<F*> 111,017 12,163,300 2.22
- ----------------------------------------------------------------------------------------
Office Automation/Equipment
Xerox Corporation 151,642 8,093,892 1.48
- ----------------------------------------------------------------------------------------
Oil Companies - Integrated
Royal Dutch Petroleum
Company 202,157 10,512,164 1.92
- ----------------------------------------------------------------------------------------
Publishing - Books
Houghton Mifflin Company 133,544 6,259,875 1.14
- ----------------------------------------------------------------------------------------
Rental Auto/Equipment
The Hertz Corporation 201,234 10,766,019 1.97
- ----------------------------------------------------------------------------------------
9
<PAGE>
<PAGE>
<CAPTION>
MARSICO GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
(Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Retail - Building Products
The Home Depot, Inc. 173,946 $ 10,828,138 1.98%
- ----------------------------------------------------------------------------------------
Retail - Drug Store
CVS Corporation 61,807 2,935,832 0.54
- ----------------------------------------------------------------------------------------
Retail - Jewelry
Tiffany & Co. 7,298 545,525 0.10
- ----------------------------------------------------------------------------------------
Retail - Major
Department Store
Dayton Hudson Corporation 73,640 4,906,265 0.90
- ----------------------------------------------------------------------------------------
Retail - Restaurants
McDonald's Corporation 295,012 13,367,731 2.44
Starbucks Corporation<F*> 197,366 5,538,583 1.01
- ----------------------------------------------------------------------------------------
18,906,314 3.45
- ----------------------------------------------------------------------------------------
Super-Regional Banks
Northern Trust Corporation 97,753 8,681,688 1.59
- ----------------------------------------------------------------------------------------
Telecommunication
Equipment
Lucent Technologies Inc. 120,572 12,991,633 2.37
Qualcomm Inc.<F*> 80,976 10,071,390 1.84
- ----------------------------------------------------------------------------------------
23,063,023 4.21
- ----------------------------------------------------------------------------------------
Telecommunication Services
Qwest Communications<F*> 197,584 14,244,571 2.60
- ----------------------------------------------------------------------------------------
Telephone - Long Distance
AT&T Corporation 85,890 6,855,096 1.25
- ----------------------------------------------------------------------------------------
Total Common Stocks
(cost $428,325,972) 521,641,286 95.30
- ----------------------------------------------------------------------------------------
10
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<CAPTION>
MARSICO GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 1999
(Unaudited)
Number Market Value Percent of
of Shares in Dollars Net Assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS
Building - Residential/Commercial
M.D.C. Holdings, Inc.,
8.375%, 2/1/08 2,700,000 $ 2,666,250 0.49%
- ----------------------------------------------------------------------------------------
Internet Software
Exodus Communications,
5.000%, 3/15/06<F**> 3,618,000 5,788,800 1.06
- ----------------------------------------------------------------------------------------
Resorts/Theme Parks
Premier Parks, Inc.,
12.000%, 8/15/03 2,400,000 2,589,000 0.47
- ----------------------------------------------------------------------------------------
Total Corporate Bonds
(cost $8,841,978) 11,044,050 2.02
- ----------------------------------------------------------------------------------------
<CAPTION>
Principal/ Market Value Percent of
Shares in Dollars Net Assets
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS
SSgA Money Market Fund 5,156 5,156 -
Federal Agricultural Mortgage
Corporation, 4.80%, 4/1/99 $32,300,000 32,300,000 5.90%
- ----------------------------------------------------------------------------------------
Total Short-Term Investments
(cost $32,305,156) 32,305,156 5.90
- ----------------------------------------------------------------------------------------
Total Investments
(cost $469,473,106) 564,990,492 103.22
Liabilities less Other Assets (17,607,078) (3.22)
- ----------------------------------------------------------------------------------------
NET ASSETS $547,383,414 100.00%
========================================================================================
<FN>
<F*> Non-income producing.
<F**> Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration normally
to qualified institutional buyers.
See notes to financial statements.
</TABLE>
11
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<TABLE>
MARSICO FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1999
(Unaudited)
<CAPTION>
Growth &
Focus Fund Income Fund
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments, at value (cost $1,561,060,561
and $469,473,106, respectively) $1,915,459,676 $564,990,492
Interest and dividends receivable 447,171 193,296
Receivable for capital stock sold 6,068,276 3,005,824
Organizational expenses, net of
accumulated amortization 103,287 103,287
Prepaid expenses and other assets 164,014 79,803
- ---------------------------------------------------------------------------------------------
Total Assets 1,922,242,424 568,372,702
- ---------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased 24,844,462 19,568,636
Payable for capital stock redeemed 2,378,849 663,499
Accrued investment advisory fee 1,278,869 451,076
Accrued distribution fee 520,906 141,000
Accrued expenses and other liabilities 427,898 165,077
- ---------------------------------------------------------------------------------------------
Total Liabilities 29,450,984 20,989,288
- ---------------------------------------------------------------------------------------------
NET ASSETS $1,892,791,440 $547,383,414
=============================================================================================
NET ASSETS CONSIST OF:
Paid-in-capital $1,564,099,306 $456,802,986
Accumulated net realized
loss on investments (29,214,313) (4,994,307)
Accumulated net realized gain
on foreign currency transactions 3,507,425 57,349
Net unrealized appreciation
on investments and foreign
currency translations 354,399,022 95,517,386
- ---------------------------------------------------------------------------------------------
Net Assets $1,892,791,440 $547,383,414
=============================================================================================
SHARES OUTSTANDING, $0.0001
par value (Unlimited shares authorized) 111,157,876 34,839,880
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE
(NET ASSETS/SHARES OUTSTANDING) $17.03 $15.71
=============================================================================================
See notes to financial statements.
</TABLE>
12
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<PAGE>
<TABLE>
MARSICO FUNDS
STATEMENTS OF OPERATIONS
Six Months Ended
MARCH 31, 1999
(Unaudited)
<CAPTION>
Growth &
Focus Fund Income Fund
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 1,951,227 $ 846,027
Dividends 4,046,129 1,229,054
- ---------------------------------------------------------------------------------------------
Total Investment Income 5,997,356 2,075,081
- ---------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 5,337,753 1,868,651
Distribution fees 1,569,927 476,170
Transfer agent fees and expenses 730,528 215,806
Fund administration fees 155,044 111,293
Federal and state registration fees 115,534 45,106
Custody and fund accounting fees 84,753 46,082
Printing and postage expenses 52,472 16,345
Trustees' fees and expenses 32,825 32,825
Professional fees 31,223 31,223
Amortization of organizational costs 13,721 13,721
Miscellaneous 5,275 1,216
- ---------------------------------------------------------------------------------------------
Total expenses 8,129,055 2,858,438
Less expenses paid indirectly (81,467) (4,681)
- ---------------------------------------------------------------------------------------------
Net Expenses 8,047,588 2,853,757
- ---------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (2,050,232) (778,676)
=============================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain on investments 12,891,764 10,920,227
Net realized gain on foreign
currency transactions 3,073,511 92
Change in unrealized appreciation
on investments and foreign
currency translations 368,597,027 98,715,324
- ---------------------------------------------------------------------------------------------
Net Gain on Investments 384,562,302 109,635,643
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $382,512,070 $108,856,967
=============================================================================================
See notes to financial statements.
</TABLE>
13
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<TABLE>
MARSICO FOCUS FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
Six Months Dec. 31, 1997<F*>
Ended to
Mar. 31, 1999 Sept. 30, 1998
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment loss $ (2,050,232) $ (813,918)
Net realized gain (loss) on investments 12,891,764 (40,087,882)
Net realized gain on foreign
currency transactions 3,073,511 433,914
Change in unrealized appreciation/
depreciation on investments and
foreign currency translations 368,597,027 (14,198,005)
- ---------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 382,512,070 (54,665,891)
- ---------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 955,092,495 1,280,834,349
Redemption of shares (303,069,783) (367,961,800)
- ---------------------------------------------------------------------------------------------
Net increase from capital
share transactions 652,022,712 912,872,549
- ---------------------------------------------------------------------------------------------
TOTAL INCREASE IN
NET ASSETS 1,034,534,782 858,206,658
NET ASSETS:
Beginning of period 858,256,658 50,000
- ---------------------------------------------------------------------------------------------
End of period $1,892,791,440 $ 858,256,658
=============================================================================================
TRANSACTIONS
IN SHARES:
Shares sold 62,892,674 97,469,724
Shares redeemed (21,178,994) (28,030,528)
- ---------------------------------------------------------------------------------------------
Net increase 41,713,680 69,439,196
=============================================================================================
<FN>
<F*> Commencement of operations.
See notes to financial statements.
</TABLE>
14
<PAGE>
<PAGE>
<TABLE>
MARSICO GROWTH & INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
Six Months Dec. 31, 1997<F*>
Ended to
Mar. 31, 1999 Sept. 30, 1998
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment loss $ (778,676) $ (118,262)
Net realized gain (loss) on investments 10,920,227 (15,147,236)
Net realized gain on foreign
currency transactions 92 57,257
Change in unrealized appreciation/
depreciation on investments and
foreign currency translations 98,715,324 (3,197,938)
- ---------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 108,856,967 (18,406,179)
- ---------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 272,902,599 368,490,350
Redemption of shares (97,895,359) (86,614,964)
- ---------------------------------------------------------------------------------------------
Net increase from capital
share transactions 175,007,240 281,875,386
- ---------------------------------------------------------------------------------------------
TOTAL INCREASE IN
NET ASSETS 283,864,207 263,469,207
NET ASSETS:
Beginning of period 263,519,207 50,000
- ---------------------------------------------------------------------------------------------
End of period $547,383,414 $263,519,207
=============================================================================================
TRANSACTIONS
IN SHARES:
Shares sold 17,614,186 29,846,080
Shares redeemed (5,607,185) (7,018,201)
- ---------------------------------------------------------------------------------------------
Net increase 12,007,001 22,827,879
=============================================================================================
<FN>
<F*> Commencement of operations.
See notes to financial statements.
</TABLE>
15
<PAGE>
<PAGE>
<TABLE>
MARSICO FOCUS FUND
FINANCIAL HIGHLIGHTS
For a Fund Share Outstanding Throughout the Period.
(Unaudited)
<CAPTION>
Six Months Dec. 31, 1997<F*>
Ended to
Mar. 31, 1999 Sept. 30, 1998
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $12.36 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss (0.02) (0.01)
Net realized and unrealized gains on investments 4.69 2.37
- ---------------------------------------------------------------------------------------------
Total from investment operations 4.67 2.36
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $17.03 $12.36
=============================================================================================
TOTAL RETURN<F1> 37.78% 23.60%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $1,892,791 $858,257
Ratio of expenses to average net assets,
less waivers and before expenses paid indirectly<F2> 1.28% 1.56%
Ratio of net investment loss to average
net assets, net of waivers and expenses
paid indirectly<F2> (0.33)% (0.27)%
Ratio of expenses to average net assets,
before waivers and expenses paid indirectly<F2> 1.29% 1.56%
Ratio of net investment loss to average
net assets, before waivers and expenses
paid indirectly<F2> (0.34)% (0.27)%
Portfolio turnover rate<F1> 109% 170%
<FN>
<F*> Commencement of operations.
<F1> Not annualized.
<F2> Annualized.
See notes to financial statements.
</TABLE>
16
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<TABLE>
MARSICO GROWTH & INCOME FUND
FINANCIAL HIGHLIGHTS
For a Fund Share Outstanding Throughout the Period.
(Unaudited)
<CAPTION>
Six Months Dec. 31, 1997<F*>
Ended to
Mar. 31, 1999 Sept. 30, 1998
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $11.54 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss (0.02) (0.01)
Net realized and unrealized gains on investments 4.19 1.55
- ---------------------------------------------------------------------------------------------
Total from investment operations 4.17 1.54
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $15.71 $11.54
=============================================================================================
TOTAL RETURN<F1> 36.14% 15.40%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $547,383 $263,519
Ratio of expenses to average net assets,
less waivers and before expenses paid indirectly<F2><F3> 1.50% 1.51%
Ratio of net investment loss to average
net assets, net of waivers and expenses
paid indirectly<F3> (0.41)% (0.14)%
Ratio of expenses to average net assets,
before waivers and expenses paid indirectly<F3> 1.50% 1.78%
Ratio of net investment loss to average
net assets, before waivers and expenses
paid indirectly<F3> (0.41)% (0.41)%
Portfolio turnover rate<F1> 76% 141%
<FN>
<F*> Commencement of operations.
<F1> Not annualized.
<F2> The ratio of net expenses to average net assets was 1.50% for the six months
ended March 31, 1999 and for the period December 31, 1997 to September 30,
1998. Net expenses represent total expenses less waiver of fees and expenses
paid indirectly.
<F3> Annualized.
See notes to financial statements.
</TABLE>
17
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<PAGE>
MARSICO FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
(Unaudited)
1. ORGANIZATION
- -------------------------------------------------------------------------------
The Marsico Investment Fund (the "Trust") was organized on October 1,
1997 as a Delaware Business Trust and is registered under the Investment
Company Act of 1940, as amended (the "1940 Act") as an open-end
management investment company. The Focus Fund and the Growth & Income
Fund (collectively, the "Funds") are separate investment portfolios of
the Trust. The Focus Fund is a non-diversified fund that seeks long-
term growth of capital by normally investing in a core position of 20-30
common stocks. The Growth & Income Fund is a diversified fund, as
defined in the 1940 Act, that seeks long-term growth of capital with a
limited emphasis on income. The Funds commenced operations on December
31, 1997.
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
stockexchange 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 which
will mature in more than 60 days are valued at prices furnished by
a pricing service. Securities which 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 Funds' investment adviser pursuant to guidelines
established by the Board of Trustees.
18
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<PAGE>
(b) Organization Costs - Costs incurred by the Funds in connection
with their organization, registration and the initial public
offering of shares have been deferred and will be amortized over
the period of benefit, but not to exceed five years. If any of
the original shares of a Fund are redeemed by any holder thereof
prior to the end of the amortization period, the redemption
proceeds will be reduced by the pro rata share of the unamortized
expenses as of the date of redemption. The pro rata share by
which the proceeds are reduced will be derived by dividing the
number of original shares of the Fund being redeemed by the total
number of original shares outstanding at the time of redemption.
(c) 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 waivers. The Funds' transfer agency fees may
be reduced by uninvested cash balances earning interest or
credits. In addition, the Adviser has directed certain of the
Funds' portfolio trades to generate directed brokerage credits to
be used against sub-transfer agency fees. Net expenses of the
Funds do not include such transfer agency fees and credits. In
accordance with Securities and Exchange Commission requirements,
such credits are required to be included in Transfer Agent Fees
and Expenses and as a reduction of Total Expenses under Expenses
Paid Indirectly in the Statement of Operations.
(d) 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.
(e) 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 distributions determined in accordance with federal
tax regulations, which may differ from GAAP. These reclassifications
are due to differing treatments for items such as deferral of wash
sales, foreign currency transactions, net operating losses, and Post-
October capital losses.
19
<PAGE>
<PAGE>
(f) Forward Currency Transactions and Futures Contracts - The Funds
enter into forward currency contracts in order 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.
Currency gain and loss is also calculated on payables and
receivables that are denominated in foreign currencies. The
payables and receivables are generally related to security
transactions and income. The change in net appreciation/
depreciation of the payables and receivables is recorded as
unrealized appreciation/depreciation on investments and foreign
currency translations.
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.
20
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<PAGE>
(g) 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.
3. INVESTMENT ADVISORY AGREEMENT
- -------------------------------------------------------------------------------
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 and
Growth & Income Funds. The Adviser has voluntarily agreed to limit the
total expenses of each Fund (excluding interest, taxes, brokerage, and
extraordinary expenses) to an annual rate of 1.60% of the Focus Fund's
average net assets and 1.50% of the Growth & Income Fund's average net
assets until January 1, 2000. This fee waiver is voluntary and may be
terminated at any time. 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. For the six months ended March 31, 1999, the Adviser
recovered previously waived fees of $249,672 in the Growth & Income
Fund.
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, 1999, were
as follows:
21
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<PAGE>
<TABLE>
<CAPTION>
Growth &
Focus Fund Income Fund
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
PURCHASE
U.S. Government $ 90,068,229 $ 11,258,529
Other 1,929,630,447 436,111,853
SALES
U.S. Government 86,207,660 22,496,918
Other 1,272,723,344 259,766,027
- ---------------------------------------------------------------------------------------------
</TABLE>
The cost of securities on a tax basis for the Focus and Growth & Income
Funds is $1,599,589,059, and $474,704,245, respectively. At March 31,
1999, gross unrealized appreciation and depreciation on investments for
federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Growth &
Focus Fund Income Fund
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Unrealized Appreciation $331,997,786 $94,897,534
(Unrealized Depreciation) (16,127,169) (4,611,287)
- ---------------------------------------------------------------------------------------------
Net Unrealized Appreciation
on Investments $315,870,617 $90,286,247
</TABLE>
6. RESULTS OF THE SHAREHOLDER MEETING
- -------------------------------------------------------------------------------
The special meeting of the shareholders of the Funds was held on
February 1, 1999. Trustees elected by the shareholders at the time of
the meeting were as follows: Thomas F. Marsico, J. Jeffrey Riggs, Rono
Dutta, Theodore S. Halaby, Walter A. Koelbel, Jr., Larry A. Mizel,
Federico Pena and Michael D. Rierson.
The matters voted on by the shareholders of record as of December
10, 1998 and the results of the vote at the shareholder meeting held
February 1, 1999 were as follows:
22
<PAGE>
<PAGE>
1. Approval of the new investment advisory and management agreement
between the Marsico Investment Fund and Marsico Capital Management, LLC.
<TABLE>
<CAPTION>
For Against Abstain
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Focus Fund 46,539,037 1,025,452 641,913
Growth & Income Fund 13,787,818 282,281 170,986
- ---------------------------------------------------------------------------------------------
</TABLE>
2. Election of Trustees
<TABLE>
<CAPTION>
For Withheld
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Thomas F. Marsico
Focus Fund 47,222,559 983,844
Growth & Income Fund 13,946,732 294,354
J. Jeffrey Riggs
Focus Fund 47,308,311 898,092
Growth & Income Fund 13,979,366 261,720
Rono Dutta
Focus Fund 47,328,312 878,091
Growth & Income Fund 13,986,193 254,893
Theodore S. Halaby
Focus Fund 47,315,045 891,358
Growth & Income Fund 13,984,296 256,790
Walter A. Koelbel, Jr.
Focus Fund 47,339,006 867,397
Growth & Income Fund 13,999,760 241,326
Larry A. Mizel
Focus Fund 47,314,104 892,299
Growth & Income Fund 14,006,242 234,844
Federico Pena
Focus Fund 47,241,635 964,768
Growth & Income Fund 13,995,602 245,484
Michael D. Rierson
Focus Fund 47,377,963 828,440
Growth & Income Fund 14,012,738 228,348
</TABLE>
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