Marsico Flexible Capital Fund reorganization

TheShadow

https://www.sec.gov/Archives/edgar/data/1047112/000139834418010656/fp0034773_497.htm

As previously communicated to shareholders in a supplement dated May 25, 2018, and an information statement/prospectus dated July 2, 2018, the reorganization of the Marsico Flexible Capital Fund (or “Acquired Fund”) with and into the Marsico Global Fund (or “Surviving Fund”) (the “Reorganization”) is expected to take place on or about August 3, 2018.

Regarding the Flexible Capital Fund/Acquired Fund, on August 1, 2018, in anticipation of the Reorganization, the Flexible Capital Fund/Acquired Fund expects to make a distribution to its shareholders who are holders of record as of July 31, 2018, which will have the effect of distributing to its shareholders all of the Flexible Capital Fund’s/Acquired Fund’s investment company taxable income, if any, for the taxable period ending on or about August 3, 2018 (computed without regard to any deduction for dividends paid) and all of its net capital gains, if any, realized in the taxable period ending on or about August 3, 2018 (after reduction for any available capital loss carry forwards). Such distributions may be included in the taxable income of Flexible Capital Fund/Acquired Fund shareholders, depending on a shareholder’s tax status. Please refer to the Marsico Funds’ website for additional information concerning the distribution.

Regarding the Global Fund/Surviving Fund, Marsico Capital Management, LLC (“MCM”), the Funds’ investment adviser, has entered into an expense limitation agreement with the Fund in which MCM has agreed to reduce the current contractual net expense cap for the Fund by 5 basis points from 1.50% to 1.45% upon the closing of the Reorganization at least through September 30, 2019...

Crash

Typo. Marsico, right? (Header.)

TheShadow

@Crash

Thanks. My mind works faster than my fingers.

VintageFreak

I vote all "reorganizations" stop. My head is spinning.

Sven

Marsico funds are not doing well since Tom Marsico left Janus. I suspect the he does not have the same level of analyst and investment team support he once had at Janus.

msf

"Marsico funds are not doing well since Tom Marsico left Janus."

That would be the entire lifetime of Marsico funds

Actually they did do well for some time. After ten years (end of 2007), MGRIX had averaged 9.18% and MFOCX had averaged 9.64%. In comparison, VIGRX had averaged 5.12% and its LCG benchmark had averaged 5.21%. (The other Marsico funds are younger.)

Marsico Funds prospectus, Feb 2008 (w/2007 figures): https://www.sec.gov/Archives/edgar/data/1047112/000094822108000010/marsico_485bpos-020108.htm

Vanguard Index Funds prospectus, April 2008 (w/2007 figures): https://www.sec.gov/Archives/edgar/data/36405/000093247108001124/indexfunds485bfiling4292008.txt

The family had lots of problems after that, including debt and staff (management/analyst) turnover. From M* Oct 2012:

As Marsico Capital Management struggled with poor performance, outflows, and its own debt-laden balance sheet, Flexible Capital's Doug Rao used the fund's wide-ranging strategy to good effect. ... Unfortunately,... In July 2012 Rao left the firm and the fund. It's now comanaged by Munish Malhotra, who has a short mixed record at other Marsico funds he's helped run, and Jordan Laycob, who hasn't led a fund before. Furthermore, there has been a lot of turnover among the firm's analysts and the fund's fees are high.

http://srt.morningstar.com/newsp/cmsAcontent.html?t=LMVTX&resourceId=570104&src=Morningstar&date=10-11-2012

BenWP

It seems to stay in the family, at least in Denver. Doug Rao moved from Marsico to Janus where he's managing the VIT Forty and Forty funds. He made $ for me at Marsico Flexible Capital.