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Approach & Process

Fundamental, Intensive, Hands-on Research

Our investment approach emphasizes the selection of what we believe are stocks of high-quality companies with compelling potential for long-term capital appreciation. A fundamental aspect of our research process is that we do the work ourselves, meaning that we internally formulate an investment hypothesis and then rigorously test that hypothesis through multipronged, hands-on analysis. We constantly seek new information and work hard to be earlier than others in understanding what is occurring and why it is important to investors.

Our approach of blending top-down macroeconomic analysis and theme development with bottom-up stock selection sets us apart from other fund managers. It is a time-tested approach that has been consistently applied through various market conditions.

Top Down Bottom Up Process Chart

Marsico's investment approach combines elements of "top-down" macroeconomic analysis and "bottom-up" company and security analysis. Our macroeconomic analysis - which includes an assessment of factors such as interest rates, inflation, monetary policy, fiscal policy, trade policy, currency movements, demographic trends, the regulatory environment, and the global competitive landscape - serves to create a strategic backdrop for actual portfolio construction. We may also examine other factors that may include the most attractive global investment opportunities, sector and industry trends, industry consolidation, and the sustainability of financial trends.

In our bottom-up stock selection process, stocks are evaluated and selected on the basis of attributes such as market-share position, excellent management teams, improving profit margins, solid balance sheets or free cash-flow generation. A positive, transformational catalyst, such as a major new innovative product or new management team, may also be an important criterion. In addition, we carefully consider a stock's current valuation in the context of internally projected growth rates and peer-group comparisons.

A Flexible Approach to Defining "Growth"

The majority of the Marsico Funds’ assets are invested in what we call core growth companies: typically well-established seasoned companies that we believe may offer the potential for long-term attractive, above-market, relatively predictable future earnings growth rates. Depending on our macroeconomic view and company specific investment opportunities, we may allocate smaller portions of the Funds to Aggressive Growth or Life Cycle Change companies. Aggressive Growth allocations enable us to take advantage of companies that we believe may produce rapidly accelerating earnings growth. Life Cycle Change allocations allow us to invest in companies that are undergoing positive, transformational change in their business model that we believe could serve as a catalyst for substantially improved earnings growth in the future.

Growth Approach Chart

Companies undergoing a positive, transformational change in their business model, such as a merger, acquisition, new product, new management team, favorable regulatory development, and/or positive industry-level change that we believe could serve as a catalyst for substantially improved earnings growth in the future.

Typically well-established, seasoned companies that we believe may offer the potential for long-term attractive, above-market, relatively predictable future earnings growth rates.

Companies that we believe may produce rapidly accelerating earnings growth well in excess of overall market performance.

Please consider the Fund's investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information about the Fund, click here or call 888-860-8686. Please read the prospectus carefully before investing.

Investments in mutual funds carry risks and investors may lose principal value. Click here for the principal risks of investing in the Funds. Please read the prospectus carefully before investing as it explains the risks associated with investing in the mutual funds.

The International Opportunities Fund may, at times, experience higher-than-average portfolio turnover which may generate significant taxable gains and increased trading expenses which in turn may lower the Fund’s return.

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. ©Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Past performance is no guarantee of future results. Recent performance may have been negative.

UMB Distribution Services, LLC, is the distributor of The Marsico Investment Fund. Check the background of UMB Distribution Services on FINRA's BrokerCheck.

©2018 Marsico Capital Management, LLC
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