DEF 14A 1 ddef14a.htm MARSHALL FUNDS, INC. Marshall Funds, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

(Amendment No.     )

 

Filed by the Registrant x                            Filed by a Party other than the Registrant ¨

Check the appropriate box:

 

¨ Preliminary Proxy Statement

 

¨ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

 

x Definitive Proxy Statement

 

¨ Definitive Additional Materials

 

¨ Soliciting Material Pursuant to §240.14a-12

 

 

MARSHALL FUNDS, INC.

 

(Name of Registrant as Specified in its Charter)

 

 

            

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

 

Payment of Filing Fee (Check the appropriate box):

 

x No fee required.

 

¨ Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

 

  (1) Title of each class of securities to which transaction applies:

 

  

 
  (2) Aggregate number of securities to which transaction applies:

 

  

 
  (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):

 

  

 
  (4) Proposed maximum aggregate value of transaction:

 

  

 
  (5) Total fee paid:

 

  

 

 

¨ Fee paid previously with preliminary materials.

 

¨ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

  (1) Amount Previously Paid:

 

  

 
  (2) Form, Schedule or Registration Statement No.:

 

  

 
  (3) Filing Party:

 

  

 
  (4) Date Filed:

 

  

 

 

MARSHALL FUNDS, INC.

111 East Kilbourn Avenue, Suite 200

Milwaukee, Wisconsin 53202

July 9, 2009

Dear Shareholder:

I am writing to inform you of the upcoming annual meeting of shareholders of Marshall Funds, Inc. (the “Corporation”) with respect to all of its portfolios (the “Funds”) to be held at 8:00 a.m. (Central Time), Wednesday, August 5, 2009, at the offices of the Corporation at 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202. At this meeting, you are being asked to vote on the following important proposals: (1) to elect seven directors to the Board of Directors of the Corporation, (2) to modify each Fund’s fundamental investment limitation regarding lending and (3) to convert each Fund’s investment objective from fundamental to non-fundamental.

The Board of Directors of the Corporation has unanimously approved these proposals and recommends that you vote in favor of each proposal.

The enclosed materials provide more information about these proposals. Please review and consider each of the proposals carefully. Whether or not you plan to attend the annual meeting, please sign and return the enclosed proxy card in the postage prepaid envelope provided. You also may vote by toll-free telephone or by Internet according to the instructions noted on the enclosed proxy card.

Thank you for investing in the Funds and for your continuing support.

 

Sincerely,
 

John M. Blaser

President

MARSHALL FUNDS, INC.

111 East Kilbourn Avenue, Suite 200

Milwaukee, Wisconsin 53202

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

The annual meeting of shareholders of the following investment portfolios (each, a “Fund” and collectively, the “Funds”) of Marshall Funds, Inc., a Wisconsin corporation (the “Corporation”), will be held on Wednesday, August 5, 2009 at 8:00 a.m. (Central Time) at the offices of the Corporation at 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202:

 

Marshall Government Money Market Fund    Marshall Core Plus Bond Fund
Marshall Tax-Free Money Market Fund    Marshall Large-Cap Value Fund
Marshall Prime Money Market Fund    Marshall Large-Cap Growth Fund
Marshall Short-Term Income Fund    Marshall Mid-Cap Value Fund
Marshall Short-Intermediate Bond Fund    Marshall Mid-Cap Growth Fund
Marshall Intermediate Tax-Free Fund    Marshall Small-Cap Growth Fund
Marshall Government Income Fund    Marshall International Stock Fund
Marshall Corporate Income Fund    Marshall Emerging Markets Equity Fund
Marshall Aggregate Bond Fund   

At the annual meeting, shareholders will be asked to consider and vote upon the following proposals:

 

  1. To elect seven directors;

 

  2. To modify each Fund’s fundamental investment limitation regarding lending; and

 

  3. To convert each Fund’s investment objective from fundamental to non-fundamental;

and to consider and act upon any other business which may properly come before the annual meeting or any adjournments thereof.

The Board of Directors recommends that shareholders vote FOR each proposal.

Only shareholders of record at the close of business on Friday, June 12, 2009, the record date for the annual meeting, shall be entitled to notice of, and to vote at, the annual meeting or any adjournments thereof.

Important Notice Regarding the Internet Availability of Proxy Materials for the Shareholder Meeting to be held on Wednesday, August 5, 2009

The Letter to Shareholders, Notice of Meeting and Proxy Statement are available at www.proxyvote.com.

YOUR VOTE IS IMPORTANT.

PLEASE RETURN YOUR PROXY CARD PROMPTLY OR PROXY VOTE BY TOLL-FREE TELEPHONE OR INTERNET IN ACCORDANCE WITH THE INSTRUCTIONS NOTED ON THE ENCLOSED PROXY CARD.

As a shareholder of the Corporation, you are asked to attend the annual meeting either in person or by proxy. If you would like to attend the annual meeting in person and require meeting directions, please call 1-800-236-FUND. If you are unable to attend the annual meeting in person, we urge you to vote by proxy. You can do this in one of three ways: by (1) completing, signing, dating and promptly returning the enclosed proxy card in the enclosed postage prepaid envelope, (2) calling a toll-free telephone number or (3) using the Internet. Your prompt voting by proxy will help assure a quorum at the annual meeting and avoid additional expenses to the Funds associated with further solicitation. Voting by proxy will not prevent you from voting your shares in person at the annual meeting. You may revoke your proxy before it is exercised at the annual meeting by submitting to the Secretary of the Corporation a written notice of revocation or a subsequently signed proxy card. A prior proxy can also be revoked by proxy voting again through the website or toll-free number noted on the enclosed proxy card.

 

By Order of the Board of Directors,
 

Angela L. Pingel

Secretary

Milwaukee, Wisconsin

July 9, 2009

 

2

MARSHALL FUNDS, INC.

111 East Kilbourn Avenue, Suite 200

Milwaukee, Wisconsin 53202

 

 

PROXY STATEMENT

 

 

ANNUAL MEETING OF SHAREHOLDERS

AUGUST 5, 2009

General

This proxy statement is being furnished in connection with the solicitation of proxies by the Board of Directors (the “Board”) of Marshall Funds, Inc. (the “Corporation”) with respect to the 17 investment portfolios of the Corporation (each, a “Fund,” and collectively, the “Funds”). The Funds are:

 

Marshall Government Money Market Fund   Marshall Core Plus Bond Fund
Marshall Tax-Free Money Market Fund   Marshall Large-Cap Value Fund
Marshall Prime Money Market Fund   Marshall Large-Cap Growth Fund
Marshall Short-Term Income Fund   Marshall Mid-Cap Value Fund
Marshall Short-Intermediate Bond Fund   Marshall Mid-Cap Growth Fund
Marshall Intermediate Tax-Free Fund   Marshall Small-Cap Growth Fund
Marshall Government Income Fund   Marshall International Stock Fund
Marshall Corporate Income Fund   Marshall Emerging Markets Equity Fund
Marshall Aggregate Bond Fund  

Each Fund, except Marshall Government Money Market Fund, Marshall Tax-Free Money Market Fund, Marshall Intermediate Tax-Free Fund and Marshall Core Plus Bond Fund, consists of three classes of shares, Investor Class (“Class Y”), Advisor Class (“Class A”) and Institutional Class (“Class I”). Marshall Government Money Market Fund, Marshall Tax-Free Money Market Fund and Marshall Core Plus Bond Fund each consist of two classes of shares, Class Y and Class I. Marshall Intermediate Tax-Free Fund consists of a single class of shares, Class Y.

The annual meeting of shareholders will be held at 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202, on Wednesday, August 5, 2009, at 8:00 a.m. (Central Time) and at any adjourned session thereof, for the purposes set forth in the enclosed notice of annual meeting of shareholders. This Proxy Statement and the accompanying Notice of Annual Meeting and proxy card are expected to be mailed to shareholders on or about July 9, 2009 or as soon as practical thereafter.

Record Date/Shareholders Entitled to Vote

If you owned shares of a Fund as of the close of business on the record date, June 12, 2009, then you are entitled to vote at the annual meeting (or any adjournments

thereof). You will be entitled to one vote per full share (and a fractional vote per fractional share) for each share you own on the record date. However, you will only be allowed to vote on matters submitted to the shareholders of Funds of which you own shares. The following table sets forth the proposals and the shareholders who may vote on them:

 

Proposals

   

Shareholders Entitled to Vote

1. To elect seven directors.

    All Funds

2. To modify each Fund’s fundamental investment limitation regarding lending.

    Each Fund

3. To convert each Fund’s investment objective from fundamental to non-fundamental.

    Each Fund

PROPOSAL 1: ELECTION OF DIRECTORS

Shareholders are being asked to elect seven nominees, all of whom currently serve as directors, to constitute the Board of the Corporation. The Board currently consists of eight directors. Mr. DeVincentis will be retiring from the Board effective August 31, 2009. If elected, each director will hold office for an indefinite term, until his or her successor is duly elected or until his or her death, resignation, retirement or removal.

If all of the nominees are elected, the Board will consist of five directors who are not considered to be “interested persons” of the Funds as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) and two directors who are considered to be “interested persons” of the Funds as defined in the 1940 Act. Current directors who are not considered to be “interested persons” of the Funds are referred to in this proxy statement as “independent directors.”

At a meeting held on May 6, 2009, the Board, upon the recommendation of the Nominating Committee of the Board, nominated the director nominees listed in the table below. All nominees have consented to serve as directors upon their election, but if any of them should decline or be unable to act as a director, the persons named as proxies may vote in favor of such other person or persons as the Board may recommend.

Nominees for the Board

Each nominee for director of the Corporation is listed in the following table, together with information regarding his or her age and business experience during the past five years, as well as the number of Funds overseen by the director. The address of each nominee is 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202. The information in the following table is as of June 1, 2009, unless otherwise indicated.

 

2

INTERESTED DIRECTOR NOMINEES*

 

Name and Age

  

Position(s)
Held with the
Corporation

   

Term of
Office and
Length of
Time
Served**

   

Principal Occupation(s)
During Past 5 Years

   Number of
Portfolios in
Fund
Complex
Overseen by
Director or
Nominee for
Director		   

Other
Directorships
Held by
Director

John M. Blaser

Age: 52

   Director and President    Indefinite; since May 1999    Vice President of the M&I Investment Management Corp. (the “Adviser”) and Marshall & Ilsley Trust Company (“M&I Trust”) since 1998.    17    None

Kenneth C. Krei

Age: 59

   Director    Indefinite; since July 2004    Chairman of M&I Financial Advisors, Inc. since January 2005; Director and Chief Executive Officer of the Adviser since July 2003; Director, President and Chief Executive Officer of M&I Trust since July 2003; Senior Vice President of Marshall & Ilsley Corporation (a bank holding company) since July 2003.    17    None

 

* Mr. Blaser is an “interested person” of the Corporation (as defined in the 1940 Act) due to the positions that he holds with the Corporation, the Adviser and M&I Trust. Mr. Krei is an “interested person” of the Corporation due to the positions that he holds with the Adviser, M&I Trust and Marshall & Ilsley Corporation.

 

** If elected, each director will hold office for an indefinite term, until his or her successor is duly elected or until his or her death, resignation, retirement or removal. Previously, directors were elected for five-year terms.

 

3

INDEPENDENT DIRECTOR NOMINEES

 

Name and Age

  

Position(s)
Held with the
Corporation

  

Term of
Office and
Length of
Time
Served*

   

Principal Occupation(s)
During Past 5 Years

   Number of
Portfolios in
Fund
Complex
Overseen by
Director or
Nominee for
Director		  

Other
Directorships
Held by
Director

Larry D. Armel

Age: 67

   Independent Director   Indefinite; since September 2006    Retired; formerly, Chairman, Gold Bank Funds, from 2002 to 2005.   17   None

Benjamin M. Cutler

Age: 64

   Independent Director   Indefinite; since July 2004    Chairman, CEO and President, USHEALTH Group, Inc. (a health insurance company), since September 2004; Chairman, Assurant Health (a health insurer), and Executive Vice President, Assurant, Inc. (an insurance company), from 2002 to 2004; President and CEO, Fortis Health (a health insurer) from 1996 to 2003.   17   None

John A. Lubs

Age: 61

   Independent Director   Indefinite; since July 2004    Vice President, Mason Companies, Inc. (a footwear distributor), since October 2004; President and Chief Operating Officer, Mason Companies, Inc., from 1990 to 2004.   17   None

 

* If elected, each director will hold office for an indefinite term, until his or her successor is duly elected or until his or her death, resignation, retirement or removal. Previously, directors were elected for five-year terms.

 

4

Name and Age

   

Position(s)
Held with the
Corporation

   

Term of
Office and
Length of
Time
Served*

   

Principal Occupation(s)
During Past 5 Years

    Number of
Portfolios in
Fund
Complex
Overseen by
Director or
Nominee for
Director		   

Other
Directorships
Held by
Director

James Mitchell

Age: 62

    Independent Director    Indefinite; since March 1999    Chairman, Golner Precision Products, Inc. (a supplier of machine parts), from 2004 to 2008; Chief Executive Officer, General Automotive Manufacturing, LLC (an automotive parts manufacturing company), from 2001-2007; Chief Executive Officer, NOG, Inc. (a metal processing and consulting company) since 1999; Chairman, Ayrshire Precision Engineering (a precision machining company) since 1992.    17    None

Barbara J. Pope

Age: 61

    Independent Director    Indefinite; since March 1999    President of Barbara J. Pope, P.C. (a financial consulting firm) since 1992; President of Sedgwick Street Fund LLC (a private investment partnership) since 1996; formerly, Tax Partner, Price Waterhouse.    17    None

 

* If elected, each director will hold office for an indefinite term, until his or her successor is duly elected or until his or her death, resignation, retirement or removal. Previously, directors were elected for five-year terms.

 

5

Officers of the Funds

The officers of the Corporation are elected annually by the Board and hold the same position with all of the Funds. Each officer holds office for one year and until the election and qualification of his or her successor. The address of each officer is 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202. The following table contains certain information concerning the officers of the Funds as of June 1, 2009, unless otherwise indicated.

PRINCIPAL OFFICERS

 

Name and Age

   

Position(s) Held with the
Corporation

   

Term of Office and
Length of Time Served

   

Principal Occupation(s)
During Past 5 Years

Timothy M. Bonin

Age: 36

    Treasurer    Re-elected by the Board annually; since February 2006    Vice President of the Adviser, since February 2006; Financial Services Audit Senior Manager, PricewaterhouseCoopers LLP, prior thereto.

John D. Boritzke

Age: 53

    Vice President    Re-elected by the Board annually; since October 2001    Senior Vice President of the Adviser and M&I Trust, since 2008; Vice President of the Adviser and M&I Trust,
1993-2008.

Angela L. Pingel

Age: 38

    Secretary    Re-elected by the Board annually; since March 2008    Vice President and Securities Counsel of the Adviser and M&I Trust since 2007; Counsel, U.S. Bancorp Fund Services LLC, 2004-2007; Associate, Krukowski & Costello, S.C. (a law firm), 2002-2004.

 

6

Name and Age

   

Position(s) Held with the
Corporation

   

Term of Office and
Length of Time Served

   

Principal Occupation(s)
During Past 5 Years

Stephen R. Oliver

Age: 58

    Chief Compliance Officer and Anti-Money Laundering Compliance Officer    Re-elected by the Board annually, Chief Compliance Officer since July 2008 and Anti-Money Laundering Officer since January 2009    Director and Vice President of M&I Distributors, LLC, since 2007; Vice President of M&I Trust and M&I Financial Advisors, Inc., since March 2006; President, Gold Bank Funds, from February 2006 to June 2006; Chief Compliance Officer, Gold Bank Funds, from December 2001 to June 2006; Senior Vice President, Gold Capital Management, Inc. (broker/dealer) and Senior Vice President, Gold Financial Services, Inc. (financial holding company), from September 1998 to March 2006; President, Gold Insurance, Inc. (full line insurance company) and President, Gold Reinsurance Company Ltd. (reinsurance company), from December 2001 to March 2006.

Responsibilities of the Board

The business and affairs of the Funds are managed under the direction of the Board, including general oversight and review of investment policies and activities of each Fund. The Board also elects the officers of the Corporation, who are responsible for supervising and administering each Fund’s day-to-day operations. The Board held 5 meetings during the fiscal year ended August 31, 2008.

Shareholders wishing to communicate with the Board or individual directors should send such correspondence to the Board at the Corporation’s offices, 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202. Shareholder communications will be sent directly to the applicable Board member(s). The Corporation currently does not have a policy with respect to Board members’ attendance at shareholder meetings.

Committees of the Board

The standing committees of the Board are the Nominating Committee and the Audit Committee. These committees are comprised solely of independent directors.

 

7

Nominating Committee. The current members of the Nominating Committee are Messrs. Armel, Cutler, DeVincentis, Lubs and Mitchell and Ms. Pope. The Board has adopted a written charter of the Nominating Committee, attached as Exhibit A, pursuant to which the Nominating Committee identifies, evaluates, selects and nominates, or recommends for nomination, candidates for the Board. It also may set standards or qualifications for directors. The Nominating Committee has generally identified nominees based upon suggestions by independent directors, officers of the Adviser and/or officers of M&I Trust. The Nominating Committee may consider candidates for the Board submitted by shareholders if a vacancy were to exist. Shareholders who wish to recommend a nominee may do so by submitting the appropriate information about the candidate to the Corporation’s Secretary. During the fiscal year ended August 31, 2008, the Nominating Committee did not meet.

Audit Committee. The current members of the Audit Committee are Messrs. DeVincentis (chair), Armel, Cutler, Lubs and Mitchell and Ms. Pope. The Board has adopted a written charter of the Audit Committee pursuant to which the Audit Committee retains the independent registered public accounting firm to audit the financial statements of each Fund; meets with the independent registered public accounting firm periodically to review the results of the audits and reports their results to the full Board; evaluates the independence of the independent registered public accounting firm; and preapproves, or establishes preapproval policies and procedures concerning, all audit and non-audit services provided to the Funds. During the fiscal year ended August 31, 2008, the Audit Committee met three times.

Compensation of Directors

The Corporation pays each independent director an aggregate annual fee of $45,000. The Corporation does not pay any fees to its interested directors or officers. Neither the Corporation nor the Funds maintain any deferred compensation, pension or retirement plans, and no pension or retirement benefits are accrued as Corporation or Fund expenses. The following table shows the fees paid to the current directors by the Corporation for the fiscal year ended August 31, 2008.

 

Name

   Aggregate
Compensation
From Each Fund		   Pension or
Retirement
Benefits Accrued as
Part of Each
Fund’s Expenses		   Estimated
Annual
Benefits Upon
Retirement		   Total
Compensation
from Funds
and Fund
Complex Paid
to Directors(1)

Larry D. Armel

   *   $ 0   $ 0   $ 45,000

Benjamin M. Cutler

   *   $ 0   $ 0   $ 45,000

John DeVincentis(2)

  *   $ 0   $ 0   $ 45,000

John A. Lubs

   *   $ 0   $ 0   $ 45,000

James Mitchell

   *   $ 0   $ 0   $ 45,000

Barbara J. Pope

   *   $ 0   $ 0   $ 45,000

 

(1)

The Marshall Funds Complex consists of one open-end registered investment company, the Corporation, consisting of 17 portfolios. Three of the portfolios, the

 

8

 

Marshall Corporate Income Fund, Marshall Core Plus Bond Fund and Marshall Emerging Markets Equity Fund, had not commenced operations as of August 31, 2008.

 

(2) John DeVincentis will retire from the Board effective August 31, 2009.

 

* Each Fund pays a pro rata share of the total compensation received by each independent director.

Beneficial Ownership of Fund Shares by the Directors

The following table sets forth the dollar range of shares beneficially owned in each Fund and in all 17 Funds by each current director as of March 31, 2009. The beneficial ownership is stated using the following ranges: None, $1-$10,000, $10,001-$50,000, $50,001-$100,000, or over $100,000.

 

Name of Director

   

Fund

   

Dollar Range of

Shares Owned in

the Fund*

   

Aggregate Dollar

Range of Shares

Owned in All

Funds

Larry D. Armel

Independent Director

   

Marshall Large-Cap Value Fund

Marshall Mid-Cap Value Fund

Marshall Prime Money Market Fund

   

$50,001-$100,000

$50,001-$100,000

$1-$10,000

    over $100,000

John M. Blaser

Interested Director

   

Marshall International Stock Fund

Marshall Large-Cap Growth Fund

Marshall Large-Cap Value Fund

Marshall Mid-Cap Growth Fund

Marshall Mid-Cap Value Fund

Marshall Prime Money Market Fund

Marshall Short-Intermediate Bond Fund

Marshall Small Cap Growth Fund

Marshall Tax-Free Money Market Fund

   

$50,001-$100,000

$10,001-$50,000

over $100,000

$10,001-$50,000

$10,001-$50,000

$10,001-$50,000

$10,001-$50,000

$10,001-$50,000

over $100,000

    over $100,000

Benjamin M. Cutler

Independent Director

   

Marshall International Stock Fund

Marshall Mid-Cap Value Fund

Marshall Small Cap Growth Fund

   

over $100,000

over $100,000

over $100,000

    over $100,000

John DeVincentis

Independent Director

   

Marshall International Stock Fund

Marshall Prime Money Market Fund

Marshall Short-Intermediate Bond Fund

Marshall Tax-Free Money Market Fund

   

$1-$10,000

over $100,000

$10,001-$50,000

$10,001-$50,000

    over $100,000

Kenneth C. Krei

Interested Director

   

Marshall Intermediate Tax-Free Fund

Marshall Tax-Free Money Market Fund

   

over $100,000

$1-$10,000

    over $100,000

John A. Lubs

Independent Director

   

Marshall Large-Cap Value Fund

Marshall Mid-Cap Growth Fund

Marshall Mid-Cap Value Fund

   

$10,001-$50,000

$1-$10,000

$10,001-$50,000

    $10,001-$50,000

 

9

Name of Director

   

Fund

   

Dollar Range of

Shares Owned in

the Fund*

   

Aggregate Dollar

Range of Shares

Owned in All

Funds

James Mitchell

Independent Director

   

Marshall Mid-Cap Growth Fund

Marshall Mid-Cap Value Fund

Marshall Prime Money Market Fund

Marshall Small Cap Growth Fund

Marshall Tax-Free Money Market Fund

   

over $100,000

over $100,000

$10,001-$50,000

$10,001-$50,000

over $100,000

    over $100,000

Barbara J. Pope

Independent Director

   

Marshall Large-Cap Growth Fund

Marshall Mid-Cap Growth Fund

Marshall Mid-Cap Value Fund

Marshall Prime Money Market Fund

Marshall Small Cap Growth Fund

Marshall Tax-Free Money Market Fund

   

$10,001-$50,000

$10,001-$50,000

$10,001-$50,000

$10,001-$50,000

$1-$10,000

$50,001-$100,000

    over $100,000

 

* Dollar range of shares owned in any Fund that is not identified in this table is “None.”

Required Vote

Directors are elected by the affirmative vote of a plurality of shares present at the annual meeting, either in person or by proxy, and entitled to vote. This means that the seven nominees who receive the largest number of votes will be elected as directors. In the election of directors, votes may be cast in favor or withheld.

Recommendation of the Board

The Board recommends that the shareholders vote FOR each of the nominees.

PROPOSAL 2: MODIFICATION OF EACH FUND’S FUNDAMENTAL INVESTMENT LIMITATION REGARDING LENDING

Background and Reasons for the Proposal

The Securities and Exchange Commission (“SEC”) has granted an order permitting the Funds to participate in the Corporation’s interfund lending program, subject to their investment policies. This program would allow the Funds to lend cash to and borrow cash from each other for temporary purposes. The program is subject to a number of conditions, including the requirement that the interfund loan rate to be charged to the Funds under the program is (i) more favorable to the lending Fund than the rate it could obtain from otherwise investing its cash and (ii) more favorable than the lowest interest rate at which bank short-term loans would be available to the Funds.

Participation in the Corporation’s interfund lending program is anticipated to benefit borrowing Funds by providing cash to such Funds at interest rates lower than those offered by banks on short-term loans and to benefit lending Funds by earning interest on the loans at rates higher than the lending Funds could earn by otherwise

 

10

investing their cash. Any conflicts of interest among the Funds participating in the program should be adequately addressed by the conditions to which the program is subject, as well as the additional procedures designed to ensure the Funds participate in the program on an equitable basis.

The primary purpose of this proposal is to revise each Fund’s fundamental investment limitation to allow that Fund to participate in the Corporation’s interfund lending program in accordance with the SEC order.

The Proposal

The Board has approved, and recommends that shareholders of each Fund approve, a proposal to change each Fund’s fundamental investment limitation regarding lending as shown below.

Current Fundamental Investment Limitation Regarding Lending

Lending Cash or Securities

The Funds will not lend any of their assets except portfolio securities. Except for the International Stock Fund, loans may not exceed one-third of the value of a Fund’s total assets. This shall not prevent a Fund from purchasing or holding U.S. government obligations, money market instruments, variable rate demand notes, bonds, debentures, notes, certificates of indebtedness, or other debt securities, entering into repurchase agreements, or engaging in other transactions where permitted by the Fund’s investment goal, policies, and limitations.

Proposed Fundamental Investment Limitation Regarding Lending

Lending Cash or Securities

The Funds will not lend any of their securities, or make any other loan, in excess of one-third of the value of a Fund’s total assets. This shall not prevent a Fund from purchasing or holding U.S. government obligations, money market instruments, variable rate demand notes, bonds, debentures, notes, certificates of indebtedness, or other debt securities, entering into repurchase agreements, or engaging in other transactions where permitted by the Fund’s investment goal, policies, and limitations.

Required Vote

Approval of the proposal to change each Fund’s fundamental investment limitation regarding lending requires the affirmative vote of a majority of the outstanding voting securities of that Fund. Under the 1940 Act, a “majority of the outstanding voting securities” of the Fund means the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of the Fund, or (2) 67% or more of the

 

11

shares of the Fund present at the meeting, if more than 50% of the outstanding shares of the Fund are represented at the meeting in person or by proxy.

If shareholders of a Fund approve the proposal, the change to that Fund’s investment limitation regarding lending will be implemented as soon as practicable after the Meeting, regardless of whether shareholders of other Funds have approved the proposal for those Funds. If, on the other hand, shareholders of a Fund fail to approve the proposal, that Fund’s investment limitation regarding lending will remain unchanged. Each Fund’s investment limitation regarding lending will remain a fundamental policy that cannot be changed without shareholder approval.

Recommendation of the Board

The Board recommends that shareholders of each Fund vote FOR the proposed change to their Fund’s fundamental investment limitation regarding lending.

PROPOSAL 3: CONVERSION OF EACH FUND’S INVESTMENT OBJECTIVE FROM FUNDAMENTAL TO NON-FUNDAMENTAL

Background and Reasons for the Proposal

The proposed conversion of each Fund’s fundamental investment objective to a non-fundamental investment objective would provide the Board with the flexibility permitted under current law to make timely changes to a Fund’s investment objective that it deems to be in the best interests of that Fund in response to changes in market conditions or other circumstances without the delay and expense of obtaining shareholder approval. Each Fund’s investment objective is as follows:

 

  •  

Marshall Government Money Market Fund: to provide current income consistent with stability of principal.

 

  •  

Marshall Tax-Free Money Market Fund: to provide current income exempt from federal income tax consistent with stability of principal.

 

  •  

Marshall Prime Money Market Fund: to provide current income consistent with stability of principal.

 

  •  

Marshall Short-Term Income Fund: to maximize total return consistent with current income.

 

  •  

Marshall Short-Intermediate Bond Fund: to maximize total return consistent with current income.

 

  •  

Marshall Intermediate Tax-Free Fund: to provide a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.

 

  •  

Marshall Government Income Fund: to provide current income.

 

12

  •  

Marshall Corporate Income Fund: to maximize total return consistent with current income.

 

  •  

Marshall Aggregate Bond Fund: to maximize total return consistent with current income.

 

  •  

Marshall Core Plus Bond Fund: to maximize total return consistent with current income.

 

  •  

Marshall Large-Cap Value Fund: to provide capital appreciation and above-average dividend income.

 

  •  

Marshall Large-Cap Growth Fund: to provide capital appreciation.

 

  •  

Marshall Mid-Cap Value Fund: to provide capital appreciation.

 

  •  

Marshall Mid-Cap Growth Fund: to provide capital appreciation.

 

  •  

Marshall Small-Cap Growth Fund: to provide capital appreciation.

 

  •  

Marshall International Stock Fund: to provide capital appreciation.

 

  •  

Marshall Emerging Markets Equity Fund: to provide capital appreciation.

The Board did not approve, and is not recommending, any changes to the Funds’ investment objectives other than making them non-fundamental. The proposed conversion will not affect the investment process or the manner in which the Funds are managed. Each Fund’s current investment strategies and related risks will not change and each Fund will continue to be managed in accordance with its prospectus and statement of additional information.

The Proposal

The Board has approved, and recommends that shareholders of each Fund approve, a proposal to convert each Fund’s investment objective from fundamental to non-fundamental.

If shareholders approve the conversion of the Funds’ investment objectives to non-fundamental, the Board, going forward, may change the Funds’ investment objectives without shareholder approval. The Board currently does not intend to change any Fund’s investment objective pursuant to this authority.

Required Vote

Approval of the proposal to change the investment objective of each Fund requires the affirmative vote of a majority of the outstanding voting securities of that Fund. Under the 1940 Act, a “majority of the outstanding voting securities” of the Fund means the affirmative vote of the lesser of (1) more than 50% of the outstanding shares of the Fund, or (2) 67% or more of the shares of the Fund present at the meeting, if more than 50% of the outstanding shares of the Fund are represented at the meeting in person or by proxy.

 

13

If shareholders of a Fund approve the proposal, that Fund’s investment objective will become non-fundamental as soon as practicable after the Meeting, regardless of whether shareholders of other Funds have approved the proposal for those Funds. If, on the other hand, shareholders of a Fund fail to approve the proposal, that Fund’s investment objective will continue to be fundamental and may not be changed without shareholder approval.

Recommendation of the Board

The Board recommends that shareholders of each Fund vote FOR the proposed change to their Fund’s investment objective.

OTHER MATTERS

The Board knows of no other matters that may come before the annual meeting, other than the proposals as set forth above. If any other matter properly comes before the annual meeting, the persons named as proxies will vote on the same in their discretion.

OTHER INFORMATION

Shares Outstanding

As of the record date the number of shares that were entitled to vote at the annual meeting was as follows:

 

     Number of Shares
     Class Y    Class A    Class I

Marshall Government Money Market Fund

    614,283,903.18    —      427,605,652.62

Marshall Tax-Free Money Market Fund

    375,049,185.58    —      544,149,769.31

Marshall Prime Money Market Fund

    2,155,562,024.29    119,812,637.05    3,164,847,396.71

Marshall Short-Term Income Fund

    3,119,142.56    203,238.61    6,743,557.57

Marshall Short-Intermediate Bond Fund

    6,805,440.95    535,829.49    13,577,632.56

Marshall Intermediate Tax-Free Fund

    11,586,294.86    —      —  

Marshall Government Income Fund

    30,916,060.19    477,065.21    20,743,866.22

Marshall Corporate Income Fund

    256,588.61    78,070.97    1,317,692.19

 

14

     Number of Shares
     Class Y    Class A    Class I

Marshall Aggregate Bond Fund

    7,285,331.30    141,538.83    15,138,268.10

Marshall Core Plus Bond Fund

    1,839,191.16    —      3,014,122.14

Marshall Large-Cap Value Fund

    8,579,519.17    705,482.38    12,148,210.17

Marshall Large-Cap Growth Fund

    5,694,634.02    567,042.01    10,676,535.74

Marshall Mid-Cap Value Fund

    12,830,265.68    664,618.61    9,565,604.67

Marshall Mid-Cap Growth Fund

    4,239,309.97    260,754.28    10,652,128.62

Marshall Small-Cap Growth Fund

    8,741,105.47    1,061,078.88    10,304,054.20

Marshall International Stock Fund

    4,097,340.13    375,491.30    11,979,389.70

Marshall Emerging Markets Equity Fund

    430,265.25    3,952.85    2,165,511.27

Total Shares Entitled to Vote

    3,251,315,602.39    124,886,800.49    4,264,629,391.77

Share Ownership Information

As of March 31, 2009, the officers and directors of the Corporation, as a group, owned less than 1% of each Fund’s outstanding shares.

Unless otherwise noted below, as of June 12, 2009, no persons owned of record or are known by the Corporation to own of record or beneficially more than 5% of any class of a Fund’s outstanding shares.

 

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

Marshall Government Money Market Fund   I   

Maril & Co*

M&I Trust Company, NA

11270 W Park Pl Ste 400

Milwaukee WI 53224-3638

    201,708,979.08    47%
  I   

Maril & Co*

FBO Washington Trust

11270 West Park Place Ste 400

Milwaukee WI 53224-3638

    88,710,645.79    21%

 

15

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

  I   

M&I Marshall & Ilsley Bank*

c/o M&I Support Services

PO Box 1119

Appleton WI 54912-1119

    40,894,195.84    10%
  I   

Maril & Co*

FBO Members Trust Company

11270 W Park Place Ste 400

Milwaukee WI 53224-3638

    26,450,555.92    6%
  Y   

Maril & Co*

M&I Trust Company, NA

11270 W Park Place St 400

Milwaukee WI 53224-3638

    171,058,724.97    28%
  Y   

M&I Custody of Nevada Inc Cust

FBO Ozaukee Portfolio

3993 Howard Hughes Pkwy Ste 100

Las Vegas NV 89169-5967

    57,970,297.88    9%
  Y   

Maril & Co*

FBO Finemark National

11270 W Park Place Ste 400

Milwaukee WI 53224-3638

    48,049,184.25    8%
  Y   

M&I Custody of Nevada Inc Cust

FBO Home Investments Inc

3993 Howard Hughes Pkwy Ste 100

Las Vegas NV 89169-5967

    46,559,214.63    8%
  Y   

M&I Marshall & Ilsley Bank*

c/o M&I Support Services

PO Box 1119

Appleton WI 54912-1119

    45,316,676.67    7%
Marshall Tax-Free Money Market Fund   I   

Maril & Co*

11270 W Park Place Ste 400

Milwaukee WI 53224-3638

    480,088,492.31    88%
  I   

LaSalle Global Trust Service

Cust for Cash

135 S. LaSalle St

Chicago IL 60603

    45,500,000.00    8%
  Y   

Maril & Co*

11270 W Park Place Ste 400

Milwaukee WI 53224-3638

    131,351,747.67    35%

 

16

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

  Y   

Pershing LLC*

As Agent for its Brokerage

Customer Services

1 Pershing Plz

Jersey City NJ 07399-0002

    98,270,320.05    26%
  Y   

Maril & Co*

FBO Finemark National

11270 W Park Pl Ste 400

Milwaukee WI 53224-3638

    26,847,746.65    7%
  Y   

M&I Marshall & Ilsley Bank*

c/o M&I Support Services

PO Box 1119

Appleton WI 54912-1119

    24,786,372.45    7%
Marshall Prime Money Market Fund   A   

Pershing LLC*

As Agent for its Brokerage Cust

1 Pershing Plz

Jersey City NJ 07399-0002

    97,752,191.20    82%
  I   

Maril & Co*

M&I Trust Company, NA

11270 West Park Place Ste 400

Milwaukee WI 53224-3638

    1,874,009,145.29    59%
  I   

M&I Marshall & Ilsley Bank*

c/o M&I Support Services

PO Box 1119

Appleton WI 54912-1119

    532,251,062.44    17%
  I   

Mellon Bank

One Mellon Center 4th Floor

Pittsburgh PA 15258-0001

    277,732,055.28    9%
  I   

Aurora Health Care Inc.

PO Box 343910

Milwaukee WI 53234-3910

    191,400,000.00    6%
  Y   

Maril & Co*

11270 W Park Place Ste 400

Milwaukee, WI 53224-3638

    1,443,260,151.70    67%
  Y   

M&I Marshall & Ilsley Bank*

c/o M&I Support Services

PO Box 1119

Appleton WI 54912-1119

    190,187,216.52    9%
Marshall Short-Term Income Fund   A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    20,886.47    10%

 

17

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    3,892,241.12    58%
  I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    2,528,532.05    38%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    1,564,733.61    50%
  Y   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400-PPW-08-WM

Milwaukee, WI 53224-3638

    488,478.47    16%
  Y   

NFS LLC FEBO

Marshall & Ilsley Trust Co NA

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-3638

    278,898.16    9%
Marshall Short-Intermediate Bond Fund   A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    38,655.79    7%
  I   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2628

    6,294,260.80    46%
  I   

Vallee & Co*

Marshall & Ilsley Trust Co.

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    5,210,421.79    38%

 

18

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

  I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3623

    1,439,578.64    11%
  Y   

NFS LLC FEBO*

Marshall & Ilsley Trust Co.

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-3623

    1,836,184.49    27%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    595,419.68    9%
  Y   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    549,812.05    8%
Marshall Intermediate Tax-Free Fund   Y   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    7,367,665.17    64%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    1,592,401.99    14%
  Y   

Maril & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    646,214.84    6%
Marshall Government Income Fund   A   

Milwaukee Audubon Society Inc

1111 E Brown Deer Rd

Milwaukee WI 53217-1904

    35,198.90    7%

 

19

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

  I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    10,939,874.62    53%
  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    8,141,337.73    39%
  I   

Maril & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    1,392,453.59    7%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    8,350,028.94    27%
Marshall Corporate Income Fund   A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    7,647.06    10%
  A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    6,763.29    9%
  A   

Claire G or Charlotte E Anker

Appleton WI 54914-9681

   4,711.05    6%
  A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    4,608.69    6%
  A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    4,480.29    6%
  I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    1,286,654.20    98%

 

20

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    204,450.16    80%
  Y   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    23,846.94    9%
Marshall Aggregate Bond Fund   A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    10,908.04    8%
  A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    9,351.68    7%
  A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    8,854.05    6%
  A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    7,142.86    5%
  A   

Marshall & Ilsley Trust Co

IRA Michael E Schwittau

West Bend WI 53090-8454

    7,081.05    5%
  I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    11,065,584.04    73%
  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    3,978,711.05    26%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    7,035,960.56    97%

 

21

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

Marshall Core Plus Bond Fund   I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    2,737,327.36    91%
  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    246,184.26    8%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    1,827,820.21    99%
Marshall Emerging Markets Equity Fund   A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    790.17    20%
  A   

Marshall & Ilsley Trust Co NA

IRA William Clark

Oconomowoc WI 53066-2609

    563.61    14%
  A   

Marshall & Ilsley Trust Co NA

IRA Jason Forgette

Green Bay WI 54313-7280

    442.14    11%
  A   

Marshall & Ilsley Trust Co NA

IRA Leslie F Chesney

Colgate WI 53017-9393

    348.13    9%
  A   

Marshall & Ilsley Trust Co NA

IRA Dennis M Chesney

Colgate WI 53017-9393

    348.13    9%
  A   

Marshall & Ilsley Trust Co NA

IRA Mark G Venzon

Delavan WI 53115-0341

    338.56    9%
  A   

Joseph Pink

Madison WI 53714-2537

    309.60    8%
  I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    1,157,724.80    53%

 

22

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

  I   

Industricorp and Co

312 Central Ave SE Ste 508

Minneapolis MN 55414-1166

    886,318.19    41%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    415,699.71    97%
Marshall International Stock Fund   A   

Pershing LLC*

P O Box 2052

Jersey City NJ 07303-2052

    49,174.81    13%
  I   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2628

    5,773,381.79    48%
  I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    4,969,542.94    41%
  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    621,932.48    5%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    2,173,307.33    53%
  Y   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    1,194,703.76    29%

 

23

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

Marshall Small-Cap Growth Fund   A   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    673,598.92    63%
  I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    5,674,674.24    55%
  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    3,172,645.08    31%
  I   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    1,138,926.96    11%
  Y   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    2,875,196.15    33%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    2,566,335.49    29%
  Y   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    837,063.64    10%
  Y   

NFS LLC FEBO

FIIOC Agent

Qualified Employee Plans FINOP

100 Magellan Way #KW1C

Covington KY 41015-1987

    464,756.42    5%

 

24

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

Marshall Mid-Cap Growth Fund   I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    4,461,868.41    42%
  I   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    4,302,117.42    40%
  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    1,731,316.31    16%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    2,312,017.21    55%
  Y   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    1,009,411.61    24%
Marshall Mid-Cap Value Fund   I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    5,777,008.59    60%
  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    2,177,245.54    23%
  I   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    1,343,158.12    14%

 

25

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

  Y   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    3,684,500.70    29%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    3,470,980.99    27%
  Y   

Charles Schwab & Co Inc

Reinvest Account

Attn: Mutual Fund Dept

101 Montgomery Street

San Francisco CA 94104-4151

    1,376,290.55    11%
  Y   

Hartford Life Insurance Co

Attn UIT Operations

PO Box 2999

Hartford CT 06104-2999

    658,608.20    5%
Marshall Large-Cap Growth Fund   I   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    7,961,314.78    75%
  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    1,767,608.96    17%
  I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    670,536.18    6%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    2,967,828.87    52%

 

26

Fund Name

  

Class

   

Name and Address

    Number of
Shares		   

Percent
of Class

Marshall Large-Cap Value Fund   I   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    5,001,583.98    41%
  I   

Vallee & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    3,879,566.49    32%
  I   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    2,677,416.73    22%
  Y   

Mitra & Co*

Marshall & Ilsley Trust Oper

11270 W Park Place

Suite 400- PPW-08-WM

Milwaukee WI 53224-3638

    4,908,411.71    57%
  Y   

NFS LLC FEBO*

Marshall & Ilsley Trust Co

FBO Bank 98 Daily

Recordkeeping

11270 W Park Place Ste 400

Milwaukee WI 53224-2638

    2,239,890.89    26%

 

* The Corporation believes that this entity, the holder of record of these shares, is not the beneficial owner of such shares.

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP (“PwC”) has been selected as the independent registered public accounting firm for the Funds. In its capacity as the independent registered public accounting firm, PwC audits each Fund’s financial statements and reviews each Fund’s federal and state annual income tax returns. PwC has confirmed that it is an independent registered public accounting firm and has advised the Corporation that it does not have any direct or material indirect financial interest in any Fund. Representatives of PwC are not expected to be present at the annual meeting.

 

27

PwC Fees and Services

Aggregate fees billed to the Corporation for professional services rendered by PwC during the fiscal years ended August 31, 2008 and 2007 were as follows:

 

Type of Fee

    2008    2007

Audit

    $ 261,000    $ 253,500

Audit-Related

    $ 49,500    $ 48,000

Tax

    $ 50,500    $ 49,000

All Other

      None      None

In the above table, “audit” fees are fees billed for professional services for the audit of each Fund’s annual financial statements or for services that are normally provided by PwC in connection with statutory and regulatory engagements. “Tax” fees are fees billed for professional services related to tax compliance, tax planning and tax advice.

During the last two fiscal years, there were no non-audit services rendered by PwC to the Adviser or any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Corporation.

Audit Committee Responsibilities Regarding PwC’s Services

The Audit Committee has adopted pre-approval policies and procedures that require it to pre-approve all audit and non-audit services performed for the Funds by its independent registered public accounting firm. The Audit Committee is also required to pre-approve certain non-audit services performed by the Funds’ independent registered public accounting firm on behalf of the Adviser and certain of the Adviser’s affiliates that provide services directly related to the operations and financial reporting of the Corporation. In accordance with its pre-approval policies and procedures, the Audit Committee pre-approved all audit and tax services provided by PwC during fiscal years ended August 31, 2008 and 2007.

Proxies

Whether you expect to be personally present at the annual meeting or not, we encourage you to vote by proxy. You can do this in one of three ways. You may complete, date, sign and return the accompanying proxy card using the enclosed postage prepaid envelope; you may vote by calling 1-800-690-6903; or you may vote by Internet in accordance with the instructions noted on the enclosed proxy card. Your shares will be voted as you instruct. If no choice is indicated, your shares will be voted FOR the election of each director nominee and FOR each other proposal and in the discretion of the persons named as proxies on such other matters that may properly come before the annual meeting. Any shareholder giving a proxy may revoke it before it is exercised at the annual meeting by submitting to the Secretary of the Corporation a

 

28

written notice of revocation or a subsequently signed proxy card, or by attending the annual meeting and voting in person. A prior proxy can also be revoked through the website or toll-free telephone number listed on the enclosed proxy card. If not so revoked, the shares represented by the proxy will be cast at the annual meeting and any adjournments thereof. Attendance by a shareholder at the annual meeting does not, in itself, revoke a proxy.

Quorum

A quorum for the annual meeting occurs if one-third of the shares of common stock of a Fund or the Corporation, as applicable, entitled to vote at the meeting are present in person or by proxy. Abstentions and broker non-votes (i.e., proxies from brokers or nominees indicating that they have not received instructions from the beneficial owners to vote shares as to a matter with respect to which the brokers or nominees do not have discretionary power to vote) will be treated as shares present for purposes of determining the quorum. Abstentions and broker non-votes will not, however, be counted as voting on any proposal as to which the abstention or broker non-vote applies. In the event that a quorum is not present at the meeting, or in the event that a quorum is present but sufficient votes to approve the proposal are not received, the persons named as proxies may propose one or more adjournments of the meeting to a later date to permit further solicitation of votes. Any such adjournment will require the affirmative vote of a majority of shares voting on the adjournment. A shareholder vote may be taken for a proposal in this proxy statement prior to any adjournment if sufficient votes have been received for approval. When voting on a proposed adjournment, the persons named as proxies will vote all proxies that they are entitled to vote FOR approval of any proposal in favor of adjournment and will vote all proxies required to be voted AGAINST any such proposal against adjournment.

Method and Cost of Proxy Solicitation

To the extent proxies are solicited, they will be solicited by the Corporation primarily by mail. The solicitation may also include telephone, facsimile, Internet or oral communication by certain officers or employees of the Corporation, the Adviser, M&I Trust (the Funds’ administrator and custodian) or Boston Financial Data Services, Inc. (the Funds’ transfer agent) who will not be paid for these services. Any telephonic solicitations will follow procedures designed to ensure accuracy and prevent fraud, including requiring identifying shareholder information and recording the shareholder’s instruction. The Corporation will bear the costs of the annual meeting, including legal costs and the costs of the solicitation of proxies, if any. Printing and mailing costs will be allocated to each of the Funds based on the number of accounts for which the printing and mailing is done with respect to each Fund. Other costs of the annual meeting will be allocated to each of the Funds according to such Fund’s asset size. The Corporation will also reimburse brokers and other nominees for their reasonable expenses in communicating with persons for whom they hold shares of the Corporation.

 

29

Copies of the Funds’ most recent annual and semi-annual reports are available without charge upon request to the Funds at 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202, on the Funds’ website at www.marshallfunds.com, or by calling Marshall Funds Investor Services, toll-free, at 1-800-236-FUND.

SERVICE PROVIDERS

M&I Investment Management Corp., 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202, serves as investment adviser to each Fund. Marshall & Ilsley Trust Company N.A., 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202, an affiliate of the Adviser, serves as custodian (except for Marshall International Stock Fund and Marshall Emerging Markets Equity Fund) and administrator for the Funds. Acadian Asset Management, LLC, One Post Office Square, Boston, Massachusetts 02109 and Trilogy Global Advisors, LLC, 1114 Avenue of the Americas, 28th Floor, New York, New York 10036, serve as sub-advisers to the Marshall International Stock Fund. Trilogy Global Advisors, LLC also serves as sub-adviser to the Marshall Emerging Markets Equity Fund. Taplin, Canida & Habacht, LLC, 1001 Brickell Bay Drive, Suite 2100, Miami, Florida 33131, an affiliate of the Adviser, serves as sub-adviser to the Marshall Corporate Income Fund and Marshall Core Plus Bond Fund. UMB Fund Services, Inc., 803 West Michigan Street, Milwaukee, Wisconsin 53233, serves as sub-administrator and portfolio accounting services agent (except for Marshall International Stock Fund and Marshall Emerging Markets Equity Fund) for the Funds. The custodian and portfolio accounting services agent for Marshall International Stock Fund and Marshall Emerging Markets Equity Fund is State Street Bank & Trust Company, 200 Clarendon Street, Boston, Massachusetts 02116. M&I Distributors, LLC, 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202, an affiliate of the Adviser, serves as the distributor to the Funds. The Funds’ transfer agent and dividend disbursing agent is Boston Financial Data Services, Inc., 2 Heritage Drive, Quincy, Massachusetts 02171. The shareholder servicing agent to the Funds is Marshall Investor Services, a division of Marshall & Ilsley Trust Company N.A., P.O. Box 1348, Milwaukee, Wisconsin 53201-1348. Legal counsel to the Funds is Vedder Price P.C., 222 North LaSalle Street, Chicago, IL 60601. The independent registered public accounting firm to the Funds is PricewaterhouseCoopers LLP, One North Wacker, Chicago, IL 60606.

FUTURE MEETINGS; SHAREHOLDER PROPOSALS

The Corporation is generally not required to hold annual meetings of shareholders and the Corporation generally does not hold a meeting of shareholders in any year unless certain specified shareholder actions such as election of directors or approval of a new advisory agreement are required to be taken under the 1940 Act or the Corporation’s Articles of Incorporation and By-Laws. By observing this policy, the Corporation seeks to avoid the expenses customarily incurred in the preparation of proxy material and the holding of shareholder meetings.

 

30

A shareholder desiring to submit a proposal intended to be presented at any meeting of shareholders of the Corporation hereafter called should send the proposal to the Secretary of the Corporation at the Corporation’s principal offices. The mere submission of a proposal by a shareholder does not guarantee that such proposal will be included in the proxy statement because certain rules under the Federal securities laws must be complied with before inclusion of the proposal is required. Also, the submission does not mean that the proposal will be presented at the meeting. For a shareholder proposal to be considered at a shareholder meeting, it must be a proper matter for consideration under Wisconsin law.

 

By Order of the Board of Directors,
 

Angela L. Pingel

Secretary

Milwaukee, Wisconsin

July 9, 2009

 

31

EXHIBIT A

MARSHALL FUNDS, INC.

NOMINATING COMMITTEE CHARTER

Effective as of October 25, 2004

 

I. Purpose

The purpose of the Nominating Committee (the “Committee”) of the Board of Directors (the “Board”) of Marshall Funds, Inc. (the “Company”) is to provide assistance to the Board in the selection of candidates for election to the Board, including:

 

  •  

Identifying, as necessary, new candidates who are qualified to serve as directors of the Company. A copy of the initial set of guidelines for selecting Board candidates adopted by the Board of Directors is attached hereto as Appendix A.

 

  •  

Recommending to the Board the candidates for election to the Board.

 

II. Composition

The Committee shall be composed entirely of Directors who are not “interested persons” of the Company within the meaning of the Investment Company Act of 1940, as amended (“Independent Directors”).

Each Committee member will complete a director and officer questionnaire on an annual basis.

Each Committee member shall be appointed by the Board and shall serve until his or her successor is appointed, until he or she resigns from the Committee, until he or she is removed from the Committee or until his or her service on the Board terminates.

 

III. Committee Meetings

The Committee will meet as often as it deems necessary. The Committee may request that any officer or employee of the Company or its investment adviser, the Company’s counsel or others attend a meeting of the Committee.

The Board may appoint a Chairperson of the Committee. If a Chairperson is appointed, he or she will preside at all Committee meetings at which he or she is present and have such other duties and powers as may be determined by the Board. The Chairperson will serve until he or she resigns, is removed by the Board, or is replaced by a duly appointed successor.

 

A-1

At any Committee meeting, a majority of the Committee members then in office constitutes a quorum. Any action of the Committee requires the vote of a majority of the Committee members then in attendance (provided a quorum is present).

The Committee will report periodically to the Board regarding the Committee’s activities.

 

IV. Responsibilities, Duties and Powers

The responsibilities, duties and powers of the Committee are as follows:

 

  1. Periodically review the guidelines for selecting candidates for election to the Board and recommend to the Board for adoption amendments to such guidelines that the Committee deems necessary or appropriate.

 

  2. Identify and evaluate, as necessary, new candidates who are qualified for Board membership.

 

  3. Evaluate the independence of proposed Independent Directors.

 

  4. Nominate proposed candidates for election to the Board.

 

  5. Review and ensure the continuing independence of the Independent Directors.

 

  6. Review and reassess the adequacy of this charter periodically and recommend any proposed changes to the Board for approval. Both a majority of the Company’s directors then in office and a majority of the Independent Directors then in office must approve any material amendments to this charter.

 

  7. Retain such experts, including outside counsel, as it deems appropriate.

 

A-2

APPENDIX A

GUIDELINES FOR SELECTING BOARD CANDIDATES

In considering possible candidates for election as a director, the Nominating Committee should consider the following guidelines.

The Board of Directors should be composed of:

 

  •  

Directors who will bring to the Board a variety of experiences and backgrounds.

 

  •  

Directors who have substantial business experience and/or financial expertise.

 

  •  

Directors who may have substantial experience outside the business community – in academia, for example.

 

  •  

Directors who will represent the best interests of the shareholders as a whole rather than special interest groups or constituencies.

Each director should:

 

  •  

Be an individual of the highest character and integrity and have an inquiring mind, vision and the ability to work well with others.

 

  •  

Be free of any conflict of interest which would violate any applicable law or regulation or interfere with the fiduciary duties of a director.

 

  •  

Possess relevant experience which would be of value to the Company in the performance of the duties of a director.

 

  •  

Have sufficient time available to devote to the affairs of the Company in order to carry out the responsibilities of a director.

PROXY TABULATOR

P.O. BOX 9112

FARMINGDALE, NY 11735

   

To vote by Internet

 

1) Read the Proxy Statement and have the proxy card below at hand.

2) Go to website www.proxyvote.com

3) Follow the instructions provided on the website.

 

To vote by Telephone

 

1) Read the Proxy Statement and have the proxy card below at hand.

2) Call 1-800-690-6903

3) Follow the instructions.

 

To vote by Mail

 

1) Read the Proxy Statement.

2) Check the appropriate boxes on the proxy card below.

3) Sign and date the proxy card.

4) Return the proxy card in the envelope provided.

[Control Number]

TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: [X]

 

M15789-S47453            KEEP THIS PORTION FOR YOUR RECORDS

DETACH AND RETURN THIS PORTION ONLY

THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.

 

MARSHALL FUNDS, INC.

[Fund Name] (the “Fund”)

                    
                       
   For

All

    Withhold

All

    For All

Except

   To withhold authority to vote for any individual nominee(s), mark “For All Except” and write the name(s) of the nominee(s) on the line below.        

1. To elect a Board of Directors consisting of the following:

    ¨    ¨    ¨          
                  
                  

    01)  Larry D. Armel

    02)  John M. Blaser

    03)  Benjamin M. Cutler

    04)  Kenneth C. Krei

  

05)   John A. Lubs

06)   James Mitchell

07)   Barbara J. Pope

                 
   For   

Against

   

Abstain

2. To modify the Fund’s fundamental investment limitation regarding lending.

    ¨   

¨

   

¨

3. To convert the Fund’s investment objective from fundamental to non-fundamental.

    ¨   

¨

   

¨

To vote and otherwise represent the undersigned shareholder(s) on any other matter that may properly come before the Meeting or any adjournment or postponement thereof in the discretion of the Proxy holder.         

WE NEED YOUR VOTE BEFORE AUGUST 5, 2009

 

Your vote is important. If you are unable to attend the Meeting in person, we urge you to authorize the proxies to cast your votes, which is commonly known as proxy voting. You can do this in one of three ways: by (1) completing, signing, dating and promptly returning this proxy card using the enclosed postage prepaid envelope, (2) calling a toll-free telephone number at 1-800-690-6903 or (3) voting on a website at www.proxyvote.com. Your prompt voting by proxy will help assure a quorum at the Meeting. Voting by proxy will not prevent you from personally casting your votes at the Meeting. You may revoke your proxy before it is exercised at the Meeting by submitting to the Secretary of the Corporation a written notice of revocation or a subsequently signed proxy card, or by attending the Meeting and voting in person. A prior proxy can also be revoked through the website or toll-free telephone number noted herein. NOTE: Please sign exactly as your name appears on the records of the Corporation and date. If joint owners, each holder should sign this Proxy. When signing as attorney, executor, administrator, trustee, guardian or officer of a corporation or other entity or in another representative capacity, please give your full title. If a corporation, please sign in full corporate name by the President or other authorized officer. If a partnership, please sign in partnership name by an authorized person.

 

       
                         
   Signature [PLEASE SIGN WITHIN BOX]    Date       Signature (Joint Owners)    Date   

 

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:

The Proxy Statement is available at www.proxyvote.com.

 

 

 

MARSHALL FUNDS, INC.

PROXY FOR ANNUAL MEETING OF SHAREHOLDERS

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

The undersigned shareholder of the Marshall Fund referenced on the reverse of this card (the “Fund”) of Marshall Funds, Inc., a Wisconsin corporation (the “Corporation”), hereby appoints John M. Blaser and Angela L. Pingel, or either of them, with full power of substitution, as proxies for the undersigned, to represent and cast on behalf of the undersigned all votes that the undersigned is entitled to cast at the Annual Meeting of Shareholders of the Corporation (the “Meeting”) to be held at 111 East Kilbourn Avenue, Suite 200, Milwaukee, Wisconsin 53202 on August 5, 2009, at 8:00 a.m., local time, and any adjournment or postponement thereof. The undersigned hereby acknowledges receipt of the Notice of the Annual Meeting of Shareholders and of the Proxy Statement and revokes any proxy heretofore given with respect to the Meeting.

The votes entitled to be cast by the undersigned will be cast as instructed on the reverse. If this Proxy is executed but no instruction is given, the votes entitled to be cast by the undersigned will be cast “FOR” each of the nominees for director and “FOR” all other proposals as described in the Proxy Statement and in the discretion of the Proxy holder on any other matter that may properly come before the Meeting or any adjournment or postponement thereof.