The MP63 (DRIPX) Fact Sheet
As of September 30, 2018
The MP63 (DRIPX) is a diversified mutual fund that allows individual investors to put money in a wide range of companies that offer Dividend Reinvestment Plans, in a simple but well diversified, low-cost, low-beta, low-turnover portfolio of dividend paying stocks, carefully selected by experienced managers.
Portfolio and Strategy:
The fund focuses on high quality companies (in a wide range of industries) with strong brands and competitive advantages, with long histories of paying and increasing dividends, that also have potential to continue paying and increasing them in the future. MP63 is the only mutual fund focused in companies that offer Dividend Reinvestment Plans to individual investors, and it is managed by two experts on the field of DRIPs, each with more than 20 years of experience.
The process of selection pays special attention to defensive stocks (companies with products and services we all need, regardless of the economic cycles). These components are carefully selected and, in general are equally represented.
In a semi-passive approach, the fund invests in these companies for a long or very long term, and reinvests the dividends in the companies that pay them, thus benefitting from market volatility by following a dollar-cost averaging approach—buying fewer shares at high prices and more shares when the market price is lower.
The annual turnover ratio is about 5%, which is relatively low compared with funds in its category.
The two Fund managers invest their own money in the fund.
By requiring no minimum initial investment and accepting subsequent investments of any amount--regardless of how small--the fund facilitates the use of dollar-cost averaging by small investors who wish to acquire fund shares over a long period of time.
The fund discourages trading by imposing a redemption fee on shares that are held for less than six months.
Costs and Fees:
The fund has a no-load structure, so it is available directly to investors, with no brokers or commissions.
The Expense Ratio is competitive compared to its category. According to Morningstar®, the average Expense Ratio of mutual funds in the Large-Cap Value category is 1.03%, while the total Expense Ratio of DRIPX is 0.75% (as of September 30th, 2018).
The fund doesn’t charge a 12b-1 fee (a fee associated with promotion or advertising), initial or deferred fees.
Small and Beautiful:
Currently (as of September 30th, 2018) DRIPX is part of the group of 59 small funds defined by Morningstar as “Small and Beautiful”. The funds in that list have in common:
- They manage less than $500M in assets
- Have a distinct portfolio
- Have an expense ratio below 1%
- A minimum initial purchase less than $10,000
- 5 years returns in the top 50% of the category
- Manager tenure longer than 5 years
- Less than 33% of the portfolio in cash
Solid cumulative returns compared to its category:
As of September 30th, 2018, DRIPX has a 4-star rating from Morningstar® and the Gold medal, which is their highest analyst rating for mutual funds.
The Morningstar Rating for mutual funds methodology rates funds based on a Morningstar Risk-Adjusted Return measure, which also accounts for the effects of all sales charges, loads, or redemption fees. The Morningstar rating shown above was calculated, based on the 10-year period ending on September 30th, 2018. Morningstar large-cap value category of mutual funds includes 1,230 funds.
As of September 30th, 2018, this is how the fund’s cumulative returns compare to its category (Large Cap Value funds) since the fund’s inception in 1999: DRIPX, 254.49%. Large Cap Value Category, 223.14%.
During the past 15 years: DRIPX, 254.64%. Category, 213.09%
During the past 10 years: DRIPX, 176.58%. Category, 155.75%.
During the past 5 years: DRIPX, 71.77%. Category, 59.69%.
During the past 3 years: DRIPX, 54.91%. Category, 48.11%.
During the past 12 months: DRIPX, 13.81%. Category, 10.84%.
These are trailing returns, which are returns that DRIPX and the Category have achieved over the specified time including both capital gains and dividends.
The comparison in a chart:
The following chart compares cumulative returns, as of September 30th, 2018 (including dividends and capital gains), since the fund inception in March 1st, 1999. The comparison includes:
1: The fund (MP 63 Fund, DRIPX) cumulative returns (blue line): 254.49%
2: The fund category (large cap value) cumulative returns (orange line): 223.14%
3: The S&P 500® index cumulative returns (green line): 241.89%
Source: Morningstar (as of September 30, 2018)
Any performance data quoted represents past performance. Past performance is not indicative of future returns. No representation or warranty is made that any returns indicated will be achieved.
Volatility and Investment Risks:
DRIPX’s 3-year trailing Beta is 0.85 (vs. the S&P 500® Index), so the fund is 15% less volatile than the S&P Index®.
(Note: Beta is a measure of the volatility, or systematic risk, of a mutual fund, a security or a portfolio in comparison to the market as a whole.)
This means that a hypothetical investment of $10,000 in the fund, declined by $3,110 during the year 2008 while the category declined by $3,779 during the same period.
Best year (since inception): 2013: 32.57%. Best year for category since fund inception 2013, 31.50%.
Biggest decline in value (from peak to trough) (Oct 2007 – March 2009): 52.8%. Category, Oct 2007 – March 2009: 54.2%.
This means that a hypothetical investment of $10,000 in the fund, declined by $5,280 during the period of time from October 2007 to March 2009, while the category declined by $5,420.
Number of years down since inception: 4 (2001, 2002, 2008 and 2015)
Number of years up (since inception): 14 (2000, 2003, 2004, 2005, 2006, 2007, 2009, 2010, 2011, 2012, 2013, 2014, 2016 and 2017).
You could lose money investing in the Fund. When you sell Fund shares, they may be worth less than what you paid for them because the value of Fund investments vary from day-to-day,
Risks of Investing in Common Stocks
Individual companies may not perform as anticipated, stock markets may experience periods of turbulence and instability, and domestic and global economies are subject to periods of decline and cyclical change.
Large-Size Company Risks
Larger companies may be unable to respond quickly to new competitive challenges and may be unable to attain the high growth rates of successful, smaller companies.
Mid-Size Company Risks
Medium-sized companies may be more volatile because they may not have the management experience, financial resources, product diversification and competitive strengths of larger companies.
Focused Portfolio Risks
Any negative changes inheret to companies that offer dividend reinvestment plans might result in a greater negative impact to the Fund than a fund that holds a larger array of securities.
This is how DRIPX has increased its dividends consistently since its inception in 1999:
06 cents / share in 1999
08 cents / share in 2000
06 cents / share in 2001
07 cents / share in 2002
07 cents / share in 2003
09 cents / share in 2004
13 cents / share in 2005
17 cents / share in 2006
19 cents / share in 2007
21 cents / share in 2008
22 cents / share in 2009
20 cents / share in 2010
24 cents / share in 2011
32 cents / share in 2012
27 cents / share in 2013
29 cents / share in 2014
34 cents / share in 2015
38 cents / share in 2016
36 cents / share in 2017
Investing in the Fund:
The fund is available to direct individual investors, with no required minimum initial investment. There also is no requirement to invest a certain minimum amount for subsequent investments. The fund offers an optional Automatic Investment Plan.
The fund’s Website is as follows: www.MP63FUND.com or www.DRIPX.com. To obtain the prospectus and fund information, including the 63 companies that make up the fund, visit the official fund website: www.mp63fund.com or call 1-877-676-3386.
The fund is also available through discount brokerage firms like: TD Ameritrade, Daily Access Corporation RTC, and Schwab. These discount brokers charge their own fees.
Rollover/transfer from old/existing 401k or retirement plan: The fund accepts rollover or transfer from old or existing 401k or retirement accounts (Traditional or Roth IRAs). For that purpose investors can contact the fund by phone at the number shown above or use the Investment Forms provided at the fund’s Website.
Any performance data quoted represents past performance. Past performance is not indicative of future returns. No representation or warranty is made that any returns indicated will be achieved. Mutual Fund investing in general involves market risk, fees, and expenses, which should be considered carefully before investing.
MP 63 Fund is managed by Moneypaper Advisor, Inc., Harrison, New York, 10528 and is distributed by Arbor Court Capital, LLC - Member FINRA. Important information about the MP 63 Fund (DRIPX) is found in its prospectus, a copy of which, along with current performance information, may be obtained by visiting MP63Fund.com or by calling 877-676-3386 to speak with the fund Administrator or 800-388-9993 to speak with the Advisor. Prospective investors should read the prospectus carefully before investing.
holdings are subject
to change and
are not a recommendation
to buy or sell