As of February 29, 2020, The MP63 Fund (DRIPX) turned 21 years old.
It seems like yesterday when we decided to offer a mutual fund as a way for Moneypaper subscribers to invest in a DRIP-like manner for their IRAs. Five years earlier, Executive Editor David Fish and I had put together an Index of DRIP stocks. An analysis of the performance of that Index, compared with the established Indexes, made us believe that we were onto something. In 1999, the 63 DRIP stocks that made up the Index became the components of the MP 63 Fund. David Fish and I, with the help of Mario Medina, managed the Fund until 2017 and Mario and I until now. Sadly, David passed away in May 2018. Of course, we miss him and wish that he were with us to celebrate our milestones.
Many of our shareholders have been along since the Fund’s inception in 1999. I’m writing now to share the results we have achieved over the 21 years, which are in part a result of your behavior—that is, your resisting the urge to respond by selling during sharp market declines and by your investing regularly to add to your holdings over the years at a variety of price points.
Thanks to the restraint and patience of our long-term investors, we have not been forced to sell into market downturns and we have been able to support the companies in our portfolio during both good times and bad. Thank you for your abiding confidence in us, Mario, Lee and I hope and expect to continue to earn it.
We are proud of what we have achieved over the 21 years which includes the following:
• Outpacing the S&P 500® Index since inception.
• And doing so with less risk and volatility as seen by The Fund's lower than market Beta.
• Outpacing our Value peer group over all reporting periods:
• Earning an overall 5-star Morningstar ranking for the past three years, five years, and 10 years. (Morningstar does not rank shorter than after three years.)
• Running the fund with a lower expense ratio than its peer group.
• Maintaining a low annual portfolio turnover—as of the last annual report: 5.66%.
• Providing more down market protection during down periods than the S&P 500.
• Providing increasing distributions over the past 21 years. Growing from 6 cents in 1999 to 82 cents in 2019.
• And finally, DRIPX received the Gold Medal from Morningstar, which means that Morningstar analysts believe that the fund has the ingredients to outperform its peers in the future.
In today’s uncertain and volatile environment, we think DRIPX will continue to be a solid investment. Past performance is not guarantee of future results.