Please click here for specific details of results we listed below.
As of last Thursday (February 28th), The MP63 Fund (DRIPX) turned 20 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 in May 2018. Of course, we miss him and wish that he were with us to celebrate this milestone.
Many of our shareholders have been along since the Fund’s inception in 1999. I’m writing to you now to share information about the results we have achieved over the 20 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 and I hope and expect to continue to earn it.
We are proud of what we have achieved over the 20 years, which includes the following:
• Outpacing the S&P 500® Index since our inception.
• And doing that with less risk and volatility as seen by our lower than market Beta.
• Outpacing our Value peer group over every reporting period:
• Earning an overall 4-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 quarterly report: 2.48%.
• Providing more down market protection during down periods than the S&P 500.
• Providing our investors with an increasing dividend over the past 20 years. Growing from 6 cents in 1999 to 41 cents in 2018.
• 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 the fund will continue to be a solid investment. Past performance is not guarantee of future results.
If you value your experience with the fund, please feel free to forward this note to those who might benefit by considering DRIPX for their core holdings.
With good wishes, Vita and Mario
Please click here for specific details of results we listed above.
Managed by Moneypaper Advisors--Leveling the field for investors since 1980.
Starting in 1984, Moneypaper, a monthly financial newsletter, touted the advantages of investing through company-sponsored dividend reinvestment plans (DRIPs)—a largely unknown opportunity until then.
In 1994, the Moneypaper editors established an Index to compare the performance of companies with DRIPs with the market as a whole.
In 1999, to assist subscribers who wanted to invest in DRIP companies for their IRAs, Moneypaper editors organized the MP 63 mutual fund (DRIPX), which was based on those companies that they had been following since 1994.
List of Companies in the DRIPX Portfolio by Industry