The MP63 (DRIPX) Fact Sheet
As of December 31, 2018
The MP63 (DRIPX) is a diversified mutual Fund that allows individual investors to put money into a wide range of companies that offer Dividend Reinvestment Plans, in a simple, low-cost, low-beta, low-turnover portfolio of high-quality dividend paying stocks, carefully selected by experienced managers.
Portfolio and Strategy:
The Fund focuses on companies (in a wide range of industries) with strong brands and competitive advantages, with long histories of paying and increasing dividends, that also have the likelihood of continuing to pay and increase dividends in the future. MP63 is the only mutual Fund focused on companies that offer Dividend Reinvestment Plans (DRIPs), and it is managed by two experts on the field of DRIPs, each with more than 20 years of experience.
The process of portfolio selection pays special attention to defensive stocks (companies with products and services we all need, regardless of the economic cycles).
In a semi-passive approach, the Fund invests in 63 companies for the long or very long term. The Fund invests cash and reinvests the dividends in the companies that pay them on a routine basis over the year. In this way, the Fund benefits 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 2%, which is relatively low compared with funds in its category.
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.
The two Fund managers have substantial investments in the Fund.
Costs and Fees:
The Fund has a no-load structure, so it is available directly to investors, with no brokers or commissions. However, should shareholders wish to hold shares within a brokerage account, the Fund appears on the Charles Schwab platform. Those brokers charge their own fees.
The Expense Ratio is competitive compared to its category. According to Morningstar®, as of December 31st, 2018, the average expense ratio of mutual Funds in the Large-Cap Value category is 1.01%, while the expense ratio of DRIPX is 0.75%.
The Fund doesn’t charge a 12b-1 fee (a fee associated with promotion or advertising).
Small and Beautiful:
Currently (as of December 31st, 2018) DRIPX is part of the group of 61 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 December 31st, 2018, DRIPX has a 4-star rating from Morningstar® and the Gold medal, which is their highest analyst rating for mutual funds. As of December 31st, 2018, this is how the Fund’s cumulative returns compare to its category (Large Cap Value Funds):
During the past 15 years: DRIPX, 182.38%. Category, 143.61%
During the past 10 years: DRIPX, 201.42%. Category, 170.97%.
During the past 5 years: DRIPX, 40.32%. Category, 28.50%.
During the past 3 years: DRIPX, 28.67%. Category, 21.61%.
During the past 12 months: DRIPX, (-5.54%). Category, (-8.55%).
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 December 31st, 2018 (including dividends and capital gains), since the Fund inception in March 1st, 1999. The cumulative return comparison is as follows:
1: The Fund (MP 63 Fund, DRIPX) (blue line): 217.16%
2: The Fund category (large cap value) (orange line): 182.74%
3: The S&P 500® index (green line): 195.66%
Source: Morningstar (as of December 31, 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 0.89 (vs. the S&P 500® Index), so the Fund is 11% 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.)
DRIPX annual dividends per share since inception in 1999:
1999: 06 cents
|2004: 09 cents
2009: 22 cents
2014: 29 cents
|2000: 08 cents
||2005: 13 cents
||2010: 20 cents
||2015: 34 cents
|2001: 06 cents
||2006: 17 cents
2011: 24 cents
2016: 38 cents
|2002: 07 cents
||2007: 19 cents
||2012: 32 cents
||2017: 36 cents
2003: 07 cents
2008: 21 cents
2013: 27 cents
2018: 41 cents
Investing in the Fund:
The Fund is available directly. There is no required minimum initial investment. Also, there is no requirement to invest a certain minimum amount for subsequent investments. The Fund offers an optional Automatic Investment Plan.
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.
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 website or call 1-877-676-3386.
The Fund is also available through discount brokerage firms Charles Schwab. These discount broker charges its own fees.
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.
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