Shareholder Letter
Dear Fellow Shareholders,
The MP63 Fund (DRIPX) continues to follow the investing guidelines that were established at its inception in March 1999: At least 80% of its assets are invested in what we consider to be high-quality companies that pay dividends and offer the option to invest directly through the company-sponsored Dividend Reinvestment Plan (DRIP). The Fund’s expense ratio during the 2025 fiscal year was 0.72%, which compares favorably with 0.79% for Large-Cap No-Load funds.
The calendar year 2024 reflected a year of recovery for virtually every type of equity fund. The S&P 500® Index, up 23.31% (after a decline of 24.23% in 2023). During the same period, DRIPX was up only 10.94% and the iShares Russell 1000 Value ETF was up only 14.27%. DRIPX has a large commitment to the defensive sectors: Consumer Staples, Utilities, and Healthcare–which were among the worst performing sectors—which lost value while the magnificent seven dominated the market during the period.
But market favorites are not fixed and momentum favorites change and that’s why we remain committed to our allocations among sectors. Although our long-term strategy caused the Fund to underperform during our last fiscal year–bringing our Morningstar ranking down from a Gold Medal and 4 stars to a Silver Medal* (still a high conviction rating) and 3 stars (and currently, 2 stars), we believe the long-term strategy we follow is most likely to deliver the retirement benefits shareholder anticipate.
The best performing stocks in the portfolio during the fiscal year (including dividends) were: National Fuel Gas Company (NFG), with a cumulative return of 59.83%, Corning Incorporated (GLW): 58.57%, RTX Corporation (RTX): 51.35%, JPMorgan Chase & Co. (JPM): 46.09%, Costco Wholesale Corporation (COST): 40.68%, Aflac Incorporated (AFL): 38.92% and American Express Company (AXP): 38.53%
The worst performing stocks in the portfolio during the period were: Nucor Corporation (NUE), with a cumulative loss of -26.87, Merck & Co., Inc. (MRK): -25.35%, NIKE, Inc. (NKE): -20.98%, Tennant Company (TNC): -20.92%, Genuine Parts Company (GPC): -14.41%, Comcast Corporation (CMCSA): -13.50% and The Boeing Company (BA): -12.69%.
As always, we thank you for your patient adherence to our wealth-building strategy and, again, for the restraint you have shown during market sell-offs.
The DRIPX Management Team, Vita Nelson, Mario Medina, Lee Nelson, and Byron Perez
April 24, 2025
* Morningstar believes likely to outperform on a risk-adjusted basis over time.
Disclaimer:
Past performance is not a guarantee of future results. Principal loss is possible.
Fund holdings are subject to change. Please refer to the schedule of investments in the report for complete holdings information.