Shareholder Letter
Dear Fellow Shareholders,
The MP63 Fund (DRIPX) continues to follow the investing guidelines established at its inception in 1999: At least 80% of assets are invested in high-quality companies that pay dividends and offer the option to invest directly through a Dividend Reinvestment Plan (DRIP). The Fund’s Expense Ratio during fiscal 2025 was 0.73%, comparing favorably with Large-Cap No-Load funds’ 0.75%, but more than DRIPX’s 0.72% in 2024.
As for performance: In 2025, the S&P 500® Index was up 16.39%, DRIPX was up only 13.91%, while the iSharesRussell 1000 Value ETF was up 15.68%. DRIPX has a large commitment to defensive sectors: Consumer Staples, Industrials, Utilities, and Healthcare–the worst performing sectors—while Tech, where it has less representation, was the best performer. But market favorites are not fixed, and that’s why we remain committed to our allocations among sectors.
DRIPX’s results YTD illustrate how momentum can shift. Energy, Materials, and Industrials have joined Tech as the leading sectors, causing our one-year results to climb to more than 20%. And, YTD, we are up 8.42%, beating all the indexes. But a comparison with peers, while interesting, is not our focus. DRIPX is committed to a strategy to minimize risk, and our asset-allocation is based on that objective. We favor companies with consistent and growing dividends, but our allocations also are mindful of growth potential, and corporate ethics.
Although this strategy caused the Fund to underperform in 2025–bringing our Morningstar ranking down from 3 stars to 2 stars, we retain the Morningstar Silver Medal* (confirming management’s belief). The best performing stocks in the portfolio during the period: Corning (GLW), returning 216.40% and Caterpillar (CAT), returning 126.84%–both gaining from the AI boom. Ironically, the two worst performers, also probably responding to AI—but, negatively were: Paychex (PAYX), losing –36.78% and Tennant Co. (TNC), losing -24.86%.
Not to diminish the effect of global disruptions on market performance, we have confidence that over the long term the market will reward the patient long-term investor. As I’ve acknowledged previously in this space, the confidence and restraint of our educated fellow-shareholders deserve credit for the success of our strategy.
Thank you,
Vita Nelson, Lee Nelson, Mario Medina, and Byron Perez
April 20th, 2026
* Morningstar believes likely to outperform the market 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. Refer to the schedule of investments in the report for complete holdings information.