The Moneypaper 63-stock Index (MP63)

The Moneypaper 63-stock Index (MP 63) was created at the start of 1994 in order to track a representative sampling of companies that offer dividend reinvestment plans (or DRIPs). With an emphasis on quality and diversity, the index contains companies that can easily serve as "core" holdings in any portfolio, and typify the long-term aims of the small investor who uses DRIPs to build wealth. The result is a mixture of 52 industrial companies, 9 utilities, and 2 transportation firms and run the gamut from pharmaceuticals (Abbott Labs). Included are blue chips like Coca-Cola, Intel, Johnson & Johnson, 3M, as well as banks (Fleet Financial and National City), food companies (Hormel and ConAgra), and other companies that should do well in the future, like Diebold, Polaris, and AFLAC.

The MP63 Index is equally weighted among companies, regardless of size, and basically follows the fate of $100 investments in each company, with dividends reinvested, individually and in the aggregate. So each company has its own "index", regardless of price level or stock split history, and the overall index is the aggregate performance of all stocks. When an individual company has a reading of 200, it has doubled the value of its initial investment, which was made at the start of 1994, turning $100 into $200. When the MP63 passed the 200 level, as it did on June 6, 1997, it meant that an initial investment of $6,300 ($100 in each company) had achieved a value of over $12,600. The individual results varied at that time from 67.30 for Caliber Systems (which was later acquired by FedEx and replaced in our Index) up to 486.93 for Intel, meaning that a $100 investment in each would have turned into $67.30 and $486.93, respectively.

The Index is designed to demonstrate and encourage individual investors to achieve long-term wealth by investing in a diverse group of companies, which decreases risk, and to focus on high-quality, investor-friendly firms that offer DRIPs. Most of the companies included requires ownership of just one share to enroll in their plan (Phelps Dodge require 10 shares) and all charge No (or minimal) fees, which might otherwise erode the investor’s return. As of June 6, 1997, the MP63 Index had reached a level of 200.57 (29.30% annualized) vs. 183.94 (24.46% on an annual basis) for the Standard & Poor’s 500. The 52 industrial stocks in the Moneypaper Index had reached a level of 215.33, vs. 198.07 for the Dow Jones Industrial Average.  

Performance of the index should not be considered a reflection of the actual MP63 Fund performance. Performance data for the MP63 Fund may be obtained by calling (440) 922-0066.