UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-09053
The MP 63 Fund, Inc.
(Exact name of registrant as specified in charter)
MP 63 Fund, Inc.
555 Theodore Fremd Ave., Suite B-103
Rye, NY 10580
(Address of principal executive offices)(Zip code)
MP 63 Fund Inc.
555 Theodore Fremd Ave., Suite B-103
Rye, NY 10580
(Name and address of agent for service)
Registrant's telephone number, including area code: (914) 925-0022
Date of fiscal year end: February 28
Date of reporting period: August 31, 2009
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Dear Fellow Shareholders,
As the first half of our eleventh fiscal year ended on August 31, 2009, we were in the midst of a market recovery that has continued into October. As gratifying as this rebound has been, we are acutely aware of the dreadful period that preceded it, as, no doubt, are you. Our results for the six months ended August 31 were mixed. Some key points follow:
1.
Net investment income (dividends and interest, less expenses) totaled $345,199, down from a fund record $370,696 a year earlier. That was a direct result of dividend cuts, but we have replaced four companies that reduced their payouts, and we are building our positions in their replacements, along with other holdings that currently have strong dividends.
2.
Gross dividends received totaled $492,782 during the six-month period, and we believe that we should record our second straight fiscal year (ending February 28, 2010) with more than $1 million in dividends received.
3.
Our expense ratio rose from 0.96% (for the fiscal year ended February 28, 2009) to 1.01% (for the six months ended August 31, 2009). Bear in mind that the divisor for this ratio is average net assets, which ranged between $24 million and over $34 million during this period. Current (or higher) levels of net assets would result in an expense ratio of 1% or less—which is what we expect when the current fiscal year ends.
As mentioned above, we have replaced several companies. The new components – Arch Coal, Becton Dickinson, Deere & Company, Raytheon, and Stanley Works – all represent leadership in their respective industries, and we expect that they should improve the portfolio. We have made the decision to limit our top holdings to 3% of total assets and we are systematically adding to those companies that represent 1% or less of total assets. We think this approach should lead to both decreased risk and lower volatility while allowing us to build our dividend base.
As always, we congratulate DRIPX shareholders for their restraint during the recent bear market. We continue to urge you to join us in funding your account(s), either through dollar-cost averaging or periodic purchasing so that we can take advantage of the ongoing potential opportunities afforded by the stock market.
<signed>Vita Nelson and David Fish, co-managers
<October 15, 2009>
Past performance is not a guarantee of future results.
Must be preceded or accompanied by a prospectus. Mutual fund investing involves risk. Principal loss is possible.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security. Please refer to the schedule of investments in the report for complete holdings information.
Dollar-cost averaging involves continuous investment in securities regardless of fluctuating price levels of such securities; the investor should consider his/her financial ability to continue purchases through periods of low price levels. Dollar-cost averaging does not assure a profit and do not protect against loss in declining markets.
Quasar Distributors, LLC, Distributor. (11/09)
The MP63 Fund, Inc.
The following chart gives a visual breakdown of the Fund by the industry sectors
the underlying securities represent as a percentage of the portfolio of investments.
The MP63 Fund, Inc. |
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Statement of Assets and Liabilities | |
August 31, 2009 (Unaudited) | |
Assets: | |
Investments at Market Value (Cost $33,992,555) | $ 34,007,862 |
Cash | 1,925 |
Receivables | |
Dividends and Interest | 95,222 |
Prepaid Expenses | 23,213 |
Total Assets | 34,128,222 |
Liabilities | |
Accrued Expenses | 22,306 |
Accrued Management Fees | 10,039 |
Total Liabilities | 32,345 |
Net Assets | $ 34,095,877 |
Net Assets Consist of: | |
Capital Stock, $.001 par value; 1 billion shares | |
authorized; 3,400,434 shares issued and outstanding | $ 3,415 |
Additional Paid in Capital | 35,232,223 |
Accumulated Undistributed Net Investment Income | 455,589 |
Realized Loss on Investments - Net | (1,610,657) |
Unrealized Appreciation (Depreciation) in Value | |
of Investments Based on Identified Cost - Net | 15,307 |
Net Assets | $ 34,095,877 |
Net Asset Value and Offering Price ($34,095,877/3,415,076) | $ 9.98 |
Redemption Price Per Share ($9.98 x .98)* | $ 9.78 |
* The Fund will deduct a 2% redemption fee from redemption proceeds if purchased and redeemed | |
within 6 months. | |
The MP63 Fund, Inc. |
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Statement of Operations | |
For the six months ended August 31, 2009 (Unaudited) | |
Investment Income: | |
Dividend Income | $ 492,782 |
Interest Income | 2,040 |
Total Investment Income | 494,822 |
Expenses: | |
Investment advisor fees | 51,892 |
Administration fees | 25,936 |
Fund servicing expense | 21,172 |
Registration fees | 12,438 |
Insurance expense | 4,064 |
Printing and postage expense | 4,586 |
Compliance fees | 6,050 |
Miscellaneous expense | 1,461 |
Custody fees | 4,083 |
Legal fees | 7,528 |
Director fees | 3,149 |
Audit fees | 7,264 |
Total Expenses | 149,623 |
Net Investment Income | 345,199 |
Realized and Unrealized Gain (Loss) on Investments: | |
Realized Loss on Investments | (810,992) |
Unrealized Appreciation on Investments | 10,944,607 |
Net Realized and Unrealized Gain on Investments | 10,133,615 |
Net Increase in Net Assets from Operations | $ 10,478,814 |
The MP63 Fund, Inc. |
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|
Statements of Changes in Net Assets | (Unaudited) | |
For the | For the | |
Six Months Ended | Year Ended | |
August 31, 2009 | February 28, 2009 | |
From Operations: | ||
Net Investment Income | $ 345,199 | $ 724,265 |
Net Realized Gain (Loss) on Investments | (810,992) | (754,818) |
Net Unrealized Appreciation (Depreciation) | 10,944,607 | (16,426,356) |
Increase (Decrease) in Net Assets from Operations | 10,478,814 | (16,456,909) |
From Distributions to Shareholders: | ||
Net Investment Income | - | (686,817) |
Net Realized Gain from Security Transactions | - | - |
Change in Net Assets from Distributions | - | (686,817) |
From Capital Share Transactions | ||
Proceeds From Sale of Shares | 1,199,784 | 3,200,917 |
Shares Issued on Reinvestment of Dividends | - | 683,991 |
Cost of Shares Redeemed | ||
(net of redemption fees $3,799 and $15,366, respectively) | (1,079,450) | (3,236,473) |
Net Increase from Shareholder Activity | 120,334 | 648,435 |
Net Increase (Decrease) in Net Assets | 10,599,148 | (16,495,291) |
Net Assets at Beginning of Period | 23,496,729 | 39,992,020 |
Net Assets at End of Period (Including Undistributed Net | ||
Investment Income of $455,589 and $110,440, respectively) | $ 34,095,877 | $ 23,496,729 |
Share Transactions: | ||
Issued | 144,122 | 305,513 |
Reinvested | - | 80,659 |
Redeemed | (129,480) | (291,321) |
Net increase in shares | 14,642 | 94,851 |
Shares outstanding beginning of period | 3,400,434 | 3,305,583 |
Shares outstanding end of period | 3,415,076 | 3,400,434 |
The MP63 Fund, Inc. |
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Financial Highlights | (Unaudited) | ||||||||||
Selected data for a share outstanding throughout the period: | For the | For the | For the | For the | For the | For the | |||||
Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||
August 31, 2009 | February 28, 2009 | February 29, 2008 | February 28, 2007 | February 28, 2006 | February 28, 2005 | ||||||
Net Asset Value - | |||||||||||
Beginning of Period | $ 6.91 | $ 12.10 | $ 13.36 | $ 12.48 | $ 11.91 | $ 11.01 | |||||
Net Investment Income | 0.10 | 0.22 | 0.18 | 0.17 | 0.15 | 0.10 | |||||
Net Gains or Losses on Securities | |||||||||||
(realized and unrealized) | 2.97 | (5.20) | (0.51) | 1.13 | 0.55 | 0.90 | |||||
Total from Investment Operations | 3.07 | (4.98) | (0.33) | 1.30 | 0.70 | 1.00 | |||||
Distributions (From Net Investment Income) | 0.00 | (0.21) | (0.19) | (0.17) | (0.13) | (0.09) | |||||
Distributions (From Capital Gains) | 0.00 | 0.00 | (0.74) | (0.25) | 0.00 | (0.01) | |||||
Total Distributions | 0.00 | (0.21) | (0.93) | (0.42) | (0.13) | (0.10) | |||||
Net Asset Value - | |||||||||||
End of Period | $ 9.98 | $ 6.91 | $ 12.10 | $ 13.36 | $ 12.48 | $ 11.91 | |||||
Total Return (a) | 44.43 % | (41.49)% | (3.08)% | 10.40 % | 5.91 % | 9.06 % | |||||
Ratios/Supplemental Data | |||||||||||
Net Assets - End of Period (Thousands) | 34,096 | 23,497 | 39,992 | 41,137 | 37,726 | 33,344 | |||||
Ratio of Expenses to Average Net Assets | 1.01% | 0.96% | 0.88% | 0.97% | 1.02% | 1.22% | |||||
Ratio of Net Income to Average Net Assets | 2.32% | 2.04% | 1.34% | 1.28% | 1.23% | 0.85% | |||||
Portfolio Turnover Rate | 9.93% | 10.66% | 4.75% | 25.90% | 6.58% | 8.77% | |||||
(a) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gain distributions | |||||||||||
and assume no redemption fees. |
THE MP63 FUND, INC.
Notes to Financial Statements
August 31, 2009 (Unaudited)
NOTE 1. ORGANIZATION
The MP63 Fund (the "Fund") is organized as a Maryland Corporation, incorporated on October 13, 1998, and registered as an open-end, diversified, management investment company under the Investment Company Act of 1940, as amended. The Fund's business and affairs are managed by its officers under the direction of its Board of Directors. The Fund's investment objective is to seek long-term capital appreciation for shareholders.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America.
A.
Security Valuation - Portfolio securities traded on a national securities exchange are stated at the last reported sales price or a market’s official close price on the day of valuation. Portfolio securities for which market quotations are readily available are valued at market value. Portfolio securities for which market quotations are not considered readily available are valued at fair value on the basis of valuations furnished by a pricing service approved by the Board of Directors. The pricing service determines valuations for normal, institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships between securities that are generally recognized by institutional traders. There were no securities valued under this pricing service for 2008 or 2007.
Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices accurately reflect the fair market value of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. If the Advisor decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Advisor, in conformity with guidelines adopted by and subject to revie w of the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value.
In accordance with the Trust’s good faith pricing guidelines, the Advisor is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard for determining fair value controls, since fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of securities being valued by the Advisor would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale.
THE MP63 FUND, INC.
Notes to Financial Statements
August 31, 2009 (Unaudited)
Methods which are in accord with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. No securities were Fair Valued as of June 30, 2009.
In accordance with FAS 157, fair value is defined as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. The three-tier hierarchy of inputs is summarized below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of August 31, 2009:
Investments in Securities: | |||||||
(Assets) | Level 1 | Level 2 | Level 3 | Total | |||
Equity Securities | $33,252,541 | - | - | $33,252,541 | |||
Short-Term Investments | 755,321 | - | - | 755,321 | |||
Total | $34,007,862 | - | - | $34,007,862 |
B.
Security Transactions and Related Investment Income - Securities transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis.
C.
Federal Income Taxes - The Fund complies with requirements of the Internal Revenue Code applicable to regulated investment companies, distributing all of its taxable income to its shareholders. Therefore, no provision for Federal income tax is required.
THE MP63 FUND, INC.
Notes to Financial Statements
August 31, 2009 (Unaudited)
D.
Dividends and Distributions to Shareholders - The Fund records dividends and distributions to shareholders on the ex-dividend date. The Fund will distribute its net investment income, if any, and net realized capital gains, if any, annually.
E.
Credit Risk - Financial instruments that potentially subject the Fund to credit risk include cash deposits in excess of federally insured limits.
F.
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
NOTE 3. INVESTMENT ADVISORY AGREEMENT AND OTHER RELATED PARTY
TRANSACTIONS
The Fund has entered into an investment advisory agreement (the "Agreement") with The Moneypaper Advisor, Inc. (the "Advisor"). Under this Agreement, the Advisor provides the Fund with investment advice and supervises the Fund's management and investment programs. As compensation for the services rendered, the Fund pays the Advisor a fee accrued daily based on an annualized rate of .35% of the daily net asset value. For the six months ended August 31, 2009, the Advisor earned fees of $51,892.
The Advisor has voluntarily agreed to defer its advisory fee and to reimburse the Fund for other expenses if the total operating expenses of the Fund exceed an annual rate of 1.25% of average daily net assets. Under the terms of the Agreement, fees deferred or expenses reimbursed by the Advisor are subject to reimbursement by the Fund, if so requested by the Advisor, up to five years from the fiscal year the fee or expense was incurred. However, no reimbursement payment will be made by the Fund if it would result in the Fund exceeding the voluntary expense limitation described above.
An affiliate of the Advisor provides certain administrative services to the Fund. These expenses amounted to $25,936 during the six months ended August 31, 2009.
The Fund has an administrative agreement with Mutual Shareholder Services (The "Administrator"). Under this agreement, the Administrator provides the Fund with administrative, transfer agency, and fund accounting services. Mutual Shareholder Services charges an annual fee of approximately $42,000 for services rendered based on the Fund’s current asset size.
The Fund is responsible for the cost of printing, postage, telephone costs and certain other out-of-pocket expenses. Vita Nelson is an officer and director of the Advisor and also an officer and director of the Fund.
THE MP63 FUND, INC.
Notes to Financial Statements
August 31, 2009 (Unaudited)
The Fund currently pays each Director an annual retainer of $2,000.
The Chief Compliance Officer is paid $1,000 per month. For the six months ended August 31, 2009 the Chief Compliance Officer was paid $6,000.
NOTE 4. INVESTMENT TRANSACTIONS
For the six months ended August 31, 2009, purchases and sales of securities, excluding short-term investments, aggregated $2,855,479 and $3,055,047, respectively. As of February 28, 2009, cumulative unrealized depreciation amounted to the follow:
Unrealized appreciation $4,534,300
Unrealized depreciation
(4,518,933)
Net unrealized depreciation
$ 15,307
For Federal income tax purposes, the cost of investments owned at August 31, 2009 was $33,992,555.
NOTE 5. TAX INFORMATION
Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gain as ordinary income for tax purposes.
As of August 31, 2009, the components of net assets on a tax basis were as follows:
Ordinary income $ 455,589
Long term loss $ (1,610,657)
Unrealized appreciation $ 4,534,300
Unrealized depreciation $ (4,518,933)
The tax character of distributions paid during the fiscal year ended February 28, 2009 was as follows:
Distributions paid from:
Ordinary income
$ 686,817
Long term capital gains
0
Total
$ 686,817
There were no distributions paid during the six months ended August 31, 2009.
THE MP63 FUND, INC.
Notes to Financial Statements
August 31, 2009 (Unaudited)
Note 6. New Accounting Pronouncements
In March 2008, FASB issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows.
On June 15, 2009, the Fund adopted Financial Accounting Standards Board Standard No. 157-4 – Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions that are Not Orderly. At adoption the Fund evaluated the level and activity for the assets and liabilities of the Fund to ascertain that the fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. Management of the Fund does not believe that any adjustments were necessary to the financial statements at adoption.
In May 2009, FASB issued the Statement of Financial Accounting Standards No. 165, "Subsequent Events" ("SFAS 165"). SFAS 165 is effective for fiscal years and interim periods ending after June 15, 2009. SFAS 165 requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date – that is, whether that date represents the date the financial statements were issued or were available to be issued. In preparing these financial statements, the Funds has evaluated events and transactions for potential recognition or disclosure through August 27, 2009, the date the financial statements were issued; the Fund has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
Expense Example
As a shareholder of the MP63 Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution [and/or service] (12b-1) fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2009 through August 31, 2009.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Fund’s actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The MP 63 Fund | Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
March 1, 2009 | August 31, 2009 | March 31, 2009 to August 31, 2009 | |
Actual | $1,000.00 | $1,444.28 | $6.22 |
Hypothetical | |||
(5% Annual Return before expenses) | $1,000.00 | $1,020.11 | $5.14 |
* Expenses are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). | |||
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The Board of Directors supervises the business activities of the Fund. The names of the Directors and principal officers of the Fund are shown below. For more information regarding the Directors, please refer to the Statement of Additional Information, which is available free upon request by calling 1-877-676-3386.
Name, Address and Age | Position(s) Held with the Fund | Term of Office and Length of Time Served1 | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | Other Directorships Held By Director |
Disinterested Directors:
Ted S. Gladstone Age: 77 555 Theodore Fremd Ave., Suite B103 Rye, NY 10580 | Director | Indefinite – since 1998 | President, Gladstone Development Corporation (real estate development) | 1 | None |
Gloria Schaffer Age: 78 555 Theodore Fremd Ave., Suite B103 Rye, NY 10580 | Director | Indefinite – since 1998 | Partner, CA White (real estate development) | 1 | None |
Richard Yaffa Age: 77 555 Theodore Fremd Ave., Suite B103 Rye, NY 10580 | Director | Indefinite – since 2005 | President, Manhattan Products, Inc. | 1 | None |
Interested Directors:
Vita Nelson1,2 Age: 71 555 Theodore Fremd Ave., Suite B103 Rye, NY 10580 | Director | Indefinite – since 1998 | President, Editor and Publisher of The Moneypaper, Inc. (newsletter) | 1 | Director, The Moneypaper Advisor, Inc.; Director, Temper of the Times Communications, Inc. Director, Moneypaper, Inc. |
Principal Officers who are not Directors:
Lester Nelson1 Age: 80 555 Theodore Fremd Ave., Suite B103 Rye, NY 10580 | Secretary | Indefinite – since 1998 | Law Firm of Lester Nelson | 1 | Director, Moneypaper Advisor, Inc.; Director, Temper of the Times Communications, Inc. Director, Moneypaper, Inc. |
David Fish Age: 60 555 Theodore Fremd Ave., Suite B103 Rye, NY 10580 | Treasurer | Indefinite – since 2003 | Executive Editor of The Moneypaper, Inc. (newsletter) | 1 | None |
(1)
Vita Nelson and Lester Nelson are married
(2)
Vita Nelson is President of the Fund and a Director of the Fund’s Advisor, The Moneypaper Advisor, Inc. and therefore, is an “Interested Director” of the Fund.
THE MP63 FUND, INC.
Additional Information (Unaudited)
August 31, 2009
Information Regarding Proxy Voting
A description of the policies and procedures that these Funds use to determine how to vote proxies relating to portfolio securities and information regarding how these Funds voted proxies during the most recent 12-month period ended June 30, are available without charge upon request by (1) calling the Funds at 1-877-676-3386 and (2) from Funds’ documents filed with the Securities and Exchange Commission ("SEC") on the SEC's website at www.sec.gov.
Information Regarding Portfolio Holdings
The Fund file a complete schedule of investments with the SEC for the first and third quarter of each fiscal year on Form N-Q. The Fund first and third fiscal quarters end on May 31 and November 30. The Fund Form N-Q’s are available on the SEC’s website at http://sec.gov, or they may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room). You may also obtain copies by calling the Funds at 1-877-676-3386.
Item 2. Code of Ethics. Not applicable.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Directors has determined that the registrant does not have an audit committee financial expert. The audit committee members and the full Board determined that, although none of its members meet the technical definition of an audit committee financial expert, the committee has sufficient financial expertise to adequately perform its duties under the Audit Committee Charter without the addition of a qualified expert.
Item 4. Principal Accountant Fees and Services. Not applicable.
Item 5. Audit Committee of Listed Companies.
Richard Yaffa
Ted Gladstone
Gloria L. Schaffer
Item 6. Schedule of Investments.
Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not yet applicable.
Item 9. Purchase of Equity Securities By Closed End Management Investment Company and Affiliates. Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
No Changes.
Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item.
Item 11. Controls and Procedures.
(a)
The Principal Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing of this report.
(b)
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1)
Not applicable.
(a)(2)
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3)
Not applicable.
(b)
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The MP 63 Fund, Inc.
By /s/Vita Nelson
*Vita Nelson
President
(principal executive officer)
Date November 6, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /s/Vita Nelson
*Vita Nelson
President
(principal executive officer)
Date November 6, 2009
By /s/David Fish
*David Fish
Treasurer
(principal financial officer)
Date November 6, 2009
* Print the name and title of each signing officer under his or her signature.