Descriptions of Mutual Funds Designed and Created by David Moglen

I promise at some point soon I will post some policy ideas that will justify the name of this blog. That said, I do think the democratization of the mutual fund industry that I have been plugging in so many posts is a progressive economic development. Until then, here is my latest update:

The David Moglen Funds are all available for purchase through your www.MotifInvesting.com
account. I can send you an invitation email that will explain how to get your cash incentive (currently $100 – I copied the details below in this posting) essentially for completing one trade. Or feel free to buy all six of the Funds I have now. It is all your investment. There is 0% management fee on your money. Feel free to email me at davidmoglen@hotmail.com if you are interested. I can also provide more info and the site’s customer service is very helpful too.

Below are the descriptions of the funds I have created. At their website www.MotifInvesting.com you can see the exact percent allocation of the stock picks within each fund. I also provide below an update including current dividend yield, performance since inception (inception date is March to August 2013 for all the funds I created), and any other interesting notes on that particular “motif” – the sectoral theme (or thematic sector) of that fund.


David Moglen Fund Descriptions and Updates:


Crack Spread Capitalists

The "Crack Spread" is the margin between crude oil prices and those of refined gasoline. And who is it that receives the gap between how much all that crude in barrels costs and the price of your gas at the station when you fill up every week? It becomes the profit of the refiners, these "Crack Spread Capitalists."

Update: These seem to be very solid companies to me like Valero and Marathon Energy. It has a surprisingly think 3.6% dividend yield.

Return since inception: 3.5%
Current dividend yield: 3.6%




Let’s Go to the Mall

The Let’s Go to the Mall portfolio includes a substantial percentage of the high quality retailers the American consumer would stroll past or stop by as they meander through their nearest shopping mall. Investors are well aware of the presentation of these stores, their ubiquity and their attention to personal customer service. Any time consumer confidence rises or gas prices fall, you might want to go to the mall.

Update: Retail has had a bad twelve months amid warning of secular (read: Amazon-induced) decline, but this is a play on the consumer. If consumer sentiment awakens, this could do even better than it has. Somehow my picks in this challenged sector are still up 16.3% since the fund was created.

Return since inception: 16.3%
Current dividend yield: 1.1%


Ultra High-Dividend Fund

The Ultra High-Dividend Fund targets a range of promising securities providing an aggressive total return via dividends and capital gains. This fund features, at one end of the spectrum, companies such as REITs, Private Equity, and pipeline stocks which have proven their ability to pay nearly double-digit (and several above ten percent) dividend yields annually. At the other end of the spectrum, selections have more moderate yields of about four percent combined with greater potential for capital gains through their market leadership, long-term track records, and/or secular growth positioning. All of these yield-based selections are additionally screened for cash-rich balance sheets, mandatory current profitability, and inexpensiveness on price-earnings and price-book bases.

Update: This was the fund idea that started it all, the original mREIT-packed motif. All my high-dividend funds were started at a peak of their sectoral share price, especially in REITs and even more especially in mREITS. Coming off that high, the dividends remain fat and these all seem to be good ideas as long as Janet Yellen plans to remain the Fed Chair.

Return since inception: -10.8%
Current dividend yield: 12.4%


Ultra High Dividend Focused

This Ultra High Dividend Focused fund applies the same objectives as the original Ultra High Dividend fund by David Moglen on Motif Investing, but contains only those securities that yield over 10% in annual dividend payouts for Real Estate Investment Trust or Private Equity, and yielding over 6% for Pipelines. Such a focused standard for dividend payouts results in all of the holdings being either REITs, Private Equity-related firms, or Pipeline's common stock. At inception, this fund has a total dividend cash payout (yield) of 11.94% at a very inexpensive Price-to-Earnings (PE) ratio of 7.4.

Update: This offshoot of the original Ultra High-Dividend Fund is meant to be its forbear, its predecessor’s doppelganger on steroids. It is the Imperial India Pale Ale or Double IPA to the original’s classic IPA. Given that its dividend of 13.7% is only 1.3% above that of its ancestor fund, and the original also had about half the capital loss since inception, it is clear the risk-to-reward calculus has been much better with the original Ultra High-Dividend Fund. However, I would never restrict a DIPA fan to an IPA, no matter how fantastic it was.

Return since inception: -19.7%
Current dividend yield: 13.7%


Ultra High Dividend Diversified

This Ultra High Dividend Diversified fund applies the same objectives as the original Ultra High Dividend fund by David Moglen on Motif Investing, but adds additional securities to provide cross-company diversification. The additional stocks still keep to the same standard of seeking the maximal balance of exceedingly high dividend cash payouts combined with reliability in terms of ability to maintain or even increase earnings and dividends.

Update: To extend the analogy, this fund is the regular pale ale to the original Ultra High-Dividend Fund’s IPA. Less adventurous, safer, but still with a significantly revved-up dividend of 9.7% which implies an edgy amount of risk and decent inclusion of mREITs.

Return since inception: -12.9%
Current dividend yield: 9.7%



Content is King

Firms such as CBS and Viacom, who make entertainment content, can expect to do very well in this era when conventional and new digital and mobile channels are both competing for their output. TV, film, music and educational materials will be increasingly accessed online and via mobile devices. This expectation is validated by the move among content delivery firms (Comcast, Netflix, Amazon etc.) to buy, own, and produce more and more of their own content. However, in keeping with the principles of value investing, this fund will only hold (upon inception) currently profitable firms with relatively inexpensive (on a price-earnings basis) stock prices. Therefore, for example, Comcast would be eligible for inclusion but not Netflix or Amazon.

Update: The clear star in returns since mid-2013 with 32.9% gain on your investment, I still think we are in the early innings of the mobile revolution and the added demand for content it will fuel.

Return since inception: 32.9%
Current dividend yield: 1.2%



Terms of conditions to receive the $100s in your account – (email me at davidmoglen@hotmail.com if you want me to send you the email invitation for this):

Eeach friend must use the link in your Motif invite to open their accounts. The link creates a unique electronic cookie as an identifier. Therefore, your friend's cookie setting must be enabled. Your friend's new funds must be posted to their new account within 10 calendar days of account opening, and must remain in the account for 45 calendar days. Once your friend's first motif trade is executed, you and your friend will each receive a $100 credit to your Motif Investing non-retirement accounts - or a $100 Amazon gift certificate via email if you, as the referrer, don't have a Motif Investing non-retirement account - within 30 calendar days after the end of the 45-calendar-day period is complete.

For your referral to quality for the offer, you and your friend must not reside at the same address. Only one friend referral and $100 bonus per address is eligible. Your friend cannot be an existing Motif member or trading account holder.

Commission fees are not reimbursable as part of this offer. This offer is not valid for retirement accounts, such as IRAs, and cannot be combined with any other offers from Motif Investing, and is not transferrable. Limit one account bonus per referred household. Motif Investing reserves the right to terminate this offer at any time and to refuse or recover any promotion award if, in Motif Investing's sole opinion, it was obtained under wrongful or fraudulent circumstances, that inaccurate or incomplete information was provided in opening the account, or that any terms of the Account Agreement have been violated. This offer is not applicable to associates or affiliated associates (including contractors, interns, and temporary employees) of Motif Investing and their immediate family members. You and your friends must meet requirements for applying for, establishing, and maintaining a Motif Investing trading account in good standing, in order to participate. Offer valid for residents of the U.S. and must be at least 18 years of age to be eligible.

Standard pricing: $9.95 total commission per motif transaction, or pay $4.95 per stock for individual transactions within a motif. Other fees may apply. For details on fees and commissions, please click here.