Allocating to a fund that utilizes active management, such as the Merk Hard Currency Fund (MERKX), may capture opportunities and avoid potential loses in a portfolio. The chart below reflects the dates where MERKX bought and sold the Japanese yen:

All calculations based on daily data (09/01/2011 - 01/11/2013).

Currency returns have traditionally exhibited low correlations to many asset classes.

Source: Bloomberg

The following indices are used as proxies for the respective asset classes:

• Currency: Deutsche Bank Currency Returns (DBCR) Index.
• Fixed Income: JP Morgan U.S. Aggregate Bond Index.
• Commodities: Deutsche Bank Liquid Commodities (DBLCI) Index.
• Real Estate: NAREIT Index.
• Equities: S&P 500 Index.

All calculations based on daily data to 12/31/2012

Based on implied measures of volatility, currencies are the least volatile asset class when compared to equities and bonds.

Source: Bloomberg, Merk Investments, Deutsche Bank

The following indices are used as proxies for the respective asset classes:

• Equities - VIX Index: Chicago Board of Options Exchange Volatility Index.
• Fixed Income USSV055 Index: USD Swaption 5 Year Fixed/Floating Volatility Index.
• Currencies - CVIX Index: Deutsche Bank FX Volatility Index

All calculations based on daily data (12/31/2002 - 12/31/2012).
The y-axis represents annualized standard deviation of daily returns.

Investors may achieve more effective diversification by incorporating currencies or currency funds into their portfolios.

Source: Bloomberg, Merk Investments

Information contained herein may discuss Fund performance and holdings. Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. For performance current to the most recent month-end, please visit our website at www.merkfunds.com/fund. Through 03/31/13,the Merk Currency Enhanced U.S. Equity Fund Investor Shares had a 1-year return of +11.09%, and a return of +21.00% since inception on 09/12/2011; the Merk Absolute Return Currency Fund Investor Shares had a 1-year return of -2.03%, a 3-year return of -1.20%, and a return of -1.66% since inception on 09/09/2009; the Merk Asian Currency Fund Investor Shares had a 1-year return of +0.11%, a 3-year return of +0.51%, and a return of -0.36% since inception on 04/01/2008; the Merk Hard Currency Fund Investor Shares had a 1-year return of -0.15%, a 3-year return of +2.40%, a 5-year return of +1.39% and a return of +4.72% since inception on 5/10/2005. All performance figures greater than 1-year are annualized unless otherwise specified. The Investor Share expense ratio of each Fund is 1.30%.

Calculations for period 12/31/2007 - 12/31/2012.

The chart below illustrate the potential portfolio benefits an allocation to currencies may provide investors.

Source: Bloomberg, Merk Investments

The following indicies are used as proxies for the respective allocations:

• Equities/Fixed Income: Dow Jones U.S. Moderate Index.
• Currencies: Deutsche Bank Currency Returns (DBCR) Index.

All calculations based on daily data since (12/31/2002 - 12/31/2012).