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Merk Absolute Return Currency Fund ® (MABFX)
Merk Absolute Return Currency Fund

The Merk Absolute Return Currency Fund (MABFX) seeks to generate positive absolute returns by investing in currencies.

The Merk Absolute Return Currency Fund is a pure play on currencies, aiming to profit regardless of the direction of the U.S. dollar or traditional asset classes.

Fund Documents

 Fact Sheet (PDF)

 Prospectus / SAI (PDF)

 Semi/Annual Reports (PDF)

 XBRL, supplement (ZIP) *

  Ticker MABFX   Fund Inception September 9, 2009
  Expense Ratio 1.30%   Load No-Load Fund
  Assets1 $40.84 million (as of 10/31/2014)   Portfolio Manager Axel Merk, supported by the investment management team
  Dividends Click here for dividend summary   Institutional Shares Available
  Duration 0.29 years   The Fund is firmly committed to the short end of the yield curve
The Merk Absolute Return Currency Fund (MABFX)

Strategy Developments Investment Process


Currency AllocationSecurity HoldingsSectors


Minimum Investment

To learn more about the Merk Absolute Return Currency Fund, view this webinar.

Strategy Developments

  • Macro overlay enhancements
    • Integration of MERKX investment process
    • Active management
  • Risk overlay enhancements
    • Holistic approach
    • Independent volatility strategy

Management Developments

Merk has moved to a team approach in managing the Fund:

  • Axel Merk is primarily responsible for the management of the Fund
  • Mr. Merk relies on the support of the investment management team

The Fund's investment process integrates a Tactical Allocation and a Strategic Allocation.

The components of the investment process are detailed further below:

 

 

For the latest Fund’s currency exposures, please see the Currency Allocation section.

Below is the Fund's exposure as of October 31, 2014.

Region Currency
MABFX
Europe Euro
+1.6%
Norwegian Krone
+5.7%
Swiss Franc
-19.6%
British Pound
+55.3%
Swedish Krona
-9.7%
Australasia ex Japan Australian Dollar
-4.4%
New Zealand Dollar
-0.2%
Singapore Dollar
+10.0%
Japan Japanese Yen
-66.6%
North America Canadian Dollar
+23.0%
US Dollar
+4.9%
 

 

The Fund's sectors as of October 31, 2014.

Sector Percent
Non-U.S. Cash 1.1%
Non-U.S. Government - Australia 12.8%
Non-U.S. Government - Belgium 2.9%
Non-U.S. Government - Canada 3.9%
Non-U.S. Government - Ireland 4.3%
Non-U.S. Government - New Zealand 4.7%
Non-U.S. Government - Norway 4.1%
Non-U.S. Government - Sweden 17.4%
Regional Agency - Australia 7.4%
Regional Authority - Canada 10.4%
Supranational - Europe 4.4%
U.S. Cash Equivalent 2.1%
U.S. Treasury Bill 23.3%
Other Net Assets 1.2%

The Fund's security holdings as of October 31, 2014 are shown below:

Holding Currency Maturity Percent
Australian Government SER 119 6.25% AUD

4/15/15

4.6%
Belgium Treasury Certificates EUR 02/12/15
2.9%
Canadian Treasury Bill CAD 12/18/14
3.9%
European Investment Bank 3.125% EUR 10/15/15
4.4%
Irish Treasury Bill EUR 12/22/14
4.3%
Manitoba Province 4.80% CAD 12/03/14
2.8%
New South Wales Treasury Corp 6.00% AUD 04/01/15
3.7%
New Zealand Government 6.00% NZD 04/15/15
4.7%
Norwegian Treasury Bill NOK 12/17/14
4.1%
Province of New Brunswick 4.50% CAD 02/04/15
3.7%
Province of Alberta 2.75% CAD 12/01/14
3.8%
Queensland Treasury Corp SER 14 5.75% AUD 11/21/14
3.7%
Swedish Treasury Bill SEK 12/17/14
17.4%
Treasury Corp Victoria SER 815 8.00% AUD 8/17/15
4.5%
U.S. Treasury Bill USD 11/06/14
6.1%
U.S. Treasury Bill USD 12/26/14
2.4%
U.S. Treasury Bill USD 03/26/15
14.7%
Western Australian Treasury 7.00% AUD 04/15/15
3.7%

The Fund accepts investments in the following minimum amounts:

  Minimum Initial Investment Minimum Additional Investment
Standard Accounts $2,500 $100
Traditional and
Roth IRA Accounts
$1,000 $100
   

Currency symbols: AUD Australian dollar; CAD Canadian dollar; CHF Swiss Franc; EUR euro; GBP British pound; JPY Japanese yen; NOK Norwegian krone; NZD New Zealand dollar; SGD Singapore dollar; SEK Swedish krona; USD U.S. dollar

Fund holdings are subject to change without notice.

Currency exposure includes unsettled trades, market or accrued cost value of debt securities held, money market deposit account, capital shares sold, accrued income, as well as effective exposure through currency forward contracts, if applicable. US Dollar, net, includes net other assets and liabilities. All percentages are of total net assets. Top holdings currency exposure is before settlements, if any. Sector allocation adheres to balance sheet classifications and makes no adjustment for gold futures exposure. Please also consult with the latest annual or semi-annual report for complete information on assets, liabilities and applicable notes as of the publication date for the respective reports.

*These zipped files are in the Extensible Business Reporting Language format and can only be viewed using an XBRL viewer. If you do not have access to an XBRL reader, please visit the SEC website.

Click here to download the Adobe® Reader® to view and print the PDF version of the Fund Fact Sheet.

Source for all currency data: Bloomberg. All performance figures versus U.S. dollar, unless otherwise stated.

1Assets reflect investor and institutional shares combined.

As with any mutual fund product, there is no guarantee that the fund will achieve its goals. Investment return and principal value will vary and shares may be worth more or less at redemption than at original purchase; the Fund is not a substitute for a money market fund. Investors should consider the investment objectives, risks and charges and expenses of the Merk Absolute Return Currency Fund carefully before investing. The prospectus contains this and other information about the Merk Absolute Return Currency Fund. To obtain a prospectus, please download it now or call (866) MERK FUND. The prospectus should be read carefully before investing.

Since the Fund primarily invests in foreign currencies, changes in currency exchange rates will affect the value of what the Fund owns and the price of the Fund’s shares. Investing in foreign instruments bears a greater risk than investing in domestic instruments for reasons such as volatility of currency exchange rates and, in some cases, limited geographic focus, political and economic instability, and relatively illiquid markets. The Fund is subject to interest rate risk which is the risk that debt securities in the Fund’s portfolio will decline in value because of increases in market interest rates. The Fund may also invest in derivative securities which can be volatile and involve various types and degrees of risk. For a more complete discussion of these and other Fund risks please refer to the Fund’s prospectus.