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.
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.
The Fund publishes its currency exposure on a monthly basis. Below is the Fund's exposure as of April 30, 2013.
Region
Currency
MABFX
Europe
Euro
40.1%
Norwegian Krone
0.0%
Swiss Franc
-30.1%
British Pound
10.0%
Swedish Krona
30.1%
Australasia ex Japan
Australian Dollar
-19.9%
New Zealand Dollar
5.0%
Singapore Dollar
-23.2%
Japan
Japanese Yen
-26.7%
North America
Canadian Dollar
15.1%
US Dollar
-0.5%
The Fund publishes its sector exposure on a monthly basis. Sectors as of April 30, 2013.
Sector
Percent
Non-U.S. Government - Australia
21.3%
U.S. Treasury Bill
14.6%
Regional Agency - Australia
13.5%
Supranational - Europe
4.8%
Non-U.S. Government - Canada
4.6%
Non-U.S. Government - New Zealand
4.6%
Non-U.S. Government - Sweden
4.5%
Non-U.S. Government - Norway
4.4%
Non-U.S. Government - France
4.2%
Non-U.S. Government - Netherlands
4.2%
Non-U.S. Government - Belgium
4.2%
Non-U.S. Government - Germany
4.2%
Supranational - Norway
4.1%
Regional Agency - Canada
3.9%
The Fund publishes its security holdings on a monthly basis. Security holdings as of April 30, 2013 are shown below:
Holding
Currency
Maturity
Percent
Australian Government 6.50%
AUD
05/15/13
21.3%
U.S. T-Bill
USD
06/13/13
14.6%
European Stability Mechanism Bill
EUR
06/06/13
4.8%
Canadian Treasury Bill
CAD
05/23/13
4.7%
New South Wales Treasury Corp 5.50%
AUD
08/01/13
4.6%
Western Australian Treasury 8.00%
AUD
06/15/13
4.6%
New Zealand Government 6.00%
NZD
04/15/15
4.6%
Swedish Treasury Bill
SEK
05/15/13
4.5%
Norwegian Treasury Bill
NOK
06/19/13
4.4%
Queenlands Treasury Corp. 6.00%
AUD
08/21/13
4.3%
France Treasury Bill
EUR
09/19/13
4.2%
Netherlands Treaury Certificate
EUR
05/31/13
4.2%
Belgium Treasury Bill
EUR
07/18/13
4.2%
German Treasury Bill
EUR
06/12/13
4.2%
European Investment Bank 4.50%
NOK
05/15/13
4.1%
Province of British Colimbia 8.50%
CAD
08/23/13
3.9%
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.
Fact Sheet
XBRL*
