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Merk Asian Currency Fund (MEAFX)
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The Merk Asian Currency Fund (MEAFX) seeks to profit from a rise in Asian currencies versus the U.S. dollar.
The Merk Asian Currency Fund typically invests in a basket of Asian currencies. Asian currencies the Fund may invest in include, but are not limited to, the currencies of China, Hong Kong, Japan, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.
Download the Merk Asian Currency Fund Fact Sheet (PDF). |
| The Merk Asian Currency Fund (MEAFX) as of December 31, 2009 |
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Country Allocation
Forward Contracts
Security Holdings
Minimum Investment |
The Fund publishes its currency exposure on a monthly basis. Below is the Fund's exposure to Asian currencies; along with the composition of the Asian Currency Index (ADXY):
| Region |
Currency |
Currency
Symbol |
Percent |
ADXY |
| Asia |
Chinese Yuan Renminbi |
CNY |
50.7% |
33.9% |
| Hong Kong Dollar |
HKD |
1.2% |
11.4% |
| Indian Rupee |
INR |
12.3% |
6.3% |
| Indonesian Rupiah |
IDR |
0.0% |
3.3% |
| Japanese Yen |
JPY |
4.7% |
- |
| South Korean Won |
KRW |
6.5% |
14.2% |
| Malaysian Ringgit |
MYR |
6.6% |
5.2% |
| Philippines Peso |
PHP |
0.0% |
2.3% |
| Singapore Dollar |
SGD |
10.9% |
10.3% |
| Taiwan New Dollar |
TWD |
7.4% |
8.2% |
| Thailand Baht |
THB |
0.0% |
4.9% |
| U.S. |
U.S. Dollar, net |
USD |
-0.2% |
The Fund publishes net open forward and non-deliverable forward contracts on a monthly basis*:
| Currency |
Settlement |
Percent |
| CNY |
01/22/10 |
23.5% |
| CNY |
02/12/10 |
4.8% |
| CNY |
02/22/10 |
5.7% |
| CNY |
03/19/10 |
16.6% |
| HKD |
03/19/10 |
1.2% |
| INR |
02/19/10 |
5.2% |
| INR |
03/19/10 |
7.1% |
| JPY |
01/22/10 |
1.2% |
| JPY |
02/19/10 |
0.7% |
| JPY |
03/19/10 |
2.8% |
| KRW |
02/19/09 |
2.7% |
| KRW |
03/19/09 |
3.9% |
| MYR |
02/19/10 |
4.1% |
| MYR |
03/19/10 |
2.5% |
| SGD |
01/22/10 |
2.0% |
| SGD |
02/19/10 |
3.1% |
| SGD |
03/19/10 |
5.8% |
| TWD |
01/22/10 |
3.7% |
| TWD |
02/22/10 |
1.5% |
| TWD |
03/19/10 |
2.2% |
As an example, CNY 01/22/10, 23.5% means that 23.5% of the net assets of the Fund are contracted to buy Chinese renminbi (selling U.S. dollar) with a settlement date of 01/22/10; as CNY is a non-deliverable currency, any profit or loss will settle in U.S. dollars. All forward contracts are marked to market daily.
The Fund publishes its security holdings on a monthly basis:
| Holding ** |
Currency |
Maturity |
Percent |
| U.S. T-Bill |
USD |
01/14/10 |
12.7% |
| U.S. T-Bill |
USD |
01/28/10 |
14.1% |
| U.S. T-Bill |
USD |
02/11/10 |
5.6% |
| U.S. T-Bill |
USD |
02/25/10 |
14.1% |
| U.S. T-Bill |
USD |
03/25/10 |
9.1% |
| U.S. T-Bill |
USD |
04/29/10 |
11.3% |
| U.S. T-Bill |
USD |
05/20/10 |
16.9% |
| U.S. T-Bill |
USD |
06/17/10 |
16.2% |
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 |
Accounts with
Systematic Investment Plans |
$1,000 |
$100 |
Qualified Retirement, Pension
or Profit Sharing Plans |
$1,000 |
$100 |
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Click here to download the Adobe® Reader® to view and print the PDF version of the Fund Fact Sheet.
* The Fund may invest substantially in forward foreign currency contracts or other derivative instruments. Because delivery and settlement of forward contracts takes place in the future, the Fund will retain the assets it intends to use to settle the contracts and invest these assets in various U.S. fixed income instruments that the Adviser expects will generate income for the Fund. Under such circumstances, the Fund may not have a material portion of its assets invested in the securities of issuers located in Asian markets. The value of the Fund’s investments in U.S. fixed income instruments (to the extent used to cover the Fund’s net exposure under the forward foreign currency contracts and similar instruments) and forward contracts and other instruments that provide investment exposure to Asian currencies will be counted for purposes of the Fund’s 80% policy.
** Cash holding (including non-U.S. cash and Citigroup Dollars on Deposit Cash Account) are excluded from holdings report.
The Bloomberg-JP Morgan Asian Currency Index (ADXY) is a trade and liquidity weighted index of a basket of Asian currencies, excluding the yen, compared to the U.S. dollar. It is not possible to invest directly in an index.
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 Asian Currency Fund carefully before investing. The prospectus contains this and other information about the Merk Asian 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.
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