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Merk Asian Currency Fund: Frequently Asked Questions
Find more answers in the Shareholder FAQ. What are the objectives of the Merk Asian Currency Fund?The Merk Asian Currency Fund is a mutual fund that invests in a basket of Asian currencies. The Fund seeks to protect against a fall in the purchasing power of the dollar relative to Asian currencies and mitigate stock market, credit and interest rate risk. How much of my portfolio should be in Asian Currencies?A classic asset allocation model assumes world financial markets in balance. When the global financial imbalances are severe, asset classes may not perform as historically anticipated. In these times, investors may want to consider moving some of their investments into a basket of currencies. Investment in a basket of currencies seeks to protect against a fall in the purchasing power of the dollar and mitigates stock market, credit and interest rate risk. How does the Merk Asian Currency Fund help diversify my portfolio?Diversification is the practice of reducing investment risk by spreading assets over several categories of investments. The Merk Asian Currency Fund helps you to diversify your portfolio and protect your capital against a decline in the dollar by providing easy access, through the fund, to a basket of Asian currencies. What are the criteria employed in determining the composition of the Merk Asian Currency Fund?Under normal market conditions, the Merk Asian Currency Fund invests at least 80% of the value of its net assets in securities or instruments that provide exposure to Asian currencies. The Fund normally invests in high-quality, short-term money market instruments denominated in Asian currencies or a combination of U.S. dollar denominated securities and forward currency contracts. Currency allocations may be adapted as monetary policies and economic environments evolve. Does the Merk Asian Currency Fund engage in tactical trading?The Merk Funds publish their currency allocations monthly; this allocation adapts as our analysis evolves. We use the term "adapt" and "evolve" to emphasize that allocation changes tend to be gradual. Tactical trading refers to short-term trading to take advantage of perceived opportunities. While the Fund is not prevented from engaging in tactical trading, tactical trading is not part of the Fund's investment process. |
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