Mountain View, CA (PRWEB) September 30, 2010
Merk Investments LLC, manager of the Merk Funds, announces the release of the inaugural Merk Currency Asset Class Survey.
With $4.0 trillion in average daily turnover, dwarfing both equity and debt markets globally, the currency market has grown significantly in the past decade. While still considered an exotic alternative investment by many, there has been a significant growth in the number and assets of currency investment funds available to individual investors. Through the annual survey, Merk Investments sheds light on key currency trends and statistics relevant to the investing public.
“The currency asset class provides portfolio diversification through its low correlation to other asset classes and potential profit opportunities resulting from market inefficiencies and macroeconomic trends,” said Axel Merk, president and CIO of Merk Investments. “Additionally, the currency asset class exhibits low levels of volatility and high liquidity relative to other assets, such as equities and fixed income,” according to Mr. Merk.
At the end of 2004, there was only one currency mutual fund available to investors. As of June 30, 2010, there were 43 listed currency vehicles including 14 currency mutual funds, 19 currency ETFs and 10 currency ETNs in the market. Within the same time span, currency funds grew from less than $250 million to over $6.5 billion in terms of assets managed, representing an average annual growth rate of over 80%, according to the Merk survey.
Of the 43 listed currency funds, 35 were directional currency plays relative to the U.S. dollar, while eight were non-directional currency investments, taking no pre-determined view on any one currency. Roughly half of the funds surveyed were aimed at tracking the performance of a single currency, with the remaining half invested in baskets comprised of multiple currencies.
In 2005, Merk launched its first currency fund, the Merk Hard Currency Fund (MERKX), with only $1 million in assets. Merk, the Authority on Currencies™, now manages around $500 million across three currency mutual funds, giving it over 30% market share of the currency mutual fund market. “We have expanded and solidified our position as the leader in the currency space, having become the largest mutual fund company focusing exclusively on currencies,” continued Mr. Merk. “Through the Funds, we are offering investors unique opportunities to add managed currency exposure to their portfolios,” concludes Mr. Merk.
To download the annual Merk Currency Asset Class Survey 2010, visit http://www.merkfunds.com/survey.html.
For more information, or to schedule an interview, please contact:
(650) 323 4341 x 115
Joe (at) merkinvestments(dot)com
Merk Investments LLC, is a Palo Alto, California, based SEC registered investment advisory firm managing currency mutual funds. For more information on Merk Investments or the Merk Funds, please visit http://www.merkfunds.com.
This information does not constitute a solicitation or an offer to buy or sell any investment security, nor provide investment advice. Merk Investments LLC.
Transaction fees and other restrictions may apply to invest through a broker. As with any mutual fund product, there is no guarantee that the funds will achieve their goals. Investors should consider the investment objectives, risks and charges and expenses of the Funds carefully before investing. This and other information is in the prospectus, a copy of which may be obtained by visiting the Funds’ website at http://www.merkfunds.com or calling 866-MERK FUND. Please read the prospectus carefully before you invest.
The Funds’ principal investment risks include, but are not limited to, currency exchange rate risk, foreign instrument risk and interest rate risk. For a more complete discussion of these risks please refer to the Funds’ prospectus. Foreside Fund Services, LLC, distributor.