Press Release: Merk Currency Enhanced U.S. Equity Fund Has Bettered S&P 500
Palo Alto, CA (PRWEB) July 09, 2013 -- PALO ALTO, CA. July 09, 2013 – With a 1-year performance of 32.38% as of June 30, 2013, the Merk Currency Enhanced U.S. Equity Fund (MUSFX) outperformed all of its peers in the Bloomberg Blend – Large Cap category for the 1-year period and outdid the S&P 500 that returned 20.60% over the same period*. Since inception in September 2011, the Fund has had an annualized return of 21.00 %.
The Fund’s performance data represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Please visit http://www.merkfunds.com for most recent month end performance. The Fund’s expense ratio for the Investor Shares is 1.38%.
The Merk Currency Enhanced U.S. Equity Fund (MUSFX) combines a passive investment in U.S. equities with an active currency overlay, seeking to generate total returns. The Fund actively manages U.S. dollar and other currency risk while concurrently providing investment exposure to the S&P 500 Index. The currency overlay of MUSFX follows a similar investment process to that of the Merk Absolute Return Currency Fund (MABFX), seeking to achieve positive absolute returns from the fund’s exposure to currencies, regardless of the direction of the market.
“The combination of U.S. equities and international currencies may bring portfolio benefits similar to adding non-US equity exposure,” explains Axel Merk, President and Chief Investment Officer of Merk Investments, the manager of Merk Funds. “The Currency Enhanced U.S. Equity Fund aims to add value by managing currency risk, where we believe the key profit opportunities of international investing lie,” Merk continues.
Analyst Nick Reece of the Merk Portfolio Management Team expands: “Given the unique nature of the currency markets, an actively managed “long/short” currency strategy may be able to generate attractive returns with relatively low volatility. Laying that ‘portable alpha’ onto the returns of the passive S&P 500 Index may provide investors with added returns in the stock market upswings, and some buffering in the downturns.”
Merk is the only mutual fund company with a primary focus on adding value by managing currency risk. Merk White Papers and other primary research on the currency asset class can be found at http://www.merkfunds.com. The Merk Funds® include: the Merk Hard Currency Fund® (MERKX), the Merk Asian Currency Fund® (MEAFX), the Merk Absolute Return Currency Fund® (MABFX) and the Merk Currency Enhanced U.S. Equity Fund® (MUSFX). The Merk Funds provide investors with the opportunity to add managed currency exposure to their portfolios, which may provide valuable diversification benefits.
For important information about the Merk Funds, including their holdings, how to obtain a prospectus and how to invest, please visit http://www.merkfunds.com.
For more information, or to schedule an interview, please contact:
Joe Paone
Merk Investments LLC
(650) 323 4341
pr [at] merkinvestments.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.
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. In addition, the Fund is not a money market fund and therefore it does not seek to maintain a stable net asset value (NAV). For a more complete discussion of these and other Fund risks, please refer to the Fund’s prospectus.
Foreside Fund Services, LLC, distributor.
S&P 500 Index: a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. Performance figures assume that all dividends are reinvested. An investor cannot invest directly in an index.
*Source: Bloomberg. The Bloomberg Blend – Large Cap category includes 425 funds as of 06/30/2013.
Alpha: A risk-adjusted measure of the active return of a fund.
Joe Paone, Merk Investments LLC, (650) 323-4341 x115, [email protected]
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