Yen no longer Hard Currency

Merk Mutual Funds is pulling the trigger on the yen. Having added theyen as a hard currency at the peak of the financial crisis, theappointment of Naoto Kan as Finance Minister in Japan has led Merk tono longer treat the yen as a hard currency.

Merk Mutual Funds is pulling the trigger on the yen. Having added the yen as a hard currency at the peak of the financial crisis, the appointment of Naoto Kan as Finance Minister in Japan has led Merk to no longer treat the yen as a hard currency. In a more detailed analysis to be released, President and Chief Investment Officer Axel Merk cautions the appointment may be a major turning point for the yen.

Until the full analysis is available, please feel free to contact us with questions. We have eliminated the yen not only from the Merk Hard Currency Fund (MERKX), but also from the Merk Asian Currency Fund (MEAFX). For the Merk Absolute Return Currency Fund (MABFX) that seeks absolute returns by investing in currencies, the investment process is foremost driven by a quantitative model, supplemented by a risk and macro overlay; MABFX currently has neither a long, nor a short position in the yen. Currency exposures are subject to change without notice.

Please sign up for our upcoming Webinar on Thursday, January 21, 2010 for an update on the economy and currencies.

Axel Merk
President and Chief Investment Officer
Merk Mutual Funds

Before investing in the Merk Funds, you should carefully consider the Funds’ investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.merkfunds.com. Please read the prospectus carefully before you invest.

The Funds primarily invest in foreign currencies and as such, changes in currency exchange rates will affect the value of what the Funds own and the price of the Funds’ shares. The Funds are also subject to interest rate risk The Funds may also invest in derivative securities which can be volatile and involve various types and degrees of risk. As a non-diversified fund, the Merk Hard Currency Fund will be subject to more investment risk and potential for volatility than a diversified fund because its portfolio may, at times, focus on a limited number of issuers. For a more complete discussion of these and other Fund risks please refer to the Funds’ prospectuses. Foreside Fund Services, LLC, distributor.