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FUNDS

July 2012

Merk Webinar: Quarter 2 Update!

Axel Merk, President and CIO!

Emily Meyer, Director of Distribution!

Merk Investments • 555 Bryant Street, #455 • Palo Alto, CA 94301!

Please read important risk disclosure and Fund related information towards the end of this presentation.!

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Q2 Update

• Introduc5on

– Emily Meyer

• Economy and Currencies

– Axel Merk

• Merk Funds

– Axel Merk & Merk PorBolio Team

• Q&A

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Milestones Q2

• MERKX:

– Great choice for foreign currency exposure”

(Morningstar 5/2012)

– Morningstar Pillars (Morningstar 6/2012)*

• Process

• Performance

• People

• Parent

• Price

• Axel Merk

– “10 Fund Managers to Watch” (Investment News 6/2012)

*According to Morningstar, the new Analyst Rating is based on the analysts conviction in the funds

ability to outperform its peer group and/or relevant benchmark on a risk-adjusted basis over the long term.

Morningstar evaluates funds based on five key pillars: Process, Performance, People, Parent, and Price.

Analysts assign a rating of Positive, Neutral, or Negative to each pillar.

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS Upcoming Events Q3

24-­‐26 Aug The Money Show (San Francisco, CA) Speaker

13 Sept CFA Society Colorado (Denver, CO) Speaker

13-­‐15 Sept Business & Wealth Management Forum (Denver, CO) Speaker / Exhibitor

18 Sept CE Credit Webinar: Diversifica5on Through Currency Asset Class Speaker

22 Sept Hard Asset Conference (Chicago, IL) Speaker

29 Sept-­‐ 2 Oct FPA Na5onal Conference (San Antonio, TX) Speaker / Exhibitor

3-­‐5 Oct Morningstar ETF Conference (Chicago, IL) Speaker / Exhibitor

3-­‐5 Oct The Money Show (Chicago, IL) Speaker / Exhibitor

9-­‐12 Oct Fiduciary Gatekeeper Summit (Boston, MA) Speaker

18 Oct Q3 Merk Quarterly Webinar Speaker

5 Nov FPA Houston (Houston, TX) Speaker

5 Nov AAII Houston (Houston, TX) Speaker

13-­‐16 Nov Schwab Impact (Chicago, IL) Exhibitor

8 Dec AAII Phoenix (Phoenix, AZ) Speaker

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Global Uncertainty

United

States!

QE3?!

Eurozone!

Euphoria &

Panic!

Asia!

Boom or

Bust?!

World!

Contagion?!

With global uncertainty on the rise, investors are concerned… !

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Central Bank

Balance Sheets

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Growth vs. Austerity

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Feeling Protected?

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

U.S. – Eurozone -­‐ Asia

Countries act in their perceived self-interest; currencies respond.!

U.S.

• Contagion Fears

• Dovish Fed

• Monetary s5mulus in

face of fiscal paralysis

• Fed to talk down

yield curve, targe5ng

weak dollar?

• Bleak fiscal outlook

• Bond market at risk?

Eurozone

• Euphoria & Panic

• ECB flooding banks

with liquidity,

“splilng coupon”

with banks

• Sovereigns driven by

fear of inac5on

versus cost of ac5on

Asia

• Contagion Fears

• Currency policies

driven by infla5on

• Advanced economies

compete on value

• Weak economies

compete on price

Dollar Past Peak?!

Euro Uncertainty!

Strong RMB /

Weak VND!

RMB: Chinese Renminbi ECB: European Central Bank! !VND: Vietnamese Dong!

The ECB charges 1%, allowing banks to buy debt, pocketing all but 1% of the coupon, thus “coupon splitting”. In contrast, the Fed pockets all interest received when purchasing

bonds with its “quantitative easing” !

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

U.S. Dollar Value at Risk

%(!#

!"!!(!#

%&!#

%!!#

USD/Other

Currencies

!"!!'$#

!"!!'!#

U.S. Dollar Index

*!#

)!#

(!#

&!#

USD/Gold

!"!!&$#

!"!!&!#

!"!!%$#

!"!!%!#

!"!!!$#

USD in oz Gold

!#

+,-.!&#

+/0.!&#

+,-.!'#

+/0.!'#

+,-.!(#

+/0.!(#

+,-.!$#

+/0.!$#

+,-.!)#

+/0.!)#

+,-.!1#

+/0.!1#

+,-.!*#

+/0.!*#

+,-.!2#

+/0.!2#

+,-.%!#

+/0.%!#

+,-.%%#

+/0.%%#

+,-.%&#

+/0.%&#

!"!!!!#

USD/Gold (right hand scale): Inverse of gold price; how many oz gold one $ buys. !

USD/Other Currencies (left hand scale): U.S. Dollar Index (DXY Index).!

Source: Bloomberg, data for period 01/01/2002 – 07/12/2012, Merk Investments.!

www.merkfunds.com © 2012 MERK FUNDS℠ !


Merk Hard Currency Fund!

FUNDS

Merk Mutual Funds

Seeks to profit from a rise in hard currencies

relative to the U.S. dollar!

Merk Asian Currency Fund!

Seeks to profit from a rise in Asian currencies

relative to the U.S. dollar!

Merk Absolute Return Currency Fund!

Merk Currency Enhanced U.S. Equity Fund!

Seeks absolute returns investing in currencies!

regardless of prevailing market conditions!

Actively manages currency risk of U.S. equities,

seeks to outperform S&P 500!

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

The Merk Team

− Strong Team: 1 CIO, 1 economist, 5 analysts (2 quant, 3 macro)!

− Top caliber recruits attracted by unique approach,

intellectual challenge & opportunity!

− Internal development, cross-training, CFA program!

− Natives of Europe, Asia, commodity countries!

− Fluency in Mandarin, German, French, Spanish, Finnish, Swedish!

portfolio management team country of origin!

Merk Headquarters – Palo Alto, CA!

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Merk Hard Currency Fund

Performance as of 6/30/2012

MERKX

S&P 500 Index

Inverse USDX

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 www.merkfunds.com for most recent month end performance. The Fund’s

Investor Shares expense ratio is 1.30%. Calculations for period 5/10/2005 (inception of Investor

Shares [MERKX]) - 5/10/2005. One cannot invest directly in an index, nor is an index representative of

the Funds' portfolios. Through 6/30/2012 the Merk Hard Currency Fund Investor Shares had a 1-year

return of -6.79%, a 3-year annualized return of +3.89%, a 5-year annualized return of +4.09% and an

annualized return of +4.81% since inception on 5/10/2005.!

Source: Bloomberg, Merk Investments!

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Merk Hard Currency Fund

Performance as of 6/30/2012!

MERKX Inverse USDX MSCI EAFE S&P 500

Index

Q2 2012 -­‐2.99% -­‐3.21% -­‐8.37% -­‐2.75%

1 year -­‐6.79% -­‐8.97% -­‐16.67% +5.45%

3 year +3.89% -­‐0.61% +2.88% +16.40%

5 year +4.09% +0.07% -­‐8.85% +0.22%

Since

incep5on

(5/10/2005)

annualized

+4.81% +0.48% -­‐0.60% +4.36%

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 www.merkfunds.com for most recent month end performance. The

Fund’s Investor Shares expense ratio is 1.30%.!

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Merk Hard Currency Fund

5.00%!

Risk/Return Profile, 5 Year Data!

Merk Hard Currency Fund!

4.00%!

Annualized Returns!

3.00%!

2.00%!

1.00%!

Inverse U.S. Dollar Index!

S&P 500 Index!

0.00%!

0.00%! 5.00%! 10.00%! 15.00%! 20.00%! 25.00%! 30.00%!

-1.00%!

Annualized Standard Deviation of Returns!

MSCI EAFE Index!

Source: Merk Investments, Bloomberg!

Calculations for period 06/30/2007 - 06/30/2012; 5-year returns annualized!

© Merk Investments, LLC!

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Merk Asian Currency Fund

Performance as of 6/30/2012

S&P 500 Index

ADXY Index

MEAFX

MEAFX ADXY* S&P 500 Index

Q2 2012 -­‐1.68% -­‐1.42% -­‐2.75%

1 year -­‐3.90% -­‐3.05% +5.45%

3 year +0.20% +2.28% +16.40%

Since incep5on

(4/1/2008) annualized

-­‐0.84% -­‐0.08% +2.11%

* Gross return of ADXY, not including cost of investing. MEAFX return is net of expenses.!

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 www.

merkfunds.com for most recent month end performance. The Fund’s Investor Shares expense ratio is 1.30%.!

www.merkfunds.com © 2012 MERK FUNDS℠ ! Source: Bloomberg, Merk Investments!


FUNDS Merk Asian Currency Fund!

Risk/Return Profile, 3 Year Data!

18.00%!

S&P500 Index!

16.00%!

14.00%!

Annualized Returns!

12.00%!

10.00%!

8.00%!

6.00%!

4.00%!

ADXY Index!

2.00%!

0.00%!

Merk Asian Currency

Fund!

0.00%! 5.00%! 10.00%! 15.00%! 20.00%! 25.00%!

Annualized Standard Deviation of Returns!

Source: Bloomberg, Merk Investments

Calculations for period 6/30/2009 - 6/30/2012; 3-year returns annualized

© Merk Investments, LLC

www.merkfunds.com © 2012 MERK FUNDS℠ !


Merk Absolute Return Currency Fund

FUNDS Performance as of 6/30/2012

S&P 500 Index

MABFX

MABFX

S&P 500 Index

Q2 2012 -­‐9.60% -­‐2.75%

1 year -­‐13.75% +5.45%

Since incep5on

(9/9/2009) annualized

-­‐4.86%

+12.63%

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 www.

merkfunds.com for most recent month end performance. The Fund’s Investor Shares expense ratio is 1.30%.!

www.merkfunds.com © 2012 MERK FUNDS℠ ! Source: Bloomberg, Merk Investments!


FUNDS

Merk Absolute Return Currency Fund

Recent Developments

• Strategy Developments!

— Macro overlay enhancements!

!Integration of MERKX investment process!

!Active management!

— Risk overlay enhancements!

!Holistic approach!

!Independent volatility strategy!

• Management Developments!

— Moving to team-managed approach Aug 2012!

— Axel Merk primarily responsible

• Investment Developments!

— Axel Merk increased his own investment!

I have significantly increased my personal investment in the Fund.!

- Axel Merk!

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Merk Currency Enhanced

U.S. Equity Fund

Ac5vely manages currency risk of U.S. equi5es,

seeks to outperform S&P 500.

• S&P 500 + Currency Overlay

• Seeks to outperform the S&P 500 Index.

Currency Overlay may enhance risk adjusted equity returns.

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Merk Currency Enhanced

U.S. Equity Fund

U.S. Equities

S&P 500

Currency Overlay

Forward Currency

Contracts

Merk Currency

Enhanced U.S.

Equity Fund

U.S. Dollar

Risk

Quan5ta5ve Analysis

Risk Overlay

Macro Overlay

Ac5ve Currency

Management

Collateralized by U.S.

Equi5es.

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Merk Currency Enhanced U.S. Equity Fund

Performance as of 6/30/2012

MUSFX

Q2 2012

Since incep5on

(9/12/2011) cumula5ve

MUSFX

-­‐12.00%

+6.46%

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 www.merkfunds.com for most recent

month end performance. The Fund’s Investor Shares expense ratio is 1.38%.!

www.merkfunds.com © 2012 MERK FUNDS℠ !


FUNDS

Disclosure

Information contained herein may discuss Fund performance and holdings. Performance data

quoted 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. For performance current to the most recent month-end, please visit our website at

www.merkfunds.com/fund.

Since the Funds primarily invest in foreign currencies, changes in currency exchange rates affect

the value of what the Funds own and the price of the Funds 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, emerging market risk, and relatively illiquid markets. The Funds are subject to

interest rate risk, which is the risk that debt securities in the Funds portfolio will decline in value

because of increases in market interest rates. The Funds may also invest in derivative securities,

such as forward contracts, which can be volatile and involve various types and degrees of risk. If

the U.S. dollar fluctuates in value against currencies the Funds are exposed to, your investment

may also fluctuate in value. The Merk Currency Enhanced U.S. Equity Fund may invest in

exchange traded funds (ETFs). Like stocks, ETFs are subject to fluctuations in market value, may

trade at prices above or below net asset value and are subject to direct, as well as indirect fees and

expenses. 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 each Fund's prospectus."

Before investing you should carefully consider the Fund's investment objectives, risks, charges and

expenses. This and other information is in the prospectus, a copy of which may be obtained by

calling 1-866-MERK FUND or visiting the Fund's website. Please read the prospectus carefully

before you invest. Foreside Fund Services, LLC, distributor."


FUNDS

July 2012

Merk Webinar: Quarter 2 Update!

Axel Merk, President and CIO!

Emily Meyer, Director of Distribution!

Merk Investments • 555 Bryant Street, #455 • Palo Alto, CA 94301!

www.merkfunds.com © 2012 MERK FUNDS℠ !

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