Merk Absolute Return Currency Fund Quarterly Fund Commentary And Attribution

Merk Absolute Return Currency Fund Inv (MABFX)


The Merk Absolute Return Currency Fund seeks to generate positive absolute returns by investing in currencies. The Fund is a pure play on currencies, aiming to profit regardless of the direction of the U.S. dollar or traditional assets classes.

Since implementation of strategy enhancements on June 30, 2012 through March 31, 2019, the Fund had a cumulative return of +16.46% (annualized +2.29%) at an annualized volatility of 6.24%.

In Q1, the Fund benefitted from a renewed risk-on sentiment of the broader market at the start of the year, actively exploiting sentiment changes in commodities currencies.

While we do not believe that a recession in the U.S. is imminent, we are concerned that global growth shows signs of fatigue.

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