Merk Investments LLC
has inked a distribution deal with Fidelity for its flagship offering, the Merk Hard Currency Fund
, a company official told the MFWire
"We're available on Fidelity as of March 27," said Axel Merk
, president of the Palo Alto, California-based asset manager.
The fund, launched in May 2005, seeks to protect investors against declines in the US dollar by investing in a basket of hard currencies of countries possessing strong monetary policies.
Last September, the no-load fund landed a spot on Schwab's
OneSource platform. It is also available through E*Trade
, among others.
Merk said his firm is working with TD Waterhouse
and is likewise in talks with Vanguard
for distribution opportunities.
Ten months after its rollout, the fund has attracted $10 million of assets, Merk said. "We're glad to see that happening as a firm that was relatively unknown a year ago," he said.
The firm, Merk said, has been successful in selling to retail investors and has been gaining traction in the advisor and institutional side of the market.
He said the fund's feat highlights the demand for hard currency diversification and with some economists predicting the current account deficit to balloon to $1 trillion this year, Merk sees more investors growing concerned that a further weakening may be in the offing for the US dollar.
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