The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:An OUNZ of Mutual Fund Partnership Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, November 5, 2015

An OUNZ of Mutual Fund Partnership

Reported by Neil Anderson, Managing Editor

A niche mutual fund boutique is teaming up with a larger shop to help distribute its year-and-a-half-old ETF. And if the partnership goes well they could take things up a notch

Axel Merk
Merk Investments
President, Chief Investment Officer
Last week Merk Investments [profile] and Van Eck Global [profile] sealed a marketing deal. The Merk Gold Trust ETF (OUNZ) has been rebranded as the Van Eck Merk Gold Trust, and Van Eck will be marketing the ETF. The ETF gives its shareholders the option to take physical delivery of the gold behind it, "if and when desired".

"We remain the sponsor. We're also going to continue to independently market," Merk president and chief investment officer Axel Merk tells MFWire. "Van Eck is going to help us to get the word out ... Other than that not much is changing."

"We are very excited about [the partnership]," Merk says. "We think that this product can be much bigger."

Merk launched the ETF in May 2014, and the ETF has since grown to more than $80MM in AUM. Over the same time frame, Merk notes, "other gold commodities vehicles lost assets."

"We have a sales force of one ... We've been looking for ways to boot our distribution," Merk says. "Van Eck was very interested in having a physical gold product."

The discussions, Merk says, began earlier this year. Under the terms of the deal, if the partnership is successful Van Eck can take more control.

"Once AUM crosses $500 million, they have the option to take over as sponsor," Merk says. "The economics of the agreement won't change, though."

The partnership is a first for both Merk and Van Eck. Merk also offers currency mutual funds, and he's open to considering similar marketing partnerships for that side of the business.

As for Van Eck, ETF business product manager Brandon Rakszawski describes the deal as a "natural partnership."

"We have a long history of offering gold- and commodity-related investments," Rakszawski tells MFWire. "Merk has really provided the market with what we believe to be a unique, attractive way to gain exposure to gold ... We were happy to partner with Merk to expand the distribution reach of the ETF."

Rakszawski says the deal "was really an isolated opportunity," though Van Eck is still on the prowl for other deals.

"We are always open to new and innovative ways to provide exposures to sectors, classes, countries," Rakszawski says, calling Van Eck opportunistic when it comes to "strategic investment opportunities." 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. 2024 ICI Leadership Summit, May 21-23
  2. MFDF webinar - Mutual Fund Director Compensation: the MPI Annual Survey (2024), May 21
  3. Schwab Institutional Investor Day, May 22
  4. IMEA webinar - Opportunities in the Evolving Wealth Management Market, May 22
  5. Raymond James 2024 Analyst & Investor Day, May 23
  6. WE SoCal - How to Lead With Impact: Fireside Chat With Lorraine Le, May 23
  7. MFDF Conference of Fund Leaders Forum, June 5
  8. MFDF in-person outreach: Continuing Regulatory Impacts on Fund Boards, June 11
  9. MFDF webinar - Digital Assets in the Fund Space (Part 1 of 2), June 12
  10. 2024 MMI Leadership Pathway Seminar, Jun 12-14
  11. 2024 Nicsa Fearless Leadership Symposium, June 12
  12. Expect Miracles East Coast Classic 2024, June 13
  13. MFDF webinar - Lessons Learned from the Regional Bank Volatility and the Impact on Registered Funds, June 18
  14. MFDF Director Discussion Series - Open Forum (Philadelphia), June 20
  15. New York YPEM Cornhole Classic, June 25
  16. Morningstar Investment Conference Conference 2024, Jun 26-27
  17. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 16
  18. MFDF Director Discussion Series - Open Forum via Zoom, July 17
  19. MFDF Director Discussion Series - Open Forum (New York), July 23
  20. 2024 MMI Annual Conference, Oct 15-17
  21. 5th Annual ETFGI Global ETFs Insight Summit, October 29
  22. MFDF webinar - Digital Assets in the Fund Space (part 2 of 2), November 7
  23. MFDF 2025 Directors' Institute, January 27 - 29, 2025
  24. MFDF 2025 Fund Governance & Regulatory Insights Conference, March 6 - 7, 2025

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use