Merk Asian Currency Fund: Advisor's Process

The currency exposure allocations for the Merk Asian Currency Fund will be determined and periodically revised based on both quantitative and qualitative analysis.

Quantitative factors that Merk Investments (the "Adviser") may consider include a country's gross domestic product; its trade and current account balance with the United States; its interest rates; and the volatility of its currency relative to other currencies.

Qualitative factors that the Adviser may consider include an analysis of monetary policies pursued by central banks and economic environments; a country's perceived political stability; the risk of government intervention in its financial markets; and proprietary analysis on the outlook of a country's currency.

Once the Adviser has allocated the currency exposure levels for the Fund the Adviser will select instruments to create a liquid portfolio of short duration. The Adviser may adapt the currency allocations as its analysis of monetary policies and economic environments or other considerations it deems relevant evolve.

To try to reduce interest rate risk to its portfolio, the Fund will only buy money market instruments with effective maturities of one year or less at the time of purchase. The Adviser may sacrifice yield in return for high credit quality of debt securities. The Adviser may exclude exposure to certain currencies if, in the Adviser's opinion its analysis does not support the potential for the currency's appreciation.

The Fund will specifically seek exposure to the currency risk of select Asian currencies. The Adviser will invest in a basket of Asian currencies to reduce the exposure to the risks of any one currency.