OVERALL Morningstar Rating™
Out of 118 market neutral funds based upon risk-adjusted returns as of 12/31/2016. The overall Morningstar Rating is derived from a weighted average of the funds' 3-, 5- and 10-year Morningstar Rating metrics.
Morningstar Rating is for MERFX.
The Merger Fund®
The Merger Fund®
As of 3/29/2017
|Inception Date||Ticker||CUSIP||NAV||Change ($)||YTD Return (%)|
The Fund seeks to provide attractive risk-adjusted returns in virtually all market environments while preserving investor capital and minimizing volatility based risk.
The Fund typically attempts to profit from the "spread" between the purchase value and the value of a stock at the completion of a merger, takeover or other reorganization. We seek to accomplish this by investing primarily in companies involved in publicly announced mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations and other corporate reorganizations. Because the Fund seeks to profit from the "spread" rather the performance of the market overall or any one issuer, the Adviser believes that it has the potential to provide performance with low correlation to stock market performance.
Advantages of Investing in The Merger Fund®
- Returns have historically had low correlation (beta) with those of the stock or bond market
- Returns have historically been less volatile than equity markets as represented by our standard deviation
- Merger arbitrage strategies have historically been positively correlated with interest rates, or the cost of capital; therefore if interest rates rise, the Fund may provide a hedge to the decreased value of bonds.
|At a Glance|
|Inception Date:||January 31, 1989||August 1, 2013|
|Management Fee:(1), (2)||1.00%||1.00%|
|Net Expenses before investment related expenses:(1), (2), (3)||1.34%||1.01%|
|Total Operating Expense before fee waiver:(2)||1.90%||1.57%|
|Total Fund Assets as of 2/28/17:||$2.9 billion|
|Total Strategy Assets as of 2/28/17:||$3.1 billion|
(1) The fund's management fee rate is 1.00%. The Advisor has agreed to reduce its management fee to 1.00% on net assets up to $1.5 billion, 0.9% on net assets between $1.5 billion and $2.0 billion, 0.8% on net assets between $2.0 billion and $5.0 billion and 0.75% on net assets over $5.0 billion. The waiver is expected to apply until April 30, 2017, except that it may be terminated by the Board of Trustees at any time.
(2)As of prospectus dated 5/3/2016.
(3)Investment related expenses include acquired fund fees and expenses, interest expense, and borrowing expense and dividend expense on securities sold short.
The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original costs. Current performance may be lower or higher than the performance quoted. Click the link below for the Fund's most recent quarter- and month-end performance data.
Portfolio Composition as of 2/28/2017
|Top five positions as % of net assets:||26.39%|
|Average position size:||1.47%|
|Number of long positions:(1)||62|
|Number of short positions:(1)||22|
|Short positions as a % of net assets:||18.70%|
(1)It is important to note that long positions, net of short positions ("Net Exposure"), is not an accurate indicator of the Fund's directional exposure and has limited informational value. The Fund's Net Exposure is dependent upon the structure and consideration paid to the target company in each of our investments. A portfolio with a greater concentration of cash deals, for example, will have a higher Net Exposure calculation than a portfolio composed primarily of stock - for - stock transactions, yet both portfolios will have the same level of market correlation, or directional exposure. Our positions are typically fully hedged to neutralize such exposure, in order to minimize equity market correlation and volatility.
By Deal Terms
*The compensation is undetermined because the compensation to be received (e.g. stock, cash, escrow notes, other) will be determined at a later date, potentially at the option of the Fund's investment advisor.