MERGER FUND

Our Merger Fund seeks to provide attractive risk-adjusted returns in virtually all market environments while preserving investor capital and minimizing volatility based risk.

Daily NAV as of 5/23/2019
Inception Date Ticker CUSIP NAV Change ($) YTD Return (%)
1/31/1989 MERFX 589509108 $16.71 $-0.01 1.77%
8/1/2013 MERIX 589509207 $16.61 $-0.01 1.90%
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. The performance shown above for the Institutional Shares for periods prior to August 2, 2013 represents the performance for the original share class of the Fund, the Investor Shares. The Investor Shares were first offered on January 31, 1989, while the Institutional Shares were first offered on August 2, 2013. Annual returns would differ only to the extent that Institutional Class shares do not have the same expenses as Investor Class Shares.

Investment Objective

The Fund seeks to provide attractive risk-adjusted returns in virtually all market environments while preserving investor capital and minimizing volatility based risk.

Investment Strategy

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
MERFX MERIX
Inception Date: January 31, 1989 August 1, 2013
Investment Minimum: $2,000 $1,000,000
Ticker: MERFX MERIX
CUSIP: 589509108 589509207
Management Fee:(1) 1.00% 1.00%
Net Expenses(1), (2) 2.01% 1.71%
Total Operating Expense:(1) 2.04% 1.74%
Total Fund Assets as of 4/30/2019: $3.1 B $3.1 B
Total Strategy Assets as of 4/30/2019: $3.3 B $3.3 B

(1)As of prospectus dated 5/1/2019.

(2)Expense ratios are as of the May 1, 2019 prospectus. The total annual operating expense ratio of the Fund’s Investor Class shares and Institutional Class shares that were applicable to investors are 2.04% and 1.74%, respectively. The Advisor has contractually agreed to waive a portion of its management fee until April 30, 2020 if the fund’s assets exceed certain thresholds, beginning at $2 billion. Net Annual Operating Expenses of the Fund’s Investor and Institutional class shares of 2.01% and 1.71%, respectively, were applicable to investors. Net annual operating expenses of the Fund’s Investor and Institutional Class shares not including Investment Related Expenses (acquired fund fees and expenses of 0.10% and short interest and dividend expenses of 0.41%), were 1.50% and 1.20%, respectively.