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Trending ETFs

Name

Price

Aum/Mkt Cap

YIELD

Exp Ratio

Watchlist

The Merger Fund®

MERIX | Fund

$16.70

$4.33 B

2.02%

$0.34

1.32%

Vitals

YTD Return

0.0%

1 yr return

-3.4%

3 Yr Avg Return

-0.9%

5 Yr Avg Return

0.8%

Net Assets

$4.33 B

Holdings in Top 10

44.0%

52 WEEK LOW AND HIGH

$16.7
$16.65
$17.50

Expenses

OPERATING FEES

Expense Ratio 1.32%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 162.00%

Redemption Fee N/A


Min Investment

Standard (Taxable)

$100,000

IRA

N/A


Fund Classification

Fund Type

Open End Mutual Fund


Name

Price

Aum/Mkt Cap

YIELD

Exp Ratio

Watchlist

The Merger Fund®

MERIX | Fund

$16.70

$4.33 B

2.02%

$0.34

1.32%

MERIX - Profile

Distributions

  • YTD Total Return 0.0%
  • 3 Yr Annualized Total Return -0.9%
  • 5 Yr Annualized Total Return 1.7%
  • Capital Gain Distribution Frequency Annually
  • Net Income Ratio -0.30%
DIVIDENDS
  • Dividend Yield 2.0%
  • Dividend Distribution Frequency Annually

Fund Details

  • Legal Name
    The Merger Fund®
  • Fund Family Name
    Virtus
  • Inception Date
    Aug 01, 2013
  • Shares Outstanding
    N/A
  • Share Class
    Inst
  • Currency
    USD
  • Domiciled Country
    United States
  • Manager
    Roy Behren

Fund Description

Principal Investment Strategies
Under normal market conditions, the fund invests at least 80% of its total assets principally in the common stock, preferred stock and, occasionally, warrants of companies which are involved in publicly announced mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations and other corporate reorganizations. Merger arbitrage is a highly specialized investment approach generally designed to profit from the successful completion of such transactions. Although a variety of strategies may be employed depending upon the nature of the reorganizations selected for investment, the simplest form of merger-arbitrage activity involves purchasing the shares of an announced acquisition target at a discount to their expected value upon completion of the acquisition. The size of this discount, known as the arbitrage “spread,” may represent the fund’s potential profit on such an investment. Because the fund’s subadviser, Westchester Capital Management, LLC, the fund’s investment subadviser (the “Subadviser”), typically seeks to profit from the “spread” described above upon the completion of a merger, takeover or other reorganization rather than the performance of the market overall or any one issuer, the Subadviser believes the merger-arbitrage strategy is designed to provide performance that normally has relatively low correlation with the performance of stock markets.
The fund may employ a variety of hedging strategies to seek to protect against issuer-related risk or other risks, including selling short the securities of the company that proposes to acquire the acquisition target and/or the purchase and sale of put and call options. (To sell a security short, the fund may borrow the security from a broker or other counterparty and sell it to a third party. The fund is obligated to return the same number of securities it borrowed from the broker back to the broker at a later date to close out the short position, at which point in time those securities may have a value that is greater or lesser than the price at which the short sale was established.) In addition, the fund may enter into derivative transactions and purchase or sell other instruments of any kind for similar or other hedging purposes, duration management or volatility management purposes, or otherwise to gain, or reduce, long or short exposure to one or more asset classes or issuers. For example, the Subadviser may seek to hedge the fund’s portfolio against a decline in the values of its portfolio securities or a decline in the market generally by purchasing put options or other derivative investments.
The fund may invest significantly in the common stock of and other interests (e.g., warrants) in special purpose acquisition companies or similar special purpose entities that pool funds to seek potential acquisition opportunities (collectively, “SPACs”). A SPAC investment typically represents an investment in a special purpose vehicle that seeks to identify and effect an acquisition of, or merger with, an operating company in a particular industry or sector. During the period when management of the SPAC seeks to identify a potential acquisition or merger target, typically most of the capital raised for that purpose (less a portion retained to cover expenses) is invested in income-producing investments. The fund may invest in SPACs for a variety of investment purposes, including to achieve income. Some SPACs provide the opportunity for common shareholders to have some or all of their shares redeemed by the SPAC at or around the time a proposed merger or acquisition is expected to occur. The fund may sell its investments in SPACs at any time, including before, at or after the time of a merger or acquisition.
The fund may also invest in various types of corporate debt obligations, including defaulted securities and obligations of distressed issuers, as part of its merger-arbitrage strategy or for other investment purposes.
In pursuing the fund’s investment objective and strategies, the fund may invest in U.S. and foreign securities without limit and may invest in companies of any market capitalization. The fund engages in active trading and may invest a portion of its assets to seek short-term capital appreciation.
The fund may invest in other investment companies, including exchange-traded funds (“ETFs”), closed-end funds and open-end mutual funds, among others. To the extent that the fund invests in shares of another investment company or ETF, the fund bears its proportionate share of the expenses of the underlying investment company or ETF and is subject to the risks of the underlying investment company’s or ETF’s investments. The fund also may invest its assets (in the form of cash collateral from securities lending transactions) in one or more unaffiliated private funds that seek to comply with (but are not subject to) the credit quality and duration limits applicable to money market funds under applicable law.
In making merger-arbitrage investments for the fund, the Subadviser is generally guided by the following considerations:
securities are purchased only after a reorganization is announced or when one or more publicly disclosed events point toward the possibility of some type of merger or other significant corporate event within a reasonable period of time;
before an initial position is established, a preliminary analysis is made of the expected transaction to determine the probability and timing of a successful completion;
in deciding whether or to what extent to invest, the Subadviser evaluates, among other things, the credibility, strategic motivation and financial resources of the participants, and the liquidity of the securities involved in the transaction;
the risk-reward characteristics of each arbitrage position are assessed on an ongoing basis, and the fund’s holdings may be adjusted at any time; and
the Subadviser may invest the fund’s assets in both negotiated, or “friendly,” reorganizations and non-negotiated, or “hostile,” takeover attempts, but in either case the Subadviser’s primary considerations include the Subadviser’s assessments of the likelihood that the transaction will be successfully completed and the investment’s risk-adjusted profile.
The fund may also loan portfolio securities to earn income.
The Subadviser may sell securities at any time, including if the Subadviser’s evaluation of the risk/reward ratio is no longer favorable. The fund may hold a significant portion of its assets in cash, money market investments, money market funds or other similar short-term investments for defensive purposes, to preserve the fund’s ability to capitalize quickly on new market opportunities or for other reasons, such as because the Subadviser has determined to obtain investment exposure through derivative instruments instead of direct cash investments. The fund may also hold a significant amount of cash or short-term investments immediately after the closing of a number of transactions in which it has invested; this could occur at any time, including at calendar quarter or year ends. During periods when the fund is so invested, its investment returns may be lower than if it were not so invested, and the fund may not achieve its investment objective.
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MERIX - Performance

Return Ranking - Trailing

Period MERIX Return Category Return Low Category Return High Rank in Category (%)
YTD 0.0% -11.6% 15.8% 58.00%
1 Yr -3.4% -33.0% 41.7% 43.69%
3 Yr -0.9%* -10.5% 13.4% 21.43%
5 Yr 0.8%* -4.8% 11.1% 19.28%
10 Yr N/A* -4.6% 7.6% 29.41%

* Annualized

Return Ranking - Calendar

Period MERIX Return Category Return Low Category Return High Rank in Category (%)
2022 -3.6% -31.7% 23.2% 42.86%
2021 -0.1% -20.7% 10.7% 12.37%
2020 0.5% -12.4% 14.7% 13.33%
2019 1.2% -13.2% 12.9% 48.10%
2018 0.6% -11.7% 7.9% 44.29%

Total Return Ranking - Trailing

Period MERIX Return Category Return Low Category Return High Rank in Category (%)
YTD 0.0% -11.7% 15.8% 58.00%
1 Yr -3.4% -33.0% 41.7% 36.89%
3 Yr -0.9%* -10.5% 13.4% 19.39%
5 Yr 1.7%* -4.8% 11.1% 16.87%
10 Yr N/A* -4.6% 7.6% 29.41%

* Annualized

Total Return Ranking - Calendar

Period MERIX Return Category Return Low Category Return High Rank in Category (%)
2022 -3.6% -31.7% 23.2% 42.86%
2021 -0.1% -20.7% 10.7% 12.37%
2020 0.5% -12.4% 14.7% 2.22%
2019 1.2% -12.7% 12.9% 49.37%
2018 1.5% -11.5% 13.2% 52.86%

NAV & Total Return History


MERIX - Holdings

Concentration Analysis

MERIX Category Low Category High MERIX % Rank
Net Assets 4.33 B 105 K 12.6 B 8.65%
Number of Holdings 661 5 2526 38.46%
Net Assets in Top 10 1.81 B -619 M 6.53 B 4.81%
Weighting of Top 10 43.96% 7.6% 96.1% 34.15%

Top 10 Holdings

  1. AON PLC SWAP (GS) 7.43%
  2. AON PLC SWAP (GS) 7.43%
  3. AON PLC SWAP (GS) 7.43%
  4. AON PLC SWAP (GS) 7.43%
  5. AON PLC SWAP (GS) 7.43%
  6. AON PLC SWAP (GS) 7.43%
  7. AON PLC SWAP (GS) 7.43%
  8. AON PLC SWAP (GS) 7.43%
  9. AON PLC SWAP (GS) 7.43%
  10. AON PLC SWAP (GS) 7.43%

Asset Allocation

Weighting Return Low Return High MERIX % Rank
Stocks
61.39% -57.09% 325.56% 19.23%
Cash
32.67% -225.56% 102.75% 67.31%
Bonds
6.50% -1.04% 63.30% 29.81%
Preferred Stocks
0.08% 0.00% 5.67% 23.08%
Convertible Bonds
0.00% 0.00% 95.47% 35.58%
Other
-0.64% -11.90% 43.69% 98.08%

Stock Sector Breakdown

Weighting Return Low Return High MERIX % Rank
Financial Services
37.35% 0.00% 98.37% 18.28%
Technology
23.49% 0.00% 100.00% 20.43%
Communication Services
15.02% 0.00% 33.72% 46.24%
Healthcare
10.27% 0.00% 27.28% 33.33%
Industrials
4.55% 0.00% 27.58% 54.84%
Real Estate
3.64% 0.00% 93.91% 74.19%
Consumer Cyclical
3.30% 0.00% 29.06% 55.91%
Consumer Defense
0.99% 0.00% 30.58% 66.67%
Basic Materials
0.92% 0.00% 42.74% 77.42%
Energy
0.45% 0.00% 53.30% 34.41%
Utilities
0.00% 0.00% 66.28% 89.25%

Stock Geographic Breakdown

Weighting Return Low Return High MERIX % Rank
US
56.77% -55.82% 325.56% 13.46%
Non US
4.62% -7.09% 86.98% 20.19%

Bond Sector Breakdown

Weighting Return Low Return High MERIX % Rank
Cash & Equivalents
63.88% 0.00% 100.00% 73.08%
Derivative
23.18% 0.00% 30.95% 6.73%
Corporate
12.94% 0.00% 100.00% 25.00%
Securitized
0.00% 0.00% 27.70% 64.42%
Municipal
0.00% 0.00% 3.82% 64.42%
Government
0.00% 0.00% 73.33% 73.08%

Bond Geographic Breakdown

Weighting Return Low Return High MERIX % Rank
US
5.68% -1.04% 80.93% 32.69%
Non US
0.82% -64.71% 9.68% 24.04%

MERIX - Expenses

Operational Fees

MERIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 1.32% 0.73% 9.52% 86.41%
Management Fee 1.00% 0.13% 1.65% 36.54%
12b-1 Fee N/A 0.00% 1.00% N/A
Administrative Fee 0.10% 0.06% 0.40% N/A

Sales Fees

MERIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 2.75% 5.75% N/A
Deferred Load N/A 1.00% 5.00% N/A

Trading Fees

MERIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 1.00% 2.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

MERIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 162.00% 30.00% 483.00% 51.69%

MERIX - Distributions

Dividend Yield Analysis

MERIX Category Low Category High MERIX % Rank
Dividend Yield 2.02% 0.00% 0.75% 59.62%

Dividend Distribution Analysis

MERIX Category Low Category High Category Mod
Dividend Distribution Frequency Annually Annually Quarterly Annually

Net Income Ratio Analysis

MERIX Category Low Category High MERIX % Rank
Net Income Ratio -0.30% -2.49% 4.20% 39.81%

Capital Gain Distribution Analysis

MERIX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually Annually

Distributions History

View More +

MERIX - Fund Manager Analysis

Managers

Roy Behren


Start Date

Tenure

Tenure Rank

Jan 24, 2007

15.36

15.4%

Mr. Roy Behren serves as Managing Partner, Member of Investment Committee, Managing Member and Portfolio Manager at Westchester Capital Funds. He was also their Chief Compliance Officer from September 2002 through June 2010. After earning a B.S. in Economics at The Wharton School, he received a J.D. degree from the University of Miami Law School and an LL.M. degree in corporate law from the New York University School of Law. In 1987, he joined the U.S. Securities and Exchange Commission's New York Regional Office, where he worked as an enforcement attorney for seven years prior to starting his investment career at WCM. From 2004 through 2006, Roy served as a member of Redback Networks' Board of Directors and its Audit Committee.

Michael Shannon


Start Date

Tenure

Tenure Rank

Jan 24, 2007

15.36

15.4%

Mr. Shannon has served as Co-President of the Adviser since 2011 and also serves as Co-President and a Trustee of each Fund. Mr. Shannon served as Westchester’s Director of Research from May 1996 until April 2005. From April 2005 to April 2006, Mr. Shannon was Senior Vice President in charge of the Special Situations and Mergers Group of D.E. Shaw & Co. Mr. Shannon returned to Westchester in May 2006 as a research analyst and portfolio strategist and has served as a portfolio manager for The Merger Fund since January 2007, for WCM Alternatives: Event-Driven Fund since it commenced investment operations in January 2014, and for WCM Alternatives: Credit Event Fund since it commenced investment operations in January 2018. He received a B.S. in Finance from Boston Colleg.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.08 30.59 6.3 9.42