On May 1, the name, principal investment strategies and portfolio managers of the VIP Global Bond Fund were revised. Its name is now the VIP Unconstrained Emerging Markets Bond Fund. Click here for a detailed description of this change.
The Van Eck VIP Unconstrained Emerging Markets Bond Fund (previously known as the Van Eck VIP Global Bond Fund) can invest in debt securities that are issued by governments, quasi-government entities or corporations in emerging markets countries. These securities may be denominated in any currency, including those of emerging markets. By investing in emerging markets debt securities, the Fund offers exposure to emerging markets fundamentals, generally characterized by lower debts and deficits, higher growth rates and independent central banks. Lead Portfolio Manager, Eric Fine, has over 23 years of experience in emerging markets.
The Fund seeks high total return — income plus capital appreciation — by investing globally, primarily in a variety of debt securities. The Fund's benchmark is the J.P. Morgan Government Bond Index-Emerging Markets Global Diversified (GBI-EM).
You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. The Fund is subject to risks associated with its investments in emerging markets securities. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. As the Fund may invest in securities denominated in foreign currencies and some of the income received by the Fund will be in foreign currencies, changes in currency exchange rates may negatively impact the Fund’s return. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. The Fund may also be subject to credit risk, interest rate risk, sovereign debt risk, tax risk, non-diversification risk and risks associated with non-investment grade securities. Non-investment grade securities may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories.
Please see the prospectus and summary prospectus for information on these and other risk considerations. Bonds and bond funds will decrease in value as interest rates rise.
The J.P. Morgan Government Bond Index-Emerging Markets Global Diversified (GBI-EM) tracks local currency bonds issued by Emerging Markets governments. The index spans over 15 countries.
Indices are unmanaged and are not securities in which investments can be made.
The Fund is only available as an option under various insurance contracts issued by life insurance and annuity companies. These contracts offer life and tax benefits to the beneficial owners of the Fund. The insurance or annuity company charges, fees and expenses for these benefits are not included in Fund performance. A review of the particular life and/or annuity contract will provide you with much greater detail regarding these costs and benefits.
The Fund is not available directly to the general public. For more complete information on variable life/annuity products, including all charges and expenses, please obtain a prospectus from a licensed insurance agent/registered representative. The prospectus includes information about the investment objective, risks and charges and expenses. Please read the prospectus carefully before investing.
Not FDIC Insured — No Bank Guarantee — May Lose Value
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