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    All Eyes on Puerto Rico - Friday, 07/11/2014

    It would be wrong to underestimate the value and impact of the recent upheaval in the municipal bond market caused by the declining fortunes of the Commonwealth of Puerto Rico. I wanted, therefore, to address some of the issues in this edition of MUNI NATION. I believe the July 8, 2014 commentary from Municipal Market Advisors (MMA) is a good synopsis of the current environment. With their permission, I've included it below.

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    A Rising Tide? - Wednesday, 07/02/2014

    What I want to build on is the theme I've been noticing ― optimism over the U.S. economy ― and what I believe it might mean for municipal bond creditworthiness. Total nonfarm payroll employment rose by 217,000 in May 2014, and the unemployment rate remained unchanged at 6.3% for the month, following a decline of 0.4% in April. This is better than the recession levels of three and four years ago.

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    Game Changer? - Friday, 06/27/2014

    According to The New York Times, "[A] new law [proposed by the government of Puerto Rico] intends to create an organized process through which some of its debt can be cut or reduced. It would apply to at least $22 billion owed by public corporations including the electric authority, the aqueduct and sewer authority, and the highway authority. The legislation does not apply to Puerto Rico's general obligation debt, which officials say carries constitutional protections that bondholders must be repaid."

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Van Eck Associates Corporation does not provide tax, legal or accounting advice. Investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service.

Please note that the information herein represents the opinion of Jim Colby and these opinions may change at any time and from time to time. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Non-Van Eck Global proprietary information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Global. © 2014 Van Eck Securities Corporation. MUNI NATION is a trademark of Van Eck Associates Corporation.

All indices listed are unmanaged indices and do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.

Any discussion of specific securities mentioned in the commentary is neither an offer to sell nor a solicitation to buy these securities.

Municipal bonds are subject to risks related to litigation, legislation, political change, conditions in underlying sectors or in local business communities and economies, bankruptcy or other changes in the issuer’s financial condition, and/or the discontinuance of taxes supporting the project or assets or the inability to collect revenues for the project or from the assets. Bonds and bond funds will decrease in value as interest rates rise. Additional risks include credit, interest rate, call, reinvestment, tax, market and lease obligation risk. High-yield municipal bonds are subject to greater risk of loss of income and principal than higher-rated securities, and are likely to be more sensitive to adverse economic changes or individual municipal developments than those of higher-rated securities. Municipal bonds may be less liquid than taxable bonds.

The income generated from some types of municipal bonds may be subject to state and local taxes as well as to federal taxes on capital gains and may also be subject to alternative minimum tax.

Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.MKT.VCTR | 888.658.8287. Please read the prospectus and summary prospectus carefully before investing.  

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