Van Eck Global - Since 1955

CM Commodity Index FundCMCYX

  • Daily Price   as of 10/20/2014

    NAV DAILY CHANGE
    $6.97  $-0.04 / -0.6%
  • Class Y Details: CMCYX

    INCEPTION DATE GROSS/NET EXPENSES1
    12/31/10 1.07%/ 0.70%
  • The Next Generation of Commodity Indices

    As a more modern commodity benchmark, the UBS Bloomberg Constant Maturity Commodity Index ("CMCI") seeks to reduce roll losses in contango environments in order to achieve higher risk-adjusted returns. In addition to diversification provided by 28 commodity futures components from the energy, precious metals, industrial metals, agriculture and livestock sectors, the CMCI introduces a freely determinable time element.
     

  • Fund Details 
    as of 09/30/14

    • Net Assets (All Classes)
      $349.1M
    • Number of Commodity Sectors
      5
    • Number of Commodity Components
      28
    • Avg. Weighted Contract Maturity
      7.1 months
    • Benchmark Indices
      UBS Bloomberg Constant Maturity Commodity Index (CMCI)

  • Understanding "Constant Maturity"

    CMCI achieves “constant maturity” via a continuous rolling process, which allows maximum exposure to the asset class, and helps to minimize exposure to the negative effects of roll yield.

  • Traditional Indices Disregard Contango

    With traditional indices, a continuing contango situation with futures confined to the steep part of the curve can lead to heavy roll losses (blue bar).

  • CMCI's Constant Maturity Reduces Roll Losses

    Using the CMCI constant maturity principle can significantly reduce roll losses (blue bar) in a typical contango environment.

  • CMCI Target Sector Weightings (%): Overview as of 1H-14

    Sector % OF NET ASSETS
    Energy
    38.2
    Industrial metals
    24.3
    Precious Metals
    5.4
    Agriculture
    28.0
    Livestock
    4.1
  • CMCI Target Sector Weightings (%): Details for 1H 2014

    ENERGY
    WTI Crude Oil (NYMEX) 7.80
    WTI Crude Oil (ICE) 2.68
    Brent Crude Oil 9.52
    Heating Oil 4.03
    Gasoil 4.67
    RBOB Gasoline 4.89
    Natural Gas 3.93
    INDUSTRIAL METALS
    LME Copper 8.75
    High Grade Copper 3.45
    LME Zinc 2.23
    LME Aluminum 6.20
    LME Nickel 2.16
    LME Lead 1.37
    PRECIOUS METALS
    Gold 4.71
    Silver 1.15
    AGRICULTURE
    SRW Wheat 2.25
    HRW Wheat 1.01
    Milling Wheat 0.79
    Corn 5.74
    Soybeans 6.30
    Soybean Meal 1.60
    Soybean Oil 1.59
    Sugar #11 4.52
    Sugar #5 2.14
    Coffee “C” Arabica 1.08
    Cotton 1.28
    LIVESTOCK
    Live Cattle 2.39
    Lean Hogs 1.76
    GRAND TOTAL 100.00%
  • CMCI vs. Traditional Indices: 3 YR Volatility (%) 
    as of 09/30/14

    • UBS Bloomberg CMCI
      11.67
    • S&P GSCI Index
      14.73
    • Bloomberg Commodity Index
      12.70
    • S&P 500 Index
      10.57

    Volatility is the annualized standard deviation of monthly returns.

  • CMCI vs. Traditional Indices: 3 YR Max Drawdown (%) 
    as of 09/30/14

    • UBS Bloomberg CMCI
      -16.08
    • S&P GSCI Index
      -15.63
    • Bloomberg Commodity Index
      -20.45
    • S&P 500 Index
      -6.60

    Maximum drawdown is the largest negative change in fund value over a given period of time.

  • CMCI 3 YR Correlation  
    as of 09/30/14

    • BarCap Agg Bond Index
      0.02
    • S&P 500 Index
      0.68

    Correlation describes a complementary or parallel relationship between two investments. The correlation coefficient is a measure that determines the degree to which two variables’ movements are associated and will vary from -1.0 to 1.0. -1.0 indicates perfect negative correlation, and 1.0 indicates perfect positive correlation.

  • Commodity Benchmarks Defined: CMCI and Traditional Indices

    • The UBS Bloomberg Constant Maturity Commodity Index (CMCI) is a modern commodity benchmark that seeks to reduce roll losses in contango environments in order to achieve higher risk-adjusted returns. In addition to diversification provided by 27 commodity futures components from the energy, precious metals, industrial metals, agriculture and livestock sectors, the CMCI introduces a freely determinable time element.

    • The S&P® Goldman Sachs Commodity Index (S&P GSCI) is a composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures. High energy concentration; limited diversification. The index benefits when energy is strong, and suffers when energy is weak.

    • The Dow Jones-UBS Commodity Index (DJUBS) is composed of futures contracts on 20 physical commodities covering seven sectors, specifically energy, petroleum, precious metals, industrial metals, grains, livestock and softs. Energy exposure is limited to no more than 33%; manager cannot invest above that level no matter how favorable the energy market.

    • The S&P® 500 Index (S&P 500) consists of 500 widely held common stocks covering industrial, utility, financial and transportation sectors.

    • The Barclays Capital Global Aggregate Bond Index (BarCap Agg Bond Index) is composed of the mortgage-backed and asset-backed securities and government/credit bonds.

    All indices are unmanaged and include the reinvestment of all dividends, but 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.

  • Important Disclosure 

    Unless otherwise stated, portfolio facts and statistics are shown for Class A shares; other classes may have different characteristics. 

    NAV: Unless you are eligible for a waiver, the public offering price you pay when you buy Class A shares of the Fund is the Net Asset Value (NAV) of the shares plus an initial sales charge. The initial sales charge varies depending upon the size of your purchase.  No sales charge is imposed where Class A shares are issued to you pursuant to the automatic investment of income dividends or capital gains distribution. It is the responsibility of the financial intermediary to ensure that the investor obtains the proper “breakpoint” discount. Class I and Class Y do not have an initial sales charge. See the prospectus for more information.

    1Van Eck Absolute Return Advisers Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends and interest payments on securities sold short, taxes and extraordinary expenses) from exceeding 0.95% for Class A, 0.65% for Class I, and 0.70% for Class Y of the Fund’s average daily net assets per year until May 1, 2015. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

    Van Eck Absolute Return Advisers Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends and interest payments on securities sold short, taxes and extraordinary expenses) from exceeding 0.95% for Class A, 0.65% for Class I, and 0.70% for Class Y of the Fund’s average daily net assets per year until May 1, 2015. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

    2The Dow Jones-UBS Commodity Index (DJUBS) is composed of futures contracts on 20 physical commodities covering seven sectors, specifically energy, petroleum, precious metals, industrial metals, grains, livestock and softs. Energy exposure is limited to no more than 33%; the manager cannot invest above that level no matter how favorable the energy market. The S&P® 500 Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation sectors. The S&P® Goldman Sachs Commodity Total Return Index (SPGSCITR) is a composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures. The Barclays Capital Global Aggregate Bond Index is composed of the mortgage-backed and asset-backed securities and government/credit bonds. All indices are unmanaged and include the reinvestment of all dividends, but 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.

    UBS and Bloomberg own or exclusively license, solely or jointly as agreed between them, all proprietary rights with respect to the Index. In no way do UBS or Bloomberg sponsor or endorse, nor are they otherwise involved in the issuance and offering of the Fund, nor do either of them make any representation or warranty, express or implied, to the holders of the Fund or any member of the public regarding the advisability of investing in the Fund or commodities generally or in futures particularly, or as to results to be obtained from the use of the Index or from the Fund.

    The views and opinions expressed are those of Van Eck Global. Fund manager commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. Any discussion of specific securities mentioned in the commentaries is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary.

    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. Commodities are assets that have tangible properties, such as oil, metals, and agriculture. Commodities and commodity-linked derivatives may be affected by overall market movements and other factors that affect the value of a particular industry or commodity, such as weather, disease, embargoes or political or regulatory developments. The value of a commodity-linked derivative is generally based on price movements of a commodity, a commodity futures contract, a commodity index or other economic variables based on the commodity markets. Derivatives use leverage, which may exaggerate a loss. The Fund is subject to the risks associated with its investments in commodity-linked derivatives, risks of investing in wholly owned subsidiary, risk of tracking error, risks of aggressive investment techniques, leverage risk, derivatives risks, counterparty risks, non-diversification risk, credit risk, concentration risk and market risk. The use of commodity-linked derivatives such as swaps, commodity-linked structured notes and futures entails substantial risks, including risk of loss of a significant portion of their principal value, lack of a secondary market, increased volatility, correlation risk, liquidity risk, interest-rate risk, market risk, credit risk, valuation risk and tax risk. Gains and losses from speculative positions in derivatives may be much greater than the derivative’s cost. At any time, the risk of loss of any individual security held by the Fund could be significantly higher than 50% of the security’s value. Investment in commodity markets may not be suitable for all investors. The Fund’s investment in commodity-linked derivative instruments may subject the Fund to greater volatility than investment in traditional securities. For a description of these and other risk considerations, please refer to the Fund’s prospectus, which should be read carefully before you invest. Again, the Fund offers investors exposure to the broad commodity markets, currently, by investing in commodity-linked swaps.

    Investing involves risk, including possible loss of principal. An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and other information.  Please read them carefully before investing. 

    Not FDIC Insured — No Bank Guarantee — May Lose Value 

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    New York, NY 10017
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