Emerging Markets FundGBFAX

  • Daily Price   as of 05/27/16

    $12.24 $0.11 / +0.9%
  • Class A Details: GBFAX

    12/20/93 1.46%/1.46%
  • Quarterly Commentary: 1Q 2016

    Emerging Markets - China Currency

    By: David Semple, Portfolio Manager

    Fundamentals Return to Emerging Markets

    The Van Eck Emerging Markets Fund (the “Fund”) declined 1.61% in the first quarter of 2016 (excluding sales charge), underperforming its benchmark, the Morgan Stanley Capital International Emerging Markets (MSCI EM) Index, which returned 5.75% for the same period. To compare, the MSCI Emerging Markets IMI Index returned 5.07% for the same period.

    Market Review and Outlook

    Experience informs us that this kind of environment rarely persists for more than a quarter or two before rational fundamentals reassert themselves and investments in quality companies with genuinely sustainable operating profitability and attractive valuations reassert their leadership. In a more “normal” environment, our fund has, historically, tended to do quite well.

    In general, we see valuations for our focus list companies, after the recent rally, as fair, without being materially cheap. As we noted at the end of 2015, we are now seeing, as expected, some better economic numbers out of China, which is a notable bright spot. In addition, we would also point out that the growth of our portfolio is structural in nature and, therefore, quite reliable, and, as such, should compound over the course of time, with little cyclical risk associated with the world and market volatility we live with today.

    Download 1Q'16 Fund Commentary

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  • Emerging Opportunities


    The expansion of domestic consumption, currently a main driver of growth potential, continues to foster a strong case for investment in the emerging markets.

  • Videos

    Emerging Markets Growth Spots: LatAm and Turkey

    Patricia Gonzalez and David Feygenson
    Analysts, Emerging Markets Equity

    "We see structural growth opportunities resulting from governmental reforms or policy changes that allow new businesses and sectors to flourish. We’re currently seeing this in Turkey, where several years ago the government announced private pension funds similar to 401(k)s in the U.S.…"

    View now »

    China Growth Spots in 2016

    David Semple
    Portfolio Manager, Emerging Markets Equity

    “[There] has been a fundamental shift in China’s economy, away from the old smokestack SOE complex into ‘new’ China, which emphasizes clean air, clean water, clean food, clean governance, education, healthcare, and tourism.”

    View now »

    Opportunities Exist in Emerging Markets Despite Volatility

    David Semple
    Portfolio Manager, Emerging Markets Equity

    "You have to be very specific about where you're investing in emerging markets. Gone are the days of looking at emerging markets as being a beta block, generally speaking, for global growth."

    View now »

    Emerging Markets Equity: 3Q'15 Outlook

    David Semple
    Portfolio Manager, Emerging Markets Equity

    "The fundamental economic story of China remains stable. Income growth determines consumption more than the stock market. There are some great opportunities to invest in China."

    View now »

    Emerging Markets: A Flexible Approach

    Jan van Eck

    "Flexibility is one of our philosophies. We give our emerging markets portfolio managers wide berth to go anywhere in search of stocks or bonds that they like."

    View now »

    Emerging Markets Equities: Company Selection

    David Feygenson and Patricia Gonzalez
    Analysts, Emerging Markets Equity

    We look for companies that demonstrate structural growth, as opposed to cyclical growth, and at a reasonable price.

    View now »

  • 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 or Class C shares are issued to you pursuant to the automatic investment of income dividends or capital gains distributions. It is the responsibility of the financial intermediary to ensure that the investor obtains the proper “breakpoint” discount. Class C, Class I and Class Y do not have an initial sales charge; however, Class C does charge a contingent deferred redemption charge.  See the prospectus and summary prospectus for more information.

    1Expenses are calculated for the 12-month period ending 05/01/16: Class A: Gross 1.46% and Net 1.46%; Class C: Gross 2.26 and Net 2.26%; Class I: Gross 1.14% and Net 1.00%; and Class Y: Gross 1.23% and Net 1.10%. Van Eck Associates 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 1.60% for Class A, 2.50% for Class C, 1.00% for Class I, and 1.10% for Class Y of the Fund’s average daily net assets per year until May 1, 2017. 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 Morgan Stanley Capital International (MSCI) Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. The MSCI Emerging Markets Investable Market Index (IMI) is a free float adjusted market capitalization index that is designed to capture large-, mid- and small-cap representation across 23 emerging markets countries. Emerging Markets countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

    The views and opinions expressed are those of VanEck. 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. The Fund is subject to the risks associated with its investments in emerging markets securities, which tend to be more volatile and less liquid than securities traded in developed countries. The Fund’s investments in foreign securities involve risks related to adverse political and economic developments unique to a country or a region, currency fluctuations or controls, and the possibility of arbitrary action by foreign governments, including the takeover of property without adequate compensation or imposition of prohibitive taxation. The Fund is subject to risks associated with investments in debt securities, derivatives, commodity-linked instruments, illiquid securities, asset-backed securities, CMOs and small or mid-cap companies. The Fund is also subject to inflation risk, short-sales risk, market risk, non-diversification risk and leverage risk. Please see the prospectus and summary prospectus for information on these and other risk considerations.

    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.