Van Eck Global - Since 1955

Emerging Markets FundGBFAX

  • Daily Price   as of 04/24/2015

    $15.63  $0.03 / +0.2%
  • Class A Details: GBFAX

    12/20/93 1.63%/1.60%
  • Quarterly Recap: 1Q 2015

    EM RIO 2

    By: David Semple, Portfolio Manager

    Market Review  

    China shares continue to do well. The economy has been on the weaker side of expectations and, as in many other countries, inflation has come down to uncomfortable levels....In India, it’s a case of expectations adjusting to reality, with time still needed for earnings to grow into valuations, which, currently, look fairly challenging. Long term, we believe India remains very exciting with some excellent structural growth prospects. Brazil still looks difficult. There appears to be lack of confidence, the political situation is getting worse, rather than better, disapproval ratings of President Rousseff have gone up, and the running sore of the Petrobras scandal continues to be an issue. Finally, South Africa remains a country for which, from top down, we find it hard to construct a positive case.   

    Market Outlook  

    The prospect of U.S. interest rate increases, the price of oil, and its volatility, together with the strength of the U.S. dollar all remain important themes. Currency weakness in emerging markets countries is also an issue. Such currencies may be weak, but, that said, such weakness will continue to be associated strongly with countries that persistently demand capital and run current account deficits. 

    We are, therefore, less concerned about Asia and more concerned about countries like Brazil, South Africa and Turkey, where there is likely to be more currency volatility. The effect of the current price of oil in the emerging markets can be very different, depending upon where you are. While some countries are hurting a great deal, for others it definitely improves their terms of trade.

    Read full 1Q'15 Commentary  


  • 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.

  • Video Viewpoint

    Emerging Markets Equities: Company Selection

    David Feygenson and Patricia Gonzales
    Analysts, Van Eck Emerging Markets Equity Investment Team

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

    View now »

    Van Eck Outlook: Shanghai-Hong Kong Stock Connect

    Jan van Eck

    The emerging markets have been rewarded for their reform moves. Mexico is a country that has gotten its act together in terms of instituting reforms in areas such as energy policy. No longer is Pemex the sole developer of all Mexican energy assets and I think that's very positive in the long run.

    View now »

    Political Catalysts in Emerging Markets Equities

    David Semple
    Portfolio Manager, Van Eck Emerging Markets Equity Strategy

    "The emerging markets have been rewarded for their reform moves. Mexico is a country that has gotten its act together in terms of instituting reforms in areas such as energy policy. No longer is Pemex the sole developer of all Mexican energy assets and I think that's very positive in the long run."

    View now »

    Emerging Markets Equities 2Q 2014: Opportunities Despite Headwinds

    David Semple
    Portfolio Manager, Van Eck Emerging Markets Investment Team

    "There are large companies and large sectors in the emerging markets that we don't think have a particularly good outlook right now. However, we believe that we can find some opportunities that are structural growth opportunities that play on what people think they're getting with emerging markets but normally often don't achieve with many of the more index-driven products."

    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.

    1Van 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, 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 Morgan Stanley Capital International (MSCI) Emerging Markets Index, calculated with dividends reinvested, captures 60% of the publicly traded equities in each industry for approximately 21 emerging markets. The Morgan Stanley Capital International (MSCI) Emerging Markets Small Cap Index, calculated with dividends reinvested, targets companies that are not in the standard emerging markets index.

    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. 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. 

    Van Eck Securities Corporation, Distributor
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    New York, NY 10017