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Van Eck Mutual Funds
4/15/14: According to The Wall Street Journal, turmoil in China and Russia have curtailed gains for income-seeking funds. “Look at it from the perspective of a conservative U.S. investor who’s looking for yield,” says David Semple. “You may get your yield in due course, but you’ll get your volatility with that.”View article >>
4/10/14: Despite the hit emerging markets companies have recently taken, some money managers believe there are still worthwhile opportunities. According to David Semple, “There are state-owned businesses that deserve to trade at discounts, but you can find real growth stories that sell at reasonable prices.”View article >>
12/05/13: CNN Money polls money managers for top stock ideas for 2014. David Semple weighs in and discusses his views on oil demand in Southeast Asia. “Oil demand from this region is clearly very strong, and this company seems to be at the center of it.” View article >>
7/01/13: InvestmentNews designates ten emerging markets funds as the "hottest" and includes the Van Eck Emerging Markets Fund. View article »
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By: David Semple, Portfolio Manager
Fund's recent performance >>
The Van Eck Emerging Markets Fund lost 0.14% in the first quarter.
Following mostly flat performance by emerging markets (“EM”)
in 4Q 2013, 2014 began with a sharp selloff on unexpected weak
data from the U.S. and China, renewed concerns of tighter global
liquidity, and pockets of political turmoil in select EM “hotspots.” EM
currencies sold off sharply in January, escalating to include equity
and debt markets. At first, the selling focused on profit taking, but
then became more indiscriminate until EM indices reached a low in
early February. Following the February low, EM stocks rallied back
to close the quarter largely flat.
From a macro perspective, synchronized global expansion seems
to be a trend, albeit a relatively weak one. There are encouraging
signs from this year’s EM election cycles, especially in India
and Indonesia, and potentially Brazil. In Turkey, the status quo
is expected to remain in place, which is, in our opinion, market
friendly in the short term.
One positive from the most recent
quarter is that EM governments and central banks appear to have
been responding to market pressures and have elected to use the
various tools at their disposal in an attempt to stabilize currencies,
level reserves, and back up capital markets. There is continued
evidence of reforms in EM, especially in Mexico and China where
we expect the latter to undertake a mild and quiet stimulus in an
effort to shore up the slowing economy. We believe that this can
be instrumental for this region and might help unlock growth in EM
companies. On the other hand, Ukraine and Russia still represent a
relevant tail risk for emerging markets.
China remains an issue for investors. We believe growth is slowing, but this has always been our base case: not only
can China not continue to grow as fast it has been, but there has
also been a shift in policy. While the reforms being undertaken by
the current Chinese leadership could be thought of as very bold,
there could, as a consequence, be less growth in the shorter term.
In the longer term, there could also be cause for optimism if
the reforms do actually succeed. This is a big “if," and there will,
of course, be challenges along the way. However, we are quite
optimistic that certain parts of the Chinese economy should do well.
Read full 1Q Commentary
The expansion of domestic consumption, currently a main driver of growth potential, continues to foster a strong case for investment in the emerging markets.
Emerging Markets Defined
The term “Emerging Markets” is typically used to describe business and market activity in industrializing or emerging regions of the world. An “emerging market country” is any country that has been determined by an international organization, such as the World Bank, to have low to middle economic activity. Emerging markets often have unique economic fundamentals and cycles.
Long term, an allocation to emerging markets may provide diversification benefits as emerging markets tend to be less correlated to traditional asset classes than their developed market peers. Read more >>
Portfolio Manager, Van Eck Emerging Markets Investment Team
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Portfolio Manager, Van Eck Emerging Markets Fund
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.
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