Van Eck Global - Since 1955

Emerging Markets FundGBFAX

  • Daily Price   as of 04/21/2015

    $15.40  $0.13 / +0.9%
  • Class A Details: GBFAX

    12/20/93 1.63%/1.60%
  • Quarterly Recap: 4Q 2014

    EM RIO 2

    By: David Semple, Portfolio Manager

    View Fund's recent performance >> 

    The Van Eck Emerging Markets Fund declined 2.80% in the fourth quarter of 2014.  

    Market Review  

    The signs remained positive for India in the fourth quarter following the decisive win for the Bharatiya Janata Party (BJP) in May. The issue now is that the country is very consensus overweight. Both foreigners and locals are enamored with the prospects for the place and, consequently, in the near term, valuations look challenging, particularly relative to the rest of the emerging markets universe. However, as inflation declines in India, we can see potential for interest rates coming down and can also see a credit cycle taking off. This could lead to better earnings and we would be able to justify better valuations for those earnings.

    In Indonesia, however, it still remains to be seen just how successfully newly-elected President Joko Widodo is able to navigate the treacherous, and ever-shifting, shoals of the country’s parliamentary party politics. In Brazil, subsequent to Dilma Rousseff’s somewhat less than decisive re-election as president, the outlook domestically for the country’s economy is somewhat pessimistic. The expectations locally are for 2015 to be a flat year – at best. We believe, however, that this could result in Brazilian companies being more serious about self-help and re-engineering themselves to face a more challenging growth environment.

    Market Outlook  

    The big question remains: What is going to happen when interest rates normalize in the U.S.? The prospects of inflation do appear to be diminishing somewhat. We believe that this may improve the prospect of emerging markets countries reducing rates in the forthcoming year, notwithstanding rates potentially moving up in the U.S. While this may well narrow interest rate differentials between emerging markets countries and the U.S., and have significant implications for emerging markets currencies, reduced rates could increase aggregate demand from emerging markets countries and may create better conditions for growth.

    We believe that the growth outlook for emerging markets remains mildly better, but, rather than playing emerging markets as some kind of “global beta,” we still need to focus on companies and countries that have the potential to do their own “self-help” and have their own dynamics. The Fund continues to be an actively managed strategy, driven by stock selection. We will continue to attempt to construct a robust, diversified portfolio that represents long-term structural growth opportunities – “self-help compounding investments”. And, in addition, we will never feel obliged to buy a company just because it has a large index weighting. As we go forward, we will continue to pursue attractive investments that we believe can deliver the embedded growth that characterizes emerging markets countries.

    Read full 4Q 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.

    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 >> 

  • 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. 

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    New York, NY 10017