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Van Eck Funds
05/19/15: Barron’s speaks to Portfolio Manager David Semple about why flows into emerging markets have picked up. Barron’s also taps Semple for some of the emerging markets stocks that are currently on his radar. “For us,” explains Semple, “it’s a question of not treating emerging markets as some kind of monolithic block on global growth . . . . It’s much more about specific companies and specific countries.” View article >>
03/31/15: Jason Spits consults with David Semple to see how financial advisors might approach emerging markets now that the U.S. economy is rebounding. “Stock selection needs to be actively managed and based on bottom up fundamentals, according to Semple, who said this approach will uncover opportunities or companies that represent structural growth in emerging markets.”View article >>
03/31/15: MoneyManagement analyzes China’s recent slowdown and reaches out to investment professionals for their opinions. “The decline in China's growth,” says Semple, “seems to be controlled and expected as the government attempts to transition its economic model to a consumer-based model.”View article >>
01/21/15: Citywire Global has given David Semple and Angus Shillington high marks this month. “Implementing a bottom-up stock picking strategy with fundamental research . . . the Van Eck Emerging Markets Fund . . . pursues companies with growth potential at a reasonable price.”View article >>
11/19/14: “Due diligence in Middle East/Gulf reveals solid investments. Waiting to buy cheap? It probably won’t happen.”View more tweets >>
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By: David Semple, Portfolio Manager
Market Growth Opportunities Emerge Despite China's Shadow
Van Eck Emerging Markets Fund returned 1.15% in the fourth quarter of 2015 (excluding sales charge), outperforming its benchmark, the Morgan Stanley Capital International Emerging Markets (MSCI EM) Index, which returned 0.73% for the same period. To compare, the MSCI Emerging Markets IMI Index returned 1.09% for the same period.
China News Dominates Headlines
2015 was a tough year for emerging markets. China’s news dominated headlines for most of the year along with the political and fiscal woes in Brazil and other news related to geopolitical events in the Middle East. Commodity prices continued to decline and as a result had a significant impact on asset prices, especially those that are oil related. India was one of the few positives during the year, despite some disappointments regarding the pace of reforms.
Read full 4Q'15 Commentary
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.”
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"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."
"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."
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."
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.
"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."
The expansion of domestic consumption, currently a main driver of growth potential, continues to foster a strong case for investment in the emerging markets.
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, 2016. 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 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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