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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 >>
09/11/14: Is the tide turning for emerging markets? David Semple analyzes the emerging markets economies and believes “the asset class is on track to offer higher economic growth for the remainder of 2014 . . . and as we move into 2015.”View article >>
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By: David Semple, Portfolio Manager
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.
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
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.
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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."
Portfolio Manager, Van Eck Emerging Markets Equity Strategy
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."
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 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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