Van Eck Global - Since 1955

Emerging Markets FundEMRYX

  • Daily Price   as of 04/24/2014

    $14.48  $0.02 / +0.1%
  • Class Y Details: EMRYX

    4/30/10 1.51%/1.51%
  • Quarterly Recap: 4Q 2013

    EM RIO 2

    By: David Semple, Portfolio Manager

    View Fund's recent performance >> 

    The Van Eck Emerging Markets Fund gained 7.81% in the fourth quarter.  

    Market Review  

    The concern over the potential withdrawal of the unprecedented monetary accommodation that afflicted parts of emerging markets over the summer eased during the fall. Generally, there was more optimism that global growth was on more solid footing, while there was also more considered reflection about the outlook for emerging markets in a “tighter” world. The hard hit emerging markets currencies of the so-called “fragile five” stabilized for the most part. The commonality of these challenged countries tends to be a combination of the need for external financing and economic reform and poor fiscal accounts. Additionally, foreigners had been enthusiastic buyers of credit in certain countries, and losses came as an education for less seasoned investors. The reality of tapering has been a little kinder to emerging markets, but there is no question that challenges for the broad asset class remain.

    China was particularly in focus this quarter, as the relatively new leadership met to discuss challenges and priorities for the next few years. Meanwhile politics became a significant issue in Turkey and Thailand. Though Russia is stable politically, the Russian economy disappointed in the fourth quarter and remains highly geared to the extractive industries.

    The South African Rand appears to have stabilized, but an ugly string of labor stoppages orchestrated by the country’s largest labor unions, and weak global demand for South Africa’s commodity exports, persist. In Mexico, the passage of the energy reform bill is a major positive, allowing much more private sector involvement in the sector. Brazil remains challenged by the Brazilian government, which continues to be criticized for its heavy intervention in the domestic economy as it tries to engineer a lower inflation. Finally, Frontier Markets continued their strong performance.

    Market Outlook  

    While the global economy appears stronger, it is clear that the marginally better economic news continues to be developed market centric. We have seen the start of tapering and we believe that there will be much more to come as the monetary environment (hopefully) normalizes. While we have sympathy for the argument that better global growth will ultimately better benefit emerging markets, we do think that the beta that they have to such growth is diminishing. For instance, a tech supply chain that is historically geared to hardware suffers as cloud computing gains. The exploitation of unconventional energy resources is also a significant positive for the United States. So, the impetus for performance has, at the margin, fallen more heavily on the domestic environment in Emerging Markets. In the shorter term, politics has been a discrete issue in certain countries, while the higher cost of capital will hinder capital hungry nations.

    Read full 4Q Commentary  


  • Video Viewpoint

    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 »

    EM Equities: Middle-Income Trap, Tapering, and Frontier Markets 2014

    David Semple
    Portfolio Manager, Van Eck Emerging Markets Fund

    “Over time, we think that there will be increasing idiosyncrasies from country to country. Allied to that is the effect of tapering which should sort out which countries are stronger than others. Our thesis last year was to not see emerging markets as a beta block but rather as a collection of countries where we can pick the best stocks.”

    View now »

  • 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 >> 

  • Making the Investment Case for Emerging Markets

  • 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.

    1Expenses are calculated for the 12-month period ending 12/31/13: Class A: Gross 1.67% and Net 1.67%; Class C: Gross 2.61% and Net 2.50%; Class I: Gross 2.31% and Net 1.00%; and Class Y: Gross 1.51% and Net 1.51%. Expenses are capped contractually through 05/01/15 at 1.95% for Class A; 2.50% for Class C; 1.00% for Class I; and 1.70% for Class Y. Caps exclude certain expenses, such as interest.

    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. 

    Not FDIC Insured — No Bank Guarantee — May Lose Value 

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    New York, NY 10017