Van Eck Global - Since 1955

Global Hard Assets FundGHACX

  • Daily Price   as of 07/22/2014

    NAV DAILY CHANGE
    $54.74  $0.36 / +0.7%
  • Class C Details: GHACX

    INCEPTION DATE GROSS/NET EXPENSES1
    11/02/94 2.23%/2.20%
  • Fund Literature

  • Hard Assets Commentary & Review: 2Q'14

    Current Outlook: 4Q'13

    2Q'14 Recap: 

    The Fund underperformed its commodity equities-based benchmark index, the Standard & Poor’s® (S&P) North American Natural Resources Sector Index (SPGINRTR), which returned 13.37%.The Fund’s performance during the quarter continued to be driven primarily by its positions in the Energy sector, which provided the most significant positive contribution to the Fund’s total return.

    Several important factors influenced the markets in which the Fund invested during the second quarter of 2014. On the demand side there was continuing clear deceleration of growth in China. Questions around China growth persisted throughout the second quarter but were offset somewhat by the perceived benefits from the government stimulus program. On the supply side markets were affected by a number of significant disruptions. While the situation in Ukraine and the possibility of further sanctions on Russia remained concerns, there was also a continuing disruption caused by Indonesia’s January decision to implement a total ban on the export of unprocessed nickel and copper ore. During the quarter the subsequent restriction in the supply of copper continued to exacerbate what is expected to be, on the back of capital expenditure cuts, a looming tightness in the metal, particularly in 2015.

    The market was also affected by the platinum miners’ strike in South Africa which, having lasted throughout most of the first six months of the year, was eventually settled in the last week of June. And, finally, as June drew to a close, there was the accelerating deterioration of the situation in Iraq. During the period, too, the risk of inflation, not only in the U.S., but also in Europe and Asia, increasingly became both a topic of conversation and a factor for consideration in future investment decisions.

    On the sector level, within the Energy sector, Oil & Gas Exploration & Production companies, particularly those involved in the unconventional shale story, performed strongly. And, despite concerns about Iraq, the approvals around condensate exports late in the quarter, leading to speculation about eventual crude oil exports, were positive for Oil & Gas Exploration & Production companies.

    Our outlook for demand is that we continue to see a gradual improvement in global GDP, driven by a combination of both developed and emerging markets. Very importantly, we believe that as some of the most obvious products of both global geopolitics and social unrest, in the immediate term, supply issues and disruptions may continue to have the most impact on the markets in which we invest. In the longer term, however, persistent concerns over resource scarcity and political issues, such as resource nationalization, may continue to affect these markets, as may the current downtrend in capital expenditure.
     

      
    Read full 2Q Commentary >>   

      
     

  • Video Viewpoint on Hard Assets: 4Q'11 Outlook

    What is Contango, Backwardation, and Roll Yield?

    Roland Morris
    Commodities Strategist


    "There are three drivers of returns [for commodity investments]: the return on collateral or unused cash, the appreciation of the underlying commodities, and roll yield."


    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 »


    Commodities: Performance Drivers in 2014

    Roland Morris
    Commodities Strategist


    "Most index products had a fairly positive return, driven in particular by some soft commodities: grains, coffee, and protein. We believe these commodities’ appreciation was driven by some supply problems that were unexpected by the market."


    View now »


    LPL Financial Research: U.S. Energy Renaissance Q&A with Van Eck Global

    Shawn Reynolds
    Portfolio Manager, Van Eck Global Hard Assets Investment Team


    "The U.S. energy renaissance is a remarkable resurgence in oil and gas production here in the United States... It’s up over 50% in the last five years, growing at a steep rate. There’s no other country or region in the world that has grown that fast that quickly in the last 30 or 40 years."


    View now »


    Global Research: Mining in Burkina Faso

    Joe Foster and Ima Casanova
    Senior Gold Analysts


    "We invest across the spectrum, but in Burkina, it is mostly mid-tier and junior companies that are active. Most of Burkina’s gold deposits are moderate to smaller-sized, so we find smaller companies there. Because of the favorable operating environment, there are quite a few interesting opportunities."


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    Gold 2014: Investment Demand, Geopolitical Risks, and Corporate Discipline

    Joe Foster and Ima Casanova
    Senior Gold Analysts


    "Emerging markets geopolitical risks have probably been the main driver of gold this year. People are worried about financial stability with headlines coming from Thailand, Venezuela, Ukraine, and Turkey. People are also concerned about the growth in China and the Chinese banking system."


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    Gold 2Q 2014: Review of Earnings Results and Costs

    Joe Foster and Ima Casanova
    Senior Gold Analysts


    "The market focused more on cost and operating results, and did not necessarily punish companies that missed earnings expectations"


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    Industrial Metals 2Q 2014: Commodity Outlook, Capital Management, and Mine Strikes

    Charl Malan
    Metals & Mining Analyst


    "We believe that towards the latter part of 2014 capital management, defined as cost management and CAPEX reductions, will be a potential significant kicker for higher earnings. It will ultimately develop into a higher rating for metals and mining companies through either a cash flow multiple or an EV/EBITDA multiple."


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    Muni 2Q 2014 Investment Themes

    Jim Colby
    Portfolio Manager, Market Vectors® Municipal Bond ETFs


    "We have a platform where we believe the Federal Reserve is going to modestly adjust its quantitative easing and provide us with a stable platform going forward with respect to interest rates."


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    EM Debt 2Q 2014: Emerging Markets in Crisis?

    Fran Rodilosso
    Portfolio Manager, Market Vectors® Fixed Income ETFs


    "The emerging markets are not a single asset class, nor obviously a single country or region. There are pockets that are in a period of crisis… I would be remiss to talk about a potential crisis without discussing China, which has grabbed so many headlines this year."


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    Fixed Income 2Q 2014: Rates, Credit, and U.S. Corporates

    Fran Rodilosso
    Portfolio Manager, Market Vectors® Fixed Income ETFs


    "The consensus has been that the risk would be for rates to rise to 4% on the 10 year. But the perspective looking into the second quarter is that we're range-bound on 2.6 to 3%. If that consensus holds that's going to be supportive for a lot of financial markets."


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    Agribusiness 2Q 2014: Crop Yield, Pricing, and Precision Farming

    Sam Halpert
    Agriculture Analyst


    "We're headed toward the U.S. planting season and the USDA has come out with its initial estimates. They predict very good acreage numbers, both in corn and soy. Assuming normal weather, we expect another good crop which should ultimately put some downward pressure on prices."


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    Global Research: Highlights from Eastern Europe

    Eric Fine and Natalia Gurushina
    Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team


    "Even though large parts of the region benefit from growth recovery in the euro zone, especially Germany, there are two large economies, Russia and Turkey, where the growth dynamics remain extremely anemic."


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    Global Research: Poland

    Eric Fine and Natalia Gurushina
    Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team


    "I think Poland is uniquely positioned to benefit from Germany's rebound... My key concern about Poland, however, is potential exposure to change in sentiment from political risks in Ukraine."


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    Global Research: Hungary

    Eric Fine and Natalia Gurushina
    Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team


    "The shift in my outlook for Hungary has been fairly dramatic… the government, together with the central bank implemented fairly aggressive and large-scale funding for lending programs but I have yet to see the results in terms of stronger growth in Hungary."


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    Global Research: Turkey

    Eric Fine and Natalia Gurushina
    Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team


    "The macroeconomic fundamentals in Turkey are getting worse. Turkey is vulnerable, but it’s always been vulnerable. It’s never had enough reserves. Its real interest rates have never been that satisfying. But the political context is the worst I’ve seen in twenty years."


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    Global Research: Romania

    Eric Fine and Natalia Gurushina
    Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team


    "My outlook on Romania did not necessarily change for the negative but certain red flags were raised during my trip."


    View now »


    Global Research: Ukraine

    Eric Fine and Natalia Gurushina
    Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team


    "The scenario of civil war and perhaps a civil war that has broader implications for the region is a scenario we have to think about. It's hard to assign probabilities to that, but the market seems to be saying it's a zero and I think zero is definitely the wrong answer."


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    1Q 2014 Munis: Value for Muni Investors

    Jim Colby
    Portfolio Manager, Market Vectors® Municipal Bond ETFs


    "Important themes for muni investors to consider for 2014 are clearly tapering and the expectation of rising interest rates....Municipals in particular still offer a compelling advantage on a taxable-equivalent basis compared to other asset classes. The real opportunity is in the 10-year and shorter part of the yield curve."


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    SHYD: Shorten Up for Rising Rates

    Jim Colby
    Portfolio Manager, Market Vectors® Municipal Bond ETFs


    "One of SHYD's compelling features is that it is uniquely positioned to deal with some of the current problems that investors are facing in today's markets… including rising interest rates."


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    Global Fixed Income Investment Themes in 2014

    Fran Rodilosso
    Portfolio Manager, Market Vectors® Fixed Income ETFs


    "As a fixed-income investor, some key themes for 2014 are not that different from 2013. We believe that it may make sense to shorten duration, and to take on some additional credit risk to make up for the loss of yield by moving to shorter durations appear to makes sense."


    View now »


    2013 Review of Global Fixed-Income Markets

    Fran Rodilosso
    Portfolio Manager, Market Vectors® Fixed Income ETFs


    "In 2013, improving growth in the U.S. helped short-term interest rates remain low which helped support credit markets in general… European sovereign debt traded quite well last year, as did European credit, particularly high yield, for many of the same reasons that credit did well in the U.S."


    View now »


    How Will Tapering Affect EM Bonds?

    Eric Fine
    Portfolio Manager, Van Eck Unconstrained Emerging Markets Bond Fund


    “I don't have a blanket answer that says the taper is just not an issue for EM, but I do think it's been priced in generally. I think some countries have been able to react, and if tapering's happening because of good final demand, because economies are growing, then that's a high-quality problem for EM countries.”


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    Global Research: Indonesia, Malaysia, Philippines, and Vietnam

    Eric Fine
    Portfolio Manager, Van Eck Unconstrained Emerging Markets Bond Fund


    “A big attraction for Japanese and Korean investments in China is low wages. There are substantial and continuous wage pressures in China and that brings a big challenge for existing investments. The countries that I visited are all seeing substantial interest and in many cases are already seeing inflows from Japan.”


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    Why Unconstrained Approach to EM Bond Investing?

    Eric Fine
    Portfolio Manager, Van Eck Unconstrained Emerging Markets Bond Fund


    “In one word, the value of an unconstrained approach to emerging markets bond portfolio investing is ‘flexibility’. The market changed a lot in the past 20 years. At first, it was only hard currency bonds. Then came hard currency corporates followed by local currency sovereigns. Nowadays, local currency corporates are becoming more prominent. Having an unconstrained mandate is key to optimizing the portfolio using all four sub asset classes.”


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    The Street: Muni ETFs Set for Strong 2014 Despite Detroit's Breakdown

    Jim Colby
    Portfolio Manager, Market Vectors® Municipal Bond ETFs

    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.”


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    Gold: Back on Track for 2014?

    Joe Foster
    Senior Gold Analyst


    “In the near-term, $1200 is an important technical level. The gold market fell to around the $1200 level in June of this year, and we're retesting those lows right now in the wake of the Fed announcement that they will begin tapering in 2014.”


    View now »


    Israel: Positive Economic Surprises in 2013

    Steven Schoenfeld
    Founder and Chief Invesment Officer,
    BlueStar Indexes


    “There have been positive surprises in the economy, both because of fiscal discipline, greater tax receipts, and the fact that energy exports are starting to come online. We’re very positive on the Israeli economy.”


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    Israeli Capital Markets: Challenges, Return of Equity Flows, and Opportunities

    Steven Schoenfeld
    Founder and Chief Invesment Officer,
    BlueStar Indexes


    "The research we do at BlueStar looks at both valuations and technical patterns in the market. Even though the BlueStar Israel Global Index has had a very strong rally and could be due for a pause, we expect further highs in 2014.”


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    CMCAX: Using the Constant Maturity Approach to Commodities

    Roland Morris
    Commodities Strategist


    "Amongst the three drivers: commodity exposure, roll exposure, and collateral exposure, CMCAX does a great job of isolating commodity exposure. It does that through its constant maturity approach to reduce the roll risk, does not take collateral risk, and maintains a very short-term Treasury bill-holding which essentially eliminates collateral risk.


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    EMAG: No Assembly Required

    Fran Rodilosso
    Portfolio Manager, Market Vectors® Fixed Income ETFs


    “EMAG offers a way for investors to gain broad exposure to emerging markets fixed income, both hard currency and local currency, in their portfolios….EMAG encompasses the broad opportunity set within the emerging markets fixed-income space.”


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    Agribusiness: Review of 2013 and Outlook for 2014

    Sam Halpert
    Agriculture Analyst


    “RFS, which is the Renewable Fuel Standard, will likely be reformed in 2014. There has been a ton of pressure from various constituents on the fuel standard. It's based on assumptions about gasoline demand that are outdated and we think that it will change.”


    View now »


    Industrial Metals: Focusing on Capital and Cost Management in 2014

    Charl Malan
    Metals and Mining Analyst


    "We've seen many management changes among mining companies over the last year and a half. Many of the top twenty mining companies have changed senior management. Where previous management was focused much more on growth at any cost, new management is focused on capital and cost management... in 2014 [we] are likely to continue to see this aggressive approach by new management on reducing costs."


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    Current Trends: Business Development Companies

    Dean Choksi
    Senior Vice President of Finance & Head of Investor Relations, Fifth Street Finance Corp.


    "Institutional investors, particularly ones that invest in financial services, are looking at traditional lenders such as banks, and they're seeing stagnant loan growth compressing debt-interest margins, and they're seeing a much tougher regulatory environment where the regulators are clamping down on bank business models and trying to reduce risk across the sector. They're looking for areas in financial services that are positioned to benefit from those trends. So they're looking at non-bank lenders -- one area is BDCs."


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    Introduction to Business Development Companies

    Dean Choksi
    Senior Vice President of Finance & Head of Investor Relations, Fifth Street Finance Corp.


    "BDCs were developed to provide individual and retail investors access to an asset class that was typically only available to private investors and illiquid fund-type structures. As a result, several structural safeguards are put in place to reduce risk in the BDCs. Among those were reducing concentration risk and funding risk."


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    Current and Future Themes: Unconventional Resources

    Shawn Reynolds
    Portfolio Manager, Van Eck Global Hard Assets Investment Team


    "We see many opportunities in the Permian Basin, in West Texas, which is divided into two areas: the Midland eastern basin and the Delaware western basin. The Midland Basin is a bit more advanced than the Delaware basin but we have exposure to both regions."


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    Evolving Themes: Global Mining

    Shawn Reynolds
    Portfolio Manager, Van Eck Global Hard Assets Investment Team


    "There's been a big paradigm shift in the mining sector over the last year, and we are seeing high-level management changes that reflect this. The industry is shifting from a focus on growth, to one that emphasizes expense reduction, margins, returns, and eventually getting to higher valuations.”


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    5 Names From Our 5 Sources of Moats

    Elizabeth Collins
    Director of Basic Materials Research, Chair of Economic Moat Committee


    "On the moat committee, we have a little bit over 15 senior members of the equity research department. And this moat committee meets about two to three times a week, and we vote on analyst proposals for their company’s moat ratings. And basically, the analysts make a case for why they think a company should have a particular moat rating. We ask critical-thinking questions about the company’s competitive advantages. Then the voters cast their votes, and the majority rules."


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    EMLC Marks Third Anniversary

    Fran Rodilosso
    Portfolio Manager, Market Vectors Fixed Income ETFs


    "EMLC was the first U.S.-listed ETF to track an emerging markets local currency bond index, and it is now three years old, having been launched in July 2010. As of 6/30/13, EMLC's assets were over $1.2 billion, and it remained the lowest-cost emerging market local currency bond ETF."

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    Global Research: Mining in the Dominican Republic

    Joe Foster
    Portfolio Manager,
    Van Eck International Investors Gold Investment Team


    "There have been some exciting discoveries, some great drill results, come out of the Dominican Republic."


    View now »


    Indonesia: Continuing Its Record of Strong Economic Growth

    Neena Mishra
    Director of ETF Research, Zacks Investment Research


    "Indonesia’s economy has grown at an annual rate exceeding 5% in seven of the past eight years, mainly due to increasing consumption by the rising middle class."


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    Vietnam: Transition to a Leading Low-Cost Manufacturer

    Neena Mishra
    Director of ETF Research, Zacks Investment Research


    "Vietnam continues to be the main beneficiary of the migration of low-end manufacturing out of China as the producers try to take advantage of wages that are about half of that in China."


    View now »


    Global Research: Mining in Greece

    Joe Foster
    Portfolio Manager
    Van Eck International Investors Gold Investment Team


    “Greece is taking a second look at mining and we are seeing some of it gold properties being developed. They have created a fast-track program for new businesses. . .”


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    Why Alternatives Investors Should Target Minimum Allocations

    David Schassler
    Director of Manager Research, Multi-Manager Alternatives Investment Team




    View now »


    The Research Behind MOAT ETF

    Stipp & Larson
    Morningstar


    Morningstar's Chief Equity Strategist discusses the five sources of economic moat.


    View now »


    CMCAX: Understanding Contango, Backwardation, Roll Yield

    Daniel Reiss
    Associate


    Understand key investment concepts that impact Van Eck CM Commodity Index Fund (CMCAX)


    View now »


    CMCAX: The Constant Maturity Concept

    Daniel Reiss
    Associate


    Understand the "constant maturity" concept that is key to Van Eck CM Commodity Index Fund (CMCAX)


    View now »


  • Hard Assets Defined: Foundation of Industrial Economies

    Hard Assets Defined

    “Hard assets” refers to the natural resources or commodities that are mined, exploited, harvested or otherwise procured globally. 

    Hard assets have traditionally been grouped into five broad categories:

    1) Energy  
    Oil, natural gas, electricity, coal, and new/renewable alternative energy sources

    2) Precious Metals  
    Gold, silver, palladium and platinum

    3) Base/Industrial Metals  
    Copper, aluminum, steel, iron and nickel

    4) Agriculture  
    Corn, wheat, sugar and water

    5) Forest Products  
    Timber, pulp and paper

  • 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 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 1.38% for Class A, 2.20% for Class C, 1.00% for Class I, and 1.13% 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.

    Van 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 1.38% for Class A, 2.20% for Class C, 1.00% for Class I, and 1.13% 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 S&P® North American Natural Resources Sector Index (SPGINRTR) includes mining, energy, paper and forest products, and plantation-owning companies. The S&P® 500 Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation sectors. The S&P® Goldman Sachs Commodity Total Return Index (SPGSCITR) is a composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures. All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made. 

    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 risks associated with concentrating its investments in hard assets and the hard assets sector, including real estate, precious metals and natural resources, and can be significantly affected by events relating to these industries, including international political and economic developments, inflation, and other factors. The Fund’s portfolio securities may experience substantial price fluctuations as a result of these factors, and may move independently of the trends of industrialized companies. 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 and CMOs. The Fund is also subject to inflation risk, short-sales risk, market risk, non-diversification risk, leverage risk, credit risk and counterparty risk. Please see the 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 

    Van Eck Securities Corporation, Distributor
    335 Madison Avenue, 19th Floor
    New York, NY 10017
    800.826.2333