Global Hard Assets FundGHACX

  • Daily Price   as of 05/21/2015

    $36.61  $0.41 / +1.1%
  • Class C Details: GHACX

    11/02/94 2.19%/2.19%
  • Hard Assets Commentary & Review: 1Q'15

    Current Outlook: 4Q'13

    1Q'15 Recap: 

    Global Hard Assets Fund (the “Fund”) Class A shares provided a total return for the first quarter of 0.82% (excluding sales charge). The Fund outperformed its commodity equities-based benchmark index, the Standard & Poor’s® (S&P) North American Natural Resources Sector Index (SPGINRTR), which lost 1.51%.  

    During the first quarter of 2015, the focus was, once again, on crude oil. By the end of March, the U.S. rig count had dropped drastically from its peak in September 2014. While the cut in the number of rigs is ongoing, decreases in rig count began accelerating in January and February. Although the clear supply side response from both U.S. unconventional and conventional players may have started showing up in the last week or two of the quarter, we do, however, expect it to be more evident in the second half of the year.

    China’s growth continued to disappoint during the quarter. The government started easing in the fourth quarter, continued easing in the first quarter, and could likely continue easing through the rest of the year. However, even with targeted fiscal measures, interest rate cuts and reserve requirement cuts, growth still remains disappointing. In our view, inflation is not a problem, and the mainland Chinese stock market is the highest it has been since 2009.

    During the quarter, there was a great deal of talk about crude oil storage capacity and its limits. However, concerns about capacity restraints occur quite often in other areas and are something we see in the natural gas market almost every fall. Therefore, we believe that the concern about crude in this context may have been overemphasized. Might there be a “basis blowout”? It can happen, but we would see this occurrence as only being temporary as a seasonal demand increase would likely follow. Meanwhile, new pipelines have continued to be opened with the ability to take capacity away from Cushing (the NYMEX WTI crude pricing point) down to the Gulf Coast, where storage capacity is, theoretically, limitless.

    Read full 1Q Commentary »  


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

    CEO Jan van Eck: Take a Fresh Look at Oil

    Jan van Eck

    We now firmly believe that oil is in a bottoming process and this is a good time for investors to either market-weight oil or tactically add to targeted oil exposure.

    View now »

    Global Supply Disruptions: Platinum and South African Mine Strikes

    Charl Malan
    Metals & Mining Analyst

    We have a big problem within this industry in that it has to restructure itself, taking 4 million ounces that are unprofitable, bringing them down to 3 million ounces of more profitable or marginally profitable ounces.

    View now »

    Global Supply Disruptions: Nickel Export Ban in Indonesia

    Charl Malan
    Metals & Mining Analyst

    "We continue to see a significant ban on nickel pig iron out of Indonesia, which in itself has put a significant amount of pressure on supply…what we've had from the end of last year through the beginning of this year is essentially 30% of the world's nickel supply being cancelled…that’s where the question becomes ‘what happens going forward?’…"

    View now »

    Global Supply Disruptions: Coffee, Grains, and Protein

    Roland Morris
    Commodities Strategist

    "I think one of the surprising things in the commodity markets this year has been that commodity indexes in general have outperformed other asset classes year to date, and it's really because of some unique supply disruptions we've had."

    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 »

    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."

    View now »

    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."

    View now »

    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."

    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, 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 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. 

    Van Eck Securities Corporation, Distributor
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    New York, NY 10017