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4/9/14: According to Charl Malan, “[Copper] companies are struggling to get projects on line…A year ago, the surplus for 2014 was much bigger than what we think it is today and in the numbers I am seeing today people are not discounting two very big mines that aren’t operating properly.”View article »
4/4/14: Glencore Xstrata’s former full-time chairman, Tony Hayward, was deposed in May 2013 and the search for his replacement is underway. Charl Malan says, “I would like a chairman who has multinational corporate experience, an entrepreneur-like mind-set and who is strong.” View article »
4/3/14: Zacks highlights five “top rated” precious metals mutual funds and includes GHAAX. Each fund included “has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future.”View article »
3/6/14: The Wall Street Journal speaks to investment authorities on the future price of palladium in light of possible interruptions in Russian shipments. Charl Malan says, “Tomorrow this whole [Ukraine] thing might be over. I have a much better insight of where platinum supply is going to go than I can have as to what [Russian President Vladimir] Putin is going to do tomorrow.” View article »
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Reversing its behavior over the previous quarter, the Fund slightly underperformed its commodity equities-based benchmark index, the Standard & Poor’s® (S&P) North American Natural Resources Sector Index (SPGINRTR), which returned 2.70%. 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, approximately 2%, to the Fund’s total return.
On a macro level, while, during the quarter, there were still some concerns in the market about China, these certainly did not appear to be over-riding: there was still growth and “re-balancing” continued. Perhaps more important was what happened in the developed markets. In each of the U.S., the UK, Japan and the Eurozone, there were indications that GDP is inflecting up. While none of their economies is going to take off at speed (but, then, who wants a “V” shaped recovery?), we believe there were, however, signs of potential gentle, slow and steady, synchronized global growth.
But the developed markets may not have been alone. While the situation in Brazil remained changeable (and still does), in the likes of both Indonesia and India we saw improvements in outlook for both inflation and their currencies.
A consensus also grew that there may be some sort of stimulus in China, albeit one that will not be “over announced”. However, the situation in Russia and Ukraine remained (and remains) anybody’s guess.
If there was a larger theme running through the quarter, it was the volatility of and/or strains on the supply of certain commodities. Setting aside those age-old, overarching, causes – “war and weather” – we saw supply come under pressure for a number of different reasons in a number of different countries. In January, the government in Indonesia, seeking to capture (it hopes) more value from its natural resources, banned the export of copper, nickel, bauxite and tin ore. In South Africa, with the miners’ strikes the worst they have ever been, platinum, palladium and rhodium supply was especially hard hit, with some producers even contemplating declaring force majeure. And Russia remains not only the largest producer of palladium, but also the world’s second largest platinum producer, and a leading producer of both nickel and crude oil.
With crude oil, in addition to worries about Russia, Syria continued to be an issue, and, while at the end of last year, the beginning of this year, everybody was so negative on crude because they thought Libya was going to come roaring back, the reality could not have turned out more differently. And, then, on top of these, social unrest continued, if not got worse, in Venezuela.
Read full 1Q Commentary >>
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Portfolio Manager, Van Eck Global Hard Assets Investment Team
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Joe Foster and Ima Casanova
Senior Gold Analysts
Metals & Mining Analyst
Portfolio Manager, Market Vectors® Municipal Bond ETFs
Portfolio Manager, Market Vectors® Fixed Income ETFs
Eric Fine and Natalia Gurushina
Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team
Portfolio Manager, Van Eck Unconstrained Emerging Markets Bond Fund
Portfolio Manager, Van Eck Emerging Markets Fund
Senior Gold Analyst
Founder and Chief Invesment Officer, BlueStar Indexes
Founder & Co-Portfolio Manager, Tiburon Capital Management LLC
Metals and Mining Analyst
Senior Vice President of Finance & Head of Investor Relations, Fifth Street Finance Corp.
Director of Basic Materials Research, Chair of Economic Moat Committee
Portfolio Manager, Market Vectors Fixed Income ETFs
Portfolio Manager, Van Eck International Investors Gold Investment Team
Portfolio Manager, Van Eck Emerging Markets Bond Investment Team
Director of ETF Research, Zacks Investment Research
Portfolio Manager Van Eck International Investors Gold Investment Team
Director of Manager Research, Multi-Manager Alternatives Investment Team
Stipp & Larson
“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:
Oil, natural gas, electricity, coal, and new/renewable alternative energy
2) Precious Metals Gold, silver,
palladium and platinum
3) Base/Industrial Metals Copper, aluminum, steel, iron and nickel
Agriculture Corn, wheat, sugar and water
Forest Products Timber, pulp and paper
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.
1Expenses are calculated for the 12-month period ending 12/31/13: Class A: Gross 1.45% and Net 1.38%; Class C: Gross 2.21% and Net 2.20%; Class I: Gross 1.02% and Net 1.00%; and Class Y: Gross 1.16% and Net 1.13%. Expenses are capped contractually through 05/01/14 at 1.38% for Class A; 2.20% for Class C; 1.00% for Class I; and 1.13% for Class Y. Caps exclude certain expenses, such as interest.
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
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