Market Vectors ETFs
Van Eck Funds
01/14/15: With growing concerns about the world economy, copper prices endured their biggest one-day decline in over three years. Senior analyst Charl Malan believes that copper's decline may force companies to cut production "and that new projects, that are supposed to deliver a 5% supply growth in 2016, will not happen."View article »
11/03/14: "The strength of our investment team," explains Co-Portfolio Manager Shawn Reynolds, "is derived from our diverse backgrounds, which include not only strong technical and financial capabilities, but also our on-the-ground experience. We bring a unique investment approach based on this expertise which is critical to analyzing trends and prices in the industry."View article »
09/19/14: The Global Hard Assets Fund has earned a Zacks #1 Rank (Strong Buy) as Zacks "expect the fund to outperform its peers in the future."View article »
04/09/14: 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 »
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Global Hard Assets Fund (the “Fund”) Class A shares provided a total return for the third quarter of -6.85% (excluding sales charge). The Fund underperformed its commodity equities-based benchmark index, the Standard & Poor’s® (S&P) North American Natural Resources Sector Index (SPGINRTR), which lost 1.81% over the same period.
Positions in the Energy sector were the primary contributors to negative performance. Within the sector, negative performance stemmed mainly from the Oil & Gas Exploration & Production and Oil & Gas Storage & Transportation sub-industries.
By contrast, however, in the Energy sector, the Oil & Gas Refining & Marketing sub-industry contributed positive performance. The Forest Products sub-industry also provided positive returns. During the quarter, the Fund continued to hold no position in Integrated Oil & Gas.
The end of the year was tough. Global growth remained anemic, with little light apparent at the end of the tunnel. Growth in China continued to disappoint, with scant respite for the many commodities producers, not just mining companies, leveraged to the country. Perhaps even more so than in the third quarter of the year, with continuing weak commodities prices, the market became increasingly worried about companies’ debt and liquidity levels and just how they proposed to address them successfully.
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Portfolio Manager, Natural Resources Equity
“We’re still working on the assessment and appraisal of where all these resources are. As the years go on, we've got hundreds and thousands of wells to drill into these shales and unconventional resources that will be more manufacturing-oriented.”
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“Hidden behind the scenes is a very serious supply response to low prices occurring across several industries and sectors, especially the energy and industrial mining sectors.”
"The majors are still stuck in the old model, trying to drill in deep water in megaprojects, which we are now finding out don't work and didn't work with oil at $100 a barrel. While the independent E&P companies are now showing that they can be successful, drill great wells, and grow with oil at $30 a barrel."
"Refiners differ quite a bit relative to many other sub-industries or other companies in the energy industry in that they are not entirely dependent on oil prices for their gains or losses."
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.
“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 05/01/14: 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 MSCI ACWI Commodity Producers Index captures the global opportunity set of commodity producers in the energy, metal and agricultural sectors. 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.
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