Van Eck Global - Since 1955

Multi-Manager Alternatives FundVMAIX

  • Daily Price   as of 08/28/2014

    NAV DAILY CHANGE
    $9.47  $0 / +0.0%
  • Class I Details: VMAIX

    INCEPTION DATE GROSS/NET EXPENSES1
    06/05/09 3.41%/2.84%
  • Quarterly Recap: 2Q 2014

    MMA Graph Analyze

    Market Review


    Equities and fixed income investments delivered impressive results during the second quarter of 2014. The S&P 500 Index returned 5.23% and the Barclays Aggregate Bond Index returned 2.04%. The markets appeared to remain hyper-focused on the U.S. Federal Reserve’s (the “Fed”) exit strategy for its quantitative easing program. The Fed continues to communicate its intent to wind-down the asset-purchase program based on the strengthening economy, but may maintain an ultra-low target range of 0.0% to 0.25% for the federal funds rate to support maximum employment and asset price stability.

    Within the equity markets, large-cap stocks, as represented by the Russell Top 200 Index, outperformed small-cap stocks, as represented by the Russell 2000 Index, by 3.13%. Developed international and emerging market equities, as represented by the MSCI EAFE Index and the MSCI Emerging Markets Index, returned 4.09% and 6.60%, respectively. The fixed income markets benefited from declining interest rates during the period. The yield of the 10-year U.S. Treasury note declined from a high of more than 2.80% in early April to 2.53% at the end of the quarter.

    Strategy Review  


    The Investment Committee continues to target the Fund’s volatility towards the mid-point of its 4-6% range, while remaining diversified across long/short equity, event-driven, fixed income, volatility, multi-strategy and global macro strategies. The Investment Committee has been actively seeking out new strategies that offer the potential to deliver uncorrelated risk and return profiles with minimal dependence on the directionality of the equity and fixed income markets.

    Portfolio allocation changes during the quarter include the removal of sub-adviser Millrace Asset Group, Inc. (“Millrace”) (0.0% of Fund net assets*), a long/short equity manager with a focus on growth-oriented companies, and a reduction in the allocation to the AQR Managed Futures Fund. The allocation to the internally managed tactical component of the Fund was increased during the quarter. Alpha-seeking tactical positions were increased during the quarter based on our conviction in the ability of our internal strategies to potentially generate performance, and the uncorrelated risk and return profile resulting from the market-neutral positioning.

    *All weightings as of June 30, 2014.

    Read full 2Q Commentary >>  

  • Video Viewpoint

    Why Alternatives Investors Should Target Minimum Allocations

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




    View now »


  • Hedge-Style Strategies Defined

    Skyscrapers

    In general, “hedge-style” strategies are advanced investment techniques that may, among other things, attempt to reduce risk and enhance returns. Typically, “hedge-style” investments have been structured as private investment vehicles known as hedge funds. Recently, however, these strategies have begun to appear in mutual fund structures as well.

    At Van Eck, we group hedge-style strategies into five broad categories:

    Arbitrage

    Seeks to exploit price differences in identical, related or similar securities on different markets or in different forms so as to minimize overall market risk. Strategies may include convertible arbitrage, fixed income or interest rate arbitrage, pairs trading and merger arbitrage.

    Equity (Long/Short)

    Seeks to exploit market trends and inefficiencies in equity markets. Strategies may include equity market neutral, long-only, long/short equity and short-only.

    Fixed Income (Long/Short)

    Seeks to exploit market trends and inefficiencies in fixed income markets. Strategies may include long-only, long/short fixed income and distressed securities.

    Global Macro

    Seeks to exploit broad market trends in equities, interest rates or commodity prices. Strategies may include emerging markets, special situations and managed futures.

    Tactical Allocation/Cash

    Seeks to control/adjust the beta and volatility of the Fund. Selected securities, typically ETFs, are allocated (both long and short) to keep the Fund's exposures in line with the targets set by the investment committee. "Cash" refers to cash and/or cash equivalents.

  • Making the Investment Case for Hedge-Style Strategies

     
  • 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 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.

    1Van Eck Absolute Return Advisers 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 2.40% for Class A, 3.15% for Class C, 1.95% for Class I, and 2.00% 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 HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe, and includes convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage strategies. The S&P® 500 Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation 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 rather than a complete program. Because the Fund implements a fund-of-funds strategy, an investor in the Fund will bear the operating expenses of the “Underlying Funds” in which the Fund invests. The total expenses borne by an investor in the Fund will be higher than if the investor invested directly in the Underlying Funds, and the returns may therefore be lower. The Fund, the Sub-Advisers and the Underlying Funds may use aggressive investment strategies, including absolute return strategies, which are riskier than those used by typical mutual funds. If the Fund and Sub-Advisers are unsuccessful in applying these investment strategies, the Fund and you may lose more money than if you had invested in another fund that did not invest aggressively. The Fund is subject to risks associated with the Sub-Advisers making trading decisions independently, investing in other investment companies, using a particular style or set of styles, basing investment decisions on historical relationships and correlations, trading frequently, using leverage, making short sales, being non-diversified and investing in securities with low correlation to the market. The use of leverage may magnify losses. The Fund is also subject to risks associated with investments in foreign markets, emerging market securities, small cap companies, debt securities, derivatives, commodity-linked instruments, illiquid securities, asset-backed securities and CMOs. Please see the prospectus and summary prospectus for information on these as well as 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