VanEck VIP Unconstrained Emerging Markets Bond Fund

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  • Van Eck VIP Unconstrained Emerging Markets Bond Fund

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    The VanEck VIP Unconstrained Emerging Markets Bond Fund (previously known as the VanEck VIP Global Bond Fund1) can invest in debt securities that are issued by governments, quasi-government entities or corporations in emerging markets countries. These securities may be denominated in any currency, including those of emerging markets. By investing in emerging markets debt securities, the Fund offers exposure to emerging markets fundamentals, generally characterized by lower debts and deficits, higher growth rates and independent central banks. Lead Portfolio Manager, Eric Fine, has over 25 years of experience in emerging markets.

     

  • Fund Details

     

    as of 08/31/16
    Net Assets $28.7M
    Turnover Rate (2015) 572.0% Number of Issues 64
  • Fund Summary

     

    The Fund seeks high total return — income plus capital appreciation — by investing globally, primarily in a variety of debt securities. The Fund's benchmark is 50% J.P Morgan Emerging Markets Bond Index (EMBI) Global Diversified and 50% J.P. Morgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified.

  • Gross Currency Exposure (%)

     

    08/31/16
    U.S. Dollar 54.5
    Brazilian Real 11.0
    Indonesian Rupiah 7.3
    Peruvian New Sol 6.4
    Malaysian Ringgit 4.9
    Colombian Peso 4.8
    Mexican Peso 4.6
    Russian Ruble 2.0
    Argentinian Peso 0.0
    Cash 4.4
  • Top Countries (%)

     

    08/31/16
    Brazil 15.7
    Mexico 12.2
    Peru 10.7
    Indonesia 8.3
    Argentina 6.2
    Malaysia 4.9
    Colombia 4.8
    Russia 4.2
    South Africa 3.6
    Paraguay 2.4
    Other EM 22.6
    Cash 4.4
        
  • Credit Quality Breakdown (%)

     

    08/31/16
    AAA 0.0
    AA 1.7
    A 14.2
    BBB 23.1
    BB 33.9
    B 21.8
    CCC 0.9
    CC 0.0
    C 0.0
    NR 0.0
    Other 0.0
    Cash 4.4
    Composite Rating is an evenly weighted blend of a security’s Moody’s, S&P, Fitch, and DBRS ratings. Not Rated indicates that a security is rated by fewer than two of the four rating agencies. This composite is not intended to be a credit opinion.
  • All Holdings (%)

     

    as of 8/31/16

    View All Holdings

    These are not recommendations to buy or sell any security. Sectors and holdings may vary.
  • Fund Statistics

     

    08/31/16
    Effective Duration (Years) 5.77
    Average Years to Maturity 8.45
    Effective duration takes into account that expected cash flows will fluctuate as interest rates change. Average years to maturity is the average amount of time until the bonds mature.
  • Portfolio Weightings (%)

     

    08/31/16
    Sovereign Bond 56.3
    Corporate Bond 23.5
    Quasi-Sovereign Bond 15.8
    Cash 4.4
  • Regional Weightings (%)

     

    08/31/16
    Latin America 59.2
    Asia 23.0
    Africa 6.7
    Non-EU Europe 6.3
    EU Europe 0.4
    Cash 4.4
  • Important Disclosure 

    Source: VanEck, FactSet, Bloomberg. Emerging markets hard currency bonds are bonds denominated in foreign currencies that are generally widely accepted around the world, such as the U.S. Dollar, Euro or Yen. Portfolio facts and statistics are shown for Class I shares only unless otherwise noted; other classes may have different characteristics. These are not recommendations to buy or sell any security. Weightings and holdings may vary.

    1On May 1, 2013 the name, principal investment strategies and portfolio managers of the VIP Global Bond Fund were revised. Its name is now the VIP Unconstrained Emerging Markets Bond Fund. Click here for a detailed description of this change.

    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 its investments in emerging markets securities. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. As the Fund may invest in securities denominated in foreign currencies and some of the income received by the Fund will be in foreign currencies, changes in currency exchange rates may negatively impact the Fund’s return. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. The Fund may also be subject to credit risk, interest rate risk, sovereign debt risk, tax risk, non-diversification risk and risks associated with non-investment grade securities. Non-investment grade securities may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories.

    The Fund’s past portfolio characteristics are not necessarily an indication of the Fund’s future characteristics. Furthermore, the Fund implemented changes to its principal investment strategies on May 1, 2013. If the Fund had invested its assets in accordance with its current principal investment strategies since inception, the characteristics of the Fund would have been different than that shown above.

    Please see the prospectus and summary prospectus for information on these and other risk considerations. Bonds and bond funds will decrease in value as interest rates rise.

    The Fund's benchmark index (50% GBI-EM/50% EMBI) is a blended index consisting of 50% J.P. Morgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversify and 50% J.P. Morgan Emerging Markets Bond Index (EMBI). The J.P. Morgan GBI-EM Global Diversified tracks local currency bonds issued by Emerging Markets governments. The index spans over 15 countries. The J.P. Morgan EMBI Global Diversified tracks returns for actively traded external debt instruments in emerging markets, and is also J.P. Morgan’s most liquid U.S-dollar emerging markets debt benchmark. The 50/50 benchmark (“the Index”) is a blended index consisting of 50% J.P Morgan EMBI Global Diversified and 50% J.P. Morgan GBI-EM. The J.P. Morgan GBI-EM tracks local currency bonds issued by Emerging Markets governments. The index spans over 15 countries. J.P. Morgan EMBI Global Diversified tracks returns for actively traded external debt instruments in emerging markets, and is also J.P. Morgan’s most liquid U.S-dollar emerging markets debt benchmark. Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The Index is used with permission. The index may not be copied, used or distributed without J.P. Morgan’s written approval. Copyright 2014, J.P. Morgan Chase & Co. All rights reserved. 

    Indices are unmanaged and are not securities in which investments can be made.

    The Fund is only available as an option under various insurance contracts issued by life insurance and annuity companies. These contracts offer life and tax benefits to the beneficial owners of the Fund. The insurance or annuity company charges, fees and expenses for these benefits are not included in Fund performance. A review of the particular life and/or annuity contract will provide you with much greater detail regarding these costs and benefits.

    The Fund is not available directly to the general public. For more complete information on variable life/annuity products, including all charges and expenses, please obtain a prospectus from a licensed insurance agent/registered representative. The prospectus includes information about the investment objective, risks and charges and expenses. Please read the prospectus carefully before investing.