NEW YORK--(BUSINESS WIRE)--Van Eck Global, a pioneer in the commodities and hard assets sector, is celebrating the 20th anniversary of the Van Eck Global Hard Assets Fund (the “Fund”), Class A Shares (GHAAX).
“All of us at Van Eck are excited and pleased to recognize this milestone for one of our flagship funds. The success of the Fund is a true testament to the hard work and dedication of the tremendously talented people throughout the organization,” said Jan van Eck, CEO and President, Van Eck Global. “We expect this success to continue into the future and, as always, we will continue to strive to offer our clients innovative investment solutions and exceptional service.”
The Fund was launched on November 2, 1994, as one of the first “hard assets” equity mutual funds. To be considered for investment, a prospective company must derive, directly or indirectly, at least 50% of its revenues from exploration, development, production, and distribution related to energy, metals, agriculture and other natural resource sub-sectors.
As of September 30, 2014 the Fund had $4.2 billion in assets under management (AUM) across U.S. financial advisor and institutional share classes. Van Eck’s Global Hard Assets Strategy (the “Strategy”) is also available in variable insurance portfolios, UCITS-compliant sub-funds, and separately managed accounts. At the end of the third quarter, under the Strategy, such global investment vehicles accounted for $6.8 billion in assets under management.
Research, portfolio strategy, and implementation is the responsibility of Co-Portfolio Managers Charles Cameron and Shawn Reynolds, who combined have almost 60 years of investment experience between them and have been working together at Van Eck for nearly 10 years.
Mr. Cameron and Mr. Reynolds lead a 13-member Investment Team, which is one of the largest and most experienced in the industry. In addition to a strong investment background, the Team includes three certified geologists and former engineers who bring a unique perspective to the investment process. Co-Portfolio Manager Shawn Reynolds, also a certified geologist, said, “The strength of our investment team 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.”
Since inception through September 30, 2014, the Fund has generated an annualized return of nearly 11% (Class A at NAV). Over the last 10 years, the Fund has outpaced commodities-equities indices including its benchmark, the S&P® North American Natural Resources Sector Index, which returned 9.79%, as well as its prominent global equivalent, the S&P® Global Natural Resources Index, which returned 7.89%. Over this time frame, the Fund has also outperformed the S&P® GSCI Index and Bloomberg Commodity Index, which measure prices of the underlying commodities themselves, which returned -2.77% and -1.04%, respectively.
“We believe hard asset equities continue to offer diversification benefits and potential growth opportunities to investors, particularly when compared to commodities,” said Charles Cameron, Co-Portfolio Manager. “Although, at times, there can appear to be substantial headwinds, we believe technological advances across the industry, particularly in unconventional energy, will continue to have a positive impact on production costs. We also see that expanding consumption figures in certain regions around the globe suggest that demand will continue to grow. We look forward to continuing to help investors gain exposure to this exciting area.”
The 20-year tenure of the Global Hard Assets Fund is the latest example of Van Eck’s prominence in the natural resource sector. The firm’s core strategic approach originated with its formation in 1955 and the visionary investment philosophy of its founder, John van Eck, who recognized the benefits of the commodity and gold markets early on with the launch of the first U.S. gold equity fund in 1968. As of September 30, 2014, Van Eck managed $32.3 billion in AUM and currently manages assets on behalf of more than 400 institutions including endowments, foundations, hospitals, pensions, and private banks.
|Average Annual Total Returns (%) as of September 30, 2014|
|1 YR||5 YR||10 YR||
|Class A: NAV (Inception 11/2/94)||4.78||5.48||11.28||10.91|
|Class A: Maximum 5.75% load||-1.24||4.24||10.62||10.59|
|S&P North American Natural Resources Sector Index||10.27||8.82||9.79||--|
|S&P Global Natural Resources Index||3.08||2.33||7.89||--|
|S&P GSCI Index||-7.76||1.34||-2.77||--|
|Bloomberg Commodity Index||-6.58||-1.37||-1.04||--|
The table presents past performance which is no guarantee of future results and which may be lower or higher than current performance. Returns reflect temporary contractual fee waivers and/or expense reimbursements. Had the Fund incurred all expenses and fees, investment returns would have been reduced. Expenses: Class A: Gross 1.45%; Net 1.38% Expenses are capped contractually until 05/01/15 at 1.38% for Class A. Caps exclude certain expenses, such as interest. Investment returns and Fund share values will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Index definitions are listed below.
About Van Eck Global
Founded in 1955, Van Eck Associates Corporation was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes.
Market Vectors exchange-traded products have been offered by Van Eck Global since 2006 when the firm launched the nation’s first gold mining ETF. Today, Market Vectors ETFs and ETNs span several asset classes, including equities, municipal bonds and currency markets.
Van Eck Global also offers mutual funds, variable insurance products, separate accounts and alternative investments. Designed for investors seeking innovative choices for portfolio diversification, Van Eck Global’s investment products are often categorized in asset classes having returns with low correlations to those of more traditional U.S. equity and fixed income investments.
Variable insurance portfolios are only available as an option under various insurance contracts issued by life insurance and annuity companies and are not available directly to the general public. UCITS (Undertakings for Collective Investment in Transferable Securities) compliant funds are available for sale in certain jurisdictions only, and are not available for sale in the U.S. or to U.S. persons.
All indices listed are unmanaged indices 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 S&P® North American Natural Resources Sector Index (SPGINRTR) is a modified capitalization-weighted index which includes companies involved in the following categories: extractive industries, energy companies, owners and operators of timber tracts, forestry services, producers of pulp and paper, and owners of plantations. The S&P® Global Natural Resources Index (SPGNRUP) includes 90 of the largest publicly-traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified and investable equity exposure across 3 primary commodity-related sectors: agribusiness, energy, and metals & mining which tracks the global natural resources and commodities businesses. The Bloomberg Commodity Index Total Return is designed to be a highly liquid and diversified benchmark for commodities as an asset class and is composed of futures contracts on 20 physical commodities. The S&P® GSCI Total Return Index (SPGSCITR) is a world production-weighted commodity index comprised of 24 liquid, exchange-traded futures contracts. Designed as a benchmark for commodity prices, the GSCI measures the level of world commodity prices.
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 and summary 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. Bond and bond funds will decrease in value as interest rates rise. To obtain the prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read them carefully before investing.
|Van Eck Securities Corporation, Distributor|
|335 Madison Avenue, 19th Floor|
|New York, NY 10017|