Van Eck Global - since 1955 
Commodity Monthly Newsletter: October 2012 Recap
Livestock Spared from Commodity Decline  
Macroeconomic Review: The month of October brought mixed news and negative performance. Commodity momentum slowed considerably on persistent concerns regarding global GDP growth, as the IMF and World Bank cut growth forecasts for China and the world. A disappointing U.S. corporate earnings season was also a significant cause of the decline in commodities. Pessimism overshadowed upbeat economic reports on consumer spending, industrial production, housing starts and U.S. employment. The next few months, however, may offer refuge for natural gas, which could benefit from the cold winter experts anticipate.

Sector Review: Livestock was the best performing and only positive sector in a month of mostly negative performance. Agriculture, energy and precious metals all declined on global growth concerns, along with the worst performing sector, industrial metals, despite tightening of supply due to the current labor strike in South Africa.
CMCI versus Traditional Commodity Indices
(CMCI = UBS Bloomberg Constant Maturity Commodity Index)
Hypothetical Growth of $10,000: November 1, 2002 — October 31, 20121,2,3 
CMCI Growth of $10,000 Graph
 


Monthly Performance Attribution: CMCI decreased 4.10% for the month of October. Livestock was the best performing sector, contributing 0.11% to Index performance. Precious metals and agriculture were negative for the month, detracting 0.24% and 0.87%, respectively, from Index performance. Energy and industrial metals were the worst performing sectors, detracting 1.14% and 1.99%, respectively, from Index performance.

Roll Impact on Performance (Contango versus Backwardation): The impact of roll yield on CMCI was -0.04% versus 0.14% and -1.34% for the S&P GSCI and the DJ UBS CI, respectively. WTI contango and Brent backwardation both widened. Natural gas contango widened significantly and remained at even more severe levels than during September. Sugar moved further into backwardation and wheat contango widened during the month. Copper moved into backwardation and silver moved into contango, while gold contango narrowed slightly.

Average Annual Returns (%) as of October 31, 20121,3
CMCI Average Annual Returns Table 

CMCI Methodology: CMCI is a next generation commodity index diversified across maturities, minimizing its exposure to the front end of the futures curves. By spreading its exposure across multiple maturities and maintaining a constant maturity per commodity, the Index seeks to mitigate the impacts of negative roll yield in contango environments. For more information on commodity futures, please read: The HAI Contango Report.

White Paper: For more information on next generation indices, please read: Expanding Asset Allocation Programs.

Stay Informed
Learn about Van Eck's Commodity Solutions4
Read Morningstar Research: Why Conventional Commodity Indexes Will Likely Disappoint
Visit vaneck.com for more Index Details 
Manage Your Subscriptions  Actively Manage Your Email Subscriptions 
Van Eck Global
335 Madison Avenue
New York, NY 10017
800.826.2333 | info@vaneck.com
vaneck.com 
For More Information
800.826.2333
info@vaneck.com  
Key Account Inquiries
Susan Marino
212.293.2094
smarino@vaneck.com  
RIA Inquiries
Kurt Gustafson
646.410.3787
kgustafson@vaneck.com  
Institutional Inquiries
Bill Best
212.293.2038
bbest@vaneck.com  
FINANCIAL PROFESSIONALS ONLY

Not for use with the general public. This email is for financial professional use only and has not been reviewed by FINRA. It was prepared by Van Eck solely for financial professionals and not for distribution to the general public. If this email is used in oral or written form by a solicitor or any representative with the general public, the financial professional will be held personally responsible to assure that such use complies with the filing and other requirements of applicable securities laws of any applicable country, and that current offering documents of the fund and current supporting data are furnished where required.

1CMCI's live inception date is January 1, 2007. All performance information presented for the Index covering the period prior to January 1, 2007 is based on hypothetical, back-tested data. Prior to such date, the Index was not calculated in real time by an independent calculation agent. Hypothetical, back-tested performance has inherent limitations and is not indicative of future results. No representation is being made that any investment will achieve performance similar to that shown. In addition, hypothetical performance does not involve financial risk, and no hypothetical performance can completely account for the impact of financial risk (such as the ability to withstand losses) or other factors in actual trading.

2The graph above illustrates a hypothetical $10,000 investment. Graph source: Van Eck Research, Pertrac, Bloomberg.

3All 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 a fund's performance. Indices are not securities in which investments can be made. Results reflect past performance and do not guarantee future results. This performance is historical and is provided to illustrate market trends. The DJ UBS CI is composed of futures contracts on 19 physical commodities. The S&P GSCI is composed of futures contracts on 24 physical commodities, with high energy concentration and limited diversification. Both indices buy and sell short-term (i.e., "front month") futures contracts. In comparison, the UBS CMCI is composed of futures contracts on 27 physical commodities and buys and sells contracts with maturities of three months and, for some commodities, up to three years.

4Please note that Van Eck Securities Corporation offers the Van Eck CM Commodity Index Fund ("Fund") that invests in the asset class included in this email.

If this material is distributed outside of your firm, you are responsible for ensuring that the distribution complies with applicable laws, rules and regulations.

UBS and Bloomberg own or exclusively license, solely or jointly as agreed between them all proprietary rights with respect to the Index. In no way do UBS or Bloomberg sponsor or endorse, nor are they otherwise involved in the issuance and offering of the Fund nor do either of them make any representation or warranty, express or implied, to the holders of the Fund or any member of the public regarding the advisability of investing in the Fund or commodities generally or in futures particularly, or as to results to be obtained from the use of the Index or from the Fund.

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. Commodities are assets that have tangible properties, such as oil, metals and agriculture. Commodities and commodity-linked derivatives may be affected by overall market movements and other factors that affect the value of a particular industry or commodity such as weather, disease, embargos or political or regulatory developments. The value of a commodity-linked derivative is generally based on price movements of a commodity, a commodity futures contract, a commodity index or other economic variables based on the commodity markets. Derivatives use leverage, which may exaggerate a loss. The Fund is subject to the risks associated with its investments in commodity-linked derivatives, risks of investing in wholly owned subsidiary, risk of tracking error, risks of aggressive investment techniques, leverage risk, derivatives risks, counterparty risks, non-diversification risk, credit risk, concentration risk and market risk. The use of commodity-linked derivatives such as swaps, commodity-linked structured notes and futures entails substantial risks, including risk of loss of a significant portion of their principal value, lack of a secondary market, increased volatility, correlation risk, liquidity risk, interest-rate risk, market risk, credit risk, valuation risk and tax risk. Gains and losses from speculative positions in derivatives may be much greater than the derivative's cost. At any time, the risk of loss of any individual security held by the Fund could be significantly higher than 50% of the security's value. Investment in commodity markets may not be suitable for all investors. The Fund's investment in commodity-linked derivative instruments may subject the fund to greater volatility than investment in traditional securities. For a description of these and other risk considerations, please refer to the Fund's prospectuses, which should be read carefully before you invest. Again, the Fund offers investors exposure to the broad commodity markets, currently by investing in a combination of commodity-linked structured notes and swaps. The Fund has obtained a private letter ruling from the IRS confirming that the income produced by certain types of structured notes constitutes "qualifying income."

Please call 800.826.2333 or visit vaneck.com for performance information current to the most recent month end and for a prospectus and summary prospectus. An investor should consider the Fund's investment objective, risks, and charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information. Please read them carefully before investing.

No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Securities Corporation. © 2012 Van Eck Securities Corporation.

Van Eck Securities Corporation
Distributor
335 Madison Avenue
New York, NY 10017