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Current and Future Themes: Unconventional Resources(3:23)

Shawn Reynolds
Portfolio Manager, Van Eck Global Hard Assets Investment Team

October 9, 2013
  

What is unconventional energy?


 

SHAWN REYNOLDS: Unconventional resources is really accessing hydrocarbons via hydraulic fracturing and horizontal drilling. That's a theme that we've been investing in for quite some time.  If you go back four, five, or six years, it was all about natural gas. That has evolved into accessing the resources, mostly focused around oil. We have been moving around the country into different geographic regions. Originally it all started in the Barnett Shale around Fort Worth, and then up into Appalachia in Pennsylvania, and then the Haynesville in Louisiana. Overall, gas plays.  And then the first oil play was up in Montana’s Bakken formation.


 

Where are opportunities now?


 

REYNOLDS: Now, we see a lot of opportunity in West Texas, which is known as the Permian Basin. The Permian Basin is divided into two different parts: the eastern basin, which is the Midland, and the western basin, which is Delaware. We really see value in both of those areas. The Midland Basin is a little bit more advanced than the Delaware basin but we have exposure to both of those regions.


 

Drilling into Midland


 

REYNOLDS: The other really interesting thing about the Midland Basin is that it is like a layer of cake, and there are many different zones -- we call them pay zones -- that are our prospective.  The market right now is giving some of these companies value for one, maybe two, of these different pay zones.  What we see is that there's actually probably more like four, five, or maybe as many as six or seven that you should actually start giving value for into the stock price.  We don't see it today, but we see that evolving over the next several years.


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IMPORTANT DISCLOSURE


The views and opinions expressed are those of the speaker and are current as of the video's posting date. Video commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. All performance information is historical and is not a guarantee of future results. For more information about Van Eck Funds, Market Vectors ETFs or fund performance, visit vaneck.com. Any discussion of specific securities mentioned in the video commentaries is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary. All indices mentioned are measures of common market sectors and performance. It is not possible to invest directly in an index. Information on holdings, performance and indices can be found at vaneck.com.


Sean Reynolds is the Portfolio Manager of Van Eck Global’s actively managed mutual fund Van Eck Global Hard Assets Fund and is not involved in the portfolio management of Van Eck’s passively managed Market Vectors ETFs.


Important disclosure for Van Eck Global Hard Assets Investors:  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.


Please note that Van Eck Securities Corporation offers additional investment products that invest in the asset class(es) included in this video [Market Vectors Unconventional Oil & Gas ETF]. Important disclosure for Unconventional Oil & Gas ETF Investors:  Investments in the unconventional oil and gas sector are exposed to certain risks which include, among others, volatility of energy prices, exploration and production spending, operating hazards, limited production history, royalty interests, liens and other burdens, third party pipeline availability and capacity, and an evolving regulatory environment. Additionally, the Fund is subject to changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations and other risks inherent to international investing. Investors should be willing to accept a high degree of volatility and the potential of significant loss. The Fund may loan its securities, which may subject it to additional credit and counterparty risk. See the Fund’s prospectus and summary prospectus for more complete information regarding investment risks.


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ETF Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading Fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual Fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.


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Hard Assets (12)
LPL Financial Research:US Energy Renaissance Q&A with Van Eck Global(9:56)
Shawn Reynolds
Portfolio Manager, Van Eck Global Hard Assets Investment Team

posted on April 14, 2014


"The U.S. energy renaissance is a remarkable resurgence in oil and gas production here in the United States... It’s up over 50% in the last five years, growing at a steep rate. There’s no other country or region in the world that has grown that fast that quickly in the last 30 or 40 years."


Global Research: Mining in Burkina Faso(4:29)
Joe Foster and Ima Casanova
Senior Gold Analysts

posted on April 10, 2014


"We invest across the spectrum, but in Burkina, it is mostly mid-tier and junior companies that are active. Most of Burkina’s gold deposits are moderate to smaller-sized, so we find smaller companies there. Because of the favorable operating environment, there are quite a few interesting opportunities."


Gold 2014: Investment Demand, Geopolitical Risks, and Corporate Discipline (4:25)
Joe Foster and Ima Casanova
Senior Gold Analysts

posted on April 7, 2014


"Emerging markets geopolitical risks have probably been the main driver of gold this year. People are worried about financial stability with headlines coming from Thailand, Venezuela, Ukraine, and Turkey. People are also concerned about the growth in China and the Chinese banking system."


Gold 2Q 2014: Review of Earnings Results and Costs(4:29)
Joe Foster and Ima Casanova
Senior Gold Analysts

posted on April 3, 2014


"The market focused more on cost and operating results, and did not necessarily punish companies that missed earnings expectations"


Industrial Metals 2Q 2014: Commodity Outlook, Capital Management, and Mine Strikes(5:58)
Charl Malan
Metals & Mining Analyst

posted on April 3, 2014


"We believe that towards the latter part of 2014 capital management, defined as cost management and CAPEX reductions will be a potential significant kicker for higher earnings. It will ultimately develop into a higher rating for metals and mining companies through either a cash flow multiple or an EV/EBITDA multiple."


Agribusiness 2Q 2014: Crop Yield, Pricing, and Precision Farming(5:24)
Sam Halpert
Agriculture Analyst

posted on March 25, 2014


"We're headed toward the U.S. planting season and the USDA has come out with its initial estimates. They predict very good acreage numbers, both in corn and soy. Assuming normal weather, we expect another good crop which should ultimately put some downward pressure on prices."


Gold: Back on Track for 2014?(5:41)
Joe Foster
Senior Gold Analyst

posted on January 21, 2014


“In the near-term, $1200 is an important technical level. The gold market fell to around the $1200 level in June of this year, and we're retesting those lows right now in the wake of the Fed announcement that they will begin tapering in 2014.”


CMCAX: Using the Constant Maturity Approach to Commodities(8:27)
Roland Morris
Commodities Strategist

posted on January 7, 2014


"Amongst the three drivers: commodity exposure, roll exposure, and collateral exposure, CMCAX does a great job of isolating commodity exposure. It does that through its constant maturity approach to reduce the roll risk, does not take collateral risk, and maintains a very short-term Treasury bill-holding which essentially eliminates collateral risk.


Agribusiness: Review of 2013 and Outlook for 2014(6:01)
Sam Halpert
Agriculture Analyst

posted on December 4, 2013


“RFS, which is the Renewable Fuel Standard, will likely be reformed in 2014. There has been a ton of pressure from various constituents on the fuel standard. It's based on assumptions about gasoline demand that are outdated and we think that it will change.”


Industrial Metals: Focusing on Capital and Cost Management in 2014(7:09)
Charl Malan
Metals and Mining Analyst

posted on November 20, 2013


"We've seen many management changes among mining companies over the last year and a half. Many of the top twenty mining companies have changed senior management. Where previous management was focused much more on growth at any cost, new management is focused on capital and cost management... in 2014 [we] are likely to continue to see this aggressive approach by new management on reducing costs."


Current and Future Themes: Unconventional Resources(3:23)
Shawn Reynolds
Portfolio Manager, Van Eck Global Hard Assets Investment Team

posted on October 9, 2013


"We see many opportunities in the Permian Basin, in West Texas, which is divided into two areas: the Midland eastern basin and the Delaware western basin. The Midland Basin is a bit more advanced than the Delaware basin but we have exposure to both regions."


Evolving Themes: Global Mining (4:00)
Shawn Reynolds
Portfolio Manager, Van Eck Global Hard Assets Investment Team

posted on October 9, 2013


"There's been a big paradigm shift in the mining sector over the last year, and we are seeing high-level management changes that reflect this. The industry is shifting from a focus on growth, to one that emphasizes expense reduction, margins, returns, and eventually getting to higher valuations.”


Emerging Markets (15)
EM Debt 2Q 2014: Emerging Markets in Crisis? (4:23)
Fran Rodilosso
Portfolio Manager, Market Vectors® Fixed Income ETFs

posted on April 1, 2014


"The emerging markets are not a single asset class, nor obviously a single country or region. There are pockets that are in a period of crisis… I would be remiss to talk about a potential crisis without discussing China, which has grabbed so many headlines this year."


Fixed Income 2Q 2014: Rates, Credit, and U.S. Corporates(5:00)
Fran Rodilosso
Portfolio Manager, Market Vectors® Fixed Income ETFs

posted on April 1, 2014


"The consensus has been that the risk would be for rates to rise to 4% on the 10 year. But the perspective looking into the second quarter is that we're range-bound on 2.6 to 3%. If that consensus holds that's going to be supportive for a lot of financial markets."


Global Research: Highlights from Eastern Europe(3:52)
Eric Fine and Natalia Gurushina
Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team

posted on March 11, 2014


"Even though large parts of the region benefit from growth recovery in the euro zone, especially Germany, there are two large economies, Russia and Turkey, where the growth dynamics remain extremely anemic."


Global Research: Poland(3:25)
Eric Fine and Natalia Gurushina
Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team

posted on March 12, 2014


"I think Poland is uniquely positioned to benefit from Germany's rebound... My key concern about Poland, however, is potential exposure to change in sentiment from political risks in Ukraine."


Global Research: Hungary(4:38)
Eric Fine and Natalia Gurushina
Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team

posted on March 14, 2014


"The shift in my outlook for Hungary has been fairly dramatic… the government, together with the central bank implemented fairly aggressive and large-scale funding for lending programs but I have yet to see the results in terms of stronger growth in Hungary."


Global Research: Turkey(5:36)
Eric Fine and Natalia Gurushina
Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team

posted on March 14, 2014


"The macroeconomic fundamentals in Turkey are getting worse. Turkey is vulnerable, but it’s always been vulnerable. It’s never had enough reserves. Its real interest rates have never been that satisfying. But the political context is the worst I’ve seen in twenty years."


Global Research: Romania(3:48)
Eric Fine and Natalia Gurushina
Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team

posted on March 14, 2014


"My outlook on Romania did not necessarily change for the negative but certain red flags were raised during my trip."


Global Research: Ukraine(4:59)
Eric Fine and Natalia Gurushina
Portfolio Manager and Economist, Van Eck Unconstrained Emerging Markets Bond Investment Team

posted on February 12, 2014


"The scenario of civil war and perhaps a civil war that has broader implications for the region is a scenario we have to think about. It's hard to assign probabilities to that, but the market seems to be saying it's a zero and I think zero is definitely the wrong answer."


Global Fixed Income Investment Themes in 2014(6:35)
Fran Rodilosso
Portfolio Manager, Market Vectors® Fixed Income ETFs

posted on February 21, 2014


"As a fixed-income investor, some key themes for 2014 are not that different from 2013. We believe that it may make sense to shorten duration, and to take on some additional credit risk to make up for the loss of yield by moving to shorter durations appear to makes sense."


2013 Review of Global Fixed-Income Markets(4:37)
Fran Rodilosso
Portfolio Manager, Market Vectors® Fixed Income ETFs

posted on February 21, 2014


"In 2013, improving growth in the U.S. helped short-term interest rates remain low which helped support credit markets in general… European sovereign debt traded quite well last year, as did European credit, particularly high yield, for many of the same reasons that credit did well in the U.S."


How Will Tapering Affect EM Bonds?(4:08)
Eric Fine
Portfolio Manager, Van Eck Unconstrained Emerging Markets Bond Fund

posted on February 19, 2014


“I don't have a blanket answer that says the taper is just not an issue for EM, but I do think it's been priced in generally. I think some countries have been able to react, and if tapering's happening because of good final demand, because economies are growing, then that's a high-quality problem for EM countries.”


Global Research: Indonesia, Malaysia, Philippines, and Vietnam(9:51)
Eric Fine
Portfolio Manager, Van Eck Unconstrained Emerging Markets Bond Fund

posted on February 19, 2014


“A big attraction for Japanese and Korean investments in China is low wages. There are substantial and continuous wage pressures in China and that brings a big challenge for existing investments. The countries that I visited are all seeing substantial interest and in many cases are already seeing inflows from Japan.”


Why Unconstrained Approach to EM Bond Investing?(4:25)
Eric Fine
Portfolio Manager, Van Eck Unconstrained Emerging Markets Bond Fund

posted on February 11, 2014


“In one word, the value of an unconstrained approach to emerging markets bond portfolio investing is ‘flexibility’. The market changed a lot in the past 20 years. At first, it was only hard currency bonds. Then came hard currency corporates followed by local currency sovereigns. Nowadays, local currency corporates are becoming more prominent. Having an unconstrained mandate is key to optimizing the portfolio using all four sub asset classes.”


EM Equities: Middle-Income Trap, Tapering, and Frontier Markets 2014(5:56)
David Semple
Portfolio Manager, Van Eck Emerging Markets Fund

posted on January 24, 2014


“Over time, we think that there will be increasing idiosyncrasies from country to country. Allied to that is the effect of tapering which should sort out which countries are stronger than others. Our thesis last year was to not see emerging markets as a beta block but rather as a collection of countries where we can pick the best stocks.”


EMAG: No Assembly Required(5:14)
Fran Rodilosso
Portfolio Manager, Market Vectors® Fixed Income ETFs

posted on December 10, 2013


“EMAG offers a way for investors to gain broad exposure to emerging markets fixed income, both hard currency and local currency, in their portfolios….EMAG encompasses the broad opportunity set within the emerging markets fixed-income space.”


Editor's Choice (4)
Muni 2Q 2014 Investment Themes (5:06)
Jim Colby
Portfolio Manager, Market Vectors® Municipal Bond ETFs

posted on April 1, 2014


"We have a platform where we believe the Federal Reserve is going to modestly adjust its quantitative easing and provide us with a stable platform going forward with respect to interest rates."


SHYD: Shorten Up for Rising Rates(4:43)
Jim Colby
Portfolio Manager, Market Vectors® Municipal Bond ETFs

posted on February 26, 2014


"One of SHYD's compelling features is that it is uniquely positioned to deal with some of the current problems that investors are facing in today's markets… including rising interest rates."


Israel: Positive Economic Surprises in 2013(5:19)
Steven Schoenfeld
Founder and Chief Invesment Officer,
BlueStar Indexes


posted on January 15, 2014


“There have been positive surprises in the economy, both because of fiscal discipline, greater tax receipts, and the fact that energy exports are starting to come online. We’re very positive on the Israeli economy.”


Israeli Capital Markets: Challenges, Return of Equity Flows, and Opportunities(7:56)
Steven Schoenfeld
Founder and Chief Invesment Officer,
BlueStar Indexes


posted on January 15, 2014


"The research we do at BlueStar looks at both valuations and technical patterns in the market. Even though the BlueStar Israel Global Index has had a very strong rally and could be due for a pause, we expect further highs in 2014.”


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