Van Eck Global - Since 1955

Global Hard Assets FundGHAAX

  • Daily Price   as of 04/17/2014

    $50.63000000  $0.29 / +0.6%
  • Class A Details: GHAAX

    11/02/94 1.45%/1.38%
  • Hard Assets Commentary & Review: 1Q'14

    Current Outlook: 4Q'13

    1Q'14 Recap: 

    Reversing its behavior over the previous quarter, the Fund slightly underperformed its commodity equities-based benchmark index, the Standard & Poor’s® (S&P) North American Natural Resources Sector Index (SPGINRTR), which returned 2.70%. The Fund’s performance during the quarter continued to be driven primarily by its positions in the energy sector, which provided the most significant positive contribution, approximately 2%, to the Fund’s total return.

    On a macro level, while, during the quarter, there were still some concerns in the market about China, these certainly did not appear to be over-riding: there was still growth and “re-balancing” continued. Perhaps more important was what happened in the developed markets. In each of the U.S., the UK, Japan and the Eurozone, there were indications that GDP is inflecting up. While none of their economies is going to take off at speed (but, then, who wants a “V” shaped recovery?), we believe there were, however, signs of potential gentle, slow and steady, synchronized global growth.

    But the developed markets may not have been alone. While the situation in Brazil remained changeable (and still does), in the likes of both Indonesia and India we saw improvements in outlook for both inflation and their currencies.

    A consensus also grew that there may be some sort of stimulus in China, albeit one that will not be “over announced”. However, the situation in Russia and Ukraine remained (and remains) anybody’s guess.

    If there was a larger theme running through the quarter, it was the volatility of and/or strains on the supply of certain commodities. Setting aside those age-old, overarching, causes – “war and weather” – we saw supply come under pressure for a number of different reasons in a number of different countries. In January, the government in Indonesia, seeking to capture (it hopes) more value from its natural resources, banned the export of copper, nickel, bauxite and tin ore. In South Africa, with the miners’ strikes the worst they have ever been, platinum, palladium and rhodium supply was especially hard hit, with some producers even contemplating declaring force majeure. And Russia remains not only the largest producer of palladium, but also the world’s second largest platinum producer, and a leading producer of both nickel and crude oil.

    With crude oil, in addition to worries about Russia, Syria continued to be an issue, and, while at the end of last year, the beginning of this year, everybody was so negative on crude because they thought Libya was going to come roaring back, the reality could not have turned out more differently. And, then, on top of these, social unrest continued, if not got worse, in Venezuela.

    Read full 1Q Commentary >>   


  • Video Viewpoint on Hard Assets

    LPL Financial Research:US Energy Renaissance Q&A with Van Eck Global

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

    "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."

    View now »

    Industrial Metals 2Q 2014: Commodity Outlook, Capital Management, and Mine Strikes

    Charl Malan
    Metals & Mining Analyst

    "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."

    View now »

    Agribusiness 2Q 2014: Crop Yield, Pricing, and Precision Farming

    Sam Halpert
    Agriculture Analyst

    "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."

    View now »

    Agribusiness: Review of 2013 and Outlook for 2014

    Sam Halpert
    Agriculture Analyst

    “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.”

    View now »

    Industrial Metals: Focusing on Capital and Cost Management in 2014

    Charl Malan
    Metals and Mining Analyst

    "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."

    View now »

    Current and Future Themes: Unconventional Resources

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

    "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."

    View now »

    Evolving Themes: Global Mining

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

    "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.”

    View now »

  • Hard Assets Defined: Foundation of Industrial Economies

    Hard Assets Defined

    “Hard assets” refers to the natural resources or commodities that are mined, exploited, harvested or otherwise procured globally. 

    Hard assets have traditionally been grouped into five broad categories:

    1) Energy  
    Oil, natural gas, electricity, coal, and new/renewable alternative energy sources

    2) Precious Metals  
    Gold, silver, palladium and platinum

    3) Base/Industrial Metals  
    Copper, aluminum, steel, iron and nickel

    4) Agriculture  
    Corn, wheat, sugar and water

    5) Forest Products  
    Timber, pulp and paper

  • 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 or Class C 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 for more information.

    1Expenses are calculated for the 12-month period ending 12/31/13: Class A: Gross 1.45% and Net 1.38%; Class C: Gross 2.21% and Net 2.20%; Class I: Gross 1.02% and Net 1.00%; and Class Y: Gross 1.16% and Net 1.13%. Expenses are capped contractually through 05/01/14 at 1.38% for Class A; 2.20% for Class C; 1.00% for Class I; and 1.13% for Class Y. Caps exclude certain expenses, such as interest.

    2The S&P® North American Natural Resources Sector Index (SPGINRTR) includes mining, energy, paper and forest products, and plantation-owning companies. The S&P® 500 Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation sectors. The S&P® Goldman Sachs Commodity Total Return Index (SPGSCITR) is a composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures. 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, 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.

    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