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Van Eck Global - Since 1955

Unconstrained Emerging Markets Bond Fund

  • Ticker:- EMBAX;false;;
  • Ticker Group:- EMB;false;;

  • Making News

    • Barron’s: Defensive Inflation Plays

      4/22/13: Looking into the future beyond the Fed’s easing policy, Barron’s considers ways to hedge against rising inflation. Eric Fine advises bond investors to “own inflation-linked securities in countries with a relatively high degree of rule of law” and to “have currency exposure in countries that will defend against inflation.”
      View article >>       


    • Institutional Investor: A Tale of Two Crises

      4/12/13: Van Eck’s Eric Fine writes for Institutional Investor about what investors can learn from the ways certain emerging markets have successfully dealt with financial crises. Foreign central banks, he attests, are “buying the bonds of countries that share their policy frameworks” for reserve assets.
      View article >>       


    • Bloomberg Businessweek: Argentine Bonds Fall on Government Proposal to Default Holdouts

      4/01/13: Bloomberg Businessweek shines a light on the terms of the Argentine government’s proposal to pay defaulted debtholders and consults Eric Fine. “The Argentines made no compromises,” he says. “[They are] playing for either delay or confrontation, neither of which is positive.”
      View article >>       


    • The WSJ: Investors Seek Yield in Emerging Markets

      3/01/13: Weighing the risks and rewards of investing in local-currency emerging-markets debt vs. hard currency debt, The WSJ consults Eric Fine. “Currencies will depreciate against currencies of countries with independent, well-managed [central] banks,” Fine says in reference to the U.S., the U.K. and Japan.
      View article >>       


    • ETF Daily News: Van Eck Unconstrained Emerging Markets Bond Fund Passes $100 Million AUM Mark in Six Months

      3/01/13: ETF Daily News highlights Van Eck’s actively managed EMBAX, which is overseen by lead Portfolio Manager Eric Fine. The article also emphasizes Van Eck’s overall growth in emerging markets, much of which is “attributable to its Market Vectors ETFs that are focused on emerging markets debt. This includes the Emerging Markets Local Currency Bond ETF (EMLC; $1.5 billion) and Emerging Markets High Yield Bond ETF (HYEM; $43 million).”
      View article >>       


Financial Professional Access

 

  • Daily Price   as of 05/22/2013

    NAV† DAILY CHANGE
    $9.73  $-0.03 / -0.3%

  • Class A Details: EMBAX

    INCEPTION DATE GROSS/NET EXPENSES1
    07/09/12 1.67/1.25%

  • Monthly Commentary: April 2013

    Angel Falls

     By: Eric Fine, Portfolio Manager  

    The Fund’s biggest winners in April were Mexico, in hard and local currency, and South Africa and Turkey, in local currency. The Fund’s biggest losers were our hedge on Euro exposure from our local currency investments, and Indonesia and Zambia in local currency. It appears that near-term risks from Europe have abated, so we are preparing to reduce our Euro hedges. In addition to various country-level and bond-level changes, we reduced cash slightly and have maintained hard-currency debt at 25% of the portfolio. While reducing our exposure to commodity producers, we increased our exposure to commodity-importers.   
     

    The push of money out from developed economies with higher debts and deficits and expanding central bank balance sheets, and into emerging economies with lower debts and deficits and relatively tighter central bank balance sheets remains a key long-term trend, in our opinion. Europe seems to pose a risk at two levels – concerns over breakup and the prospect of an easier central bank – both of which point to risk for the Euro and related markets. On the break-up risk, we point out that some of the short-term risks have likely subsided, with Italy having formed a government, and Cyprus having approved its depositor-financed “bailout.”

    Weak growth and the prospect of an easier central bank have recently been an important driver of European and global risk, in our view. This means that the Euro could come under pressure from both break-up risk as well as easing risk. We would regard such a development as very positive for duration, generally, as it would represent easing by what is viewed as a holdout among the major central banks. We see break-up risk in Europe as high in the long-run, with Euro easing risk as growing in the short-run.

    Commodity prices are also a potential new risk factor. Commodity markets suffered a bout of pronounced weakness in April, with WTI crude oil dropping $10 per-barrel from the beginning of the month to the low on April 17, and some oil-exporters, notably Russia and Nigeria, saw their currencies come under related pressure. We remain comfortable with our exposure to these countries, primarily due to their strong balance sheets, high reserves with which to prevent or address shortfalls, and inflation-focused central banks that will maintain high real interest rates and be sensitive to excessive currency weakness. Moreover, we should note that the oil-price assumptions in their 2013 budgets imply a degree of cushioning.

    Our bottom-line is that we believe global central bank policy represents a reflationary tailwind for all categories of EM debt. Set against this is deflation, which we believe is a headwind for some commodity producers, but a tailwind for commodity importers.

    Read full April Commentary >> 

  • Video Viewpoint

    Global Research: Economic Policy in India

    Eric Fine
    Portfolio Manager,
    Van Eck Emerging Markets Bond Investment Team

    "My main takeaways were that there is some very positive reform momentum and that the India investment story is probably going to benefit equity investors more than bond investors."

    View now »

    Investing in a Post-Chavez Venezuela

    Eric Fine
    Portfolio Manager,
    Van Eck Emerging Markets Bond Investment Team

    "For the near-term, we are not bullish on Venezuela's debt. The market may have overreacted positively to Chavez’s death and transition risks remain. It's more short-term issues that are keeping us away."

    View now »

    Counterpoint: Top EM Plays for 2013

    Eric Fine & Fran Rodilosso
    Portfolio Managers

    "The top four emerging markets I like right now are the local markets of Nigeria, Mexico, Russia and Indonesia."

    View now »

    Counterpoint: EM Currency Opportunities in 2013

    Eric Fine & Fran Rodilosso
    Portfolio Managers

    "We really like local currency in EM debt right now...It's where the rubber meets the road."

    View now »

    Counterpoint: EM Fixed-Income Bubble?

    Eric Fine & Fran Rodilosso
    Portfolio Managers

    "I think using the word "bubble" right now... is not thinking about the situation in the right way."

    View now »

    Counterpoint: EM Bonds as an Asset Class

    Eric Fine & Fran Rodilosso
    Portfolio Managers

    "...emerging markets fits pretty interestingly right now in terms of its fundamentals."

    View now »

    Emerging Markets Bond: Hard versus Local Currency 1Q'12

    Eric Fine
    Portfolio Manager
    Van Eck Emerging Markets Bond Investment Team

    "The most basic difference is that in local currency the risk of actual default is not the primary concern."

    View now »

    Emerging Markets Bond: Key Themes for 2013

    Eric Fine
    Portfolio Manager
    Van Eck Emerging Markets Bond Investment Team

    "The push away from developed economy currencies is a big macro theme for 2013."

    View now »

  • Research Series

    Research: U.S. Unconventional Natural Gas Resources, Winter 2013
    Global Expeditions: Key Takeaways from Trip to Brazil, Argentina and Venezuela, Fall 2012

  • Emerging Opportunities

    Seedling

    Improvements in economic policies, strong balance sheets and improved creditworthiness of local governments continue to foster a strong case for investment in the emerging markets bonds.

     

      Emerging Market Bonds Defined 

     

    “Emerging Markets Hard Currency Bonds” are bonds denominated in foreign currencies that are generally widely accepted around the world (such as the US Dollar, Euro or Yen).

     

    “Emerging Markets Local Currency Bonds” are bonds denominated in the local currency of the issuer.  

     

    “Emerging Markets Sovereign Bonds” are bonds issued by national governments of emerging countries in order to finance a country's growth.  

     

    “Emerging Markets Quasi Sovereign Bonds” are bonds issued by corporations domiciled in emerging countries that are either 100% government owned or whose debts are 100% government guaranteed.  

     

    “Emerging Markets Corporate Bonds” are bonds issued by non-government owned corporations that are domiciled in emerging countries.

     

    Long term, an allocation to emerging markets bonds may provide diversification benefits as emerging markets fixed income tends to be less correlated to developed market fixed income.

  • Making the Investment Case

     

  • Manager Commentaries

    Unconstrained Emerging Markets Bond Fund: Commentary April 2013
    Unconstrained Emerging Markets Bond Fund: Commentary March 2013
    Unconstrained Emerging Markets Bond Fund: Commentary February 2013

  • Education & Research

    Global Expeditions: Key Takeaways from Trip to Brazil, Argentina and Venezuela, Fall 2012

  • Outside Opinions

 © 2013 Van Eck Securities Corporation. All rights reserved.

  • 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 distribution. 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 and summary prospectus for more information.

    1Expenses are calculated for the 12-month period ending 05/01/14: Class A: Gross 1.67% and Net 1.25%; Class C: Gross 2.81% and Net 1.95%; Class I: Gross 1.03% and Net 0.95%; Class Y: Gross 1.74% and Net 1.00%. Expenses are capped contractually until 05/01/14 at 1.25% for Class A, 1.95% for Class C, 0.95% for Class I and 1.00% for Class Y. Caps exclude certain expenses, such as interest.

    2The J.P. Morgan Government Bond Index-Emerging Markets Global Diversified (GBI-EM) tracks local currency bonds issued by Emerging Markets governments. The index spans over 15 countries. The J.P. Morgan Emerging Markets Bond Index Global Diversified (EMBI) 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 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 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. 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. 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
    800.826.2333

    © 2012 Van Eck Securities Corporation. All rights reserved.