CBDEF BlueNRGY Group Ltd (CE)

CM Commodity Index Fund

Investment Team Members:

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. Results reflect past performance and do not guarantee future results.

EMERGING MARKETS FUND

TOP TEN EQUITY HOLDINGS*
December 31, 2013 (unaudited)

Samsung Electronics Co. Ltd.
(South Korea, 4.5%)

Samsung manufactures a wide range of consumer electronics, information technology and mobile communication products. Its semiconductor business manufactures a wide range of memory chips and system large scale integrated circuits.

Ezion Holdings Ltd.
(Singapore, 2.4%)

Ezion Holdings offers offshore marine logistics and support services, including liftboats and jack-up rigs.

Magnit OJSC
(Russia, 2.3%)

Magnit is a principally a food retailer and operates a chain of hypermarkets, conveniences stores and other formats.

Mediatek, Inc.
(Taiwan, 1.9%)

MediaTek is a fabless semiconductor company for wireless communications and digital multimedia solutions. The company provides SOC system solutions for wireless communications, high-definition TV, optical storage, DVD, and Blu-ray products.

Glenmark Pharmaceuticals Ltd.
(India, 1.8%)

Glenmark Pharmaceuticals is a company involved in the discovery of new pharmaceutical products for a wide range of therapeutic segments, as well as the manufacture of generic products with the equivalence to branded formulations.

Tencent Holdings Ltd.
(Hong Kong, 1.8%)

Tencent Holdings provides Internet, mobile, and telecommunication value-added services in China. The company has an instant messaging community in China and also provides online advertising services.

Beijing Capital International Airport Co. Ltd.
(Hong Kong, 1.6%)

Beijing Capital International Airport operates both aeronautical and non-aeronautical business in the Beijing airport. The company provides aircraft movement and passenger service facilities, safety and security services, fire-fighting services, and ground handling services. In addition, Beijing Capital operates and leases duty free and other retail shops in Beijing Capital Airport properties.

Estacio Participacoes S.A.
(Brazil, 1.6%)

Estacio Participacoes provides post-secondary education services. The company’s network is comprised of university centers, colleges, and distance learning units offering various traditional and technological undergraduate and post-graduate programs.

Glencore Xstrata Plc
(Switzerland, 1.5%)

Glencore Xstrata is a diversified natural resources company. The company operates in three groups: Metals and Minerals, Energy Products, and Agricultural Products. Glencore Xstrata offers its products and services around the world.

Great Wall Motor Company Limited
(Hong Kong, 1.5%)

Great Wall Motor Company, through its subsidiaries, manufactures and sells pick-up trucks and sport-utility vehicles (SUVs) and cars in China under branded names. The company also researches and develops, and manufactures principal automotive parts and components for use in the assembly of pick-up trucks and SUVs.

*Percentage of net assets. Portfolio is subject to change.

Company descriptions courtesy of Bloomberg.com

Hypothetical Growth of $10,000 (Ten Years: Class A)

Hypothetical Growth of $10,000 (Ten Years: Class C)

Inception date for the Emerging Markets Fund was 12/20/93 (Class A), 10/3/03 (Class C), 12/31/07 (Class I) and 4/30/10 (Class Y).

The performance quoted represents past performance. Past performance does not guarantee future results; current performance may be lower or higher than the performance data quoted. Investment return and value of shares of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance information reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Index returns assume that dividends of the Index constituents in the Index have been reinvested. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the redemption of Fund shares. Performance information current to the most recent month end is available by calling 1.800.826.2333 or by visiting vaneck.com.

Hypothetical Growth of $10,000 (Since Inception: Class I)

Hypothetical Growth of $10,000 (Since Inception: Class Y)

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends on securities sold short, taxes and extraordinary expenses) from exceeding 1.95% for Class A, 2.50% for Class C, 1.25% for Class I, and 1.70% for Class Y of the Fund’s average daily net assets per year until May 1, 2014. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

Although the Fund has been in existence since December 20, 1993, prior to December 18, 2002, the Fund operated with a substantially different strategy. Prior to December 18, 2002, the Fund invested primarily in common stocks and other equity securities of large cap global growth companies and could not invest more than 10% of its assets in emerging markets securities.

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 MSCI Emerging Markets (MSCI EM) Index, calculated with dividends reinvested, covers 2,700 securities in 21 markets that are currently classified as emerging market countries.

EXPLANATION OF EXPENSES

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including program fees on purchase payments; and (2) ongoing costs, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2013 to December 31, 2013.

Actual Expenses

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as fees on purchase payments. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

GLOBAL HARD ASSETS FUND

(unaudited)

Dear Shareholder:

The Global Hard Assets Fund (the “Fund”) gained 10.74% (Class A shares, excluding sales charge) for the 12 months ended December 31, 2013. To compare, the Standard and Poor’s (S&P ^® ) North American Natural Resources Sector Index ¹ rose 16.49% for the same period. Two key aspects of the Fund that detracted from performance relative to its primary benchmark were an overweight position in gold as well as in diversified metals and mining.

The Fund remained underweight relative to the benchmark in the energy sector overall at the end of the annual period, but maintained one of its highest historical energy allocations. Within energy, the Fund was overweight the oil and gas equipment and services, oil and gas drilling, and oil and gas exploration and production sub-sectors. The Fund was also overweight the diversified metals and mining and agricultural products sub-sectors.

The Fund was underweight integrated oil and gas companies throughout the annual period. While the Fund’s average weighting was slightly underweight oil and gas refining and marketing for the annual period, the Fund was overweight as of December 31, 2013. It should be noted that the Fund continues to employ a diversified natural resource strategy, and as such, has been historically underweight energy relative to the S&P ^® North American Natural Resources Sector Index, the Fund’s benchmark index. For example, the benchmark was approximately 84% energy as of December 31, whereas the Fund was approximately 77% energy—only slightly below the 12-month period’s high. As a point of reference, the S&P ^® Global Natural Resources Index ² , which was approximately 37% energy as of December 31, gained only 0.96% for the 12-month period. This divergence in 2013 performances among indexes highlights the effect that energy allocation had on performance during 2013.

Overview

The most significant factor influencing the markets in which the Fund invested over the past 12 months was a deceleration in growth in the emerging markets that led to an underperformance of metals and mining shares and commodities relative to energy shares and commodities.

Precious metals including gold, with the exception of palladium and base metals, suffered declines during the year. Copper and nickel, for example, experienced drops in price of 7.2% and 18.5%, respectively. Corn and grains also declined over the 12-month period. On the other hand, West Texas Intermediate (WTI) crude prices increased 7.2% to end the year at $98.42 per barrel and North American natural gas was up significantly, albeit from a very low base.

Fund Review

The three strongest positive-contributing sub-sectors to the Fund’s performance relative to the primary benchmark were oil and gas exploration and production, precious metals and minerals, and agricultural products. Within the oil and gas sub-sector mentioned above, an overweight allocation and, even more, stock selection both contributed to performance. The precious metals and minerals sub-sector consists mostly of silver mining stocks which had significant negative performance over the annual period, and to which the Fund had no exposure over that time frame which led to positive relative performance contribution. Conversely, the Fund had exposure to the agricultural products sub-sector, via its Archer-Daniels-Midland position (0.7% of Fund’s net assets ^† ), which performed positively, and to which the benchmark index had no exposure during the 12-month period.

The three weakest-contributing sub-sectors to the Fund’s performance relative to the primary benchmark were gold, diversified metals and mining, and steel.

The Fund’s strongest contributors included mainly energy-related companies. Shares of the two strongest contributors, Pioneer Natural Resources (3.5% of Fund’s net assets ^† ) and Cimarex Energy (3.7% of Fund’s net assets ^† ), both oil and gas exploration and production companies, gained on strong drilling results and resource additions in the Permian Basin of West Texas. Shares of oilfield services giant Halliburton (3.8% of Fund’s net assets ^† ) rose on strong revenue growth from North American unconventional drilling activities and continued expansion in international exploration and development operations.

The Fund’s weakest contributors were gold companies. The shares of the three weakest of these, Newmont Mining, New Gold, and Eldorado Gold (1.1%, 0.9% and 0.9% of Fund’s net assets, respectively ^† ), all dropped as weakness was seen in the gold mining sector broadly, driven by falling gold prices.

Significant purchases by the Fund were made in the oil and gas refining and marketing sub-sector, which saw the addition of shares in Phillips 66, Marathon Petroleum and Delek (2.6%, 2.4% and 1.1% of Fund’s net assets, respectively ^† ). The Fund’s largest sales during the period were diversified metals and mining companies Rio Tinto, BHP Billiton and Freeport-

McMoRan Copper & Gold (all eliminated by the Fund at period end). The Fund’s overall exposure to diversified metals and mining was reduced because of slowing emerging market growth and weakness in base metal and bulk commodity prices.

During the 12-month period, the Fund’s positions in both the diversified metals and mining and gold sub-sectors declined. While the Fund’s allocation to the energy sector trended higher, within the sector itself, the oil and gas refining and marketing sub-sector saw the most significant increase in allocation, with both the oil and gas exploration and production and oil and gas equipment and services sub-sectors also seeing increases.

Outlook

Globally, we are currently seeing positive signs of possible inflections in GDP growth, particularly in developed markets. And while, in the emerging markets, we are seeing growth slowing, that growth is still meaningful. The combination of these two leads us to believe that increasing demand for commodities exists. The further combination of this demand with the never-ending treadmill of trying to provide cost effective, and cost competitive, supply, leads us to conclude that the outlook for commodities has improved. In addition to this fundamental supply and demand scenario, valuations, too, remain compelling across the board. We do not believe there is one global hard asset sector that can, currently, be considered really expensive.

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, derivative, 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, and leverage risk. An investment in the Fund should be considered part of an overall investment program, rather than a complete investment program.

We appreciate your continued investment in the Global Hard Assets Fund, and we look forward to helping you meet your investment goals in the future.

Investment Team Members:

 

Charles T. Cameron Co-Portfolio Manager		Shawn Reynolds Co-Portfolio Manager

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. Results reflect past performance and do not guarantee future results.

GLOBAL HARD ASSETS FUND

TOP TEN EQUITY HOLDINGS*

December 31, 2013 (unaudited)

Glencore Xstrata Plc
(Switzerland, 5.1%)

Glencore Xstrata, a diversified mining group, explores for and mines copper, coking coal, thermal coal, ferrochrome, vanadium, zinc, gold, lead, and silver. The group conducts operations in Australia, South Africa and Argentina.

Schlumberger Ltd.
(U.S., 3.9%)

Schlumberger is an oil services company. The company, through its subsidiaries, provides a wide range of services, including technology, project management, and information solutions to the international petroleum industry as well as advanced acquisition and data processing surveys.

Halliburton Co.
(U.S., 3.8%)

Halliburton provides energy services and engineering and construction services, as well as manufactures products for the energy industry. The company offers services and products and integrated solutions to customers in the exploration, development, and production of oil and natural gas.

Consol Energy, Inc.
(U.S., 3.8%)

Consol Energy is a diversified fuel producer in the Eastern U.S. The company owns and operates mining complexes in several states that contain coal reserves. Consol also explores, develops, and produces natural gas, including methane and shale beds.

Cimarex Energy Co.
(U.S., 3.7%)

Cimarex Energy explores for and produces crude oil and natural gas in the United States. The company conducts activities primarily in New Mexico, Texas, and Oklahoma.

Concho Resources, Inc.
(U.S., 3.6%)

Concho Resources acquires, develops and explores for oil and natural gas properties in the Permian Basin area of Southeast New Mexico and West Texas.

Pioneer Natural Resources Co.
(U.S., 3.5%)

Pioneer Natural Resources is an independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations primarily in the United States.

Marathon Oil Corp.
(U.S., 3.3%)

Marathon Oil is an independent international energy company engaged in exploration and production, oil sands mining, and integrated gas. The company’s operations are focused in North America, Africa, and Europe.

First Quantum Minerals Ltd.
(Canada, 3.2%)

First Quantum Minerals explores for, mines, and produces copper cathode, copper in concentrate, and gold. The company also produces sulfuric acid.

Anadarko Petroleum Corp.
(U.S., 3.0%)

Anadarko Petroleum is an oil and gas exploration and production company, with major areas of operation located onshore in the United States, the Gulf of Mexico, Algeria, East and West Africa, and has production in China. The company markets natural gas, oil, and natural gas liquids (NGLs), and owns and operates gas gathering and processing systems.

^* Percentage of net assets. Portfolio is subject to change.

Company descriptions courtesy of Bloomberg.com.

PERFORMANCE COMPARISON

December 31, 2013 (unaudited)

 

Average Annual Total Return 12/31/13		Class A-GHAAX After Maximum Sales Charge 1					Class A-GHAAX Before Sales Charge					SPGINRTR					S&P 500
One Year			4.37	%				10.74	%				16.49	%				32.39	%
Five Year			11.79	%				13.13	%				13.45	%				17.94	%
Ten Year			11.95	%				12.62	%				11.18	%				7.41	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Ten Years: Class A)

 

 

 

Average Annual Total Return 12/31/13		Class C-GHACX After Maximum Sales Charge 2					Class C-GHACX Before Sales Charge					SPGINRTR					S&P 500
One Year				8.85	%				9.85	%				16.49	%			32.39	%
Five Year				12.24	%				12.24	%				13.45	%			17.94	%
Ten Year				11.80	%				11.80	%				11.18	%			7.41	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Ten Years: Class C)

 

 

 

Inception date for the Global Hard Assets Fund was 11/2/94 (Class A and Class C), 5/1/06 (Class I) and 4/30/10 (Class Y).

 

The performance quoted represents past performance. Past performance does not guarantee future results; current performance may be lower or higher than the performance data quoted. Investment return and value of shares of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance information reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Index returns assume that dividends of the Index constituents in the Index have been reinvested. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the redemption of Fund shares. Performance information current to the most recent month end is available by calling 1.800.826.2333 or by visiting www.vaneck.com.

17

GLOBAL HARD ASSETS FUND

PERFORMANCE COMPARISON

(unaudited) (continued)

 

Average Annual Total Return 12/31/13		Class I-GHAIX After Maximum Sales Charge 3					Class I-GHAIX Before Sales Charge					SPGINRTR					S&P 500
One Year				n/a					11.17	%				16.49	%			32.39	%
Five Year				n/a					13.59	%				13.45	%			17.94	%
Life (since 5/1/06)				n/a					5.52	%				5.05	%			6.85	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class I)

 

 

 

Average Annual Total Return 12/31/13		Class Y-GHAYX After Maximum Sales Charge 4					Class Y-GHAYX Before Sales Charge					SPGINRTR					S&P 500
One Year				n/a					11.01	%				16.49	%			32.39	%
Life (since 4/30/10)				n/a					3.84	%				7.18	%			15.27	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class Y)

 

 

 

1	A Shares: maximum sales charge is 5.75% Gross Expense Ratio 1.45% / Net Expense Ratio 1.38%		3	I Shares: no sales or redemption charges Gross Expense Ratio 1.03% / Net Expense Ratio 1.00%
2	C Shares: 1.00% redemption charge, first year Gross Expense Ratio 2.23% / Net Expense Ratio 2.20%		4	Y Shares: no sales or redemption charges Gross Expense Ratio 1.19% / Net Expense Ratio 1.13%

 

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends on securities sold short, taxes and extraordinary expenses) from exceeding 1.38% for Class A, 2.20% for Class C, 1.00% for Class I, and 1.13% for Class Y of the Fund’s average daily net assets per year until May 1, 2014. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

 

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 S&P ^® North American Natural Resources Sector (SPGINRTR) Index 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.

18

 

EXPLANATION OF EXPENSES

(unaudited)

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including program fees on purchase payments; and (2) ongoing costs, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2013 to December 31, 2013.

 

Actual Expenses

 

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

 

Hypothetical Example for Comparison Purposes

 

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as fees on purchase payments. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

Global Hard Assets Fund

 

				Beginning Account Value July 1, 2013						Ending Account Value December 31, 2013						Annualized Expense Ratio During Period						Expenses Paid During the Period* July 1, 2013 - December 31, 2013
Class A		Actual			$	1,000.00					$	1,163.10						1.38	%				$	7.52
		Hypothetical**			$	1,000.00					$	1,018.25						1.38	%				$	7.02
Class C		Actual			$	1,000.00					$	1,158.20						2.20	%				$	11.97
		Hypothetical**			$	1,000.00					$	1,014.12						2.20	%				$	11.17
Class I		Actual			$	1,000.00					$	1,165.20						1.00	%				$	5.46
		Hypothetical**			$	1,000.00					$	1,020.16						1.00	%				$	5.09
Class Y		Actual			$	1,000.00					$	1,164.40						1.13	%				$	6.16
		Hypothetical**			$	1,000.00					$	1,019.51						1.13	%				$	5.75

 

*	Expenses are equal to the Fund’s annualized expense ratio (for the six months ended December 31, 2013) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).
**	Assumes annual return of 5% before expenses

19

INTERNATIONAL INVESTORS GOLD FUND

(unaudited)

 

Dear Shareholder:

 

The International Investors Gold Fund (the “Fund”) declined 48.91% (Class A shares, excluding sales charge) for the year ended December 31, 2013. To compare, the NYSE Arca Gold Miners ¹ (GDMNTR) Index fell 53.65% for the same period. The Fund’s outperformance relative to the benchmark was due to effective stock selection and the Fund’s exposure to gold bullion and cash throughout the year.

 

Fund Review

 

The Fund maintained an emphasis on companies that have strong balance sheets and favorable cost structures, as well as royalty and streaming companies, which have no operating costs. The Fund carried a generous allocation to gold bullion and/or cash throughout most of the year, both of which outperformed gold stocks. Early in the year we anticipated gold price weakness, and by the end of April the Fund’s cash and gold bullion position represented 8.1% and 4.8% of assets, respectively. During May, and again, during August and October, the Fund increased exposure to gold stocks as we prepared for an eventual return to a rising gold price. As of the end of December 2013, the Fund’s cash position represented 1.1% of assets, and the gold bullion position had been reduced to 0.0%.

 

Most of the stocks in the portfolio posted losses during the period. Tahoe Resources (-9.11%) and Franco-Nevada (-27.43%) outperformed. The outperformance by Tahoe Resources (4.4% of Fund’s net assets ^† ) was driven by the successful start of production at its Escobal silver mine in Guatemala during the year, without major delays or capex ² increases. Franco-Nevada (4.8% of Fund’s net assets ^† ) benefits from the protection against operating and capital cost increases that its royalty business model provides.

 

Newcrest Mining (-69.60%; 2.0% of Fund’s net assets ^† ) underperformed, as the market continued to price in uncertainty around the company’s operating outlook and announced board and CEO changes. We believe recent changes should allow the company to deliver improved performance. Fresnillo (-57.07%; 2.3% of Fund’s net assets ^† ), the largest producer of primary silver in the world, also underperformed, likely due to the company reducing its 2013 gold production guidance, but also due to silver underperforming gold during the year. However, the company is on track to meet its silver production guidance, and, in our opinion, remains one of the highest quality companies in the sector.

 

At the end of the period, the Fund was almost fully invested in equities, positioned to benefit from what we expect will be an outperformance of gold stocks relative to the metal, once the gold market reestablishes a positive trend.

 

Gold Sector Overview

 

	■	During 2013, gold traded out of the positive long-term trend that had been in place since the financial crisis, failing to respond to its usual drivers.
	■	The markets became focused on the idea that the global economy was normalizing. Gold collapsed on the belief the Federal Reserve Bank (the “Fed”) can successfully remove years of extraordinary stimulus and restore “normal” growth. There no longer seemed to be much worry over sovereign debt, fiscal deficits, or extreme monetary policies, and thus, no need for a safe haven like gold.
	■	Persistent redemptions in gold bullion exchange-traded products (gold ETPs) commenced in February. Also, by early April, a record in short positions had accumulated in the COMEX 3 futures market.
	■	Gold suffered an astonishing collapse of over $200 in just two days, closing at $1,348 per ounce on April 15.
	■	An impressive amount of physical demand allowed gold to cut its losses, touching $1,488 per ounce on May 3.
	■	In June, the Fed suggested that it would end its $85 billion per month asset purchase program by mid-2014, placing renewed pressure on gold, which traded as low as $1,180 per ounce following the Fed comments.
	■	A weaker dollar and strong physical demand from the Middle East and Asia, particularly China, helped push prices higher once again, and gold traded as high as $1,434 per ounce on August 28.
	■	After leveling off in August and September, net redemptions resumed in gold ETPs during the fourth quarter. With this renewed selling pressure, and finally the Fed announcement of a pare-back in bond purchases on December 18, gold continued to be range-bound between $1,200 per ounce and $1,400 per ounce.
	■	On December 31, 2013 gold closed at $1,205.65 per ounce, down $469.70 or 28.0% for the year.

20

 

 

With gold under intense pressure, it should be no surprise that gold stocks were even weaker during the period. During 2013, the GDMNTR fell 53.65%, and small-cap gold mining stocks fell 60.93%, as measured by the Market Vectors Junior Gold Miners Index ⁴ (MVGDXJTR). Despite the weakness in share prices, we were generally pleased by the sector’s 2013 operating results. Most companies are on track to meet their 2013 operating and cost guidance, and many implemented cost saving initiatives and other efforts designed to improve profitability and financial stability in the current price environment, with results that are, so far, encouraging.

 

Outlook

 

Despite current sentiment in the markets, we believe tail risk has not gone away. With half-dozen countries in civil turmoil in the Middle East, how long until a country with global economic significance gets dragged into conflict? Easy monetary policies may be creating new financial bubbles in equities or other assets. Meanwhile, it is probably prudent to start thinking about inflation, since it has fallen off most investors’ radars. In a press conference following the December FOMC (Federal Open Market Committee) announcement, Fed chairman Ben Bernanke commented on inflation: “We are going to do what’s necessary to get to target over the next couple of years”. This could result in Fed policies that again remain too easy for too long, putting the Fed’s 2% inflation target at risk. We believe the case for gold and gold shares as portfolio insurance against tail risk remains as strong as ever.

 

While we were anticipating gold weakness early in 2013, we never expected the correction to morph into an historic collapse of gold and gold shares. Our outlook for this year is based on two themes: 1) the bear market has been so severe and there have been so many gunning for lower gold prices and dumping gold stocks that 2014 should be a year of rebounding or mean reversion for the gold sector and 2) the economy seems to genuinely be getting back on track. As bank lending normalizes, consumers prosper and spend, and the labor market tightens, markets may experience the unintended consequences of the radical monetary policies of the past five years. While it may take a year or two for this to fully develop as GDP growth returns to historic norms, we would expect to see destabilizing levels of asset inflation, consumer price inflation, or other dislocations in the global economy create new risks that are supportive of gold and gold shares.

 

Having spent the past several years disappointing the market with poor results, gold companies know they are under pressure to deliver improved performance. New management teams have abandoned the volume and growth strategies of their predecessors, replacing them with strategies targeting quality and profitability. Growth is no longer a priority; instead the new focus is on controlling costs, meeting expectations, and generating attractive returns to shareholders. While the gold price is in the dumps, companies are proactively addressing the issues that face the industry. They are taking steps to reduce costs by cutting discretionary spending such as exploration, administrative, and new project capital. Long-term mine plans are being made to access higher quality/higher return ounces. But more importantly, many of the initiatives being implemented by the gold companies are structural changes in the way they operate, which are expected to result in long-term, sustainable cost savings. In addition, managing expectations, meeting guidance, and exercising good capital discipline have become top priorities for gold companies. We expect this new focus by the gold companies on optimizing profitability and returns will lead to improved performance, helping them regain their status in the markets as an effective investment for leveraged exposure to gold. We believe this could translate to outperformance of gold equities relative to gold in a gold bull market.

 

The Fund is subject to the risks associated with concentrating its assets in the gold industry, which can be significantly affected by international economic, monetary, and political developments. The Fund’s overall portfolio may decline in value due to developments specific to the gold industry. 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, CMOs, and small- or mid-cap companies. The Fund is also subject to inflation risk, short sales risk, market risk, non-diversification risk, and leverage risk. Please see the prospectus for information on these and other risk considerations.

21

INTERNATIONAL INVESTORS GOLD FUND

(unaudited)

 

We appreciate your continued investment in the International Investors Gold Fund, and we look forward to helping you meet your investment goals in the future.

 

Investment Team Members:

 

Joseph M. Foster		Charl P. de Malan		Imaru Casanova
Portfolio Manager		Senior Analyst		Senior Analyst
January 10, 2014

 

†	All Fund assets referenced are Total Net Assets as of December 31, 2013.
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. Results reflect past performance and do not guarantee future results.
1	The NYSE Arca Gold Miners Index (GDMNTR) is a market capitalization-weighted index comprised of publicly traded companies involved primarily in the mining for gold.
2	Capital expenditures (capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year.
3	COMEX (Commodity Exchange, Inc.) is a division of the New York Mercantile Exchange (NYMEX), a commodity futures exchange based in Chicago, IL.
4	Market Vectors ® Junior Gold Miners Index (MVGDXJTR) is a rules-based, modified market capitalization-weighted, flat-adjusted index comprised of a focused group of small- and mid-cap companies in the gold or silver mining industry.

22

 

TOP TEN EQUITY HOLDINGS*

December 31, 2013 (unaudited)

 

Randgold Resources Ltd.
(United Kingdom, 8.2%)

Randgold explores, develops and operates mines and mineral interests in sub-Saharan Africa. The group operates producing mines and projects in Mali, Cote d’Ivoire, Democratic Republic of Congo, and Senegal.

 

New Gold, Inc.
(Canada, 7.8%)

New Gold acquires, explores, and develops gold properties, with operating assets currently in the United States, Canada, Mexico and Australia. In addition, the company has development and exploration projects in Canada and Chile.

 

Eldorado Gold Corporation
(Canada, 7.2%)

Eldorado is a growing mid-tier gold producer with mines and projects in Turkey, China, Greece, Romania and Brazil. The company is positioned to become a major gold company, with production expected to grow to about 1.5 million ounces of gold annually within the next five years.

 

Goldcorp, Inc.
(Canada, 6.9%)

Goldcorp is a major gold producer in the Americas, with operations and projects in Canada, United States, Mexico, Central and South America. Goldcorp owns the Red Lake Mine in Ontario, Canada, considered the richest grade gold mine in the world.

 

Osisko Mining Corporation
(Canada, 6.8%)

Osisko Mining is a mid-tier gold producer. It operates the Canadian Malartic gold mine in Quebec, Canada, and most recently became the owner of the Upper Beaver project in Ontario, Canada through the acquisition of Queenston Mining.

 

Silver Wheaton Corp.
(Canada, 5.4%)

Silver Wheaton is a silver streaming company. It has long term agreements to purchase all or a portion of the by-product silver produced from more than fifteen mines around the world, including mines in the United States, Canada, Mexico, Peru, Argentina, Chile, Sweden, Greece, and Portugal.

 

Yamana Gold Inc.
(Canada, 4.8%)

Yamana Gold is an intermediate gold producer with a focus in the Americas. The company has producing, development stage, and exploration stage properties throughout Brazil, Argentina, Chile, and Mexico.

 

Franco-Nevada Corp.
(Canada, 4.8%)

Franco-Nevada is a resource royalty and investment company. The company owns a diversified portfolio of precious and base metal royalties, oil and natural gas royalties, and other interests, including assets in production, under development or in the exploration phase mostly located in geopolitically secure countries.

 

Royal Gold, Inc.
(U.S., 4.5%)

Royal Gold acquires and manages precious metals royalties. The company seeks to acquire existing royalties and/or finance projects that are in production or near production in exchange for royalty interests. Royal Gold’s gold-focused portfolio contains royalties ranging from those in production and development to those in the evaluation and exploration stages.

 

Tahoe Resources Inc.
(U.S., 4.4%)

Tahoe Resources is on its way to becoming one of the world’s largest primary silver producers, having declared commercial production at its Escobal silver mine in Guatemala in January 2014.

 

 

*Percentage of net assets.

 

Portfolio is subject to change.

 

Company descriptions courtesy of bloomberg.com

23

INTERNATIONAL INVESTORS GOLD FUND

PERFORMANCE COMPARISON

December 31, 2013 (unaudited)

 

Average Annual Total Return 12/31/13		Class A-INIVX After Maximum Sales Charge 1					Class A-INIVX Before Sales Charge					GDMNTR					S&P 500
One Year			(51.86	)%				(48.91	)%				(53.65	)%				32.39	%
Five Year			(3.32	)%				(2.17	)%				(7.79	)%				17.94	%
Ten Year			3.33	%				3.95	%				n/a					7.41	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Ten Years: Class A)

 

 

 

Average Annual Total Return 12/31/13		Class C-IIGCX After Maximum Sales Charge 2					Class C-IIGCX Before Sales Charge					GDMNTR					S&P 500
One Year			(49.80	)%				(49.29	)%				(53.65	)%				32.39	%
Five Year			(2.92	)%				(2.92	)%				(7.79	)%				17.94	%
Ten Year			3.22	%				3.22	%				n/a					7.41	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Ten Years: Class C)

 

 

Inception date for the International Investors Gold Fund was 2/10/56 (Class A), 10/3/03 (Class C), 10/2/06 (Class I) and 4/30/10 (Class Y).

 

The performance quoted represents past performance. Past performance does not guarantee future results; current performance may be lower or higher than the performance data quoted. Investment return and value of shares of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance information reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Index returns assume that dividends of the Index constituents in the Index have been reinvested. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the redemption of Fund shares. Performance information current to the most recent month end is available by calling 1.800.826.2333 or by visiting www.vaneck.com.

24

 

 

Average Annual Total Return 12/31/13		Class I-INIIX After Maximum Sales Charge 3					Class I-INIIX Before Sales Charge					GDMNTR					S&P 500
One Year			n/a					(48.67	)%				(53.65	)%				32.39	%
Five Year			n/a					(1.84	)%				(7.79	)%				17.94	%
Life (since 10/2/06)			n/a					1.52	%				(5.82	)%				6.91	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class I)

 

 

Average Annual Total Return 12/31/13		Class Y-INIYX After Maximum Sales Charge 4					Class Y-INIYX Before Sales Charge					GDMNTR					S&P 500
One Year			n/a					(48.76	)%				(53.65	)%				32.39	%
Life (since 4/30/10)			n/a					(17.96	)%				(20.03	)%				15.27	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class Y)

 

 

1	A Shares: maximum sales charge is 5.75% Gross Expense Ratio 1.46% / Net Expense Ratio 1.45%		3	I shares: no sales or redemption charges Gross Expense Ratio 1.08% / Net Expense Ratio 1.00%
2	C Shares: 1.00% redemption charge, first year Gross Expense Ratio 2.30% / Net Expense Ratio 2.20%		4	Y shares: no sales or redemption charges Gross Expense Ratio 1.34% / Net Expense Ratio 1.20%

 

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.

 

NYSE Arca Gold Miners (GDMNTR) Index is a modified market capitalization-weighted index comprised of publicly traded companies involved primarily in the mining for gold.

 

The S&P 500 ^® Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation sectors.

25

INTERNATIONAL INVESTORS GOLD FUND

EXPLANATION OF EXPENSES

(unaudited)

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including program fees on purchase payments; and (2) ongoing costs, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2013 to December 31, 2013.

 

Actual Expenses

 

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

 

Hypothetical Example for Comparison Purposes

 

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as fees on purchase payments. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

International Investors Gold Fund

 

				Beginning Account Value July 1, 2013						Ending Account Value December 31, 2013						Annualized Expense Ratio During Period						Expenses Paid During the Period* July 1, 2013 - December 31, 2013
Class A		Actual			$	1,000.00					$	935.60						1.45	%				$	7.07
		Hypothetical**			$	1,000.00					$	1,017.90						1.45	%				$	7.37
Class C		Actual			$	1,000.00					$	932.00						2.20	%				$	10.71
		Hypothetical**			$	1,000.00					$	1,014.12						2.20	%				$	11.17
Class I		Actual			$	1,000.00					$	937.20						1.00	%				$	4.88
		Hypothetical**			$	1,000.00					$	1,020.16						1.00	%				$	5.09
Class Y		Actual			$	1,000.00					$	937.10						1.20	%				$	5.86
		Hypothetical**			$	1,000.00					$	1,019.16						1.20	%				$	6.11

 

*	Expenses are equal to the Fund’s annualized expense ratio (for the six months ended December 31, 2013) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).
**	Assumes annual return of 5% before expenses

26

LONG/SHORT EQUITY FUND

(unaudited)

 

Dear Shareholder:

 

The Long/Short Equity Fund (the “Fund”), launched on December 12, 2013, rose 2.59% (Class A shares, excluding sales charge) from its launch date until December 31, 2013. The Fund benefited from strong performance in its holdings of equity ETFs with exposure to industrial companies, consumer discretionary stocks, and mid-cap equities generally. Our systematic investment process seeks consistent returns with lower volatility than most other registered investor companies that employ a long/short equity strategy.

 

The Fund uses statistical analysis to construct a portfolio of long and short positions in exchange-traded products (ETPs) that, in aggregate, aim to track the performance of a primary universe of U.S. focused long/short equity hedge funds. The analysis has four steps. First it computes an average return and standard deviation for the primary universe of funds that takes into account the diversification of those funds from each other. Then it uses a patented methodology (U.S. Patent # 7,707,092) to filter out of the primary universe funds whose returns and standard deviations differ significantly from the average return and standard deviation of that universe. Excluding those outliers from the primary universe yields a secondary universe that is a subset of the primary universe of funds. In the third step, it computes an average return for the secondary universe. We believe this process is important because the correct categorization of hedge funds and removal of outliers via thoughtful quantitative analysis can yield consistent total returns and lower volatility as compared to most other long/short equity funds.

 

Finally, to identify the portfolio of ETPs it needs to hold, it regresses a two-year time series of the average returns of the secondary universe against ETP returns for the same period. The regression analysis identifies the ETPs and their allocations in the portfolio for the next calendar month. The portfolio managers repeat this process monthly and rebalance the portfolio at the close of business on the final equity trading date each month. The chart below shows the allocations of the Fund on December 31.

 

Long/Short Fund Asset Allocation: ¹ December 31, 2013

 

 

Source: Van Eck Research

 

At the end of the reporting period, the portfolio had a significant allocation to cash and U.S. Treasury bills. This reflected the hedged approach of the hedge funds whose behavior determines the allocations of the Fund. Typically, long/short equity hedge funds hold many long and short positions simultaneously that produce a certain cash balance in the funds. Some hedge fund managers use this cash as margin for leverage while others simply hold it in cash and money market securities. Currently, the Fund is not designed to use any leverage, so its allocations always total exactly 100%, including allocations to cash and money market securities. In addition, it restricts its money market investments to U.S. Treasury securities maturing within a year. These investment guidelines produce efficient allocations of assets under management that reflect the average gross and net exposures of long/short equity hedge funds. Typically these allocations include long positions, short positions and cash, but circumstances may occur in the future that produce portfolios that have only long, short or cash positions.

 

Investments made during a month are allocated with the weights established at the end of the previous month, adjusted for changes caused by changing market prices between the previous month end and the investment date.

 

While the Fund’s investment strategy is based on the performance of hedge funds, it does not intend to be just a liquid alternative to such funds. The analysis that produces the Fund’s allocations acts specifically to reduce its volatility to less than that of the hedge funds it analyzes.

27

LONG/SHORT EQUITY FUND

(unaudited)

 

Historically hedge funds have exhibited lower volatility than long-only equity index funds as shown by a comparison of the HFRI Equity Hedge Index ² and SPY, the SPDR S&P 500 ETF. In the ten year period ended December 2013, the HFRI index had an annualized standard deviation of 7.9% in comparison to the 14.6% of the S&P 500 Index ETF. By targeting a level of volatility below that of the average long/short equity hedge fund, the Fund seeks to produce returns based on the performance of equity markets with volatility typical of hedge investments on those markets.

 

The Fund is subject to market risk, including possible loss of principal. Because the Fund is “fund-of-funds,” an investor will indirectly bear the principal risks of the exchange-traded products in which it invests, including but not limited to, risks associated with smaller companies, foreign securities, emerging markets, debt securities, commodities and derivatives. With respect to derivatives, the use of leverage may magnify losses. The Fund will bear its share of the fees and expenses of the exchange-traded products. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in an exchange-traded product. Because the Fund invests in exchange-traded products, it is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an exchange-traded product’s shares may be higher or lower than the value of its underlying assets, there may be a lack of liquidity in the shares of the exchange-traded product, or trading may be halted by the exchange on which they trade. Debt securities may be subject to credit risk and interest rate risk. Investments in debt securities typically decrease in value when interest rates rise. The Fund may actively engage in short selling, which entails special risks. If the Fund makes short sales in securities that increase in value, the fund will lose value. Because the Adviser relies heavily on proprietary quantitative models, the Fund is also subject to model and data risk.

 

We look forward to your participation in the Long/Short Equity Fund and helping you meet your investment needs in the future.

 

Investment Team Members:

 

Marc S. Freed		Benjamin M. McMillan
Portfolio Manager		Co-Portfolio Manager
January 15, 2014

 

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. Results reflect past performance and do not guarantee future results.

1	Based on the Fund’s benchmark (Market Vectors ® North America Long/Short Equity Hedge Fund Beta Index), U.S. Small-Cap Equities represented by iShares Russell 2000 ETF (IWM); Long-term U.S. Treasuries represented by iShares 20+ Year Treasury Bond ETF; Industrial Equities represented by Industrial Select Sector SPDR Fund (XLI); Consumer Discretionary Equities represented by Consumer Discretionary Select Sector SPDR Fund (XLY).
	Market Vectors ® North America Long/Short Equity Hedge Fund Beta Index seeks to capture the systematic returns (beta) of North American focused long/short equity hedge funds. The index employs a patented rating and ranking system that filters out funds with low beta as compared to their hedge fund peer group. The index is constructed using transparent, liquid ETFs to produce hedge fund-style returns.
2	The HRFI Equity Hedge Index, also known as long/short equity, combines core long holdings of equities with short sales of stock or stock index options. Equity hedge portfolios may be anywhere from net long to net short depending on market conditions.

28

 

PERFORMANCE COMPARISON

December 31, 2013 (unaudited)

 

Total Return 12/31/13		Class A-LSNAX After Maximum Sales Charge 1			Class A-LSNAX Before Sales Charge			MVLSNATR
Life (since 12/12/13)		(3.29	)%		2.59	%		2.65	%

 

The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class A)

 

 

 

Total Return 12/31/13		Class I-LSNIX After Maximum Sales Charge 2			Class I-LSNIX Before Sales Charge			MVLSNATR
Life (since 12/12/13)		n/a			2.59	%		2.65	%

 

The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class I)

 

 

 

Inception date for the Long/Short Equity Fund was 12/12/13.

 

The performance quoted represents past performance. Past performance does not guarantee future results; current performance may be lower or higher than the performance data quoted. Investment return and value of shares of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance information reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Index returns assume that dividends of the Index constituents in the Index have been reinvested. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the redemption of Fund shares. Performance information current to the most recent month end is available by calling 1.800.826.2333 or by visiting vaneck.com.

29

LONG/SHORT EQUITY FUND

PERFORMANCE COMPARISON

(unaudited) (continued)

 

Total Return 12/31/13		Class Y-LSNYX After Maximum Sales Charge 3			Class Y-LSNYX Before Sales Charge			MVLSNATR
Life (since 12/12/13)		n/a			2.59	%		2.65	%

 

The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class Y)

 

 

 

1	A Shares: maximum sales charge is 5.75% Gross Expense Ratio 59.49% / Net Expense Ratio 1.29%
2	I shares: no sales or redemption charges Gross Expense Ratio 53.09% / Net Expense Ratio 0.99%		3	Y shares: no sales or redemption charges Gross Expense Ratio 54.60% / Net Expense Ratio 1.04%

 

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends on securities sold short, taxes and extraordinary expenses) from exceeding 0.95% for Class A, 0.65% for Class I, and 0.70% for Class Y of the Fund’s average daily net assets per year until May 1, 2015. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

 

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.

 

Market Vectors Long/Short Equity North America Hedge Fund Beta TR Index (MVLSNATR Index) seeks to capture the systematic returns (beta) of hedge funds with similar investment styles that invest in the same asset classes and geographic market. The index employs a patented rating and ranking system that filters out funds with low beta as compared to its hedge fund peer group, which seeks to enhance the index’s risk-adjusted returns. The index is constructed using transparent, liquid ETFs to seek to produce hedge fund-style returns. There can be no assurance that index returns will be correlated with risk factor characteristics on an underlying hedge fund or strategy level. In addition, there can be no assurance that the risk factor proxies will emulate desired return characteristics. There are market risks involved in investing in hedge funds and risks associated with investing in liquid, tradable securities (i.e., risk factor proxies) used in attempting to replicate hedge fund results. There is no guarantee of any particular result.

30

 

EXPLANATION OF EXPENSES

(unaudited)

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including program fees on purchase payments; and (2) ongoing costs, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2013 to December 31, 2013.

 

Actual Expenses

 

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

 

Hypothetical Example for Comparison Purposes

 

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as fees on purchase payments. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

Long/Short Equity Fund

 

				Beginning Account Value July 1, 2013						Ending Account Value December 31, 2013						Annualized Expense Ratio During Period						Expenses Paid During the Period* July 1, 2013 - December 31, 2013
Class A		Actual			$	1,000.00					$	1,025.90						1.29	%				$	6.59
		Hypothetical**			$	1,000.00					$	1,002.03						1.29	%				$	6.51
Class I		Actual			$	1,000.00					$	1,025.90						0.99	%				$	5.06
		Hypothetical**			$	1,000.00					$	1,002.20						0.99	%				$	5.00
Class Y		Actual			$	1,000.00					$	1,025.90						1.04	%				$	5.31
		Hypothetical**			$	1,000.00					$	1,002.17						1.04	%				$	5.25

 

*	Expenses are equal to the Fund’s annualized expense ratio (for the six months ended December 31, 2013) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).
**	Assumes annual return of 5% before expenses

31

MULTI-MANAGER ALTERNATIVES FUND

(unaudited)

 

Dear Shareholder:

 

The Multi-Manager Alternatives Fund (the “Fund”) advanced 5.46% (Class A shares, excluding sales charge) for the 12 months ended December 31, 2013. The Fund underperformed its benchmark, the HFRX Global Hedge Fund Index ¹ , which rose 6.72%, but outperformed the Morningstar Multialternative category of funds, which returned 4.16%.

 

For the year ended December 31, 2013, all of the Fund’s core strategies, together with its tactical allocation, provided positive returns. Relative to its benchmark index, the Fund outperformed in the global macro and long/short equity investment strategies. However, it experienced underperformance in both the event driven and yield focused strategies.

 

Overview

 

	■	The calendar year 2013 proved to be an exceptional year for the returns of domestic equities. The S&P 500 ® Index 2 returned 32.39%, which was the best year since 1997.
	■	A significant factor leading equity prices higher was the U.S. Federal Reserve’s Asset Purchase Program, used in conjunction with other monetary policies, designed to support asset prices and employment. The chart below illustrates the massive expansion of the Federal Reserve’s balance sheet through the purchase of Treasury bonds and Agency Mortgage-Backed Securities in relation to the S&P 500 Index.

 

 

 

Source: Bloomberg and U.S. Federal Reserve

 

■

The yield of the U.S. Government 10-year Treasury note reached a calendar-year low of 1.63% in May and finished the year at 3.03%. While yields continue to remain extraordinarily low on an absolute basis relative to historical averages, the magnitude of the change in interest rates over the year as a whole shed light on the duration risk of fixed income and other interest rate sensitive investments.

 

Fund Review

 

The Fund’s best performing core investment strategy, on an absolute basis, during the 12-month period was its long/short equity strategy ^‡ . The largest contributor to performance within the strategy, and for the Fund, was the sub-advisor Millrace Asset Group, Inc. (“Millrace”) (10.0% of Fund net assets ^† ). Millrace benefited from long positions in the technology services, health technology, and electronic technology sectors. The largest detractor from performance within the Fund’s allocation to long/short equity strategies was the TFS Market Neutral Fund (“TFS”). TFS, along with many fundamentally driven investment disciplines with low net market exposure, struggled to generate performance as the equity markets rallied. TFS implements a quantitative approach that focuses on balance sheet strength, corporate insider trade replication and market imbalances. On September 24, 2013, the Fund moved to liquidate its allocation to TFS, based on its preference for its other long/short equity strategies.

32

 

 

The largest contributor to performance within the global macro ^‡ allocation during the year was the AQR Managed Futures Fund (“AQR”) (10.9% of Fund net assets ^† ). AQR benefited for much of the 12-month period from short positions in the Japanese yen, and gold futures contracts, and long equity positions. The largest detractor from performance both within the global macro allocation, and at the Fund level, was its allocation to the Aquila Risk Parity Fund (“Aquila”). The Aquila strategy is broadly diversified across equities, currencies, commodities and fixed income. However, in May and June, with the rapid decline in the fixed income markets, historical asset class correlation characteristics were not maintained, and Aquila experienced a rapid loss of capital. The Investment Committee began removing the allocation to Aquila on March 22, 2013 and completed the sale on June 25, 2013. The removal of Aquila was based on the Fund’s internal risk management process and the desire to maintain minimal interest rate exposure at that point in the cycle.

 

The Fund’s two event-driven ^‡ sub-advisors, Tiburon Capital Management, LLC (“Tiburon”) (12.4% of Fund net assets ^† ), and Coe Capital Management, LLC (“Coe”) (9.4% of Fund net assets ^† ) were both solid performers during the year. Tiburon’s contribution to returns were well diversified across its investments, with a few positive standouts coming from long equity positions in media companies and various fixed income investments. Tiburon’s largest detractors were a long position in a precious metal company and broad market hedges. Coe’s largest contributors were long security selections within the electronic technology and consumer durables sectors. Coe’s largest detractors were sector-specific and broad market hedges.

 

The Fund’s largest contributor to performance within the fixed income ^‡ allocation was Horizon Asset Management, LLC (“Horizon”) (11.1% of Fund net assets ^† ). Horizon benefited from long stock selection within the media and real estate development industries, a long position in the Canadian dollar, and various fixed income securities. The largest detractor within the yield focused allocation was SW Asset Management, LLC (“SW”) (11.0% of Fund net assets ^† ). SW’s largest detractors were within long and short South American corporate credit instruments across various sectors.

 

The Fund’s tactical ^‡ allocation benefitted from hedged emerging market positions, short put contracts on the S&P 500 Index, and a short position in the Japanese yen. The largest detractors from performance were hedged gold equity positions.

 

Outlook

 

We believe that the Fund remains well diversified across alternative strategies and is positioned to benefit from the further normalization of interest rates across the yield curve. We have achieved this positioning by limiting exposure to traditional fixed income and investing in strategies that seek to exploit idiosyncratic market opportunities across asset classes.

 

As the Fund implements a fund-of-funds strategy, an investor in the Fund will bear the operating expenses of the “Underlying Funds” in which the Fund invests. The total expenses borne by an investor in the Fund will be higher than if the investor invested directly in the Underlying Funds, and the returns may therefore be lower. The Fund, the Sub-Advisers and the Underlying Funds may use aggressive investment strategies, including absolute return strategies, which are riskier than those used by typical mutual funds. If the Fund and Sub-Advisers are unsuccessful in applying these investment strategies, the Fund and you may lose more money than if you had invested in another fund that did not invest aggressively. The Fund is subject to risks associated with the Sub-Advisers making trading decisions independently, investing in other investment companies, using a particular style or set of styles, basing investment decisions on historical relationships and correlations, trading frequently, using leverage, making short sales, being non-diversified, and investing in securities with low correlation to the market. The Fund is also subject to risks associated with investments in foreign markets, emerging market securities, small cap companies, debt securities, derivatives, commodity-linked instruments, illiquid securities, asset-backed securities, and CMOs.

33

MULTI-MANAGER ALTERNATIVES FUND

(unaudited)

 

We appreciate your investment in the Multi-Manager Alternatives Fund, and we look forward to helping you meet your investment goals in the future.

 

Investment Committee:

 

Stephen H. Scott		Jan F. van Eck		Michael F. Mazier
Co-Portfolio Manager		Co-Portfolio Manager		Investment Committee Member

 

January 14, 2014

 

†	All Fund assets referenced are Total Net Assets as of December 31, 2013.

 

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. Results reflect past performance and do not guarantee future results.

 

1	HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of eight strategies: convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry.
2	S&P ® 500 Index consists of 500 widely held common stocks, covering industrials, utility, financial and transportation sectors.
‡	Strategy Definitions
	A long/short equity strategy seeks to invest in securities believed to be undervalued or offer high growth opportunities while also attempting to reduce overall market risk or take advantage of an anticipated decline in the price of an overvalued company or index by using short sales or options on common stocks or indexes to hedge risk. This strategy may also use derivatives, including options, financial futures and options on futures. Long and short positions may not be invested in equal dollars and, as such, may not seek to neutralize general market risks.
	Event-driven strategies seek to benefit from price movements caused by anticipated corporate events, such as mergers, acquisitions, spin-offs or other special situations.
	Global macro and emerging markets strategy seeks to profit from directional changes in currencies, stock markets, commodity prices and market volatility. This strategy may utilize positions held through individual securities, ETFs, derivative contracts, swaps or other financial instruments linked to major market, sector or country indices, fixed income securities, currencies and commodities. This strategy may invest in a limited number of securities, issuers, industries or countries which may result in higher volatility.
	Fixed income strategies buy and short different debt securities.
	Directional and tactical trading attempts to exploit broad market trends in equities, interest rates or commodity prices.

34

 

FUND ALLOCATION BY STRATEGY*

(unaudited)

 

 

 

 

SECTOR WEIGHTING NET EXPOSURE**

(unaudited)

 

 

 

As of December 31, 2013. Portfolio subject to change.

*	Percentage of net assets.
**	Net exposure was calculated by adding long and short positions.

35

MULTI-MANAGER ALTERNATIVES FUND

PERFORMANCE COMPARISON

(unaudited)

 

Average Annual Total Return 12/31/13		Class A-VMAAX After Maximum Sales Charge 1					Class A-VMAAX Before Sales Charge					HFRXGL					S&P 500
One Year			(0.57	)%				5.46	%				6.72	%				32.39	%
Life (since 6/5/09)			0.94	%				2.25	%				2.92	%				18.40	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class A)

 

 

 

Average Annual Total Return 12/31/13		Class C-VMSCX After Maximum Sales Charge 2					Class C-VMSCX Before Sales Charge					HFRXGL					S&P 500
One Year			3.71	%				4.71	%				6.72	%				32.39	%
Life (since 4/30/12)			1.74	%				1.74	%				4.12	%				20.87	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class C)

 

 

 

Inception date for the Multi-Manager Alternatives Fund was 6/5/09 (Class A and Class I), 4/30/10 (Class Y) and 4/30/12 (Class C).

 

The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted. Investment return and value of shares of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance information reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Index returns assume that dividends of the Index constituents in the Index have been reinvested. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the redemption of Fund shares. Performance information current to the most recent month end is available by calling 1.800.826.2333 or by visiting vaneck.com.

36

 

 

Average Annual Total Return 12/31/13		Class I-VMAIX After Maximum Sales Charge 3					Class I-VMAIX Before Sales Charge					HFRXGL					S&P 500
One Year			n/a					5.94	%				6.72	%				32.39	%
Life (since 6/5/09)			n/a					2.60	%				2.92	%				18.40	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class I)

 

 

 

Average Annual Total Return 12/31/13		Class Y-VMAYX After Maximum Sales Charge 4					Class Y-VMAYX Before Sales Charge					HFRXGL					S&P 500
One Year			n/a					5.95	%				6.72	%				32.39	%
Life (since 4/30/10)			n/a					2.47	%				0.91	%				15.27	%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class Y)

 

 

 

1	A Shares: maximum sales charge is 5.75% Gross Expense Ratio 3.07% / Net Expense Ratio 2.79%		3	I shares: no sales or redemption charges Gross Expense Ratio 2.97% / Net Expense Ratio 2.40%
2	C shares: 1.00% redemption charge, first year Gross Expense Ratio 15.67% / Net Expense Ratio 3.61%		4	Y shares: no sales or redemption charges Gross Expense Ratio 3.11% / Net Expense Ratio 2.35%

 

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends on securities sold short, taxes and extraordinary expenses) from exceeding 2.40% for Class A, 3.15% for Class C, 1.95% for Class I and 2.00% for Class Y of the Fund’s average daily net assets per year until May 1, 2014. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

 

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 HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe, and includes convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage strategies.

 

The S&P 500 ^® Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation sectors.

37

MULTI-MANAGER ALTERNATIVES FUND

EXPLANATION OF EXPENSES

(unaudited)

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including program fees on purchase payments; and (2) ongoing costs, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2013 to December 31, 2013.

 

Actual Expenses

 

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

 

Hypothetical Example for Comparison Purposes

 

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as fees on purchase payments. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

Multi-Manager Alternatives Fund

 

				Beginning Account Value July 1, 2013					Ending Account Value December 31, 2013					Annualized Expense Ratio During Period					Expenses During the Period* July 1, 2013 - December 31, 2013
Class A		Actual			$	1,000.00				$	1,075.90					2.90	%			$	15.17
		Hypothetical**			$	1,000.00				$	1,010.59					2.90	%			$	14.70
Class C		Actual			$	1,000.00				$	1,072.00					3.77	%			$	19.69
		Hypothetical**			$	1,000.00				$	1,006.20					3.77	%			$	19.06
Class I		Actual			$	1,000.00				$	1,077.00					2.51	%			$	13.14
		Hypothetical**			$	1,000.00				$	1,012.55					2.51	%			$	12.73
Class Y		Actual			$	1,000.00				$	1,078.30					2.38	%			$	12.47
		Hypothetical**			$	1,000.00				$	1,013.21					2.38	%			$	12.08

 

*	Expenses are equal to the Fund’s annualized expense ratio (for the six months ended December 31, 2013) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).
**	Assumes annual return of 5% before expenses

38

UNCONSTRAINED EMERGING MARKETS BOND FUND

(unaudited)

 

Dear Shareholder:

 

The Unconstrained Emerging Markets Bond Fund (the “Fund”) declined 4.70% (Class A shares, excluding sales charge) for the 12 months ended December 31, 2013. Its underperformance occurred primarily in the second and third quarters, as a result of a synchronized fall in emerging markets bonds and currencies broadly. Positive trends in emerging markets up to that time – steadily declining global interest rates and a weakening dollar – were reversed by the Federal Reserve’s (the “Fed”) hints at a tapering of bond purchases. The Fund outperformed its two benchmark indices, the J.P. Morgan Government Bond – Emerging Markets Global Diversified (GBI-EM) Index ¹ (representing local currency ² ) and the J.P. Morgan Emerging Markets Bond Global Diversified (EMBI) Index ³ (representing hard currency ⁴ ), which fell 8.98% and 5.25%, respectively, for the same period.

 

The Fund did perform competitively in the first and fourth quarters. In the first quarter, the Fund gained 2.89%, while the GBI-EM (representing local currency) lost 0.13% and the EMBI (representing hard currency) fell 2.26% for the same period. In the fourth quarter, the Fund gained 1.93%, while the GBI-EM lost 1.54% and the EMBI gained 1.53% for the same period. The Fund’s mandate is flexible in nature, and was among the first strategies to blend hard and local currencies.

 

Overview

 

Emerging markets debt funds attracted approximately $10 billion in new assets in 2013, down from a figure of around $80 billion a year for recent years. At the same time, starting in May 2013, the asset class suffered its largest weekly outflows since the Lehman crisis in 2008, as there was a rotation out of emerging markets debt – mainly on the part of retail investors – and equities, in favor of developed market equities. Concerns around an end to easy monetary policy in the U.S. were a major headwind to emerging markets debt – both hard and local currency. We would not be surprised at higher U.S. yields, and similar resulting pressure on emerging market debt, as the U.S. continues to move toward a higher interest rate environment. Moreover, a number of well-known emerging market countries could face downgrades, weak economic outcomes, and political turmoil, further straining flows to emerging markets as a whole.

 

However, we would regard whatever upcoming turmoil may occur as a setback, not a crisis. In fact, a number of countries have already responded to the turmoil by hiking interest rates significantly. It is telling that this is the primary logical response to their challenge, compared to earlier crises when deeper and tougher policy responses were necessitated (for example, defaults and banking system resets). We also envisage continued secular inflows into the asset class, particularly by strategic investors looking for higher yields and fundamentals that do not include the high debt levels that characterize developed markets. Other central banks are noteworthy contributors to this demand for emerging markets debt. We would also like to point out that a lot of the recent challenges to emerging markets debt performance emanated from the developed world, particularly the U.S. financial crisis of 2008/2009 and the European sovereign crisis of 2011-2013. Arguably, the macro imbalances in some key emerging markets – Brazil, South Africa, and Turkey – also affected the perception of the asset class by investors and moved asset prices.

 

Fund Review

 

At the portfolio level, underperformance during the annual period was driven by comparatively overweight positions in securities that had a high beta to asset class outflows, including Venezuela hard currency bonds, Philippines local currency bonds, and Indonesia local currency bonds. In this context, beta is the sensitivity of an asset’s return to the emerging markets fixed income market’s benchmark returns. The Fund’s biggest winners during the annual period were positions in South Africa, Sri Lanka, Costa Rica, Russia, Turkey, Hungary, Peru, South Korea, and Israel, where the Fund’s exposure was in local currency debt. Positions in Argentina and Mexico, where the Fund’s exposure was in hard currency debt, and in the European periphery debt (Portugal and Greece), also boosted Fund results.

 

As noted above, the Fund’s major detractor from performance was exposure to Venezuelan sovereign debt, where significant positioning by foreign investors, combined with the country’s high beta status, left it particularly vulnerable to outflows. The Fund’s positions in the Philippines, Indonesia, Uruguay, Chile, Poland, Brazil, Romania, Thailand, Nigeria, and Malaysia, where the Fund’s exposure was in local currency debt, and its positions in Zambia, Belarus, and Ukraine, where the Fund’s exposure was in hard currency debt, also detracted from performance.

 

Our current portfolio reflects our view that the exit from the quantitative easing programs in the advanced economies – and especially in the U.S. – will be gradual and cautious, leaving room for idiosyncrasy and policy diversification in the emerging markets. Emerging markets debt has higher real yields and higher credit spreads than developed markets debt, with, in our opinion, superior fundamentals. We aim to earn outsized carry while we position to capture longer-term upside that should, over time, be generated by country fundamentals.

39

UNCONSTRAINED EMERGING MARKETS BOND FUND

(unaudited)

 

The countries where we see the best opportunities can generally be characterized as having strong balance sheets, high real interest rates, and stabilized technicals. All of them have been in our portfolio to a medium or large degree over time. In particular, we like exposure to higher-yielding local debt (longer-tenor real yields in excess of 3%) in selected European countries (Hungary, Romania, and Portugal). These economies should benefit from growth recovery/stabilization in the Eurozone, while exhibiting low inflation pressures. We also see upside in local debt in Israel (against the backdrop of extremely low foreign ownership, the improving fiscal balance, and significant pre-financing of the 2014 issuance plan), and South Korea (with strong fiscal and current account balances, low government debt, and low inflation pressures).

 

We believe that Brazilian local debt still looks attractive, offering competitive yields (relative to inflation of around 6%), a currency that has been among the weakest in the emerging markets, what we consider to be continued bearish positioning in the currency, an overall negative investor bias on Brazil, and the overly aggressive monetary policy stance currently priced in by the markets. We remain constructive on Mexico, where a reform program and leverage to U.S. growth give it upside potential, albeit we are somewhat concerned about positioning there. In hard currency debt, we have a bias toward accumulating lowly correlated high-value bonds (both corporate and sovereign credits – including Argentina, Hungary, Mexico, Vietnam, Guatemala, Brazil, and Indonesia). As we transition to whatever new yield environment materializes, these bonds will likely act as defensive investments that can perform well during periods of risk aversion, especially if the U.S. dollar is rallying.

 

We should emphasize that “good fundamentals” aren’t simply a nice theoretical argument supporting the asset class. There are very practical implications of “good fundamentals” – both interest rates and currencies in the countries with the largest “twin deficits” (the fiscal and current account deficits combined) sold off the most during the recent risk-off episodes. Another way of describing high savings/strong balance sheet is that many of these governments have no acute need for money – they can afford to cancel auctions or to announce (limited) buybacks of their debt (as Brazil and Mexico have done lately). Good fundamentals, therefore, matter for practical reasons.

 

During the 12-month period, the Fund used derivatives, specifically non-deliverable and deliverable foreign exchange forwards, to hedge the currency component of fixed income holdings. In particular, the Fund directly hedged its Mexican peso risk and its Brazilian real risk using these forwards, for short periods of time. The Fund also hedged the euro risk encumbered in other currency positions. The Fund also used foreign exchange forwards to go long the Peruvian new sol and Russian ruble briefly (not as hedges). The Fund did not use any other type of derivatives during the period. Derivatives detracted from the Fund’s performance, accounting for nearly 23% of the Fund’s losses during the year. Despite the losses, derivatives serve as a useful tool to reduce the Fund’s foreign exchange risk.

 

Outlook

 

We see a combination of headwinds and tailwinds for emerging markets debt in the coming months, primarily due to the risk of higher U.S. interest rates and a stronger U.S. dollar, resulting from the Fed’s tapering of bond purchases.

 

Starting with the headwinds: we will simply say that higher U.S. rates pressured emerging markets debt last time around, and, thus, it is reasonable to expect a repetition, assuming interest rates rise. We also believe that front-end rates (the 2-year) are especially important to watch, as they are a closer reflection of actual interest rate policy, whereas the 10-year sector reflects many more factors. The U.S. curve is near record steepness from 2-years to 10-years, and our interpretation of this current situation is that it means greater upside for short-term rates than downside. It was the rise in short-term rates that triggered the general risk-off in May/June when the Fed initiated its taper talk.

 

In addition, a large number of countries that, to many, constitute “emerging markets” – Brazil, Turkey, India, South Africa, and Russia – may face problems, limiting flows into the asset class. This may eventually create opportunities as the asset class is incorrectly treated as a monolith, rather than as a collection of idiosyncratic markets. But that is a point to make after it has happened, not now. Brazil looks set for downgrades from rating agencies, and an upcoming Supreme Court decision on depositor claims against banks from an earlier deposit seizure could catalyze concerns. Turkey’s interest rates and reserves are too low, and the country’s Prime Minister seems to push conflicts to the brink rather than resolve them. In our opinion, India’s fiscal deficit is too large and intractable, despite the success of one-off measures to reduce the current account deficit. Russia’s and South Africa’s interest rates appear too low to us, and, in our opinion, South Africa’s reserves are too low. Our response remains to not own these assets when they seem vulnerable rather than trashing “emerging markets”. But the market often treats the asset class as a monolith.

 

Finally, there’s a risk of declining commodity prices in the event of a strong U.S. dollar and a China that is rebalancing its economy toward domestic demand. China has been a marginal price setter for many commodities, and emerging markets debt generally has more commodity exporters than importers.

40

The tailwinds, on the other hand, are pretty significant. Most important, low debts and deficits are meaningful. During the “taper tantrum” of last year, for example, many emerging markets countries were able to cancel debt auctions as the market demanded higher yields, simply because there was no acute need for financing.

 

Related to this, the market severely punished countries with large current account deficits, which a number of countries addressed directly. Brazil and Indonesia have hiked interest rates significantly, and allowed their currencies to weaken, rather than wasting reserves defending a level for their currency. This is orthodox policy and directly addresses the market’s worry over current account deficits, regardless of whether these deficits were a serious cause for worry or not.

 

Finally, emerging markets bonds continue to pay higher real interest rates than developed markets bonds, despite the superior fundamentals of emerging markets’ economies. Through our ongoing research, we believe that emerging markets bonds seem to offer superior risk/return to developed markets bonds.

 

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.

 

We thoroughly appreciate your participation in the Unconstrained Emerging Markets Bond Fund, and we look forward to helping you meet your investment goals in the future.

 

Investment Team Members:

 

Eric Fine Portfolio Manager		Carlos Noguerira Assistant Portfolio Manager		David Austerweil Assistant Portfolio Manager
January 22, 2014

 

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. Results reflect past performance and do not guarantee future results.

 

1	The 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.
2	Emerging markets local currency bonds are bonds denominated in the local currency of the issuer.
3	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.
4	Hard currency refers to currencies that are generally widely accepted around the world such as the U.S. dollar, euro or yen.

41

UNCONSTRAINED EMERGING MARKETS BOND FUND

PERFORMANCE COMPARISON

December 31, 2013 (unaudited)

 

Average Annual Total Return 12/31/13			Class A-EMBAX After Maximum Sales Charge 1					Class A-EMBAX Before Sales Charge					GBI-EM
One Year				(10.16	)%				(4.70	)%				(8.98	)%
Life (since 7/9/12)				(0.15	)%				3.91	%				(0.17	)%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class A)

 

 

Average Annual Total Return 12/31/13			Class C-EMBCX After Maximum Sales Charge 2					Class C-EMBCX Before Sales Charge					GBI-EM
One Year				(6.26	)%				(5.37	)%				(8.98	)%
Life (since 7/9/12)				3.13	%				3.13	%				(0.17	)%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class C)

 

 

Inception date for the Unconstrained Emerging Markets Bond Fund was 7/9/12.

 

The performance quoted represents past performance. Past performance does not guarantee future results; current performance may be lower or higher than the performance data quoted. Investment return and value of shares of the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance information reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Index returns assume that dividends of the Index constituents in the Index have been reinvested. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the redemption of Fund shares. Performance information current to the most recent month end is available by calling 1.800.826.2333 or by visiting vaneck.com.

42

 

PERFORMANCE COMPARISON

December 31, 2013 (unaudited)

 

Average Annual Total Return 12/31/13			Class I-EMBUX After Maximum Sales Charge 3					Class I-EMBUX Before Sales Charge					GBI-EM
One Year				n/a						(4.38	)%			(8.98	)%
Life (since 7/9/12)				n/a						4.15	%			(0.17	)%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class I)

 

 

 

Average Annual Total Return 12/31/13			Class Y-EMBYX After Maximum Sales Charge 4					Class Y-EMBYX Before Sales Charge					GBI-EM
One Year				n/a					(4.49	)%				(8.98	)%
Life (since 7/9/12)				n/a					4.07	%				(0.17	)%
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.

 

Hypothetical Growth of $10,000 (Since Inception: Class Y)

 

 

1	A Shares: maximum sales charge is 5.75% Gross Expense Ratio 1.42% / Net Expense Ratio 1.25%		3	I shares: no sales or redemption charges Gross Expense Ratio 1.02% / Net Expense Ratio 0.95%
2	C Shares: 1.00% redemption charge, first year Gross Expense Ratio 2.59% / Net Expense Ratio 1.95%		4	Y shares: no sales or redemption charges Gross Expense Ratio 1.48% / Net Expense Ratio 1.00%

 

Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends on securities sold short, taxes and extraordinary expenses) from exceeding 1.25% for Class A, 1.95% for Class C, 0.95% for Class I, and 1.00% for Class Y of the Fund’s average daily net assets per year until May 1, 2014. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

 

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.

 

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

43

UNCONSTRAINED EMERGING MARKETS BOND FUND

EXPLANATION OF EXPENSES

(unaudited)

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including program fees on purchase payments; and (2) ongoing costs, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2013 to December 31, 2013.

 

Actual Expenses

 

The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”

 

Hypothetical Example for Comparison Purposes

 

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as fees on purchase payments. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

Unconstrained Emerging Markets Bond Fund

 

				Beginning Account Value July 1, 2013						Ending Account Value December 31, 2013				Annualized Expense Ratio During Period					Expenses Paid During the Period* July 1, 2013 - December 31, 2013
Class A		Actual			$	1,000.00				$	1,041.50				1.25	%				$	6.43
		Hypothetical**			$	1,000.00				$	1,018.90				1.25	%				$	6.36
Class C		Actual			$	1,000.00				$	1,038.20				1.95	%				$	10.02
		Hypothetical**			$	1,000.00				$	1,015.38				1.95	%				$	9.91
Class I		Actual			$	1,000.00				$	1,043.80				0.95	%				$	4.89
		Hypothetical**			$	1,000.00				$	1,020.42				0.95	%				$	4.84
Class Y		Actual			$	1,000.00				$	1,042.60				1.00	%				$	5.15
		Hypothetical**			$	1,000.00				$	1,020.16				1.00	%				$	5.09

 

*

Expenses are equal to the Fund’s annualized expense ratio (for the six months ended December 31, 2013) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).

**	Assumes annual return of 5% before expenses

44

CM COMMODITY INDEX FUND

SCHEDULE OF INVESTMENTS (a)

December 31, 2013

 

Principal Amount						Value
SHORT-TERM INVESTMENTS: 98.0%
United States Treasury Obligations: 93.7%
				United States Treasury Bills
$	20,000,000			0.05%, 02/27/14 (b)		$	19,998,416
	15,000,000			0.05%, 04/03/14			14,997,495
	10,000,000			0.06%, 01/16/14			9,999,771
	7,000,000			0.06%, 03/06/14 (b)			6,999,293
	16,000,000			0.06%, 05/01/14			15,997,424
	6,000,000			0.06%, 01/09/14 (b)			5,999,924
	20,000,000			0.06%, 02/20/14 (b)			19,998,333
	11,500,000			0.06%, 04/10/14 (b)			11,498,666
	14,000,000			0.07%, 02/06/14 (b)			13,999,090
	10,000,000			0.07%, 01/30/14			9,999,436
	13,000,000			0.07%, 04/17/14			12,998,726
	15,000,000			0.07%, 04/24/14 (b)			14,997,195
	16,000,000			0.09%, 06/12/14 (b)			15,996,240
	13,000,000			0.09%, 06/05/14			12,996,802
	25,000,000			0.09%, 05/15/14 (b)			24,995,150
	16,000,000			0.09%, 05/22/14 (b)			15,996,272
	12,000,000			0.10%, 05/29/14			11,997,060
							239,465,293

 

Number of Shares
Money Market Fund: 4.3%
	10,923,470			AIM Treasury Portfolio - Institutional Class			10,923,470
Total Short-term Investments (Cost: $250,374,448)							250,388,763
Other assets less liabilities: 2.0%							5,061,948
NET ASSETS: 100.0%						$	255,450,711

 

Total Return Swap Contracts – As of December 31, 2013, the Fund had outstanding swap contract with the following terms:

 

Long Exposure

 

Counterparty

Referenced Obligation

Notional Amount

Rate paid by the Fund

Termination  Date

% of Net Assets

Unrealized Appreciation

UBS AG

UBS Bloomberg Constant Maturity Commodity Index Total Return

$253,300,000

0.55%

01/08/14

0.1%

$

311,959

 

(a)	Represents Consolidated Schedule of Investments.
(b)	All or a portion of these securities are segregated for swap collateral.

 

Summary of Investments by Sector (unaudited)		% of Investments				Value
Government			95.6	%		$	239,465,293
Money Market Fund			4.4				10,923,470
			100.0	%		$	250,388,763

 

The summary of inputs used to value the Fund’s investments as of December 31, 2013 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs				Value
Short-Term Investments:
United States Treasury Obligations		$	—			$	239,465,293			$	—			$	239,465,293
Money Market Fund			10,923,470				—				—				10,923,470
Total		$	10,923,470			$	239,465,293			$	—			$	250,388,763
Other Financial Instruments:
Swap Contract		$	—			$	311,959			$	—			$	311,959

 

See Notes to Financial Statements

45

EMERGING MARKETS FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

 

Number of Shares						Value
COMMON STOCKS: 83.9%
Austria: 1.1%
	66,000			Erste Group Bank A.G. #		$	2,300,787
Brazil: 5.7%
	143,000			BB Seguridade Participacoes S.A.			1,485,006
	247,000			BR Malls Participacoes S.A. #			1,781,501
	123,000			BR Properties S.A. #			971,416
	64,000			Brazil Hospitality Group S.A. * #			373,309
	377,000			Estacio Participacoes S.A.			3,261,448
	32,500			Guararapes Confeccoes S.A. #			1,441,639
	171,000			Localiza Rent a Car S.A.			2,412,156
							11,726,475
China / Hong Kong: 26.2%
	248,000			AIA Group Ltd. #			1,248,305
	9,400			Baidu, Inc. (ADR) *			1,672,072
	2,857,000			Baoxin Auto Group Ltd. #			2,790,278
	4,163,392			Beijing Capital International Airport Co. Ltd. #			3,278,978
	3,193,000			Boer Power Holdings Ltd. #			2,938,917
	1,505,600			Brilliance China Automotive Holdings Ltd. #			2,455,370
	3,352,000			China Hongqiao Group Ltd. #			2,312,335
	2,112,000			China Medical System Holdings Ltd. #			2,261,573
	1,862,000			China Singyes Solar Technologies Holdings Ltd. #			1,879,398
	7,123,000			Franshion Properties China Ltd. #			2,469,467
	254,000			Galaxy Entertainment Group Ltd. * #			2,286,827
	6,947,000			Genting Hong Kong Ltd. (USD) * #			2,991,330
	561,000			Great Wall Motor Co. Ltd. #			3,100,905
	1,812,000			Greatview Aseptic Packaging Co. Ltd. #			1,071,152
	1,481,000			Kunlun Energy Co. Ltd. #			2,617,888
	19,777,026			REXLot Holdings Ltd. #			2,682,190
	1,615,000			Sunac China Holdings Ltd. #			960,252
	735,000			Techtronic Industries Co. #			2,098,273
	56,200			Tencent Holdings Ltd. #			3,593,976
	2,769,000			Termbray Petro-King Oilfield Services Ltd. * #			1,469,012
	9,357,000			Tiangong International Co. Ltd. #			2,711,743
	2,958,000			Xinyi Glass Holdings Ltd. #			2,620,485
	652,000			Zhuzhou CSR Times Electric Co. Ltd. #			2,360,103
							53,870,829
India: 12.2%
	107,200			Apollo Hospitals Enterprise Ltd. #			1,640,698
	644,357			DEN Networks Ltd. * #			1,731,449
	419,700			Glenmark Pharmaceuticals Ltd. #			3,621,593
	79,000			HCL Technologies Ltd. #			1,618,226
	124,400			Jammu & Kashmir Bank Ltd. #			2,901,153
	61,250			Larsen & Toubro Ltd. #			1,062,704
	1,210,000			Mundra Port & Special Economic Zone Ltd. #			3,044,883
	133,900			Persistent Systems Ltd.			2,127,940
	325,500			Phoenix Mills Ltd.			1,199,806
	28,000			Strides Arcolab Ltd. #			162,766
	93,800			Tech Mahindra Ltd. #			2,790,865
	516,000			Yes Bank Ltd. #			3,098,460
							25,000,543

 

Number of Shares						Value
Indonesia: 0.3%
	4,830,000			Express Transindo Utama Tbk PT * #		$	579,492
Israel: 0.0%
	68,000			Queenco Leisure International Ltd. (GDR) * # § Reg S			32,507
Malaysia: 1.0%
	1,328,000			Sapurakencana Petroleum Bhd * #			1,989,383
Mexico: 0.9%
	1,185,000			Credito Real S.A.B. de C.V.			1,820,633
Netherlands: 0.7%
	102,400			Nostrum Oil & Gas LP (GDR) Reg S			1,331,200
	10,000			Nostrum Oil & Gas LP (GDR) Reg S			130,000
							1,461,200
Nigeria: 2.0%
	16,200,000			Guaranty Trust Bank Plc #			2,760,263
	190,343			Nestle Nigeria Plc			1,428,411
							4,188,674
Panama: 0.9%
	11,700			Copa Holdings S.A. (Class A) (USD)			1,873,287
Peru: 1.2%
	18,000			Credicorp Ltd. (USD)			2,389,140
Philippines: 0.6%
	16,720,000			Megaworld Corp. #			1,225,525
Portugal: 1.4%
	149,000			Jeronimo Martins, SGPS S.A. #			2,913,505
Russia: 4.5%
	22,000			Eurasia Drilling Co. Ltd. (GDR) Reg S			990,000
	16,690			Magnit OJSC #			4,697,291
	120,000			Sberbank of Russia (ADR)			1,508,400
	741,000			Sberbank RF (USD) #			1,982,734
							9,178,425
Singapore: 2.4%
	2,762,600			Ezion Holdings Ltd. #			4,874,740
South Africa: 1.2%
	97,600			Aspen Pharmacare Holdings Ltd. #			2,503,160
South Korea: 6.2%
	40,700			Cheil Worldwide, Inc. * #			1,062,440
	97,900			GSretail Co. Ltd. #			2,599,528
	8,190			Hyundai Mobis Co. Ltd. #			2,280,127
	11,775			Hyundai Motor Co. #			2,643,095
	3,380			LG Household & Health Care Ltd. #			1,757,549
	47,250			Samsung Techwin Co. Ltd. #			2,439,589
							12,782,328
Switzerland: 1.5%
	597,000			Glencore Xstrata Plc (GBP) * #			3,105,925
Taiwan: 5.8%
	786,300			Chailease Holding Co. Ltd. #			2,076,452
	186,000			Cleanaway Co. Ltd. #			1,214,936
	140,000			GeoVision, Inc. #			883,540
	255,800			MediaTek, Inc. #			3,812,668
	180,000			Sinmag Equipment Corp. #			952,658
	183,800			Wowprime Corp. #			3,055,763
							11,996,017

 

See Notes to Financial Statements

46

 

 

Number of Shares						Value
Thailand: 1.8%
	29,000			Kasikornbank PCL #		$	138,621
	426,000			Kasikornbank PCL (NVDR) (THB) #			2,036,294
	3,317,000			Thai Beverage PCL (SGD) #			1,422,752
							3,597,667
Turkey: 0.7%
	210,000			TAV Havalimanlari Holding A.S. #			1,511,945
United Arab Emirates: 0.7%
	40,000			Al Noor Hospitals Group Plc (GBP) *			594,486
	117,000			NMC Health Plc (GBP)			848,802
							1,443,288
United Kingdom: 3.9%
	1,000,000			Afren Plc * #			2,804,954
	26,983			Bank of Georgia Holdings Plc #			1,070,522
	812,346			Hirco Plc * # §			154,639
	113,800			Ophir Energy Plc * #			618,002
	1,723,651			Raven Russia Ltd. * #			2,268,165
	653,981			Volga Gas Plc *			1,074,838
							7,991,120
United States: 0.9%
	636,000			Samsonite International S.A. (HKD) #			1,931,589
Zimbabwe: 0.1%
	750,000			Commercial Bank of Zimbabwe (USD)			112,500
Total Common Stocks (Cost: $148,136,122)							172,400,684
PREFERRED STOCK: 4.5%
South Korea: 4.5% (Cost: $7,531,378)
	9,705			Samsung Electronics Co. Ltd. #			9,333,379

 

Number of Shares						Value
REAL ESTATE INVESTMENT TRUSTS: 1.3%
Mexico: 0.6%
	657,000			TF Administradora Industrial, S.  de R.L. de C.V. #		$	1,182,514
Turkey: 0.7%
	1,460,000			Emlak Konut Gayrimenkul Yatirim  Ortakligi A.S. #			1,421,666
Total Real Estate Investment Trusts (Cost: $3,720,082)							2,604,180
WARRANTS: 2.4%
Luxembourg: 2.4%
	76,600			Deutsche Bank, London Branch,  aXess Warrants (USD 0.00,  expiring 12/01/14) * # (a)			2,267,115
	230,000			Deutsche Bank, London Branch,  aXess Warrants (USD 0.00,  expiring 09/27/16) * # (b)			2,698,383
Total Warrants (Cost: $4,564,522)							4,965,498
MONEY MARKET FUND: 6.2% (Cost: $12,725,729)
	12,725,729			AIM Treasury Portfolio – Institutional Class			12,725,729
Total Investments: 98.3% (Cost: $176,677,833)							202,029,470
Other assets less liabilities: 1.7%							3,426,713
NET ASSETS: 100.0%						$	205,456,183

 

 

ADR	— American Depositary Receipt
GBP	— British Pound
GDR	— Global Depositary Receipt
HKD	— Hong Kong Dollar
NVDR	— Non-Voting Depositary Receipt
SGD	— Singapore Dollar
THB	— Thai Baht
USD	— United States Dollar

 

 

(a)	Issue price $21.53. The security is linked to the performance of Herfy Food Services Co.
(b)	Issue price $8.53. The security is linked to the performance of The Saudi British Bank.
*	Non-income producing
#	Indicates a fair valued security which has not been valued utilizing an independent quote, but has been valued pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $163,043,616 which represents 79.4% of net assets.
§	Illiquid Security - the aggregate value of illiquid securities is $187,146 which represents 0.1% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.

 

See Notes to Financial Statements

47

EMERGING MARKETS FUND

SCHEDULE OF INVESTMENTS

(continued)

 

As of December 31, 2013, the Fund had the following open forward foreign currency contracts:

 

Counterparty		Contracts to deliver			In Exchange For				Settlement Dates				Unrealized Depreciation
State Street Bank And Trust Company		USD	174,988		EUR	127,703				1/2/2014				$	693
State Street Bank And Trust Company		USD	175,479		ZAR	1,815,112				1/2/2014					(2,446	)
Net unrealized depreciation on forward foreign currency contracts														$	(1,753	)

 

 

EUR	— Euro
USD	— United States Dollar
ZAR	— South African Rand

 

 

Restricted securities held by the Fund as of December 31, 2013 are as follows:

 

Security		Acquisition Date		Number of Shares		Acquisition Cost					Value			% of Net Assets
Queenco Leisure International Ltd. (GDR)		07/03/2007		68,000			$	1,297,605			$	32,507			0.0	%

 

Summary of Investments by Sector (unaudited)		% of Investments				Value
Basic Materials			4.0	%		$	8,130,003
Communications			4.0				8,059,937
Consumer Discretionary			1.1				2,267,115
Consumer, Cyclical			14.9				30,170,877
Consumer, Non-cyclical			21.0				42,433,165
Energy			6.5				13,025,277
Financial			20.1				40,564,221
Financials			1.3				2,698,383
Industrial			11.0				22,271,685
Technology			9.8				19,683,078
Money Market Fund			6.3				12,725,729
			100.0	%		$	202,029,470

 

See Notes to Financial Statements

48

 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2013 is as follows:

 

		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs				Value
Common Stocks
Austria		$	—			$	2,300,787			$	—			$	2,300,787
Brazil			7,158,610				4,567,865				—				11,726,475
China / Hong Kong			1,672,072				52,198,757				—				53,870,829
India			3,327,746				21,672,797				—				25,000,543
Indonesia			—				579,492				—				579,492
Israel			—				—				32,507				32,507
Malaysia			—				1,989,383				—				1,989,383
Mexico			1,820,633				—				—				1,820,633
Netherlands			1,461,200				—				—				1,461,200
Nigeria			1,428,411				2,760,263				—				4,188,674
Panama			1,873,287				—				—				1,873,287
Peru			2,389,140				—				—				2,389,140
Philippines			—				1,225,525				—				1,225,525
Portugal			—				2,913,505				—				2,913,505
Russia			2,498,400				6,680,025				—				9,178,425
Singapore			—				4,874,740				—				4,874,740
South Africa			—				2,503,160				—				2,503,160
South Korea			—				12,782,328				—				12,782,328
Switzerland			—				3,105,925				—				3,105,925
Taiwan			—				11,996,017				—				11,996,017
Thailand			—				3,597,667				—				3,597,667
Turkey			—				1,511,945				—				1,511,945
United Arab Emirates			1,443,288				—				—				1,443,288
United Kingdom			1,074,838				6,761,643				154,639				7,991,120
United States			—				1,931,589				—				1,931,589
Zimbabwe			112,500				—				—				112,500
Preferred Stock			—				9,333,379				—				9,333,379
Real Estate Investment Trusts			—				2,604,180				—				2,604,180
Warrants			—				4,965,498				—				4,965,498
Money Market Fund			12,725,729				—				—				12,725,729
Total		$	38,985,854			$	162,856,470			$	187,146			$	202,029,470
Other Financial Instruments
Forward Foreign Currency Contracts		$	—			$	(1,753	)		$	—			$	(1,753	)

 

During the year ended December 31, 2013, transfers of securities from Level 1 to Level 2 were $3,654,842 and transfers from Level 2 to Level 1 were $2,241,791. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by the pricing service (Level 2), which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Schedule of Investments.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the year ended December 31, 2013:

 

		Common Stocks
		Israel				United Kingdom
Balance as of December 31, 2012		$	—			$	—
Realized gain (loss)			—				—
Net change in unrealized appreciation (depreciation)			(7,780	)			(406,198	)
Purchases			—				—
Sales			—				—
Transfers in and/or out of level 3			40,287				560,837
Balance as of December 31, 2013		$	32,507			$	154,639

 

Transfers from Level 1 and Level 2 to Level 3 resulted primarily from limited and suspended trading.

 

See Notes to Financial Statements

49

GLOBAL HARD ASSETS FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

 

Number of Shares						Value
COMMON STOCKS: 94.5%
Bermuda: 0.3%
	744,400			Nabors Industries Ltd. (USD)		$	12,647,356
	6,400			SeaDrill Ltd. (USD)			262,912
							12,910,268
Brazil: 0.0%
	707,700			Brazilian Resources, Inc. (CAD) * # §			76,492
Canada: 7.8%
	624,900			Agrium, Inc. (USD)			57,165,852
	6,227,800			Eldorado Gold Corp. (USD)			35,436,182
	7,255,900			First Quantum Minerals Ltd.			130,739,398
	2,020,700			Goldcorp, Inc. (USD)			43,788,569
	4,283,224			Kinross Gold Corp. (USD)			18,760,521
	6,838,000			New Gold, Inc. (USD) *			35,831,120
							321,721,642
Kuwait: 0.3%
	359,225			Kuwait Energy Co. K.S.C.C. * # § ø			987,561
	3,233,023			Kuwait Energy Plc * # § ø			9,165,469
							10,153,030
Monaco: 0.5%
	1,590,100			Scorpio Tankers, Inc. (USD)			18,747,279
Norway: 0.9%
	921,800			SeaDrill Ltd. #			37,779,464
Switzerland: 6.4%
	40,749,725			Glencore Xstrata Plc (GBP) * #			212,002,650
	1,419,600			Noble Corp Plc (USD)			53,192,412
							265,195,062
United Kingdom: 5.1%
	29,387,914			Afren Plc * #			82,431,745
	435,000			African Minerals Ltd. * # ø			1,432,950
	2,388,800			African Minerals Ltd. * #			7,869,037
	1,327,300			Genel Energy Plc * #			23,633,999
	8,038,120			Ophir Energy Plc * #			43,651,788
	845,726			Randgold Resources Ltd. (ADR)			53,120,050
							212,139,569
United States: 73.2%
	953,417			Alpha Natural Resources, Inc. *			6,807,397
	1,583,900			Anadarko Petroleum Corp.			125,634,948
	660,500			Archer-Daniels-Midland Co.			28,665,700
	1,433,600			Atwood Oceanics, Inc. *			76,539,904
	2,050,800			Cameron International Corp. *			122,084,124
	1,470,600			Cimarex Energy Co.			154,280,646
	1,135,800			Cloud Peak Energy, Inc. *			20,444,400
	1,367,150			Concho Resources, Inc. *			147,652,200
	4,073,100			Consol Energy, Inc.			154,940,724
	473,200			Cummins, Inc.			66,707,004
	1,358,800			Delek US Holdings, Inc.			46,756,308
	616,500			Diamond Offshore Drilling, Inc.			35,091,180
	902,751			Diamondback Energy, Inc. *			47,719,418

Number of Shares						Value
United States: (continued)
	761,900			Dril-Quip, Inc. *		$	83,755,667
	661,200			EOG Resources, Inc.			110,975,808
	243,900			Green Plains Renewable Energy, Inc.			4,729,221
	370,500			Gulfport Energy Corp. *			23,397,075
	5,208,000			Halcon Resources Corp. *			20,102,880
	3,086,000			Halliburton Co.			156,614,500
	2,106,700			HollyFrontier Corp.			104,681,923
	505,400			Jacobs Engineering Group, Inc. *			31,835,146
	3,880,600			Louisiana-Pacific Corp. *			71,829,906
	3,852,700			Marathon Oil Corp.			136,000,310
	1,103,700			Marathon Petroleum Corp.			101,242,401
	1,529,300			National Oilwell Varco, Inc.			121,625,229
	1,971,775			Newfield Exploration Co. *			48,564,818
	2,034,700			Newmont Mining Corp.			46,859,141
	1,186,100			Occidental Petroleum Corp.			112,798,110
	1,411,200			Phillips 66			108,845,856
	782,800			Pioneer Natural Resources Co.			144,089,996
	1,804,500			Schlumberger Ltd.			162,603,495
	1,453,100			SM Energy Co.			120,767,141
	1,836,900			Steel Dynamics, Inc.			35,893,026
	2,405,300			Superior Energy Services, Inc. *			64,005,033
	1,798,400			Tesoro Corp.			105,206,400
	1,482,500			United States Steel Corp.			43,733,750
	541,789			Whiting Petroleum Corp. *			33,520,485
							3,027,001,270
Total Common Stocks (Cost: $3,191,906,173)							3,905,724,076
WARRANTS: 0.0%
Canada: 0.0%
	182,677			Kinross Gold Corp. Warrants (CAD 21.30, expiring 09/17/14) *			2,580
United States: 0.0%
	996,020			Far East Energy Corp. Warrants (USD 1.25, expiring 12/28/14) * # §			7,470
Total Warrants (Cost: $243,323)							10,050
EXCHANGE TRADED FUND: 0.8% (Cost: $35,937,133)
	299,200			SPDR Gold Trust *			34,758,064
MONEY MARKET FUND: 4.9% (Cost: $200,307,274)
	200,307,274			AIM Treasury Portfolio - Institutional Class			200,307,274
Total Investments: 100.2% (Cost: $3,428,393,903)							4,140,799,464
Liabilities in excess of other assets: (0.2)%							(6,860,149	)
NET ASSETS: 100.0%						$	4,133,939,315

 

See Notes to Financial Statements

50

 

 

 

ADR — American Depositary Receipt

CAD — Canadian Dollar

GBP — British Pound

USD — United States Dollar

 

 

*	Non-income producing
#	Indicates a fair valued security which has not been valued utilizing an independent quote, but has been valued pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $419,038,625 which represents 10.1% of net assets.
§	Illiquid Security - the aggregate value of illiquid securities is $10,236,992 which represents 0.2% of net assets.
Ø	Restricted Security - the aggregate value of restricted securities is $11,585,980, or 0.3% of net assets.

 

Restricted securities held by the Fund as of December 31, 2013 are as follows:

 

		Acquisition		Number of				Acquisition								% of
Security		Date		Shares				Cost				Value				Net Assets
African Minerals Ltd.		01/21/2010			435,000			$	2,833,678			$	1,432,950				0.1	%
Kuwait Energy Co. K.S.C.C.		08/06/2008			359,225				1,086,267				987,561				0.0
Kuwait Energy Plc		12/19/2011			3,233,023				9,776,405				9,165,469				0.2
								$	13,696,350			$	11,585,980				0.3	%

 

Summary of Investments		% of
by Sector (unaudited)		Investments				Value
Basic Materials			17.3	%		$	714,763,209
Consumer, Non-cyclical			0.7				28,665,700
Energy			71.6				2,965,314,265
Industrial			4.6				189,119,335
Industrial Metals			0.2				7,869,037
Precious Metals			0.0				2,580
Exchange Traded Fund			0.8				34,758,064
Money Market Fund			4.8				200,307,274
			100.0	%		$	4,140,799,464

 

The summary of inputs used to value the Fund’s investments as of December 31, 2013 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs				Value
Common Stocks
Bermuda		$	12,910,268			$	—			$	—			$	12,910,268
Brazil			—				—				76,492				76,492
Canada			321,721,642				—				—				321,721,642
Kuwait			—				—				10,153,030				10,153,030
Monaco			18,747,279				—				—				18,747,279
Norway			—				37,779,464				—				37,779,464
Switzerland			53,192,412				212,002,650				—				265,195,062
United Kingdom			53,120,050				159,019,519				—				212,139,569
United States			3,027,001,270				—				—				3,027,001,270
Warrants
Canada			2,580				—				—				2,580
United States			—				7,470				—				7,470
Exchange Traded Fund			34,758,064				—				—				34,758,064
Money Market Fund			200,307,274				—				—				200,307,274
Total		$	3,721,760,839			$	408,809,103			$	10,229,522			$	4,140,799,464

 

See Notes to Financial Statements

51

GLOBAL HARD ASSETS FUND

SCHEDULE OF INVESTMENTS

(continued)

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the year ended December 31, 2013:

 

		Common Stocks
		Brazil				Kuwait
Balance as of December 31, 2012		$	129,007			$	10,799,460
Realized gain (loss)			—				—
Net change in unrealized appreciation (depreciation)			(52,515	)			(646,430	)
Purchases			—				—
Sales			—				—
Transfers in and/or out of level 3			—				—
Balance as of December 31, 2013		$	76,492			$	10,153,030

 

The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of December 31, 2013:

 

Impact to

Valuation

Value as of

from an

December 31,

Unobservable Input

Unobservable

Increase

2013

Valuation Technique

Description (1)

Input

in Input (2)

Common Stocks

Brazil

$

76,492

Discounted cash flow

Discount for lack of market

25%

Decrease

Kuwait

10,153,030

Market comparable companies

Production multiple

45.0x

Increase

Reserve multiple

11.0x

Increase

 

(1)	In determining certain of these inputs, management evaluates a variety of factors including economic condition, industry and market developments, market valuations of comparable companies and company specific developments.
(2)	This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases or decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.

 

See Notes to Financial Statements

52

INTERNATIONAL INVESTORS GOLD FUND

SCHEDULE OF INVESTMENTS (a)

December 31, 2013

 

Number of Shares						Value
COMMON STOCKS: 98.9%
Australia: 4.4%
	9,736,424			Evolution Mining Ltd. #		$	5,391,926
	11,601,118			Gryphon Minerals Ltd. * #			1,773,720
	1,717,725			Newcrest Mining Ltd. #			12,062,361
	7,900,000			Papillon Resources Ltd. * #			6,960,193
							26,188,200
Canada: 71.8%
	800,000			Alamos Gold, Inc.			9,692,634
	963,544			Alamos Gold, Inc. (USD) ø			11,687,789
	1,760,000			Amarillo Gold Corp. *			165,686
	1,781,875			Argonaut Gold, Inc. *			8,924,053
	2,160,000			Argonaut Gold, Inc. ø			10,817,792
	3,356,000			Asanko Gold, Inc. *			5,402,457
	5,499,753			AuRico Gold, Inc. (USD)			20,129,096
	5,649,000			B2Gold Corp. *			11,593,147
	2,278,000			B2Gold Corp. (USD) *			4,601,560
	948,000			Bear Creek Mining Corp. (USD) ø			1,279,800
	667,000			Bear Creek Mining Corp. (USD) *			900,450
	4,300,000			Belo Sun Mining Corp. *			1,356,084
	2,599,000			Continental Gold Ltd. *			8,269,824
	1,839,000			Eastmain Resources, Inc. (USD) ø			445,038
	1,191,000			Eastmain Resources, Inc. (USD) *			288,222
	3,292,461			Eldorado Gold Corp.			18,690,082
	4,260,000			Eldorado Gold Corp. (USD)			24,239,400
	1,383,000			Fortuna Silver Mines, Inc. *			3,970,958
	702,000			Franco-Nevada Corp. (USD)			28,599,480
	3,000,000			Gold Canyon Resources, Inc. (USD) *			642,000
	328,386			Goldcorp, Inc.			7,122,630
	1,581,897			Goldcorp, Inc. (USD)			34,279,708
	1,030,000			Guyana Goldfields, Inc. *			1,590,209
	1,055,000			Guyana Goldfields, Inc. (USD) *			1,653,818
	2,777,000			Kinross Gold Corp. (USD)			12,163,260
	1,593,852			New Gold, Inc. *			8,342,498
	1,026,170			New Gold, Inc. (USD) ø			5,377,131
	6,282,630			New Gold, Inc. (USD) *			32,920,981
	4,632,875			Orezone Gold Corp. *			2,355,145
	1,093,333			Osisko Mining Corp. ø			4,847,822
	8,140,823			Osisko Mining Corp. *			36,096,284
	764,500			Premier Gold Mines Ltd. *			1,079,548
	668,000			Pretium Resources, Inc. *			3,446,119
	1,879,000			Primero Mining Corp. (USD) *			8,342,760
	5,600,000			Romarco Minerals, Inc. *			1,976,936
	4,300,000			Roxgold, Inc. *			1,801,365
	3,118,000			Rubicon Minerals Corp. *			2,876,573
	3,728,000			Sabina Gold & Silver Corp. *			2,561,958
	2,042,000			Semafo, Inc.			5,363,314

Number of Shares						Value
Canada: (continued)
	18,611			Silver Wheaton Corp.		$	375,812
	1,597,375			Silver Wheaton Corp. (USD)			32,251,001
	365,000			Silvercorp Metals, Inc.			838,409
	3,002,000			Silvercorp Metals, Inc. (USD)			6,874,580
	4,800,000			Sulliden Gold Corp. Ltd. *			3,253,471
	3,631,000			Timmins Gold Corp. *			3,862,584
	9,491,000			Torex Gold Resources, Inc. *			8,398,720
	3,360,578			Yamana Gold, Inc. (USD)			28,968,182
							430,716,370
Mexico: 2.3%
	1,100,000			Fresnillo Plc (GBP) #			13,677,321
United Kingdom: 8.7%
	4,242,500			Lydian International Ltd. (CAD) *			2,915,533
	783,000			Randgold Resources Ltd. (ADR)			49,180,230
							52,095,763
United States: 11.7%
	3,380,000			Klondex Mines Ltd. (CAD) *			5,122,900
	4,300,000			Midway Gold Corp. *			3,483,000
	360,000			Newmont Mining Corp.			8,290,800
	588,100			Royal Gold, Inc.			27,093,767
	1,500,000			Tahoe Resources, Inc. (CAD) ø			24,951,753
	96,300			Tahoe Resources, Inc. (CAD) *			1,601,903
							70,544,123
Total Common Stocks (Cost: $671,826,895)							593,221,777
WARRANTS: 0.0%
Canada: 0.0%
	354,041			Kinross Gold Corp. Warrants (CAD 21.30, expiring 09/17/14) *			4,999
	103,000			Pan American Silver Corp. Warrants (CAD 35.00, expiring   12/31/14) * # §			2,909
Total Warrants (Cost: $525,098)							7,908
MONEY MARKET FUND: 0.0% (Cost: $47,967)
	47,967			AIM Treasury Portfolio - Institutional Class			47,967
Total Investments: 98.9% (Cost: $672,399,960)							593,277,652
Other assets less liabilities: 1.1%							6,803,920
NET ASSETS: 100.0%						$	600,081,572

 

 

ADR — American Depositary Receipt

CAD — Canadian Dollar

GBP — British Pound

USD — United States Dollar

 

 

(a)	Represents Consolidated Schedule of Investments.
*	Non-income producing
#	Indicates a fair valued security which has not been valued utilizing an independent quote, but has been valued pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $39,868,430 which represents 6.6% of net assets.
§	Illiquid Security - the aggregate value of illiquid securities is $2,909 which represents 0.0% of net assets.
ø	Restricted Security - the aggregate value of restricted securities is $59,407,125, or 9.9% of net assets.

 

See Notes to Financial Statements

53

INTERNATIONAL INVESTORS GOLD FUND

SCHEDULE OF INVESTMENTS (a)

(continued)

 

Restricted securities held by the Fund as of December 31, 2013 are as follows:

 

		Acquisition		Number of				Acquisition								% of
Security		Date		Shares				Cost				Value				Net Assets
Alamos Gold, Inc.		01/14/2013			963,544			$	2,917,457			$	11,687,789				1.9	%
Argonaut Gold, Inc.		11/13/2009			2,160,000				10,383,442				10,817,792				1.8
Bear Creek Mining Corp.		08/15/2005			948,000				2,865,287				1,279,800				0.2
Eastmain Resources, Inc.		06/13/2008			1,839,000				2,503,501				445,038				0.1
New Gold, Inc.		06/28/2007			1,026,170				1,298,775				5,377,131				0.9
Osisko Mining Corp.		09/14/2009			1,093,333				2,959,754				4,847,822				0.8
Tahoe Resources, Inc.		05/28/2010			1,500,000				9,103,783				24,951,753				4.2
								$	32,031,999			$	59,407,125				9.9	%

 

Summary of Investments		% of
by Sector (unaudited)		Investments				Value
Diversified Minerals			0.8	%		$	4,650,293
Gold Mining			82.5				489,148,413
Precious Metals			6.6				39,259,739
Silver Mining			10.1				60,171,240
Money Market Fund			0.0				47,967
			100.0	%		$	593,277,652

 

The summary of inputs used to value the Fund’s investments as of December 31, 2013 is as follows:

 

						Level 2				Level 3
		Level 1				Significant				Significant
		Quoted				Observable				Unobservable
		Prices				Inputs				Inputs				Value
Common Stocks
Australia		$	—			$	26,188,200			$	—			$	26,188,200
Canada			430,716,370				—				—				430,716,370
Mexico			—				13,677,321				—				13,677,321
United Kingdom			52,095,763				—				—				52,095,763
United States			70,544,123				—				—				70,544,123
Warrants
Canada			4,999				2,909				—				7,908
Money Market Fund			47,967				—				—				47,967
Total		$	553,409,222			$	39,868,430			$	—			$	593,277,652

 

See Notes to Financial Statements

54

LONG/SHORT EQUITY FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

 

Number of Shares						Value
EXCHANGE TRADED FUNDS: 50.5%
	2,674			Consumer Discretionary Select Sector SPDR Fund		$	178,703
	3,928			Industrial Select Sector SPDR Fund			205,277
	1,251			iShares Russell 2000 ETF			144,253
Total Exchange Traded Funds (Cost: $505,053) (a)							528,233
Principal Amount
SHORT-TERM INVESTMENTS: 47.1%
Government Obligations: 38.3%
				United States Treasury Bills
$	200,000			0.06%,03/13/14			199,978
	200,000			0.07%,06/19/14			199,932
							399,910

Number of Shares						Value
Money Market Fund: 8.8%
	91,692			AIM Treasury Portfolio - Institutional Class		$	91,692
Total Short-term Investments (Cost: $491,602)							491,602
Total Investments: 97.6% (Cost: $996,655)							1,019,835
Other assets less liabilities: 2.4%							25,581
NET ASSETS: 100.0%						$	1,045,416
SECURITIES SOLD SHORT: (5.3)%
EXCHANGE TRADED FUND: (5.3)% (Proceeds: $(55,765))
	(543	)		iShares Barclays 20+ Year Treasury Bond Fund			(55,310	)
Total Securities Sold Short (Proceeds: $(55,765))						$	(55,310	)

 

 

(a)	All or a portion of these securities are segregated for securities sold short. Total value of the securities segregated, including cash on deposit with broker, is $586,463.

 

Summary of Investments by Sector (unaudited)		% of Investments				Value
Government			39.2	%		$	399,910
Exchange Traded Funds			51.8				528,233
Money Market Fund			9.0				91,692
			100.0	%		$	1,019,835

 

The summary of inputs used to value the Fund’s investments as of December 31, 2013 is as follows:

 

Long positions		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs			Value
Exchange Traded Funds		$	528,233			$	–			$	–		$	528,233
Short-term Investments			91,692				399,910				–			491,602
Total		$	619,925			$	399,910			$	–		$	1,019,835

 

Short positions		Level 1 Quoted Prices				Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs			Value
Exchange Traded Fund		$	(55,310	)		$	–			$	–		$	(55,310	)

 

See Notes to Financial Statements

55

MULTI-MANAGER ALTERNATIVES FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

 

Number of Shares						Value
COMMON STOCKS: 45.3%
Basic Materials: 4.6%
	24,425			Argonaut Gold, Inc. (CAD) *		$	122,326
	1,234			Ashland, Inc.			119,747
	48,550			Continental Gold Ltd. (CAD) *			154,482
	21,520			Eldorado Gold Corp.			122,449
	21,560			Eldorado Gold Corp. (CAD)			122,388
	42,050			Fortuna Silver Mines, Inc. (CAD) *			120,737
	5,730			Goldcorp, Inc.			124,169
	7,953			MAG Silver Corp. *			41,037
	1,320			Monsanto Co.			153,846
	25,110			New Gold, Inc. *			131,576
	31,970			Osisko Mining Corp. (CAD) *			141,754
	145,500			Papillon Resources Ltd. (AUD) * #			128,191
	1,800			Randgold Resources Ltd. (ADR)			113,058
	7,340			Tahoe Resources, Inc. *			122,138
							1,717,898
Communications: 9.3%
	1,100			Baidu, Inc. (ADR) *			195,668
	4,090			Brightcove, Inc. *			57,833
	2,594			CalAmp Corp. *			72,554
	4,177			CBS Corp.			266,242
	1,030			Discovery Communications, Inc. *			86,376
	1,277			DISH Network Corp. *			73,964
	2,083			eBay, Inc. *			114,336
	1,411			EchoStar Corp. *			70,155
	2,221			eGain Communications Corp. *			22,743
	1,573			Equinix, Inc. *			279,128
	2,966			Finisar Corp. *			70,947
	3,961			FTD Cos, Inc. *			129,049
	11,374			Globalstar, Inc. *			19,905
	178			Google, Inc. *			199,486
	4,812			ICG Group, Inc. *			89,648
	369			InterActiveCorp			25,347
	5,878			Lee Enterprises, Inc. *			20,397
	5,054			Liberty Interactive Corp. *			148,335
	968			Liberty Media Corp. *			141,764
	10,775			Lionbridge Technologies, Inc. *			64,219
	5,910			NeoPhotonics Corp. *			41,725
	8,566			News Corp. *			154,359
	2,151			Perficient, Inc. *			50,376
	139			Priceline.com, Inc. *			161,574
	15,330			RF Micro Devices, Inc. *			79,103
	14,461			ShoreTel, Inc. *			134,198
	830			Sinclair Broadcast Group, Inc.			29,656
	746			SPS Commerce, Inc. *			48,714
	2,123			Starz - Liberty Capital *			62,077
	795			Telephone & Data Systems, Inc.			20,495
	1,244			The Walt Disney Co.			95,042
	316			Tribune Co. *			24,458
	521			United States Cellular Corp.			21,788
	1,627			Verizon Communications, Inc.			79,951
	1,025			Viacom, Inc.			89,523
	4,366			Vivendi S.A. (EUR)			115,164
	1,651			Vodafone Group Plc (ADR)			64,901
	13,195			Westell Technologies, Inc. *			53,440
							3,474,640
Consumer, Cyclical: 4.6%
	582			Arrow Electronics, Inc. *			31,574
	3,032			Brookfield Residential Properties, Inc. *			73,344

Number of Shares						Value
Consumer, Cyclical: (continued)
	333			Burger King Worldwide, Inc.		$	7,612
	641			Conn’s, Inc. *			50,504
	1,640			Dollar Tree, Inc. *			92,529
	21,000			Galaxy Entertainment Group Ltd. (HKD) * #			189,068
	1,645			General Motors Co. *			67,231
	7,340			GSretail Co. Ltd. (KRW) #			194,898
	908			Hyundai Motor Co. (KRW) #			203,816
	282			Icahn Enterprises LP			30,854
	1,040			Las Vegas Sands Corp.			82,025
	1,437			Norwegian Cruise Line Holdings Ltd. *			50,970
	344			Ralph Lauren Corp.			60,740
	1,278			Royal Caribbean Cruises Ltd.			60,603
	1,792			Sears Holdings Corp. *			87,880
	1,146			Skechers USA, Inc. *			37,967
	1,219			Starbucks Corp.			95,557
	1,256			Tempur-Pedic International, Inc. *			67,774
	7,994			The Wendy’s Co.			69,708
	2,580			Winnebago Industries, Inc. *			70,821
	375			Wynn Resorts Ltd.			72,829
							1,698,304
Consumer, Non-cyclical: 5.7%
	6,612			Accuray, Inc. *			57,591
	490			Alliance Data Systems Corp. *			128,835
	1,341			Arthrocare Corp. *			53,962
	191			Ascent Capital Group, Inc. *			16,342
	1,531			Beam, Inc.			104,200
	271			BioMarin Pharmaceutical, Inc. *			19,043
	4,497			BioTelemetry, Inc. *			35,706
	1,234			Capital Senior Living Corp. *			29,604
	1,396			Cepheid, Inc. *			65,221
	60			Crimson Wine Group Ltd. *			530
	3,591			Cynosure, Inc. *			95,808
	193			Emerge Energy Services LP			8,556
	2,833			Exact Sciences Corp. *			33,118
	103,400			Ezion Holdings Ltd. (SGD) #			182,454
	5,729			Franklin Covey Co. *			113,893
	2,870			Globus Medical, Inc. *			57,917
	4,733			Healthways, Inc. *			72,652
	597			Hertz Global Holdings, Inc. *			17,086
	1,304			Iridex Corp. *			13,262
	9,531			Jeronimo Martins, SGPS S.A. (EUR) #			186,367
	3,501			KAR Auction Services, Inc.			103,455
	1,488			Korn/Ferry International *			38,867
	1,120			Masimo Corp. *			32,738
	375,000			Maxygen, Inc. Escrow Receipt #			0
	7,380			MiMedx Group, Inc. *			64,501
	401			Monro Muffler Brake, Inc.			22,600
	1,246			Novadaq Technologies, Inc. *			20,547
	905			Philip Morris International, Inc.			78,853
	1,864			Quanta Services, Inc. *			58,828
	702			Quidel Corp. *			21,685
	2,985			Repligen Corp. *			40,715
	3,655			Rockwell Medical, Inc. *			38,158
	5,680			Service Corp. International			102,978
	1,976			Spectranetics Corp. *			49,400
	6,591			TearLab Corp. *			61,560
	399			United Rentals, Inc. *			31,102
	1,904			Vascular Solutions, Inc. *			44,078
							2,102,212

 

See Notes to Financial Statements

56

 

 

Number of Shares						Value
Diversified: 0.2%
	2,444			Leucadia National Corp.		$	69,263
Energy: 4.1%
	66,769			Afren Plc (GBP) * #			187,284
	429			Baytex Energy Corp.			16,800
	1,349			Bill Barrett Corp. *			36,126
	1,796			Cabot Oil & Gas Corp.			69,613
	2,964			Comstock Resources, Inc.			54,212
	47			Core Laboratories N.V.			8,975
	3,408			Energy XXI Bermuda Ltd.			92,220
	1,944			EPL Oil & Gas, Inc. *			55,404
	753			Gulfport Energy Corp. *			47,552
	14,282			Halcon Resources Corp. *			55,129
	102,000			Kunlun Energy Co. Ltd. (HKD) #			180,300
	1,622			National Oilwell Varco, Inc.			128,998
	6,100			Pacific Rubiales Energy Corp.			105,286
	3,879			Precision Drilling Corp.			36,346
	4,435			Southwestern Energy Co. *			174,429
	229			Texas Pacific Land Trust (Royalty Trust)			22,664
	144,129			Volga Gas Plc (GBP) *			236,880
							1,508,218
Financial: 6.8%
	919			American Express Co.			83,381
	3,401			Assured Guaranty Ltd.			80,230
	10,580			Blackstone Group LP			333,270
	1,255			CME Group, Inc.			98,467
	1,400			Credicorp Ltd.			185,822
	10,839			Dream Unlimited Corp. *			172,026
	4,953			Dundee Corp. *			87,304
	2,712			Fidelity National Financial, Inc.			88,004
	518,000			Franshion Properties China Ltd. (HKD) #			179,585
	34,487			Kasikornbank PCL (NVDR) (THB) #			164,849
	3,743			KKR & Co. LP			91,105
	961			Oaktree Capital Group LLC			56,545
	1,908			Onex Corp.			102,938
	684			Outerwall, Inc. *			46,013
	1,687			Partners Value Fund, Inc. *			44,587
	5,427			Realogy Holdings Corp. *			268,474
	2,803			TD Ameritrade Holding Corp.			85,884
	3,738			The Charles Schwab Corp.			97,188
	898			The Howard Hughes Corp. *			107,850
	628			Visa, Inc.			139,843
							2,513,365
Industrial: 3.7%
	18			Allegion Plc *			795
	1,619			Apogee Enterprises, Inc.			58,138
	784			BE Aerospace, Inc. *			68,232
	2,378			Clean Harbors, Inc. *			142,585
	754			Colfax Corp. *			48,022
	3,239			CPI Aerostructures, Inc. *			48,715
	8,345			CUI Global, Inc. *			52,740
	638			Danaher Corp.			49,254
	1,011			EnerSys, Inc.			70,861
	7,329			Flow International Corp. *			29,609
	1,282			Forward Air Corp.			56,293
	814			Garmin Ltd.			37,623
	1,878			Greenbrier Cos, Inc. *			61,674
	2,329			InvenSense, Inc. *			48,397
	727			Martin Marietta Materials, Inc.			72,656

Number of Shares						Value
Industrial: (continued)
	5,473			Newport Corp. *		$	98,897
	2,936			Norbord, Inc.			93,335
	954			Roadrunner Transportation Systems, Inc. *			25,710
	1,054			Rogers Corp. *			64,821
	507			Texas Industries, Inc. *			34,871
	1,715			Trimble Navigation Ltd. *			59,510
	2,096			Waste Connections, Inc.			91,448
	1,116			Zebra Technologies Corp. *			60,353
							1,374,539
Technology: 6.3%
	481			ACI Worldwide, Inc. *			31,265
	8,054			Activision Blizzard, Inc.			143,603
	454			Ambarella, Inc. *			15,404
	266			Apple, Inc.			149,255
	7,262			Applied Micro Circuits Corp. *			97,166
	5,966			Atmel Corp. *			46,714
	4,861			Brooks Automation, Inc.			50,992
	8,946			Callidus Software, Inc. *			122,828
	8,082			CDC Corp. * #			3,394
	1,464			Cognizant Technology Solutions Corp. *			147,834
	1,740			Compuware Corp.			19,505
	8,002			Cypress Semiconductor Corp. *			84,021
	5,727			FormFactor, Inc. *			34,477
	11,555			Glu Mobile, Inc. *			44,949
	1,632			Himax Technologies, Inc. (ADR)			24,007
	13,587			inContact, Inc. *			106,114
	7,081			Kofax Ltd. *			52,683
	17,003			Mattson Technology, Inc. *			46,588
	6,880			MaxLinear, Inc. *			71,758
	1,219			Microchip Technology, Inc.			54,550
	1,316			Proofpoint, Inc. *			43,652
	3,603			QUALCOMM, Inc.			267,523
	3,380			Radware Ltd. *			60,772
	4,156			Rudolph Technologies, Inc. *			48,791
	136			Samsung Electronics Co. Ltd. (KRW) #			177,214
	4,534			Skyworks Solutions, Inc. *			129,491
	399			Solera Holdings, Inc.			28,233
	8,119			Streamline Health Solutions, Inc. *			56,671
	2,230			Sykes Enterprises, Inc. *			48,636
	153,480			Trident Microsystems, Inc. * #			3,453
	2,114			Ultratech, Inc. *			61,306
	639			Virtusa Corp. *			24,340
	17,085			Vitesse Semiconductor Corp. *			49,888
							2,347,077
Total Common Stocks (Cost: $14,612,376) (a)							16,805,516
REAL ESTATE INVESTMENT TRUSTS: 0.9%
Financial: 0.9%
	1,358			American Tower Corp.			108,396
	8,340			NorthStar Realty Finance Corp.			112,173
	1,743			Weyerhaeuser Co. (Preferred Security) 6.38%,07/01/16			97,678
Total Real Estate Investment Trusts (Cost: $237,218) (a)							318,247

 

See Notes to Financial Statements

57

MULTI-MANAGER ALTERNATIVES FUND

SCHEDULE OF INVESTMENTS

(continued)

 

Number of Shares						Value
WARRANTS: 0.0% (Cost: $19)
Telecommunication Services: 0.0%
	1,865			xG Technology, Inc.(USD 6.87, expiring 07/18/18) *		$	1,100
Principal Amount
ASSET-BACKED SECURITIES: 1.1%
$	42,750			Countrywide Asset-Backed Certificates 5.81%,02/25/18 (c)			40,403
	350,000			Sealane Trade Finance 14.24%,02/12/16 (f) # Reg S			366,891
Total Asset-Backed Securities (Cost: $393,492) (a)							407,294
CORPORATE BONDS: 11.9%
Basic Materials: 0.6%
$	110,000			Rockwood Specialties Group, Inc. 4.63%,10/15/15 (c)			112,887
	295,000			Sidetur Finance B.V. 10.00%,02/17/14 (c) Reg S ♦			91,450
							204,337
Communications: 3.0%
	205,000			Alaska Communications Systems Group, Inc. 6.25%,05/01/18 144A			170,150
				Clear Channel Communications, Inc.
	95,000			5.50%,09/15/14			94,762
	75,000			5.50%,12/15/16			66,375
	381,875			Maxcom Telecomunicaciones S.A.B. de C.V. 6.00%,06/15/17 (c) (s)			326,503
	320,000			Trilogy International Partners LLC 10.25%,02/18/14 (c) 144A			321,600
	92,000			United States Cellular Corp. 6.70%,12/15/33			87,445
	55,000			WebMD Health Corp. 2.50%,01/31/18			54,312
							1,121,147
Consumer, Cyclical: 1.5%
				Chukchansi Economic Development Authority
	49,702			9.75%,05/30/16 (c) Reg S			33,301
	213,721			9.75%,05/30/16 (c) 144A ♦			143,193
	55,000			JC Penney Corp., Inc. 6.38%,10/15/36			41,387
	102,300			Neebo, Inc. 15.00%,02/18/14 (c) 144A			106,903
	200,000			Sifco S.A. 11.50%,06/06/16 Reg S			73,375
	158,000			The Bon-Ton Department Stores, Inc. 10.63%,02/18/14 (c)			158,790
							556,949

Principal Amount						Value
Consumer, Non-cyclical: 0.8%
$	200,000			CFG Investment S.A.C. 9.75%,07/30/16 (c) Reg S		$	194,000
	79,000			Kinetic Concepts, Inc. 12.50%,11/01/15 (c)			89,665
							283,665
Energy: 2.6%
	300,000			Enercoal Resources Pte Ltd. 9.25%,08/05/14 (p) Reg S			186,000
	93,000			EPL Oil & Gas, Inc. 8.25%,02/15/15 (c)			100,440
	11,000			Green Field Energy Services, Inc. 13.25%,11/15/14 (c) § 144A ♦			1,980
CAD	30,000			Pengrowth Energy Corp. 6.25%,03/31/17			28,990
$	45,000			SunCoke Energy, Inc. 7.63%,08/01/14 (c)			48,712
	1,000,000			Tristan Oil Ltd. 26.06%,02/17/14 (c) ^ Reg S			610,000
							976,122
Financial: 2.6%
				Banco Cruzeiro do Sul S.A.
	280,000			7.00%,07/08/13 ♦			67,200
	125,000			8.00%,09/17/12 ♦			27,344
	315,000			8.25%,01/20/16 Reg S ♦			78,750
	450,000			8.50%,02/20/15 Reg S ♦			108,000
	131,000			Emigrant Bancorp, Inc. 6.25%,06/15/14 144A			134,069
	66,000			Jefferies Group, Inc. 3.88%,11/01/17 (c) (p)			70,084
	200,000			MF Global Holdings Ltd. 6.25%,08/08/16 ♦			100,000
	88,000			Nuveen Investments, Inc. 5.50%,09/15/15			88,880
MYR	1,000,000			Special Port Vehicle Bhd 5.30%,07/30/14 # §			293,085
							967,412
Industrial: 0.8%
$	123,782			Inversiones Alsacia S.A. 8.00%,02/18/15 (c) Reg S			90,980
	90,000			SAN Miguel Industrias Pet S.A. 7.75%,11/06/17 (c) 144A			92,200
	106,000			Tervita Corp. 9.75%,11/01/15 (c) Reg S			104,410
							287,590
Total Corporate Bonds (Cost: $4,709,100) (a)							4,397,222
FOREIGN GOVERNMENT OBLIGATIONS: 1.8%
ARS	8,026,000			Argentine Republic Government International Bond 12/15/35			139,759
NGN	44,000,000			Nigeria Treasury Bill 12.57%,12/04/14 ^			245,052
$	300,000			Provincia de Buenos Aires, Argentina 11.75%,10/05/15 Reg S			294,000
Total Foreign Government Obligations (Cost: $576,691)							678,811

 

See Notes to Financial Statements

58

 

 

Principal Amount						Value
STRUCTURED NOTE: 2.3% (Cost: $860,000)
Financial: 2.3%
$	860,000			Deutsche Bank A.G. London Branch, Alpha Overlay Securities 06/23/16 # § (b)		$	847,444
Number of Shares
CLOSED-END FUNDS: 2.1%
	2,933			DoubleLine Income Solutions Fund			61,857
	2,486			DoubleLine Opportunistic Credit Fund			55,488
	2,000			First Trust Strategic High Income Fund II			32,100
	3,900			Helios High Income Fund, Inc.			32,136
	5,500			Helios Multi-Sector High Income Fund, Inc.			33,055
	4,445			JZ Capital Partners Ltd. (GBP)			32,958
	1,945			Montgomery Street Income Securities, Inc.			30,225
	3,370			Nuveen Credit Strategies Income Fund			32,790
	1,612			PCM Fund, Inc.			18,780
	4,270			PIMCO Dynamic Credit Income Fund			95,990
	3,320			PIMCO Dynamic Income Fund			96,712
	3,414			PIMCO Income Opportunity Fund			96,445
	2,091			PIMCO Income Strategy Fund			23,649
	5,936			PIMCO Income Strategy Fund II			59,063
	5,275			Western Asset High Income Opportunity Fund, Inc.			31,281
	2,330			Western Asset Mortgage Defined Opportunity Fund, Inc.			54,009
Total Closed-End Funds (Cost: $817,493) (a)							786,538
EXCHANGE TRADED FUNDS: 0.3%
	495			iShares Silver Trust *			9,261
	1,000			SPDR Gold Trust *			116,170
Total Exchange Traded Funds (Cost: $165,848) (a)							125,431
OPEN-END FUND: 10.7% (Cost: $3,828,070)
	378,262			AQR Managed Futures Strategy Fund			3,975,534
OPTIONS PURCHASED: 0.0%
	1,900			CBOE SPX Volatility Index Put ($14, expiring 01/22/14)			1,653
	3,900			CBOE SPX Volatility Index Call ($20, expiring 01/22/14)			702
	400			Equinix, Inc. Call ($200, expiring 03/22/14)			1,050
	4,000			JC Penney Co., Inc. Put ($8, expiring 01/18/14)			600
	3,000			SPDR S&P 500 ETF Trust Put ($178, expiring 02/22/14)			4,110
Total Options Purchased (Cost: $21,576)							8,115

Number of Shares						Value
MONEY MARKET FUND: 29.6% (Cost: $10,983,919)
	10,983,919			AIM Treasury Portfolio - Institutional Class		$	10,983,919
Total Investments: 106.0% (Cost: $37,205,802)							39,335,171
Liabilities in excess of other assets: (6.0)%							(2,217,034	)
NET ASSETS: 100.0%						$	37,118,137
SECURITIES SOLD SHORT: (22.4)%
COMMON STOCKS: (11.0)%
Basic Materials: (0.3)%
	(456	)		Agrium, Inc.			(41,715	)
	(4,647	)		Glencore Xstrata Plc *			(24,257	)
	(1,084	)		US Silica Holdings, Inc.			(36,975	)
							(102,947	)
Communications: (1.3)%
	(578	)		AT&T, Inc.			(20,322	)
	(1,248	)		Constant Contact, Inc. *			(38,775	)
	(3,126	)		Corning, Inc.			(55,705	)
	(338	)		DIRECTV *			(23,352	)
	(351	)		Factset Research Systems, Inc.			(38,112	)
	(971	)		HealthStream, Inc. *			(31,820	)
	(1,376	)		Juniper Networks, Inc. *			(31,056	)
	(52	)		Netflix, Inc. *			(19,145	)
	(863	)		Nielsen Holdings N.V.			(39,603	)
	(534	)		Rackspace Hosting, Inc. *			(20,895	)
	(3,675	)		Sprint Corp. *			(39,506	)
	(777	)		Textura Corp. *			(23,263	)
	(1,248	)		tw telecom, Inc. *			(38,027	)
	(781	)		Viasat, Inc. *			(48,930	)
							(468,511	)
Consumer, Cyclical: (2.8)%
	(1,366	)		American Woodmark Corp. *			(53,998	)
	(1,199	)		Best Buy Co., Inc.			(47,816	)
	(1,248	)		BJ’s Restaurants, Inc. *			(38,763	)
	(1,596	)		Brunswick Corp.			(73,512	)
	(1,623	)		Burger King Worldwide, Inc.			(37,102	)
	(703	)		CarMax, Inc. *			(33,055	)
	(913	)		Carter’s, Inc.			(65,544	)
	(517	)		Darden Restaurants, Inc.			(28,109	)
	(388	)		GameStop Corp.			(19,113	)
	(634	)		Guess?, Inc.			(19,698	)
	(1,590	)		hhgregg, Inc. *			(22,212	)
	(570	)		Hibbett Sports, Inc. *			(38,310	)
	(3,651	)		Interface, Inc.			(80,176	)
	(1,466	)		International Game Technology			(26,623	)
	(1,577	)		Krispy Kreme Doughnuts, Inc. *			(30,420	)
	(97	)		Lumber Liquidators Holdings, Inc. *			(9,980	)
	(556	)		Macy’s, Inc.			(29,690	)
	(174	)		O’Reilly Automotive, Inc. *			(22,396	)
	(1,067	)		Potbelly Corp. *			(25,907	)
	(356	)		Red Robin Gourmet Burgers, Inc. *			(26,180	)
	(1,386	)		Regal Entertainment Group			(26,958	)
	(546	)		Restoration Hardware Holdings, Inc. *			(36,746	)
	(572	)		Six Flags Entertainment Corp.			(21,061	)
	(2,226	)		Sony Corp. (ADR)			(38,488	)
	(2,068	)		Staples, Inc.			(32,861	)
	(788	)		Steven Madden Ltd. *			(28,833	)

 

See Notes to Financial Statements

59

MULTI-MANAGER ALTERNATIVES FUND

SCHEDULE OF INVESTMENTS

(continued)

 

Number of Shares						Value
Consumer, Cyclical: (continued)
	(570	)		The Childrens Place Retail Stores, Inc. *		$	(32,473	)
	(2,369	)		The Wendy’s Co.			(20,658	)
	(3,797	)		Wabash National Corp. *			(46,893	)
	(228	)		WESCO International, Inc. *			(20,764	)
							(1,034,339	)
Consumer, Non-cyclical: (1.9)%
	(388	)		Abaxis, Inc. *			(15,527	)
	(1,023	)		Apollo Group, Inc. *			(27,948	)
	(777	)		Booz Allen Hamilton Holding Corp.			(14,880	)
	(1,292	)		DeVry, Inc.			(45,866	)
	(799	)		Euronet Worldwide, Inc. *			(38,232	)
	(845	)		Fairway Group Holdings Corp. *			(15,311	)
	(1,496	)		Green Dot Corp. *			(37,624	)
	(210	)		Green Mountain Coffee Roasters, Inc.			(15,872	)
	(1,539	)		Hertz Global Holdings, Inc. *			(44,046	)
	(902	)		Huron Consulting Group, Inc. *			(56,573	)
	(487	)		IPC The Hospitalist Co., Inc. *			(28,923	)
	(1,199	)		Iron Mountain, Inc.			(36,390	)
	(483	)		Neogen Corp. *			(22,073	)
	(1,421	)		Nutrisystem, Inc.			(23,361	)
	(764	)		On Assignment, Inc. *			(26,679	)
	(690	)		Pfizer, Inc.			(21,135	)
	(961	)		Safeway, Inc.			(31,300	)
	(449	)		Strayer Education, Inc. *			(15,477	)
	(3,108	)		SunOpta, Inc. *			(31,111	)
	(116	)		The Boston Beer Co., Inc. *			(28,048	)
	(643	)		The Coca-Cola Co.			(26,562	)
	(801	)		The Kroger Co.			(31,664	)
	(1,596	)		The Western Union Co.			(27,531	)
	(315	)		VistaPrint N.V. *			(17,908	)
	(656	)		Weight Watchers International, Inc. *			(21,602	)
							(701,643	)
Financial: (0.2)%
	(872	)		Legg Mason, Inc.			(37,915	)
	(942	)		The Progressive Corp.			(25,688	)
	(487	)		WageWorks, Inc. *			(28,947	)
							(92,550	)
Industrial: (1.4)%
	(1,166	)		Aerovironment, Inc. *			(33,966	)
	(183	)		Alamo Group, Inc.			(11,106	)
	(1,109	)		Chart Industries, Inc. *			(106,065	)
	(9,230	)		Flextronics International Ltd. *			(71,717	)
	(1,013	)		Garmin Ltd.			(46,821	)
	(407	)		Generac Holdings, Inc.			(23,052	)
	(235	)		General Dynamics Corp.			(22,454	)
	(359	)		Huntington Ingalls Industries, Inc.			(32,314	)
	(170	)		Lockheed Martin Corp.			(25,272	)
	(1,247	)		Mine Safety Appliances Co.			(63,859	)
	(225	)		Northrop Grumman Corp.			(25,787	)
	(970	)		The Babcock & Wilcox Co.			(33,164	)
	(584	)		Tyco International Ltd.			(23,967	)
							(519,544	)
Technology: (2.7)%
	(3,060	)		Activision Blizzard, Inc.			(54,559	)
	(426	)		Adobe Systems, Inc. *			(25,509	)
	(577	)		Akamai Technologies, Inc. *			(27,223	)
	(1,288	)		Applied Materials, Inc.			(22,784	)
	(639	)		Cerner Corp. *			(35,618	)

Number of Shares						Value
Technology: (continued)
	(365	)		Concur Technologies, Inc. *		$	(37,661	)
	(3,439	)		Electronic Arts, Inc. *			(78,890	)
	(337	)		First Solar, Inc. *			(18,414	)
	(1,361	)		Hewlett-Packard Co.			(38,081	)
	(417	)		Infosys Ltd. (ADR)			(23,602	)
	(722	)		Intel Corp.			(18,743	)
	(143	)		International Business Machines Corp.			(26,823	)
	(358	)		Intuit, Inc.			(27,323	)
	(554	)		j2 Global, Inc.			(27,706	)
	(988	)		Lexmark International, Inc.			(35,094	)
	(692	)		Linear Technology Corp.			(31,521	)
	(795	)		Mantech International Corp.			(23,794	)
	(1,166	)		Mercury Computer Systems, Inc. *			(12,768	)
	(901	)		Microsoft Corp.			(33,724	)
	(1,750	)		NVIDIA Corp.			(28,035	)
	(370	)		Open Text Corp.			(34,025	)
	(754	)		Oracle Corp.			(28,848	)
	(1,885	)		Riverbed Technology, Inc. *			(34,081	)
	(326	)		SAP A.G. (ADR)			(28,408	)
	(1,113	)		SciQuest, Inc. *			(31,698	)
	(498	)		Seagate Technology Plc			(27,968	)
	(624	)		ServiceNow, Inc. *			(34,950	)
	(894	)		Silicon Laboratories, Inc. *			(38,719	)
	(390	)		Stratasys Ltd. *			(52,533	)
	(310	)		Ultimate Software Group, Inc. *			(47,498	)
	(309	)		Western Digital Corp.			(25,925	)
							(1,012,525	)
Utilities: (0.4)%
	(60,300	)		Centrais Eletricas Brasileiras S.A. (ADR)			(156,177	)
Total Common Stocks (Proceeds: $(3,679,247))							(4,088,236	)
EXCHANGE TRADED FUNDS: (11.4)%
	(1,711	)		Consumer Staples Select Sector SPDR Fund			(73,539	)
	(7,900	)		CurrencyShares Japanese Yen Trust *			(732,804	)
	(20,723	)		Direxion Daily Emerging Markets Bull 3X Shares *			(594,750	)
	(384	)		Energy Select Sector SPDR Fund			(33,988	)
	(1,938	)		Industrial Select Sector SPDR Fund			(101,280	)
	(4,216	)		iShares Barclays 20+ Year Treasury Bond Fund			(429,442	)
	(3,415	)		iShares Russell 2000 ETF			(393,784	)
	(2,125	)		iShares Silver Trust *			(39,759	)
	(66,700	)		Market Vectors Gold Miners ETF ‡			(1,408,704	)
	(1,942	)		Market Vectors Semiconductor ETF ‡			(82,400	)
	(1,598	)		Materials Select Sector SPDR Fund			(73,860	)
	(1,893	)		SPDR Barclays High Yield Bond ETF			(76,780	)
	(399	)		SPDR S&P Oil & Gas Exploration & Production ETF			(27,343	)
	(1,372	)		SPDR S&P Retail ETF			(120,873	)
	(1,054	)		Technology Select Sector SPDR Fund			(37,670	)
Total Exchange Traded Funds (Proceeds: $(5,428,670))							(4,226,976	)
Total Securities Sold Short (Proceeds: $(9,107,917))						$	(8,315,212	)

 

See Notes to Financial Statements

60

 

 

Number of Shares						Value
WRITTEN OPTIONS: (0.1)%
	(3,900	)		CBOE SPX Volatility Index Call ($30, expiring 01/22/14)		$	(195	)
	(1,900	)		CBOE SPX Volatility Index Put ($15, expiring 01/22/14)			(2,945	)
	(700	)		CBS Corp. Call ($65, expiring 03/22/14)			(1,673	)
	(400	)		Equinix, Inc. Put ($165, expiring 03/22/14)			(2,200	)
	(600	)		General Motors Co. Call ($43, expiring 01/18/14)			(174	)
	(1,600	)		Hertz Global Holdings, Inc. Put ($23, expiring 03/22/14)			(432	)
	(1,800	)		Hertz Global Holdings, Inc. Put ($24, expiring 03/22/14)			(900	)
	(4,000	)		JC Penney Co., Inc. Put ($5, expiring 01/18/14)			(80	)
	(2,600	)		JC Penney Co., Inc. Put ($13, expiring 01/17/15)			(13,520	)

Number of Shares						Value
WRITTEN OPTIONS: (continued)
	(800	)		KKR & Co. LP Call ($20, expiring 01/18/14)		$	(3,480	)
	(1,700	)		Live Nation Entertainment, Inc. Put ($10, expiring 01/18/14)			(85	)
	(1,000	)		NorthStar Realty Finance Corp. Call ($13, expiring 03/22/14)			(1,180	)
	(6,600	)		SPDR S&P 500 ETF Trust Put ($177, expiring 02/22/14)			(8,118	)
	(6,400	)		SPDR S&P 500 ETF Trust Put ($174, expiring 01/18/14)			(1,536	)
	(3,000	)		SPDR S&P 500 ETF Trust Put ($167, expiring 02/22/14)			(1,350	)
	(7,100	)		SPDR S&P 500 ETF Trust Put ($170, expiring 02/22/14)			(4,118	)
	(6,700	)		SPDR S&P 500 ETF Trust Put ($175, expiring 02/22/14)			(6,231	)
Total Written Options (Premiums received: $(69,349))						$	(48,217	)

 

 

ADR	— American Depositary Receipt
ARS	— Argentine Peso
AUD	— Australian Dollar
CAD	— Canadian Dollar
EUR	— Euro
GBP	— British Pound
HKD	— Hong Kong Dollar
KRW	— Korean Won
MYR	— Malaysian Ringgit
NGN	— Nigerian Naira
NVDR	— Non-Voting Depositary Receipt
SGD	— Singapore Dollar
THB	— Thai Baht
USD	— United States Dollar

 

 

(a)	All or a portion of these securities are segregated for securities sold short and written options. Total value of the securities segregated, including cash on deposit with broker, is $21,514,539.
(b)	Issued with zero coupon at par. The security is linked to the performance of the Deutsche Bank ProVol Hedge Index, the Deutsche Bank Equity Mean Reversion Alpha Index, the Deutsche Bank Equity Mean Reversion Alpha Index Emerging Markets and the Deutsche Bank Fed Funds Effective Rate Total Return Index.
(c)	Callable Security - the redemption date shown is when the security may be redeemed by the issuer
(f)	Floating Rate Bond - coupon reflects the rate in effect at the end of the reporting period
(p)	Puttable Security - the redemption date shown is when the security may be redeemed by the investor
(s)	Step Bond - coupon increases periodically based upon a predetermined schedule. The rate shown reflects the rate in effect at the end of the reporting period
^	Zero Coupon Bond - the rate shown is the effective yield at purchase date
‡	Affiliated issuer – as defined under the Investment Company Act of 1940.
*	Non-income producing
#	Indicates a fair valued security which has not been valued utilizing an independent quote, but has been valued pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $3,488,293 which represents 9.4% of net assets.
§	Illiquid Security - the aggregate value of illiquid securities is $1,142,509 which represents 3.1% of net assets.
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $970,095, or 2.6% of net assets.
♦	Security in default

 

See Notes to Financial Statements

61

MULTI-MANAGER ALTERNATIVES FUND

SCHEDULE OF INVESTMENTS

(continued)

 

Restricted securities held by the Fund as of December 31, 2013 are as follows:

 

Acquisition

Number of

Acquisition

% of

Security

Date

Shares

Cost

Value

Net Assets

Green Field Energy Services, Inc.

11/15/2012

11,000

$

12,807

$

1,980

0.0

%

 

A summary of the Fund’s transactions in securities of affiliates for the year ended December 31, 2013 is set forth below:

 

		Value										Sales					Realized					Dividend					Value
Affiliates		12/31/12					Purchases					Proceeds					Gain (Loss)					Income					12/31/13
Market Vectors Emerging Markets High Yield Bond ETF			$	809,100				$	—				$	814,743				$	24,178				$	—				$	—
Market Vectors Emerging Markets Local Currency Bond ETF				1,015,651					—					1,016,346					78,580					1,748					—
Market Vectors Gold Miners ETF (1)				(1,071,610	)				106,841					1,243,317					(649	)				—					(1,408,704	)
Market Vectors International High Yield Bond ETF				819,543					—					834,878					44,361					—					—
Market Vectors Junior Gold Miners ETF				(10,890	)				6,991					—					6,164					—					—
Market Vectors Oil Services ETF				(17,406	)				20,035					656					(1,964	)				—					—
Market Vectors Semiconductor ETF (1)				(29,748	)				340,126					368,576					(23,584	)				—					(82,400	)
			$	1,514,640				$	473,993				$	4,278,516				$	127,086				$	1,748				$	(1,491,104	)

 

(1)	Represents short position at December 31, 2013.

 

Summary of Investments		% of
by Sector (unaudited)		Investments				Value
Basic Materials			4.9	%		$	1,922,235
Communications			11.7				4,595,787
Consumer, Cyclical			5.7				2,255,253
Consumer, Non-cyclical			6.1				2,385,877
Diversified			0.2				69,263
Energy			6.3				2,484,340
Financial			13.8				5,433,006
Government			1.7				678,811
Industrial			4.2				1,662,129
Technology			6.0				2,347,077
Telecommunication Services			0.0				1,100
Asset-Backed Securities			1.1				407,294
Exchange Traded Funds			0.3				125,431
Open-End Fund			10.1				3,975,534
Options Purchased			0.0				8,115
Money Market Fund			27.9				10,983,919
			100.0	%		$	39,335,171

 

See Notes to Financial Statements

62

 

 

The summary of inputs used to value the Fund’s investments as of December 31, 2013 is as follows:

 

							Level 2					Level 3
		Level 1					Significant					Significant
		Quoted					Observable					Unobservable
Long positions		Prices					Inputs					Inputs					Value
Common Stocks
Basic Materials			$	1,589,707				$	128,191				$	—				$	1,717,898
Communications				3,474,640					—					—					3,474,640
Consumer, Cyclical				1,110,522					587,782					—					1,698,304
Consumer, Non-cyclical				1,733,391					368,821					—					2,102,212
Diversified				69,263					—					—					69,263
Energy				1,140,634					367,584					—					1,508,218
Financial				2,168,931					344,434					—					2,513,365
Industrial				1,374,539					—					—					1,374,539
Technology				2,163,016					177,214					6,847					2,347,077
Real Estate Investment Trusts*				318,247					—					—					318,247
Warrants*				1,100					—					—					1,100
Asset-Backed Securities				—					407,294					—					407,294
Corporate Bonds*				—					4,397,222					—					4,397,222
Foreign Government Obligations				—					678,811					—					678,811
Structured Note*				—					847,444					—					847,444
Closed-End Funds				786,538					—					—					786,538
Exchange Traded Funds				125,431					—					—					125,431
Open-End Fund				3,975,534					—					—					3,975,534
Options Purchased				8,115					—					—					8,115
Money Market Fund				10,983,919					—					—					10,983,919
Total			$	31,023,527				$	8,304,797				$	6,847				$	39,335,171
							Level 2					Level 3
		Level 1					Significant					Significant
		Quoted					Observable					Unobservable
Short positions		Prices					Inputs					Inputs					Value
Common Stocks*			$	(4,088,236	)			$	—				$	—				$	(4,088,236	)
Exchange Traded Funds				(4,226,976	)				—					—					(4,226,976	)
Total			$	(8,315,212	)			$	—				$	—				$	(8,315,212	)
Other Financial Instruments:
Written Options			$	(48,217	)			$	—				$	—				$	(48,217	)

 

* See Schedule of Investments for security type and industry sector breakouts.

 

The following table reconciles the valuation of the Fund’s Level 3 investment securities and related transactions during the year ended December 31, 2013:

 

		Common Stocks
		Long Position
		Technology
Balance as of December 31, 2012			$	24,928
Realized gain (loss)				—
Net change in net unrealized appreciation (depreciation)				(18,081	)
Purchases				—
Sales				—
Transfers in and/or out of level 3				—
Balance as of December 31, 2013			$	6,847

 

See Notes to Financial Statements

63

UNCONSTRAINED EMERGING MARKETS BOND FUND

SCHEDULE OF INVESTMENTS

December 31, 2013

 

Principal Amount						Value
CORPORATE BONDS: 42.7%
Argentina: 6.9%
USD	997,040			Aeropuertos Argentinia 2000 10.75%, 12/22/15 (c) Reg S		$	1,011,996
				Empresa Distribuidora Y Comercializadora Norte
	498,000			9.75%, 10/25/18 (c) Reg S			342,375
	148,000			10.50%, 02/10/14 (c)			101,750
				IRSA Inversiones y Representaciones S.A.
	76,000			8.50%, 01/14/14 (c) Reg S			76,570
	2,117,000			11.50%, 07/20/20 Reg S			2,248,275
				YPF S.A.
	5,500,000			7.74%, 08/15/18 (f) Reg S			5,797,000
	1,611,000			8.88%, 12/19/18 144A			1,679,468
							11,257,434
Brazil: 3.4%
BRL	8,880,000			Cia Energetica de Sao Paulo 6.01%, 01/15/15 Reg S TIPS			5,571,630
Cayman Islands: 3.8%
USD	1,497,000			Bantrab Senior Trust 9.00%, 11/14/20 144A			1,497,936
	4,933,000			Marfrig Overseas Ltd. 9.50%, 05/04/15 (c) Reg S			4,637,020
							6,134,956
Chile: 1.3%
CLP	1,109,500,000			SACI Falabella 6.50%, 04/30/23 Reg S			2,016,452
Colombia: 4.5%
COP	6,130,000,000			Emgesa S.A. ESP 8.75%, 01/25/21 Reg S			3,375,629
	7,189,000,000			Empresas Publicas de Medellin ESP 8.38%, 02/01/21 Reg S			3,885,040
							7,260,669
Hungary: 2.6%
				Nitrogenmuvek Zrt
USD	3,000,000			7.88%, 05/21/17 (c) 144A			2,820,000
	1,560,000			7.88%, 05/21/17 (c) Reg S			1,466,400
							4,286,400
Indonesia: 0.5%
	800,000			Berau Coal Energy Tbk PT 7.25%, 03/13/15 (c) Reg S			794,000
Mexico: 9.1%
	380,000			Corp GEO S.A.B. de C.V. 9.25%, 06/30/15 (c) Reg S ♦			57,000
MXN	54,650,000			Grupo Televisa S.A.B. 7.25%, 05/14/43			3,410,233
	84,480,000			Petroleos Mexicanos 7.65%, 11/24/21 Reg S			6,671,031
USD	4,600,000			Servicios Corporativos Javer S.A.P.I. de C.V. 9.88%, 04/06/16 (c) Reg S			4,692,000
							14,830,264

Principal Amount						Value
Singapore: 3.2%
	1,351,000			Bakrie Telecom Pte Ltd. 11.50%, 02/07/14 (c) Reg S ♦		$	219,538
	2,340,000			Bumi Capital Pte. Ltd. 12.00%, 02/07/14 (c) Reg S			1,602,900
	4,828,000			Bumi Investment Pte Ltd. 10.75%, 10/06/14 (c) Reg S			3,319,250
							5,141,688
South Korea: 0.3%
IDR	5,780,000,000			Export-Import Bank of Korea 8.30%, 03/15/14 Reg S			472,564
Venezuela: 4.6%
USD	14,012,000			Petroleos de Venezuela S.A. 6.00%, 11/15/26 Reg S			7,496,420
Vietnam: 2.5%
				Vingroup JSC
	1,380,000			11.63%, 11/07/16 (c) Reg S			1,466,250
	2,366,000			11.63%, 11/07/16 (c) 144A			2,513,875
							3,980,125
Total Corporate Bonds (Cost: $70,889,691)							69,242,602
FOREIGN GOVERNMENT OBLIGATIONS: 54.1%
Argentina: 7.9%
	4,979,000			Argentina Boden Bond 7.00%, 10/03/15			4,893,804
	6,193,000			Provincia de Cordoba, Argentina 12.38%, 08/17/17 Reg S			5,829,161
	1,795,430			Provincia de Neuquen, Argentina 7.88%, 04/26/21 Reg S			1,813,384
	366,887			Provincia de Salta, Argentina 9.50%, 03/16/22 Reg S			355,856
							12,892,205
Brazil: 8.0%
				Nota do Tesouro Nacional, Series F
BRL	7,164,000			10.00%, 01/01/15			3,023,704
	24,878,000			10.00%, 01/01/17			9,994,634
							13,018,338
Chile: 3.5%
				Bonos de la Tesoreria de la Republica en pesos
CLP	375,000,000			6.00%, 01/01/18			743,793
	2,500,000,000			6.00%, 01/01/20			5,008,580
							5,752,373
Hungary: 8.2%
HUF	2,795,510,000			Hungarian Government Bond 6.00%, 11/24/23			13,307,125
Israel: 4.8%
ILS	26,040,000			Israel Government Bond 4.25%, 03/31/23			7,861,973
Mexico: 1.3%
MXN	26,000,000			Mexican Government International Bond 7.75%, 05/29/31			2,088,698

 

See Notes to Financial Statements

64

 

 

Principal Amount						Value
Nigeria: 2.7%
				Nigerian Treasury Bills
NGN	255,853,000			12.43%, 01/23/14 ^		$	1,588,560
	254,000,000			12.66%, 01/16/14 ^			1,579,659
	186,200,000			13.54%, 02/06/14 ^			1,156,876
							4,325,095
Portugal: 4.9%
EUR	7,841,000			Portugal Obrigacoes do Tesouro OT 4.10%, 04/15/37 Reg S 144A			7,900,835
South Korea: 4.7%
				Korea Treasury Bonds
KRW	6,456,970,000			3.00%, 12/10/16			6,146,857
	1,520,600,000			3.38%, 09/10/23			1,418,988
							7,565,845
Sri Lanka: 6.7%
LKR	1,471,000,000			Sri Lankan Government Bond 8.50%, 04/01/18 (a)			10,902,438
Supranational: 1.4%
IDR	7,500,000,000			European Investment Bank 6.00%, 04/22/14			612,264
				Inter-American Development Bank
	14,050,000,000			4.50%, 02/04/16			1,057,713
	7,110,000,000			6.50%, 06/04/14			567,255
							2,237,232
Total Foreign Government Obligations (Cost: $86,455,224)							87,852,157

Number of Shares						Value
MONEY MARKET FUND: 0.2% (Cost: $313,029)
	313,029			AIM Treasury Portfolio - Institutional Class		$	313,029
Total Investments: 97.0% (Cost: $157,657,944)							157,407,788
Other assets less liabilities: 3.0%							4,873,437
NET ASSETS: 100.0%						$	162,281,225

 

 

BRL	—	Brazilian Real
CLP	—	Chilean Peso
COP	—	Colombian Peso
EUR	—	Euro
HUF	—	Hungarian Forint
IDR	—	Indonesian Rupiah
ILS	—	Israeli Sheqel
KRW	—	Korean Won
LKR	—	Sri Lankan Rupee
MXN	—	Mexican Peso
NGN	—	Nigerian Naira
USD	—	United States Dollar

 

 

(a)	All or a portion of these securities are segregated for foreign forward currency contracts.
(c)	Callable Security - the redemption date shown is when the security may be redeemed by the issuer
(f)	Floating Rate Bond - coupon reflects the rate in effect at the end of the reporting period
^	Zero Coupon Bond - the rate shown is the effective yield at purchase date
Reg S	Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration.
144A	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $8,511,279, or 5.2% of net assets.
TIPS	Treasury Inflation Protected Securities
♦	Security in default

 

See Notes to Financial Statements

65

UNCONSTRAINED EMERGING MARKETS BOND FUND

SCHEDULE OF INVESTMENTS

(continued)

 

As of December 31, 2013, the Fund had the following open forward foreign currency contracts:

 

Counterparty

Contracts to deliver

In Exchange For

Settlement Dates

Unrealized Appreciation / (Depreciation)

State Street Bank And Trust Company

PEN

11,443,192

USD

4,095,924

1/13/2014

$

11,314

State Street Bank And Trust Company

USD

4,075,211

PEN

11,443,192

1/13/2014

9,399

Net unrealized appreciation on forward foreign currency contracts

$

20,713

 

 

PEN — Peruvian Nuevo Sol
USD — United States Dollar

 

 

Summary of Investments		% of
by Sector (unaudited)		Investments				Value
Basic Materials			2.7	%		$	4,286,400
Communications			2.3				3,629,771
Consumer, Cyclical			4.3				6,708,452
Consumer, Non-cyclical			2.9				4,637,020
Energy			17.4				27,360,069
Financial			5.3				8,275,470
Funds			0.2				313,029
Government			55.8				87,852,157
Industrial			0.7				1,068,996
Utilities			8.4				13,276,424
			100.0	%		$	157,407,788

 

The summary of inputs used to value the Fund’s investments as of December 31, 2013 is as follows:

 

							Level 2					Level 3
		Level 1					Significant					Significant
		Quoted					Observable					Unobservable
		Prices					Inputs					Inputs					Value
Corporate Bonds*			$	—				$	69,242,602				$	—				$	69,242,602
Foreign Government Obligations*				—					87,852,157					—					87,852,157
Money Market Fund				313,029					—					—					313,029
Total			$	313,029				$	157,094,759				$	—				$	157,407,788
Other Financial Instruments
Forward Foreign Currency Contracts			$	—				$	20,713				$	—				$	20,713

 

* See Schedule of Investments for security type and geographic country breakouts.

 

See Notes to Financial Statements

66

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VAN ECK FUNDS

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2013

 

		CM Commodity					Emerging					Global Hard
		Index Fund (a)					Markets Fund					Assets Fund
Assets:
Investments, at value (1)			$	250,388,763				$	202,029,470				$	4,140,799,464
Total return swap contracts, at value				311,959					—					—
Unrealized appreciation on forward foreign currency contracts				—					—					—
Cash				—					1,129					—
Cash denominated in foreign currency, at value (2)				—					2,476,523					15,655,737
Deposits with broker for securities sold short and options written				—					—					—
Receivables:
Investments sold				—					333,191					—
Shares of beneficial interest sold				6,284,014					2,292,438					15,334,770
Due from Adviser				—					—					—
Dividends and interest				316					42,389					2,364,610
Foreign tax reclaim				—					—					—
Prepaid expenses				3,655					58,486					156,073
Other assets				—					1,989					2,447
Total assets				256,988,707					207,235,615					4,174,313,101
Liabilities:
Securities sold short
Unaffiliated issuers (3)				—					—					—
Affiliated issuers (4)				—					—					—
Written options, at value (5)				—					—					—
Unrealized depreciation on forward foreign currency contracts				—					1,753					—
Payables:
Dividends on securities sold short				—					—					—
Investments purchased				—					894,789					25,758,259
Line of credit				—					—					—
Shares of beneficial interest redeemed				1,309,176					347,425					8,070,817
Due to Adviser				18,149					95,693					3,429,513
Due to custodian				—					—					—
Due to Distributor				14,427					48,266					498,716
Deferred Trustee fees				33,798					25,505					947,081
Accrued expenses				162,446					366,001					1,669,400
Total liabilities				1,537,996					1,779,432					40,373,786
NET ASSETS			$	255,450,711				$	205,456,183				$	4,133,939,315
Class A Shares:
Net Assets			$	69,026,329				$	133,437,801				$	1,025,779,055
Shares of beneficial interest outstanding				9,089,962					9,307,084					21,231,946
Net asset value and redemption price per share				$7.59					$14.34					$48.31
Maximum offering price per share (Net asset value per share ÷ 94.25%)				$8.05					$15.21					$51.26
Class C Shares:
Net Assets								$	25,259,460				$	337,441,247
Shares of beneficial interest outstanding									1,900,545					7,848,617
(Redemption may be subject to a contingent deferred sales charge within the first year of ownership)									$13.29					$42.99
Class I Shares:
Net Assets			$	130,176,321				$	10,592,634				$	2,340,890,185
Shares of beneficial interest outstanding				16,977,737					711,689					46,919,436
Net asset value, offering and redemption price per share				$7.67					$14.88					$49.89
Class Y Shares:
Net Assets			$	56,248,061				$	36,166,288				$	429,828,828
Shares of beneficial interest outstanding				7,346,680					2,514,388					8,818,188
Net asset value, offering and redemption price per share				$7.66					$14.38					$48.74
Net Assets consist of:
Aggregate paid in capital			$	256,545,770				$	201,262,568				$	3,512,750,102
Net unrealized appreciation (depreciation)				320,089					25,327,189					712,705,679
Undistributed (accumulated) net investment income (loss)				(1,415,148	)				(936,681	)				(862,903	)
Accumulated net realized gain (loss)				—					(20,196,893	)				(90,653,563	)
			$	255,450,711				$	205,456,183				$	4,133,939,315
(1) Cost of Investments			$	250,374,448				$	176,677,833				$	3,428,393,903
(2) Cost of cash denominated in foreign currency			$	—				$	2,500,878				$	15,355,620
(3) Proceeds for securities sold short - Unaffiliated issuers			$	—				$	—				$	—
(4) Proceeds for securities sold short - Affiliated issuers			$	—				$	—				$	—
(5) Premiums received for written options			$	—				$	—				$	—

 

 

(a)	Represents Consolidated Statement of Assets and Liabilities.

 

See Notes to Financial Statements

68

 

 

 

 

																Unconstrained
	International										Multi-Manager					Emerging
	Investors Gold					Long/Short					Alternatives					Markets Bond
	Fund (a)					Equity Fund					Fund					Fund
		$	593,277,652				$	1,019,835				$	39,335,171				$	157,407,788
			—					—					—					—
			—					—					—					20,713
			—					—					—					434,491
			32					—					—					3,108,389
			—					58,230					5,788,306					—
			13,823,445					20,576					829,357					—
			1,624,720					18,997					57,460					420,740
			—					29,121					—					—
			376,677					—					219,621					3,916,045
			—					—					—					79,121
			—					—					210					69,381
			—					—					5					—
			609,102,526					1,146,759					46,230,130					165,456,668
			—					55,310					6,824,108					—
			—					—					1,491,104					—
			—					—					48,217					—
			—					—					—					—
			—					190					4,144					—
			—					16,343					315,702					2,771,226
			587,126					—					—					—
			6,566,318					—					36,646					231,868
			438,156					—					24,125					64,947
			—					—					71,433					—
			129,739					13					4,031					11,885
			317,077					—					14,385					13,970
			982,538					29,487					278,098					81,547
			9,020,954					101,343					9,111,993					3,175,443
		$	600,081,572				$	1,045,416				$	37,118,137				$	162,281,225
		$	339,483,087				$	121,803				$	17,045,959				$	35,983,292
			39,855,568					13,369					1,821,723					4,208,382
			$8.52					$9.11					$9.36					$8.55
			$9.04					$9.67					$9.93					$9.07
		$	65,978,830									$	680,949				$	5,254,046
			8,501,898										73,645					621,562
			$7.76										$9.25					$8.45
		$	160,523,791				$	820,944				$	15,984,839				$	112,436,512
			15,227,843					90,097					1,681,039					13,105,300
			$10.54					$9.11					$9.51					$8.58
		$	34,095,864				$	102,669				$	3,406,390				$	8,607,375
			3,975,374					11,268					358,749					1,004,349
			$8.58					$9.11					$9.50					$8.57
		$	940,635,196				$	1,019,276				$	34,663,688				$	171,280,586
			(79,121,857	)				23,635					2,884,596					(261,552	)
			(79,687,241	)				1,731					(21,230	)				(1,257,462	)
			(181,744,526	)				774					(408,917	)				(7,480,347	)
		$	600,081,572				$	1,045,416				$	37,118,137				$	162,281,225
		$	672,399,960				$	996,655				$	37,205,802				$	157,657,944
		$	32				$	—				$	—				$	3,116,325
		$	—				$	55,765				$	6,674,612				$	—
		$	—				$	—				$	2,433,305				$	—
		$	—				$	—				$	69,349				$	—

 

See Notes to Financial Statements

69

VAN ECK FUNDS

STATEMENTS OF OPERATIONS

For the Year Ended December 31, 2013

 

		CM Commodity					Emerging					Global Hard
		Index Fund (a)					Markets Fund					Assets Fund
Income:
Dividends - unaffiliated issuers			$	2,517				$	2,986,340				$	56,395,963
Dividends - affiliated issuers				—					—					—
Interest				154,159					—					—
Foreign taxes withheld				—					(156,561	)				(612,035	)
Total income				156,676					2,829,779					55,783,928
Expenses:
Management fees				1,459,003					1,222,818					38,806,667
Dividends on securities sold short				—					—					—
Distribution fees - Class A				171,279					263,619					2,769,709
Distribution fees - Class C				—					226,463					3,706,038
Transfer agent fees - Class A				105,640					140,313					1,945,702
Transfer agent fees - Class C				—					60,049					745,201
Transfer agent fees - Class I				24,839					16,856					161,936
Transfer agent fees - Class Y				64,118					56,258					625,667
Administration fees				—					407,606					—
Custodian fees				29,579					215,579					327,729
Professional fees				63,124					62,250					521,280
Registration fees - Class A				42,716					42,394					54,991
Registration fees - Class C				—					34,594					40,671
Registration fees - Class I				39,810					25,435					82,324
Registration fees - Class Y				69,933					24,874					31,985
Reports to shareholders				25,195					27,378					429,395
Insurance				12,390					10,881					360,116
Trustees’ fees and expenses				30,172					20,230					512,555
Interest				—					1,270					—
Interest on securities sold short				—					—					—
Other				30,406					4,457					108,758
Total expenses				2,168,204					2,863,324					51,230,724
Waiver of management fees				(665,744	)				(73,705	)				(1,744,323	)
Expenses assumed by the Adviser				—					—					—
Net expenses				1,502,460					2,789,619					49,486,401
Net investment income (loss)				(1,345,784	)				40,160					6,297,527
Net realized gain (loss) on:
Investments sold - unaffiliated issuers (b)				368					13,542,090					35,909,203
Investments sold - affiliated issuers				—					—					—
Capital gain distributions received from other investment companies				—					—					—
Net increase from payments from Adviser (See Note 3)				24,470					—					—
Forward foreign currency contracts, foreign currency transactions and foreign denominated assets and liabilities				—					(385,011	)				476,540
Swap contracts				(14,373,386	)				—					—
Options purchased				—					—					—
Written options				—					—					—
Securities sold short - unaffiliated issuers				—					—					—
Securities sold short - affiliated issuers				—					—					—
Futures contracts				—					—					—
Net realized gain (loss)				(14,348,548	)				13,157,079					36,385,743
Change in net unrealized appreciation (depreciation) on:
Investments, options purchased and written options (c)				(33,368	)				3,631,304					367,776,194
Investments - affiliated issuers				—					—					—
Forward foreign currency contracts, foreign currency transactions and foreign denominated assets and liabilities				—					(70,080	)				304,971
Securities sold short - unaffiliated issuers				—					—					—
Securities sold short - affiliated issuers				—					—					—
Swap contracts				721,187					—					—
Change in net unrealized appreciation (depreciation)				687,819					3,561,224					368,081,165
Net Increase (Decrease) in Net Assets Resulting from Operations			$	(15,006,513	)			$	16,758,463				$	410,764,435

 

 

(a)	Represents Consolidated Statement of Operations.
(b)	Net of foreign taxes of $160,105, $2,543 and $3,822 for the Emerging Markets Fund, the Multi-Manager Alternatives Fund and the Unconstrained Emerging Markets Bond Fund, respectively.)
(c)	Net of foreign taxes of $158,506 and $7,343 for the Emerging Markets Fund and the Multi-Manager Alternatives Fund, respectively.
(d)	For the period December 12, 2013 (commencement of operations) through December 31, 2013.

 

See Notes to Financial Statements

70

 

 

 

 

																Unconstrained
	International										Multi-Manager					Emerging
	Investors Gold					Long/Short					Alternatives					Markets Bond
	Fund (a)					Equity Fund (d)					Fund					Fund
		$	8,407,781				$	2,288				$	325,552				$	2,143
			—					—					1,748					—
			—					4					740,041					10,952,769
			(858,466	)				—					(5,249	)				(40,955	)
			7,549,315					2,292					1,062,092					10,913,957
			5,725,522					325					709,926					1,161,070
			—					190					135,876					—
			1,241,296					13					62,283					68,858
			1,068,039					—					3,075					50,223
			849,886					304					46,238					37,497
			249,833					—					14,472					16,566
			19,491					95					14,350					24,077
			163,440					95					25,836					15,727
			2,018,005					—					—					—
			106,427					304					164,418					142,473
			207,225					28,139					69,446					66,711
			36,518					—					23,470					17,669
			35,015					—					22,566					14,377
			49,450					—					21,475					26,705
			24,917					—					30,271					17,534
			154,661					493					26,094					18,894
			100,945					—					6,458					4,042
			140,969					57					16,023					14,267
			—					—					—					—
			—					—					47,413					—
			87,724					—					15,007					6,562
			12,279,363					30,015					1,454,697					1,703,252
			(359,319	)				(325	)				(247,467	)				(184,675	)
			—					(29,121	)				—					—
			11,920,044					569					1,207,230					1,518,577
			(4,370,729	)				1,723					(145,138	)				9,395,380
			(137,326,516	)				762					3,823,607					(14,516,431	)
			—					—					147,119					—
			—					—					36,003					—
			—					—					—					—
			(80,673	)				—					(46,599	)				(2,353,231	)
			—					—					(1,862	)				—
			—					—					(164,952	)				—
			—					—					295,183					—
			—					20					(2,315,038	)				—
			—					—					(20,033	)				—
			—					—					(72,094	)				—
			(137,407,189	)				782					1,681,334					(16,869,662	)
			(460,508,198	)				23,180					(484,244	)				(1,690,805	)
			—					—					(125,445	)				—
			(112	)				—					15,737					6,517
			—					455					280,549					—
			—					—					797,139					—
			—					—					4,160					—
			(460,508,310	)				23,635					487,896					(1,684,288	)
		$	(602,286,228	)			$	26,140				$	2,024,092				$	(9,158,570	)

 

See Notes to Financial Statements

71

VAN ECK FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

 

		CM Commodity Index Fund (a)										Emerging Markets Fund
		Year Ended					Year Ended					Year Ended					Year Ended
		December 31,					December 31,					December 31,					December 31,
		2013					2012					2013					2012
Operations:
Net investment income (loss)			$	(1,345,784	)			$	(737,650	)			$	40,160				$	(131,995	)
Net realized gain (loss)				(14,373,018	)				594,309					13,157,079					(2,135,065	)
Net increase from payments from Adviser (See Note 3)				24,470					519,638					—					—
Net change in unrealized appreciation (depreciation)				687,819					(603,585	)				3,561,224					28,737,619
Net increase (decrease) in net assets resulting from operations				(15,006,513	)				(227,288	)				16,758,463					26,470,559
Dividends and Distributions to shareholders from:
Net investment income
Class A Shares				(177,185	)				—					(578,979	)				—
Class C Shares				—					—					(117,414	)				—
Class I Shares				(319,100	)				—					(44,588	)				—
Class Y Shares				(148,461	)				—					(152,910	)				—
				(644,746	)				—					(893,891	)				—
Net realized gains
Class A Shares				—					—					—					—
Class C Shares				—					—					—					—
Class I Shares				—					—					—					—
Class Y Shares				—					—					—					—
				—					—					—					—
Total dividends and distributions				(644,746	)				—					(893,891	)				—
Share transactions:
Proceeds from sale of shares
Class A Shares				81,997,406					45,364,807					89,451,296					50,014,465
Class C Shares				—					—					11,376,868					5,368,297
Class I Shares				85,575,005					46,615,103					9,847,083					59,359
Class Y Shares				61,152,838					28,326,126					34,964,939					15,548,967
				228,725,249					120,306,036					145,640,186					70,991,088
Reinvestment of dividends and distributions
Class A Shares				144,345					—					475,361					—
Class C Shares				—					—					77,521					—
Class I Shares				318,578					—					44,588					—
Class Y Shares				42,339					—					70,092					—
				505,262					—					667,562					—
Cost of shares redeemed
Class A Shares				(60,361,938	)				(27,970,965	)				(57,166,643	)				(28,366,320	)
Class C Shares				—					—					(8,283,624	)				(6,403,953	)
Class I Shares				(7,726,358	)				(574,902	)				(4,550,770	)				(678	)
Class Y Shares				(30,296,636	)				(6,000,477	)				(25,024,877	)				(7,253,918	)
				(98,384,932	)				(34,546,344	)				(95,025,914	)				(42,024,869	)
Net increase (decrease) in net assets resulting from share transactions				130,845,579					85,759,692					51,281,834					28,966,219
Total increase (decrease) in net assets				115,194,320					85,532,404					67,146,406					55,436,778
Net Assets:
Beginning of year				140,256,391					54,723,987					138,309,777					82,872,999
End of year #			$	255,450,711				$	140,256,391				$	205,456,183				$	138,309,777
# Including accumulated net investment income (loss)			$	(1,415,148	)			$	(756,106	)			$	(936,681	)			$	43,862

 

 

*	Commencement of operations
(a)	Represents Consolidated Statement of Changes in Net Assets.

 

See Notes to Financial Statements

72

 

 

 

 

Global Hard Assets Fund										International Investors Gold Fund (a)										Long/Short Equity Fund					Multi-Manager Alternatives Fund
																				Period Ended
																				December 12,
Year Ended					Year Ended					Year Ended					Year Ended					2013* through					Year Ended					Year Ended
December 31,					December 31,					December 31,					December 31,					December 31,					December 31,					December 31,
2013					2012					2013					2012					2013					2013					2012
	$	6,297,527				$	18,352,819				$	(4,370,729	)			$	(7,962,304	)			$	1,723				$	(145,138	)			$	(880,775	)
		36,385,743					(48,694,303	)				(137,407,189	)				(28,371,536	)				782					1,681,334					556,935
		—					—					—					—					—					—					—
		368,081,165					128,313,576					(460,508,310	)				(105,411,356	)				23,635					487,896					1,159,453
		410,764,435					97,972,092					(602,286,228	)				(141,745,196	)				26,140					2,024,092					835,613
		(321,328	)				(6,819,370	)				(2,652,441	)				—					—					—					(54,446	)
		(118,083	)				(2,599,228	)				(559,663	)				—					—					—					(610	)
		(700,703	)				(10,444,813	)				(1,004,903	)				—					—					—					(21,656	)
		(133,305	)				(2,140,886	)				(306,785	)				—					—					—					(16,993	)
		(1,273,419	)				(22,004,297	)				(4,523,792	)				—					—					—					(93,705	)
		—					(14,692,069	)				—					(19,967,893	)				—					(380,133	)				—
		—					(5,600,181	)				—					(4,703,151	)				—					(14,403	)				—
		—					(22,503,052	)				—					(3,259,518	)				—					(354,956	)				—
		—					(4,612,519	)				—					(2,323,855	)				—					(73,820	)				—
		—					(47,407,821	)				—					(30,254,417	)				—					(823,312	)				—
		(1,273,419	)				(69,412,118	)				(4,523,792	)				(30,254,417	)				—					(823,312	)				(93,705	)
		214,485,786					333,813,481					128,533,098					215,049,553					119,156					8,243,632					14,185,314
		26,596,480					43,715,645					19,375,655					38,036,081					—					459,148					414,884
		671,036,986					527,209,133					145,767,779					83,366,687					800,060					5,530,438					3,499,724
		193,753,756					292,139,007					51,239,316					70,183,900					100,060					7,252,756					11,487,177
		1,105,873,008					1,196,877,266					344,915,848					406,636,221					1,019,276					21,485,974					29,587,099
		249,586					17,531,323					2,248,165					16,890,667					—					340,181					50,286
		85,413					5,957,784					432,764					3,496,868					—					14,283					603
		614,560					29,943,307					980,829					3,164,701					—					211,377					9,338
		83,579					4,146,811					177,220					1,368,352					—					73,701					12,757
		1,033,138					57,579,225					3,838,978					24,920,588					—					639,542					72,984
		(514,793,575	)				(815,985,968	)				(232,272,588	)				(290,881,867	)				—					(27,944,654	)				(19,987,647	)
		(139,837,863	)				(144,746,914	)				(47,132,502	)				(61,141,831	)				—					(211,429	)				(25	)
		(503,373,195	)				(278,293,333	)				(45,026,793	)				(14,150,959	)				—					(1,371,606	)				(3,241,050	)
		(193,756,008	)				(175,673,747	)				(66,816,234	)				(42,961,299	)				—					(15,408,245	)				(6,597,149	)
		(1,351,760,641	)				(1,414,699,962	)				(391,248,117	)				(409,135,956	)				—					(44,935,934	)				(29,825,871	)
		(244,854,495	)				(160,243,471	)				(42,493,291	)				22,420,853					1,019,276					(22,810,418	)				(165,788	)
		164,636,521					(131,683,497	)				(649,303,311	)				(149,578,760	)				1,045,416					(21,609,638	)				576,120
		3,969,302,794					4,100,986,291					1,249,384,883					1,398,963,643					—					58,727,775					58,151,655
	$	4,133,939,315				$	3,969,302,794				$	600,081,572				$	1,249,384,883				$	1,045,416				$	37,118,137				$	58,727,775
	$	(862,903	)			$	(42,981,051	)			$	(79,687,241	)			$	(108,627,443	)			$	1,731				$	(21,230	)			$	(853,491	)

 

See Notes to Financial Statements

73

VAN ECK FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

(continued)

 

		Unconstrained Emerging Markets Bond Fund
							Period Ended July 9,
		Year Ended					2012* through
		December 31, 2013					December 31, 2012
Operations:
Net investment income			$	9,395,380				$	1,462,939
Net realized gain (loss)				(16,869,662	)				1,893,292
Net change in unrealized appreciation (depreciation)				(1,684,288	)				1,422,736
Net increase (decrease) in net assets resulting from operations				(9,158,570	)				4,778,967
Dividends and Distributions to shareholders from:
Net investment income
Class A Shares				(305,819	)				(44,484	)
Class C Shares				(110,379	)				(14,554	)
Class I Shares				(1,936,903	)				(1,395,483	)
Class Y Shares				(98,125	)				(23,228	)
				(2,451,226	)				(1,477,749	)
Net realized gains
Class A Shares				—					(23,162	)
Class C Shares				—					(3,313	)
Class I Shares				—					(661,267	)
Class Y Shares				—					(5,126	)
				—					(692,868	)
Return of capital
Class A Shares				(1,483,099	)				—
Class C Shares				(216,552	)				—
Class I Shares				(4,634,219	)				—
Class Y Shares				(354,764	)				—
				(6,688,634	)				—
Total dividends and distributions				(9,139,860	)				(2,170,617	)
Share transactions:
Proceeds from sale of shares
Class A Shares				67,260,955					5,431,195
Class C Shares				7,922,875					2,444,937
Class I Shares				73,323,017					92,260,247
Class Y Shares				15,834,703					3,764,617
				164,341,550					103,900,996
Reinvestment of dividends and distributions
Class A Shares				1,275,908					49,192
Class C Shares				222,450					15,768
Class I Shares				1,737,567					396,116
Class Y Shares				219,443					22,937
				3,455,368					484,013
Cost of shares redeemed
Class A Shares				(31,668,406	)				(2,001,225	)
Class C Shares				(2,600,820	)				(2,014,271	)
Class I Shares				(41,859,375	)				(3,717,358	)
Class Y Shares				(7,275,901	)				(3,073,266	)
				(83,404,502	)				(10,806,120	)
Net increase in net assets resulting from share transactions				84,392,416					93,578,889
Total increase in net assets				66,093,986					96,187,239
Net Assets:
Beginning of year				96,187,239					—
End of year #			$	162,281,225				$	96,187,239
# Including undistributed net investment income (loss)			$	(1,257,462	)			$	6,058

 

 

*	Commencement of operations

 

See Notes to Financial Statements

74

CM COMMODITY INDEX FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Class A
		Year Ended December 31,
		2013				2012				2011(a)
Net asset value, beginning of period			$8.26				$8.16				$8.88
Income from investment operations:
Net investment loss			(0.05	)			(0.06	)			(0.08	)(c)
Net realized and unrealized gain (loss) on investments			(0.60	)			0.12				(0.68	)
Payment from Adviser			—	(d)(e)			0.04	(f)			0.04	(g)
Total from investment operations			(0.65	)			0.10				(0.72	)
Less distributions
Net investment income			(0.02	)			—				—
Net asset value, end of period			$7.59				$8.26				$8.16
Total return (b)			(7.87	)%(d)			1.23	%(f)			(8.11	)%(g)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$69,026				$53,628				$36,031
Ratio of gross expenses to average net assets			1.31	%			1.39	%			1.66	%
Ratio of net expenses to average net assets			0.95	%			0.95	%			0.96	%
Ratio of net expenses, excluding interest expense, to average net assets			0.95	%			0.95	%			0.95	%
Ratio of net investment loss to average net assets			(0.87	)%			(0.86	)%			(0.91	)%
Portfolio turnover rate			0	%			0	%			0	%
		Class I
		Year Ended December 31,
		2013				2012				2011(a)
Net asset value, beginning of year			$8.32				$8.19				$8.88
Income from investment operations:
Net investment loss			—				(0.04	)			(0.05	)(c)
Net realized and unrealized gain (loss) on investments			(0.63	)			0.13				(0.68	)
Payment from Adviser			—	(d)(e)			0.04	(f)			0.04	(g)
Total from investment operations			(0.63	)			0.13				(0.69	)
Less distributions
Net investment income			(0.02	)			—				—
Net asset value, end of year			$7.67				$8.32				$8.19
Total return (b)			(7.57	)%(d)			1.59	%(f)			(7.77	)%(g)
Ratios/Supplemental Data
Net assets, end of year (000’s)		$130,176			$56,868				$11,245
Ratio of gross expenses to average net assets			0.95	%			1.01	%			1.71	%
Ratio of net expenses to average net assets			0.65	%			0.65	%			0.65	%
Ratio of net expenses, excluding interest expense, to average net assets			0.65	%			0.65	%			0.65	%
Ratio of net investment loss to average net assets			(0.57	)%			(0.56	)%			(0.61	)%
Portfolio turnover rate			0	%			0	%			0	%

 

 

 

(a)	Inception date for the Fund was December 31, 2010.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Calculated based upon average shares outstanding.
(d)	For the year ended December 31, 2013, 0.01% of the Class A and Class I total return, representing $0.001 per share for Class A and Class I, consisted of a payment by the Adviser. (See Note 3).
(e)	Amount represents less than $0.005 per share.
(f)	For the year ended December 31, 2012, 0.49% of the Class A and Class I total return, representing $0.04 per share for Class A and Class I, consisted of a payment by the Adviser. (See Note 3).
(g)	For the year ended December 31, 2011, 0.49% of the Class A and Class I total return, representing $0.04 per share for Class A and Class I, consisted of a payment by the Adviser. (See Note 3).

 

See Notes to Financial Statements

75

CM COMMODITY INDEX FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Class Y
		Year Ended December 31,
		2013				2012				2011(a)
Net asset value, beginning of period			$8.31				$8.18				$8.88
Income from investment operations:
Net investment loss			(0.03	)			(0.03	)			(0.06	)(c)
Net realized and unrealized gain (loss) on investments			(0.60	)			0.12				(0.69	)
Payment from Adviser			—	(d)(e)			0.04	(f)			0.05	(g)
Total from investment operations			(0.63	)			0.13				(0.70	)
Less dividends and distributions from:
Net investment income			(0.02	)			—				—
Net asset value, end of period			$7.66				$8.31				$8.18
Total return (b)			(7.58	)%(d)			1.59	%(f)			(7.88	)%(g)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$56,248			$29,760				$7,448
Ratio of gross expenses to average net assets			1.07	%			1.30	%			1.56	%
Ratio of net expenses to average net assets			0.70	%			0.70	%			0.70	%
Ratio of net expenses, excluding interest expense, to average net assets			0.70	%			0.70	%			0.70	%
Ratio of net investment loss to average net assets			(0.62	)%			(0.60	)%			(0.66	)%
Portfolio turnover rate			0	%			0	%			0	%

 

 

 

(a)	Inception date for the fund was December 31, 2010.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Calculated based upon average shares outstanding.
(d)	For the year ended December 31, 2013, 0.01% of the Class Y total return, representing $0.001 per share, consisted of a payment by the Adviser. (See Note 3).
(e)	Amount represents less than $0.005 per share.
(f)	For the year ended December 31, 2012, 0.49% of the Class Y total return, representing $0.04 per share, consisted of a payment by the Adviser. (See Note 3).
(g)	For the year ended December 31, 2011, 0.61% of the Class Y total return, representing $0.05 per share, consisted of a payment by the Adviser.(See Note 3).

 

See Notes to Financial Statements

76

EMERGING MARKETS FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each year:

 

		Class A
		Year Ended December 31,
		2013				2012				2011				2010				2009
Net asset value, beginning of year			$12.94				$9.92				$13.69				$10.71				$4.86
Income from investment operations:
Net investment income (loss)			0.01				0.01				(0.01	)(b)			(0.04	)			(0.02	)
Net realized and unrealized gain (loss) on investments			1.45				3.01				(3.63	)			3.06				5.81
Payment from Adviser			—				—				—				—				0.06	(c)
Total from investment operations			1.46				3.02				(3.64	)			3.02				5.85
Less dividends and distributions from:
Net investment income			(0.06	)			—				(0.13	)			(0.04	)			—
Net realized gains			—				—				—				—				—
Total dividends and distributions			(0.06	)			—				(0.13	)			(0.04	)			—
Net asset value, end of year			$14.34				$12.94				$  9.92				$13.69				$10.71
Total return (a)			11.31	%			30.44	%			(26.58	)%			28.17	%			120.37	%(c)
Ratios/Supplemental Data
Net assets, end of year (000’s)		$133,438			$90,833				$52,253				$108,019				$91,059
Ratio of gross expenses to average net assets			1.63	%			1.67	%			1.76	%			1.74	%			1.81	%
Ratio of net expenses to average net assets			1.63	%			1.67	%			1.76	%			1.74	%			1.81	%
Ratio of net expenses, excluding interest expense, to average net assets			1.63	%			1.67	%			1.76	%			1.74	%			1.81	%
Ratio of net investment income (loss) to average net assets			0.13	%			(0.04	)%			(0.11	)%			(0.31	)%			(0.26	)%
Portfolio turnover rate			81	%			92	%			94	%			110	%			63	%
		Class C
		Year Ended December 31,
		2013				2012				2011				2010				2009
Net asset value, beginning of year			$12.11				$9.36				$13.01				$10.26				$4.68
Income from investment operations:
Net investment loss			(0.09	)			(0.09	)			(0.10	)(b)			(0.10	)			(0.06	)
Net realized and unrealized gain (loss) on investments			1.33				2.84				(3.42	)			2.89				5.58
Payment from Adviser			—				—				—				—				0.06	(c)
Total from investment operations			1.24				2.75				(3.52	)			2.79				5.58
Less dividends and distributions from:
Net investment income			(0.06	)			—				(0.13	)			(0.04	)			—
Net realized gains			—				—				—				—				—
Total dividends and distributions			(0.06	)			—				(0.13	)			(0.04	)			—
Net asset value, end of year			$13.29				$12.11				$  9.36				$13.01				$10.26
Total return (a)			10.27	%			29.38	%			(27.05	)%			27.16	%			119.23	%(c)
Ratios/Supplemental Data
Net assets, end of year (000’s)	$25,259				$20,127				$16,611				$27,859				$19,487
Ratio of gross expenses to average net assets			2.63	%			2.61	%			2.70	%			2.61	%			2.97	%
Ratio of net expenses to average net assets			2.50	%			2.50	%			2.50	%			2.48	%			2.49	%
Ratio of net expenses, excluding interest expense, to average net assets			2.50	%			2.50	%			2.50	%			2.48	%			2.49	%
Ratio of net investment loss to average net assets			(0.76	)%			(0.78	)%			(0.86	)%			(1.07	)%			(0.92	)%
Portfolio turnover rate			81	%			92	%			94	%			110	%			63	%

 

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of year, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the year. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Calculated based upon average shares outstanding.
(c)	For the year ended December 31, 2009, 0.91% of the Class A and 0.94% of Class C total return, representing $0.06 per share for Class A and Class C, consisted of a payment by the Adviser in connection with past market timing activities and a reimbursement for an investment loss.

 

See Notes to Financial Statements

77

EMERGING MARKETS FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Class I
		Year Ended December 31,
		2013				2012				2011				2010				2009
Net asset value, beginning of year			$13.38				$10.21				$14.01				$10.91				$4.92
Income from investment operations:
Net investment income			0.04				0.05				0.05	(c)			0.02				0.06
Net realized and unrealized gain (loss) on investments			1.52				3.12				(3.72	)			3.12				5.86
Payment from Adviser			—				—				—				—				0.07	(d)
Total from investment operations			1.56				3.17				(3.67	)			3.14				5.99
Less dividends and distributions from:
Net investment income			(0.06	)			—				(0.13	)			(0.04	)			—
Net realized gains			—				—				—				—				—
Total dividends and distributions			(0.06	)			—				(0.13	)			(0.04	)			—
Net asset value, end of year			$14.88				$13.38				$10.21				$14.01				$10.91
Total return (b)			11.69	%			31.05	%			(26.19	)%			28.75	%			121.75	%(d)
Ratios/Supplemental Data
Net assets, end of year (000’s)	$10,593				$4,025				$3,019				$4,079				$3,097
Ratio of gross expenses to average net assets			1.77	%			2.31	%			2.22	%			2.23	%			2.54	%
Ratio of net expenses to average net assets			1.18	%			1.25	%			1.25	%			1.25	%			1.24	%
Ratio of net expenses, excluding interest expense, to average net assets			1.18	%			1.25	%			1.25	%			1.25	%			1.24	%
Ratio of net investment income to average net assets			0.36	%			0.43	%			0.38	%			0.18	%			0.56	%
Portfolio turnover rate			81	%			92	%			94	%			110	%			63	%

 

		Class Y
		Year Ended December 31,
		2013				2012				2011				2010(a)
Net asset value, beginning of period			$12.97				$9.92				$13.68				$11.30
Income from investment operations:
Net investment income (loss)			0.02				0.04				(0.06	)(c)			(0.03	)
Net realized and unrealized gain (loss) on investments			1.45				3.01				(3.57	)			2.45
Total from investment operations			1.47				3.05				(3.63	)			2.42
Less distributions
Net investment income			(0.06	)			—				(0.13	)			(0.04	)
Net asset value, end of period			$14.38				$12.97				$9.92				$13.68
Total return (b)			11.36	%			30.75	%			(26.53	)%			21.48	%(e)
Ratios/Supplemental Data
Net assets, end of period (000’s)	$36,166				$23,325				$10,990				$5,920
Ratio of gross expenses to average net assets			1.50	%			1.51	%			2.08	%			1.73	%(f)
Ratio of net expenses to average net assets			1.50	%			1.51	%			1.70	%			1.70	%(f)
Ratio of net expenses, excluding interest expense, to average net assets			1.50	%			1.51	%			1.70	%			1.70	%(f)
Ratio of net investment income (loss) to average net assets			0.18	%			0.14	%			(0.54	)%			(0.77	)%(f)
Portfolio turnover rate			81	%			92	%			94	%			110	%(e)

 

 

 

(a)	For the period April 30, 2010 (commencement of operations) through December 31, 2010.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Calculated based upon average shares outstanding.
(d)	For the year ended December 31, 2009, 1.11% of the Class I total return, representing $0.07 per share, consisted of a payment by the Adviser in connection with past market timing activities and a reimbursement for an investment loss.
(e)	Not annualized.
(f)	Annualized.

 

See Notes to Financial Statements

78

GLOBAL HARD ASSETS FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each year:

 

		Class A
		Year Ended December 31,
		2013				2012				2011				2010				2009
Net asset value, beginning of year			$43.64				$43.34				$52.33				$40.92				$26.84
Income from investment operations:
Net investment income (loss)			(0.15	)			0.05				(0.18	)(b)			(0.20	)(b)			(0.15	)
Net realized and unrealized gain (loss) on investments			4.84				1.03				(8.52	)			11.83				14.22
Payment from Adviser			—				—				—				—				0.01	(c)
Total from investment operations			4.69				1.08				(8.70	)			11.63				14.08
Less dividends and distributions from:
Net investment income			(0.02	)			(0.25	)			(0.05	)			(0.22	)			—
Net realized gains			—				(0.53	)			(0.24	)			—				—
Total dividends and distributions			(0.02	)			(0.78	)			(0.29	)			(0.22	)			—
Net asset value, end of year			$48.31				$43.64				$43.34				$52.33				$40.92
Total return (a)			10.74	%			2.49	%			(16.63	)%			28.43	%			52.46	%(c)
Ratios/Supplemental Data
Net assets, end of year (000’s)	$1,025,779				$1,219,828				$1,673,303				$2,085,492				$1,240,769
Ratio of gross expenses to average net assets			1.45	%			1.45	%			1.37	%			1.43	%			1.49	%
Ratio of net expenses to average net assets			1.38	%			1.38	%			1.37	%			1.40	%			1.46	%
Ratio of net expenses, excluding interest expense, to average net assets			1.38	%			1.38	%			1.37	%			1.40	%			1.46	%
Ratio of net investment income (loss) to average net assets			(0.00	)%			0.32	%			(0.36	)%			(0.47	)%			(0.62	)%
Portfolio turnover rate			33	%			27	%			40	%			66	%			86	%
		Class C
		Year Ended December 31,
		2013				2012				2011				2010				2009
Net asset value, beginning of year			$39.15				$39.29				$47.82				$37.70				$24.92
Income from investment operations:
Net investment loss			(0.56	)			(0.29	)			(0.51	)(b)			(0.48	)(b)			(0.34	)
Net realized and unrealized gain (loss) on investments			4.42				0.93				(7.73	)			10.82				13.11
Payment from Adviser			—				—				—				—				0.01	(c)
Total from investment operations			3.86				0.64				(8.24	)			10.34				12.78
Less dividends and distributions from:
Net investment income			(0.02	)			(0.25	)			(0.05	)			(0.22	)			—
Net realized gains			—				(0.53	)			(0.24	)			—				—
Total dividends and distributions			(0.02	)			(0.78	)			(0.29	)			(0.22	)			—
Net asset value, end of year			$42.99				$39.15				$39.29				$47.82				$37.70
Total return (a)			9.85	%			1.63	%			(17.23	)%			27.44	%			51.28	%(c)
Ratios/Supplemental Data
Net assets, end of year (000’s)	$337,441				$418,077				$515,433				$557,023				$358,114
Ratio of gross expenses to average net assets			2.23	%			2.21	%			2.12	%			2.16	%			2.30	%
Ratio of net expenses to average net assets			2.20	%			2.20	%			2.12	%			2.16	%			2.26	%
Ratio of net expenses, excluding interest expense, to average net assets			2.20	%			2.20	%			2.12	%			2.16	%			2.26	%
Ratio of net investment loss to average net assets			(0.82	)%			(0.48	)%			(1.10	)%			(1.23	)%			(1.42	)%
Portfolio turnover rate			33	%			27	%			40	%			66	%			86	%

 

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of year, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the year. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Calculated based upon average shares outstanding.
(c)	For the year ended December 31, 2009, 0.03% of the Class A and Class C total return, representing $0.01 per share for Class A and Class C, consisted of a payment by the Adviser in connection with past market timing activities.

 

See Notes to Financial Statements

79

GLOBAL HARD ASSETS FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Class I
		Year Ended December 31,
		2013				2012				2011				2010				2009
Net asset value, beginning of year			$44.89				$44.40				$53.40				$41.59				$27.14
Income from investment operations:
Net investment income (loss)			0.22				0.37				0.01	(c)			(0.02	)(c)			(0.04	)
Net realized and unrealized gain (loss) on investments			4.80				0.90				(8.72	)			12.05				14.48
Payment from Adviser			—				—				—				—				0.01	(d)
Total from investment operations			5.02				1.27				(8.71	)			12.03				14.45
Less dividends and distributions from:
Net investment income			(0.02	)			(0.25	)			(0.05	)			(0.22	)			—
Net realized gains			—				(0.53	)			(0.24	)			—				—
Total dividends and distributions			(0.02	)			(0.78	)			(0.29	)			(0.22	)			—
Net asset value, end of year			$49.89				$44.89				$44.40				$53.40				$41.59
Total return (b)			11.17	%			2.86	%			(16.31	)%			28.93	%			53.24	%(d)
Ratios/Supplemental Data
Net assets, end of year (000’s)	$2,340,890				$1,943,088				$1,637,440				$1,650,962				$639,887
Ratio of gross expenses to average net assets			1.03	%			1.02	%			1.01	%			1.05	%			1.10	%
Ratio of net expenses to average net assets			1.00	%			1.00	%			1.00	%			1.00	%			1.00	%
Ratio of net expenses, excluding interest expense, to average net assets			1.00	%			1.00	%			1.00	%			1.00	%			1.00	%
Ratio of net investment income (loss) to average net assets			0.39	%			0.76	%			0.02	%			(0.04	)%			(0.32	)%
Portfolio turnover rate			33	%			27	%			40	%			66	%			86	%

 

		Class Y
		Year Ended December 31,
		2013				2012				2011				2010(a)
Net asset value, beginning of period			$43.92				$43.50				$52.41				$43.69
Income from investment operations:
Net investment income (loss)			0.10				0.35				0.01	(c)			(0.03	)(c)
Net realized and unrealized gain (loss) on investments			4.74				0.85				(8.63	)			8.97
Total from investment operations			4.84				1.20				(8.62	)			8.94
Less dividends and distributions from:
Net investment income			(0.02	)			(0.25	)			(0.05	)			(0.22	)
Net realized gains			—				(0.53	)			(0.24	)			—
Total dividends and distributions			(0.02	)			(0.78	)			(0.29	)			(0.22	)
Net asset value, end of period			$48.74				$43.92				$43.50				$52.41
Total return (b)			11.01	%			2.76	%			(16.45	)%			20.47	%(e)
Ratios/Supplemental Data
Net assets, end of period (000’s)	$429,829				$388,310				$274,811				$61,210
Ratio of gross expenses to average net assets			1.19	%			1.16	%			1.17	%			1.10	%(f)
Ratio of net expenses to average net assets			1.13	%			1.13	%			1.13	%			1.10	%(f)
Ratio of net expenses, excluding interest expense, to average net assets			1.13	%			1.13	%			1.13	%			1.10	%(f)
Ratio of net investment income (loss) to average net assets			0.24	%			0.65	%			0.01	%			(0.10	)%(f)
Portfolio turnover rate			33	%			27	%			40	%			66	%(e)

 

 

 

(a)	For the period April 30, 2010 (commencement of operations) through December 31, 2010.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Calculated based upon average shares outstanding.
(d)	For the year ended December 31, 2009, 0.03% of the Class I total return, representing $0.01 per share, consisted of a payment by the Adviser in connection with past market timing activities.
(e)	Not annualized.
(f)	Annualized.

 

See Notes to Financial Statements

80

INTERNATIONAL INVESTORS GOLD FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each year:

 

		Class A
		Year Ended December 31,
		2013				2012				2011				2010				2009
Net asset value, beginning of year			$16.81				$19.08				$24.70				$18.92				$11.98
Income from investment operations:
Net investment loss			(0.06	)(b)			(0.10	)(b)			(0.16	)(b)			(0.22	)(b)			(0.07	)
Net realized and unrealized gain (loss) on investments			(8.16	)			(1.75	)			(5.15	)			9.78				7.58
Payment from Adviser			—				—				—				—				0.11	(c)
Total from investment operations			(8.22	)			(1.85	)			(5.31	)			9.56				7.62
Less dividends and distributions from:
Net investment income			(0.07	)			—				(0.31	)			(2.09	)			(0.68	)
Net realized gains			—				(0.42	)			—				(1.69	)			—
Total dividends and distributions			(0.07	)			(0.42	)			(0.31	)			(3.78	)			(0.68	)
Net asset value, end of year			$  8.52				$16.81				$19.08				$24.70				$18.92
Total return (a)			(48.91	)%			(9.61	)%			(21.52	)%			50.99	%			63.75	%(c)
Ratios/Supplemental Data
Net assets, end of year (000’s)	$339,483				$811,802				$988,039				$1,359,014				$799,296
Ratio of gross expenses to average net assets			1.46	%			1.29	%			1.20	%			1.25	%			1.43	%
Ratio of net expenses to average net assets			1.45	%			1.29	%			1.20	%			1.25	%			1.43	%
Ratio of net expenses, excluding interest expense, to average net assets			1.45	%			1.29	%			1.20	%			1.25	%			1.43	%
Ratio of net investment loss to average net assets			(0.54	)%			(0.52	)%			(0.68	)%			(0.98	)%			(1.10	)%
Portfolio turnover rate			40	%			30	%			24	%			33	%			19	%

 

		Class C
		Year Ended December 31,
		2013				2012				2011				2010				2009
Net asset value, beginning of year			$15.44				$17.71				$23.13				$18.01				$11.45
Income from investment operations:
Net investment loss			(0.14	)(b)			(0.22	)(b)			(0.31	)(b)			(0.36	)(b)			(0.04	)
Net realized and unrealized gain (loss) on investments			(7.47	)			(1.63	)			(4.80	)			9.26				7.08
Payment from Adviser			—				—				—				—				0.10	(c)
Total from investment operations			(7.61	)			(1.85	)			(5.11	)			8.90				7.14
Less dividends and distributions from:
Net investment income			(0.07	)			—				(0.31	)			(2.09	)			(0.58	)
Net realized gains			—				(0.42	)			—				(1.69	)			—
Total dividends and distributions			(0.07	)			(0.42	)			(0.31	)			(3.78	)			(0.58	)
Net asset value, end of year			$  7.76				$15.44				$17.71				$23.13				$18.01
Total return (a)			(49.29	)%			(10.36	)%			(22.11	)%			49.89	%			62.52	%(c)
Ratios/Supplemental Data
Net assets, end of year (000’s)	$65,979				$174,907				$221,214				$285,973				$131,609
Ratio of gross expenses to average net assets			2.30	%			2.09	%			1.96	%			1.95	%			2.31	%
Ratio of net expenses to average net assets			2.20	%			2.09	%			1.96	%			1.95	%			2.27	%
Ratio of net expenses, excluding interest expense, to average net assets			2.20	%			2.09	%			1.96	%			1.95	%			2.27	%
Ratio of net investment loss to average net assets			(1.29	)%			(1.33	)%			(1.43	)%			(1.68	)%			(1.94	)%
Portfolio turnover rate			40	%			30	%			24	%			33	%			19	%

 

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Calculated based upon average shares outstanding.
(c)	For the year ended December 31, 2009, 0.58% of the Class A and Class C total return, representing $0.11 for Class A and $0.10 for Class C per share, consisted of a payment by the Adviser in connection with past market timing activities and a reimbursement for an investment loss. Additionally , 1.49% of Class A and Class C total return resulted from settlement payments received from third parties by the Fund.

 

See Notes to Financial Statements

81

INTERNATIONAL INVESTORS GOLD FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Class I
		Year Ended December 31,
		2013				2012				2011				2010				2009
Net asset value, beginning of year			$20.67				$23.28				$29.97				$22.34				$14.05
Income from investment operations:
Net investment income (loss)			(0.01	)(b)			(0.04	)(b)			(0.10	)(b)			(0.20	)(b)			0.46
Net realized and unrealized gain (loss) on investments			(10.05	)			(2.15	)			(6.28	)			11.61				8.42
Payment from Adviser			—				—				—				—				0.14	(c)
Total from investment operations			(10.06	)			(2.19	)			(6.38	)			11.41				9.02
Less dividends and distributions from:
Net investment income			(0.07	)			—				(0.31	)			(2.09	)			(0.73	)
Net realized gains			—				(0.42	)			—				(1.69	)			—
Total dividends and distributions			(0.07	)			(0.42	)			(0.31	)			(3.78	)			(0.73	)
Net asset value, end of year			$10.54				$20.67				$23.28				$29.97				$22.34
Total return (a)			(48.67	)%			(9.34	)%			(21.30	)%			51.47	%			64.34	%(c)
Ratios/Supplemental Data
Net assets, end of year (000’s)	$160,524				$166,567				$111,604				$86,982				$6,125
Ratio of gross expenses to average net assets			1.08	%			0.96	%			0.91	%			1.01	%			3.11	%
Ratio of net expenses to average net assets			1.00	%			0.96	%			0.91	%			1.00	%			1.00	%
Ratio of net expenses, excluding interest expense, to average net assets			1.00	%			0.96	%			0.91	%			1.00	%			1.00	%
Ratio of net investment loss to average net assets			(0.08	)%			(0.20	)%			(0.35	)%			(0.74	)%			(0.66	)%
Portfolio turnover rate			40	%			30	%			24	%			33	%			19	%

 

		Class Y
		Year Ended December 31,
		2013				2012				2011				2010(d)
Net asset value, beginning of period			$16.88				$19.12				$24.72				$21.56
Income from investment operations:
Net investment loss			(0.03	)(b)			(0.06	)(b)			(0.08	)(b)			(0.14	)(b)
Net realized and unrealized gain (loss) on investments			(8.20	)			(1.76	)			(5.21	)			7.08
Total from investment operations			(8.23	)			(1.82	)			(5.29	)			6.94
Less dividends and distributions from:
Net investment income			(0.07	)			—				(0.31	)			(2.09	)
Net realized gains			—				(0.42	)			—				(1.69	)
Total dividends and distributions			(0.07	)			(0.42	)			(0.31	)			(3.78	)
Net asset value, end of period			$8.58				$16.88				$19.12				$24.72
Total return (a)			(48.76	)%			(9.44	)%			(21.42	)%			32.59	%(e)
Ratios/Supplemental Data
Net assets, end of period (000’s)	$34,096				$96,108				$78,106				$19,105
Ratio of gross expenses to average net assets			1.34	%			1.08	%			1.10	%			1.11	%(f)
Ratio of net expenses to average net assets			1.20	%			1.08	%			1.10	%			1.11	%(f)
Ratio of net expenses, excluding interest expense, to average net assets			1.20	%			1.08	%			1.10	%			1.11	%(f)
Ratio of net investment loss to average net assets			(0.30	)%			(0.31	)%			(0.34	)%			(0.82	)%(f)
Portfolio turnover rate			40	%			30	%			24	%			33	%(e)

 

 

 

(a)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(b)	Calculated based upon average shares outstanding.
(c)	For the year ended December 31, 2009, 0.58% of the Class I total return, representing $0.14 per share, consisted of a payment by the Adviser in connection with past market timing activities. Additionally, 1.49% of Class I total return resulted from settlement payments received from third parties by the Fund.
(d)	For the period April 30, 2010 (commencement of operations) through December 31, 2010.
(e)	Not annualized.
(f)	Annualized.

 

See Notes to Financial Statements

82

LONG/SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Class A
		For the
		Period Ended
		December 31,
		2013(a)
Net asset value, beginning of period			$8.88
Income from investment operations:
Net investment income			0.01
Net realized and unrealized gain on investments			0.22
Total from investment operations			0.23
Net asset value, end of period			$9.11
Total return (b)			2.59	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)			$122
Ratio of gross expenses to average net assets (e)			59.49	%(d)
Ratio of net expenses to average net assets (e)			1.29	%(d)
Ratio of net expenses, excluding dividends and interest on securities sold short and interest expense, to average net assets (e)			0.95	%(d)
Ratio of net investment income to average net assets (e)			2.77	%(d)
Portfolio turnover rate			14	%(c)

 

		Class I
		For the
		Period Ended
		December 31,
		2013(a)
Net asset value, beginning of period			$8.88
Income from investment operations:
Net investment income			0.02
Net realized and unrealized gain on investments			0.21
Total from investment operations			0.23
Net asset value, end of period			$9.11
Total return (b)			2.59	%(c)
Ratios/Supplemental Data
Net assets, end of year (000’s)			$821
Ratio of gross expenses to average net assets (e)			53.09	%(d)
Ratio of net expenses to average net assets (e)			0.99	%(d)
Ratio of net expenses, excluding dividends and interest on securities sold short and interest expense, to average net assets (e)			0.65	%(d)
Ratio of net investment income to average net assets (e)			3.14	%(d)
Portfolio turnover rate			14	%(c)

 

 

 

(a)	For the period December 12, 2013 (commencement of operations) through December 31, 2013.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Not annualized.
(d)	Annualized.
(e)	The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investments in underlying funds.

 

See Notes to Financial Statements

83

LONG/SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Class Y
		For the
		Period Ended
		December 31,
		2013(a)
Net asset value, beginning of period			$8.88
Income from investment operations:
Net investment income			0.02
Net realized and unrealized gain on investments			0.21
Total from investment operations			0.23
Net asset value, end of period			$9.11
Total return (b)			2.59	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)			$103
Ratio of gross expenses to average net assets (e)			54.60	%(d)
Ratio of net expenses to average net assets (e)			1.04	%(d)
Ratio of net expenses, excluding dividends and interest on securities sold short and interest expense, to average net assets (e)			0.70	%(d)
Ratio of net investment income to average net assets (e)			3.08	%(d)
Portfolio turnover rate			14	%(c)

 

 

 

(a)	For the period December 12, 2013 (commencement of operations) through December 31, 2013.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Not annualized.
(d)	Annualized.
(e)	The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investments in underlying funds.

 

See Notes to Financial Statements

84

MULTI-MANAGER ALTERNATIVES FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Class A
		Year Ended December 31,
		2013				2012				2011				2010				2009(a)
Net asset value, beginning of period			$9.08				$8.97				$9.30				$9.00				$8.88
Income from investment operations:
Net investment loss			(0.05	(c)			(0.18	)			(0.17	)			(0.09	)			(0.04	)
Net realized and unrealized gain (loss) on investments			0.54				0.30				(0.06	)			0.51				0.16
Total from investment operations			0.49				0.12				(0.23	)			0.42				0.12
Less dividends and distributions from:
Net investment income			—				(0.01	)			(0.05	)			(0.03	)			—
Net realized gains			(0.21	)			—				(0.05	)			(0.09	)			—
Total dividends and distributions			(0.21	)			(0.01	)			(0.10	)			(0.12	)			—
Net asset value, end of period			$9.36				$9.08				$8.97				$9.30				$9.00
Total return (b)			5.46	%			1.38	%			(2.38	%)			4.67	%			1.35	%(d)
Ratios/Supplemental Data
Net assets, end of period (000’s)	$17,046				$35,860				$41,271				$38,278				$14,907
Ratio of gross expenses to average net assets (e)			3.07	%			2.95	%			2.52	%			2.59	%			3.03	%(f)
Ratio of net expenses to average net assets (e)			2.79	%			2.95	%			2.52	%			2.59	%			2.56	%(f)
Ratio of net expenses, excluding dividends on securities sold short and interest expense, to average net assets (e)			2.40	%			2.30	%			2.24	%			2.28	%			2.40	%(f)
Ratio of net investment loss to average net assets (e)			(0.52	)%			(1.57	)%			(1.94	)%			(1.33	)%			(1.13	)%(f)
Portfolio turnover rate			249	%			242	%			249	%			275	%			75	%(d)

 

		Class C
		Year Ended
		December 31,
		2013				2012(g)
Net asset value, beginning of period			$9.04				$9.21
Income from investment operations:
Net investment loss			(0.11	)(c)			(0.01	)
Net realized and unrealized gain (loss) on investments			0.53				(0.15	)
Total from investment operations			0.42				(0.16	)
Less dividends and distributions from:
Net investment income			—				(0.01	)
Net realized gains			(0.21	)			—
Total dividends and distributions			(0.21	)			(0.01	)
Net asset value, end of period			$9.25				$9.04
Total return (b)			4.71	%			(1.69	)%(d)
Ratios/Supplemental Data
Net assets, end of period (000’s)			$681				$414
Ratio of gross expenses to average net assets (e)			15.67	%			42.99	%(f)
Ratio of net expenses to average net assets (e)			3.61	%			3.64	%(f)
Ratio of net expenses, excluding dividends on securities sold short and interest expense, to average net assets (e)			3.15	%			2.94	%
Ratio of net investment loss to average net assets (e)			(1.22	)%			(0.65	)%(f)
Portfolio turnover rate			249	%			242	%(d)

 

 

 

(a)	For the period June 05, 2009 (commencement of operations) through December 31, 2009.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Calculated based upon average shares outstanding.
(d)	Not annualized.
(e)	The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investments in underlying Funds.
(f)	Annualized.
(g)	For the period April 30, 2012 (commencement of operations) through December 31, 2012.

 

See Notes to Financial Statements

85

MULTI-MANAGER ALTERNATIVES FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period:

 

		Class I
		Year Ended December 31,
		2013				2012				2011				2010				2009(a)
Net asset value, beginning of period			$ 9.18				$ 9.04				$ 9.33				$ 9.01				$ 8.88
Income from investment operations:
Net investment loss			—	(c)(h)			(0.13	)			(0.10	)			(0.05	)			(0.05	)
Net realized and unrealized gain (loss) on investments			0.54				0.28				(0.09	)			0.49				0.18
Total from investment operations			0.54				0.15				(0.19	)			0.44				0.13
Less dividends and distributions from:
Net investment income			—				(0.01	)			(0.05	)			(0.03	)			—
Net realized gains			(0.21	)			—				(0.05	)			(0.09	)			—
Total dividends and distributions			(0.21	)			(0.01	)			(0.10	)			(0.12	)			—
Net asset value, end of period			$ 9.51				$ 9.18				$ 9.04				$ 9.33				$ 9.01
Total return (b)			5.94	%			1.70	%			(1.95	)%			4.89	%			1.46	%(d)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$15,985				$11,180				$10,648				$6,651				$2,536
Ratio of gross expenses to average net assets (e)			2.97	%			2.81	%			2.25	%			2.35	%			2.94	%(f)
Ratio of net expenses to average net assets (e)			2.40	%			2.60	%			2.23	%			2.31	%			2.30	%(f)
Ratio of net expenses, excluding dividends on securities sold short and interest expense, to average net assets (e)			1.95	%			1.95	%			1.95	%			2.00	%			2.15	%(f)
Ratio of net investment income (loss) to average net assets (e)			(0.02	)%			(1.17	)%			(1.18	)%			(1.05	)%			0.89	%(f)
Portfolio turnover rate			249	%			242	%			249	%			275	%			75	%(d)

 

		Class Y
		Year Ended December 31,
		2013				2012				2011				2010(g)
Net asset value, beginning of period			$ 9.17				$ 9.02				$ 9.32				$ 9.12
Income from investment operations:
Net investment loss			(0.01	)(c)			(0.03	)			(0.06	)			(0.03	)
Net realized and unrealized gain (loss) on investments			0.55				0.19				(0.14	)			0.35
Total from investment operations			0.54				0.16				(0.20	)			0.32
Less dividends and distributions from:
Net investment income			—				(0.01	)			(0.05	)			(0.03	)
Net realized gains			(0.21	)			—				(0.05	)			(0.09	)
Total dividends and distributions			(0.21	)			(0.01	)			(0.10	)			(0.12	)
Net asset value, end of period			$ 9.50				$ 9.17				$ 9.02				$ 9.32
Total return (b)			5.95	%			1.82	%			(2.06	)%			3.51	%(d)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$3,406				$11,273				$6,232				$385
Ratio of gross expenses to average net assets (e)			3.11	%			3.09	%			2.35	%			2.28	%(f)
Ratio of net expenses to average net assets (e)			2.35	%			2.62	%			2.28	%			2.27	%(f)
Ratio of net expenses, excluding dividends on securities sold short and interest expense, to average net assets (e)			2.00	%			2.00	%			2.00	%			1.95	%(f)
Ratio of net investment loss to average net assets (e)			(0.11	)%			(1.07	)%			(1.81	)%			(1.48	)%(f)
Portfolio turnover rate			249	%			242	%			249	%			275	%(d)

 

 

 

(a)	For the period June 05, 2009 (commencement of operations) through December 31, 2009.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Calculated based upon average shares outstanding.
(d)	Not annualized.
(e)	The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investments in underlying funds.
(f)	Annualized.
(g)	For the period April 30, 2010 (commencement of operations) through December 31, 2010.
(h)	Amount represents less than $0.005 per share.

 

See Notes to Financial Statements

86

UNCONSTRAINED EMERGING MARKETS BOND FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout the period:

 

		Class A
		Year Ended December 31,
		2013				2012(a)
Net asset value, beginning of period			$ 9.54				$ 8.88
Income from investment operations:
Net investment income			0.44				0.25
Net realized and unrealized gain (loss) on investments			(0.87	)			0.73
Total from investment operations			(0.43	)			0.98
Less dividends and distributions from:
Net investment income			(0.14	)			(0.24	)
Net realized gains			—				(0.08	)
Return of capital			(0.42	)			—
Total dividends and distributions			(0.56	)			(0.32	)
Net asset value, end of period			$ 8.55				$ 9.54
Total return (b)			(4.70	)%			11.06	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$35,983				$3,602
Ratio of gross expenses to average net assets			1.42	%			1.67	%(d)
Ratio of net expenses to average net assets			1.25	%			1.25	%(d)
Ratio of net expenses, excluding interest expense, to average net assets			1.25	%			1.25	%(d)
Ratio of net investment income to average net assets			6.23	%			5.88	%(d)
Portfolio turnover rate			556	%			190	%(c)

 

		Class C
		Year Ended December 31,
		2013				2012(a)
Net asset value, beginning of period			$ 9.50				$ 8.88
Income from investment operations:
Net investment income			0.46				0.37
Net realized and unrealized gain (loss) on investments			(0.95	)			0.57
Total from investment operations			(0.49	)			0.94
Less dividends and distributions from:
Net investment income			(0.14	)			(0.24	)
Net realized gains			—				(0.08	)
Return of capital			(0.42	)			—
Total dividends and distributions			(0.56	)			(0.32	)
Net asset value, end of period			$ 8.45				$ 9.50
Total return (b)			(5.37	) %			10.61	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$5,254				$533
Ratio of gross expenses to average net assets			2.59	%			2.81	%(d)
Ratio of net expenses to average net assets			1.95	%			1.95	%(d)
Ratio of net expenses, excluding interest expense, to average net assets			1.95	%			1.95	%(d)
Ratio of net investment income to average net assets			5.60	%			4.80	%(d)
Portfolio turnover rate			556	%			190	%(c)

 

 

 

(a)	For the period July 09, 2012 (commencement of operations) through December 31, 2012.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Not annualized.
(d)	Annualized.

 

See Notes to Financial Statements

87

UNCONSTRAINED EMERGING MARKETS BOND FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout the period:

 

		Class I
		Year Ended December 31,
		2013				2012(a)
Net asset value, beginning of period			$ 9.54				$ 8.88
Income from investment operations:
Net investment income			0.54				0.23
Net realized and unrealized gain (loss) on investments			(0.94	)			0.75
Total from investment operations			(0.40	)			0.98
Less dividends and distributions from:
Net investment income			(0.14	)			(0.24	)
Net realized gains			—				(0.08	)
Return of capital			(0.42	)			—
Total dividends and distributions			(0.56	)			(0.32	)
Net asset value, end of period			$ 8.58				$ 9.54
Total return (b)			(4.38	)%			11.06	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$112,437				$91,197
Ratio of gross expenses to average net assets			1.02	%			1.03	%(d)
Ratio of net expenses to average net assets			0.95	%			0.95	%(d)
Ratio of net expenses, excluding interest expense, to average net assets			0.95	%			0.95	%(d)
Ratio of net investment income to average net assets			6.56	%			6.67	%(d)
Portfolio turnover rate			556	%			190	%(c)

 

		Class Y
		Year Ended December 31,
		2013				2012(a)
Net asset value, beginning of period			$ 9.54				$ 8.88
Income from investment operations:
Net investment income			0.47				0.43
Net realized and unrealized loss on investments			(0.88	)			0.55
Total from investment operations			(0.41	)			0.98
Less dividends and distributions from:
Net investment income			(0.14	)			(0.24	)
Net realized gains			—				(0.08	)
Return of capital			(0.42	)			—
Total dividends and distributions			(0.56	)			(0.32	)
Net asset value, end of period			$ 8.57				$ 9.54
Total return (b)			(4.49	)%			11.06	%(c)
Ratios/Supplemental Data
Net assets, end of period (000’s)		$	8,607				$ 855
Ratio of gross expenses to average net assets			1.48	%			1.74	%(d)
Ratio of net expenses to average net assets			1.00	%			1.00	%(d)
Ratio of net expenses, excluding interest expense, to average net assets			1.00	%			1.00	%(d)
Ratio of net investment income to average net assets			6.61	%			5.78	%(d)
Portfolio turnover rate			556	%			190	%(c)

 

 

 

(a)	For the period July 09, 2012 (commencement of operations) through December 31, 2012.
(b)	Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares.
(c)	Not annualized.
(d)	Annualized.

 

See Notes to Financial Statements

88

VAN ECK FUNDS

NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

Note 1—Fund Organization— Van Eck Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was organized as a Massachusetts business trust on April 3, 1985. The Trust operates as a series fund currently comprised of seven portfolios. These financial statements relate only to the following investment portfolios: CM Commodity Index Fund, Emerging Markets Fund, Global Hard Assets Fund, International Investors Gold Fund, Long/Short Equity Fund, Multi-Manager Alternatives Fund and Unconstrained Emerging Markets Bond Fund (collectively the “Funds” and each a “Fund”). The Funds are classified as non-diversified funds. The CM Commodity Index Fund and International Investors Gold Fund may effect certain investments through the Commodities Series Fund I Subsidiary and Gold Series Fund I Subsidiary, respectively (collectively the “Subsidiaries” and each a wholly-owned “Subsidiary”). The CM Commodity Index Fund seeks to replicate as closely as possible, before fees and expenses, the performance of the UBS Bloomberg Constant Maturity Commodity Total Return Index. The Emerging Markets Fund seeks long-term capital appreciation by investing primarily in equity securities in emerging markets around the world. The Global Hard Assets Fund seeks long-term capital appreciation by investing primarily in hard asset securities. The International Investors Gold Fund seeks long-term capital appreciation by investing in common stocks of gold-mining companies or directly in gold bullion and other metals. The Long/Short Equity Fund seeks total return by maintaining long and short positions in exchange traded products. The Multi-Manager Alternatives Fund seeks to achieve consistent absolute (positive) returns in various market cycles. The Unconstrained Emerging Markets Bond Fund seeks total return, consisting of income and capital appreciation by investing primarily in emerging market debt securities. Each of the Funds is authorized to issue various classes of shares. Each share class represents an interest in the same portfolio of investments of the respective Fund and is substantially the same in all respects, except that the classes are subject to different distribution fees and sales charges. Class I and Y Shares are sold without a sales charge; Class A Shares are sold subject to a front-end sales charge; and Class C Shares are sold with a contingent deferred sales charge.

 

Note 2—Significant Accounting Policies— The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

 

The following is a summary of significant accounting policies followed by the Funds.

 

A.

Security Valuation— The Funds value their investments in securities and other assets and liabilities carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges or traded on the NASDAQ National Market System are valued at the last sales price as reported at the close of each business day. Securities traded on the NASDAQ Stock Market are valued at the NASDAQ official closing price. Over-the-counter securities not included in the NASDAQ National Market System and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (as described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Standard Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as, when a particular foreign market is closed but the Fund is open. Bonds and notes are fair valued by a pricing service which utilizes models that incorporate observable data such as sales of similar securities, broker quotes, yields, bids, offers and reference data and are categorized as Level 2 in the fair value hierarchy. Short-term obligations with more than sixty days remaining to maturity are valued at market value. Short-term obligations with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Closed-end publicly listed fund investments are valued at the official market closing price. Open-end mutual fund investments (including money market funds) are valued at their closing net asset value each business day and are categorized as Level 1 in the fair value hierarchy. Swap contracts are marked to market daily using either pricing vendor quotations, counterparty prices or model prices and the net change in value, if any, is regarded as an unrealized gain or loss and is categorized as Level 2 in the fair value hierarchy. Futures contracts are valued using the closing price reported at the close of the respective exchange and are categorized as Level 1 in the fair value hierarchy. Forward foreign currency contracts are valued at the spot currency rate plus an amount (“points”), which reflects the differences in interest rates between the U.S. and foreign markets and is categorized as Level 2 in the fair value hierarchy. Securities for which quotations are not available are stated at fair value as determined by the Pricing Committee appointed by the Board of Trustees. The Pricing Committee provides oversight of the Funds’ valuation policies and procedures, which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities, dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments for which market prices are not readily available. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, transactional back-testing and disposition analysis.

89

VAN ECK FUNDS

NOTES TO FINANCIAL STATEMENTS

(continued)

 

	Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be classified either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented on the Schedule of Investments.
	The Funds utilize various methods to measure the fair value of its investments on a recurring basis which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The transfers between levels of the fair value hierarchy assumes the financial instruments were transferred at the beginning of the reporting period. The three levels of the fair value hierarchy are described below:
	Level 1 – Quoted prices in active markets for identical securities.
	Level 2 – Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
	Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).
	A summary of the inputs, the levels used to value each Fund’s investments, and transfers between levels are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of each Fund’s Level 3 investments, and that present additional information about the valuation methodologies and unobservable inputs into those Level 3 investments, if applicable, are located in the Schedules of Investments.
B.	Basis for Consolidation— The Commodities Series Fund I Subsidiary and the Gold Series Fund I Subsidiary, both Cayman Islands exempted companies, were incorporated on June 26, 2009 and November 7, 2011, respectively. Commodity Series Fund I Subsidiary and the Gold Series Fund I Subsidiary are currently wholly-owned subsidiaries of the CM Commodity Index Fund and International Investors Gold Fund, respectively. The Subsidiaries act as investment vehicles for the CM Commodity Index Fund and International Investors Gold Fund in order to effect certain investments on behalf of the Funds. All interfund account balances and transactions between parent and subsidiary have been eliminated in consolidation. As of December 31, 2013, the CM Commodity Index Fund and International Investors Gold Fund held $48,605,868 and $46,866 in their Subsidiaries, representing 19% and 0% of each Fund’s net assets, respectively.
C.	Federal Income Taxes— It is each Fund’s policy to comply with the provisions of the U.S. Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.
	The wholly-owned subsidiaries of the CM Commodity Fund and the International Investors Gold Fund are classified as controlled foreign corporations (“CFC”) under the Code. For U.S. tax purposes, a CFC is not subject to U.S. income tax. However, as a wholly-owned CFC, its net income and capital gain, to the extent of its earnings and profits, will be included each year in the CM Commodity Fund and the International Investors Gold Fund investment company taxable income. Net losses of the CFC cannot be deducted by the CM Commodity Index Fund and the International Investors Gold Fund in the current year nor carried forward to offset taxable income in future years.
D.	Currency Translation— Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gains (loss) on forward foreign currency contracts, foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations.
E.	Dividends and Distributions to Shareholders— Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually (except for the Unconstrained Emerging Markets Bond Fund which is declared and paid monthly). Income dividends and capital gain distributions for the Funds are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP.

90

 

 

F.	Securities Sold Short— The Funds, except CM Commodity Index Fund, may make short sales of securities. A short sale occurs when a Fund sells a security, which it does not own, by borrowing it from a broker. Proceeds from securities sold short are reported as liabilities on the Statements of Assets and Liabilities and are marked to market daily in accordance with the fair value methodology described in Note 2A. Gains and losses are classified as realized when short positions are closed. In the event that the value of the security that the Fund sold short declines, the Fund will gain as it repurchases the security in the market at the lower price. If the price of the security increases, the Fund will suffer a loss, as it will have to repurchase the security at the higher price. Short sales may incur higher transaction costs than regular securities transactions. Dividends and interest on short sales are recorded as an expense by the Fund on the ex-dividend date or interest payment date, respectively. Cash as collected is deposited in a segregated account with brokers, maintained for the Fund, for its open short sales. Until the Fund replaces the borrowed security, the Fund maintains securities or permissible liquid assets in a segregated account with a broker or custodian sufficient to cover its short positions. The Global Hard Assets Fund and the Unconstrained Emerging Markets Bond Fund did not have any short sales during the year ended December 31, 2013. Securities sold short in the Long/Short Equity Fund and the Multi-Manager Alternatives Fund held at December 31, 2013 are reflected in the Schedule of Investments.
G.	Other— Security transactions are accounted for on trade date. Realized gains and losses are calculated on the specific identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date. Interest income, including amortization of premiums and discounts, is accrued as earned. Estimated foreign taxes that are expected to be withheld from proceeds at the sale of certain foreign investments are accrued by the Funds and decrease the unrealized gain on investments. Income, expenses (excluding class-specific expenses), realized and unrealized gains (losses) are allocated proportionately to each class of shares based upon the relative net asset value of outstanding shares of each class at the beginning of the day (after adjusting for current capital share activity of the respective classes). Class-specific expenses are charged directly to the applicable class of shares.
	In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote.
H.	Structured Notes— The Funds may invest in structured notes whose values are based on the price movements of a referenced security or index. The value of these structured notes will rise and fall in response to changes in the referenced security or index. On the maturity date of each structured note, the Fund will receive a payment from a counterparty based on the value of the referenced security or index (notional amount multiplied by the price of the referenced security or index) and record a realized gain or loss.
	Structured notes may present a greater degree of market risk than many types of securities and may be more volatile and less liquid than less complex securities. Structured notes are also subject to the risks that the issuer of the structured notes may fail to perform its contractual obligations. Structured notes held at December 31, 2013 are reflected in the Schedules of Investments.
I.	Restricted Securities— The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each Fund’s Schedule of Investments.
J.	Warrants— The Funds may invest in warrants whose values are linked to indices or underlying instruments. The Funds may use these warrants to gain exposure to markets that might be difficult to invest in through conventional securities. Warrants may be more volatile than their linked indices or underlying instruments. Potential losses are limited to the amount of the original investment. The Emerging Market Fund has invested in aXess warrants that are linked to the shares of an underlying security and are issued by Deutsche Bank AG London. The warrants are obligations of the issuer and are not secured by any collateral. The warrants may be exercised by the Fund during the exercise period. If the warrants have not been exercised on the last day of the exercise period, the warrants will be automatically exercised on that day. Warrants held at December 31, 2013 are reflected in the Schedules of Investments.
K.	Use of Derivative Instruments— The Funds may make investments in derivative instruments, including, but not limited to, options, futures, swaps and other derivatives relating to foreign currency transactions. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative instruments may be privately negotiated contracts (often referred to as over-the-counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments or commodities at specified terms on a specified date, or to exchange interest payment streams or currencies based on a notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The use of derivative instruments also involves the risk of loss if the investment adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest

91

VAN ECK FUNDS

NOTES TO FINANCIAL STATEMENTS

(continued)

 

rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument. GAAP requires enhanced disclosures about the Funds’ derivative instruments and hedging activities. Details of this disclosure are found below as well as in the Schedule of Investments.

 

At December 31, 2013, the Funds held the following derivatives (not designated as hedging instruments under GAAP):

 

		Asset Derivatives								Liabilities Derivatives
		Commodities Futures Risk				Foreign Currency Risk				Equity Risk				Foreign Currency Risk
CM Commodity Index Fund
Swap contracts 1		$	311,959			$	—			$	—			$	—
Emerging Markets Fund
Foreign forward currency contracts 2			—				—				—				1,753
Multi-Manager Alternatives Fund
Written Options 3			—				—				48,217				—
Unconstrained Emerging Markets Bond Fund
Foreign forward currency contracts 4			—				20,713				—				—

 

1	Statement of Assets and Liabilities location: Total return swap contracts, at value
2	Sttatement of Assets and Liabilities location: Unrealized depreciation on forward foreign currency contracts
3	Statement of Assets and Liabilities location: Written options, at value
4	Statement of Assets and Liabilities location: Unrealized appreciation on forward foreign currency contracts

 

The impact of transactions in derivative instruments, during the year ended December 31, 2013, were as follows:

 

		Commodities Futures Risk				Credit Risk				Equity Risk				Interest Rate Risk				Foreign Currency Risk
CM Commodity Index Fund
Realized gain (loss):
Swap contracts 1		$	(14,373,386	)		$	—			$	—			$	—			$	—
Net change in unrealized appreciation (depreciation):
Swap contracts 2			721,187				—				—				—				—
Emerging Markets Fund
Realized gain (loss):
Foreign forward currency contracts 3			—				—				—				—				2,116
Net change in unrealized appreciation (depreciation):
Foreign forward currency contracts 4			—				—				—				—				(1,753	)
International Investors Gold Fund
Realized gain (loss):
Foreign forward currency contracts 3			—				—				—				—				50,662
Net change in unrealized appreciation (depreciation):
Foreign forward currency contracts 4			—				—				—				—				(337	)
Multi-Manager Alternatives Fund
Realized gain (loss):
Futures contracts 5			—				—				—				(72,094	)			—
Foreign forward currency contracts 3			—				—				—				—				(34,348	)
Swap contracts 1			—				(1,862	)			—				—				—
Written options 6			—				—				295,183				—				—
Net change in unrealized appreciation (depreciation):
Foreign forward currency contracts 4			—				—				—				—				13,889
Swap contracts 2			—				4,160				—				—				—
Written options 7			—				—				19,610				—				—

92

 

 

		Commodities Futures Risk				Credit Risk				Equity Risk				Interest Rate Risk				Foreign Currency Risk
Unconstrained Emerging Markets Bond Fund
Realized gain (loss):
Foreign forward currency contracts 3		$	—			$	—			$	—			$	—			$	(2,109,827	)
Net change in unrealized appreciation (depreciation):
Foreign forward currency contracts 4			—				—				—				—				35,107

 

1	Statement of Operations location: Net realized gain (loss) on swap contracts
2	Statement of Operations location: Net change in unrealized appreciation (depreciation) on swap contracts
3	Statement of Operations location: Net realized gain (loss) on forward foreign currency contracts, foreign currency transactions and foreign denominated assets and liabilities
4	Statement of Operations location: Net change in unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currency transactions and foreign denominated assets and liabilities
5	Statement of Operations location: Net realized gain (loss) on futures contracts
6	Statement of Operations location: Net realized gain (loss) on written options
7	Statement of Operations location: Net change in unrealized appreciation (depreciation) on investments, options purchased and written options

 

Credit Default Swaps— The Multi-Manager Alternatives Fund and Unconstrained Emerging Markets Bond Fund may enter into credit default swaps, which may have as reference obligations one or more securities or a basket of securities that are or are not currently held by the Fund. The protection “buyer” in a credit default contract is generally obligated to pay the protection “seller” an upfront or a periodic stream of payments over the term of the contract provided that no credit event such as a default, on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the “par value” (full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap or the seller may be required to deliver the related net cash amount, if the swap is cash settled. Credit default swaps at December 31, 2013 are reflected in the Schedules of Investments. The Multi-Manager Alternatives Fund held credit default swaps for six months during the year ended December 31, 2013 with an average monthly notional amount of $900,000. At December 31, 2013, the Funds held no credit default swaps. The Multi-Manager Alternatives Fund entered into a credit default swap contract for investment purposes, to manage its credit risk and to provide protection against defaults of the issuers. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.

 

Forward Foreign Currency Contracts— The Funds are subject to foreign currency risk in the normal course of pursuing its investment objectives. The Funds may buy and sell forward foreign currency contracts to settle purchases and sales of foreign denominated securities to gain currency exposure, or to hedge foreign denominated assets. Realized gains and losses from forward foreign currency contracts, if any, are included in net realized gain (loss) on forward foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations. The Funds may incur additional risk from investments in forward foreign currency contracts if the counterparty is unable to fulfill its obligation or there are unanticipated movements of the foreign currency relative to the U.S. dollar. Forward foreign currency contracts at December 31, 2013 are reflected in the Schedule of Investments. The Emerging Markets Fund had forward foreign currency contracts for one month during the year ended December 31, 2013 with an average unrealized depreciation of $1,753. The Multi-Manager Alternatives Fund and the Unconstrained Emerging Markets Bond Fund had forward foreign currency contracts for eight months during the year ended December 31, 2013 with an average unrealized depreciation of $8,514 and $106,930, respectively.

 

Futures Contracts— The Funds are subject to equity price risk, interest rate risk, commodity price risk and foreign currency exchange risk in the normal course of pursuing their investment objectives. The Funds may engage in futures contracts, which may include: security and interest-rate futures, stock and bond index futures contracts, financial futures, commodity futures and foreign currency futures contracts, to gain exposure to, or hedge against changes in the value of equities, interest rates, commodities or foreign currencies. CM Commodity Index Fund and Global Hard Assets Fund may also buy and sell commodity futures contracts, which may include futures on natural resources and natural resource indices. A security or interest-rate futures contract is an agreement between two parties to buy or sell a specified security at a set price on a future date. An index futures contract is an agreement to take or make delivery of an amount of cash based on the difference between the value of the index at the beginning and at the end of the contract period. A foreign currency futures contract is an agreement to buy or sell a specified amount of currency at a set price on a future date. A commodity futures contract is an agreement to take or make delivery of a specified amount of a commodity, such as gold, at a set price on a future date. There is minimal counterparty credit risk to the Funds with futures transactions since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Realized

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(continued)

 

gains and losses from futures contracts are reported separately. CM Commodity Index Fund, Emerging Markets Fund, Global Hard Assets Fund, International Investors Gold Fund, Long/Short Equity Fund, and Unconstrained Emerging Markets Bond Fund did not have any futures contracts during the year ended December 31, 2013. The Multi-Manager Alternatives Fund held futures contracts for one month during the year ended December 31, 2013 with an average volume of 8,000 contracts. At December 31 2013, the Funds held no futures contracts.

 

Option Contracts— The Funds are subject to equity price risk, interest rate risk and commodity price risk in the normal course of pursuing their investment objectives. The Funds may invest in call and put options on securities, currencies and commodities to gain exposure to or hedge against changes in the value of equities, interest rates, or commodities. Call and put options give the Funds the right, but not the obligation, to buy (calls) or sell (puts) the instrument underlying the option at a specified price. The premium paid on the option, should it be exercised, will, on a call, increase the cost of the instrument acquired and, on a put, reduce the proceeds received from the sale of the instrument underlying the option. If the options are not exercised, the premium paid will be recorded as a realized loss upon expiration. The Funds may incur additional risk to the extent the value of the underlying instrument does not correlate with the movement of the option value.

 

The Funds may also write call or put options. The Funds keep the premium whether or not the option is exercised. The premium will be recorded, upon expiration of the option, as a realized gain in the Statements of Operations. If the option is exercised, the Funds must sell, in the case of a written call, or buy, in the case of a written put, the underlying instrument at the exercise price. The Funds may write covered puts and calls. A covered call option is an option in which the Funds own the instrument underlying the call. A covered call sold exposes the Funds during the term of the option to possible loss of opportunity to realize appreciation in the market price of the underlying instrument or to possible continued holding of an underlying instrument which might otherwise have been sold to protect against a decline in the market price. A covered put exposes the Funds during the term of the option to a decline in price of the underlying instrument. The Funds maintain securities or permissible liquid assets in a segregated account with a broker or custodian sufficient to cover its put option positions. The Funds may incur additional risk from investments in written currency options if there are unanticipated movements in the underlying currencies.

 

Multi-Manager Alternatives Fund had the following transactions in put and call options written during the year ended December 31, 2013:

 

		Number of Contracts					Premiums
Options outstanding at December 31, 2012				(139	)			$	(8,868	)
Options opened				—					—
Options written				(5,250	)				(608,410	)
Options exercised				731					52,800
Options expired				1,386					94,079
Options closed				2,764					401,050
Options outstanding at December 31, 2013				(508	)			$	(69,349	)

 

Total Return Swaps— The CM Commodity Index Fund may enter into total return swaps in order take a “long” position with respect to an underlying referenced asset. The CM Commodity Index Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the CM Commodity Index Fund will receive a payment from or make a payment to the counterparty. Documentation governing the CM Commodity Index Fund’s swap transactions may contain provisions for early termination of a swap in the event the net assets of the CM Commodity Index Fund decline below specific levels set forth in the documentation (“net asset contingent features”). If these levels are triggered, the CM Commodity Index Fund’s counterparty has the right to terminate the swap and require the CM Commodity Index Fund to pay or receive a settlement amount in connection with the terminated swap transaction. Total return swap position held by the CM Commodity Index Fund at December 31, 2013 is reflected in the Schedule of Investments. The average monthly notional amount of the total return swaps in the CM Commodity Index Fund was $195,666,769 during the year ended December 31, 2013.

 

L.

Offsetting Assets and Liabilities– In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting agreements or other similar agreements. Generally, the right of setoff in those agreements allows the Funds to set off any exposure to a specific counterparty with any collateral received from or delivered to that counterparty based on the terms of the agreements. The Funds may pledge or receive cash and/or securities as collateral for derivative instruments.

94

 

 

The tables below present both gross and net information about the derivative instruments eligible for offset in the Statements of Assets and Liabilities, subject to a master netting agreement or similar agreement, as well as financial collateral received or pledged (including cash collateral) as of December 31, 2013. Collateral is disclosed up to an amount of 100% of the net amount of unrealized gain/loss or market value for the respective financial instruments. In general, collateral received or pledged exceeds the net amount of the unrealized gain/loss or market value of financial instruments. Refer to the Schedules of Investments and Statements of Assets and Liabilities for collateral received or pledged as of December 31, 2013.

 

		Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statements of Assets and Liabilities				Net Amounts of Assets Presented in the Statements of Assets and Liabilities				Financial Instruments and Cash Collateral Received				Net Amount
CM Commodity Index Fund
Total return swap contracts		$	311,959			$	—			$	311,959			$	(311,959	)		$	—
Unconstrained Emerging Markets Bond Fund
Foreign forward currency contracts			20,713				—				20,713				—				20,713

 

		Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Statements of Assets and Liabilities				Net Amounts of Liabilities Presented in the Statements of Assets and Liabilities				Financial Instruments and Collateral Pledged				Net Amount
Emerging Markets Fund
Foreign forward currency contracts		$	2,446			$	(693	)		$	1,753			$	—			$	1,753
Multi-Manager Alternatives Fund Written Options			48,217				—				48,217				(48,217	)			—

 

Note 3—Investment Management and Other Agreements— The Van Eck Associates Corporation (“VEAC”) is the investment adviser to the Emerging Markets Fund, the Global Hard Assets Fund, the International Investors Gold Fund, the Long/Short Equity Fund, the Multi-Manager Alternatives Fund and the Unconstrained Emerging Markets Bond Fund. Van Eck Absolute Return Advisers Corporation (“VEARA”) is the investment adviser to the CM Commodity Index Fund and its Cayman subsidiary. VEARA is a wholly-owned subsidiary of VEAC, and collectively with VEAC is referred to as the “Adviser”.

 

The Adviser receives a management fee, calculated daily and payable monthly at the following annual rates based on the Funds’ average daily net assets:

 

Fund			Annual Rate
CM Commodity Index Fund			0.75%
Emerging Markets Fund			0.75%
Global Hard Assets Fund			1.00% of the first $2.5 billion and 0.90% thereafter
International Investors Gold Fund			0.75% of the first $500 million, 0.65% on the next $250 million and 0.50% thereafter
Long/Short Equity Fund			0.65%
Multi-Manager Alternatives Fund			1.00% of the net assets that are managed by the Adviser, and not by a Sub-Adviser that are invested in underlying funds and 1.60% of the net assets with respect to all other assets of the fund
Unconstrained Emerging Markets Bond Fund			0.80% of the first $1.5 billion and 0.75% thereafter

 

As of December 31, 2013, the Multi-Manager Alternatives Fund had six sub-advisers, Coe Capital Management, LLC, Horizon Asset Management, LLC, Millrace Asset Group, Inc., Riverpark, LLC, SW Asset Management, and Tiburon Capital Management. The Adviser directly paid sub-advisory fees to the sub-advisers at a rate of 1.00% of the portion of the average daily net assets of the Fund managed by each of the sub-advisers.

 

The Adviser offsets the management fees it charges the Funds by the amount it collects as a management fee from underlying funds managed by the Adviser. For the year ended December 31, 2013, the Adviser waived management fees charged by $578 due to such investments on the Multi-Manager Alternatives Fund. Certain officers and trustees of the Trust are officers, directors or stockholders of the Adviser and Van Eck Securities Corporation (the “Distributor”).

95

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NOTES TO FINANCIAL STATEMENTS

(continued)

 

The Adviser has agreed, through May 1, 2014 (except for Long/Short Equity Fund which is through May 1, 2015), to waive management fees and/or assume expenses, excluding interest, taxes, and extraordinary expenses that exceed a specified percentage of average net assets (expense caps). The current expense caps and the amounts waived by the Adviser for the year ended December 31, 2013, are as follows:

 

		Expense Cap				Waiver of Management fees				Expenses Assumed by the Adviser
CM Commodity Index Fund
Class A			0.95	%		$	245,664			$	—
Class I			0.65				202,802				—
Class Y			0.70				217,278				—
Emerging Markets Fund
Class A			1.95	%			—				—
Class C			2.50				28,250				—
Class I			1.00	*			45,455				—
Class Y			1.70				—				—
Global Hard Assets Fund
Class A			1.38	%			768,828				—
Class C			2.20				118,545				—
Class I			1.00				636,131				—
Class Y			1.13				220,819				—
International Investors Gold Fund
Class A			1.45	%			45,345				—
Class C			2.20				105,635				—
Class I			1.00				124,357				—
Class Y			1.20				83,982				—
Long/Short Equity Fund
Class A			0.95	%			34				3,265
Class I			0.65				259				22,911
Class Y			0.70				32				2,945
Multi-Manager Alternatives Fund
Class A			2.40	%			71,442				—
Class C			3.15				37,166				—
Class I			1.95				69,325				—
Class Y			2.00				69,534				—
Unconstrained Emerging Markets Bond Fund
Class A			1.25	%			48,045				—
Class C			1.95				32,197				—
Class I			0.95				71,802				—
Class Y			1.00				32,631				—

* Effective October 23, 2013 the expense cap for Class I changed from 1.25% to 1.00%.

 

The Adviser agreed to reimburse the CM Commodity Index Fund through January 14, 2013 for certain swap trading costs as follows:

 

		Year Ended December 31, 2013		Year Ended December 31, 2012		Year Ended December 31, 2011
CM Commodity Index Fund		$24,470		$519,638		$161,543

 

This reimbursement is reflected in the Statements of Operations and Statement of Changes as a net increase from payment from Adviser. The per share and total return impact to the Fund is reflected in the Financial Highlights.

 

The Adviser also performs accounting and administrative services for the Emerging Markets Fund and the International Investors Gold Fund. The Adviser is paid a monthly fee at a rate of 0.25% of the average daily net assets for the Emerging Markets Fund, and for the International Investors Gold Fund at the rate of 0.25% per year on the first $750 million of the average daily net assets and 0.20% per year of the average daily net assets in excess of $750 million. During the year ended December 31, 2013, the Adviser received $407,606 from the Emerging Markets Fund and $2,018,005 from the International Investors Gold Fund pursuant to this contract.

 

For the year ended December 31, 2013, Van Eck Securities Corporation (the “Distributor”), an affiliate of the Adviser, received a total of $2,016,801 in sales loads relating to the sale of shares of the Funds, of which $1,743,024 was reallowed to broker/dealers and the remaining $273,777 was retained by the Distributor.

 

Certain officers of the Trust are officers, directors or stockholders of the Adviser and the Distributor.

96

 

 

Note 4—Investments— The cost of purchases and proceeds from sales of investments, excluding short-term investments, for the year ended December 31, 2013 were as follows:

 

Fund		Cost of Investments Purchased				Proceeds from Investments Sold				Cost of Short Sales Purchased				Proceeds from Short Sales
CM Commodity Index Fund		$	—			$	—			$	—			$	—
Emerging Markets Fund			169,452,714				122,730,896				—				—
Global Hard Assets Fund			1,237,937,158				1,387,607,300				—				—
International Investors Gold Fund			332,024,086				385,583,235				—				—
Long/Short Equity Fund			524,867				20,576				58,230				2,445
Multi-Manager Alternatives Fund			71,179,955				95,521,970				43,617,753				48,936,468
Unconstrained Emerging Markets Bond Fund			832,542,634				745,677,298				—				—

 

Note 5—Income Taxes— As of December 31, 2013, for Federal income tax purposes, the identified cost of investments owned, net unrealized appreciation (depreciation), gross unrealized appreciation, and gross unrealized depreciation of investments were as follows:

 

Fund		Cost of Investments				Gross Unrealized Appreciation				Gross Unrealized Depreciation				Net Unrealized Appreciation (Depreciation)
CM Commodity Index Fund		$	264,896,157			$	14,926			$	(14,282,915	)		$	(14,267,989	)
Emerging Markets Fund			177,835,733				33,697,033				(9,503,296	)			24,193,737
Global Hard Assets Fund			3,457,591,620				984,374,882				(301,167,038	)			683,207,844
International Investors Gold Fund			753,389,816				131,305,426				(291,417,590	)			(160,113,264	)
Long/Short Equity Fund			996,655				23,180				—				23,180
Multi-Manager Alternatives Fund			37,391,997				3,704,717				(1,761,543	)			1,943,174
Unconstrained Emerging Markets Bond Fund			158,006,309				3,524,895				(4,123,416	)			(598,521	)

 

At December 31, 2013, the components of accumulated earnings (deficit) on a tax basis, for each Fund, were as follows:

 

Fund		Undistributed Ordinary Income				Accumulated Capital Losses				Qualified Late-Year Losses				Other Temporary Difference				Unrealized Appreciation (Depreciation)				Total
CM Commodity Index Fund		$	—			$	—			$	—			$	(33,798	)		$	(1,061,261	)		$	(1,095,059	)
Emerging Markets Fund			—				(18,834,574	)			(1,117,348	)			(25,505	)			24,171,042				4,193,615
Global Hard Assets Fund			2,926,579				(64,298,246	)			—				(947,080	)			683,507,962				621,189,215
International Investors Gold Fund			—				(136,019,151	)			(44,184,293	)			(317,076	)			(160,033,104	)			(340,553,624	)
Long/Short Equity Fund			2,505				—				—				—				23,635				26,140
Multi-Manager Alternatives Fund			—				—				(160,191	)			(14,381	)			2,629,021				2,454,449
Unconstrained Emerging Markets Bond Fund			—				(7,180,116	)			(1,201,397	)			(13,970	)			(603,878	)			(8,999,361	)

 

The tax character of dividends and distributions paid to shareholders were as follows:

 

		2013 Dividends and Distributions												2012 Dividends and Distributions
Fund		Ordinary Income				Long Term Capital Gains				Return of Capital				Ordinary Income				Long Term Capital Gains
CM Commodity Index Fund		$	644,746			$	—			$	—			$	—			$	—
Emerging Markets Fund			893,891				—				—				—				—
Global Hard Assets Fund			1,273,419				—				—				22,004,296				47,407,821
International Investors Gold Fund			4,523,792				—				—				86,991				30,167,426
Multi-Manager Alternatives Fund			—				823,312				—				—				93,705
Unconstrained Emerging Markets Bond Fund			2,451,226				—				6,688,634				2,170,617	*			—

 

*	Includes short term capital gains

 

Net qualified late-year losses incurred after October 31, 2013 and within the taxable year, are deemed to arise on the first day of the Funds’ next taxable year. For the year ended December 31, 2013, the Funds intend to defer to January 1, 2014 for federal tax purpose qualified late year losses as follows:

 

Fund		Late-Year Ordinary Losses				Post-October Capital Losses
Emerging Markets Fund		$	—			$	1,117,348
International Investors Gold Fund			5,722,945				38,461,348
Multi-Manager Alternatives Fund			—				160,191
Unconstrained Emerging Markets Bond Fund			1,201,397				—

97

VAN ECK FUNDS

NOTES TO FINANCIAL STATEMENTS

(continued)

 

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the Act, each Fund is permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.

 

At December 31, 2013, the following Funds had capital loss carryforwards available to offset future capital gains as follows:

 

Fund		Post-Effective- No Expiration Short-Term Capital Losses				Post-Effective- No Expiration Long-Term Capital Losses				Expiring in the Year Ended December 31, 2017
Emerging Markets Fund		$	—			$	—			$	18,834,574
Global Hard Assets Fund			—				64,298,246				—
International Investors Gold Fund			70,888,634				65,130,517				—
Unconstrained Emerging Markets Bond Fund			7,170,250				9,866				—

 

During the year ended December 31, 2013 the Emerging Markets Fund utilized $14,610,055 of prior year capital loss carryforwards.

 

During the year ended December 31, 2013, as a result of permanent book to tax differences, primarily due to investments in Passive Foreign Investment Companies, foreign currency gains and losses, net operating losses, and distribution reclasses, the Funds incurred differences that affected undistributed (accumulated) net investment income (loss), accumulated net realized gain (loss) on investments and aggregate paid in capital by the amounts in the table below. Net assets were not affected by these reclassifications.

 

Fund		Increase/ Decrease in Accumulated Net Investment Income/Loss				Increase/ Decrease in Accumulated Net Realized Gain/Loss				Increase/ Decrease in Aggregate Paid in Capital
CM Commodity Index Fund		$	1,331,488			$	14,348,548			$	(15,680,036	)
Emerging Markets Fund			(126,812	)			250,710				(123,898	)
Global Hard Assets Fund			37,094,040				(37,086,395	)			(7,645	)
International Investors Gold Fund			37,834,723				3,630,142				(41,464,865	)
Long/Short Equity Fund			8				(8	)			—
Multi-Manager Alternatives Fund			977,399				(138,277	)			(839,122	)
Unconstrained Emerging Markets Bond Fund			(8,207,674	)			8,209,759				(2,085	)

 

The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for open tax years (tax years ended December 31, 2010-2012), or expected to be taken in the Funds’ current tax year. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements.

98

 

 

The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the year ended December 31, 2013, the Funds did not incur any interest or penalties. However, some Funds are subject to foreign taxes on the appreciation in value of certain foreign investments. The Funds provide for such taxes in both realized gain and unrealized appreciation.

 

Note 6—Concentration of Risk— The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, less reliable information about issuers, different securities transaction clearance and settlement practices, and future adverse political and economic developments. These risks are heightened for investments in emerging market countries. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of comparable U.S. issuers. Swap agreements entered into by the CM Commodity Index Fund and the Multi-Manager Alternatives Fund may be considered less liquid than other securities and may be with a limited number of issuers which could result in greater counterparty risk. Changes in laws or government regulation by the United States and/or the Cayman Islands could adversely affect the operations of the Funds. The Global Hard Assets Fund and the International Investors Gold Fund may concentrate their investments in companies which are significantly engaged in the exploration, development, production and distribution of gold and other natural resources such as strategic and other metals, minerals, forest products, oil, natural gas and coal and by investing in gold bullion and coins. In addition, the International Investors Gold Fund may invest up to 25% of its net assets in gold and silver coins, gold, silver, platinum and palladium bullion and exchange traded funds that invest in such coins and bullion and derivatives on the foregoing. Since the Funds may so concentrate, they may be subject to greater risks and market fluctuations than other more diversified portfolios. The production and marketing of gold and other natural resources may be affected by actions and changes in governments. In addition, gold and natural resources may be cyclical in nature.

 

The Long/Short Equity Fund may concentrate its investments in exchange traded products that invest directly in, or have exposure to, equity and debt securities, as well as other asset categories such as commodities and derivative instruments. Such investments may subject the exchange traded product to greater volatility than investments in traditional securities.

 

The Long/Short Equity Fund, the Multi-Manager Alternatives Fund and the Unconstrained Emerging Market Bond Fund may invest in debt securities which are rated below investment grade by rating agencies. Such securities involve more risk of default than higher rated securities and are subject to greater price variability.

 

The Multi-Manager Alternatives Fund and the Unconstrained Emerging Markets Bond Fund may invest in closed-ends funds that may trade at a discount or premium to their net asset value. A closed-end fund may be leveraged as part of its investment strategy. As a result, the Fund may be indirectly exposed to the effects of leverage through its investment in the underlying funds. Investments in underlying funds that use leverage may cause the value of the Fund’s shares to be more volatile than if the Fund invested in underlying funds that do no utilize leverage.

 

At December 31, 2013, the Adviser owned approximately 11% of Class I of the Emerging Markets Fund, and 16% of Class A, 4% of Class C and 18% of Class I of the Multi-Manager Alternatives Fund, and 97% of Class I and 97% of Class Y of the Long/Short Equity Fund.

 

Note 7—12b-1 Plans of Distribution— Pursuant to Rule 12b-1 Plans of Distribution (the “Plan”), all of the Funds are authorized to incur distribution expenses which will principally be payments to securities dealers who have sold shares and serviced shareholder accounts and payments to the Distributor, for reimbursement of other actual promotion and distribution expenses incurred by the Distributor on behalf of the Funds. The amount paid under the Plan in any one year is limited to 0.25% of average daily net assets for Class A Shares and 1.00% of average daily net assets for Class C Shares (the “Annual Limitations”).

99

VAN ECK FUNDS

NOTES TO FINANCIAL STATEMENTS

(continued)

 

Note 8—Shareholder Transactions— Shares of beneficial interest issued, reinvested and redeemed (unlimited number of $.001 par value shares authorized):

 

		CM Commodity Index Fund								Emerging Markets Fund
		Year Ended				Year Ended				Year Ended				Year Ended
		December 31, 2013				December 31, 2012				December 31, 2013				December 31, 2012
Class A
Shares sold			10,356,312				5,452,376				6,488,040				4,243,655
Shares reinvested			18,993				—				33,523				24
Shares redeemed			(7,776,257	)			(3,378,451	)			(4,231,778	)			(2,494,117	)
Net increase			2,599,048				2,073,925				2,289,785				1,749,562
Class C
Shares sold			—				—				893,034				486,282
Shares reinvested			—				—				5,898				34
Shares redeemed			—				—				(660,746	)			(599,434	)
Net increase (decrease)			—				—				238,186				(113,118	)
Class I
Shares sold			11,093,934				5,532,823				728,619				5,239
Shares reinvested			41,482				—				3,031				—
Shares redeemed			(995,741	)			(67,977	)			(320,798	)			(54	)
Net increase			10,139,675				5,464,846				410,852				5,185
Class Y
Shares sold			7,652,624				3,398,931				2,576,174				1,330,505
Shares reinvested			5,527				—				4,929				—
Shares redeemed			(3,893,131	)			(727,788	)			(1,864,957	)			(639,860	)
Net increase			3,765,020				2,671,143				716,146				690,645

 

		Global Hard Assets Fund								International Investors Gold Fund
		Year Ended				Year Ended				Year Ended				Year Ended
		December 31, 2013				December 31, 2012				December 31, 2013				December 31, 2012
Class A
Shares sold			4,759,285				7,518,328				11,621,491				11,754,148
Shares reinvested			5,260				403,297				275,846				1,041,932
Shares redeemed			(11,486,666	)			(18,574,265	)			(20,344,200	)			(16,274,131	)
Net decrease			(6,722,121	)			(10,652,640	)			(8,446,863	)			(3,478,051	)
Class C
Shares sold			658,656				1,084,128				1,814,564				2,268,851
Shares reinvested			2,021				152,685				58,477				234,838
Shares redeemed			(3,489,924	)			(3,677,298	)			(4,699,170	)			(3,665,539	)
Net decrease			(2,829,247	)			(2,440,485	)			(2,826,129	)			(1,161,850	)
Class I
Shares sold			14,432,410				11,896,908				10,267,653				3,775,708
Shares reinvested			12,542				669,573				97,304				158,791
Shares redeemed			(10,809,806	)			(6,163,831	)			(3,194,903	)			(670,590	)
Net increase			3,635,146				6,402,650				7,170,054				3,263,909
Class Y
Shares sold			4,241,625				6,492,546				4,157,575				3,887,091
Shares reinvested			1,746				94,784				21,612				84,051
Shares redeemed			(4,267,266	)			(4,062,033	)			(5,898,117	)			(2,362,467	)
Net increase (decrease)			(23,895	)			2,525,297				(1,718,930	)			1,608,675

100

 

 

		Long/Short Equity Fund					Multi-Manager Alternatives Fund
		Period Ended December 12, 2013*					Year Ended				Year Ended
		Through December 31, 2013					December 31, 2013				December 31, 2012
Class A
Shares sold			13,369					902,215				1,536,334
Shares reinvested			—					36,580				5,557
Shares redeemed			—					(3,067,018	)			(2,194,223	)
Net increase (decrease)			13,369					(2,128,223	)			(652,332	)
Class C
Shares sold			—					49,647				45,768
Shares reinvested			—					1,554				67
Shares redeemed			—					(23,388	)			(3	)
Net increase			—					27,813				45,832
Class I
Shares sold			90,097					589,888				392,390
Shares reinvested			—					22,368				1,020
Shares redeemed			—					(149,123	)			(354,000	)
Net increase			90,097					463,133				39,410
Class Y
Shares sold			11,268					786,915				1,256,576
Shares reinvested			—					7,816				1,396
Shares redeemed			—					(1,665,867	)			(718,827	)
Net increase (decrease)			11,268					(871,136	)			539,145

 

		Unconstrained Emerging Markets Bond Fund
						Period Ended July 9,
		Year Ended				2012* through
		December 31, 2013				December 31, 2012
Class A
Shares sold			7,188,679				588,360
Shares reinvested			141,585				5,258
Shares redeemed			(3,499,621	)			(215,879	)
Net increase			3,830,643				377,739
Class C
Shares sold			836,927				272,121
Shares reinvested			25,346				1,724
Shares redeemed			(296,837	)			(217,719	)
Net increase			565,436				56,126
Class I
Shares sold			7,783,665				9,914,221
Shares reinvested			193,555				42,133
Shares redeemed			(4,429,620	)			(398,654	)
Net increase			3,547,600				9,557,700
Class Y
Shares sold			1,714,012				418,559
Shares reinvested			24,861				2,507
Shares redeemed			(824,206	)			(331,384	)
Net increase			914,667				89,682
* Commencement of operations

101

VAN ECK FUNDS

NOTES TO FINANCIAL STATEMENTS

(continued)

 

Note 9—Bank Line of Credit— The Trust participates with Van Eck VIP Trust (another registered investment company managed by Adviser) (the “VE/VIP Funds”) in a $30 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the participating Funds and other temporary or emergency purposes. The participating VE/VIP Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the participating VE/VIP Funds at rates based on prevailing market rates in effect at the time of borrowings. During the year ended December 31, 2013, the following Funds borrowed under this Facility:

 

Fund		Days Outstanding				Average Daily Loan Balance				Average Interest Rate				Outstanding Loan Balance as of December 31, 2013
CM Commodity Index Fund			2			$	638,654				1.37	%			$	—
Emerging Markets Fund			8				1,275,287				1.38					—
International Investors Gold Fund			15				2,506,177				1.42					587,126
Multi-Manager Alternatives Fund			78				378,807				1.41					—
Unconstrained Emerging Markets Bond Fund			71				2,666,232				1.37					—

 

Note 10—Trustee Deferred Compensation Plan— The Trust has a Deferred Compensation Plan (the “Deferred Plan”), for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in eligible shares of the VE/VIP Funds as directed by the Trustees.

 

The expense for the Deferred Plan is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Deferred Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities.

 

Note 11—Securities Lending— To generate additional income, the Global Hard Assets Fund, International Investors Gold Fund and Multi-Manager Alternatives Fund may lend their securities pursuant to a securities lending agreement with State Street Bank & Trust Co., the securities lending agent and also the Funds’ custodian. During the year ended December 31, 2013, the Funds had no securities lending activity.

 

Note 12—Recent Accounting Pronouncements— The Funds have adopted Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities, as clarified by ASU No. 2013-01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” which requires entities to disclose gross and net information about derivative instruments, repurchase and reverse-repurchase agreements, and securities borrowing and lending transactions that are either: (1) offset in accordance with GAAP, or (2) subject to enforceable master netting arrangement or similar agreements, irrespective of whether they are offset in accordance with GAAP. In addition, ASU No. 2011-11 requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. Additional disclosure requirements of ASU No. 2011-11 and ASU No. 2013-01 are reflected in Note 2 of the Funds’ financial statements.

 

Note 13—Subsequent Event Review— The Funds have evaluated subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued.

 

The following dividends from net investment income were declared and paid subsequent to December 31, 2013:

 

Fund		Ex-Date		Record Date		Payable Date		Per Share
Unconstrained Emerging Markets Bond Fund
Class A		1/24/14		1/23/14		1/24/14		$0.051
Class C		1/24/14		1/23/14		1/24/14		$0.051
Class I		1/24/14		1/23/14		1/24/14		$0.051
Class Y		1/24/14		1/23/14		1/24/14		$0.051
Unconstrained Emerging Markets Bond Fund
Class A		2/20/14		2/19/14		2/20/14		$0.043
Class C		2/20/14		2/19/14		2/20/14		$0.043
Class I		2/20/14		2/19/14		2/20/14		$0.043
Class Y		2/20/14		2/19/14		2/20/14		$0.043

102

VAN ECK FUNDS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

The Board of Trustees and Shareholders of Van Eck Funds

 

We have audited the accompanying statements of assets and liabilities (consolidated as it relates to CM Commodity Index Fund and International Investors Gold Fund), including the schedules of investments (consolidated as it relates to CM Commodity Index Fund and International Investors Gold Fund), of Van Eck Funds (comprising, respectively, CM Commodity Index Fund, Emerging Markets Fund, Global Hard Assets Fund, International Investors Gold Fund, Long/Short Equity Fund, Multi-Manager Alternatives Fund and Unconstrained Emerging Markets Bond Fund) (the “Funds”) as of December 31, 2013, and the related statements of operations (consolidated as it relates to CM Commodity Index Fund and International Investors Gold Fund), the statements of changes in net assets (consolidated as it relates to CM Commodity Index Fund and International Investors Gold Fund) and financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective series constituting the Van Eck Funds (consolidated as it relates to CM Commodity Index Fund and International Investors Gold Fund) at December 31, 2013, the results of their operations (consolidated as it relates to CM Commodity Index Fund and International Investors Gold Fund), the changes in their net assets (consolidated as it relates to CM Commodity Index Fund and International Investors Gold Fund), and the financial highlights for the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

 

 

New York, New York
February 26, 2014

103

VAN ECK FUNDS

TAX INFORMATION

(unaudited)

 

Corporate Dividends Received Deduction

 

The Funds listed below had the following percentage of ordinary income dividends paid qualify for the Corporate Dividends Received Deduction in 2013.

 

Emerging Markets Fund			3.63	%
Global Hard Assets Fund			100	%
International Investors Gold Fund			30.77	%

 

The Funds intends to pass through foreign tax credits in the amounts shown. The gross foreign source income earned during 2013 by the Funds was as shown below.

 

	Foreign		Gross Foreign
Fund	Tax Credits		Source Income
Emerging Markets Fund	$156,560		$2,959,882
International Investors Gold Fund	$858,453		$7,012,896

104

VAN ECK FUNDS

BOARD OF TRUSTEES AND OFFICERS

(unaudited)

 

Trustee’s Name, Address (1) and Age		Position(s) Held with Trust, Term of Office (2) and Length of Time Served		Principal Occupation(s) During Past Five Years		Number of Portfolios in Fund Complex (3) Overseen by Trustee		Other Directorships Held Outside the Fund Complex (3) During the Past Five Years
Independent Trustees
Jon Lukomnik 57 (A)(G)		Trustee since March 2006		Managing Partner, Sinclair Capital LLC (consulting firm), 2000 to present; Executive Director, Investor Responsibility Research Center Institute, 2008 to present.		13		Chairman of the Board of the New York Classical Theatre: formerly Director of The Governance Fund, LLC; formerly Director of Sears Canada, Inc.
Jane DiRenzo Pigott 56 (A)(G)		Trustee since July 2007; Currently, Chairperson of the Governance Committee		Managing Director, R3 Group LLC (consulting firm), 2002 to present.		13		Formerly, Director and Chair of Audit Committee of 3E Company (environmental services); formerly Director of MetLife Investment Funds, Inc.
Wayne H. Shaner 66 (A)(G)		Trustee since March 2006		Managing Partner, Rockledge Partners LLC, 2003 to present (investment adviser); Public Member of the Investment Committee, Maryland State Retirement System since 1991.		13		Director, The Torray Funds (2 portfolios), since 1993 (Chairman of the Board since December 2005).
R. Alastair Short 60 (A)(G)		Trustee since June 2004; Currently, Vice Chairperson of the Board and Chairperson of the Audit Committee		President, Apex Capital Corporation (personal investment vehicle), January 1988 to present; Vice Chairman, W. P. Stewart & Co., Ltd. (asset management firm), September 2007 to September 2008.		66		Chairman and Independent Director, EULAV Asset Management; Independent Director, Tremont offshore funds; Director, Kenyon Review; formerly Director of The Medici Archive Project.
Richard D. Stamberger 54 (A)(G)		Trustee since 1995; Currently, Chairperson of the Board		President and CEO, SmartBrief, Inc. (business media company), 1999 to present.		66		Director, SmartBrief, Inc.; Director, Foods and Friends, Inc.
Robert L. Stelzl 68 (A)(G)		Trustee since July 2007		Trustee, Joslyn Family Trusts, 2003 to present; President, Rivas Capital, Inc. (real estate property management services company), 2004 to present; Co-Trustee, the estate of Donald Koll, 2012 to present.		13		Lead Independent Director, Brookfield Properties, Inc.; Director and Chairman, Brookfield Residential Properties, Inc.

 

 

(1)	The address for each Trustee and Officer is 335 Madison Avenue, 19th Floor, New York, New York 10017.
(2)	Each Trustee serves until resignation, death, retirement or removal. The Board established a mandatory retirement policy applicable to all Independent Trustees, which provides that Independent Trustees shall resign from the Board on December 31 of the year such Trustee reaches the age of 75.
(3)	The Fund Complex consists of Van Eck Funds, Van Eck VIP Trust and Market Vectors ETF Trust.
(A)	Member of the Audit Committee.
(G)	Member of the Governance Committee.

105

VAN ECK FUNDS

BOARD OF TRUSTEES AND OFFICERS

(unaudited) (continued)

 

Officer’s Name, Address (1) and Age		Position(s) Held with Trust		Term of Office and Length of Time Served (2)		Principal Occupations During the Past Five Years
Officers:
Russell G. Brennan, 49		Assistant Vice President and Assistant Treasurer		Since 2008		Assistant Vice President of VEAC (Since 2008); Manager (Portfolio Administration) of the VEAC (September 2005-October 2008); Officer of other investment companies advised by VEAC.
Charles T. Cameron, 53		Vice President		Since 1996		Director of Trading (Since 1995) and Portfolio Manager (Since 1997) for VEAC; Officer of other investment companies advised by VEAC.
John J. Crimmins, 56		Vice President, Treasurer, Chief Financial Officer and Principal Accounting Officer		Since 2009 (Treasurer); since 2012 (Vice President, Chief Financial Officer and Principal Accounting Officer)		Vice President of Portfolio Administration of VEAC (Since 2009); Vice President of Van Eck Securities Corporation (VESC) and the Adviser (Since 2009); Chief Financial, Operating and Compliance Officer, Kern Capital Management LLC (September 1997-February 2009); Officer of other investment companies advised by VEAC.
Wu-Kwan Kit, 32		Assistant Vice President and Assistant Secretary		Since 2011		Assistant Vice President, Associate General Counsel and Assistant Secretary of the Adviser, VESC and VEAC (Since 2011); Associate, Schulte Roth & Zabel LLP (September 2007-August 2011)
Susan C. Lashley, 58		Vice President		Since 1998		Vice President of VEAC and VESC; Officer of other investment companies advised by VEAC.
Laura I. Martínez, 33		Assistant Vice President and Assistant Secretary		Since 2008		Assistant Vice President, Associate General Counsel and Assistant Secretary of the Adviser, VESC and VEAC (Since 2008); Associate, Davis Polk & Wardwell (October 2005-June 2008); Officer of other investment companies advised by VEAC.
Joseph J. McBrien, 65		Senior Vice President, Secretary and Chief Legal Officer		Since 2006		Senior Vice President, General Counsel and Secretary of the Adviser, VESC and VEAC (Since December 2005); Director of the Adviser and VESC (since October 2010); Chief Compliance Officer of the Adviser and VEAC (March 2013-September 2013); Officer of other investment companies advised by VEAC.
Jonathan R. Simon, 39		Vice President and Assistant Secretary		Since 2006		Vice President, Associate General Counsel and Assistant Secretary of the Adviser, VESC and VEAC (Since 2006); Officer of other investment companies advised by VEAC.
Bruce J. Smith, 58		Senior Vice President		Since 1985		Senior Vice President, Chief Financial Officer, Treasurer and Controller of the Adviser, VESC and VEAC (Since 1997); Director of the Adviser, VESC and VEAC (Since October 2010); Officer of other investment companies advised by VEAC.
Janet Squitieri, 52		Chief Compliance Officer		Since September 2013		Vice President, Global Head of Compliance of the Adviser, VESC and VEARA (since September 2013); Chief Compliance Officer and Senior Vice President North America of HSBC Global Asset Management NA (August 2010-September 2013); Chief Compliance Officer North America of Babcock & Brown LP (July 2008-June 2010).
Jan F. van Eck, 50		Chief Executive Officer and President		Since 2005 (serves as Chief Executive Officer and President since 2010, prior thereto served as Executive Vice President)		President, Director and Owner of VEAC (Since July 1993); Executive Vice President of VEAC (January 1985-October 2010); Director (Since November 1985), President (Since October 2010) and Executive Vice President (June 1991-October 2010) of VESC; Director and President of the Adviser; Trustee, President and Chief Executive Officer of Market Vectors ETF Trust; Officer of other investment companies advised by VEAC.

 

 

(1)	The address for each Executive Officer is 335 Madison Avenue, 19th Floor, New York, NY 10017.
(2)	Officers are elected yearly by the Board.

106

VAN ECK FUNDS

APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS

(unaudited)

 

Van Eck Long/Short Equity Fund (the “New Fund”)

 

Approval of New Advisory Agreement

 

The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that an investment advisory agreement between a fund and its investment adviser may be entered into only if it is approved, and may continue in effect from year to year after an initial two-year period only if its continuance is approved, at least annually by the fund’s board of trustees, including by a vote of a majority of the trustees who are not “interested persons” of the fund as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of considering such approval. On September 26, 2013, the Board of Trustees (the “Board”) of Van Eck Funds (the “Trust”), which is comprised exclusively of Independent Trustees, voted to enter into a new advisory agreement (the “New Advisory Agreement”) between the New Fund and its investment adviser, Van Eck Associates Corporation (together with its affiliated companies, the “Adviser”). Information regarding the material factors considered and related conclusions reached by the Board in approving the New Advisory Agreement is set forth below.

 

In considering the approval of the New Advisory Agreement, the Board reviewed and considered information that had been provided by the Adviser throughout the year at regular and special meetings of the Board and its committees, including information furnished by the Adviser for the meeting of the Board held on September 25 and 26, 2013 specifically for the purpose of considering the approval of the New Advisory Agreement. The written and oral reports provided to the Board included, among other things, the following:

 

•	Information about the overall organization of the Adviser and the Adviser’s short-term and long-term business plans with respect to its mutual fund operations and other lines of business;
•	The consolidated financial statements of the Adviser for the past three fiscal years;
•	A description of the New Advisory Agreement and descriptions of the services to be provided by the Adviser thereunder;
•	Information regarding the qualifications, education and experience of the investment professionals responsible for portfolio management, investment research and trading activities for the New Fund, the structure of their compensation and the resources available to support these activities;
•	A report comparing the proposed management fees and non-investment management expenses of the New Fund with those of other funds with similar investment strategies managed by other investment advisers;
•	Information concerning the Adviser’s compliance program, the resources expected to be devoted to compliance efforts undertaken by the Adviser on behalf of the New Fund, and reports regarding a variety of compliance-related issues;
•	Information with respect to the Adviser’s brokerage practices, including the Adviser’s processes for monitoring best execution of portfolio transactions and the benefits received by the Adviser from research acquired with soft dollars;
•	Information regarding the procedures to be used by the Adviser in monitoring the valuation of portfolio securities, including the methodologies used in making fair value determinations;
•	Information regarding the Adviser’s policies and practices with respect to personal investing by the Adviser and its employees, including reports regarding the administration of the Adviser’s code of ethics and the Adviser’s policy with respect to investments in the New Fund by the Adviser’s investment personnel; and
•	Descriptions of other administrative and other non-investment management services provided by the Adviser for the New Fund, including the Adviser’s activities in managing relationships with the New Fund’s custodian, transfer agent and other service providers.

 

In determining whether to approve the New Advisory Agreement, the Board considered, among other things, the following: (1) the nature, quality, extent and cost of the investment management, administrative and other non-investment management services to be provided by the Adviser; (2) the nature, quality and extent of the services to be performed by the Adviser in interfacing with, and monitoring the services performed by, third parties, such as the New Fund’s custodian, transfer agent, sub-accounting agent and independent auditors, and the Adviser’s commitment and efforts to review the quality and pricing of third party service providers to the New Fund with a view to reducing non-management expenses of the New Fund; (3) the terms of the New Advisory Agreement and the services to be performed thereunder; (4) the quality of the services, procedures and processes that would be used to determine the value of the New Fund’s assets and the actions that would be taken to monitor and test the effectiveness of such services, procedures and processes; (5) the ongoing efforts of, and resources devoted by, the Adviser with respect to the development and implementation of a comprehensive compliance program; (6) the past responsiveness of the Adviser to inquiries from, and examinations by, regulatory authorities, including the Securities and Exchange Commission; (7) the resources committed

107

VAN ECK FUNDS

APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS

(unaudited) (continued)

 

by the Adviser in recent periods to information technology; and (8) the ability of the Adviser to attract and retain quality professional personnel to perform investment advisory and administrative services for the New Fund.

 

The Board considered the fact that the Adviser is managing other investment products, including exchange-traded funds, hedge funds, separate accounts and UCITs, one or more of which may invest in the same financial markets and may be managed by the same investment professionals according to a similar investment objective and/or strategy as the New Fund. The Board concluded that the management of these products contributes to the Adviser’s financial stability and is helpful to the Adviser in attracting and retaining quality portfolio management personnel for the New Fund. In addition, the Board concluded that the Adviser has established appropriate procedures to monitor conflicts of interest involving the management of the New Fund and the other products and for resolving any such conflicts of interest in a fair and equitable manner.

 

Performance. The Board did not consider performance results for the New Fund because the New Fund has not yet commenced operations.

 

Fees and Expenses. When considering the investment advisory fees to be paid by the New Fund to the Adviser, the Board considered the reasonableness of the fees and considered the fees in comparison to other funds with similar investment strategies managed by other investment advisers. The Board concluded that the advisory fees to be charged to the New Fund are reasonable.

 

Profitability and Economies of Scale. The Board did not specifically consider the profitability of the Adviser with respect to the management of the New Fund, as the New Fund had not yet commenced operations. At least annually, the Board considers profitability information about the Adviser with respect to its services for all mutual funds within the Van Eck complex of funds and, in connection therewith, the Board will consider the profitability of the New Fund following commencement of operations of the New Fund. The Board also did not specifically consider the extent to which benefits from economies of scale will be realized by the Adviser and shared with the New Fund as the assets under management grow, although such matters are expected to be considered in the future.

 

Conclusion. In determining the material factors to be considered in evaluating the New Advisory Agreement and the weight to be given to such factors, the members of the Board relied upon the advice of independent legal counsel and their own business judgment. The Board did not consider any single factor as controlling in determining whether to approve the continuation of the New Advisory Agreement and each member of the Board may have placed varying emphasis on particular factors considered in reaching a conclusion. Moreover, this summary description does not necessarily identify all of the factors considered or conclusions reached by the Board. Based on its consideration of the foregoing factors and conclusions, and such other factors and conclusions as it deemed relevant, the Board (comprised exclusively of Independent Trustees) concluded that entering into the New Advisory Agreement is in the interests of shareholders and, accordingly, the Board approved entering into the New Advisory Agreement for an initial two-year period.

 

Multi-Manager Alternatives Fund (the “Fund”)

 

Approval of New Sub-Advisory Agreement

 

The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that an investment advisory agreement between a fund and its investment adviser may be entered into only if it is approved, and may continue in effect from year to year after an initial two-year period only if its continuance is approved, at least annually by the fund’s board of trustees, including by a vote of a majority of the trustees who are not “interested persons” of the fund as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of considering such approval.

 

At an in-person meeting held on September 25-26, 2013 (the “Meeting”), the Board of Trustees of the Fund (the “Board”), which is comprised exclusively of Independent Trustees, considered authorizing Van Eck Associates Corporation (together with its affiliated companies, the “Adviser”) to enter into a new sub-advisory agreement (the “Sub-Advisory Agreement”) with respect to the Fund, for an initial two-year term with GLG, Inc., to serve as a sub-adviser for the Fund (the “New Sub-Adviser”).

 

In considering the approval of the Sub-Advisory Agreement, the Board reviewed and considered information that had been provided throughout the year by the Adviser at regular and special meetings of the Board and its committees, including information furnished by the Adviser and the New Sub-Adviser for the Meeting. This information included, among other things, information about the Adviser’s short-term and long-term business plans with respect to the Fund; a description of the Sub-Advisory Agreement, its terms, and the services to be provided and fees to be paid thereunder; and information regarding the New Sub-Adviser’s organization, personnel, investment processes and strategies, and key compliance procedures.

 

In considering whether to approve the Sub-Advisory Agreement, the Board evaluated the following factors: (1) the nature, quality, extent and cost of the investment management, administrative and other non-investment services to be provided by the New Sub-Adviser; (2) the capabilities and background of the New Sub-Adviser’s investment personnel, and the overall capabilities, experience,

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resources and strengths of the New Sub-Adviser in managing investment companies and other accounts utilizing similar investment strategies; (3) the terms of the Sub-Advisory Agreement and the reasonableness of the fees paid by the Fund for the services described therein; (4) the willingness and ability of the New Sub-Adviser to implement its investment strategy for the Fund with a small amount of assets at the inception of the sub-advisory relationship; (5) the scalability of the New Sub-Adviser’s processes and procedures over time; and (6) the Fund’s structure and the manner in which the New Sub-Adviser’s investment strategy will assist the Fund in pursuing its investment objective. The Board also met with representatives from the New Sub-Adviser.

 

In considering the proposal to approve the Sub-Advisory Agreement, the Board noted that, combined, the members of the New Sub-Adviser’s portfolio management team have significant experience in the securities industry. The Board also considered the importance to the Fund of having access to investment advisers with experience running certain types of investment strategies and the relatively small number of investment advisers available to the Fund with experience in deploying these investment strategies, e.g. the New Sub-Adviser is experienced in long/short equity strategies.

 

The Board concluded that the New Sub-Adviser is qualified to manage the Fund’s assets in accordance with the Fund’s investment objective and policies. The Board also concluded that the New Sub-Adviser’s investment strategies are appropriate for pursuing the Fund’s investment objective and are complementary to the investment strategies employed by the Fund’s other sub-advisers. The Board further concluded that the fees payable to the New Sub-Adviser for sub-advisory services are reasonable.

 

In view of the fact that the New Sub-Adviser is not affiliated with the Adviser, the Board concluded that the profitability of the New Sub-Adviser was not a relevant factor in its consideration of the Sub-Advisory Agreement.

 

In determining the material factors to be considered in evaluating the Sub-Advisory Agreement and the weight to be given to such factors, the members of the Board relied upon the advice of independent legal counsel and their own business judgment. The Board did not consider any single factor as controlling in determining whether to approve the Sub-Advisory Agreement and each member of the Board may have placed varying emphasis on particular factors considered in reaching a conclusion. Moreover, this summary description does not necessarily identify all of the factors considered or conclusions reached by the Board. Based on its consideration of the foregoing factors and conclusions, and such other factors and conclusions as it deemed relevant, the Board (comprised exclusively of Independent Trustees) concluded that entering into the Sub-Advisory Agreement is in the interests of shareholders, and accordingly, the Board approved entering into the Sub-Advisory Agreement.

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This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a Van Eck Funds (the “Trust”) Prospectus and Summary Prospectus, which includes more complete information. An investor should consider the investment objective, risks, and charges and expenses of the Funds carefully before investing. The prospectus and summary prospectus contains this and other information about the investment company. Please read the prospectus carefully before investing.

 

Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.

 

The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Form N-Qs are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1.202.942.8090. The Fund’s complete schedule of portfolio holdings is also available by calling 800.826.2333 or by visiting vaneck.com.

 

 

 

Investment Adviser:		Van Eck Associates Corporation
Distributor:		Van Eck Securities Corporation
		335 Madison Avenue, New York, NY 10017
Account Assistance:		800.544.4653
vaneck.com
		VEFAR

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