ck0000768847-20211231
VanEck
Funds
Emerging Markets Fund
Class
A: GBFAX / Class C: EMRCX / Class I: EMRIX / Class Y: EMRYX / Class Z: EMRZX
Emerging Markets Leaders
Fund
Class
A: ELMAX / Class I: ELMIX / Class Y: ELMYX / Class Z: ELMZX
Environmental Sustainability Fund
Class
A: ENVAX / Class I: ENVIX / Class Y: ENVYX
Global Resources Fund
Class
A: GHAAX / Class C: GHACX / Class I: GHAIX / Class Y: GHAYX
International Investors Gold
Fund
Class
A: INIVX / Class C: IIGCX / Class I: INIIX / Class Y: INIYX
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These
securities have not been approved or disapproved either by the U.S.
Securities and Exchange Commission (SEC), or by any State Securities
Commission. Neither the SEC nor any State Commission has passed upon the
accuracy or adequacy of this prospectus. Any claim to the contrary is a
criminal offense. |
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800.826.2333 vaneck.com
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TABLE
OF CONTENTS |
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I.
Summary Information |
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Emerging
Markets Fund (Class A, C, I, Y, Z) |
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Emerging
Markets Leaders Fund (Class A, I, Y, Z) |
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Environmental
Sustainability Fund (Class A, I, Y) |
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Global
Resources Fund (Class A, C, I, Y) |
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International
Investors Gold Fund (Class A, C, I, Y) |
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II.
Investment Objectives, Strategies, Policies, Risks and Other
Information |
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1.
Investment Objectives |
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2.
Additional Information About Principal Investment Strategies and
Risks |
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3.
Additional Investment Strategies |
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4.
Other Information and Policies |
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III.
Shareholder Information |
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1.
How to Buy, Sell, Exchange or Transfer Shares |
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2.
How to Choose a Class of Shares |
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3.
Sales Charges |
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4.
Householding of Reports and Prospectuses |
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5.
Retirement Plans |
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6.
Federal Income Taxes |
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7.
Dividends and Capital Gains Distributions |
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8.
Management of the Funds and Service Providers |
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IV.
Financial Highlights |
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Appendix
A: Intermediary Sales Charge Discounts and Waivers |
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EMERGING
MARKETS FUND (CLASS A, C, I, Y,
Z) |
SUMMARY
INFORMATION
INVESTMENT OBJECTIVE
The Emerging Markets Fund
seeks long-term capital appreciation by investing primarily in equity securities
in emerging markets around the world.
FUND FEES AND EXPENSES
This
table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for Class A sales charge
discounts if you and your family (includes spouse and children under age 21)
invest, or agree to invest in the future, at least $25,000, in the
aggregate, in Classes A and C of the VanEck
Funds. More
information about these and other discounts is available from your financial
professional and in the “Shareholder Information-Sales Charges” section of this
prospectus, in the “Availability of Discounts” section of the Fund’s Statement
of Additional Information (“SAI”) and, with respect to purchases of shares
through specific intermediaries, in Appendix A to this prospectus, entitled
“Intermediary Sales Charge Discounts and Waivers”. Investors
may pay commissions and/or other forms of compensation to an intermediary, such
as a broker, for transactions in Class Z shares, which are not reflected in the
table or the example below.
Shareholder
Fees
(fees
paid directly from your investment)
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Class
A |
Class
C |
Class
I |
Class
Y |
Class
Z |
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Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.75% |
0.00% |
0.00% |
0.00% |
0.00% |
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Maximum
Deferred Sales Charge (load) (as a percentage of the lesser of the net
asset value or purchase price) |
0.00%¹ |
1.00% |
0.00% |
0.00% |
0.00% |
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Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Class
A |
Class
C |
Class
I |
Class
Y |
Class
Z |
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Management
Fees |
0.75% |
0.75% |
0.75% |
0.75% |
0.75% |
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Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.00% |
0.00% |
0.00% |
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Other
Expenses |
0.45% |
0.50% |
0.39% |
0.38% |
0.33% |
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Total
Annual Fund Operating Expenses |
1.45% |
2.25% |
1.14% |
1.13% |
1.08% |
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Fee
Waivers and/or Expense Reimbursements2 |
0.00% |
0.00% |
-0.14% |
-0.03% |
-0.18% |
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Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursements |
1.45% |
2.25% |
1.00% |
1.10% |
0.90% |
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1
A contingent deferred
sales charge for Class A shares of 1.00% for one year applies to redemptions of
qualified commissionable shares purchased at or above the $1 million breakpoint
level.
2
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
and interest payments on securities sold short, taxes and extraordinary
expenses) from exceeding 1.60% for Class A, 2.50% for Class C, 1.00% for Class
I, 1.10% for Class Y, and 0.90% for Class Z of the Fund’s average daily net
assets per year until May 1,
2023. 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.
EXPENSE EXAMPLE
The following example
is intended to help you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes that you invest $10,000
in the Fund for the time periods indicated and then either redeem all of your
shares at the end of these periods or continue to hold them. The example also
assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same, and applies fee waivers and/or expense
reimbursements, if any, for the periods indicated above under “Annual Fund
Operating Expenses.” Although your actual expenses may be higher or lower, based
on these assumptions, your costs would be:
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Share
Status |
1
Year |
3
Years |
5
Years |
10
Years |
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Class
A |
Sold
or Held |
$714 |
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$1,007 |
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$1,322 |
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$2,210 |
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Class
C |
Sold |
$328 |
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$703 |
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$1,205 |
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$2,585 |
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Held |
$228 |
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$703 |
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$1,205 |
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$2,585 |
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Class
I |
Sold
or Held |
$102 |
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$348 |
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$614 |
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$1,374 |
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Class
Y |
Sold
or Held |
$112 |
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$356 |
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$619 |
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$1,372 |
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Class
Z |
Sold
or Held |
$92 |
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$326 |
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$578 |
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$1,301 |
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PORTFOLIO
TURNOVER
The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate that the Fund pays
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 38% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES
Under
normal conditions, the Fund invests at least 80% of its net assets in securities
of companies that are organized in, maintain at least 50% of their assets in, or
derive at least 50% of their revenues from, emerging market countries. The
Adviser has broad discretion to identify countries that it considers to qualify
as emerging markets. The Adviser selects emerging market countries that the Fund
will invest in based on the Adviser’s evaluation of economic fundamentals, legal
structure, political developments and other specific factors the Adviser
believes to be relevant.
Utilizing
qualitative and quantitative measures, the Adviser seeks to invest in
reasonably-priced companies that have strong structural growth potential. The
Adviser seeks attractive investment opportunities in all areas of emerging
markets, and utilizes a flexible investment approach across all market
capitalizations. The Adviser seeks to (i) integrate financially-material
environmental, social and governance (“ESG”) factors into the Fund’s investment
process and (ii) reduce material exposure to issuers that the Adviser deems
controversial in the ESG universe.
The
Fund’s holdings may include issues denominated in currencies of emerging market
countries, investment companies (like country funds) that invest in emerging
market countries, and depositary receipts, and similar types of investments,
representing emerging market securities.
The
Fund may invest up to 20% of its net assets in securities issued by other
investment companies, including exchange-traded funds (“ETFs”). The Fund may
also invest in money market funds, but these investments are not subject to this
limitation. The Fund may invest in ETFs to participate in, or gain exposure to,
certain market sectors, or when direct investments in certain countries are not
permitted or available. The Fund may also invest in restricted securities,
including Rule 144A securities.
PRINCIPAL RISKS
There
is no assurance that the Fund will achieve its investment objective.
The Fund’s share price and return will fluctuate with
changes in the market value of the Fund’s portfolio securities. Accordingly, an
investment in the Fund involves the risk of losing
money.
Chinese
Issuers.
Investing in securities of Chinese issuers (including companies located or
operating in Hong Kong and the Taiwan region) involves certain risks and
considerations not typically associated with investing in securities of U.S.
issuers. These may include, among others, (i) more frequent (and potentially
widespread) trading suspensions and government interventions with respect to
Chinese issuers, resulting in lack of liquidity and in price volatility; (ii)
currency revaluations and other currency exchange rate fluctuations or blockage;
(iii) the nature and extent of intervention by the Chinese government in the
Chinese securities markets (including both direct and indirect market
stabilization efforts, which may affect valuations of Chinese issuers), whether
such intervention will continue and the impact of such intervention or its
discontinuation; difficulty in obtaining information necessary for
investigations into and/or litigation against Chinese companies, as well as in
obtaining and/or enforcing judgments; limited legal remedies for shareholders;
(iv) the risk of nationalization or expropriation of assets; (v) the risk that
the Chinese government may decide not to continue to support economic reform
programs; (vi) limitations on the use of brokers (or action by the Chinese
government that discourages brokers from serving international clients); (vii)
higher rates of inflation; (viii) greater political, economic and social
uncertainty; (ix) market volatility caused by any potential regional or
territorial conflicts or natural or other disasters; (x) the risk of increased
trade tariffs, embargoes, sanctions, investment restrictions and other trade
limitations; (xi) China custody risks associated with investing via the Stock
Connect Program; (xii) both interim and permanent market regulations which may
affect the ability of certain stockholders to sell Chinese securities when it
would otherwise be advisable, (xiii) foreign ownership limits of any listed
Chinese company and (xiv) the general risks applicable to the Stock Connect.
Export growth
continues
to be a major driver of China’s rapid economic growth. As a result, a reduction
in spending on Chinese products and services, the institution of tariffs or
other trade barriers, or a downturn in any of the economies of China's key
trading partners may have an adverse impact on the Chinese economy.
Additionally, the inability of the Public Company Accounting Oversight Board
(“PCAOB”) to inspect audit work papers and practices of PCAOB-registered
accounting firms in China with respect to their audit work of U.S. reporting
companies may impose significant additional risks associated with investments in
China.
Direct
Investments.
Direct investments may involve a high degree of business and financial risk that
can result in substantial losses. Because of the absence of any public trading
market for these investments, the Fund may take longer to liquidate these
positions than would be the case for publicly traded securities. Direct
investments are generally considered illiquid and will be aggregated with other
illiquid investments for purposes of the limitation on illiquid
investments.
Emerging
Market Securities.
Emerging market securities typically present even greater exposure to the risks
described under “Foreign Securities” and may be particularly sensitive to
certain economic changes. Emerging market securities are exposed to a number of
risks that may make these investments volatile in price or difficult to evaluate
and trade. Companies in emerging market countries generally may be subject to
less stringent financial reporting, regulatory, disclosure, accounting, auditing
and recordkeepeing standards than companies in more developed countries. In
addition, securities law and the enforcement of systems of taxation in many
emerging market countries may change quickly and unpredictably, and the ability
to bring and enforce actions, or to obtain information needed to pursue or
enforce such actions, may be limited.
ESG
Investing Risk. The
Adviser’s consideration of ESG risks and opportunities in the Fund’s investment
process could result in the Fund performing differently compared to funds that
do not take into account ESG considerations. The Adviser’s consideration of ESG
risks and opportunities may result in the Fund investing in securities,
industries, or sectors that underperform other securities, industries, or
sectors, or underperform the market as a whole. The Fund is also subject to the
risk that the companies identified by the Adviser do not operate as expected
when addressing ESG issues. Regulatory changes or interpretations regarding the
definitions and/or use of ESG criteria could have a material adverse effect on
the Fund’s ability to invest in accordance with its ESG
considerations.
Foreign
Currency Transactions.
An investment transacted in a foreign currency may lose value due to
fluctuations in the rate of exchange. These fluctuations can make the return on
an investment go up or down, entirely apart from the quality or performance of
the investment itself.
Foreign
Securities.
Investments in the securities of foreign issuers involve risks beyond those
associated with investments in U.S. securities. These additional risks include
greater market volatility, the availability of less reliable financial
information, higher transactional and custody costs, taxation by foreign
governments, decreased market liquidity and political instability. Because
certain foreign securities markets may be limited in size, the activity of large
traders may have an undue influence on the prices of securities that trade in
such markets. The Fund invests in securities of issuers located in countries
whose economies are heavily dependent upon trading with key partners. Any
reduction in this trading may have an adverse impact on the Fund’s
investments.
Indian
Issuers Risk.
Investing in securities of Indian issuers involves risks not typically
associated with investments in securities of issuers in more developed countries
that may negatively affect the value of your investment in the Fund. Such
heightened risks include, among others, greater government control over the
economy, political and legal uncertainty, currency fluctuations or blockage of
foreign currency exchanges and the risk of nationalization or expropriation of
assets. Issuers in India are subject to less stringent requirements regarding
accounting, auditing and financial reporting than are issuers in more developed
markets, and therefore, all material information may not be available or
reliable. In addition, religious and border disputes persist in India. India has
experienced civil unrest and hostilities with neighboring countries, including
Pakistan, and the Indian government has confronted separatist movements in
several Indian states. India has also experienced acts of terrorism that have
targeted foreigners, which have had a negative impact on tourism, an important
sector of the Indian economy. The Indian securities markets are smaller than
securities markets in more developed economies and are subject to greater price
volatility. Indian stock exchanges have also experienced problems such as
temporary exchange closures, broker defaults, settlement delays and strikes by
brokers that have affected the market price and liquidity of the securities of
Indian companies. In addition, the governing bodies of the Indian stock
exchanges have from time to time restricted securities from trading, limited
price movements and restricted margin requirements. Further, from time to time,
disputes have occurred between listed companies and the Indian stock exchanges
and other regulatory bodies that, in some cases, have had a negative effect on
market sentiment. Certain restrictions on foreign investment may decrease the
liquidity of the Fund's portfolio. In addition, the Reserve Bank of India, the
Indian counterpart of the Federal Reserve Bank in the United States, imposes
certain limits on the foreign ownership of Indian securities. These restrictions
and/or controls may at times limit or prevent foreign investment in securities
of issuers located or operating in India.
Investing
in the Communication Services Sector.
The Fund may be sensitive to changes in, and its performance may depend to a
greater extent on, the overall condition of the communication services sector.
Companies in the communication services sector may be affected by industry
competition, substantial capital requirements, government regulations and
obsolescence of communications products and services due to technological
advancement.
Investing
in the Consumer Discretionary Sector.
The Fund may be sensitive to changes in, and its performance may depend to a
greater extent on, the overall condition of the consumer discretionary sector.
The consumer discretionary sector comprises companies whose businesses are
sensitive to economic cycles, such as manufacturers of high-end apparel and
automobile and
leisure
companies. Companies engaged in the consumer discretionary sector are subject to
fluctuations in supply and demand. These companies may also be adversely
affected by changes in consumer spending as a result of world events, political
and economic conditions, commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources and
labor relations.
Investing
in the Financial Services Sector.
The Fund may be sensitive to changes in, and its performance may depend to a
greater extent on, the overall condition of the financial services sector.
Companies in the financial services sector may be subject to extensive
government regulation that affects the scope of their activities, the prices
they can charge and the amount of capital they must maintain. The profitability
of companies in the financial services sector may be adversely affected by
increases in interest rates, by loan losses, which usually increase in economic
downturns, and by credit rating downgrades. In addition, the financial services
sector is undergoing numerous changes, including continuing consolidations,
development of new products and structures and changes to its regulatory
framework. Furthermore, some companies in the financial services sector
perceived as benefitting from government intervention in the past may be subject
to future government-imposed restrictions on their businesses or face increased
government involvement in their operations. Increased government involvement in
the financial services sector, including measures such as taking ownership
positions in financial institutions, could result in a dilution of the Fund’s
investments in financial institutions. Recent developments in the credit markets
may cause companies operating in the financial services sector to incur large
losses, experience declines in the value of their assets and even cease
operations.
Investing
in the Information Technology Sector.
The Fund may be sensitive to changes in, and its performance may depend to a
greater extent on, the overall condition of the information technology sector.
Information technology companies face intense competition, both domestically and
internationally, which may have an adverse effect on profit margins. Information
technology companies may have limited product lines, markets, financial
resources or personnel. The products of information technology companies may
face product obsolescence due to rapid technological developments and frequent
new product introduction, unpredictable changes in growth rates and competition
for the services of qualified personnel. Companies in the information technology
sector are heavily dependent on patent protection and the expiration of patents
may adversely affect the profitability of these companies.
Investments
in Other Investment Companies. The
Fund’s investment in another investment company may subject the Fund indirectly
to the underlying risks of the investment company. The Fund also may bear its
share of the underlying investment company’s fees and expenses, which are in
addition to the Fund’s own fees and expenses.
Investments
through Stock Connect.
The
Fund’s investments in Chinese A-shares through Stock Connect may be subject to a
number of restrictions that may affect the Fund’s investments and returns. For
example, purchases of A-shares through Stock Connect are subject to a daily
quota which does not belong to the Fund and can only be utilized on a
first-come-first-serve basis. Once the daily quota is exceeded, buy orders will
be rejected. The Fund's ability to invest in A-Shares may therefore be limited.
In addition, investments made through Stock Connect are subject to trading,
clearance and settlement procedures that are relatively untested in the PRC,
which could pose risks to the Fund. Furthermore, securities purchased via Stock
Connect will be held via a book entry omnibus account in the name of HKSCC, Hong
Kong’s clearing entity, at the CSDCC. The Fund’s ownership interest in Stock
Connect securities will not be reflected directly in book entry with CSDCC and
will instead only be reflected on the books of its Hong Kong sub-custodian. The
Fund may therefore depend on HKSCC’s ability or willingness as record-holder of
Stock Connect securities to enforce the Fund’s shareholder rights. PRC law did
not historically recognize the concept of beneficial ownership; while PRC
regulations and the Hong Kong Stock Exchange have issued clarifications and
guidance supporting the concept of beneficial ownership via Stock Connect, the
interpretation of beneficial ownership in the PRC by regulators and courts may
continue to evolve. Moreover, Stock Connect A-shares generally may not be sold,
purchased or otherwise transferred other than through Stock Connect in
accordance with applicable rules.
A
primary feature of Stock Connect is the application of the home market’s laws
and rules applicable to investors in A-shares. Therefore, the Fund’s investments
in Stock Connect A-shares are generally subject to PRC securities regulations
and listing rules, among other restrictions. Stock Connect is only available on
days when markets in both the PRC and Hong Kong are open, which may limit the
Fund’s ability to trade when it would be otherwise attractive to do so.
Uncertainties in permanent PRC tax rules governing the taxation of income and
gains from investments in Stock Connect A-shares could result in unexpected tax
liabilities for the Fund. The Stock Connect program is a relatively new program
and may be subject to further interpretation and guidance. There can be no
assurance as to the program’s continued existence or whether future developments
regarding the program may restrict or adversely affect the Fund’s investments or
returns.
In
addition, the application and interpretation of the laws and regulations of Hong
Kong and the PRC, and the rules, policies or guidelines published or applied by
relevant regulators and exchanges in respect of the Stock Connect program are
uncertain, and they may have a detrimental effect on the Fund’s investments and
returns.
Latin
American Issuers.
Investments in securities of Latin American issuers involve special
considerations not typically associated with investments in securities of
issuers located in the United States. The economies of certain Latin American
countries have, at times, experienced high interest rates, economic volatility,
inflation, currency devaluations and high unemployment rates. In addition,
commodities (such as oil, gas and minerals) represent a significant percentage
of the region’s exports and many economies in this region are particularly
sensitive to fluctuations in commodity prices. Adverse economic events
in
one country may have a significant adverse effect on other countries of this
region. Most Latin American countries have experienced, at one time or another,
severe and persistent levels of inflation, including, in some cases,
hyperinflation. This has, in turn, led to high interest rates, extreme measures
by governments to keep inflation in check, and a generally debilitating effect
on economic growth.
Management.
Investment decisions made by the Adviser in seeking to achieve the Fund’s
investment objective may not produce the returns expected by the Adviser, may
cause a decline in the value of the securities held by the Fund and, in turn,
cause the Fund’s shares to lose value or underperform other funds with similar
investment objectives.
Market
Risk.
The prices of the securities in the Fund are subject to the risks associated
with investing in the securities market, including general economic conditions,
sudden and unpredictable drops in value, exchange trading suspensions and
closures and public health risks. These risks may be magnified if certain
social, political, economic and other conditions and events (such as natural
disasters, epidemics and pandemics, terrorism, conflicts and social unrest)
adversely interrupt the global economy; in these and other circumstances, such
events or developments might affect companies world-wide. An investment in
the Fund may lose money.
Operational.
The Fund is exposed to operational risk arising from a number of factors,
including but not limited to, human error, processing and communication errors,
errors of the Fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or system failures.
Restricted
Securities Risk. The
Fund may hold securities that are restricted as to resale under the U.S. Federal
securities laws, such as securities in certain privately held companies. Such
securities may be highly illiquid and their values may experience significant
volatility. Restricted securities may be difficult to value.
Sectors.
The
Fund may be subject to greater risks and market fluctuations than a fund whose
portfolio has exposure to a broader range of sectors. The Fund may be
susceptible to financial, economic, political or market events, as well as
government regulation, impacting the financial services, information technology,
communication and consumer discretionary sectors.
Small-
and Medium-Capitalization Companies.
Securities of small- and medium-sized companies often have greater price
volatility, lower trading volume and less liquidity than larger, more
established companies. The stocks of small- and medium-sized companies may have
returns that vary, sometimes significantly, from the overall stock
market.
Special Purpose Acquisition
Companies. Equity securities include stock, rights,
warrants, and other interests in Special Purpose Acquisition Companies (“SPACs”)
or similar special purpose entities. A SPAC is typically a publicly traded
company that raises investment capital via an initial public offering for the
purpose of acquiring one or more existing companies (or interests therein) via
merger, combination, acquisition or other similar transactions. Since SPACs have
no operating history or ongoing business other than seeking a transaction, the
value of their securities may be particularly dependent on the quality of its
management and on the ability of the SPAC’s management to identify and complete
a profitable transaction. Additionally, the securities issued by a SPAC may
become illiquid and/or may be subject to restrictions on resale, among other
risks.
PERFORMANCE
The following
chart and table provide some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing how
the Fund’s average annual total returns compare with those of a broad measure of
market performance. For instance, the MSCI Emerging Markets
Investable Markets Index is an all market capitalization index that is designed
to measure equity market performance of emerging markets countries.
The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. The annual returns in the bar chart
are for the Fund’s Class A shares and do not reflect sales loads. If sales loads
were reflected, returns would be lower than those
shown.
Additionally, large purchases and/or
redemptions of shares of a class, relative to the amount of assets represented
by the class, may cause the annual returns for each class to differ. Updated
performance information for the Fund is available on the VanEck website at
vaneck.com.
CLASS A: Annual Total Returns (%) as of
12/31
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Best
Quarter: |
+25.07% |
2Q
2020 |
Worst
Quarter: |
-25.90% |
1Q
2020 |
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Average Annual Total Returns as of
12/31/2021 |
1
Year |
5
Years |
10
Years |
Life
of Class |
|
|
Class
A Shares
(12/20/93) |
|
|
|
|
|
|
Before Taxes |
-17.20% |
7.47% |
6.01% |
— |
|
|
After
Taxes on Distributions1 |
-18.69% |
7.06% |
5.79% |
— |
|
|
After Taxes on Distributions and Sale
of Fund Shares |
-9.14% |
5.94% |
4.87% |
— |
|
|
Class
C Shares
(10/3/03) |
|
|
|
|
|
|
Before Taxes |
-13.67% |
7.90% |
5.77% |
— |
|
|
Class
I Shares
(12/31/07) |
|
|
|
|
|
|
Before Taxes |
-11.76% |
9.27% |
7.15% |
— |
|
|
Class
Y Shares
(4/30/10) |
|
|
|
|
|
|
Before Taxes |
-11.84% |
9.17% |
7.00% |
— |
|
|
Class
Z Shares
(9/16/19) |
|
|
|
|
|
|
Before Taxes |
-11.66% |
— |
— |
4.65% |
|
|
MSCI
Emerging Markets Investable Markets Index
(reflects no deduction for
fees, expenses or taxes except withholding
taxes) |
-0.28% |
10.06% |
5.71% |
— |
|
|
|
|
|
|
|
|
1 After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
These returns are shown for
one class of shares only; after-tax returns for the other classes may
vary. Actual after-tax returns depend on your individual tax
situation and may differ from those shown in the preceding table. The after-tax return
information shown above does not apply to Fund shares held through a
tax-advantaged account, such as a 401(k) plan or Investment Retirement
Account.
PORTFOLIO
MANAGEMENT
Investment
Adviser.
Van Eck Associates Corporation
Portfolio
Managers.
David
Semple has been Portfolio Manager of the Fund since 2002. Angus Shillington has
been Deputy Portfolio Manager of the Fund since 2014. Mr. Shillington has worked
at the Adviser as a Senior Analyst since 2009.
PURCHASE
AND SALE OF FUND SHARES
In
general, shares of the Fund may be purchased or redeemed on any business day,
primarily through financial representatives such as brokers or advisers, or
directly by eligible investors through the Fund’s transfer agent. Purchase
minimums for Classes A,
C
and Y shares are $1,000 for an initial purchase and $100 for a subsequent
purchase, with no purchase minimums for any purchase through a retirement or
pension plan account, for any “wrap fee” account and similar programs offered
without a sales charge by certain financial institutions and third-party
recordkeepers and/or administrators, and for any account using the Automatic
Investment Plan, or for any other periodic purchase program. Class Z shares have
no initial or subsequent purchase minimums, although financial intermediaries
may have their own minimums. Purchase minimums for Class I shares are $1 million
for an initial purchase and no minimum for a subsequent purchase; the initial
minimum may be reduced or waived at the Adviser’s discretion.
TAX
INFORMATION
The
Fund normally distributes net investment income and net realized capital gains,
if any, to shareholders annually. These distributions are generally taxable to
you as ordinary income or capital gains, unless you are investing through a tax
advantaged retirement account, such as a 401(k) plan or an individual retirement
account (IRA), in which case your distributions may be taxed as ordinary income
when withdrawn from such account.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its affiliates may pay the intermediary for
the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your financial professional to recommend the Fund over another investment. Ask
your financial professional or visit your financial intermediary’s website for
more information.
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|
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EMERGING
MARKETS LEADERS FUND (CLASS A, I, Y,
Z) |
SUMMARY
INFORMATION
INVESTMENT OBJECTIVE
The Emerging Markets Leaders
Fund seeks long-term capital appreciation by investing primarily in equity
securities in emerging markets around the world.
FUND FEES AND EXPENSES
This
table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.
You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below.
You may qualify for Class A sales charge
discounts if you and your family (includes spouse and children under age 21)
invest, or agree to invest in the future, at least $25,000, in the aggregate, in Classes A
and C of the VanEck Funds. More information about these and
other discounts is available from your financial professional and in the
“Shareholder Information-Sales Charges” section of this prospectus, in the
“Availability of Discounts” section of the Fund’s Statement of Additional
Information (“SAI”) and, with respect to purchases of shares through specific
intermediaries, in Appendix A to this prospectus, entitled “Intermediary Sales
Charge Discounts and Waivers”. Investors
may pay commissions and/or other forms of compensation to an intermediary, such
as a broker, for transactions in Class Z shares, which are not reflected in the
table or the example below.
Shareholder
Fees
(fees paid directly from your
investment)
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Class
A |
Class
I |
Class
Y |
Class
Z |
|
|
Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.75% |
0.00% |
0.00% |
0.00% |
|
|
Maximum
Deferred Sales Charge (load) (as a percentage of the lesser of the net
asset value or purchase price) |
0.00%¹ |
0.00% |
0.00% |
0.00% |
|
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|
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|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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|
Class
A |
Class
I |
Class
Y |
Class
Z |
|
|
Management
Fees |
0.75% |
0.75% |
0.75% |
0.75% |
|
|
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.00% |
0.00% |
0.00% |
|
|
Other
Expenses2 |
0.41% |
0.32% |
0.34% |
0.38% |
|
|
Total
Annual Fund Operating Expenses |
1.41% |
1.07% |
1.09% |
1.13% |
|
|
Fee
Waivers and/or Expense Reimbursements3 |
0.00% |
-0.22% |
-0.14% |
-0.38% |
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursements |
1.41% |
0.85% |
0.95% |
0.75% |
|
|
|
|
|
|
|
|
1
A contingent deferred
sales charge for Class A shares of 1.00% for one year applies to redemptions of
qualified commissionable shares purchased at or above the $1 million breakpoint
level.
2
“Other Expenses” are based
on estimated amounts for the current fiscal
year.
3
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
and interest payments on securities sold short, taxes and extraordinary
expenses) from exceeding 1.45% for Class A, 0.85% for Class I, 0.95% for Class
Y, and 0.75% for Class Z of the Fund’s average daily net assets per year until
May 1,
2023. 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.
EXPENSE EXAMPLE
The following example
is intended to help you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes that you invest $10,000
in the Fund for the time periods indicated and then either redeem all of your
shares at the end of these periods or continue to hold them. The example also
assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same, and applies fee waivers and/or expense
reimbursements, if any, for the periods indicated above under “Annual Fund
Operating Expenses.” Although your actual expenses may be higher or lower, based
on these assumptions, your costs would be:
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|
Share
Status |
1
Year |
3
Years |
|
|
|
|
Class
A |
Sold or
Held |
$710 |
|
$996 |
|
|
|
|
|
Class
I |
Sold
or Held |
$87 |
|
$318 |
|
|
|
|
|
Class
Y |
Sold
or Held |
$97 |
|
$333 |
|
|
|
|
|
Class
Z |
Sold
or Held |
$77 |
|
$321 |
|
|
|
|
|
|
|
|
|
|
|
|
PORTFOLIO
TURNOVER
The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate that the Fund pays
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the Fund’s performance. Because the
Fund is newly organized, no portfolio turnover figures are
available.
PRINCIPAL INVESTMENT
STRATEGIES
Under
normal conditions, the Fund invests at least 80% of its net assets in equity
securities of companies that are organized in, maintain at least 50% of their
assets in, or derive at least 50% of their revenues from, emerging market
countries. The Adviser has broad discretion to identify countries that it
considers to qualify as emerging markets. The Adviser selects emerging market
countries that the Fund will invest in based on the Adviser’s evaluation of
economic fundamentals, legal structure, political developments and other
specific factors the Adviser believes to be relevant. The Fund is considered to
be “non-diversified” which means that it may invest a larger portion of its
assets in a single issuer.
Utilizing
qualitative and quantitative measures, the Adviser seeks to invest in
reasonably-priced companies that have strong structural growth potential. The
Adviser seeks attractive investment opportunities in all areas of emerging
markets, and utilizes a flexible investment approach across medium and large
market capitalizations. The Adviser seeks to (i) integrate financially-material
environmental, social and governance (“ESG”) factors into the Fund’s investment
process and (ii) reduce material exposure to issuers that the Adviser deems
controversial in the ESG universe.
The
Fund’s holdings may include issues denominated in currencies of emerging market
countries, investment companies (like country funds) that invest in emerging
market countries, and depositary receipts, and similar types of investments,
representing emerging market securities. The Fund may enter into foreign
currency transactions to attempt to moderate the effect of currency
fluctuations. The Fund may also invest in special purpose acquisition companies
(SPACs).
The
Fund may invest up to 20% of its net assets in securities issued by other
investment companies, including exchange-traded funds (“ETFs”). The Fund may
also invest in money market funds, but these investments are not subject to this
limitation. The Fund may invest in ETFs to participate in, or gain exposure to,
certain market sectors, or when direct investments in certain countries are not
permitted or available. The Fund may also invest in restricted securities,
including Rule 144A securities.
PRINCIPAL RISKS
There
is no assurance that the Fund will achieve its investment objective.
The Fund’s share price and return will fluctuate with
changes in the market value of the Fund’s portfolio securities. Accordingly, an
investment in the Fund involves the risk of losing
money.
Depositary
Receipts Risk. Depositary
receipts are certificates that evidence ownership of shares of a foreign issuer
and are alternatives to purchasing the underlying foreign securities directly in
their national markets and currencies. Depositary receipts may be subject to
certain of the risks associated with direct investments in the securities of
foreign companies, such as currency, political, economic and market risks,
because their values depend on the performance of the non-dollar denominated
underlying foreign securities. Moreover, depositary receipts may not track the
price of the underlying foreign securities on which they are based, and their
value may change materially at times when U.S. markets are not open for trading.
The issuers of certain depositary receipts are under no obligation to distribute
shareholder communications to the holders of such receipts, or to pass through
to them any voting rights with respect to the deposited securities. Investments
in depositary receipts may be less liquid than the underlying shares in their
primary trading market. The issuers of depositary receipts may discontinue
issuing new depositary receipts and withdraw existing depositary receipts at any
time, which may result in costs and delays in the distribution of the underlying
assets to the Fund and may negatively impact the Fund’s
performance.
Chinese
Issuers.
Investing in securities of Chinese issuers (including companies located or
operating in Hong Kong and the Taiwan region) involves certain risks and
considerations not typically associated with investing in securities of U.S.
issuers. These may include, among others, (i) more frequent (and potentially
widespread) trading suspensions and government interventions with respect to
Chinese issuers, resulting in lack of liquidity and in price volatility; (ii)
currency revaluations and other currency exchange rate fluctuations or blockage;
(iii) the nature and extent of intervention by the Chinese government in the
Chinese securities markets (including both direct and indirect market
stabilization efforts, which may affect valuations of Chinese issuers), whether
such intervention will continue and the impact of such intervention or its
discontinuation; difficulty in obtaining information
necessary
for investigations into and/or litigation against Chinese companies, as well as
in obtaining and/or enforcing judgments; limited legal remedies for
shareholders; (iv) the risk of nationalization or expropriation of assets; (v)
the risk that the Chinese government may decide not to continue to support
economic reform programs; (vi) limitations on the use of brokers (or action by
the Chinese government that discourages brokers from serving international
clients); (vii) higher rates of inflation; (viii) greater political, economic
and social uncertainty; (ix) market volatility caused by any potential regional
or territorial conflicts or natural or other disasters; (x) the risk of
increased trade tariffs, embargoes, sanctions, investment restrictions and other
trade limitations; (xi) China custody risks associated with investing via the
Stock Connect Program; (xii) both interim and permanent market regulations which
may affect the ability of certain stockholders to sell Chinese securities when
it would otherwise be advisable, (xiii) foreign ownership limits of any listed
Chinese company and (xiv) the general risks applicable to the Stock Connect.
Export growth continues to be a major driver of China’s rapid economic growth.
As a result, a reduction in spending on Chinese products and services, the
institution of tariffs or other trade barriers, or a downturn in any of the
economies of China's key trading partners may have an adverse impact on the
Chinese economy. Additionally, the inability of the Public Company Accounting
Oversight Board (“PCAOB”) to inspect audit work papers and practices of
PCAOB-registered accounting firms in China with respect to their audit work of
U.S. reporting companies may impose significant additional risks associated with
investments in China.
Direct
Investments.
Direct investments may involve a high degree of business and financial risk that
can result in substantial losses. Because of the absence of any public trading
market for these investments, the Fund may take longer to liquidate these
positions than would be the case for publicly traded securities. Direct
investments are generally considered illiquid and will be aggregated with other
illiquid investments for purposes of the limitation on illiquid
investments.
Emerging
Market Securities.
Emerging market securities typically present even greater exposure to the risks
described under “Foreign Securities” and may be particularly sensitive to
certain economic changes. Emerging market securities are exposed to a number of
risks that may make these investments volatile in price or difficult to evaluate
and trade. Companies in emerging market countries generally may be subject to
less stringent financial reporting, regulator, disclosure, accounting, auditing
and recordkeeping standards than companies in more developed countries. In
addition, securities law and the enforcement of systems of taxation in many
emerging market countries may change quickly and unpredictably, and the ability
to bring and enforce actions, or to obtain information needed to pursue or
enforce such actions, may be limited.
ESG
Investing Risk.
The Adviser’s consideration of ESG risks and opportunities in the Fund’s
investment process could result in the Fund performing differently compared to
funds that do not take into account ESG considerations. The Adviser’s
consideration of ESG risks and opportunities may result in the Fund investing in
securities, industries, or sectors that underperform other securities,
industries, or sectors, or underperform the market as a whole. The Fund is also
subject to the risk that the companies identified by the Adviser do not operate
as expected when addressing ESG issues. Regulatory changes or interpretations
regarding the definitions and/or use of ESG criteria could have a material
adverse effect on the Fund’s ability to invest in accordance with its ESG
considerations.
Equity
Securities. The
value of the equity securities held by the Fund may fall due to general market
and economic conditions, perceptions regarding the markets in which the issuers
of securities held by the Fund participate, or factors relating to specific
issuers in which the Fund invests. Equity securities are subordinated to
preferred securities and debt in a company’s capital structure with respect to
priority in right to a share of corporate income, and therefore will be subject
to greater dividend risk than preferred securities or debt instruments. In
addition, while broad market measures of equity securities have historically
generated higher average returns than fixed income securities, equity securities
have generally also experienced significantly more volatility in those returns,
although under certain market conditions fixed income securities may have
comparable or greater price volatility.
Foreign
Currency Transactions.
An investment transacted in a foreign currency may lose value due to
fluctuations in the rate of exchange. These fluctuations can make the return on
an investment go up or down, entirely apart from the quality or performance of
the investment itself.
Foreign
Securities.
Investments in the securities of foreign issuers involve risks beyond those
associated with investments in U.S. securities. These additional risks include
greater market volatility, the availability of less reliable financial
information, higher transactional and custody costs, taxation by foreign
governments, decreased market liquidity and political instability. Because
certain foreign securities markets may be limited in size, the activity of large
traders may have an undue influence on the prices of securities that trade in
such markets. The Fund invests in securities of issuers located in countries
whose economies are heavily dependent upon trading with key partners. Any
reduction in this trading may have an adverse impact on the Fund’s
investments.
Indian
Issuers Risk.
Investing in securities of Indian issuers involves risks not typically
associated with investments in securities of issuers in more developed countries
that may negatively affect the value of your investment in the Fund. Such
heightened risks include, among others, greater government control over the
economy, political and legal uncertainty, currency fluctuations or blockage of
foreign currency exchanges and the risk of nationalization or expropriation of
assets. Issuers in India are subject to less stringent requirements regarding
accounting, auditing and financial reporting than are issuers in more developed
markets, and therefore, all material information may not be available or
reliable. In addition, religious and border disputes persist in India. India has
experienced civil unrest and hostilities with neighboring countries, including
Pakistan, and the Indian government has confronted separatist movements in
several Indian states. India has also experienced acts of terrorism that have
targeted foreigners, which have had a negative impact on tourism, an important
sector of the Indian economy. The Indian securities
markets
are smaller than securities markets in more developed economies and are subject
to greater price volatility. Indian stock exchanges have also experienced
problems such as temporary exchange closures, broker defaults, settlement delays
and strikes by brokers that have affected the market price and liquidity of the
securities of Indian companies. In addition, the governing bodies of the Indian
stock exchanges have from time to time restricted securities from trading,
limited price movements and restricted margin requirements. Further, from time
to time, disputes have occurred between listed companies and the Indian stock
exchanges and other regulatory bodies that, in some cases, have had a negative
effect on market sentiment. Certain restrictions on foreign investment may
decrease the liquidity of the Fund's portfolio. In addition, the Reserve Bank of
India, the Indian counterpart of the Federal Reserve Bank in the United States,
imposes certain limits on the foreign ownership of Indian securities. These
restrictions and/or controls may at times limit or prevent foreign investment in
securities of issuers located or operating in India.
Investing
in the Communication Services Sector.
The Fund may invest a significant portion of its assets in companies in the
communication services sector. The Fund may be sensitive to changes in, and its
performance may depend to a greater extent on, the overall condition of the
communication services sector. Companies in the communication services sector
may be affected by industry competition, substantial capital requirements,
government regulations and obsolescence of communications products and services
due to technological advancement.
Investing
in the Consumer Discretionary Sector.
The Fund may invest a significant portion of its assets in companies in the
consumer discretionary sector. The Fund may be sensitive to changes in, and its
performance may depend to a greater extent on, the overall condition of the
consumer discretionary sector. The consumer discretionary sector comprises
companies whose businesses are sensitive to economic cycles, such as
manufacturers of high-end apparel and automobile and leisure companies.
Companies engaged in the consumer discretionary sector are subject to
fluctuations in supply and demand. These companies may also be adversely
affected by changes in consumer spending as a result of world events, political
and economic conditions, commodity price volatility, changes in exchange rates,
imposition of import controls, increased competition, depletion of resources and
labor relations.
Investing
in the Financial Services Sector.
The Fund may invest a significant portion of its assets in companies in the
financial services sectors. The Fund may be sensitive to changes in, and its
performance may depend to a greater extent on, the overall condition of the
financial services sector. Companies in the financial services sector may be
subject to extensive government regulation that affects the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. The profitability of companies in the financial services sector may be
adversely affected by increases in interest rates, by loan losses, which usually
increase in economic downturns, and by credit rating downgrades. In addition,
the financial services sector is undergoing numerous changes, including
continuing consolidations, development of new products and structures and
changes to its regulatory framework. Furthermore, some companies in the
financial services sector perceived as benefiting from government intervention
in the past may be subject to future government-imposed restrictions on their
businesses or face increased government involvement in their operations.
Increased government involvement in the financial services sector, including
measures such as taking ownership positions in financial institutions, could
result in a dilution of the Fund’s investments in financial institutions. Recent
developments in the credit markets may cause companies operating in the
financial services sector to incur large losses, experience declines in the
value of their assets and even cease operations.
Investing
in the Health Care Sector.
The Fund may invest a significant portion of its assets in companies in the
health care sector. The Fund may be sensitive to changes in, and its performance
may depend to a greater extent on, the overall condition of the health care
sector. Companies in the health care sector may be affected by extensive
government regulation, restrictions on government reimbursement for medical
expenses, rising costs of medical products and services, pricing pressure, an
increased emphasis on outpatient services, limited number of products, industry
innovation, changes in technologies and other market developments. Many health
care companies are heavily dependent on patent protection. The expiration of
patents may adversely affect the profitability of these companies. Many health
care companies are subject to extensive litigation based on product liability
and similar claims. Health care companies are subject to competitive forces that
may make it difficult to raise prices and, in fact, may result in price
discounting. Many new products in the health care sector may be subject to
regulatory approvals. The process of obtaining such approvals may be long and
costly. Companies in the health care sector may be thinly capitalized and may be
susceptible to product obsolescence.
Investing
in the Information Technology Sector.
The Fund may invest a significant portion of its assets in companies in the
information technology sector. The Fund may be sensitive to changes in, and its
performance may depend to a greater extent on, the overall condition of the
information technology sector. Information technology companies face intense
competition, both domestically and internationally, which may have an adverse
effect on profit margins. Information technology companies may have limited
product lines, markets, financial resources or personnel. The products of
information technology companies may face product obsolescence due to rapid
technological developments and frequent new product introduction, unpredictable
changes in growth rates and competition for the services of qualified personnel.
Companies in the information technology sector are heavily dependent on patent
protection and the expiration of patents may adversely affect the profitability
of these companies.
Investments
in Other Investment Companies. The
Fund’s investment in another investment company may subject the Fund indirectly
to the underlying risks of the investment company. The Fund also may bear its
share of the underlying investment company’s fees and expenses, which are in
addition to the Fund’s own fees and expenses.
Investments
through Stock Connect.
The Fund’s investments in Chinese A-shares through Stock Connect may be subject
to a number of restrictions that may affect the Fund’s investments and returns.
For example, purchases of A-shares through Stock Connect are subject to a daily
quota which does not belong to the Fund and can only be utilized on a
first-come-first-serve basis. Once the daily quota is exceeded, buy orders will
be rejected. The Fund's ability to invest in A-Shares may therefore be limited.
In addition, investments made through Stock Connect are subject to trading,
clearance and settlement procedures that are relatively untested in the PRC,
which could pose risks to the Fund. Furthermore, securities purchased via Stock
Connect will be held via a book entry omnibus account in the name of HKSCC, Hong
Kong’s clearing entity, at the CSDCC. The Fund’s ownership interest in Stock
Connect securities will not be reflected directly in book entry with CSDCC and
will instead only be reflected on the books of its Hong Kong sub-custodian. The
Fund may therefore depend on HKSCC’s ability or willingness as record-holder of
Stock Connect securities to enforce the Fund’s shareholder rights. PRC law did
not historically recognize the concept of beneficial ownership; while PRC
regulations and the Hong Kong Stock Exchange have issued clarifications and
guidance supporting the concept of beneficial ownership via Stock Connect, the
interpretation of beneficial ownership in the PRC by regulators and courts may
continue to evolve. Moreover, Stock Connect A-shares generally may not be sold,
purchased or otherwise transferred other than through Stock Connect in
accordance with applicable rules.
A
primary feature of Stock Connect is the application of the home market’s laws
and rules applicable to investors in A-shares. Therefore, the Fund’s investments
in Stock Connect A-shares are generally subject to PRC securities regulations
and listing rules, among other restrictions. Stock Connect is only available on
days when markets in both the PRC and Hong Kong are open, which may limit the
Fund’s ability to trade when it would be otherwise attractive to do so.
Uncertainties in permanent PRC tax rules governing the taxation of income and
gains from investments in Stock Connect A-shares could result in unexpected tax
liabilities for the Fund. The Stock Connect program is a relatively new program
and may be subject to further interpretation and guidance. There can be no
assurance as to the program’s continued existence or whether future developments
regarding the program may restrict or adversely affect the Fund’s investments or
returns.
In
addition, the application and interpretation of the laws and regulations of Hong
Kong and the PRC, and the rules, policies or guidelines published or applied by
relevant regulators and exchanges in respect of the Stock Connect program are
uncertain, and they may have a detrimental effect on the Fund’s investments and
returns.
Large-Capitalization
Companies.
Securities of large-capitalization companies (generally companies with market
capitalization greater than $10 billion) than could fall out of favor with the
market and underperform securities of small- or medium-capitalization companies.
Larger, more established companies may be slow to respond to challenges and may
grow more slowly than smaller companies.
Management.
Investment decisions made by the Adviser in seeking to achieve the Fund’s
investment objective may not produce the returns expected by the Adviser, may
cause a decline in the value of the securities held by the Fund and, in turn,
cause the Fund’s shares to lose value or underperform other funds with similar
investment objectives.
Market
Risk.
The prices of the securities in the Fund are subject to the risks associated
with investing in the securities market, including general economic conditions,
sudden and unpredictable drops in value, exchange trading suspensions and
closures and public health risks. These risks may be magnified if certain
social, political, economic and other conditions and events (such as natural
disasters, epidemics and pandemics, terrorism, conflicts and social unrest)
adversely interrupt the global economy; in these and other circumstances, such
events or developments might affect companies world-wide. An investment in
the Fund may lose money.
Medium-Capitalization
Companies. Medium-capitalization
companies (generally companies with market capitalization greater than $2
billion and up to $10 billion) may be more volatile and more likely than large-
capitalization companies to have narrower product lines, fewer financial
resources, less management depth and experience and less competitive strength.
In addition, these companies often have greater price volatility, lower trading
volume and less liquidity than larger more established companies. Returns on
investments in securities of medium-capitalization companies could trail the
returns on investments in securities of large-capitalization
companies.
Non-Diversification.
A non-diversified fund’s greater investment
in a single issuer makes the fund more susceptible to financial, economic or
market events impacting such issuer. A decline in the value of or default by a
single security in the non-diversified fund’s portfolio may have a greater
negative effect than a similar decline or default by a single security in a
diversified portfolio.
Operational.
The Fund is exposed to operational risk arising from a number of factors,
including but not limited to, human error, processing and communication errors,
errors of the Fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or system failures.
Restricted
Securities Risk. The
Fund may hold securities that are restricted as to resale under the U.S. Federal
securities laws, such as securities in certain privately held companies. Such
securities may be highly illiquid and their values may experience significant
volatility. Restricted securities may be difficult to
value.
Sectors.
The
Fund may be subject to greater risks and market fluctuations than a fund whose
portfolio has exposure to a broader range of sectors. The Fund may be
susceptible to financial, economic, political or market events, as well as
government regulation, impacting the financial services, health care,
information technology, communication and consumer discretionary
sectors.
Special Purpose Acquisition
Companies. Equity securities include stock, rights,
warrants, and other interests in Special Purpose Acquisition Companies (“SPACs”)
or similar special purpose entities. A SPAC is typically a publicly traded
company that raises investment capital via an initial public offering for the
purpose of acquiring one or more existing companies (or interests therein) via
merger, combination, acquisition or other similar transactions. Since SPACs have
no operating history or ongoing business other than seeking a transaction, the
value of their securities may be particularly dependent on the quality of its
management and on the ability of the SPAC’s management to identify and complete
a profitable transaction. Additionally, the securities issued by a SPAC may
become illiquid and/or may be subject to restrictions on resale, among other
risks.
PERFORMANCE
The Fund commenced
operations on March 1, 2022. Accordingly, the Fund does not have a full
calendar year of performance.
PORTFOLIO
MANAGEMENT
Investment
Adviser.
Van Eck Associates Corporation
Portfolio
Managers.
David
Semple has been Portfolio Manager of the Fund since inception. Angus Shillington
has been Deputy Portfolio Manager of the Fund since inception. Mr. Semple has
worked at the Adviser since 1998. Mr. Shillington has worked at the Adviser
since 2009.
PURCHASE
AND SALE OF FUND SHARES
In
general, shares of the Fund may be purchased or redeemed on any business day,
primarily through financial representatives such as brokers or advisers, or
directly by eligible investors through the Fund’s transfer agent. Purchase
minimums for Classes A and Y shares are $1,000 for an initial purchase and $100
for a subsequent purchase, with no purchase minimums for any purchase through a
retirement or pension plan account, for any “wrap fee” account and similar
programs offered without a sales charge by certain financial institutions and
third-party recordkeepers and/or administrators, and for any account using the
Automatic Investment Plan, or for any other periodic purchase program. Class Z
shares have no initial or subsequent purchase minimums, although financial
intermediaries may have their own minimums. Purchase minimums for Class I shares
are $1 million for an initial purchase and no minimum for a subsequent purchase;
the initial minimum may be reduced or waived at the Adviser’s
discretion.
TAX
INFORMATION
The
Fund normally distributes net investment income and net realized capital gains,
if any, to shareholders annually. These distributions are generally taxable to
you as ordinary income or capital gains, unless you are investing through a tax
advantaged retirement account, such as a 401(k) plan or an individual retirement
account (IRA), in which case your distributions may be taxed as ordinary income
when withdrawn from such account.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its affiliates may pay the intermediary for
the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your financial professional to recommend the Fund over another investment. Ask
your financial professional or visit your financial intermediary’s website for
more information.
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ENVIRONMENTAL
SUSTAINABILITY FUND (CLASS A, I, Y) |
SUMMARY
INFORMATION
INVESTMENT OBJECTIVE
The Environmental
Sustainability Fund seeks long-term capital appreciation by investing primarily
in equity securities of companies operating in environmental sustainability
markets.
FUND FEES AND EXPENSES
This
table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may qualify for Class A
sales charge discounts if you and your family (includes spouse and children
under age 21) invest, or agree to invest in the future, at least
$25,000, in the aggregate, in Classes A and C of
the VanEck Funds. More information about these and other
discounts is available from your financial professional and in the “Shareholder
Information-Sales Charges” section of this prospectus, in the “Availability of
Discounts” section of the Fund’s Statement of Additional Information (“SAI”)
and, with respect to purchases of shares through specific intermediaries, in
Appendix A to this prospectus, entitled “Intermediary Sales Charge Discounts and
Waivers”.
Shareholder
Fees (fees
paid directly from your investment)
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Class
A |
Class
I |
Class
Y |
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Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.75% |
0.00% |
0.00% |
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Maximum
Deferred Sales Charge (load) (as a percentage of the lesser of the net
asset value or purchase price) |
0.00%¹ |
0.00% |
0.00% |
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Annual
Fund Operating Expenses
(expenses that you pay each year as a
percentage of the value of your
investment)
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Class
A |
Class
I |
Class
Y |
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Management
Fees |
0.75% |
0.75% |
0.75% |
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Distribution
and/or Service (12b-1) Fees |
0.25% |
0.00% |
0.00% |
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Other
Expenses2 |
0.28% |
0.24% |
0.30% |
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Total
Annual Fund Operating Expenses |
1.28% |
0.99% |
1.05% |
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Fee
Waivers and/or Expense Reimbursements3 |
-0.03% |
-0.04% |
0.00% |
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Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursements |
1.25% |
0.95% |
1.05% |
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1
A contingent deferred
sales charge for Class A shares of 1.00% for one year applies to redemptions of
qualified commissionable shares purchased at or above the $1 million breakpoint
level.
2
“Other
Expenses”
are based on estimated
amounts for the current fiscal year.
3
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
and interest payments on securities sold short, taxes and extraordinary
expenses) from exceeding 1.25% for Class A, 0.95% for Class I, and 1.05% for
Class Y of the Fund’s average daily net assets per year until May 1,
2023. 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.
EXPENSE EXAMPLE
The following example
is intended to help you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes that you invest $10,000
in the Fund for the time periods indicated and then either redeem all of your
shares at the end of these periods or continue to hold them. The example also
assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same, and applies fee waivers and/or expense
reimbursements, if any, for the periods indicated above under “Annual Fund
Operating Expense.” Although your actual expenses may be higher or lower, based
on these assumptions, your costs would be:
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Share
Status |
1
Year |
3
Years |
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Class
A |
Sold or
Held |
$695 |
$955 |
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Class
I |
Sold
or Held |
$97 |
$311 |
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Class
Y |
Sold
or Held |
$107 |
$334 |
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PORTFOLIO
TURNOVER
The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate that the Fund pays
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the Fund’s performance. During the
period from July 14, 2021 (the Fund’s commencement of operations) through
December 31, 2021, the Fund’s portfolio turnover rate was 0% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES
Under normal conditions, the Fund
invests at least 80% of its net assets in securities of companies operating in
environmental sustainability markets. Environmental
sustainability markets encompass industries and companies aligned with
environmentally-focused aspirations, as outlined, at this time, by the
objectives set forth by a subset of the United Nations’ Sustainable Development
Goals. These may include industries such as renewable energy (solar, wind,
geothermal, hydroelectric), smart resource management (energy efficiency,
manufacturing), agriculture technology, recycling, water and advanced materials
(electrification of transport, battery technologies). The Adviser may identify
other industries that it considers to qualify as relating to environmental
sustainability markets.
The
Fund may invest without limitation in any environmental sustainability related
industries and may have no exposure to one or more particular environmental
sustainability related industries at any given time. Within the eligible
universe of companies, the Fund’s investment management team considers a variety
of impact metrics intended to gauge and measure the sustainability contribution
of such companies. Utilizing qualitative and quantitative measures, the Fund’s
investment management team selects equity securities of companies that it
believes represent value opportunities and/or that have growth potential.
Candidates for the Fund’s portfolio are evaluated based on their relative
desirability using a wide range of criteria, including a company’s commitment to
environmental issues such as climate, land, air, and water.
The
Fund’s investment management team selects securities using a fundamental stock
analysis in which they assess, among other factors, an issuer’s financial
statements and growth projections relative to the market value as well as the
quality of company operations and management leadership. A sustainability
assessment is concurrently conducted by the investment management team with the
understanding that the quality of a company’s environmental footprint and impact
is intrinsically tied to how such company runs its operations.
The
Fund may invest in securities of companies located anywhere in the world,
including the U.S. and may invest in depositary receipts. Under ordinary
circumstances, the Fund will invest in securities of issuers from a number of
different countries, and may invest any amount of its assets in emerging
markets. The Fund may invest in securities of companies of any capitalization
range. The Fund may also invest in special purpose acquisition companies
(SPACs). The Fund is considered to be “non-diversified,” which means that it may
invest a larger portion of its assets in a single issuer.
The
Fund may use derivative instruments, such as structured notes, warrants,
currency forwards, futures contracts, options and swap agreements, to gain or
hedge exposure to environmental sustainability sectors or companies. The Fund’s
screening methodology for securities of companies operating in environmental
sustainability markets is applied to underlying investments rather than to the
derivatives instruments themselves. The Fund may enter into foreign currency
transactions to attempt to moderate the effect of currency fluctuations. The
Fund may write covered call options on portfolio securities to the extent that
the value of all securities with respect to which covered calls are written does
not exceed 10% of the Fund’s net asset value.
The
Fund may also invest up to 20% of its net assets in securities issued by other
investment companies, including exchange- traded funds (“ETFs”). The Fund may
also invest in money market funds, but these investments are not subject to this
limitation. The Fund may invest in ETFs to participate in, or gain exposure to,
certain market sectors, or when direct investments in certain countries are not
permitted or available.
PRINCIPAL RISKS
There
is no assurance that the Fund will achieve its investment objective.
The Fund’s share price and return will fluctuate with
changes in the market value of the Fund’s portfolio securities. Accordingly, an
investment in the Fund involves the risk of losing
money.
Derivatives.
The
use of derivatives, such as swap agreements, options, warrants, futures
contracts, currency forwards and structured notes, presents risks different
from, and possibly greater than, the risks associated with investing directly in
traditional
securities.
The use of derivatives can lead to losses because of adverse movements in the
price or value of the underlying currency, security, asset, index or reference
rate. Derivative strategies often involve leverage, which may exaggerate a loss,
potentially causing the Fund to lose more money than it would have lost had it
invested in the underlying security. Also, a liquid secondary market may not
always exist for the Fund’s derivative positions at times when the Fund might
wish to terminate or sell such positions. Over-the-counter instruments may be
illiquid, and transactions in derivatives traded in the over-the-counter market
are subject to counterparty risk.
Equity
Securities. The
value of the equity securities held by the Fund may fall due to general market
and economic conditions, perceptions regarding the markets in which the issuers
of securities held by the Fund participate, or factors relating to specific
issuers in which the Fund invests. Equity securities are subordinated to
preferred securities and debt in a company’s capital structure with respect to
priority in right to a share of corporate income, and therefore will be subject
to greater dividend risk than preferred securities or debt instruments. In
addition, while broad market measures of equity securities have historically
generated higher average returns than fixed income securities, equity securities
have generally also experienced significantly more volatility in those returns,
although under certain market conditions fixed income securities may have
comparable or greater price volatility.
Emerging
Market Securities.
Emerging
market securities typically present even greater exposure to the risks described
under “Foreign Securities” and may be particularly sensitive to certain economic
changes. Emerging market securities are exposed to a number of risks that may
make these investments volatile in price or difficult to evaluate and trade.
Companies in emerging market countries generally may be subject to less
stringent financial reporting, regulatory, disclosure, accounting, auditing and
recordkeeping standards than companies in more developed countries. In addition,
securities law and the enforcement of systems of taxation in many emerging
market countries may change quickly and unpredictably, and the ability to bring
and enforce actions, or to obtain information needed to pursue or enforce such
actions, may be limited.
Environmental-Related
Securities Risk.
Companies that promote positive environmental policies may not perform as well
as companies that do not pursue such goals. Issuers engaged in environmentally
beneficial business lines may be difficult to identify and investments in them
maybe volatile. They may be highly dependent upon government subsidies,
contracts with government entities, and the successful development of new and
proprietary technologies. Such technologies risk rapid product obsolescence,
short product cycles, and competition from new market entrants. Current
valuation methods used to value companies involved in alternative, clean water,
and clean power technology sectors, for example, may not have been in widespread
use for a significant period of time, and it may be difficult to value share
prices of such issuers. In addition, seasonal weather conditions, fluctuations
in supply of and demand for clean energy products (including, in relation to
traditional energy products, such as oil and gas), changes in energy prices, and
international political events may cause fluctuations in the performance of
these issuers and the prices of their securities. Environmentally-focused
investing is qualitative and subjective by nature, and there is no guarantee
that the factors utilized by the Adviser or any judgment exercised by the
Adviser will reflect the opinions of any particular investor. Information
regarding responsible practices is obtained through voluntary or third-party
reporting, which may not be accurate or complete, and the Adviser is dependent
on such information to evaluate a company’s commitment to, or implementation of,
responsible practices.
Foreign
Currency Transactions.
An
investment transacted in a foreign currency may lose value due to fluctuations
in the rate of exchange. These fluctuations can make the return on an investment
go up or down, entirely apart from the quality or performance of the investment
itself.
Foreign
Securities.
Foreign
investments are subject to greater risks than U.S. domestic investments. These
additional risks may include exchange rate fluctuations and exchange controls;
less publicly available information; more volatile or less liquid securities
markets; and the possibility of arbitrary action by foreign governments, or
political, economic or social instability. Foreign companies also may be subject
to significantly higher levels of taxation than U.S companies, including
potentially confiscatory levels of taxation, thereby reducing the earnings
potential of such foreign companies.
Investments
in Other Investment Companies.
The
Fund’s investment in another investment company may subject the Fund indirectly
to the underlying risks of the investment company. The Fund also may bear its
share of the underlying investment company’s fees and expenses, which are in
addition to the Fund’s own fees and expenses.
Management.
Investment
decisions made by the Adviser in seeking to achieve the Fund’s investment
objective may not produce the returns expected by the Adviser, may cause a
decline in the value of the securities held by the Fund and, in turn, cause the
Fund’s shares to lose value or underperform other funds with similar investment
objectives.
Market.
Market
risk refers to the risk that the market prices of securities that the Fund holds
will rise or fall, sometimes rapidly or unpredictably. In general, equity
securities tend to have greater price volatility than debt
securities.
Non-Diversification.
A non-diversified fund’s greater investment
in a single issuer makes the fund more susceptible to financial, economic or
market events impacting such issuer. A decline in the value of or default by a
single security in the non-diversified fund’s portfolio may have a greater
negative effect than a similar decline or default by a single security in a
diversified portfolio.
Operational.
The
Fund is exposed to operational risk arising from a number of factors, including
but not limited to, human error, processing and communication errors, errors of
the Fund’s service providers, counterparties or other third-parties, failed or
inadequate
processes and technology or system failures.
Sectors.
The
Fund may be subject to greater risks and market fluctuations than a fund whose
portfolio has exposure to a broader range of sectors. The Fund may be
susceptible to financial, economic, political or market events, as well as
government regulation, impacting the sectors to which the Fund is exposed as a
result of its concentration in environmental sustainability related industries.
Small-
and Medium-Capitalization Companies.
Securities
of small- and medium-sized companies often have greater price volatility, lower
trading volume and less liquidity than larger, more established companies. The
stocks of small- and medium-sized companies may have returns that vary,
sometimes significantly, from the overall stock market.
Special
Purpose Acquisition Companies. Since
Special Purpose Acquisition Companies (SPACs) have no operating history or
ongoing business other than seeking a transaction, the value of their securities
may be particularly dependent on the quality of its management and on the
ability of the SPAC’s management to identify and complete a profitable
transaction. Additionally, the securities issued by a SPAC may become illiquid
and/or may be subject to restrictions on resale, among other risks.
Sustainability
Investing Strategy Risk.
The Fund’s sustainability strategy could cause it to perform differently
compared to funds that do not have a sustainability focus. The Fund’s
sustainability strategy may result in the Fund investing in securities or
industry
sectors that underperform other securities or underperform the market as a
whole, and may result in the Fund being unable to take advantage of certain
investment opportunities, which may adversely affect investment
performance.
The Fund is also subject to the risk that the companies identified by the
Adviser do not operate as expected when addressing sustainability
issues. Regulatory changes or interpretations regarding the definitions and/or
use of sustainability criteria could have a material adverse effect on the
Fund’s ability to invest in accordance with its sustainability
strategy.
PERFORMANCE
The Fund commenced
operations on July 14, 2021. Accordingly, the Fund does not have a full
calendar year of performance.
PORTFOLIO
MANAGEMENT
Investment
Adviser. Van Eck Associates Corporation
Portfolio
Managers.
Shawn
Reynolds has been Portfolio Manager of the Fund since inception. Veronica Zhang
has been Deputy Portfolio Manager of the Fund since inception. Mr. Reynolds has
been a Portfolio Manager with the Adviser since 2010. Ms. Zhang joined the
Adviser in 2013 as an alternative energy analyst.
PURCHASE
AND SALE OF FUND SHARES
In
general, shares of the Fund may be purchased or redeemed on any business day,
primarily through financial representatives such as brokers or advisers, or
directly by eligible investors through the Fund’s transfer agent. Purchase
minimums for Classes A and Y shares are $1,000 for an initial purchase and $100
for a subsequent purchase, with no purchase minimums for any purchase through a
retirement or pension plan account, for any “wrap fee” account and similar
programs offered without a sales charge by certain financial institutions and
third-party recordkeepers and/or administrators, and for any account using the
Automatic Investment Plan, or for any other periodic purchase
program.
Purchase
minimums for Class I shares are $1 million for an initial purchase and no
minimum for a subsequent purchase; the initial minimum may be reduced or waived
at the Adviser’s discretion.
TAX
INFORMATION
The
Fund normally distributes net investment income and net realized capital gains,
if any, to shareholders annually. These distributions are generally taxable to
you as ordinary income or capital gains, unless you are investing through a tax
advantaged retirement account, such as a 401(k) plan or an individual retirement
account (IRA), in which case your distributions may be taxed as ordinary income
when withdrawn from such account.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its affiliates may pay the intermediary for
the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your financial professional to recommend the Fund over another investment. Ask
your financial professional or visit your financial intermediary’s website for
more information.
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GLOBAL
RESOURCES FUND (CLASS A, C, I,
Y) |
SUMMARY
INFORMATION
INVESTMENT OBJECTIVE
The Global Resources Fund
seeks long-term capital appreciation by investing primarily in global resource
securities. Income is a secondary
consideration.
FUND FEES AND EXPENSES
This
table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for Class A sales charge
discounts if you and your family (includes spouse and children under age 21)
invest, or agree to invest in the future, at least $25,000, in the
aggregate, in Classes A and C of the VanEck
Funds. More information about these and other
discounts is available from your financial professional and in the “Shareholder
Information-Sales Charges” section of this prospectus, in the “Availability of
Discounts” section of the Fund’s SAI and, with respect to purchases of shares
through specific intermediaries, in Appendix A to this prospectus, entitled
“Intermediary Sales Charge Discounts and
Waivers”.
Shareholder
Fees
(fees
paid directly from your investment)
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Class
A |
Class
C |
Class
I |
Class
Y |
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Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.75% |
0.00% |
0.00% |
0.00% |
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Maximum
Deferred Sales Charge (load) (as a percentage of the lesser of the net
asset value or purchase price) |
0.00%¹ |
1.00% |
0.00% |
0.00% |
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Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Class
A |
Class
C |
Class
I |
Class
Y |
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Management
Fees |
1.00% |
1.00% |
1.00% |
1.00% |
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Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.00% |
0.00% |
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Other
Expenses |
0.23% |
0.52% |
0.11% |
0.18% |
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Total
Annual Fund Operating Expenses |
1.48% |
2.52% |
1.11% |
1.18% |
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Fee
Waivers and/or Expense Reimbursements2 |
-0.10% |
-0.32% |
-0.16% |
-0.05% |
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Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursements |
1.38% |
2.20% |
0.95% |
1.13% |
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1
A contingent deferred
sales charge for Class A shares of 1.00% for one year applies to redemptions of
qualified commissionable shares purchased at or above the $1 million breakpoint
level.
2
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
and interest payments on securities sold short, taxes and extraordinary
expenses) from exceeding 1.38% for Class A, 2.20% for Class C, 0.95% for Class
I, and 1.13% for Class Y of the Fund’s average daily net assets per year until
May 1,
2023. 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.
EXPENSE EXAMPLE
The following example
is intended to help you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes that you invest $10,000
in the Fund for the time periods indicated and then either redeem all of your
shares at the end of these periods or continue to hold them. The example also
assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same, and applies fee waivers and/or expense
reimbursements, if any, for the periods indicated above under “Annual Fund
Operating Expenses.” Although your actual expenses may be higher or lower, based
on these assumptions, your costs would be:
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Share
Status |
1
Year |
3
Years |
5
Years |
10
Years |
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Class
A |
Sold
or Held |
$707 |
|
$1,007 |
|
$1,328 |
|
$2,234 |
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Class
C |
Sold |
$323 |
|
$754 |
|
$1,312 |
|
$2,832 |
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Held |
$223 |
|
$754 |
|
$1,312 |
|
$2,832 |
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Class
I |
Sold
or Held |
$97 |
|
$337 |
|
$596 |
|
$1,337 |
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Class
Y |
Sold
or Held |
$115 |
|
$370 |
|
$644 |
|
$1,427 |
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PORTFOLIO
TURNOVER
The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate that the Fund pays
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 28% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES
Under normal conditions, the Fund
invests at least 80% of its net assets in securities of “global resource”
companies and instruments that derive their value from “global resources”.
Global resources include precious metals (including gold), base and industrial
metals, energy, natural resources and other commodities. A
global resource company is a company that derives, directly or indirectly, at
least 50% of its revenues from exploration, development, production,
distribution or facilitation of processes relating to global resources. The Fund
concentrates its investments in the securities of global resource companies and
instruments that derive their value from global resources.
The
Fund may invest without limitation in any one global resources sector and is not
required to invest any portion of its assets in any one global resources sector.
The Fund may invest in securities of companies located anywhere in the world,
including the U.S. Under ordinary circumstances, the Fund will invest in
securities of issuers from a number of different countries, and may invest any
amount of its assets in emerging markets. The Fund may invest in securities of
companies of any capitalization range. Utilizing qualitative and quantitative
measures, the Fund’s investment management team selects equity securities of
companies that it believes represent value opportunities and/or that have growth
potential. Candidates for the Fund’s portfolio are evaluated based on their
relative desirability using a wide range of criteria and are regularly reviewed
to ensure that they continue to offer absolute and relative desirability. The
analysis of financially material risks and opportunities related to ESG (i.e.
Environmental, Social and Governance) factors is a component of the overall
investment process. ESG considerations can affect the Adviser’s fundamental
assessment of a company or country.
The
Fund may use derivative instruments, such as structured notes, warrants,
currency forwards, futures contracts, options and swap agreements, to gain or
hedge exposure to global resources, global resource companies and other assets.
The Fund may enter into foreign currency transactions to attempt to moderate the
effect of currency fluctuations. The Fund may write covered call options on
portfolio securities to the extent that the value of all securities with respect
to which covered calls are written does not exceed 10% of the Fund’s net asset
value. The Fund may also invest up to 20% of its net assets in securities issued
by other investment companies, including exchange-traded funds (“ETFs”). The
Fund may also invest in money market funds, but these investments are not
subject to this limitation. The Fund may invest in ETFs to participate in, or
gain exposure to, certain market sectors, or when direct investments in certain
countries are not permitted or available.
PRINCIPAL RISKS
There
is no assurance that the Fund will achieve its investment objective.
The Fund’s share price and return will fluctuate with
changes in the market value of the Fund’s portfolio securities. Accordingly, an
investment in the Fund involves the risk of losing
money.
Canadian
Issuers.
Investments in securities of Canadian issuers, including issuers located outside
of Canada that generate significant revenue from Canada, involve risks and
special considerations not typically associated with investments in the U.S.
securities markets. The Canadian economy is very dependent on the demand for,
and supply and price of, natural resources. The Canadian market is relatively
concentrated in issuers involved in the production and distribution of natural
resources. There is a risk that any changes in natural resources sectors could
have an adverse impact on the Canadian economy. Additionally, the Canadian
economy is heavily dependent on relationships with certain key trading partners,
including the United States, countries in the EU and China. Because the United
States is Canada’s largest trading partner and foreign investor, the Canadian
economy is dependent on and may be significantly affected by the U.S. economy.
Reduction in spending on Canadian products and services or changes in the U.S.
economy may adversely impact the Canadian economy. Trade agreements may further
increase Canada’s dependency on the U.S. economy, and uncertainty as to the
future of such trade agreements may cause a decline in the value of the Fund’s
Shares. Past periodic demands by the Province of Quebec for sovereignty have
significantly affected equity valuations
and
foreign currency movements in the Canadian market and such demands may have this
effect in the future. In addition, certain sectors of Canada’s economy may be
subject to foreign ownership limitations. This may negatively impact the Fund’s
ability to invest in Canadian issuers.
Commodities
and Commodity-Linked Derivatives.
Exposure to the commodities markets, such as precious metals, industrial metals,
gas and other energy products and natural resources, may subject the Fund to
greater volatility than investments in traditional securities. The commodities
markets may fluctuate widely based on a variety of factors including changes in
overall market movements, political and economic events and policies, war,
disease, acts of terrorism, natural disasters, and changes in interest rates or
inflation rates. Because the value of a commodity-linked derivative instrument
and structured note typically are based upon the price movements of physical
commodities, the value of these securities will rise or fall in response to
changes in the underlying commodities or related index of
investment.
Commodities
and Commodity-Linked Derivatives Tax Risk.
The tax treatment of commodity-linked derivative instruments may be adversely
affected by changes in legislation, regulations or other legally binding
authority. If, as a result of any such adverse action, the income of the Fund
from certain commodity-linked derivatives were treated as non-qualifying income,
the Fund may fail to qualify as a regulated investment company and/or be subject
to federal income tax at the Fund level. The uncertainty surrounding the
treatment of certain derivative instruments under the qualification tests for a
regulated investment company may limit the Fund’s use of such derivative
instruments.
Derivatives.
The use of derivatives, such as swap agreements, options, warrants, futures
contracts, currency forwards and structured notes, presents risks different
from, and possibly greater than, the risks associated with investing directly in
traditional securities. The use of derivatives can lead to losses because of
adverse movements in the price or value of the underlying currency, security,
asset, index or reference rate. Derivative strategies often involve leverage,
which may exaggerate a loss, potentially causing the Fund to lose more money
than it would have lost had it invested in the underlying security. Also, a
liquid secondary market may not always exist for the Fund’s derivative positions
at times when the Fund might wish to terminate or sell such positions.
Over-the-counter instruments may be illiquid, and transactions in derivatives
traded in the over-the-counter market are subject to counterparty
risk.
Direct
Investments.
Direct investments may involve a high degree of business and financial risk that
can result in substantial losses. Because of the absence of any public trading
market for these investments, the Fund may take longer to liquidate these
positions than would be the case for publicly traded securities. Direct
investments are generally considered illiquid and will be aggregated with other
illiquid investments for purposes of the limitation on illiquid
investments.
Emerging
Market Securities.
Emerging market securities typically present even greater exposure to the risks
described under “Foreign Securities” and may be particularly sensitive to
certain economic changes. Emerging market securities are exposed to a number of
risks that may make these investments volatile in price or difficult to evaluate
and trade. Companies in emerging market countries generally may be subject to
less stringent financial reporting, regulatory, disclosure, accounting, auditing
and recordkeeping standards than companies in more developed countries. In
addition, securities law and the enforcement of systems of taxation in many
emerging market countries may change quickly and unpredictably, and the ability
to bring and enforce actions, or to obtain information needed to pursue or
enforce such actions, may be limited.
ESG
Investing Risk. The
Adviser’s consideration of ESG risks and opportunities in the Fund’s investment
process could result in the Fund performing differently compared to funds that
do not take into account ESG considerations. The Adviser’s consideration of ESG
risks and opportunities may result in the Fund investing in securities,
industries, or sectors that underperform other securities, industries, or
sectors, or underperform the market as a whole. The Fund is also subject to the
risk that the companies identified by the Adviser do not operate as expected
when addressing ESG issues. Regulatory changes or interpretations regarding the
definitions and/or use of ESG criteria could have a material adverse effect on
the Fund’s ability to invest in accordance with its ESG
considerations.
Foreign
Currency Transactions.
An investment transacted in a foreign currency may lose value due to
fluctuations in the rate of exchange. These fluctuations can make the return on
an investment go up or down, entirely apart from the quality or performance of
the investment itself.
Foreign
Securities. Investments
in the securities of foreign issuers involve risks beyond those associated with
investments in U.S. securities. These additional risks include greater market
volatility, the availability of less reliable financial information, higher
transactional and custody costs, taxation by foreign governments, decreased
market liquidity and political instability. Because certain foreign securities
markets may be limited in size, the activity of large traders may have an undue
influence on the prices of securities that trade in such markets. The Fund
invests in securities of issuers located in countries whose economies are
heavily dependent upon trading with key partners. Any reduction in this trading
may have an adverse impact on the Fund’s investments.
Global
Resources Sector Risk.
The Fund concentrates its investments (i.e., invests 25% or more of its total
assets) in the securities of global resource companies and instruments that
derive their value from global resources.The Fund may be subject to greater
risks and market fluctuations than a fund whose portfolio has exposure to a
broader range of sectors. The Fund may be susceptible to financial, economic,
political or market events, as well as government regulation, impacting the
global resources
sectors
(such as the energy and metals sectors). Precious metals and natural resources
securities are at times volatile and there may be sharp fluctuations in prices,
even during periods of rising prices.
Investments
in Other Investment Companies. The
Fund’s investment in another investment company may subject the Fund indirectly
to the underlying risks of the investment company. The Fund also may bear its
share of the underlying investment company’s fees and expenses, which are in
addition to the Fund’s own fees and expenses.
Management.
Investment decisions made by the Adviser in seeking to achieve the Fund’s
investment objective may not produce the returns expected by the Adviser, may
cause a decline in the value of the securities held by the Fund and, in turn,
cause the Fund’s shares to lose value or underperform other funds with similar
investment objectives.
Market
Risk.
The prices of the securities in the Fund are subject to the risks associated
with investing in the securities market, including general economic conditions,
sudden and unpredictable drops in value, exchange trading suspensions and
closures and public health risks. These risks may be magnified if certain
social, political, economic and other conditions and events (such as natural
disasters, epidemics and pandemics, terrorism, conflicts and social unrest)
adversely interrupt the global economy; in these and other circumstances, such
events or developments might affect companies world-wide. An investment in
the Fund may lose money.
Operational.
The Fund is exposed to operational risk arising from a number of factors,
including but not limited to, human error, processing and communication errors,
errors of the Fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or system failures.
Small-
and Medium-Capitalization Companies.
Securities of small- and medium-sized companies often have greater price
volatility, lower trading volume and less liquidity than larger, more
established companies. The stocks of small- and medium-sized companies may have
returns that vary, sometimes significantly, from the overall stock
market.
Special Purpose Acquisition
Companies. Equity securities include stock, rights,
warrants, and other interests in Special Purpose Acquisition Companies (“SPACs”)
or similar special purpose entities. A SPAC is typically a publicly traded
company that raises investment capital via an initial public offering for the
purpose of acquiring one or more existing companies (or interests therein) via
merger, combination, acquisition or other similar transactions. Since SPACs have
no operating history or ongoing business other than seeking a transaction, the
value of their securities may be particularly dependent on the quality of its
management and on the ability of the SPAC’s management to identify and complete
a profitable transaction. Additionally, the securities issued by a SPAC may
become illiquid and/or may be subject to restrictions on resale, among other
risks.
PERFORMANCE
The following
chart and table provide some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing how
the Fund’s average annual total returns compare with those of a broad measure of
market performance and one or more other performance measures.
For instance, the S&P®
North American Natural Resources Sector Index represents U.S. traded securities
that are classified under the GICS®
energy and materials sector excluding the chemicals industry and steel
sub-industry. MSCI AC World Daily TR Gross USD Index represents large- and
mid-cap companies across developed and emerging market countries. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. The annual returns in the bar chart
are for the Fund’s Class A shares and do not reflect sales loads. If sales loads
were reflected, returns would be lower than those
shown.
Additionally, large purchases and/or
redemptions of shares of a class, relative to the amount of assets represented
by the class, may cause the annual returns for each class to differ. Updated
performance information for the Fund is available on the VanEck website at
vaneck.com.
CLASS A: Annual Total Returns (%) as of
12/31
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Best
Quarter: |
+33.29% |
2Q
2020 |
Worst
Quarter: |
-40.01% |
1Q
2020 |
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Average Annual Total Returns as of
12/31/2021 |
1
Year |
5
Years |
10
Years |
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Class
A Shares
(11/2/94) |
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Before Taxes |
11.79% |
0.61% |
-1.06% |
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After
Taxes on Distributions1 |
11.43% |
0.47% |
-1.17% |
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After Taxes on Distributions and Sale
of Fund Shares |
7.23% |
0.45% |
-0.79% |
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Class
C Shares
(11/2/94) |
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Before Taxes |
16.67% |
0.99% |
-1.27% |
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Class
I Shares
(5/1/06) |
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Before Taxes |
19.12% |
2.25% |
-0.07% |
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Class
Y Shares
(4/30/10) |
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Before Taxes |
18.92% |
2.06% |
-0.23% |
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S&P®
North American Natural Resources Sector Index
(reflects no deduction for
fees, expenses or taxes) |
39.95% |
1.27% |
1.27% |
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MSCI
AC World Daily TR Gross USD Index
(reflects no deduction for
fees,
expenses or taxes) |
19.04% |
14.97% |
12.44% |
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1
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
These returns are shown for
one class of shares only; after-tax returns for the other classes may
vary. Actual after-tax returns depend on your individual tax
situation and may differ from those shown in the preceding table. The after-tax return
information shown above does not apply to Fund shares held through a
tax-advantaged account, such as a 401(k) plan or Investment Retirement
Account.
PORTFOLIO
MANAGEMENT
Investment
Adviser.
Van Eck Associates Corporation
Portfolio
Managers.
Shawn
Reynolds has been Portfolio Manager of the Fund since 2010. Charles T. Cameron
has been Deputy Portfolio Manager of the Fund since 2016 and a member of the
investment team since 1995. Mr. Cameron has also been an investment team member
on various funds managed by the Adviser since 1995.
PURCHASE
AND SALE OF FUND SHARES
In
general, shares of the Fund may be purchased or redeemed on any business day,
primarily through financial representatives such as brokers or advisers, or
directly by eligible investors through the Fund’s transfer agent. Purchase
minimums for Classes A, C and Y shares are $1,000 for an initial purchase and
$100 for a subsequent purchase, with no purchase minimums for any purchase
through a retirement or pension plan account, for any “wrap fee” account and
similar programs offered without a sales charge by certain financial
institutions and third-party recordkeepers and/or administrators, and for any
account using the Automatic Investment Plan, or for any other periodic purchase
program.
Purchase
minimums for Class I shares are $1 million for an initial purchase and no
minimum for a subsequent purchase; the initial minimum may be reduced or waived
at the Adviser’s discretion.
TAX
INFORMATION
The
Fund normally distributes net investment income and net realized capital gains,
if any, to shareholders annually. These distributions are generally taxable to
you as ordinary income or capital gains, unless you are investing through a tax
advantaged retirement account, such as a 401(k) plan or an individual retirement
account (IRA), in which case your distributions may be taxed as ordinary income
when withdrawn from such account.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its affiliates may pay the intermediary for
the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your financial professional to recommend the Fund over another investment. Ask
your financial professional or visit your financial intermediary’s website for
more information.
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INTERNATIONAL
INVESTORS GOLD FUND (CLASS A, C, I,
Y) |
SUMMARY
INFORMATION
INVESTMENT OBJECTIVE
The International Investors
Gold Fund seeks long-term capital appreciation by investing in common stocks of
gold-mining companies. The Fund may take current income into consideration when
choosing investments.
FUND FEES AND EXPENSES
This
table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for Class A sales charge
discounts if you and your family (includes spouse and children under age 21)
invest, or agree to invest in the future, at least $25,000, in the
aggregate, in Classes A and C of the VanEck
Funds. More information about these and other
discounts is available from your financial professional and in the “Shareholder
Information-Sales Charges” section of this prospectus, in the “Availability of
Discounts” section of the Fund’s SAI and, with respect to purchases of shares
through specific intermediaries, in Appendix A to this prospectus, entitled
“Intermediary Sales Charge Discounts and
Waivers.”
Shareholder
Fees
(fees
paid directly from your investment)
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Class
A |
Class
C |
Class
I |
Class
Y |
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Maximum
Sales Charge (load) imposed on purchases (as a percentage of offering
price) |
5.75% |
0.00% |
0.00% |
0.00% |
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Maximum
Deferred Sales Charge (load) (as a percentage of the lesser of the net
asset value or purchase price) |
0.00%¹ |
1.00% |
0.00% |
0.00% |
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Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Class
A |
Class
C |
Class
I |
Class
Y |
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Management
Fees |
0.67% |
0.67% |
0.67% |
0.67% |
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Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.00% |
0.00% |
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Other
Expenses |
0.42% |
0.46% |
0.36% |
0.39% |
|
|
Total
Annual Fund Operating Expenses |
1.34% |
2.13% |
1.03% |
1.06% |
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Fee
Waivers and/or Expense Reimbursements2 |
0.00% |
0.00% |
-0.03% |
0.00% |
|
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Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursements |
1.34% |
2.13% |
1.00% |
1.06% |
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1
A contingent deferred
sales charge for Class A shares of 1.00% for one year applies to redemptions of
qualified commissionable shares purchased at or above the $1 million breakpoint
level.
2
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
and interest payments on securities sold short, taxes and extraordinary
expenses) from exceeding 1.45% for Class A, 2.20% for Class C, 1.00% for Class
I, and 1.10% for Class Y of the Fund’s average daily net assets per year until
May 1,
2023. 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.
EXPENSE EXAMPLE
The following example
is intended to help you compare the cost of investing in the Fund with the cost
of investing in other mutual funds. The example assumes that you invest $10,000
in the Fund for the time periods indicated and then either redeem all of your
shares at the end of these periods or continue to hold them. The example also
assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same, and applies fee waivers and/or expense
reimbursements, if any, for the periods indicated above under “Annual Fund
Operating Expenses.” Although your actual expenses may be higher or lower, based
on these assumptions, your costs would be:
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Share
Status |
1
Year |
3
Years |
5
Years |
10
Years |
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|
Class
A |
Sold
or Held |
$704 |
|
$975 |
|
$1,267 |
|
$2,095 |
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Class
C |
Sold |
$316 |
|
$667 |
|
$1,144 |
|
$2,462 |
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Held |
$216 |
|
$667 |
|
$1,144 |
|
$2,462 |
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Class
I |
Sold
or Held |
$102 |
|
$325 |
|
$566 |
|
$1,257 |
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Class
Y |
Sold
or Held |
$108 |
|
$337 |
|
$585 |
|
$1,294 |
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PORTFOLIO
TURNOVER
The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate that the Fund pays
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 23% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES
Under normal conditions, the Fund
invests at least 80% of its net assets in securities of companies principally
engaged in gold-related activities, instruments that derive their value from
gold, gold coins and bullion. A company principally engaged in
gold-related activities is one that derives at least 50% of its revenues from
gold-related activities, including the exploration, mining or processing of or
dealing in gold. The Fund concentrates its investments in the gold-mining
industry and therefore invests 25% or more of its total assets in such industry.
The Fund is considered to be “non-diversified” which means that it may invest a
larger portion of its assets in a single issuer.
The
Fund invests in securities of companies with economic ties to countries
throughout the world, including the U.S. Under ordinary circumstances, the Fund
will invest in securities of issuers from a number of different countries, which
may include emerging market countries. The Fund may invest in non-U.S. dollar
denominated securities, which are subject to fluctuations in currency exchange
rates, and securities of companies of any capitalization range. The Fund
primarily invests in companies that the portfolio manager believes represent
value opportunities and/or that have growth potential within their market niche,
through their ability to increase production capacity at reasonable cost or make
gold discoveries around the world. The portfolio manager utilizes both a
macro-economic examination of gold market themes and a fundamental analysis of
prospective companies in the search for value and growth opportunities. The
analysis of financially material risks and opportunities related to ESG (i.e.
Environmental, Social and Governance) factors is a component of the overall
investment process. ESG considerations can affect the Adviser’s fundamental
assessment of a company or country.
The
Fund may invest up to 25% of its net assets, as of the date of the investment,
in gold and silver coins, gold, silver, platinum and palladium bullion and
exchange-traded funds (“ETFs”) that invest primarily in such coins and bullion
and derivatives on the foregoing. The Fund’s investments in coins and bullion
will not earn income, and the sole source of return to the Fund from these
investments will be from gains or losses realized on the sale of such
investments.
The
Fund may gain exposure to gold bullion and other metals by investing up to 25%
of the Fund’s total assets in a wholly owned subsidiary of the Fund (the
“Subsidiary”). The Subsidiary primarily invests in gold bullion, gold futures
and other instruments that provide direct or indirect exposure to gold,
including ETFs, and also may invest in silver, platinum and palladium bullion
and futures. The Subsidiary (unlike the Fund) may invest without limitation in
these investments. The Fund will “look-through” the Subsidiary to the
Subsidiary’s underlying investments for determining compliance with the Fund’s
investment policies. For tax reasons, it may be advantageous for the Fund to
create and maintain its exposure to the commodity markets, in whole or in part,
by investing in the Subsidiary. The portfolio of the Subsidiary is managed by
the Adviser for the exclusive benefit of the Fund.
The
Fund may use derivative instruments, such as structured notes, futures, options,
warrants, currency forwards and swap agreements, to gain or hedge exposure. The
Fund may invest up to 20% of its net assets in securities issued by other
investment companies, including ETFs. The Fund may also invest in money market
funds, but these investments are not subject to this limitation. The Fund may
invest in ETFs to participate in, or gain exposure to, certain market sectors,
or when direct investments in certain countries are not permitted or
available.
PRINCIPAL RISKS
There
is no assurance that the Fund will achieve its investment objective.
The Fund’s share price and return will fluctuate with
changes in the market value of the Fund’s portfolio securities. Accordingly, an
investment in the Fund involves the risk of losing
money.
Australian
Issuers Risk.
Investments in Australian issuers may subject the Fund to regulatory, political,
currency, security, and economic risk specific to Australia. The Australian
economy is heavily dependent on exports from the agricultural and mining
sectors.
As a result, the Australian economy is susceptible to fluctuations in the
commodity markets. The Australian economy is also becoming increasingly
dependent on its growing services industry. The Australian economy is dependent
on trading with key trading partners, including the United States, China, Japan,
Singapore and certain European countries. Reduction in spending on Australian
products and services, or changes in any of the economies, may cause an adverse
impact on the Australian economy. Additionally, Australia is located in a part
of the world that has historically been prone to natural disasters, such as
wildfires, hurricanes and droughts, and is economically sensitive to
environmental events. Any such event may adversely impact the Australian
economy, causing an adverse impact on the value of the Fund.
Canadian
Issuers.
Investments in securities of Canadian issuers, including issuers located outside
of Canada that generate significant revenue from Canada, involve risks and
special considerations not typically associated with investments in the U.S.
securities markets. The Canadian economy is very dependent on the demand for,
and supply and price of, natural resources. The Canadian market is relatively
concentrated in issuers involved in the production and distribution of natural
resources. There is a risk that any changes in natural resources sectors could
have an adverse impact on the Canadian economy. Additionally, the Canadian
economy is heavily dependent on relationships with certain key trading partners,
including the United States, countries in the EU and China. Because the United
States is Canada’s largest trading partner and foreign investor, the Canadian
economy is dependent on and may be significantly affected by the U.S. economy.
Reduction in spending on Canadian products and services or changes in the U.S.
economy may adversely impact the Canadian economy. Trade agreements may further
increase Canada’s dependency on the U.S. economy, and uncertainty as to the
future of such trade agreements may cause a decline in the value of the Fund’s
Shares. Past periodic demands by the Province of Quebec for sovereignty have
significantly affected equity valuations and foreign currency movements in the
Canadian market and such demands may have this effect in the future. In
addition, certain sectors of Canada’s economy may be subject to foreign
ownership limitations. This may negatively impact the Fund’s ability to invest
in Canadian issuers.
Commodities
and Commodity-Linked Derivatives.
Exposure to the commodities markets, such as precious metals, industrial metals,
gas and other energy products and natural resources, may subject the Fund to
greater volatility than investments in traditional securities. The commodities
markets may fluctuate widely based on a variety of factors including changes in
overall market movements, political and economic events and policies, war,
disease, acts of terrorism, natural disasters, and changes in interest rates or
inflation rates. Because the value of a commodity-linked derivative instrument
and structured note typically are based upon the price movements of physical
commodities, the value of these securities will rise or fall in response to
changes in the underlying commodities or related index of
investment.
Commodities
and Commodity-Linked Derivatives Tax Risk. The
tax treatment of commodity-linked derivative instruments may be adversely
affected by changes in legislation, regulations or other legally binding
authority. If, as a result of any such adverse action, the income of the Fund
from certain commodity-linked derivatives were treated as non- qualifying
income, the Fund may fail to qualify as a regulated investment company and/or be
subject to federal income tax at the Fund level. The uncertainty surrounding the
treatment of certain derivative instruments under the qualification tests for a
regulated investment company may limit the Fund’s use of such derivative
instruments.
Concentration
in Gold-Mining Industry. The
Fund may be subject to greater risks and market fluctuations than a fund whose
portfolio has exposure to a broader range of industries. The Fund may be
susceptible to financial, economic, political or market events, as well as
government regulation, impacting the gold industry. Fluctuations in the price of
gold often dramatically affect the profitability of companies in the gold
industry.
Derivatives.
The use of derivatives, such as swap agreements, options, warrants, futures
contracts, currency forwards and structured notes, presents risks different
from, and possibly greater than, the risks associated with investing directly in
traditional securities. The use of derivatives can lead to losses because of
adverse movements in the price or value of the underlying currency, security,
asset, index or reference rate. Derivative strategies often involve leverage,
which may exaggerate a loss, potentially causing the Fund to lose more money
than it would have lost had it invested in the underlying security. Also, a
liquid secondary market may not always exist for the Fund’s derivative positions
at times when the Fund might wish to terminate or sell such positions.
Over-the-counter instruments may be illiquid, and transactions in derivatives
traded in the over-the-counter market are subject to counterparty
risk.
Direct
Investments. Direct
investments may involve a high degree of business and financial risk that can
result in substantial losses. Because of the absence of any public trading
market for these investments, the Fund may take longer to liquidate these
positions than would be the case for publicly traded securities. Direct
investments are generally considered illiquid and will be aggregated with other
illiquid investments for purposes of the limitation on illiquid
investments.
Emerging
Market Securities. Emerging
market securities typically present even greater exposure to the risks described
under “Foreign Securities” and may be particularly sensitive to certain economic
changes. Emerging market securities are exposed to a number of risks that may
make these investments volatile in price or difficult to evaluate and trade.
Companies in emerging market countries generally may be subject to less
stringent financial reporting, regulatory, disclosure, accounting, auditing and
recordkeeping standards than companies in more developed countries. In addition,
securities law and the enforcement of systems of taxation in many emerging
market countries may change quickly and unpredictably, and the ability to bring
and enforce actions, or to obtain information needed to pursue or enforce such
actions, may be limited.
ESG
Investing Risk. The
Adviser’s consideration of ESG risks and opportunities in the Fund’s investment
process could result in the Fund performing differently compared to funds that
do not take into account ESG considerations. The Adviser’s consideration of ESG
risks and opportunities may result in the Fund investing in securities,
industries, or sectors that underperform other securities, industries, or
sectors, or underperform the market as a whole. The Fund is also subject to the
risk that the companies identified by the Adviser do not operate as expected
when addressing ESG issues. Regulatory changes or interpretations regarding the
definitions and/or use of ESG criteria could have a material adverse effect on
the Fund’s ability to invest in accordance with its ESG
considerations.
Foreign
Currency Transactions.
An investment transacted in a foreign currency may lose value due to
fluctuations in the rate of exchange. These fluctuations can make the return on
an investment go up or down, entirely apart from the quality or performance of
the investment itself.
Foreign
Securities.
Investments in the securities of foreign issuers involve risks beyond those
associated with investments in U.S. securities. These additional risks include
greater market volatility, the availability of less reliable financial
information, higher transactional and custody costs, taxation by foreign
governments, decreased market liquidity and political instability. Because
certain foreign securities markets may be limited in size, the activity of large
traders may have an undue influence on the prices of securities that trade in
such markets. The Fund invests in securities of issuers located in countries
whose economies are heavily dependent upon trading with key partners. Any
reduction in this trading may have an adverse impact on the Fund’s
investments.
Investments
in Other Investment Companies.
The Fund’s investment in another investment company may subject the Fund
indirectly to the underlying risks of the investment company. The Fund also may
bear its share of the underlying investment company’s fees and expenses, which
are in addition to the Fund’s own fees and expenses.
Management.
Investment decisions made by the Adviser in seeking to achieve the Fund’s
investment objective may not produce the returns expected by the Adviser, may
cause a decline in the value of the securities held by the Fund and, in turn,
cause the Fund’s shares to lose value or underperform other funds with similar
investment objectives.
Market
Risk. The
prices of the securities in the Fund are subject to the risks associated with
investing in the securities market, including general economic conditions,
sudden and unpredictable drops in value, exchange trading suspensions and
closures and public health risks. These risks may be magnified if certain
social, political, economic and other conditions and events (such as natural
disasters, epidemics and pandemics, terrorism, conflicts and social unrest)
adversely interrupt the global economy; in these and other circumstances, such
events or developments might affect companies world-wide. An investment in
the Fund may lose money.
Non-Diversification.
A non-diversified fund’s greater investment
in a single issuer makes the fund more susceptible to financial, economic or
market events impacting such issuer. A decline in the value of or default by a
single security in the non-diversified fund’s portfolio may have a greater
negative effect than a similar decline or default by a single security in a
diversified portfolio.
Operational.
The Fund is exposed to operational risk arising from a number of factors,
including but not limited to, human error, processing and communication errors,
errors of the Fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or system failures.
Regulatory.
Changes in the laws or regulations of the United States or the Cayman Islands,
including any changes to applicable tax laws and regulations, could impair the
ability of the Fund to achieve its investment objective and could increase the
operating expenses of the Fund or the Subsidiary.
Small-
and Medium-Capitalization Companies.
The Fund may invest in small- and medium-capitalization companies and, therefore
will be subject to certain risks associated with small- and medium-
capitalization companies. These companies are often subject to less analyst
coverage and may be in early and less predictable periods of their corporate
existences, with little or no record of profitability. In addition, these
companies often have greater price volatility, lower trading volume and less
liquidity than larger more established companies. These companies tend to have
smaller revenues, narrower product lines, less management depth and experience,
smaller shares of their product or service markets, fewer financial resources
and less competitive strength than large-capitalization companies. Returns on
investments in securities of small- and medium-capitalization companies could
trail the returns on investments in securities of larger companies.
Subsidiary.
By
investing in the Subsidiary, the Fund is indirectly exposed to the risks
associated with the Subsidiary’s investments. The Subsidiary is not registered
under the Investment Company Act of 1940, as amended (the “1940 Act”) and,
unless otherwise noted in this prospectus, is not subject to all the investor
protections of the 1940 Act.
PERFORMANCE
The following
chart and table provide some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing how
the Fund’s average annual total returns compare with those of a broad measure of
market performance and one or more other performance measures.
For instance, the NYSE Arca Gold Miners Index is a modified market
capitalization-weighted index comprised of publicly traded companies primarily
involved in the mining of gold and silver in locations around the world. MSCI AC
World Daily TR Gross USD Index represents large- and mid-cap companies across
developed and emerging market countries. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. The annual returns in the bar chart
are for the Fund’s Class A shares and do not reflect sales loads. If sales loads
were reflected, returns would be lower than those
shown.
Additionally, large purchases and/or
redemptions of shares of a class, relative to the amount of assets represented
by the class, may cause the annual returns for each class to differ. Updated
performance information for the Fund is available on the VanEck website at
vaneck.com.
CLASS A: Annual Total Returns (%) as of
12/31
|
|
|
|
|
|
|
|
|
Best
Quarter: |
+73.76% |
2Q
2020 |
Worst
Quarter: |
-33.43% |
2Q
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns as of
12/31/2021 |
1
Year |
5
Years |
10
Years |
|
|
|
Class
A Shares
(2/10/56) |
|
|
|
|
|
|
Before Taxes |
-19.23% |
8.40% |
-2.85% |
|
|
|
After
Taxes on Distributions1 |
-21.21% |
6.07% |
-4.22% |
|
|
|
After Taxes on Distributions and Sale
of Fund Shares |
-11.36% |
5.61% |
-2.61% |
|
|
|
Class
C Shares
(10/3/03) |
|
|
|
|
|
|
Before Taxes |
-15.68% |
8.88% |
-3.00% |
|
|
|
Class
I Shares
(10/2/06) |
|
|
|
|
|
|
Before Taxes |
-13.94% |
10.14% |
-1.86% |
|
|
|
Class
Y Shares
(4/30/10) |
|
|
|
|
|
|
Before Taxes |
-14.02% |
10.01% |
-1.98% |
|
|
|
NYSE
Arca Gold Miners Index
(reflects no deduction for
fees, expenses or taxes, except withholding
taxes) |
-9.37% |
10.10% |
-3.50% |
|
|
|
MSCI
AC World Daily TR Gross USD Index
(reflects no deduction for fees, expenses or
taxes) |
19.04% |
14.97% |
12.44% |
|
|
|
|
|
|
|
|
|
1
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
These returns are shown for
one class of shares only; after-tax returns for the other classes may
vary. Actual after-tax returns depend on your individual tax
situation and may differ from those shown in the preceding table. The after-tax return
information shown above does not apply to Fund shares held through a
tax-advantaged account, such as a 401(k) plan or Investment Retirement
Account.
PORTFOLIO
MANAGEMENT
Investment
Adviser.
Van Eck Associates Corporation
Portfolio
Managers.
Joseph
M. Foster has been Portfolio Manager of the Fund since 1998 and a member of the
investment team since 1996. Imaru Casanova has been Deputy Portfolio Manager of
the Fund since 2014 and a member of the investment team since 2011.
PURCHASE
AND SALE OF FUND SHARES
In
general, shares of the Fund may be purchased or redeemed on any business day,
primarily through financial representatives such as brokers or advisers, or
directly by eligible investors through the Fund’s transfer agent. Purchase
minimums for Classes A, C and Y shares are $1,000 for an initial purchase and
$100 for a subsequent purchase, with no purchase minimums for any purchase
through a retirement or pension plan account, for any “wrap fee” account and
similar programs offered without a sales charge by certain financial
institutions and third-party recordkeepers and/or administrators, and for any
account using the Automatic Investment Plan, or for any other periodic purchase
program.
Purchase
minimums for Class I shares are $1 million for an initial purchase and no
minimum for a subsequent purchase; the initial minimum may be reduced or waived
at the Adviser’s discretion.
TAX
INFORMATION
The
Fund normally distributes net investment income and net realized capital gains,
if any, to shareholders annually. These distributions are generally taxable to
you as ordinary income or capital gains, unless you are investing through a tax
advantaged retirement account, such as a 401(k) plan or an individual retirement
account (IRA), in which case your distributions may be taxed as ordinary income
when withdrawn from such account.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and/or its affiliates may pay the intermediary for
the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your financial professional to recommend the Fund over another investment. Ask
your financial professional or visit your financial intermediary’s website for
more information.
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|
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II.
INVESTMENT OBJECTIVES, STRATEGIES, POLICIES, RISKS AND OTHER
INFORMATION |
This
section states each Fund’s investment objective and describes certain strategies
and policies that the Fund may utilize in pursuit of its investment objective.
This section also provides additional information about the principal risks
associated with investing in each Fund.
1.
INVESTMENT OBJECTIVES
Fund Emerging
Markets Fund
Objective The
Emerging Markets Fund seeks long-term capital appreciation by investing
primarily in equity securities in emerging markets around the
world.
Fund Emerging
Markets Leaders Fund
Objective The
Emerging Markets Leaders Fund seeks long-term capital appreciation by investing
primarily in equity securities in emerging markets around the
world.
Fund Environmental
Sustainability Fund
Objective The
Environmental Sustainability Fund seeks long-term capital appreciation by
investing primarily in equity securities of companies operating in environmental
sustainability markets.
Fund Global
Resources Fund
Objective The
Global Resources Fund seeks long-term capital appreciation by investing
primarily in global resource securities. Income is a secondary
consideration.
Fund International
Investors Gold Fund
Objective The
International Investors Gold Fund seeks long-term capital appreciation by
investing in common stocks of gold-mining companies. The Fund may take current
income into consideration when choosing investments.
Each
of the Emerging Markets Fund, Global Resources Fund and International Investors
Gold Fund's investment objective is fundamental and may only be changed with
shareholder approval.
Each
of the Emerging Markets Leaders Fund and Environmental Sustainability Fund's
investment objective is non-fundamental and may be changed by the Board of
Trustees without shareholder approval. To the extent practicable, the Fund will
provide shareholders with 60 days’ prior written notice before changing its
investment objective.
2.
ADDITIONAL INFORMATION ABOUT PRINCIPAL INVESTMENT STRATEGIES AND
RISKS
Depositary
Receipts Risk. (Emerging
Markets Leaders Fund only.) Depositary receipts are certificates that evidence
ownership of shares of a foreign issuer and are alternatives to purchasing the
underlying foreign securities directly in their national markets and currencies.
Depositary receipts may be subject to certain of the risks associated with
direct investments in the securities of foreign companies, such as currency,
political, economic and market risks, because their values depend on the
performance of the non-dollar denominated underlying foreign securities.
Moreover, depositary receipts may not track the price of the underlying foreign
securities on which they are based, and their value may change materially at
times when U.S. markets are not open for trading. The issuers of certain
depositary receipts are under no obligation to distribute shareholder
communications to the holders of such receipts, or to pass through to them any
voting rights with respect to the deposited securities. Investments in
depositary receipts may be less liquid than the underlying shares in their
primary trading market. The issuers of depositary receipts may discontinue
issuing new depositary receipts and withdraw existing depositary receipts at any
time, which may result in costs and delays in the distribution of the underlying
assets to the Fund and may negatively impact the Fund’s
performance.
Commodities
and Commodity-Linked Derivatives Risk.
(Global Resources Fund and International Investors Gold Fund only.) Commodities
include precious metals (such as gold, silver, platinum and palladium in the
form of bullion and coins), industrial metals, gas and other energy products and
natural resources. The value of a commodity-linked derivative investment
generally is based upon the price movements of a physical commodity (such as
energy, mineral, or agricultural products), a commodity futures contract or
commodity index, or other economic variable based upon changes in the value of
commodities or the commodities markets. The Fund may seek exposure to the
commodity markets through investments in leveraged or unleveraged
commodity-linked or index-linked notes, which are derivative debt instruments
with principal and/or coupon payments linked to the value of commodities,
commodity futures contracts or the performance of commodity indices. These notes
are sometimes referred to as “structured notes” because the terms of these notes
may be structured by the issuer and the purchaser of the note.
Exposure
to the commodities markets may subject the Fund to greater volatility than
investments in traditional securities. The commodities markets may fluctuate
widely based on a variety of factors including changes in overall market
movements, political and economic events and policies, war, disease, acts of
terrorism, natural disasters, and changes in interest rates or inflation rates.
Prices of various commodities may also be affected by factors such as drought,
floods, weather, embargoes, tariffs and other regulatory developments. The
prices of commodities can also fluctuate widely due to supply and demand
disruptions in major producing or consuming regions. Certain commodities may be
produced in a limited number of countries and may be
controlled
by a small number of producers. As a result, political, economic and supply
related events in such countries could have a disproportionate impact on the
prices of such commodities.
Commodity-Linked
“Structured” Securities.
Because the value of a commodity-linked derivative instrument typically is based
upon the price movements of a physical commodity, the value of the
commodity-linked derivative instrument may be affected by changes in overall
market movements, commodity index volatility, changes in interest rates, or
factors affecting a particular industry. The value of these securities will rise
or fall in response to changes in the underlying commodity or related index of
investment.
Structured
Notes. Structured
notes expose the Fund economically to movements in commodity prices. The
performance of a structured note is determined by the price movement of the
commodity underlying the note. A highly liquid secondary market may not exist
for structured notes, and there can be no assurance that one will develop. These
notes are often leveraged, increasing the volatility of each note’s market value
relative to changes in the underlying commodity, commodity futures contract or
commodity index.
Tax
Risk.
The tax treatment of commodity-linked derivative instruments may be adversely
affected by changes in legislation, regulations or other legally binding
authority. If, as a result of any such adverse action, the income of the Fund
from certain commodity-linked derivatives was treated as non-qualifying income,
the Fund might fail to qualify as a regulated investment company and/or be
subject to federal income tax at the Fund level. As a regulated investment
company, the Fund must derive at least 90% of its gross income for each taxable
year from sources treated as qualifying income under the Internal Revenue Code
of 1986, as amended (the “Code”), including income from any financial instrument
or position that constitutes a security under section 2(a)(36) of the 1940 Act.
In September 2016 the Internal Revenue Service (“IRS”) announced that it will no
longer issue private letter rulings on questions relating to the treatment of a
corporation as a regulated investment company that require a determination of
whether a financial instrument or position is a security under section 2(a)(36)
of the 1940 Act. The IRS also revoked rulings issued to some funds regarding the
treatment of commodity-linked notes held directly by such funds. The uncertainty
surrounding the treatment of certain derivative instruments under the
qualification tests for a regulated investment company may limit the Fund’s use
of such derivative instruments. The Global Resources Fund and the International
Investors Gold Fund also may incur transaction and other costs to comply with
any new or additional guidance from the IRS.
Communication
Services Sector Risk. (Emerging
Markets Fund and Emerging Markets Leaders Fund only.) As of December 31, 2021,
the Emerging Markets Fund invested a significant portion of its assets in
companies in the communication services sector. Separately, the Emerging Markets
Leaders Fund may invest a significant portion of its assets in companies in the
communication services sector. Each Fund may be subject to greater risks and
market fluctuations than a fund whose portfolio has exposure to a broader range
of sectors. Each Fund will be sensitive to changes in, and its performance may
depend to a greater extent on, the overall condition of the communication
services sector. Companies in the communication services sector may be affected
by industry competition, substantial capital requirements, government
regulations and obsolescence of communications products and services due to
technological advancement.
Concentration
in Gold-Mining Industry Risk.
(International Investors Gold Fund only.) The Fund concentrates its investments
in the securities of companies engaged in gold-related activities, including
exploration, mining, processing, or dealing in gold. The International Investors
Gold Fund may be subject to greater risks and market fluctuations than a fund
whose portfolio has exposure to a broader range of industries. The Fund may be
susceptible to financial, economic, political or market events, as well as
government regulation (including environmental regulation), impacting the
gold-mining industry. Fluctuations in the price of gold often dramatically
affect the profitability of companies in the gold-mining industry. Changes in
the political or economic climate for a large gold producer, such as China or
Australia, may have a direct impact on the price of gold worldwide. The value of
securities of companies in the gold-mining industry are highly dependent on the
price of gold at any given time.
Consumer
Discretionary Sector Risk. (Emerging
Markets Fund and Emerging Markets Leaders Fund only.) As of December 31, 2021,
the Emerging Markets Fund invested a significant portion of its assets in
companies in the consumer discretionary sector. Separately, the Emerging Markets
Leaders Fund may invest a significant portion of its assets in companies in the
consumer discretionary sector. Each Fund may be subject to greater risks and
market fluctuations than a fund whose portfolio has exposure to a broader range
of sectors. Each Fund may be susceptible to financial, economic, political or
market events, as well as government regulation, impacting the consumer
discretionary sector. The consumer discretionary sector comprises companies
whose businesses are sensitive to economic cycles, such as manufacturers of
high-end apparel and automobile and leisure companies. Companies in the consumer
discretionary sector are subject to fluctuations in supply and demand. These
companies may also be adversely affected by changes in consumer spending as a
result of world events, political and economic conditions, commodity price
volatility, changes in exchange rates, imposition of import controls, increased
competition, depletion of resources and labor relations.
Derivatives
Risk.
(Environmental Sustainability Fund, Global Resources Fund and International
Investors Gold Fund only.) The term “derivatives” covers a broad range of
financial instruments, including swap agreements, options, warrants, futures
contracts, currency forwards and structured notes, whose values are derived, at
least in part, from the value of one or more indicators, such as a security,
asset, index or reference rate.
The
use of derivatives presents risks different from, and possibly greater than, the
risks associated with investing directly in traditional securities. The use of
derivatives can lead to losses because of adverse movements in the price or
value of the underlying currency, security, commodity, asset, index or reference
rate, which may be magnified by certain features of the derivatives. Derivative
strategies often involve leverage, which may exaggerate a loss, potentially
causing the Funds to lose more money than it originally committed to initial
margin, and more money than it would have lost had it invested in the underlying
security. The values of derivatives may move in unexpected ways, especially in
unusual market conditions, and may result in increased volatility, among other
consequences. There may be imperfect correlation between changes in the market
value of a derivative and the value of its underlying reference asset, or in the
case of hedging, in the value of the portfolio investment being hedged, and this
may be exaggerated in times of market stress or volatility. Many derivatives
require the Funds to post margin or collateral or otherwise maintain liquid
assets in a manner that satisfies contractual undertakings and regulatory
requirements. In order to satisfy margin or other requirements, the Funds may
need to sell securities from its portfolio or exit positions at a time when it
may be disadvantageous to do so. All of this could, in turn, affect the Funds'
ability to fully execute its investment strategies and/or achieve its investment
objective. The use of derivatives may increase the amount of taxes payable by
shareholders because changes in government regulation of derivatives could
affect the character, timing and amount of the Funds’ taxable income or gains.
Additionally, the Funds’ use of derivatives may be limited by the requirements
for taxation of the Fund as a regulated investment company. Other risks arise
from the Funds’ potential inability to terminate or sell derivative positions. A
liquid secondary market may not always exist for the Funds’ derivative positions
at times when the Funds might wish to terminate or sell such positions.
Over-the-counter instruments (investments not traded on an exchange) may be
illiquid, and transactions in derivatives traded in the over-the-counter market
are subject to counterparty risk, which is the risk that the Funds' counterparty
in a transaction may be unwilling, or unable, to perform its obligations under
the transaction. The use of derivatives also involves the risk of mispricing or
improper valuation and that changes in the value of the derivative may not
correlate perfectly with the underlying currency, security, commodity, asset,
index or reference rate. Derivatives may be subject to changing government
regulation that could impact the Funds' ability to use certain derivatives and
their cost.
On
October 28, 2020, the SEC adopted new regulations governing the use of
derivatives by registered investment companies. The Fund will be required to
implement and comply with Rule 18f-4 by the third quarter of 2022. Rule 18f-4
will impose limits on the amount of derivatives a fund can enter into, eliminate
the asset segregation framework currently used by funds to comply with Section
18 of the Investment Company Act of 1940, as amended, treat derivatives as
senior securities so that a failure to comply with the limits would result in a
statutory violation and require funds whose use of derivatives is more than a
limited specified exposure amount to establish and maintain a comprehensive
derivatives risk management program and appoint a derivatives risk manager. As
the Funds come into compliance, the Funds' approach to asset segregation and
coverage requirements described in this Prospectus may be impacted.
Direct
Investments Risk.
Direct investments are investments made directly with an enterprise not through
publicly traded shares or interests. A Fund will not invest more than 10% of its
total assets in direct investments. Direct investments may involve a high degree
of business and financial risk that can result in substantial losses. Because of
the absence of any public trading market for these investments, a Fund may take
longer to liquidate these positions than would be the case for publicly traded
securities. Although these securities may be resold in privately negotiated
transactions, the prices on these sales could be less than those originally paid
by the Fund. Issuers whose securities are not publicly traded may not be subject
to public disclosure and other investor protection requirements applicable to
publicly traded securities. Direct investments are generally considered illiquid
and will be aggregated with other illiquid investments for purposes of the
limitation on illiquid investments.
Emerging
Market Securities Risk.
Investments in securities of emerging market issuers involve risks not typically
associated with investments in securities of issuers in more developed countries
that may negatively affect the value of your investment in the Fund. Such
heightened risks may include, among others, expropriation and/or nationalization
of assets, restrictions on and government intervention in international trade,
confiscatory taxation, political instability, including authoritarian and/or
military involvement in governmental decision making, armed conflict, the impact
on the economy as a result of civil war, crime (including drug violence) and
social instability as a result of religious, ethnic and/or socioeconomic unrest.
Issuers in certain emerging market countries are subject to less stringent
requirements regarding accounting, auditing, financial reporting and record
keeping than are issuers in more developed markets, and therefore, all material
information may not be available or reliable. Emerging markets are also more
likely than developed markets to experience problems with the clearing and
settling of trades, as well as the holding of securities by local banks, agents
and depositories. Low trading volumes and volatile prices in less developed
markets may make trades harder to complete and settle, and governments or trade
groups may compel local agents to hold securities in designated depositories
that may not be subject to independent evaluation. Local agents are held only to
the standards of care of their local markets. In general, the less developed a
country’s securities markets are, the greater the likelihood of custody
problems. Additionally, each of the factors described below could have a
negative impact on the Fund’s performance and increase the volatility of the
Fund.
Securities
Markets. Securities
markets in emerging market countries are underdeveloped and are often considered
to be less correlated to global economic cycles than those markets located in
more developed countries. Securities markets in emerging market countries are
subject to greater risks associated with market volatility, lower market
capitalization, lower trading volume, illiquidity, inflation, greater price
fluctuations, uncertainty regarding the existence of
trading
markets, governmental control and heavy regulation of labor and industry. These
factors, coupled with restrictions on foreign investment and other factors,
limit the supply of securities available for investment by the Fund. This will
affect the rate at which the Fund is able to invest in emerging market
countries, the purchase and sale prices for such securities and the timing of
purchases and sales. Emerging markets can experience high rates of inflation,
deflation and currency devaluation. The prices of certain securities listed on
securities markets in emerging market countries have been subject to sharp
fluctuations and sudden declines, and no assurance can be given as to the future
performance of listed securities in general. Volatility of prices may be greater
than in more developed securities markets. Moreover, securities markets in
emerging market countries may be closed for extended periods of time or trading
on securities markets may be suspended altogether due to political or civil
unrest. Market volatility may also be heightened by the actions of a small
number of investors. Brokerage firms in emerging market countries may be fewer
in number and less established than brokerage firms in more developed markets.
Since the Fund may need to effect securities transactions through these
brokerage firms, the Fund is subject to the risk that these brokerage firms will
not be able to fulfill their obligations to the Fund. This risk is magnified to
the extent the Fund effects securities transactions through a single brokerage
firm or a small number of brokerage firms. In addition, the infrastructure for
the safe custody of securities and for purchasing and selling securities,
settling trades, collecting dividends, initiating corporate actions, and
following corporate activity is not as well developed in emerging market
countries as is the case in certain more developed markets.
Political
and Economic Risk. Certain
emerging market countries have historically been subject to political
instability and their prospects are tied to the continuation of economic and
political liberalization in the region. Instability may result from factors such
as government or military intervention in decision making, terrorism, civil
unrest, extremism or hostilities between neighboring countries. Any of these
factors, including an outbreak of hostilities could negatively impact the Fund’s
returns. Limited political and democratic freedoms in emerging market countries
might cause significant social unrest. These factors may have a significant
adverse effect on an emerging market country’s economy.
Many
emerging market countries may be heavily dependent upon international trade and,
consequently, may continue to be negatively affected by trade barriers, exchange
controls, managed adjustments in relative currency values and other
protectionist measures imposed or negotiated by the countries with which it
trades. They also have been, and may continue to be, adversely affected by
economic conditions in the countries with which they trade.
In
addition, commodities (such as oil, gas and minerals) represent a significant
percentage of certain emerging market countries’ exports and these economies are
particularly sensitive to fluctuations in commodity prices. Adverse economic
events in one country may have a significant adverse effect on other countries
of this region. In addition, most emerging market countries have experienced, at
one time or another, severe and persistent levels of inflation, including, in
some cases, hyperinflation. This has, in turn, led to high interest rates,
extreme measures by governments to keep inflation in check, and a generally
debilitating effect on economic growth.
Although
inflation in many countries has lessened, there is no guarantee it will remain
at lower levels. The political history of certain emerging market countries has
been characterized by political uncertainty, intervention by the military in
civilian and economic spheres, and political corruption. Such events could
reverse favorable trends toward market and economic reform, privatization, and
removal of trade barriers, and result in significant disruption in securities
markets in the region.
Also,
from time to time, certain issuers located in emerging market countries in which
the Fund invests may operate in, or have dealings with, countries subject to
sanctions and/or embargoes imposed by the U.S. Government and the United Nations
and/or countries identified by the U.S. Government as state sponsors of
terrorism. As a result, an issuer may sustain damage to its reputation if it is
identified as an issuer which operates in, or has dealings with, such countries.
A Fund, as an investor in such issuers, will be indirectly subject to those
risks.
The
economies of one or more countries in which the Fund may invest may be in
various states of transition from a planned economy to a more market oriented
economy. The economies of such countries differ from the economies of most
developed countries in many respects, including levels of government
involvement, states of development, growth rates, control of foreign exchange
and allocation of resources. Economic growth in these economies may be uneven
both geographically and among various sectors of their economies and may also be
accompanied by periods of high inflation. Political changes, social instability
and adverse diplomatic developments in these countries could result in the
imposition of additional government restrictions, including expropriation of
assets, confiscatory taxes or nationalization of some or all of the property
held by the underlying issuers of securities included in the Fund. There is no
guarantee that the governments of these countries will not revert back to some
form of planned or non-market oriented economy, and such governments continue to
be active participants in many economic sectors through ownership positions and
regulation. The allocation of resources in such countries is subject to a high
level of government control. Such countries’ governments may strictly regulate
the payment of foreign currency denominated obligations and set monetary policy.
Through their policies, these governments may provide preferential treatment to
particular industries or companies. The policies set by the government of one of
these countries could have a substantial effect on that country’s
economy.
Investment
and Repatriation Restrictions.
The government in an emerging market country may restrict or control to varying
degrees the ability of foreign investors to invest in securities of issuers
located or operating in such emerging market countries. These restrictions
and/or controls may at times limit or prevent foreign investment in securities
of issuers located or operating in emerging market countries and may inhibit the
Fund’s ability to pursue its investment objective. In addition, the Fund may not
be able to buy or sell securities or receive full value for such securities.
Moreover, certain emerging market countries may require governmental approval or
special licenses prior to investments by foreign investors and may limit the
amount of investments by foreign investors in a particular industry and/or
issuer; may limit such foreign investment to a certain class of securities of an
issuer that may have less advantageous rights than the classes available for
purchase by domiciliaries of such emerging market countries; and/or may impose
additional taxes on foreign investors. A delay in obtaining a required
government approval or a license would delay investments in those emerging
market countries, and, as a result, the Fund may not be able to invest in
certain securities while approval is pending. The government of certain emerging
market countries may also withdraw or decline to renew a license that enables
the Fund to invest in such country. These factors make investing in issuers
located or operating in emerging market countries significantly riskier than
investing in issuers located or operating in more developed countries, and any
one of them could cause a decline in the value of the Fund’s
Shares.
Additionally,
investments in issuers located in certain emerging market countries may be
subject to a greater degree of risk associated with governmental approval in
connection with the repatriation of investment income, capital or the proceeds
of sales of securities by foreign investors. Moreover, there is the risk that if
the balance of payments in an emerging market country declines, the government
of such country may impose temporary restrictions on foreign capital
remittances. Consequently, the Fund could be adversely affected by delays in, or
a refusal to grant, required governmental approval for repatriation of capital,
as well as by the application to the Fund of any restrictions on investments.
Furthermore, investments in emerging market countries may require the Fund to
adopt special procedures, seek local government approvals or take other actions,
each of which may involve additional costs to the Fund.
Available
Disclosure About Emerging Market Issuers. Issuers
located or operating in emerging market countries are not subject to the same
rules and regulations as issuers located or operating in more developed
countries. Therefore, there may be less financial and other information publicly
available with regard to issuers located or operating in emerging market
countries and such issuers are not subject to the uniform accounting, auditing
and financial reporting standards applicable to issuers located or operating in
more developed countries.
Foreign
Currency Considerations. A
Fund’s assets that are invested in securities of issuers in emerging market
countries will generally be denominated in foreign currencies, and the proceeds
received by the Fund from these investments will be principally in foreign
currencies. The value of an emerging market country’s currency may be subject to
a high degree of fluctuation. This fluctuation may be due to changes in interest
rates, the effects of monetary policies issued by the United States, foreign
governments, central banks or supranational entities, the imposition of currency
controls or other national or global political or economic developments. The
economies of certain emerging market countries can be significantly affected by
currency devaluations. Certain emerging market countries may also have managed
currencies which are maintained at artificial levels relative to the U.S. dollar
rather than at levels determined by the market. This type of system can lead to
sudden and large adjustments in the currency which, in turn, can have a
disruptive and negative effect on foreign investors.
A
Fund’s exposure to an emerging market country’s currency and changes in value of
such foreign currencies versus the U.S. dollar may reduce the Fund’s investment
performance and the value of your investment in the Fund. Meanwhile, the Fund
will compute and expects to distribute its income in U.S. dollars, and the
computation of income will be made on the date that the income is earned by the
Fund at the foreign exchange rate in effect on that date. Therefore, if the
value of the respective emerging market country’s currency falls relative to the
U.S. dollar between the earning of the income and the time at which the Fund
converts the relevant emerging market country’s currency to U.S. dollars, the
Fund may be required to liquidate certain positions in order to make
distributions if the Fund has insufficient cash in U.S. dollars to meet
distribution requirements under the Internal Revenue Code. The liquidation of
investments, if required, could be at disadvantageous prices or otherwise have
an adverse impact on the Fund’s performance.
Certain
emerging market countries also restrict the free conversion of their currency
into foreign currencies, including the U.S. dollar. There is no significant
foreign exchange market for many such currencies and it would, as a result, be
difficult for the Fund to engage in foreign currency transactions designed to
protect the value of the Fund’s interests in securities denominated in such
currencies. Furthermore, if permitted, the Fund may incur costs in connection
with conversions between U.S. dollars and an emerging market country’s currency.
Foreign exchange dealers realize a profit based on the difference between the
prices at which they are buying and selling various currencies. Thus, a dealer
normally will offer to sell a foreign currency to the Fund at one rate, while
offering a lesser rate of exchange should the Fund desire immediately to resell
that currency to the dealer. A Fund will conduct its foreign currency exchange
transactions either on a spot (i.e., cash) basis at the spot rate prevailing in
the foreign currency exchange market, or through entering into forward, futures
or options contracts to purchase or sell foreign currencies.
Operational
and Settlement Risk.
In addition to having less developed securities markets, emerging market
countries have less developed custody and settlement practices than certain
developed countries. Rules adopted under the 1940 Act permit the Fund to
maintain its foreign securities and cash in the custody of certain eligible
non-U.S. banks and securities depositories. Banks in emerging market countries
that are eligible foreign sub-custodians may be recently organized or otherwise
lack extensive operating experience. In addition, in certain emerging market
countries there may be legal restrictions or limitations on the ability of the
Fund to recover assets held in custody by a foreign sub-custodian in the event
of the bankruptcy of the sub-custodian. Because settlement systems in emerging
market countries may be less organized than in other developed markets, there
may be a risk that settlement may be delayed and that cash or securities of the
Fund may be in jeopardy because of failures of or defects in the systems. Under
the laws in many emerging market countries, the Fund may be required to release
local shares before receiving cash payment or may be required to make cash
payment prior to receiving local shares, creating a risk that the Fund may
surrender cash or securities without ever receiving securities or cash from the
other party. Settlement systems in emerging market countries also have a higher
risk of failed trades and back to back settlements may not be
possible.
A
Fund may not be able to convert a foreign currency to U.S. dollars in time for
the settlement of redemption requests. In the event of a redemption request from
an AP, the Fund will be required to deliver U.S. dollars to the AP on the
settlement date. In the event that the Fund is not able to convert the foreign
currency to U.S. dollars in time for settlement, which may occur as a result of
the delays described above, the Fund may be required to liquidate certain
investments and/or borrow money in order to fund such redemption. The
liquidation of investments, if required, could be at disadvantageous prices or
otherwise have an adverse impact on the Fund’s performance (e.g., by causing the
Fund to overweight foreign currency denominated holdings and underweight other
holdings which were sold to fund redemptions). In addition, the Fund will incur
interest expense on any borrowings and the borrowings will cause the Fund to be
leveraged, which may magnify gains and losses on its investments.
In
certain emerging market countries, the marketability of investments may be
limited due to the restricted opening hours of trading exchanges, and a
relatively high proportion of market value may be concentrated in the hands of a
relatively small number of investors. In addition, because certain emerging
market countries’ trading exchanges on which the Fund’s portfolio securities may
trade are open when the relevant Exchange is closed, the Fund may be subject to
heightened risk associated with market movements. Trading volume may be lower on
certain emerging market countries’ trading exchanges than on more developed
securities markets and securities may be generally less liquid. The
infrastructure for clearing, settlement and registration on the primary and
secondary markets of certain emerging market countries are less developed than
in certain other markets and under certain circumstances this may result in the
Fund experiencing delays in settling and/or registering transactions in the
markets in which it invests, particularly if the growth of foreign and domestic
investment in certain emerging market countries places an undue burden on such
investment infrastructure. Such delays could affect the speed with which the
Fund can transmit redemption proceeds and may inhibit the initiation and
realization of investment opportunities at optimum times.
Certain
issuers in emerging market countries may utilize share blocking schemes. Share
blocking refers to a practice, in certain foreign markets, where voting rights
related to an issuer’s securities are predicated on these securities being
blocked from trading at the custodian or sub-custodian level for a period of
time around a shareholder meeting. These restrictions have the effect of barring
the purchase and sale of certain voting securities within a specified number of
days before and, in certain instances, after a shareholder meeting where a vote
of shareholders will be taken. Share blocking may prevent the Fund from buying
or selling securities for a period of time. During the time that shares are
blocked, trades in such securities will not settle. The blocking period can last
up to several weeks. The process for having a blocking restriction lifted can be
quite onerous with the particular requirements varying widely by country. In
addition, in certain countries, the block cannot be removed. As a result of the
ramifications of voting ballots in markets that allow share blocking, the
Adviser, on behalf of the Fund, reserves the right to abstain from voting
proxies in those markets.
Corporate
and Securities Laws.
Securities
laws in emerging market countries are relatively new and unsettled and,
consequently, there is a risk of rapid and unpredictable change in laws
regarding foreign investment, securities regulation, title to securities and
securityholders rights. Accordingly, foreign investors may be adversely affected
by new or amended laws and regulations. In addition, the systems of corporate
governance to which emerging market issuers are subject may be less advanced
than those systems to which issuers located in more developed countries are
subject, and therefore, securityholders of issuers located in emerging market
countries may not receive many of the protections available to securityholders
of issuers located in more developed countries. In circumstances where adequate
laws and securityholders rights exist, it may not be possible to obtain swift
and equitable enforcement of the law. In addition, the enforcement of systems of
taxation at federal, regional and local levels in emerging market countries may
be inconsistent and subject to sudden change. A Fund has limited rights and few
practical remedies in emerging markets and the ability of U.S. authorities to
bring enforcement actions in emerging markets may be limited.
Equity
Securities Risk. The
value of the equity securities held by the Funds may fall due to general market
and economic conditions, perceptions regarding the markets in which the issuers
of securities held by the Funds participate, or factors relating to
specific
issuers in which the Funds invest. Equity securities are subordinated to
preferred securities and debt in a company’s capital structure with respect to
priority in right to a share of corporate income, and therefore will be subject
to greater dividend risk than preferred securities or debt instruments. In
addition, while broad market measures of equity securities have historically
generated higher average returns than fixed income securities, equity securities
have generally also experienced significantly more volatility in those returns,
although under certain market conditions fixed income securities may have
comparable or greater price volatility.
Environmental-Related
Securities Risk.
(Environmental Sustainability Fund only.)
Companies
that promote positive environmental policies may not perform as well as
companies that do not pursue such goals. Issuers engaged in environmentally
beneficial business lines may be difficult to identify and investments in them
maybe volatile. They may be highly dependent upon government subsidies,
contracts with government entities, and the successful development of new and
proprietary technologies. Such technologies risk rapid product obsolescence,
short product cycles, and competition from new market entrants. Current
valuation methods used to value companies involved in alternative, clean water,
and clean power technology sectors, for example, may not have been in widespread
use for a significant period of time, and it may be difficult to value share
prices of such issuers. In addition, seasonal weather conditions, fluctuations
in supply of and demand for clean energy products (including, in relation to
traditional energy products, such as oil and gas), changes in energy prices, and
international political events may cause fluctuations in the performance of
these issuers and the prices of their securities. Environmentally-focused
investing is qualitative and subjective by nature, and there is no guarantee
that the factors utilized by the Adviser or any judgment exercised by the
Adviser will reflect the opinions of any particular investor. Information
regarding responsible practices is obtained through voluntary or third-party
reporting, which may not be accurate or complete, and the Adviser is dependent
on such information to evaluate a company’s commitment to, or implementation of,
responsible practices.
ESG
Investing Risk.
The Adviser’s consideration of ESG risks and opportunities in each Fund’s
investment process could result in a Fund performing differently compared to
funds that do not take into account ESG considerations. The Adviser’s
consideration of ESG risks and opportunities may result in a Fund investing in
securities, industries or sectors that underperform other securities, industries
or sectors, or underperform the market as a whole. Each Fund is also subject to
the risk that the companies identified by the Adviser do not operate as expected
when addressing ESG issues. Regulatory changes or interpretations regarding the
definitions and/or use of ESG criteria could have a material adverse effect on a
Fund’s ability to invest in accordance with its ESG considerations.
Financial
Services Sector Risk.
(Emerging Markets Fund and Emerging Markets Leaders Fund only.) As of December
31, 2021, the Emerging Markets Fund invested a significant portion of its assets
in companies in the financial services sectors. Separately, the Emerging Markets
Leaders Fund may a significant portion of its assets in companies in the
financial services sectors. Each Fund may be subject to greater risks and market
fluctuations than a fund whose portfolio has exposure to a broader range of
sectors. Each Fund may be susceptible to financial, economic, political or
market events, as well as government regulation, impacting the financial
services sector. Companies in the financial services sector may be subject to
extensive government regulation that affects the scope of their activities, the
prices they can charge and the amount of capital they must maintain. The
profitability of companies in the financial services sector may be adversely
affected by increases in interest rates, by loan losses, which usually increase
in economic downturns, and by credit rating downgrades. In addition, the
financial services sector is undergoing numerous changes, including continuing
consolidations, development of new products and structures and changes to its
regulatory framework. Furthermore, recent developments in the credit markets may
cause companies operating in the financial services sector to incur large
losses, experience declines in the value of their assets and even cease
operations.
Foreign
Currency Transactions Risk.
An investment transacted in a foreign currency may lose value due to
fluctuations in the rate of exchange. These fluctuations can make the return on
an investment go up or down, entirely apart from the quality or performance of
the investment itself. A Fund may enter into foreign currency transactions
either to facilitate settlement transactions or for purposes of hedging exposure
to underlying currencies. To manage currency exposure, the Fund may enter into
forward currency contracts to “lock in” the U.S. dollar price of the security. A
forward currency contract involves an agreement to purchase or sell a specified
currency at a specified future price set at the time of the
contract.
Foreign
Securities Risk. Investments
in the securities of foreign issuers involve risks beyond those associated with
investments in U.S. securities. These additional risks include greater market
volatility, the availability of less reliable financial information, higher
transactional and custody costs, taxation by foreign governments, decreased
market liquidity and political instability. Because certain foreign securities
markets may be limited in size, the activity of large traders may have an undue
influence on the prices of securities that trade in such markets. Certain
foreign markets that have historically been considered relatively stable may
become volatile in response to changed conditions or new developments. Increased
interconnectivity of world economies and financial markets increases the
possibility that adverse developments and conditions in one country or region
will affect the stability of economies and financial markets in other countries
or regions. The Fund invests in securities of issuers located in countries whose
economies are heavily dependent upon trading with key partners. Any reduction in
this trading may have an adverse impact on the Fund’s investments. Because the
Fund may invest in securities denominated in foreign currencies and some of the
income received by the Fund may be in foreign currencies, changes in currency
exchange rates may negatively impact the Fund’s return.
Foreign
issuers are often subject to less stringent requirements regarding accounting,
aud