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Prospectus Supplement to
VAN ECK GLOBAL FUNDS PROSPECTUS
Dated March 17, 1995
Effective September 15, 1995
Global Hard Assets Fund may make short sales of equity securities. A short sale
occurs when the Fund sells a security which it does not own by borrowing it from
a broker. Following the short sale, the Fund must deposit collateral with the
broker. In the event that the value of the security that the Fund sold short
declines, the Fund will gain as it repurchases the security in the market at the
lower price. If the price of the security increases, the Fund will suffer a loss
as it will have to repurchase the security at the higher price. Short sales may
incur higher transaction costs than regular securities transactions.
The Fund will establish a segregated account with respect to its short sales and
maintain in such account cash not available for investment or U.S. Government
securities or other liquid, high-quality debt securities having a value equal to
the difference between (i) the market value of the securities sold short at the
time they were sold short and (ii) any cash, U.S. Government Securities or other
liquid, high-quality debt securities required to be deposited as collateral with
the broker in connection with the short sale (not including the proceeds from
the short sale). Such segregated account will be marked to market daily, so that
(i) the amount in the segregated account plus the amount deposited with the
broker as collateral equals the current market value of the securities sold
short and (ii) in no event will the amount in the segregated account plus the
amount deposited with the broker as collateral fall below the original value of
the securities at the time they were sold short. The total value of the assets
deposited as collateral with the broker and deposited in the segregated account
will not exceed 50% of the Fund's net assets. In order to comply with certain
securities laws of a state in which shares of the Fund are currently sold, the
Fund has undertaken to (i) limit the value of its assets deposited as collateral
and deposited in the segregated account to 25%, (ii) limit the value of
securities of any one issuer sold short to the lesser of 2% of the Fund's net
assets or 2% of the securities of any class of any one issuer and (iii) limit
short sales to liquid securities, as determined by the Adviser and ratified at
least quarterly by the Board of Trustees. The Fund will comply with these
undertakings so long as the Fund's shares are sold in such state or such state
restrictions remain in effect. The Fund's ability to engage in short sales may
be further limited by the requirements of current U.S. tax law that the Fund
derive less than 30% of its gross income from the sale or other disposition of
securities held less than three months. Securities sold short and then
repurchased, regardless of the actual time between the two transactions, are
considered to have been held for less than three months.
Prospectus Supplement Dated September 15, 1995
