JUNE 30, 1995
Van Eck
U.S. Government
Money
Fund
Semi-Annual
Report
[Van Eck Global LOGO]
<PAGE>
Van Eck U.S. Government Money Fund
1995 Semi-Annual Report
Dear Fellow Shareholder:
The U.S. Government Money Fund continues to meet its objectives of a high
degree of safety and daily liquidity. It also serves to assist investors who
wish to employ our exchange privileges or to use our checkwriting privileges.
The Fund's seven-day average yield was 4.96%* and the thirty-day average yield
was 5.57%* on June 30, 1995. The total net assets were $79,795,208 as of June
30, 1995.
In February, the Federal Reserve raised the federal funds rate to 6% from the
5.5% level at which it began 1995. The discount rate was also raised from 4.75%
to 5.25%. This seventh increase in rates over a 12-month period was prompted by
continued indications of strong economic growth, increasing credit demand and
rising inflationary expectations. However, as 1995 progressed, it became
apparent that the prior Fed tightening was beginning to dampen economic
activity. Weaker economic data and a perceived lessening of inflationary
pressures prompted the Federal Reserve to lower the federal funds rate to 5.75%
on July 6, 1995. Treasury bill yields remained relatively steady during the
first half of 1995, falling slightly from 5.66% to 5.58%.
We continue to emphasize safety by investing in short-term United States
Treasury obligations and repurchase agreements collateralized by United States
Treasury obligations. U.S. Treasury obligations are the most conservative money
market investments and offer the highest degree of security since they are
backed by the United States Government. Of course, shares of the Fund are not
guaranteed by the U.S. Government and there can be no guarantee that the price
of the Fund's shares will not fluctuate.** Repurchase agreements allow us to
take advantage of higher yields without significantly increasing risk. The
Fund's repurchase agreements are collateralized 102% by United States Treasury
obligations with maturities of less than five years. In addition, your Fund has
possession of the collateral.
We plan to continue our current investment strategy, keeping an equal weighting
between U.S. Treasury bills and repurchase agreements.
The U.S. Government Money Fund offers daily liquidity and checkwriting
privileges, providing the kind of convenient access to cash not available in
many other types of investments. The Fund also provides an excellent base from
which investors may transfer money into or out of other members of the Van Eck
Family of Funds.***
We appreciate your participation in the U.S. Government Money Fund and look
forward to helping you meet your investment objectives in the future.
[Photo of John C. van Eck]
John C. van Eck
Chairman
[Photo of Paul A. Diperna]
Paul A. DiPerna
Portfolio Manager
July 12, 1995
* Performance data represents past performance and is not indicative of
future results.
** There can be no assurance that the Fund will be able to maintain a stable
net asset value of $1.00 per share.
*** Currently, there is no charge imposed on exchanges or limits as to
frequency of exchanges. However, the Funds reserve the right to modify or
terminate the terms of the Exchange Privilege.
<PAGE>
U.S. GOVERNMENT MONEY FUND
FINANCIAL STATEMENTS
(Unaudited)
Statement of Net Assets
June 30, 1995
Assets:
Investments at value:
<TABLE>
<CAPTION>
Annualized
Yield at
Time of
Principal Date of Purchase Value
Amount Maturity or Coupon Rate (Note 1)
---------------------- -------- -------------- ---------
<S> <C> <C> <C>
U.S. Treasury Bills:
$10,000,000 8/10/95 5.86% $ 9,939,886
19,369,000 8/17/95 5.46 19,239,470
----------
29,179,356
Repurchase Agreements (Note 4):
Cost $14,400,000 purchased on
6/30/95; maturity value--
$14,406,300 (with Merrill
Lynch, Pierce, Fenner &
Smith Incorporated collater-
alized by $14,935,000 U.S.
Treasury Bills due
10/12/95) 7/03/95 5.25 14,400,000
Cost $14,400,000 purchased on
6/30/95; maturity value--
$14,407,080 (with HSBC
Securities Incorporated collater-
alized by $14,700,000 U.S.
Treasury Notes due 7/31/98
with an interest rate of
5.25%) 7/03/95 5.90 14,400,000
----------
Total investments (amor-
tized cost $57,979,356)* 57,979,356
Cash 23
Receivables:
Capital shares sold 27,609,896
Interest 13,380
----------
Total assets 85,602,655
----------
Liabilities:
Payables:
Capital shares repurchased 5,656,520
Dividends payable 14,744
Distribution fee payable 12,140
Administration fee payable 7,031
Accounts payable 117,012
----------
Total liabilities 5,807,447
----------
Net Assets $ 79,795,208
==========
Shares of beneficial interest out-
standing (unlimited number
of $.001 par value shares
authorized) 79,795,208
==========
Net asset value, redemption price
and offering price per share $1.00
==========
* The amortized cost is the same for federal income tax purposes.
</TABLE>
Statement of Operations
For the Six Months Ended June 30, 1995
<TABLE>
<S> <C> <C>
Interest Income (Note 1) $1,698,408
Expenses:
Management (Note 2) $148,214
Distribution (Note 3) 74,107
Transfer agent 82,267
Registration 18,020
Custodian 32,284
Administration (Note 2) 28,387
Professional 19,083
Reports to shareholders 6,149
Other 16,431
-----
Total expenses 424,942
---------
Net investment income $1,273,466
=========
</TABLE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
June 30, December 31,
1995 1994
---------- ------------
<S> <C> <C>
Increase in Net Assets:
Operations:
Net investment income paid to
shareholders as dividends
(Note 1) $ 1,273,466 $ 1,944,543
=============== ===============
From capital share transactions
at net asset value of $1.00 per
share):
Net proceeds from sales of
shares $1,392,744,397 $ 1,776,705,661
Shares issued on reinvestment
of dividends from net
investment income 837,121 1,307,946
--------------- ----------------
1,393,581,518 1,778,013,607
Cost of shares reacquired (1,360,864,517) (1,762,044,239)
--------------- ----------------
Increase in net assets resulting
from capital share
transactions 32,717,001 15,969,368
Net Assets:
Beginning of period 47,078,207 31,108,839
--------------- ---------------
End of period $ 79,795,208 $ 47,078,207
</TABLE>
See Notes to Financial Statements.
<PAGE>
U.S. GOVERNMENT MONEY FUND
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------------------
Six Months
Ended
June 30,
1995 (unaudited) 1994 1993 1992 1991 1990 1989 1988 1987 1986+
----------------- ----- ----- ----- ----- ----- ------- ------- ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ----- ----- ----- ----- ----- ----- ----- ----- -----
Income from Investment
Operations:
Net Investment
Income .0229 0.0311 0.0183 0.0220 0.0456 0.0685 0.0748 0.0594 0.0492 0.0427
Less Distributions:
Dividends from
net investment
income (.0229) (0.0311) (0.0183) (0.0220) (0.0456) (0.0685) (0.0748) (0.0594) (0.0492) (0.0427)
------ ----- ----- ----- ----- ----- ----- ----- ----- -----
Net Asset Value,
End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total Return 4.57% 3.11% 1.83% 2.20% 4.56% 6.85% 7.48% 5.94% 4.92% 4.27%
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Ratio/Supplementary
Data
Net Assets, End of
Period (000) $79,795 $47,078 $31,109 $24,853 $35,287 $43,353 $47,620 $51,840 $45,126 $10,420
Ratio of Expenses
to Average
Net Assets (a) 1.43%* 1.12% 1.24% 1.44% 1.30% 1.17% 1.26% 0.80% 0.89% 1.16%*
Ratio of Net Income
to Average
Net Assets 4.30%* 3.07% 1.83% 2.25% 4.61% 6.82% 7.47% 5.95% 5.07% 4.75%*
</TABLE>
+ From February 15, 1986 (commencement of operations) to December 31, 1986.
(a) Had the Adviser not waived management fees, the 1989, 1988, 1987 and 1986
expense ratios would have been 1.31%, 1.30%, 1.39% and 1.66%,
respectively, and total return would have been lower.
* Annualized. See Notes to Financial Statements.
Notes to Financial Statements (unaudited)
Note 1--Significant Accounting Policies-Van Eck Funds (the "Trust"), organized
as a Massachusetts business trust on April 3, 1985, is registered under the
Investment Company Act of 1940 as an open-ended management company. The
following is a summary of significant accounting policies consistently followed
by the U.S. Government Money Fund series, a diversified fund (the "Fund") of
the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
A. Security valuation-The Fund uses the amortized cost method to value
securities. The amortized cost method involves valuing a security at its cost
initially and, thereafter, a constant amortization to maturity of any
discount or premium. Generally, the amortized cost of the security
approximates the market value.
B. Federal income taxes-It is the Fund's policy to comply with the
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Therefore, no federal income tax provision it required.
C. Dividend distributions-The Fund declares dividends from its net
investment income on each day the Fund is open for business and distributes
dividends on the last day of the month.
D. Other-Security transactions are accounted for on the date the securities
are purchased or sold. Interest income is recorded as earned. Realized gains
and losses from security transactions are recorded on a specific
identification basis.
Note 2--Van Eck Associates Corporation earned fees of $148,214 for the six
months ended June 30, 1995 for investment management and advisory services. The
fee is based on an annual rate of .50 of 1% of the first $500 million of
average daily net assets, .40% of 1% on the next $250 million and .375 of 1% of
the excess over $750 million. In accordance with the advisory agreement, the
Fund reimbursed Van Eck Associates Corporation for the six months ended June
30, 1995 ($28,387) for costs incurred in connection with certain administrative
and operating functions. Certain of the officers and trustees of the Trust are
officers, directors or stockholders of Van Eck Associates Corporation and Van
Eck Securities Corporation.
Note 3--Pursuant to a Plan of Distribution (Rule 12b-1) the Fund accrues fees of
.25 of 1% of the average daily net assets of the Fund. The fees are intended to
be used principally for payments to securities dealers who have sold shares and
service shareholder accounts of the Fund and the remainder will be used for
other actual promotion and distribution expenses incurred by Van Eck Securities
Corporation, the distributor. Fees accrued for the six months ended June 30,
1995 were $74,107.
Note 4--Collateral for repurchase agreements is held by the Fund's custodian,
the value of which must be at least 102% of the underlying debt obligation. In
the remote chance the counterparty should fail to complete the repurchase
agreement, the Fund would take possession of the collateral and would become
exposed to market fluctuation on the securities.
<PAGE>
VAN ECK FAMILY OF FUNDS
Global Hard Assets Fund
Seeks long-term capital appreciation by investing globally, primarily in "Hard
Asset Securities". Income is a secondary consideration.
International Investors Gold Fund
Founded in 1955, this Fund is the oldest gold-oriented mutual fund in the U.S.
It invests in gold-mining shares globally and seeks long-term capital
appreciation, moderate yield and protection against monetary uncertainties.
Gold/Resources Fund
Seeking a long-term global hedge against inflation and other risks, this Fund
invests in gold-mining and natural resources companies outside South Africa.
Gold Opportunity Fund
Seeks capital appreciation by investing globally in equity securities of
companies engaged in the exploration, development, production and distribution
of gold and other precious metals, and through active asset allocation between
gold-related assets and cash instruments.
Asia Dynasty Fund
This Fund seeks long-term capital appreciation by investing in the equity
securities of companies that are expected to benefit from the development and
growth of the economies in the Asia Region. AIG Asset Management, Inc. serves
as sub-investment advisor to this Fund.
Global SmallCap Fund
Seeks long-term capital appreciation by investing globally in equity securities
of companies with small market capitalizations. The Fund is sub-advised by
Pictet International Management, Ltd.
Global Balanced Fund
This Fund seeks long-term capital appreciation together with current income by
investing in stocks, bonds and money market instruments worldwide. Fiduciary
International, Inc. serves as sub-investment advisor to this Fund.
World Trends Fund
This Fund combines trend investing and risk-control strategies to seek
long-term capital appreciation in the global marketplace.
Global Income Fund
This Fund emphasizes the current income component of total return by investing
principally in debt securities of foreign or U.S. government entities.
U.S. Government Money Fund
This Fund seeks the highest safety of principal and daily liquidity by
investing in U.S. Treasury bills and repurchase agreements collateralized by
U.S. Government obligations.
This report must be accompanied or preceded by a Van Eck Gold and Money Funds
prospectus which includes more complete information such as charges and
expenses and the risks associated with international investing including
currency fluctuations or controls, expropriation, nationalization and
confiscatory taxation. For a free Van Eck Global Funds prospectus, please call
the number listed below. Please read the prospectus before investing.
[Van Eck Global Logo]
X95-0714-018
Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016
For account assistance please call (800) 544-4653
