Van Eck Global SmallCap Fund
------------------------------
1995 Semi-Annual Report
Dear Fellow Shareholder:
Most world stock markets achieved solid gains during the first six months of
1995, particularly in U.S. dollar terms, with the notable exception of the
Japanese market which declined sharply in yen and more moderately in dollar
terms as the dollar continued to weaken. Small companies, however,
underperformed in general as cautious investors, wary after a difficult 1994,
sought safety in the larger, more established blue chip stocks. The Global
SmallCap Fund had a total return of -1.1% for the six months ended June 30,
1995.
Your portfolio's largest weighting has been in U.S. small capitalization stocks,
which gained over 7% during the first half of the year. As we began 1995, we
remained cautious about further possible increases in the U.S. federal funds
rate, which had increased six times over the course of 1994, and therefore, we
did not increase the position. However, as evidence suggested that the economy
was slowing and interest rates would stabilize or decline, liquidity conditions
appeared to be improving. As the bond market rallied, equity valuations also
became more attractive. We thus began to increase the U.S. position in February,
ending the second quarter with more than 37% of total investments in this market
versus about 23% at the beginning of the year. We believe this market is still
promising given the possibility of further cuts in interest rates and attractive
valuations relative to bonds.
Your portfolio also held a substantial position in the Japanese market, starting
the year with a weighting of about 40% in this market. Although we began the
year expecting improved growth in Japan, a strengthening yen, further weakness
in the real estate market and the Kobe earthquake had a dampening effect on the
economy. Finally, concerned that the government would once again fail to
implement an effective rescue package for a banking system that has been in
crisis, we decreased this weighting early in the year to the current 24% of
investments. Despite the lower allocation, the performance of the Japanese small
caps, down over 9% year-to-date, hurt the Fund's performance. We remain cautious
on this market, waiting for positive government action to boost the economy,
help stabilize both asset prices (which have been in a downward spiral to the
severe detriment of the financial sector) and the ever-strengthening yen. There
are positive signs: both short and long-term interest rates have been cut to new
post-World War II lows (0.75% at the short end) and the coalition government is
preparing a more dramatic package of fiscal measures to shore up the financial
sector and boost credit growth. The portfolio remains slightly underweighted in
Japan, although we plan to buy selectively on market weakness, and may
substantially increase the position should the government's package show signs
of promise.
In continental Europe, most of the markets, particularly the "peripheral" or
secondary markets, achieved strong performance as economic sluggishness prompted
interest rate cuts. European holdings comprise approximately 18% of your
portfolio's investments. Given reasonable valuation levels versus bonds and the
likelihood of lower interest rates but possibly erratic corporate earnings
growth, we are maintaining a substantial, yet underweighted position in Europe.
The U.K., in contrast, is experiencing a healthy recovery in most sectors and
the earnings environment looks much more stable. Coupled with attractive equity
prices, we are overweight in this market at over 9% of holdings.
Some of the developing markets, such as Mexico (up 41.5%) and Thailand (up
26.2%), witnessed huge rebounds after sharp declines in late 1994 and early
1995. Allocations to emerging markets have been increased somewhat as valuations
reached very attractive levels. We are particularly bullish on the Greek market,
a position that we established during the first half (currently 4.7% of
holdings) which boasts the highest dividend yields in Europe, declining real
interest rates, the lowest inflation the country has had for 20 years and
attractive valuations. The emerging markets on average continue to achieve
economic growth rates that are more than double the growth rates of the
developed world. Also, the declining interest rates throughout much of the
developed world should continue to provide a direct boost to these markets.
However, while the emerging markets are represented in the portfolio, due to
their inherent volatility, the total position remains fairly low at 6.2%.
THE OUTLOOK
Economic activity is slowing throughout most of the world. The resulting decline
in interest rates is improving liquidity conditions and further interest rate
reductions can be expected in Europe and, to a lesser extent in the U.S. This
should benefit all financial asset prices and equities, in particular, given
their low valuation in general to bonds. We remain fully invested, emphasizing
small growth companies with solid fundamentals. In our judgment, these stocks,
which have rebounded, but not to the extent of the larger companies, remain at
attractive relative valuations and are positioned to perform well.
We appreciate your participation in the Global SmallCap Fund and look forward to
helping you meet your investment objectives in the future.
[PHOTO] [PHOTO]
/s/ John C. van Eck /s/ Jonathan F.K. Neill
John C. van Eck Jonathan F.K. Neill
Chairman Portfolio Manager
July 26, 1995
- --------------------------------------------------------------------------------
Performance Record as of 6/30/95
- --------------------------------------------------------------------------------
AFTER MAXIMUM
SALES CHARGE BEFORE
TOTAL RETURN OF 4.75%* SALES CHARGE
- --------------------------------------------------------------------------------
Life (since 8/3/94) (13.0)% (8.7)%
- --------------------------------------------------------------------------------
The performance data represents past performance and is not indicative of future
results. Investment return and principal value of an investment in the Fund will
vary so that shares, when redeemed, may be worth more or less than their
original cost.
We are currently waiving certain or all expenses on the Fund. Had the Fund
incurred all expenses, investment returns would have been reduced.
* Not annualized.
Note: C shares are no longer publicly offered.
<PAGE>
GLOBAL SMALLCAP FUND
INVESTMENT PORTFOLIO JUNE 30, 1995 (UNAUDITED)
NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- ----------------------------------------------------------
AUSTRALIA: 1.2%
11,250 Aerodata Holdings Ltd. $ 8,142
2,000 Bank of Queensland Ltd. 5,747
36,000 Croesus Mining 9,962
4,000 Northern Building Society 6,528
---------
30,379
---------
CANADA: 0.1%
2,250 Breakwater Resources Ltd. 3,508
---------
UNITED KINGDOM: 0.2%
2,100 Hambros PLC 6,224
---------
FRANCE: 4.3%
300 Brioche Pasquier 37,159
150 BUT SA 33,443
350 Societe Manutan 42,558
---------
113,160
---------
GERMANY: 2.6%
43 Bijou Brigitte Modi Access 13,249
38 Eifelhoehen-Klinik AG 7,009
108 Simona AG 17,811
50 Vossloh AG (Namen) 19,167
15 Wmf Wuerttembergische Akt (Pfd.) 2,929
40 Wmf Wuerttembergische Akt 9,056
---------
69,221
---------
GREECE: 4.7%
250 Alpha Credit Bank 13,894
850 Commercial Bank Of Greece 36,290
700 Hellas Can SA 13,238
1,300 Heracles General Cement Co., S.A. 12,755
500 Ionian Bank 11,569
250 National Bank Of Greece 13,660
600 Titan Cement Co. S.A. 22,800
---------
124,206
---------
HONG KONG: 0.7%
50,000 Joyce Boutique 10,791
40,000 Star Paging (International Holdings) 7,289
---------
18,080
---------
ITALY: 1.6%
25,000 Montefibre 19,899
12,500 Vianini Lavori S.p.A. 22,080
---------
41,979
---------
JAPAN: 24.7%
3,000 Amatsuji Steel Ball Mfg. 39,669
2,000 B-R 31 Ice Cream 22,432
2,000 Biofermin Pharmaceutical 21,133
4,000 Bourbon Corp. 35,986
1,000 Chofu Seisakusho 24,321
6,000 Chuoh Pack Industry Co. Ltd. 35,348
4,000 Dainippon Shigyo Co. Ltd. 33,058
3,000 Denkyosha 30,106
2,000 Denyo Co. Ltd. 26,919
3,000 Hokkaido Coca-Cola Bottling 43,920
2,000 Horipro 33,058
1,000 Japan Securities Agents 17,946
2,000 Levi Strauss Japan 34,593
2,000 Marktec Corp. 27,155
3,200 Meiden Engineering Co. 37,025
10,000 Nakaita Seisakusho 38,489
9,000 Riken Corundum 34,959
3,000 Sonton Food Industry 40,732
10,000 Toyo Steel 34,120
3,000 Yokohama Reito 36,128
---------
647,097
---------
MEXICO: 0.3%
5,000 Grupo Fernandez Editores-B 1,885
1,100 Industrias Penoles S.A. de C.V. 3,251
2,000 Tablex S.A.-Ser 2 2,460
---------
7,596
---------
NETHERLANDS: 1.3%
200 Eriks Holdings N.V. 15,307
1,000 Norit N.V. 13,370
400 Tulip Computers N.V. 4,960
---------
33,637
---------
NORWAY: 0.3%
280 Bolig OG Naeringsbanken 7,500
---------
PORTUGAL: 1.0%
2,500 Companhia Industrial de Ceramica, S.A. 27,036
---------
SINGAPORE: 2.0%
5,000 First Capital Corp. 15,462
14,000 Hai Sun Hup Group Ltd. 8,418
2,000 Singapore Bus Svc. 13,994
7,000 Wing Tai Holdings Ltd. 13,479
---------
51,353
---------
SPAIN: 1.6%
400 Banco Pastor 19,355
700 Fabrica Autom Renault De Espana 21,017
---------
40,372
---------
SWEDEN: 2.4%
200 Autoliv AB 10,695
1,300 Munksjoe AB 11,347
900 OM Gruppen AB 9,464
1,600 Seco Tools AB-SWKR `B' 31,451
---------
62,957
---------
SWITZERLAND: 3.4%
15 Bobst AG - Bearer Shares 22,967
120 Danzas Holding AG - Part Cert 20,565
25 Schweizerhall Holdings AG - REG 24,793
30 Zehnder Holdings AG Bearer 21,923
---------
90,248
---------
THAILAND: 0.3%
1,000 Singer Thailand Ltd. 8,183
---------
TURKEY: 0.9%
48,000 EGE Seramik Sanayi Ve Ticaret 23,341
---------
UNITED KINGDOM: 9.3%
12,400 Allied Colloids Group PLC 24,699
12,400 Baltic PLC 25,885
4,400 Berkeley Group PLC 25,031
7,400 Bluebird Toys PLC 25,235
4,600 Boosey & Hawkes PLC 27,488
5,000 Cluff Resources PLC 3,824
8,400 Cray Electronics Holdings 7,496
4,800 Halstead (James) Group 26,235
10,500 Hewden-Stuart Plant PLC 30,284
2,100 Micro Focus Group PLC 25,767
5,700 Rco Holdings PLC 20,346
---------
242,290
---------
UNITED STATES: 37.1%
520 Allen Organ Co. (Class B) 23,140
800 Blair Corp. 27,500
1,000 Brandon Systems Corp. 21,375
1,250 CDW Computer Centers Inc. 63,125
2,400 Concord EFS Inc. 64,200
See Notes to Financial Statements.
<PAGE>
GLOBAL SMALLCAP FUND
INVESTMENT PORTFOLIO JUNE 30, 1995 (Unaudited)
NO. OF SHARES SECURITIES (A) VALUE (NOTE 1)
- ----------------------------------------------------------
4,400 Decorator Industries Inc. $ 40,150
438 Fritz Companies Inc. 25,705
2,300 Greenfield Industries Inc. 66,700
3,850 Hawkins Chemical Inc. 25,988
1,345 ICN Pharmaceuticals 21,177
600 International Aluminum Co. 19,050
1,700 Kaydon Corp. 50,575
1,100 Learonal Inc. 23,238
5,300 McRae Industries - (Class A) 32,794
2,300 Mikasa Inc. 34,212
2,550 Mississippi Chemical Corp. 50,840
330 NCH Corp. 18,975
1,100 Oxford Industries Inc. 20,075
2,050 Patterson Dental Company 48,687
1,850 Portec Inc. 22,431
5,600 Sandy Corp. 64,400
800 Spacelabs Medical Inc. 20,300
1,170 Standard Register Co. 22,230
1,490 Sturm Ruger & Co. Inc. 48,611
1,000 Tech-Sym Corp. 27,375
2,600 Thermo Fibertek Inc. 51,675
2,150 Uniforce Temp Personnel Inc. 19,887
1,000 X-Rite Inc. 18,500
----------
972,915
----------
TOTAL INVESTMENTS: 100% (Cost $2,786,423) $2,621,282
==========
- -----------------
(a) Unless otherwise indicated securities owned are shares of common stock.
SUMMARY OF INVESTMENTS BY INDUSTRY % OF PORTFOLIO
- ----------------------------------------------------------
Aerospace & Military Technology 0.8%
Appliances & Household Durable 1.8%
Automobiles 1.3%
Banking 3.5%
Beverages & Tobacco 1.7%
Building Materials & Component 3.0%
Business & Public Services 8.8%
Construction & Housing 6.7%
Data Processing & Reproduction 0.2%
Electrical & Electronics 3.2%
Electronics Components Instrum 3.1%
Financial Services 0.9%
Food & Household Products 7.3%
Forest Products & Paper 0.3%
Gold Mines 0.1%
Health & Personal Care 0.8%
Industrial Components 0.8%
Leisure & Tourism 2.9%
Machinery & Engineering 5.7%
Merchandising 6.3%
Metals--Non Ferrous 2.0%
Metals--Steel 2.8%
Misc. Materials & Commodities 2.5%
Multi--Industry 24.6%
Real Estate 1.9%
Recreation Other Consumer Goods 1.0%
Telecommunications 0.4%
Textiles & Apparel 4.6%
Transportation--Airlines 0.2%
Transportation--Shipping 0.8%
-------
100.0%
=======
See Notes to Financial Statements.
<PAGE>
GLOBAL SMALLCAP FUND FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
ASSETS:
Investments at value (cost, $2,786,423)
(Notes 1 and 2) $2,621,282
Cash 88,231
Receivables:
Capital shares sold 1,000
Dividends 7,873
From Advisor 47,879
Deferred organization and other assets 27,098
---------
Total assets 2,793,363
---------
LIABILITIES:
Payables:
Securities purchased 27,545
Deferred organization costs 26,047
Accounts payable 30,975
-----------
Total liabilities 84,567
-----------
NET ASSETS $ 2,708,796
===========
CLASS A
Net asset value and redemption price per share
($2,707,800/311,568) $8.69
=====
Maximum offering price per share
(NAV/(1 - maximum sales commission)) $9.12
=====
CLASS C
Net asset value, offering price and
redemption price per share ($996/115)
(Redemptions may be subject to a contingent
deferred sales charge within the
first year of ownership) $8.66
=====
Net assets consist of:
Aggregate paid in capital $ 2,925,818
Unrealized depreciation of investments (165,325)
Undistributed net investment income 15,717
Cumulative realized losses (67,414)
-----------
$ 2,708,796
===========
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995
INCOME:
Dividends (foreign taxes withheld of $2,024) $ 26,405
EXPENSES:
Management (Note 2) $ 8,452
Distribution Class A (Note 4) 5,621
Distribution Class C (Note 4) 27
Professional 6,498
Registration 11,104
Custody 6,600
Reports to shareholders 4,002
Administrative (Note 2) 3,083
Amortization of deferred organization 3,274
Transfer agent 17,584
Other 1,551
---------
Total expenses 67,796
Expenses assumed by the
advisor (Note 2) (55,131) 12,665
--------- ----------
Net investment income 13,740
REALIZED AND UNREALIZED GAIN (LOSS)
(NOTE 3)
Realized gain from foreign currency
transactions 2,441
Realized loss from security transactions
(excluding short-term securities):
Proceeds from sales 709,230
Cost of securities sold 748,494
---------
Realized loss (39,264)
Unrealized depreciation of investments:
Beginning of period (165,134)
End of period (165,141)
---------
Change in unrealized depreciation (7)
Change in unrealized appreciation of foreign
denominated assets and liabilities (184)
----------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ (23,274)
==========
Statements of Changes in Net Assets
SIX MONTHS FOR THE PERIOD
ENDED AUGUST 3, 1994+
JUNE 30, TO
1995 DECEMBER 31,
(UNAUDITED) 1994
------------ ---------------
INCREASE IN NET ASSETS:
Operations:
Net investment income $ 13,740 $ 4,977
Realized loss from
security transactions (39,264) (28,150)
Realized gain (loss) from
security transactions 2,441 (1,934)
Change in unrealized
depreciation
of investments (7) (165,134)
Change in unrealized appreciation
of foreign denominated assets and
liabilities (184) --
--------- ---------
Decrease in net assets
resulting from operations (23,274) (190,241)
--------- ---------
Dividends to shareholders from
Net investment income
Class A Shares -- (3,496)
Class C Shares -- (11)
--------- ---------
-- (3,507)
--------- ---------
Capital share transactions*:
Net proceeds from sales of shares:
Class A Shares 1,141,107 4,022,457
Class C Shares 1,200 10,657
--------- ---------
1,142,307 4,033,114
--------- ---------
Reinvestment of dividends:
Class A shares 3,347 --
Class C shares 11 --
--------- ---------
3,358 --
--------- ---------
Cost of shares reacquired:
Class A shares (463,160) (1,780,015)
Class C shares (9,786) --
--------- ---------
(472,946) (1,780,015)
--------- ---------
Increase in net assets resulting
from capital share
transactions 672,719 2,253,099
--------- ---------
Total increase in net
assets 649,445 2,059,351
NET ASSETS:
Beginning of period 2,059,351 --
--------- ---------
End of period (including undistributed
net investment income and net investment
loss of $15,717 and $464, respectively) $2,708,796 $2,059,351
========== ==========
*SHARES OF BENEFICIAL INTEREST ISSUED AND
REDEEMED (UNLIMITED NUMBER OF $0.001
SHARES PAR VALUE SHARES AUTHORIZED)
CLASS A CLASS A
--------- ---------
Shares sold 131,715 425,530
Reinvestment of dividends 381 --
-------- --------
132,096 425,530
Shares reacquired (53,612) (192,446)
-------- --------
Net increase 78,484 233,084
======== ========
CLASS C CLASS C
-------- --------
Shares sold 139 1,121
Reinvestment of dividends 1 --
-------- --------
140 1,121
Shares reacquired (1,146) --
-------- --------
Net increase (decrease) (1,006) 1,121
======== ========
- ----------------
+ Commencement of operations.
See Notes to Financial Statements.
<PAGE>
GLOBAL SMALLCAP FUND
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Class A Class C
------------------------------- ---------------------------------
For Six For the Period For Six For the Period
Months Ended August 3, 1994 (a) Months Ended October 14, 1994 (d)
June 30, 1995 to June 30, 1995 to
(unaudited) December 31, 1994 (unaudited) December 31, 1994
----------- ----------------- ----------- ------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 8.79 $ 9.53 $ 8.78 $ 9.67
-------- -------- -------- --------
Income from Investment Operations:
Net Investment Income 0.05+ 0.021 0.03+ 0.01
Net Losses on Securities (both realized
and unrealized) (0.15) (0.746) (0.15) (0.89)
-------- -------- -------- --------
Total from Investment Operations (0.10) (0.725) (0.12) (0.88)
-------- -------- -------- --------
Less Distribution:
Dividends from Net Investment Income -- (0.015) -- (0.01)
-------- -------- -------- --------
Net Asset Value, End of Period $ 8.69 $ 8.79 $ 8.66 $ 8.78
======== ======== ======== ========
Total Return (b) (1.14%) (7.6%) (1.37%) (9.1%)
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplementary Data
Net Assets, End of Period (000) $2,708 $2,050 $1 $10
Ratio of Expenses to Average Net Assets (c) 1.12%* 0.25%* 1.62%* 1.00%*
Ratio of Net Investment Income to Average Net Assets 1.22%* 0.77%* 0.72%* 0.01%*
Portfolio Turnover Rate 32.93% 11.07% 32.93% 11.07%
</TABLE>
- -----------
(a) Commencement of operations.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends at net
asset value during the period and a redemption on the last day of the
period. A sales charge is not reflected in the calculation of total return.
Total return calculated for a period of less than one year is not
annualized.
(c) The expense ratios for Class A shares and Class C shares would have been
5.54%, 3.49%, 203.81%, and 35.93%, respectively if the expenses were not
assumed by the Advisor.
(d) Initial offering of Class C shares.
* Annualized.
+ Based on average shares outstanding.
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. The
following is a summary of significant accounting policies consistently followed
by the Global SmallCap Fund, a non-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 -- Securities traded on national or foreign exchanges are
valued at the last sales prices reported at the close of business on the last
business day of the period. Over-the-counter securities and listed securities
for which no sale was reported are valued at the mean of the bid and asked
prices. Short-term obligations are valued at cost which with accrued interest
approximates value. Securities for which quotations are not available are
stated at fair value as determined by the Board of Trustees.
B. Federal Income Taxes -- It is the Fund's policy to comply with the provisions
of the Internal Revenue Code applicable to regulated companies and to
distribute all of its taxable income to its shareholders. Therefore, no
federal income tax provision is required.
C. Currency Translation -- Assets and liabilities denominated in foreign
currencies and commitments under forward currency contracts are translated
into U.S. Dollars at the mean of the quoted bid and asked prices of such
currencies. Purchases and sales of investments are translated at the exchange
rates prevailing when accrued. The portion of realized and unrealized gains
and losses on investments that result from fluctuations in foreign currency
exchange rates are not separately disclosed. Recognized gains or losses
attributable to foreign currency fluctuations on foreign denominated assets
and liabilities are recorded as net realized gains and losses from foreign
currency transactions.
D. Dividends and Distributions -- Income and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due
to differing treatments for foreign currency transactions and post October
capital losses.
E. Deferred Organization Costs -- Deferred organization costs are being
amortized over a period not exceeding five years.
F. Other -- Security transactions are accounted for on the date the securities
are purchased or sold. Dividend income is recorded on the ex-dividend date.
Interest income is accrued as earned.
Note 2 -- Van Eck Associates Corporation (the "Advisor") earned fees of $8,452
for investment management and advisory services. The fee is based on an annual
rate of .75 of 1% of the Fund's average daily net assets. Van Eck Associates
Corporation also earns fees $3,083 for accounting and administrative services.
The fee is based on an annual rate of .25 of 1% of the Fund's average daily net
assets. Pictet International Management, Ltd., the sub-investment advisor, earns
fees for investment management. The fee is based on an annual rate of .50 of 1%
of the Fund's average daily net assets and is paid by the Advisor from the
advisory fees it receives from the Fund. Van Eck Associates Corporation agreed
to waive its management fees and administrative fees, to assume for Class A
shares the distribution expenses in excess of .25 of 1% of the Fund's average
daily net assets and to assume all other expenses for the period January 1, 1995
to April 12, 1995. For the period April 13, 1995 to June 30, 1995 Van Eck
Associates Corp. agreed to assume all expenses exceeding 2% of average daily net
assets. Van Eck Securities Corporation received $75 for the six months ended
June 30, 1995 from commissions earned on sales of Class A shares after deducting
$548 allowed to other dealers. Certain of the officers and trustees of the Trust
are officers, directors or stockholders of Van Eck Associates Corporation and
Van Eck Securities Corporation. As of June 30, 1995 Van Eck Associates
Corporation owned 46.18% and 100% of the outstanding shares of beneficial
interest of the Fund's Class A shares and Class C shares, respectively.
Note 3 -- Purchases of investments other than short-term obligations aggregated
$1,385,684 for the six months ended June 30, 1995. For federal income tax
purposes the cost of investments owned at June 30, 1995 was $2,786,423. As of
June 30, 1995, net unrealized depreciation for federal income tax purposes
aggregated $165,141 of which $192,250 related to appreciated investment and
$357,391 related to depreciated investments.
Note 4 -- Pursuant to a Rule 12b-1 Plan of Distribution (the "Plan"), the Fund
is authorized to incur distribution expenses which will principally be payments
to securities dealers who have sold shares and service shareholder accounts and
payments to Van Eck Securities Corporation ("VESC"), the distributor, for
reimbursement of other actual promotion and distribution expenses incurred by
the distributor on behalf of the Fund. The amount paid under the Plan in any one
year is limited to .50% of average daily net assets for Class A shares and 1.00%
of average daily net assets for Class C shares (the "Annual Limitations"). For
Class C shares, the Fund will pay to the selling broker at the time of sale 1%
of the amount of the purchase. Such advanced fees will be collected by the Fund
over the course of the first twelve months from the time of purchase from 12b-1
fees. Should the payments to the brokers made by the Fund exceed, on an annual
basis, 1% of average daily net assets, VESC will reimburse any excess.
Shareholders redeeming within one year of purchase will be subject to a 1%
redemption charge which will be retained by the Fund. After the first year, the
1% 12b-1 fee will be paid to VESC which will retain a portion of the fee for
distribution services and pay the remainder to brokers. Distribution expenses
incurred under the Plan that have not been paid because they exceed the Annual
Limitation may be carried forward to future years and paid by the Fund within
the Annual Limitation. VESC has waived its right to reimbursement of the carried
forward amounts incurred for the period August 3, 1994 through April 30, 1995 in
the event the Plan is terminated unless the Board of Trustees determines that
reimbursement of the carried forward amounts is appropriate. The excess of
distribution expense incurred over the Annual Limitation at June 30, 1995 was
$92,003 for Class A shares and $4,995 for Class C shares.
<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.
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This report must be accompanied or preceded by a Van Eck Global 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 Gold and Money Funds prospectus, please call the number listed below.
Please read the prospectus before investing.
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Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016
For account assistance please call (800) 544-4653
B95-0731-006
June 30, 1995
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Van Eck
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Global
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SmallCap
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Fund
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Semi-Annual
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Report
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