Van Eck Gold Opportunity Fund
---------------------------------
1996 Semi-Annual Report
Dear Fellow Shareholder:
During the first half of 1996, the net asset value of your Fund rose 13.0% to
$10.93 a share. This compares with an 8.9% increase in the S&P 500 Index for
the period. Gold shares were very strong during the first quarter, when gold
broke out of its long trading range of $380 to $390 an ounce and soundly
pierced the psychologically- important level of $400 an ounce. However, the
shares gave back much of their gains in the second quarter.
At the end of June, the gold price was $380.10 an ounce, down 1.7% from the end
of 1995, and 8.5% from its early-February high of $415.50 an ounce. Gold's rise
began right at the New Year, propelled by strong physical demand and a rise in
borrowing costs for producers, which reduced their incentive to hedge, thus
curtailing supply. Investment demand also increased, sparked by the easy-money
policies of monetary authorities in most of the industrialized nations of the
world. This competitive devaluation of their currencies by central banks
appears to have undermined confidence in paper currencies globally and led to
increased demand for the currency of last resort-- gold. Since the February
peak, pressure on gold prices has come from several areas--the sale of over 200
tonnes by the Central Bank of Belgium, the debacle in the copper market
(speculators were apparently forced to sell everything to cover losses in
copper positions), a return to more normal borrowing costs for producer hedging
programs, and the sharp decline in the South African rand, which translates
into much higher rand gold prices, thus encouraging South African gold miners
to sell forward and lock in these very attractive prices. Particularly
troublesome to sentiment has been the proposal by some members of the
International Monetary Fund (IMF) that the organization sell a small portion of
its gold reserves (about $2 billion worth, or about 5 million ounces at current
prices). This suggestion has been made in the past, but some members remain
opposed--Germany and Switzerland, most notably. Finally, the benign inflation
numbers and signs that the U.S. economy continued to grow robustly during the
second quarter whetted investors' appetites for financial assets, against which
gold must compete for investment dollars.
Australian gold shares, which represented 34% of the Fund at June 30, held up
reasonably well during the second quarter and registered a nearly 13% gain (in
U.S. dollars) for the first half, as measured by the Australian Stock Exchange
Gold Index. The strength continues to derive from positive exploration results
and the prospect of appreciable reserve increases to be announced with year-end
results during the summer. (Australian companies are generally on June 30
fiscal years.) Adding to the interest was the consolidation occurring within
the industry and the prospects of further reorganizations such as that which
the Normandy group of companies is planning, and of takeovers such as
Newcrest's attempt at Normandy. We continue to believe the Australian sector
offers some of the best value and we intend to maintain our exposure to the
region at about current levels.
After having led in performance during the first quarter, North American gold
shares suffered the greatest setback of all the regional sectors during the
second quarter. We believe the superior liquidity of such "brand names" as
Barrick, Newmont, Placer Dome and Homestake allowed investors and speculators
alike to use their holdings in these names in order to raise money to cover
losses in other areas such as copper. If this is correct, we would expect these
shares to be among the first to rally when bullion resumes its uptrend. This has
often been the case historically. At June 30, your Fund was 30% invested in
North America, primarily in the large- and intermediate-capitalization
companies.
South African gold share prices held up reasonably well in their local market
during the second quarter, but suffered from the 8% depreciation of the rand
and thus, posted an 11% decline for the period in U.S. dollar terms. Despite
this setback, at June 30, the Johannesburg Gold Index was still up 8% from
year-end levels. At the end of the first half, South African shares represented
5% of your Fund. Since then, we have used the
<PAGE>
correction to double that exposure to approximately 10% as we anticipate that
the decline in the rand will produce a significant increase in revenues, and
thus profits, for most companies in the region. Indeed, we expect the South
African industry to show the best results for the second half overall.
The weakness in the shares in June led us to raise cash and your Fund was 25%
in cash by the end of the month. Since then, we have gradually decreased the
cash position to under 5%, using dips to increase the Fund's South African
exposure, as mentioned above, and to rebuild positions in North American
shares.
The Outlook
In our view, current depressants on the market will prove temporary:
(bullet) Sales of gold by Dutch and Belgian central banks were probably
designed to align their gold reserve positions, as a percentage of
total reserves, with those of Germany. This has now been accomplished.
(bullet) Future sales of gold by the IMF are problematic, but the proposed
figure of $2 billion worth of gold equates to just over 5 million
ounces or 162 tonnes. Spread over a few years, as has been suggested,
these sales would add about 50 or 60 tonnes of additional supply a year
(if done over three years) to a market that absorbed 3,200 tonnes in
1995. We do not believe this would be very detrimental, all other
things being equal.
(bullet) Recently, inflation concerns have heightened following releases of
economic data that have pointed to continued strong growth in the U.S.
at a time of low inventory levels and low unemployment rates. The two
main reasons for concern are rising commodity prices (despite a recent
slide triggered by the copper debacle, the CRB Spot Commodity Index is
7% above year-ago levels) and wage inflation pressures, as typified by
the sharp rise in employment costs in June and low unemployment
levels.
(bullet) Corporate earnings in the U.S. appear to be slowing and the prospect
of significantly lower interest rates is not likely. Against this
backdrop, financial assets appear richly valued. The potential
ramifications of the leverage inherent in the $47 trillion face value
of derivatives against these financial assets should lead investors to
seek some diversification into hard assets, especially gold.
We appreciate your participation in the Gold Opportunity Fund and we look
forward to helping you meet your investment objectives in the future.
[Picture of John C. van Eck]
/s/John C. van Eck
John C. van Eck
Chairman
[Picture of Lucille Palermo]
/s/Lucille Palermo
Lucille Palermo
Portfolio Manager
July 26, 1996
- ---------------------------------------------------------------------
Performance Record as of 6/30/96
- ---------------------------------------------------------------------
Average Annual After Maximum Before Sales
Total Return Sales Charge** Charge
- ---------------------------------------------------------------------
A shares--Life (since 1/5/95) 7.3% 11.7%
- ---------------------------------------------------------------------
1 year 5.4% 11.9%
- ---------------------------------------------------------------------
B shares--Life (since 4/24/96)* (13.2)% (8.7)%
- ---------------------------------------------------------------------
C shares--Life (since 1/5/95) 11.9% 11.9%
- ---------------------------------------------------------------------
1 year 11.1% 12.1%
- ---------------------------------------------------------------------
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.
The Advisor is currently waiving certain or all expenses on the Fund. Had the
Fund incurred all expenses, investment returns would have been reduced.
*Not annualized.
**A shares: maximum sales charge = 5.75%
B shares: maximum contingent deferred sales charge = 5.00%
C shares: 1% redemption charge, 1st year.
<PAGE>
Gold Opportunity Fund
Statement of Net Assets June 30, 1996 (unaudited)
- -----------------------------------------------------------------------
No. of Shares Securities (a) Value (Note 1)
- -----------------------------------------------------------------------
Gold Production & Exploration: 74.4%
Australia: 34.1%
130,000 Acacia Resources Ltd. $ 307,028
100,000 Australian Resources Ltd. 82,661
100,000 Consolidated Gold N.L. 38,575
350,000 Croesus Mining N.L. 253,495
35,000 Delta Gold N.L. 89,550
120,000 Eagle Mining Corp. 287,189
200,000 Egerton Gold N.L. 39,363
50,000 Emperor Mines Ltd. 118,088
289,000 Ghana Gold Mines Ltd. 88,731
101,167 Giralia Resources N.L. 35,043
200,000 Gold Mines of Kalgoorlie Ltd. 218,856
50,000 Great Central Mines N.L. 136,982
150,200 Herald Resources Ltd. 192,739
200,000 Laverton Gold N.L. 64,555
100,000 Melita Mining N.L. 38,182
70,000 Menzies Gold N.L. 40,228
55,000 Newcrest Mining Ltd. 220,824
100,000 Placer Pacific Ltd. 145,641
30,000 Plutonic Resources Ltd. 153,514
100,000 Posgold Ltd. 246,409
120,000 Resolute Samantha Gold N.L. 278,683
---------
3,076,336
---------
Canada: 26.8%
20,000 Arizona Star Resources Corp. 83,575
12,500 Barrick Gold Corp.+ 339,063
10,000 Cambior Inc.+ 132,327
10,000 Cathedral Gold Corp. 19,794
15,000 Dayton Mining Corp. 90,173
10,000 Echo Bay Mines Ltd. 107,500
136,200 El Callao Mining Corp. 114,827
13,000 Geomaque Exploration Ltd. 25,923
20,000 Goldcorp Inc. (Class A) 330,000
60,000 Granges Inc. Units (b)* 77,883
20,000 Granges Inc. 27,858
10,000 Iamgold International African
Mining Ltd. 42,154
25,000 Indochina Goldfields Ltd. 215,351
25,000 Metallica Resources Inc. 90,722
13,500 Miramar Mining Corp. 72,743
20,000 Pangea Goldfields Units* 67,179
12,500 Prime Resources Group, Inc. 92,555
26,000 Texas Star Resources Corp. 12,961
100,000 Tombstone Exploration Co. Ltd.
Units* 104,380
20,000 TVX Gold Inc. 145,000
24,700 Viceroy Resource Corp. 143,052
150,000 X-Cal Resources Ltd. 85,774
---------
2,420,794
---------
Ghana: 4.4%
20,000 Ashanti Goldfields Co. Ltd.
(ADR) 395,000
---------
Peru: 1.2%
5,300 Co. De Minas Buenaventura S.A.
(ADR) 105,338
---------
South Africa: 5.2%
30,000 Hartebeestfontein Gold Mining
Ltd. (ADR) 102,189
5,000 Kloof Gold Mining Ltd. (ADR) 48,438
20,000 Vaal Reefs Exploration & Mining
Ltd. (ADR) 160,000
4,500 Western Deep Levels Ltd. (ADR) 163,125
---------
473,752
---------
United States: 2.7%
40,000 Alta Gold Co. 142,500
15,000 Crown Resources Corp. 78,750
1,544 Homestake Mining Co. 21,879
---------
243,129
---------
Total Stocks & Other Securities: 74.4%
(Cost: $7,242,165) 6,714,349
---------
Principal
Amount Short-Term Obligations:
--------- ---------------------------
$410,000 American Express Corp. C.P.
due 7/01/96 Yield of 5.39% 410,000
$340,000 General Electric Capital
Corp. C.P. due 7/01/96 Yield
of 5.20% 340,000
---------
Total Short-Term Obligations: 8.3%
(Amortized Cost: $750,000) 750,000
----------
Total Investments: 82.7%
(Cost: $7,992,165) 7,464,349
Other Assets Less Liabilities: 17.3% 1,559,281
----------
Net Assets: 100% $9,023,630
==========
- ----------
(a)Unless otherwise indicated, securities owned are shares of
common stock.
(b)Restricted security. See Note 8.
* Fair value as determined by the Board of Trustees.
+ These securities are segregated for futures contracts.
Glossary:
ADR--American Depositary Receipt
C.P.--Commercial Paper
See Notes to Financial Statements.
<PAGE>
Gold Opportunity Fund
Financial Statements (unaudited)
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities
June 30, 1996
Assets:
Investments at value (cost, $7,992,165) (Note 1) $7,464,349
Cash 36,627
Cash--initial margin for futures (Note 5) 13,500
Receivables:
Securities sold 1,375,239
Capital shares sold 85,285
From Advisor 79,011
Dividends 3,904
Due from broker--variation margin (Note 5) 2,804
Deferred organization costs (Note 1) 3,135
----------
Total assets 9,063,854
----------
Liabilities:
Payables:
Capital shares redeemed 15,532
Securities purchased 884
Deferred organization costs 3,083
Accounts payable 20,725
----------
Total liabilities 40,224
----------
Net Assets $9,023,630
==========
Class A
Net asset value and redemption price per share
($8,252,594/754,990) $10.93
==========
Maximum offering price per share (NAV/(1-maximum
sales commission)) $11.60
==========
Class B
Net asset value, offering price and redemption
price per share ($120,879/11,037) (Redemption may
be subject to a contingent deferred sales charge
within the first six years of ownership) $10.95
==========
Class C
Net asset value, offering price and redemption
price per share ($650,157/59,369) (Redemption may
be subject to a contingent deferred sales charge
within the first year of ownership) $10.95
==========
Net assets consist of:
Aggregate paid in capital $9,525,326
Unrealized depreciation of investments, futures
and foreign denominated assets and liabilities (541,075)
Undistributed net investment income 7,146
Undistributed realized gains 32,233
----------
$9,023,630
==========
Statement of Operations
Six Months Ended June 30, 1996
Income:
Dividends (less foreign taxes withheld of $1,450) $ 15,504
Interest 14,630
--------
Total income $ 30,134
Expenses:
Management (Note 2) 35,837
Distribution Class A (Note 4) 16,775
Distribution Class B (Note 4) 78
Distribution Class C (Note 4) 2,210
Administration (Note 2) 51
Transfer agency 24,594
Professional 7,512
Reports to shareholders 5,500
Registration 4,998
Amortization of deferred organization costs 544
Other 600
--------
Total expenses 98,699
Expenses assumed by the Advisor (Note 2) (75,060)
--------
Net expenses 23,639
----------
Net investment income 6,495
Realized and Unrealized Gain (Loss) on
Investments (Note 3):
Realized gain from security transactions 68,309
Realized loss from futures contracts (12,000)
Realized loss from options (20,115)
Realized gain from foreign currency transactions 651
Change in unrealized depreciation of
investments, futures and foreign
denominated assets and liabilities (517,538)
----------
Net Decrease in Net Assets Resulting
from Operations $ (474,198)
==========
See Notes to Financial Statements.
<PAGE>
Gold Opportunity Fund
Financial Statements (unaudited)
- -------------------------------------------------------------------------------
Statements of Changes in Net Assets
Six Months For the Period
Ended January 5, 1995+
June 30, 1996 to
(Unaudited) December 31, 1995
------------- -----------------
Increase in Net Assets:
Operations:
Net investment income $ 6,495 $ 8,906
Realized gain from security
transactions 68,309 31,862
Realized loss from futures
contracts (12,000) (2,600)
Realized loss from options (20,115) (9,962)
Realized gain from foreign
currency transactions 651 359
Change in unrealized
depreciation of investments,
futures and foreign
denominated assets and
liabilities (517,538) (23,537)
---------- ----------
Increase (decrease) in net
assets resulting from operations (474,198) 5,028
---------- ----------
Dividends to shareholders from:
Net investment income:
Class A Shares -- (31,261)
Class C Shares -- (1,865)
---------- ----------
-- (33,126)
---------- ----------
(474,198) (28,098)
---------- ----------
Capital share transactions*:
Net proceeds from sales of shares:
Class A Shares 9,151,135 3,583,107
Class B Shares 129,792 --
Class C Shares 742,353 237,042
---------- ----------
10,023,280 3,820,149
---------- ----------
Reinvestment of dividends:
Class A Shares -- 29,788
Class C Shares -- 1,777
---------- ----------
-- 31,565
---------- ----------
Cost of shares reacquired:
Class A Shares (2,364,994) (1,693,121)
Class C Shares (172,095) (118,858)
---------- ----------
(2,537,089) (1,811,979)
---------- ----------
Increase in net assets
resulting from capital share
transactions 7,486,191 2,039,735
---------- ----------
Total increase in net assets 7,011,993 2,011,637
Net Assets:
Beginning of period 2,011,637 --
---------- ----------
End of period (including
undistributed net investment
income of $7,146 and $0,
respectively) $9,023,630 $2,011,637
========== ==========
- ----------
+ Commencement of operations.
* Shares of Beneficial Interest Issued and Redeemed (unlimited number of
$.001 par value shares authorized):
<PAGE>
For the Period
Six Months Ended January 5, 1995+
June 30, 1996 to
(Unaudited) December 31, 1995
---------------- -----------------
Class A
Shares sold 759,247 363,031
Reinvestment of dividends -- 3,080
Shares reacquired (201,335) (169,033)
-------- --------
Net increase 557,912 197,078
======== ========
For the Period
April 24, 1996+
to June 30, 1996
(Unaudited)
----------------
Class B
Shares sold 11,037
Shares reacquired --
------
Net increase 11,037
======
Six Months For the Period
Ended January 5, 1995+
June 30, 1996 to
(Unaudited) December 31, 1995
-------------- ------------------
Class C
Shares sold 62,805 22,841
Reinvestment of dividends -- 184
Shares reacquired (14,330) (12,131)
------ --------
Net increase 48,475 10,894
======= ========
- ----------
+ Commencement of operations.
See Notes to Financial Statements
<PAGE>
Gold Opportunity Fund
- --------------------------------------------------------------------------------
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Class A Class B Class C
---------------------------------- ----------------- -----------------------------------
Six Months For the Period For the Period Six Months For the Period
Ended January 5, 1995(a) April 24, 1996(a) Ended January 5, 1995(a)
June 30, 1996 to to June 30, 1996 June 30, 1996 to
(Unaudited) December 31, 1995 (Unaudited) (Unaudited) December 31, 1995
------------- ------------------ ---------------- ------------ -----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $ 9.67 $ 9.43 $11.99 $ 9.67 $ 9.43
------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income ............... 0.01 0.06+ 0.00 0.01 0.07+
Net Gains (Loss) on Investments
(both realized and unrealized) ..... 1.25 0.35 (1.04) 1.27 0.34
------- ------- ------- ------ ------
Total from Investment Operations ...... 1.26 0.41 (1.04) 1.28 0.41
------- ------- ------- ------ ------
Less: Distributions from Net Investment
Income................................ -- (0.17) -- -- (0.17)
------- ------- ------- ------ ------
Net Asset Value, End of Period ........ $10.93 $ 9.67 $10.95 $10.95 $9.67
======= ======= ======= ====== ======
Total Return (b) ...................... 13.03% 4.35% (8.67%) 13.24% 4.35%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplementary Data
Net Assets, End of Period (000) ....... $8,253 $1,906 $121 $650 $105
Ratio of Expenses to Average Net
Assets (c&d) ........................ 0.66% 0% 1.00% 0.70% 0%
Ratio of Net Investment Income (Loss)
to Average Net Assets (d) ............ 0.18% 0.63% (0.06%) 0.17% 0.68%
Portfolio Turnover Rate ................ 199.78% 184.76% 199.78% 199.78% 184.76%
Average Commission Rate Paid ........... $0.0215 $0.0215 $0.0215
</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 and a redemption on the last day
of the period. A sales charge is not reflected in the calculation of total
return. Total return for a period of less than one year is not annualized.
(c) The annualized expense ratios for Class A shares, Class B shares and Class
C shares would have been 2.46%, 6.73%, 2.52%, 7.18% and 24.34%,
respectively, if the expenses had not been assumed by the Advisor.
(d) 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 Gold Opportunity Fund series, 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. The preparation of
financial statements in conformity with generally accepted accounting
principles requires the use of management's estimates, and the actual results
could differ.
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 investment 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 such investments were acquired or sold.
Income and expenses are translated at the exchange rates prevailing when
accrued. The portion of realized and unrealized gains and losses on
investments that result from fluctuations in foreign currency exchange rates
are not separately disclosed. Recognized gains or losses and the
appreciation or depreciation attributable to foreign currency fluctuations
on other foreign denominated assets and liabilities are recorded as net
realized gains and losses from foreign currency transactions and unrealized
appreciation/depreciation on foreign denominated assets and liabilities,
respectively.
D. 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.
E. Distributions to Shareholders--Distributions from net investment income and
realized gains, if any, are recorded on the ex-dividend date. Income and
capital gain distributions are
<PAGE>
GOLD OPPORTUNITY FUND
- -------------------------------------------------------------------------------
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles.
F. Forward Currency Contracts--The Fund may buy and sell forward currency
contracts to settle purchases and sales of foreign denominated securities.
In addition, the Fund may enter into forward currency contracts to hedge
foreign denominated assets. Realized gains and losses from forward currency
contracts are included in realized gain from foreign currency transactions.
The Fund may incur additional risk from investments in forward currency
contracts if the counterparty is unable to fulfill its obligation or there
are unanticipated movements of the foreign currency relative to the U.S.
dollars.
G. Deferred Organization Costs--Deferred organization costs are being amortized
over a period of five years beginning on January 5, 1995 (commencement of
operations).
Note 2--Van Eck Associates Corporation (the "Advisor") earned fees of $35,837
for investment management and advisory services. The fee is based on an annual
rate of 1% of the Fund's average daily net assets. The Advisor agreed to waive
its management fees and administrative fees for the six months ended June 30,
1996. The Advisor also agreed to assume all distribution expenses and all other
expenses for the period January 1, 1996 to March 31, 1996 and for the period
April 1, 1996 to June 30, 1996 would assume all such expenses exceeding 1% of
average daily net assets. Van Eck Securities Corporation (the "Distributor")
received $28,650 for the six months ended June 30, 1996 from commissions earned
on sales of Class A shares after deducting $175,537 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.
Note 3--Purchases and proceeds from sales of investments, other than short-term
obligations, aggregated $17,056,840 and $11,462,121, respectively, for the six
months ended June 30, 1996. For federal income tax purposes the cost of
investments owned at June 30, 1996 was $7,992,165. As of June 30, 1996 net
unrealized depreciation for federal income tax purposes aggregated $527,816 of
which $215,593 related to appreciated investments and $743,409 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 Classes B and 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 12b-1 advanced fees
will be expensed by the Fund over the course of the first twelve months from
the time of purchase. Should the payments to the brokers made by the Fund
exceed, on an annual basis, 1% of average daily net assets, VESC will reimburse
the Fund for 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.
All distribution fees and contingent deferred sales charges have been waived by
the Fund for Class C shares until November 1, 1996 and VESC has agreed to
assume the Fund's obligation to pay the dealers. No payments have been made for
the six months ended June 30, 1996.
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 January 5,
1995 through April 30, 1997 in the event the Plan is terminated, unless the
Board of Trustees determines that reimbursement of the carried forward amounts
is appropriate. The cumulative amount of excess distribution expenses incurred
over the Annual Limitation at June 30, 1996 was $61,638 for Class A shares,
$1,996 for Class B shares and $44,687 for Class C shares.
Note 5--As of June 30, 1996 the Fund was long 10 gold futures contracts which
expire August 28, 1996 with a contract value of $381,600. The gold futures
contracts were acquired in lieu of gold bullion. The Advisor deems the futures
contract to be more advantageous than an acquisition of the bullion. As of June
30, 1996, $13,200 is the unrealized depreciation of the futures contracts. In
the remote chance the broker cannot fulfill its obligation, the Fund could lose
the variation margin due it. Subsequent payments are made or received each day
dependent on the daily fluctuations in the value of the underlying commodity.
Risks may be caused by an imperfect correlation between the movements in the
price of the futures contract and the price of the underlying commodity.
Note 6--The Fund invests in foreign securities. Investments in foreign
securities may involve a greater degree of risk than investments in domestic
securities due to political, economic or social instability. In addition, some
foreign companies are not generally subject to the same uniform accounting,
auditing and financial rules as are American companies, and there may be less
governmental supervision and regulation. Foreign investments may also be
subject to foreign taxes, dividend collection fees and settlement delays.
The Fund may concentrate its investments in companies which are significantly
engaged in the exploration, development, production or distribution of gold and
other metals, minerals, oil, natural gas and coal, and by investing in gold
bullion and coins. Since the Fund may so concentrate, it may be subject to
greater risks and market fluctuations than other more diversified portfolios.
The production and marketing of gold and other natural resources may be
affected by actions and changes in governments. In addition, gold and natural
resources securities may be cyclical in nature.
Note 7--At June 30, 1996 the Fund had the following forward currency contract
outstanding:
Value at
Settlement Current Unrealized
Contract Date Value Depreciation
- ------------------------------ ---------- ------- ------------
Foreign Currency Sale Contract:
AUD 56,630 Expiring 7/05/96 $44,511 $44,582 $(71)
Note 8--Restricted Security
The following security is restricted as to sale:
Percent of
Date Net Assets at
Acquired Cost Value 6/30/96
-------- ---- ----- -------------
Granges Units 4/25/96 $114,537 $77,883 0.86%
<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.
Asia Infrastructure Fund
Seeks long-term capital appreciation by investing in the equity securities of
infrastructure companies that are expected to benefit from the development and
growth of the economies in the Asia Region.
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.
Global Income Fund
This Fund seeks high total return through a flexible policy of investing
globally, primarily in debt securities.
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 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.
[Logo of Van Eck Global]
Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016
http://www.vaneck.com
For account assistance please call (800) 544-4653
B96-0731-017
JUNE 30, 1996
VAN ECK
GOLD
OPPORTUNITY
FUND
SEMI-ANNUAL
REPORT
[LOGO OF VAN ECK GLOBAL]
