JUNE 30, 1997
Van Eck
Asia
Infrastructure
Fund
Semi-Annual
Report
[LOGO]
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VAN ECK ASIA INFRASTRUCTURE FUND
--------------------------------
1997 SEMI-ANNUAL REPORT
Dear Fellow Shareholder:
The Asian markets continued to have mixed results in the first half of 1997,
with Hong Kong, Indonesia, Korea and Taiwan showing strength, while Thailand,
Malaysia, the Philippines and Singapore witnessed negative returns. However,
Asian infrastructure development continues on track with strong cash flows into
these projects and related companies. The Van Eck Asia Infrastructure Fund had a
total return of 4.5% for the six months ended June 30 versus the Morgan Stanley
Capital International Index, which gained 1.2% during this period.
MARKET REVIEW
In the first half of the year, Asian market performance was strongly influenced
by the handover of Hong Kong to China. It has been commonly perceived,
particularly on a local level, that Hong Kong and China would mutually benefit
from the handover. Investor sentiment was positive toward the greater China
markets (Hong Kong, China and Taiwan), all of which had strong returns, while
many of the other markets were penalized and ended the period with negative
results. Hong Kong gained 9.8% for the first six months of 1997.
The performance of many of the other Southeast Asian markets contrasted sharply
to that of Hong Kong. Investors reduced portfolio weightings in Thailand,
Malaysia and the Philippines on fears of currency devaluation. Thailand's
government did devalue the Thai baht in June and the market plunged. However,
longer-term this should be positive--a floating baht should bring interest rates
lower and demonstrates the government's resolve to rejuvenate the economy.
Sluggish export growth and a decelerating economy also kept investors away from
Singapore. The only exception was Indonesia, which continued to receive a steady
inflow of capital from direct investments.
In North Asia, Korea and Taiwan achieved good returns (Taiwan gained an
incredible 27%) as fund flows gradually moved into these markets. Renewed
strength of the Japanese yen and financial market deregulation underpinned stock
prices in Seoul. In Taiwan, the market was spurred by speculative retail money
and market volatility increased.
INFRASTRUCTURE SECTOR REVIEW
Notwithstanding the currency turmoil, the property market slump and rising
concerns about the Asian banking sector, commitment to Asian infrastructure
projects remained unabated. For example, the Asian Infrastructure Development
Company Ltd. (AIDEC), a quasi-government organization that provides capital for
infrastructure development in Asia, increased its capital base by 55% in the
first half of the year. The company expects to invest US$400 million in major
infrastructure projects in Asia over the next two years. The World Bank is also
expected to invest about $2.7 billion in projects in China this year and another
$3 billion in both 1998 and 1999. In Thailand, the government plans to boost the
development of industrial parks, roads and railways in eleven eastern and
central provinces.
Against this background, infrastructure-related stocks performed relatively
better than the rest of the market. In particular, the infrastructure sector in
Hong Kong, where the portfolio had the largest weighting, delivered strong
returns. The two other large country allocations did not fare as well--Malaysian
infrastructure stocks were hit by the monetary tightening policy of the
government, while Thailand's market was roiled by the devaluation. Still, some
of the infrastructure stocks in Thailand, particularly energy stocks, performed
well relative to that market overall.
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Your portfolio was heavily weighted toward energy and construction companies,
primarily in Hong Kong, which performed well during the first six months of the
year and contributed most of the Fund's performance.
THE OUTLOOK*
The long-term prospects for the infrastructure sector in Asia remain positive.
Concerns over a reduction in the ability to raise funds for these projects are
exaggerated, in our opinion, and we continue to see steady commitment to the
region. While there may be a temporary slowdown of infrastructure investment in
a few Southeast Asian countries this year, this should provide the opportunity
to buy infrastructure stocks at attractive valuations. China and India will
probably receive most of the infrastructure-related capital in the near term,
and we expect outperformance in the related markets.
We appreciate your participation in the Asia Infrastructure Fund and look
forward to helping you meet your investment goals in the future.
JOHN C. VAN ECK TIMOTHY CHAN
CHAIRMAN PORTFOLIO MANAGER
July 25, 1997
*AS YOU KNOW, THE ASIA INFRASTRUCTURE FUND HAS BEEN CLOSED TO NEW PURCHASES
SINCE APRIL 30, 1997. YOU HAVE BEEN SENT A PROXY ASKING YOU TO VOTE FOR THE
LIQUIDATION AND DISSOLUTION OF THE FUND. THE LIQUIDATION IS BEING PROPOSED IN
PART BECAUSE THE FUND'S INVESTMENT ADVISOR HAS INDICATED THAT IT WOULD SOON
DISCONTINUE ITS VOLUNTARY ABSORPTION OF A SUBSTANTIAL PORTION OF FUND EXPENSES.
BECAUSE OF THE FUND'S SMALL SIZE, THIS WILL HAVE AN ADVERSE EFFECT ON
PERFORMANCE, WHICH IN TURN COULD REDUCE ASSETS AND FURTHER INCREASE THE FUND'S
EXPENSE RATIO. PLEASE BE AWARE, HOWEVER, THAT YOU MAY EXCHANGE INTO ANY ONE OF
OUR OTHER FUNDS AT NO CHARGE, INCLUDING THE VAN ECK ASIA DYNASTY FUND, WHICH IS
ALSO MANAGED BY TIMOTHY CHAN, AND THE VAN ECK EMERGING MARKETS GROWTH FUND. TO
MAKE AN EXCHANGE, CALL 1-800-345-8506. PLEASE SEE THE BACK COVER OF THIS REPORT
FOR A LISTING OF ALL THE VAN ECK FUNDS AND THEIR OBJECTIVES OR CALL
1-800-826-2333 TO SPEAK WITH A MARKETING REPRESENTATIVE TO DISCUSS YOUR OPTIONS.
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PERFORMANCE RECORD AS OF 6/30/97
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AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE* CHARGE
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A shares--Life (since 8/3/94) (1.6)% 0.1%
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1 year 2.0% 7.0%
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B shares--Life (since 4/24/96) 1.5% 5.7%
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1 year 0.9% 6.9%
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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.
* A shares: maximum sales charge = 4.75%.
B shares: maximum contingent deferred sales charge = 6.00%
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. Please read the prospectus carefully before you invest.
Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016
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ASIA INFRASTRUCTURE FUND
STATEMENT OF NET ASSETS JUNE 30, 1997 (UNAUDITED)
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NO. OF SHARES SECURITIES (A) VALUE (NOTE1)
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HONG KONG: 47.8%
32,000 Cheung Kong Infrastructure $ 92,733
10,000 China Light & Power Co. Ltd. 56,667
60,000 Cosco Pacific Ltd. 139,022
112,000 Guangshen Railway Co. Ltd. 49,155
30,000 Hong Kong Electric Hldg. 71,641
16,000 Hutchison Whampoa Ltd. 138,376
20,000 New World Infrastructure Ltd. 56,538
80,000 Pacific Concord Holdings 44,662
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648,794
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INDONESIA: 5.3%
26,000 P.T. Medico Energy Corp. "F" 47,841
11,000 P.T. Semen Gresik "F" 24,650
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72,491
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MALAYSIA: 13.4%
32,000 Renong Berhad 41,822
13,000 Road Builder (M) Hldgs. Berhad 61,267
23,000 Sungei Way Holdings Berhad 43,358
7,500 Telekom Malaysia Berhad 35,050
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181,497
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PHILIPPINES: 7.3%
36,250 First Philippine Holding (Class B) 50,152
1,500 Philippine Long Distance Telephone Company 48,612
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98,764
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SINGAPORE: 4.3%
6,500 Singapore Airlines Ltd. "F" 58,194
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SOUTH KOREA: 4.2%
5,984 Dong-Ah Construction (EDR) 57,596
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THAILAND: 11.4%
1,500 Ban Pu Coal Co. Ltd. "F" 23,002
15,000 Electricity Generating Public Company "F" 38,641
3,500 Exploration & Production Public Company "F" 53,387
7,200 Tipco Asphalt Public Co. "F" 39,432
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154,462
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TOTAL STOCKS & OTHER INVESTMENTS: 93.7%
(Cost: $1,312,090) 1,271,798
Other Assets Less Liabilities: 6.3% 85,930
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Net Assets:100% $1,357,728
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ASIA INFRASTRUCTURE FUND
INVESTMENT PORTFOLIO JUNE 30, 1997 (CONTINUED)
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SUMMARY OF INVESTMENTS BY INDUSTRY % OF PORTFOLIO
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Airlines 4.6%
Building Materials 6.5%
Cement 1.9%
Coal 1.8%
Engineering & Construction 24.4%
Holding Companies 18.3%
Oil & Gas Exploration 8.0%
Packaging 10.9%
Railroads 3.9%
Telecommunications 12.2%
Utilities 7.5%
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100.0%
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(a) Unless otherwise indicated, securities owned are shares of common stock.
Glossary:
EDR - European Depositary Receipt
"F" -Foreign registry
See Notes to Financial Statements.
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ASIA INFRASTRUCTURE FUND
FINANCIAL STATEMENTS (UNAUDITED)
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STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997
Assets:
Investments at value (cost, $1,312,090) (Note 1) $ 1,271,798
Cash 135,942
Receivables:
Securities sold 26,265
Dividends 2,179
From Advisor 18,708
Deferred organization costs 13,746
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Total assets 1,468,638
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Liabilities:
Payables:
Securities purchased 87,555
Capital stock redeemed 1,389
Accounts payable 21,966
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Total liabilities 110,910
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Net Assets $ 1,357,728
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Class A
Net asset value and redemption price per share
($1,299,468/139,405) $9.32
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Maximum offering price per share
(NAV/(1-maximum sales commission)) $9.78
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Class B
Net asset value and redemption price
per share ($58,260/6,268) (Redemptions may
be subject to a contingent deferred sales charge
within the first six years of ownership) $9.29
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Net assets consist of:
Aggregate paid in capital $ 1,599,609
Unrealized depreciation of investments
and foreign currency (39,524)
Net investment loss (5,504)
Cumulative realized losses (196,853)
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$ 1,357,728
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ASIA INFRASTRUCTURE FUND FINANCIAL STATEMENTS (UNAUDITED)
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STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1997
INCOME:
Dividends (less foreign taxes withheld of $954) $ 11,746
EXPENSES:
Management (Note 2) $ 6,449
Distribution Class A (Note 4) 4,127
Distribution Class B (Note 4) 338
Administration 3,649
Transfer agency 26,900
Registration 4,500
Professional 8,078
Reports to shareholders 1,976
Amortization of deferred organization costs 3,245
Custody 1,593
Other 2,037
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62,892
Expenses assumed by the Advisor (Note 2) (45,684)
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Total expenses 17,208
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Net investment loss (5,462)
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3)
Realized loss from security transactions (9,874)
Realized loss from foreign currency transactions (42)
Change in unrealized appreciation of investments
and foreign denominated receivables and payables 69,307
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NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 53,929
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ASIA INFRASTRUCTURE FUND FINANCIAL STATEMENTS (UNAUDITED)
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STATEMENTS OF CHANGES IN NET ASSETS
FOR THE
SIX MONTHS ENDED YEAR ENDED
JUNE 30,1997 DECEMBER 31,
(UNAUDITED) 1996
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INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss $ (5,462) $ (9,042)
Realized gain (loss) from
security transactions (9,874) 252,653
Realized loss from foreign (42) (978)
currency transactions
Change in unrealized appreciation
of investments and foreign
denominated receivables and payables 69,307 (68,686)
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Increase in net assets resulting from
operations 53,929 173,947
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Capital share transactions (Note 6):
Net proceeds from sales of shares:
Class A shares 1,423,385 2,292,640
Class B shares 7,503 67,082
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1,430,888 2,359,722
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Cost of shares reacquired:
Class A shares (2,336,595) (1,041,725)
Class B shares (14,195) (5,697)
Class C shares (1,389) --
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(2,352,179) (1,047,422)
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Increase (decrease) in net assets
resulting from capital share
transactions (921,291) 1,312,300
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Total increase (decrease) in net assets (867,362) 1,486,247
NET ASSETS:
Beginning of period 2,225,090 738,843
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End of period $ 1,357,728 $ 2,225,090
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See Notes to Financial Statements
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ASIA INFRASTRUCTURE FUND
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FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
CLASS A
FOR THE ------- FOR THE PERIOD
SIX MONTHS ENDED YEAR ENDED YEAR ENDED AUGUST 3, 1994(A)
JUNE 30, 1997 DECEMBER 31, DECEMBER 31, TO
(UNAUDITED) 1996 1995 DECEMBER 31, 1994
----------- ----- ----- -----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ................... $8.92 $7.57 $7.04 $9.53
----- ----- ----- -----
Income from Investment Operations:
Net Investment Income (Loss) ........................ (0.04) (0.04) 0.04+ 0.18+
Net Gains (Loss) on Investments
(both realized and unrealized) ................... 0.44 1.39 0.49 (2.50)
----- ----- ----- ------
Total from Investment Operations ....................... 0.40 1.35 0.53 (2.32)
----- ----- ----- ------
Less Distributions:
From net investment income .......................... - - - (0.17)
....................................................... - - - -
From realized gains ................................. - - - -
- - -
Total Distributions .................................... - - - (0.17)
----- - - ------
Net Asset Value, End of Period ......................... $9.32 $8.92 $7.57 $7.04
===== ===== ===== =====
Total Return (b) ....................................... 4.48% 17.83% 7.53% (24.3%)
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RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ........................ $1,299 $2,161 $738 $1,038
Ratio of Gross Expenses to Average Net Assets(c) ....... 6.16%* 8.03% 8.29% 2.71%(d)
Ratio of Net Expenses to Average Net Assets ............ 2.00%* 2.00% 1.72% 0.28%(d)
Ratio of Net Investment Income (Loss)
to Average Net Assets ............................... (0.31%)* (0.62%) 0.52% 1.78%(d)
Portfolio Turnover Rate ................................ 48% 183% 90% 147%
Average Commission Rate Paid(d) ........................ $0.0011 $0.0021
</TABLE>
<TABLE>
<CAPTION>
CLASS B
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FOR THE FOR THE PERIOD
SIX MONTHS ENDED APRIL 24, 1996(A)
JUNE 30, 1997 TO
(UNAUDITED) DECEMBER 31, 1996
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<S> <C> <C>
Net Asset Value, Beginning of Period.................... $8.89 $8.70
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Income from Investment Operations:
Net Investment Loss.................................. (0.04) (0.03)
Net Gains on Investments
(both realized and unrealized).................... 0.44 0.22
----- ----
Total from Investment Operations........................ 0.40 0.19
----- ----
Less Distributions:
From net investment income........................... - -
From realized gains.................................. - -
Total Distributions..................................... - -
----- -----
Net Asset Value, End of Period.......................... $9.29 $8.89
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Total Return (b)........................................ 4.50% 2.18%
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RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000)......................... $58 $62
Ratio of Gross Expenses to Average Net Assets(c)........ 35.54%* 23.94%*
Ratio of Net Expenses to Average Net Assets............. 2.00%* 2.00%*
Ratio of Net Investment Income (Loss)
to Average Net Assets................................ (0.34%)* (0.57)%*
Portfolio Turnover Rate................................. 48% 183%
Average Commission Rate Paid(d) ........................ $0.0011 $0.0021
</TABLE>
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(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 calculated for a period of less than one year is not
annualized.
(c) If the expenses were not assumed by the Advisor.
(d) For fiscal years beginning on or after September 1,1995, a fund is required
to disclose its average commission rate per share for trades in which
commission is charged.
* Annualized.
+ Based on average shares outstanding.
See Notes to Financial Statements.
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ASIA INRFRASTRUCTURE FUND
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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 Asia Infrastructure Fund series, a non-diversified fund (the "Fund") of
the Trust in the preparation of its financial statements. On June 30, 1997, all
of Asia Infrastructure Fund Class C shares were redeemed. 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 amounts 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
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 is not separately
disclosed. Recognized gains or losses attributable to foreign currency
fluctuations on other foreign denominated assets and liabilities are recorded
as net realized gains and losses from foreign currency transactions.
D. OTHER -- Security transactions are accounted for on the date the securities
are purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date.
E. DISTRIBUTIONS -- Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from
generally accepted accounting principles
F. DEFERRED ORGANIZATION COSTS -- Deferred organization costs are being
amortized over a period not exceeding five years.
NOTE 2 -- Van Eck Associates Corporation (the "Advisor") earned fees of $6,449
for investment management and advisory services. The fee was based on an annual
rate of .75 of 1% of the Fund's average daily net assets. Van Eck Associates
Corporation also earned fees for accounting and administrative services. The fee
was based on an annual rate of .25 of 1% of the Fund's average daily net assets.
Van Eck Associates Corporation agreed to waive its management fees and
administrative fees and to assume all expenses of the Fund in excess of 2% of
average daily net assets for the six months ended June 30, 1997. Van Eck
Securities Corporation received $267 for the six months ended June 30, 1997 from
commissions earned on sales of Class A shares after deducting $1,428 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.
<PAGE>
ASIA INRFRASTRUCTURE FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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NOTE 3 -- Purchases and proceeds from sales of investments, other than
short-term obligations, aggregated $759,916 and $1,417,984, respectively, for
the six months ended June 30, 1997. For federal income tax purposes the cost of
investments owned at June 30, 1997 was $1,382,090. At June 30, 1997, net
unrealized depreciation for federal income tax purposes aggregated $40,292, of
which $139,803 related to appreciated investments and $180,095 related to
depreciated investments. At December 31, 1996, the Fund had $185,999 of capital
loss carryforwards available to offset future capital gains, expiring December
31, 2003.
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 B shares (the "Annual Limitations").
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 (commencement of operations) through September 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 excess of
distribution expenses incurred over the Annual Limitation at June 30, 1997 was
$78,058 for Class A shares, $6,351 for Class B shares, and $18,463 for Class C
shares.
NOTE 5 -- 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
government supervision and regulation. Foreign investment may also be subject to
foreign taxes, dividend collection fees and settlement delays.
The Fund may concentrate its investments in companies which are significantly
involved in the design, construction, development, manufacture, sales, leasing,
installation or operation of, or the ownership of property in connection with
infrastructure facilities, systems, products and technologies in various Asian
countries.
Since the Fund may so concentrate, it may be subject to greater economic, social
and political risks and market fluctuations than other more diversified domestic
and foreign portfolios.
NOTE 6 -- Shares of Beneficial Interest Issued and Redeemed (unlimited number of
$0.001 par value shares authorized):
FOR THE
SIX MONTHS ENDED YEAR ENDED
JUNE 30,1997 DECEMBER 31,
(UNAUDITED) 1996
-------- -----------
Class A
Shares sold 156,894 266,545
Shares reacquired (259,916) (121,582)
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Net increase (decrease) (103,022) 144,963
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ASIA INRFRASTRUCTURE FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED )
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FOR THE FOR THE PERIOD
SIX MONTHS ENDED APRIL 24, 1996+
JUNE 30,1997 TO DECEMBER 31,
(UNAUDITED) 1996
----------- ---------------
Class B
Shares sold 821 7,699
Shares reacquired (1,575) (677)
------ -----
Net increase (decrease) (754) 7,022
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FOR THE
SIX MONTHS ENDED YEAR ENDED
JUNE 30,1997 DECEMBER 31,
(UNAUDITED) 1996
----------- ------------
Class C
Shares sold -- --
Shares reacquired (149) --
----- -----
Net decrease (149) --
===== =====
+ Commencement of operations.
NOTE 7--TRUSTEE DEFERRED COMPENSATION PLAN
The Trust established a Deferred Compensation Plan (the "Plan") for trustees.
Commencing January 1, 1996, the Trustees can elect to defer receipt of their
trustee fees until retirement, disability or termination from the board. The
Fund's contributions to the Plan are limited to the amount of fees earned by the
participating trustees. The fees otherwise payable to the participating trustees
are invested in shares of the Van Eck Funds as directed by the trustees. If a
trustee has directed all or a portion of his fee to be invested in the Fund, the
unfunded liability remains outstanding in the Fund's records since the Fund
cannot invest in itself. The Plan has been approved by the Internal Revenue
Service.
As of June 30, 1997, the total value of the assets and corresponding liability
of the Fund's portion of the Plan is $82.
<PAGE>
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VAN ECK FAMILY OF FUNDS
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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.
EMERGING MARKETS GROWTH FUND
This Fund seeks long-term capital appreciation by investing primarily in equity
securities in emerging markets around the world.
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.
GLOBAL BALANCED FUND
This Fund seeks long-term capital appreciation together with current income by
investing in stocks, bonds and money market instruments worldwide.
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.
This report must be accompanied or preceded by a 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 or Van Eck Global Funds prospectus, please call the number
below. Please read the prospectus before investing.
[LOGO]
Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016
www.vaneck.com
For account assistance please call (800) 544-4653
FR1997-0729-0027
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