SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
(Amendment No.___)
Filed by the Registrant [x]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[x] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted by
Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to ss.240.14a-11(c) or ss.240.14a-12
VAN ECK FUNDS
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[x] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
1) Title of each class of securities to which transaction applies:
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2) Aggregate number of securities to which transaction applies:
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3) Per unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is
calculated and state how it was determined):
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4) Proposed maximum aggregate value of transaction:
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5) Total fee paid:
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[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
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2) Form, Schedule or Registration Statement No.:
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3) Filing Party:
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4) Date Filed:
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[GRAPHIC OMITTED]
February XX, 1999
Dear Shareholder,
A special meeting of the shareholders of the Van Eck Global Balanced Fund has
been called to approve changes concerning the structure of the Fund, which we
believe to be in your best interests.
The Board of Trustees proposes that the Fund become a global equity fund rather
than a global balanced fund, and that it invest primarily in global stocks,
while reducing the global bond allocation. The Fund would continue to seek
long-term capital appreciation but income would no longer be a primary
objective. Please note that the sub-adviser would remain the same. (Please see
the following pages for further detail on the proposal.)
Attached are the Notice and Proxy Statement/Prospectus for a Special Meeting of
Shareholders of the Global Balanced Fund to be held on Thursday, April 15, 1999
for the purpose of considering the proposed Agreement. PLEASE READ THE PROXY
STATEMENT/PROSPECTUS CAREFULLY. IT DISCUSSES THE PROPOSAL AS WELL AS THE REASONS
WHY THE BOARD OF TRUSTEES RECOMMENDS THAT YOU VOTE FOR THE PROPOSAL.
Please take a moment now to sign and return the proxy card in the enclosed
postage-paid envelope. Your prompt attention in this matter benefits all
shareholders. Thank you.
Sincerely,
John C. van Eck
Chairman of the Board
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VAN ECK FUNDS
GLOBAL BALANCED FUND
99 PARK AVENUE, NEW YORK, NEW YORK 10016
(212) 687-5200 o TOLL FREE (800) 221-2220
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NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
APRIL 15, 1999
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A SPECIAL MEETING OF SHAREHOLDERS OF VAN ECK FUNDS (the "Trust"),
including its series GLOBAL BALANCED FUND (the "Fund"), will be held at the
offices of the Trust, 8th Floor, 99 Park Avenue, New York, New York on Thursday,
April 15, 1999 at 3:00 P.M., New York Time, for the following purposes:
1. To approve a change in the Fund's investment objective and
policies.
Shareholders of record at the close of business on February 25, 1999
are entitled to notice of, and to vote at the Special Meeting.
By order of the Board of Trustees,
THOMAS H. ELWOOD,
Secretary
February 25, 1999
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WHETHER YOU EXPECT TO ATTEND THE SPECIAL MEETING OR NOT,
PLEASE COMPLETE, DATE AND SIGN THE ENCLOSED PROXY CARD
AND RETURN IT PROMPTLY.
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VAN ECK FUNDS
99 PARK AVENUE, NEW YORK, NEW YORK 10016
(212) 687-5200 o TOLL FREE (800) 221-2220
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PROXY STATEMENT
SPECIAL MEETING OF SHAREHOLDERS
APRIL 15, 1999
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This Proxy Statement is furnished to shareholders of the Global Balanced Fund
(the "Fund"), a series of the Van Eck Funds (the "Trust"), in connection with
the solicitation by the Trust's Board of Trustees of proxies to be used at a
Special Meeting of Shareholders of the Trust (the "Special Meeting") to be held
at the offices of the Trust, 99 Park Avenue, 8th floor, New York, New York on
Thursday, April 15, 1999 at 4:00 P.M., New York Time, for the purposes set forth
in the accompanying Notice of Special Meeting of Shareholders. The enclosed
proxy can be revoked by notice in writing to the Trust at any time before it is
exercised or by voting in person at the Special Meeting. The cost of soliciting
proxies will be borne by the Fund. In addition to solicitation by mail, some of
the officers of the Trust and/or employees of the Van Eck Associates Corporation
(the "Adviser"), without extra remuneration, may conduct additional solicitation
by telephone, telegraph and personal interview. This proxy soliciting material
is being mailed to shareholders on or about March 15, 1999.
Only shareholders of record at the close of business on February 25, 1999 are
entitled to notice of, and to vote at, the Special Meeting and at any
adjournment(s) thereof.
Each proxy will be voted in accordance with the shareholder's instruction with
respect to each of the proposals. If a signed proxy is returned with no
instructions indicated, the proxy will be voted FOR all of the proposals. In the
event there are not sufficient votes to approve the proposal at the time of the
Special Meeting, the Special Meeting may be adjourned to permit further
solicitations of proxies by the Trust. If the Trust proposes to adjourn the
Special Meeting by a vote of the shareholders, the persons named in the enclosed
proxy card will vote all shares for which they have voting authority in favor of
such adjournment.
As of February 25, 1999, there were outstanding ___________ shares of beneficial
interest of Global Balanced Fund - Class A and ___________ shares of beneficial
interest of Global Balanced Fund - Class B. Each full share is entitled to one
full vote and each fractional share is entitled to a proportionate share of one
vote. As of such date, the following persons were known to the Trust to own of
record or beneficially more than 5% of the outstanding shares of the Fund:
GLOBAL BALANCED FUND - CLASS A
GLOBAL BALANCED FUND - CLASS B
A proxy that is properly executed by a client and returned to his or her broker,
which holds Fund shares for the client in its own name, and that is accompanied
by the client's instructions to withhold authority to vote with respect to the
proposal, represents a broker "non-vote" (that is, a
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proxy from a broker or nominee indicating that such person has not received
instructions from the beneficial owner or other person entitled to vote shares
on the particular matter with respect to which the broker or nominee does not
have discretionary power). The shares represented thereby will be considered not
to be present at the Special Meeting for purposes of determining the existence
of a quorum for the transaction of business for that proposal and will be deemed
not cast with respect to such proposal. Also, a properly executed and returned
proxy marked with an abstention will be considered present at the Meeting for
purposes of determining the existence of a quorum for the transaction of
business. However, abstentions and broker "non-votes" have the effect of a
negative vote on matters which require approval by a requisite percentage of the
outstanding shares.
PROPOSAL NO. 1
TO APPROVE A CHANGE IN THE FUND'S INVESTMENT OBJECTIVE
AND POLICIES
The objective of the Fund is to seek long-term capital appreciation together
with current income. It seeks to achieve this objective by investing in the
United States and other countries throughout the world and by allocating its
assets among equity securities, fixed-income securities and short-term
instruments. The Fund currently is restricted to no more than 10% of its assets
in securities of developing countries with emerging economies or securities
markets. In addition at least 25% of the Fund's asset is required to be invested
in fixed-income senior securities and at least 25% in equities.
Management believes that the Fund's current and future shareholders would be
better served if the objective of the Fund were changed to permit the Fund to
invest without restriction in global equity and debt securities. All percentage
limitations on investments in equity and debt securities would be eliminated and
the Fund would change its investment objective to seek long term capital
appreciation (without regard to current income).
The Fund's prospectus would be amended as follows to state the new investment
objective and strategies:
THE FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE YOU WITH LONG TERM GROWTH OF
CAPITAL. IT INVESTS IN COMMON STOCKS ON A GLOBAL BASIS TO TAKE ADVANTAGE OF
INVESTMENT OPPORTUNITIES IN INTERNATIONAL TRADE, AND ECONOMIC AND POLITICAL
SITUATIONS. THE FUND MAY ALSO INVEST IN CASH, CASH EQUIVALENTS AND DEBT
SECURITIES OF DOMESTIC AND INTERNATIONAL GOVERNMENTS FINANCIAL INSTITUTIONS AND
CORPORATIONS IN RESPONSE TO FAVORABLE MARKET CONDITIONS.
If the changes are approved by shareholders, the Fund will also change its name
to eliminate the word "Balanced".
Management believes that, by eliminating current income as a factor in the
selection of appropriate investments the Fund will be able to implement a more
focused and effective investment strategy. Management also believes that the
elimination of all percentage restrictions relating to investments in equity and
debt securities will maximize flexibility for achieving the objective of
long-term capital appreciation. Furthermore, management believes that these
changes will benefit those investors that desire to make their own asset
allocation decisions in structuring a personal portfolio that provides both
capital appreciation and current income. Finally, management believes that the
proposed changes will enhance the attractiveness of the Fund to new investors,
which will ultimately permit continued growth of assets and a reduction in the
per share operating expenses of the Fund.
THE BOARD OF TRUSTEES RECOMMENDS A VOTE FOR THIS PROPOSAL.
REQUIRED VOTE
Approval of the proposal requires the vote of a majority of the outstanding
shares of the Fund as defined in the Investment Company Act of 1940, as amended.
This means an affirmative vote of the lesser of (1) more than 50% of the
outstanding voting shares or (2) 67% or more of the shares of the Fund present
at the Special Meeting if more than 50% of the outstanding shares of the Fund
are present or represented by proxy. Shareholders of Class A and Class B shares
will vote as a single class on the proposal.
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OTHER MATTERS TO COME BEFORE THE MEETING
The Trustees do not intend to present any other business at the Special Meeting,
nor are they aware that any shareholder intends to do so. If, however, any other
matters are properly brought before the Special Meeting, the persons named in
the accompanying form of proxy will vote thereon in accordance with their
judgment.
WHETHER OR NOT YOU PLAN TO ATTEND, IT WOULD BE APPRECIATED IF YOU WOULD FILL IN,
DATE AND SIGN THE ENCLOSED PROXY AND RETURN IT PROMPTLY IN THE ENCLOSED
ENVELOPE. NO POSTAGE IS NECESSARY IF IT IS MAILED IN THE CONTINENTAL UNITED
STATES.
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PROXY CARD PROXY CARD
VAN ECK FUNDS
GLOBAL BALANCED FUND
PROXY FOR SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD APRIL 15, 1999
The undersigned shareholder of GLOBAL BALANCED FUND (the "Fund"), a series of
VAN ECK FUNDS (the "Trust"), having received Notice of the Special Meeting of
Shareholders of the Trust to be held on Thursday, April 15, 1999 and the Proxy
Statement accompanying such Notice, hereby constitutes and appoints Jan van Eck
and Derek van Eck and each of them, true and lawful attorneys or attorney for
the undersigned, with several powers of substitution, for and in the name, place
and stead of the undersigned, to attend and vote all shares of the Trust which
the undersigned would be entitled to vote at the Meeting to be held at 99 Park
Avenue, 8th Floor, New York, on Thursday, April 15, 1999, at 3:00 P.M., New York
Time, and at any and all adjournments thereof, with all powers the undersigned
would possess if personally present.
Dated: _____________________, 1999
__________________________________________
Signature of Shareholder
__________________________________________
Signature of Co-Owner
For joint accounts, all co-owners must
sign. Executors, administrators, trustees,
etc. should so indicate when signing.
THE BOARD OF TRUSTEES RECOMMENDS A VOTE FOR THE PROPOSAL.
THE SHARES REPRESENTED HEREBY WILL BE VOTED AS INDICATED BELOW
OR FOR THE PROPOSAL IF NO CHOICE IS INDICATED.
PROPOSAL
1. To approve a change in the Fund's investment objective and policies.
FOR _________ AGAINST _________ ABSTAIN _________
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PROXY CARD
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PLEASE MARK YOUR PROXY, DATE AND SIGN IT AND RETURN IT PROMPTLY IN
THE ACCOMPANYING ENVELOPE WHICH REQUIRES NO POSTAGE IF MAILED
IN THE UNITED STATES.
