VAN ECK GLOBAL
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SEMI-ANNUAL REPORT
JUNE 30, 2000
VAN ECK FUNDS
ASIA DYNASTY FUND
EMERGING MARKETS VISION FUND
GLOBAL HARD ASSETS FUND
GLOBAL LEADERS FUND
INTERNATIONAL INVESTORS GOLD FUND
NATURAL RESOURCES FUND
U.S. GOVERNMENT MONEY FUND
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GLOBAL INVESTMENTS SINCE 1955
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VAN ECK ASIA DYNASTY FUND
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Dear Fellow Shareholder:
After a year of exceptional performance in 1999, the Asian markets experienced
profit-taking during the first six months of 2000. A number of factors
contributed to this market adjustment, including hikes in U.S. interest rates,
the possibility of a U.S. economic slowdown, and the extreme volatility of the
U.S. markets. Technology stocks, which were particularly volatile, are a primary
driver of the Asian markets. In this environment, the Van Eck Asia Dynasty Fund
declined 19.18% in the first half of the year, compared with a loss of 14.15%
for the MSCI Far East Free (ex-Japan) Index.*
REVIEW
We continue to have a very positive outlook for the Asian markets overall. Most
Asian markets are experiencing strong economic growth due to a sharp rebound in
domestic demand, sustained low interest rates and subdued inflation. Demand from
developed economies has added to this strength. In terms of the markets, company
earnings remain strong, corporate restructuring continues and stock valuations
are attractive. Therefore, we view the recent market correction as just that, a
correction in the middle of a bull market cycle.
The recent bull market in Asian stocks began at the end of 1998. At that time,
the Fund became fully invested with an emphasis on growth stocks and the
technology sector, strategies that helped us outperform in 1999. However, the
Fund's bias toward growth and technology stocks hurt performance in the second
quarter of 2000, as investors realigned their portfolios in favor of cheaper
value stocks.
We have maintained the portfolio's growth and technology emphases because
company fundamentals remain strong and we believe that these stocks continue to
offer the most promising results. In terms of country weightings, we have
favored those markets that are benefiting from the technology boom, in
particular those of Taiwan, Korea and India.
The best performing markets for the first half were those of Greater China
(China, +48%; Taiwan, -0.3%; and Hong Kong, -5.0% ), whereas the Southeast Asian
countries generally suffered from a lack of interest. One exception to this was
Malaysia, which gained 2.6%. One of the reasons for the relative outperformance
of Malaysia and Taiwan was their weighting increase in the main benchmark index
(and hence, their increased weighting in many investment portfolios) as of May
31.
The TAIWANESE market (16.8% of the Fund's total net assets as of June 30)
performed well over the first quarter, but gave those gains back in the second.
We were underweight throughout the first half, but less so in the second
quarter, which contributed negatively to returns. Fears of slackening demand for
electronics goods as the U.S. economy slows down appears to have been part of
the reason for this. However, the sector, which is crucial to the country's
economy, appears to be performing very strongly, with many companies showing
record sales. The technology sector did not fully participate in the rally that
many U.S. technology stocks experienced in June, but we hope that there will be
an element of "catch-up" in the next few months. Certainly, earnings growth has
been very strong. In the political arena, elections at the end of the quarter
saw the incumbent party's candidate defeated, paving the way for some progress
in stalled cross-straits negotiations.
CHINA (2.6% of assets) is responding well to monetary stimulus and exports are
benefiting from strengthening external demand. Consumers appear to be spending
again, and the savage deflation that has been a feature of the Chinese economy
may be lifting. It appears as though the Chinese economy may be in its best
shape since the early nineties. HONG KONG (18.0% of assets) appears to be
recovering nicely, with office demand showing notable strength. Further economic
strength on the mainland should reinforce this trend. Our total exposure to Hong
Kong is nearly twice the benchmark weighting, as we feel strongly that these
markets will do well in the second half of the year.
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VAN ECK ASIA DYNASTY FUND
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In MALAYSIA, the economy continues to recover well with low inflation. Interest
rates should remain at very subdued levels, providing valuation support for
equities. On the negative side, most international money managers are skeptical
of corporate reform efforts and remain underweight. We entered into the year
with an overweight position in Malaysia, and cut this to underweight in the
second quarter (7.0% of the Fund's total net assets at June 30).
INDIA'S government budget is always keenly watched for signs of government
direction and ability to control the large fiscal deficit. By and large, most
observers were disappointed this year and the market sold off heavily toward the
end of the first quarter. A relatively strong performance in the second quarter
left the broad market down less than 1% for the first half. Unfortunately, many
software stocks were especially hard hit. The issue for software stocks has
essentially been a valuation one, as their business outlook remains very
attractive. At June 30, 13.5% of the portfolio was invested in Indian
securities.
The SOUTH KOREAN market (22.2% of assets) remains something of an enigma. For
most of the first half, the market performed poorly despite strong fundamentals
and, in particular, good valuations, ending the period down 20.1%. In June, the
market recovered somewhat. Although foreign investors were not large sellers,
local retail investors took money out of the market, forcing redemptions at the
investment trust companies. The motivating factor behind the move to cash,
domestically, appears to be fears of further strains in the financial sector. In
our opinion, the market has sufficiently priced in these problems and we expect
the market to continue to rally.
THE OUTLOOK
We are positive on the outlook for both the Asian economies and markets. The
Asian economies are clearly moving to a more sustainable growth rate after the
sharp rebound of the last eighteen months. Nonetheless, export growth remains
strong, most countries have current account surpluses, and consumer strength and
investment are growing. The markets may be volatile over the next few months,
particularly until the outlook for the U.S. economy and interest rates becomes
clearer, and exogenous factors may still dominate the performance of the Asian
markets near term. However, with less uncertainty and less volatility in the
major global markets, we believe the Asian markets will continue to perform due
to overwhelmingly positive domestic and corporate news in the region.
We would like to thank you for your participation in the Van Eck Asia Dynasty
Fund and we look forward to working with you in the future.
[PHOTO OF DAVID A. SEMPLE] [PHOTO OF DAVID M. HULME]
/s/ David A. Semple /s/ David M. Hulme
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DAVID A. SEMPLE DAVID M. HULME
CO-PORTFOLIO MANAGER CO-PORTFOLIO MANAGER
July 13, 2000
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* The Morgan Stanley Capital International (MSCI) Far East Free ex-Japan Index
is an unmanaged index and includes the reinvestment of all dividends, but does
not reflect the payment of transaction costs, advisory fees or expenses that
are associated with an investment in the Fund. The Index's performance is not
illustrative of the Fund's performance. Indices are not securities in which
investments can be made.
The MSCI Far East Free ex-Japan Index is a market capitalization-weighted
index that captures the largest 60% of the publicly traded securities in each
industry for approximately ten Asian markets (excluding Japan); "free"
indicates that the Index includes only shares available for purchase by
foreign (e.g., U.S.) investors.
+ All individual country returns are in U.S. dollar terms and are based on
country-specific stock markets; for example, the Hong Kong market is measured
by the Hang Seng Index.
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VAN ECK ASIA DYNASTY FUND
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PERFORMANCE RECORD AS OF 6/30/00
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AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE* CHARGE
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A shares--Life (since 3/22/93) 6.86% 7.74%
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5 year 3.89% 5.13%
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1 year (1.84)% 4.18%
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B shares--Life (since 9/1/93) 4.82% 4.82%
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5 year 4.03% 4.34%
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1 year (0.97)% 3.42%
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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.
At certain times in the past, the Adviser waived certain or all expenses on
the Fund. Had the Fund incurred all expenses, investment returns would have
been reduced.
* A shares: maximum sales charge is 5.75%
B shares: maximum contingent deferred sales charge is 5.00%
GEOGRAPHICAL HOLDINGS
AS OF JUNE 30, 2000
[PIE CHART OMITTED]
China 2.6%
Hong Kong 18.0%
India 13.5%
Indonesia 2.5%
Malaysia 7.0%
Cash/Equivalents 3.7%
Singapore 12.6%
South Korea 22.2%
Taiwan 16.8%
Thailand 1.1%
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VAN ECK ASIA DYNASTY FUND
TOP TEN EQUITY HOLDINGS AS OF JUNE 30, 2000*
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SAMSUNG ELECTRONICS
(SOUTH KOREA, 5.9%)
Samsung Electronics manufactures and exports a wide range of consumer and
industrial electronic equipment such as memory chips, semiconductors, personal
computers, telecommunication equipment and televisions.
SATYAM COMPUTER SERVICES LTD.
(INDIA, 3.3%)
Satyam is a software services company specializing in IBM, Windows and Unix
platforms. The company undertakes turnkey execution of projects in India and
abroad, and has pioneered offshore software developments in India using its
high-speed satellite data communication. Satyam also provides Internet access
and services through Satyam Infoway.
R.O.C. TAIWAN FUND
(TAIWAN, 3.2%)
The R.O.C. Fund is a closed-end mutual fund that invests in publicly traded
securities of Taiwanese companies. The Fund is trading at a discount to the
underlying value of its assets.
CHEUNG KONG (HOLDINGS) LTD.
(HONG KONG, 3.1%)
Cheung Kong, through its subsidiaries, develops and invests in real estate. The
company also provides real estate agency and management services and invests in
securities.
UNITED MICROELECTRONICS CORP.
(TAIWAN, 3.1%)
United Microelectronics designs, manufactures and markets integrated circuits
(ICs) and related electronics products. The company's main products are consumer
electronics ICs, memory ICs, personal computer peripheral ICs and communication
ICs.
PACIFIC CENTURY REGIONAL DEVELOPMENT LTD.
(SINGAPORE, 3.0%)
Pacific Century is an investment holding and property development and management
company. Pacific Century Cyberworks is its largest subsidiary and is involved in
the provision of venture capital to Asian Internet and technology start-ups.
HYUNDAI ELECTRONICS INDUSTRIES CO.
(SOUTH KOREA, 2.7%)
Hyundai Electronics manufactures semiconductors such as memory chips and
system-integrated circuits. The company also produces telecommunications systems
and terminals used in the wireless telecommunications industry. Hyundai makes
monitors, car audios, and high-definition television encoders.
SK TELECOM CO. LTD.
(SOUTH KOREA, 2.5%)
SK Telecom is Korea's market leader in mobile communications, with over 10
million subscribers and a market share of 43%.
HOUSING & COMMERCIAL BANK, KOREA
(SOUTH KOREA, 2.2%)
Housing and Commercial Bank, formerly known as Korea Housing Bank, specializes
in mortgage financing but also undertakes a full range of commercial banking
activities. Its restructuring and cost-cutting efforts have started to bear
fruit, and the bank has made vast improvements in "financial transparency."
CHINA TELECOM (HONG KONG) LTD.
(HONG KONG, 2.2%)
China Telecom provides mobile telecommunications in a number of provinces in
China.
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* Portfolio is subject to change.
4
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VAN ECK EMERGING MARKETS VISION FUND
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Dear Fellow Shareholder:
After a year of exceptional performance in 1999, the emerging markets
experienced profit-taking during the first six months of 2000, particularly in
the second quarter. A number of factors contributed to this market adjustment,
including hikes in U.S. interest rates, the possibility of a U.S. economic
slowdown, and the extreme volatility of the U.S. markets. In this environment,
the Van Eck Emerging Markets Vision Fund declined 2.20% since its inception on
April 7 of this year compared with a loss of 10.16% for the Morgan Stanley
Capital International (MSCI) Emerging Markets Free Index* during the same
period.
REVIEW
We continue to have a very positive outlook for the emerging markets overall.
Most emerging markets are experiencing strong economic growth due to a sharp
rebound in domestic demand, sustained low interest rates and subdued inflation.
Demand from developed economies has added to this strength. In terms of the
markets, company earnings remain strong, corporate restructuring continues and
stock valuations are attractive. Therefore, we view the recent market correction
as just that, a correction in the middle of a bull market cycle.
The Fund has been heavily weighted toward growth and technology stocks due to
strong company fundamentals and the continuing global technology revolution. We
believe that these stocks continue to offer the most promising results. Growth
and technology stocks outperformed the general market in 1999 and, over the long
term, we expect this trend to prevail. However, the Fund's bias towards these
stocks hurt performance during the period under review, as investors realigned
their portfolios in favor of cheaper value stocks in the second quarter of 2000.
In terms of country weightings, we have emphasized those markets that are
benefiting from the technology boom, in particular those of Taiwan, Korea and
India. The Fund also has substantial holdings in those countries that have been
in the beginnings of a cyclical recovery, such as Brazil, China (through
China-related Hong Kong companies) and Russia. The Fund has a substantial
allocation to the Mexican market as growth there remains healthy and the
country's economy is converging with that of the U.S.
The best performing ASIAN markets since the Fund's inception were China, which
gained 48%, and Hong Kong+, which declined 7.3% during the second quarter. The
Southeast Asian countries generally suffered from a lack of interest.
The TAIWANESE market (11.7% of the Fund's total net assets at June 30) performed
well over the first quarter, but gave back those gains in the second, when the
market fell 17.1%. Fears of slackening demand for electronics goods as the U.S.
economy slows down appears to have been part of the reason for this. However,
the sector, which is crucial to the country's economy, appears to be performing
very strongly, with many companies showing record sales. In the political arena,
elections at the end of the second quarter saw the incumbent party's candidate
defeated. This should pave the way for some progress in stalled cross-straits
negotiations.
CHINA is responding well to monetary stimulus and exports are benefiting from
strengthening external demand. Consumers appear to be spending again, and the
savage deflation that has been a feature of the Chinese economy may be lifting.
While the Fund has no direct holdings in China, we have exposure through
China-related Hong Kong companies. HONG KONG (5.5% of assets) appears to be
recovering nicely, with office demand showing notable strength. Further economic
strength on the mainland should reinforce this. Our total exposure to Hong Kong
is higher than the benchmark weighting, as we feel strongly that these markets
will do well in the second half of the year.
In MALAYSIA, the economy continues to recover well with low inflation. Interest
rates should remain at very subdued levels, providing valuation support for
equities. On the negative side, most international money managers are skeptical
of corporate reform efforts and remain underweight. The market fell 14.5% in the
second quarter. The Fund has been underweight Malaysia, with a position of 2.0%
at June 30.
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VAN ECK EMERGING MARKETS VISION FUND
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INDIA'S government budget is always closely watched for signs of government
direction and ability to control the large fiscal deficit. By and large, most
observers were disappointed this year; the market sold off heavily toward the
end of the first quarter and turned in a loss of 5.1% in the second quarter.
Unfortunately, many software stocks were especially hard hit. The issue for
software stocks has essentially been a valuation one, as their business outlook
remains very attractive. At June 30, 8.7% of the portfolio was invested in
Indian securities.
The SOUTH KOREAN market (8.3% of assets) remains something of an enigma. For
most of the second quarter, the market performed poorly despite strong
fundamentals and, in particular, good valuations, ending the period down 4.5%.
In June, the market recovered somewhat. Although foreign investors were not
large sellers, local retail investors took money out of the market, forcing
redemptions at the investment trust companies. The motivating factor behind the
move to cash, domestically, appears to be fears of further strains in the
financial sector. In our opinion, the market has sufficiently priced in these
problems and we expect the market to continue to rally.
In LATIN AMERICA, the major markets of MEXICO and BRAZIL (9.4% and 5.0% of
assets, respectively) declined in the second quarter. Mexico finished the
quarter with a loss of 12.5%, largely due to pre-election nerves affecting both
the market and the peso. The presidential elections that took place at the end
of the first half resulted in the end of the 70-year rule of the PRI party, with
a decisive victory for Vincente Fox. The peaceful changeover in power
exemplifies Mexico's increasing political stability, which should be positive
for the Mexican market.
In EASTERN EUROPE, the RUSSIAN market (3.7% of assets) was extremely volatile
and declined 25% in the second quarter, despite a significant improvement in
country fundamentals. Macroeconomic data points to a continuing recovery from
the crisis of 1998. The strong oil price has helped, and improved tax collection
has bolstered the government's finances. Putin's election looks broadly positive
in terms of political stability and economic reform. However, there are fears
that he is attempting to tackle too many vested interests too quickly. A lower
risk premium should benefit the equity market in the second half.
Other European markets put in mixed performances, ranging from +3.6% for ISRAEL
(2.7% of assets) to -16% for GREECE. The Fund has been out of the Greek market
altogether as we were concerned about valuations. We expect Greece to graduate
to "developed" market status sometime toward the end of the year. The TURKISH
market (3.2% of assets) declined 13% on the back of political instability, which
has now been sorted out. Turkey's macroeconomic situation is improving, which
should allow the equity market to restabilize.
SOUTH AFRICA (5.0% of assets) took a hit with its currency, the rand, declining
approximately 4% in the second quarter. Much of this can be attributed to a more
bearish view on the direction of interest rates as well as the political
instability of its neighbor, Zimbabwe. We do not favor South Africa's
commodity-related stocks since there are some signs of lower expectations for
OECD growth.
THE OUTLOOK
We are positive on the outlook for both the emerging market economies and
markets. These economies are clearly moving to a more sustainable growth rate
after the sharp rebound of the last eighteen months. Nonetheless, export growth
remains strong, most countries have current account surpluses, and consumer
strength and investment are growing. The markets may be volatile over the next
few months, particularly until the outlook for the U.S. economy and interest
rates becomes clearer and exogenous factors may still dominate the performance
of emerging markets near term. However, with less uncertainty and less
volatility in the major global markets, we believe the emerging markets will
continue to perform due to overwhelmingly positive domestic and corporate news
in these regions.
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VAN ECK EMERGING MARKETS VISION FUND
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We would like to thank you for your participation in the Van Eck Emerging
Markets Vision Fund, and we look forward to working with you in the future.
[PHOTO OF DAVID A. SEMPLE] [PHOTO OF DAVID M. HULME]
/s/ David A. Semple /s/ David M. Hulme
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DAVID A. SEMPLE DAVID M. HULME
CO-PORTFOLIO MANAGER CO-PORTFOLIO MANAGER
July 14, 2000
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* The Morgan Stanley Capital International (MSCI) Emerging Markets Free Index is
an unmanaged index and includes the reinvestment of all dividends, but does
not reflect the payment of transaction costs, advisory fees or expenses that
are associated with an investment in the Fund. The Index's performance is not
illustrative of the Fund's performance. Indices are not securities in which
investments can be made.
The MSCI Emerging Markets Free Index is a market capitalization-weighted index
that captures 60% of the publicly traded equities in each industry for
approximately 25 emerging markets. "Free" indicates that the Index includes
only those securities available to foreign (e.g., U.S.) investors.
The Index's return, in this instance, is calculated as of March 31, 2000 as
its return with gross dividends reinvested is not available as of April 7 (the
Fund's inception date).
+ All individual country returns are in U.S. dollar terms and are based on
country-specific stock markets; for example, the Hong Kong market is measured
by the Hang Seng Index.
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PERFORMANCE RECORD AS OF 6/30/00
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AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE* CHARGE
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A shares--Life (since 4/07/00) (7.82)% (2.20)%
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B shares--Life (since 4/07/00) (7.18)% (2.30)%
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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 Adviser 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 is 5.75%
B shares: maximum contingent deferred sales charge is 5.00%
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VAN ECK EMERGING MARKETS VISION FUND
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GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 2000
[PIE CHART OMITTED]
Brazil 5.0%
Hong Kong 5.5%
India 8.7%
Indonesia 0.7%
Israel 2.7%
Malaysia 2.0%
Cash/Equivalents 27.8%
Mexico 9.4%
Russia 3.7%
Singapore 6.3%
South Africa 5.0%
South Korea 8.3%
Taiwan 11.7%
Turkey 3.2%
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VAN ECK EMERGING MARKETS VISION FUND
TOP TEN EQUITY HOLDINGS AS OF JUNE 30, 2000*
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TELEFONOS DE MEXICO S.A. DE C.V. (TELMEX)
(MEXICO, 3.0%)
Telmex is the dominant telecom carrier in Mexico with over 12 million fixed line
customers and over seven million cellular subscribers. Recent initiatives have
included a focus on profitability, overseas expansion into Central and South
America and Internet and data services. Telmex trades at a substantial discount
to its Western peers.
SILICONWARE PRECISION INDUSTRIES CO.
(TAIWAN, 2.7%)
Siliconware Precision is an integrated circuit (IC) packager and assembler. The
company's clients include Broadcom, Hitachi and Lucent Technologies.
DIMENSION DATA HOLDINGS LTD.
(SOUTH AFRICA, 2.6%)
Dimension Data is an investment holding company operating in the information
technology industry worldwide. The group focuses on communications networking
infrastructures and electronic commerce software applications.
SAMSUNG ELECTRONICS
(SOUTH KOREA, 2.6%)
Samsung Electronics manufactures and exports a wide range of consumer and
industrial electronic equipment such as memory chips, semiconductors, personal
computers, telecommunication equipment and televisions.
ACER, INC.
(TAIWAN, 2.6%)
Acer manufactures desktop and portable personal computers, motherboards,
multi-user systems, servers, color monitors, laser printers, keyboards, fax
machines, application-specific integrated circuits (ASICs), multi-media
computers and packaged software.
WINBOND ELECTRONICS CORP.
(TAIWAN, 2.3%)
Winbond Electronics designs, manufactures and sells integrated circuits (IC) and
related products. The company's main product is SRAM (Static Random Access
Memory). Winbond sells its products in Taiwan, the United States and Hong Kong.
DAUM COMMUNICATIONS CORP.
(SOUTH KOREA, 2.3%)
Daum Communications provides Internet portal services such as news, e-mail,
information, and shopping. The company also offers an online guide to Web
navigation and Web-based communication services such as Internet phone and
messenger. Daum Communication develops and markets Internet broadcasting and
system integration solutions.
INDIA FUND, INC.
(INDIA, 2.3%)
India Fund is a closed-end mutual fund that seeks long-term capital
appreciation. The fund invests primarily in equity securities of Indian
companies.
TELE NORTE LESTE PARTICIPACOES S.A. (TELEMAR)
(BRAZIL, 2.3%)
Telemar provides local telecommunications services to the Amazon (Northern) and
Eastern regions of Brazil.
PACIFIC CENTURY REGIONAL DEVELOPMENT LTD.
(SINGAPORE, 2.2%)
Pacific Century is an investment holding and property development and management
company. Pacific Century Cyberworks is its largest subsidiary and is involved in
the provision of venture capital to Asian Internet and technology start-ups.
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* Portfolio is subject to change.
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VAN ECK GLOBAL HARD ASSETS FUND
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Dear Fellow Shareholder:
We are pleased to report that the Van Eck Global Hard Assets Fund had a total
return of 2.58% for the six months ended June 30, 2000, compared with a 0.42%
decline for the S&P 500 Index.* During this period, hard assets had mixed
results, with exceptional returns on most energy securities and healthy
performance in the real estate sector, but disappointing results in most other
hard asset sectors. Large allocations to the energy and real estate sectors and
reductions in forest products and industrial metals holdings proved beneficial
to Fund performance during the period.
REVIEW
In the first half of the year, ENERGY commodities and stocks were the clear
winners, particularly those that were natural gas related. Natural gas prices
soared, up 92% during the period. Natural gas-oriented exploration and
production companies, having languished in the first quarter, suddenly exploded
higher in April and May as it became clear that the natural gas supply and
demand equation was turning dramatically positive. A confluence of events was
responsible for this, including favorable weather during April and May (30%
warmer-than-normal weather led to increased natural gas usage for air
conditioning and electricity generation), declining supplies, and a
longer-than-expected maintenance period for nuclear generators, resulting in
greater demand for natural gas. These factors led to a significant inventory
decline that continues to worsen.
The price of crude oil climbed over 35% during the six-month period as OPEC
agreed to limit production, inventories were at historical lows, and oil
producers were reluctant to increase production. Exploration and production
stocks were up approximately 52% and oil services stocks were up on average
almost 40% over the last six months.
During the first half of the year, we increased the Fund's allocation to energy
shares to nearly the limit of 50% of Fund assets, up from 39% at the start of
the year, a move that helped performance. We continued to emphasize exploration
and production companies and held a position in energy commodities, both of
which further boosted returns.
REAL ESTATE securities substantially outperformed the general market in the
first half of the year, providing returns of over 13%. Strong fundamentals, very
attractive valuations and 7% yields all contributed to the sector's strong
performance. However, the strongest influence was an investor shift in focus
from growth stocks to defensive value stocks in a highly volatile market. The
top performing sectors among real estate securities in the first half were hotel
and apartment stocks; office properties also performed well. Our emphasis on
these sectors and our decision to increase the Fund's real estate allocation
from about 17% in the beginning of the year to 23.1% by the end of June both
proved beneficial.
The FOREST PRODUCTS AND PAPER sector was down sharply overall in the first half
of the year, in spite of rising pulp prices. Lumber prices fell substantially
lower and forest product stocks declined over 38% for the period despite strong
fundamentals, promising supply/demand pictures and healthy corporate
restructuring activity. Rather than focusing on these strengths, the market
rejected cyclical stocks as central banks worldwide continued to raise interest
rates and investors began to worry about a possible global economic slowdown. We
reduced the Fund's position in forest products and paper stocks from 25% in
January to the current 10.3% as market direction became clear in the second
quarter.
Being cyclical in nature, INDUSTRIAL METALS shares experienced much of the same
negative bias as the forest and paper products sector. As a result, they were
down dramatically in the first half of the year, despite only a slight decline
in related commodity prices and low inventories. We reduced the Fund's
industrial metals weighting from over 10% at the start of the year to 6.2% by
June 30.
PRECIOUS METALS have had mixed results so far this year, with a slight decline
in the price of gold, but record highs for platinum prices and strength in
palladium prices. Precious metals shares, however, had disappointing
performance. We have maintained a small position of about 9% in this sector,
primarily in those metals shares that have an industrial demand base, such as
palladium.
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VAN ECK GLOBAL HARD ASSETS FUND
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THE OUTLOOK
Looking forward, fundamentals for most hard asset sectors remain strong. Most
commodity companies have strong earnings momentum. This momentum will probably
slow in coming quarters, but we expect earnings to continue to surprise on the
upside.
Forecasts of a slowdown in global economic growth, we believe, have been
exaggerated. The accelerated growth rates of the last two years may not be
repeated, but we do not believe we are heading into a global recession. Thus, in
general, hard asset securities should perform well.
We plan to continue to favor energy companies in the near future, which are
expected to post second quarter earnings that are up sharply and which are
substantially higher than those of the general market or even those of the
technology sector. A reversion back to colder winters this year (with the end of
La Ni-a), increasing demand for natural gas-fired electricity and declining
supplies should support higher natural gas prices. On the oil side, current high
prices of $30 per barrel for crude may not be maintained, but we expect prices
to be supported in the mid-$20 range due primarily to a lack of excess capacity
as well as a dearth of reinvestment in the industry. We will continue to focus
on those energy companies that will benefit the most from these elevated prices.
We expect real estate securities to continue to provide competitive returns in
the second half of the year, driven by healthy fundamentals, attractive
dividends and continued rotation into the sector as a defensive play in an
uncertain market.
We would like to thank you for your participation in the Van Eck Global Hard
Assets Fund, and we look forward to helping you meet your investment goals in
the future.
[PHOTO OF DEREK S. VAN ECK]
/s/ Derek S. Van Eck
--------------------
DEREK S. VAN ECK
PORTFOLIO MANAGER
July 12, 2000
----------
* The Standard & Poor's 500 Index is an unmanaged index and includes the
reinvestment of all dividends, but does not reflect the payment of transaction
costs, advisory fees or expenses that are associated with an investment in the
Fund. The Index's performance is not illustrative of the Fund's performance.
Indices are not securities in which investments can be made.
The S&P 500 Index consists of 500 widely held common stocks, covering four
broad sectors (industrials, utilities, financial and transportation). It is a
market value-weighted index (stock price times shares outstanding), with each
stock affecting the index in proportion to its market value. Construction of
the S&P 500 Index proceeds from industry group to the whole. Since some
industries are characterized by companies of relatively small stock
capitalization, the Index is not comprised of the 500 largest companies on the
New York Stock Exchange. This Index, calculated by Standard & Poor's, is a
total return index with dividends reinvested.
11
<PAGE>
VAN ECK GLOBAL HARD ASSETS FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/00
--------------------------------------------------------------------------------
AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE* CHARGE
--------------------------------------------------------------------------------
A shares--Life (since 11/2/94) 7.62% 8.75%
--------------------------------------------------------------------------------
5 year 6.72% 8.00%
--------------------------------------------------------------------------------
1 year (2.37)% 3.60%
--------------------------------------------------------------------------------
B shares--Life (since 4/24/96) 2.62% 3.05%
--------------------------------------------------------------------------------
1 year (2.16)% 2.84%
--------------------------------------------------------------------------------
C shares--Life (since 11/2/94) 8.43% 8.43%
--------------------------------------------------------------------------------
5 year 7.69% 7.69%
--------------------------------------------------------------------------------
1 year 1.92% 2.92%
--------------------------------------------------------------------------------
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 Adviser 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 is 5.75%
B shares: maximum contingent deferred sales charge is 5.00%
C shares: 1.00% redemption charge, first year
SECTOR WEIGHTINGS
AS OF JUNE 30, 2000
[PIE CHART OMITTED]
Energy 47.9%
Cash/Equivalents 2.4%
Other 0.9%
Industrial Metals 6.2%
Precious Metals 9.2%
Forest Products
and Papers 10.3%
Real Estate 23.1%
GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 2000
[PIE CHART OMITTED]
United Kingdom 1.5%
Australia 5.1%
Canada 22.0%
Finland 1.0%
Cash/Equivalents 2.4%
United States 58.6%
Other 2.0%
Russia 6.2%
South Africa 1.2%
12
<PAGE>
VAN ECK GLOBAL HARD ASSETS FUND
REPRESENTATIVE EQUITY HOLDINGS AS OF JUNE 30, 2000*
--------------------------------------------------------------------------------
ALCOA, INC.
(U.S., 2.6%)
Alcoa is an integrated aluminum company. The company produces aluminum and
alumina. It is involved in mining, refining, smelting, fabricating and
recycling. Alcoa serves customers worldwide in the packaging, automotive,
aerospace, construction and other markets with a variety of fabricated and
finished products.
BOSTON PROPERTIES, INC.
(U.S., 2.5%)
Boston Properties develops, redevelops, acquires, manages, operates and leases
office, industrial and hotel properties. The company has a significant presence
in the Boston, Washington, D.C., San Francisco and midtown Manhattan real estate
markets.
TALISMAN ENERGY, INC.
(CANADA, 2.5%)
Talisman Energy is an independent oil and gas producer. The company has
operations in Canada, the North Sea, Indonesia, and Sudan. Talisman is also
conducting exploration in Algeria and Trinidad.
GLOBAL INDUSTRIES LTD.
(U.S., 2.4%)
Global Industries provides oil field construction services. These services
include pipeline construction, platform installation and removal, diving
services, and construction support. The company provides its services to the
offshore oil and gas industry in the U.S. Gulf of Mexico and select
international areas.
ANADARKO PETROLEUM CORP.
(U.S., 2.2%)
Anadarko is an independent oil and gas exploration and production company. The
company explores for oil in Kansas, Oklahoma and Texas, as well as offshore in
the Gulf of Mexico and Alaska. Anadarko also owns and operates gas-gathering
systems in its U.S. core producing areas. It also develops crude oil reserves in
Algeria.
ENSCO INTERNATIONAL, INC.
(U.S., 2.1%)
Ensco, an international offshore contract drilling company, provides marine
transportation services in the Gulf of Mexico. The company serves the oil and
gas industry.
STILLWATER MINING CO.
(U.S., 2.1%)
Stillwater Mining develops, processes, and refines platinum, palladium and
associated metals from the Stillwater Mine in Montana. Stillwater is the only
primary producer of platinum outside of South Africa. The company is currently
developing the East Boulder project, a new underground mine on the Stillwater
property that will boost metals production substantially starting in 2001.
NABORS INDUSTRIES, INC.
(U.S., 2.0%)
Nabors Industries is a land drilling contractor, and also performs well
servicing and workovers. The company conducts oil, gas, and geothermal land
drilling operations in the continental United States, Alaska and Canada, as well
as in South and Central America and the Middle East. Nabors' well-site services
include oilfield management, well logging, and other support services.
GRANT PRIDECO, INC.
(U.S., 1.9%)
Grant Prideco manufactures, sells, and services engineered tubular products used
in oil exploration and development operations. Grant Prideco conducts operations
in countries located worldwide.
APACHE CORP.
(U.S., 1.9%)
Apache explores for and produces natural gas, crude oil and natural gas liquids.
The company has operations in North America, Egypt, western Australia, Poland,
China and Cote d'Ivoire.
----------
* Portfolio is subject to change.
13
<PAGE>
VAN ECK GLOBAL LEADERS FUND
--------------------------------------------------------------------------------
Dear Fellow Shareholder:
After a very strong 1999, tremendous volatility hit the global equity markets in
the first half of 2000. This volatility was driven primarily by profit-taking as
well as a shift in investor focus from growth stocks toward more defensive value
stocks in the second quarter. The Global Leaders Fund had a total return of
-5.30% for the six months ended June 30, 2000, while the Morgan Stanley Capital
International (MSCI) World Index* declined 2.56% during the same period. The
Fund remains almost fully invested in growth stocks (which outperformed
significantly throughout 1999 and the first quarter of 2000) and we believe the
long-term outlook for these stocks is very positive despite recent short-term
disruptions.
REVIEW
One of the most noticeable recent trends has been the increased correlation
between growth stocks in the U.S. and growth stocks in international markets.
That is, international growth stocks have moved in tandem with the decline of
the Nasdaq**, the bellwether index for growth and technology stocks in the U.S.
A number of events precipitated the market volatility experienced in the first
half of 2000. "Tax selling" in advance of the April 15 deadline in the U.S. put
pressure on growth stocks, which had experienced strong returns and, therefore,
were the primary victims of this selling. In addition, interest rates have been
rising or are expected to rise in the U.S., Europe and Japan as the respective
central banks attempt to manage economic growth and moderate inflationary
pressures. More specific to the technology and telecommunications sectors (which
make up a large portion of both the Nasdaq and your Fund), a number of events
had a negative effect. Perhaps the most significant was the joint statement by
President Clinton and Britain's Prime Minister Blair in early March concerning
the rightful ownership of genetic research that was taking place within
biotechnology companies. Their statement suggesting that some of this
information belonged in the public domain sent a chill through the market,
causing investors to reconsider their valuation assumptions of the previously
high-flying biotech stocks. This was soon followed by an announcement of the
culmination of the anti-trust suit being brought against Microsoft (not a Fund
holding as of June 30), which concluded that the company had violated anti-trust
laws and was subject to legal action, including the possible breakup of the
company. Further along these lines, the proposed merger between AOL (1.0% of the
Fund's total net assets) and Time Warner (0.7% of assets) has been facing
increasing scrutiny from government agencies. Taken together, these high profile
events created a concern among market participants that renewed government
activism could possibly interfere with the rapid development occurring in
technology, telecommunications and biotech.
The performance of the Global Leaders Fund, which is almost entirely invested in
growth stocks, has moved with the performance of growth stocks in general. In
the first part of the year, we had been taking profits in many of our
better-performing stocks and as events began to unfold in March, we accelerated
our efforts to move the portfolio to a more defensive position. For example, we
trimmed or sold some of the Fund's utilities holdings in favor of more
conservative positions since increasing costs associated with licenses for
next-generation cellular telephones is leading to reduced earnings growth
potential for telecommunications companies. We have maintained a heavy Fund
allocation of over 30% to the technology sector because we remain positive as
strong demand for Internet capabilities supports infrastructure (such as PC and
semiconductor chip) companies. We added to the portfolio's financial services
holdings during the first half of the year since the outlook for the sector is
increasingly attractive given industry consolidation and the peaking of the
interest rate cycle, which is near at hand. Financials have been mildly positive
for the first half, and this was beneficial to the Fund.
In terms of regional weightings, we have remained overweight in Continental
Europe (25.8% of assets) as merger and acquisition activity and corporate
restructuring continues. This activity provides additional support to earnings
that are already benefiting from the
14
<PAGE>
VAN ECK GLOBAL LEADERS FUND
--------------------------------------------------------------------------------
economic recovery taking place. We increased the Fund's Asian position (5.7% of
assets, excluding Japan) as economic recovery continues throughout the region
and these countries continue to benefit from the growing demand for electronic
goods. We also increased the North American position (41.9% of assets) slightly
since economic growth here is moderating to about 3.5% and it appears that we
are nearing an interest rate peak. All of these positions helped performance in
the first quarter, but had a negative impact in the second. We reduced the
Japanese position (18.9% of assets) since economic recovery there is tenuous at
best and an increase in the number of bankruptcies is raising market risk.
THE OUTLOOK
As we stated above, we believe the last few months represent only short-term
disruptions in what is a very favorable long-term environment for
growth-oriented stocks. We anticipate further increases in both our European and
Asian weightings. Europe is expected to show economic growth in the 3.5%-4%
range and earnings estimates are experiencing upward revisions. Asia,
particularly China, should continue to benefit from strong worldwide economic
growth and the demand for new technologies. We plan to reduce our Japanese
exposure amid uncertainties there. Within sectors, technology will remain our
largest exposure with a continued emphasis on Internet infrastructure
investments. Financials will be further emphasized given the prospects for
consolidation in the industry in Europe and benefits from a peaking of interest
rates for this cycle.
We would like to thank you for your participation in the Van Eck Global Leaders
Fund, and we look forward to helping you meet your investment needs in the
future.
[PHOTO OF ANNE M. TATLOCK] [PHOTO OF SHEILA HARTNETT-DEVLIN]
/S/ Anne M. Tatlock /S/ Sheila Hartnett-Devlin
------------------- --------------------------
ANNE M. TATLOCK SHEILA HARTNETT-DEVLIN
GLOBAL STRATEGIST CO-PORTFOLIO MANAGER
[PHOTO OF WILLIAM Y. YUN] [PHOTO OF JOSHUA A. ROSENTHAL]
/s/ WILLIAM Y. YUN /s/ JOSHUA A. ROSENTHAL
-------------------- -----------------------
WILLIAM Y. YUN JOSHUA A. ROSENTHAL
CO-PORTFOLIO MANAGER CO-PORTFOLIO MANAGER
July 27, 2000
15
<PAGE>
VAN ECK GLOBAL LEADERS FUND
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MCSI) World Stock Index and the
Nasdaq Composite Index are unmanaged indices and include the reinvestment of
all dividends, but do not reflect the payment of transaction costs, advisory
fees or expenses that are associated with an investment in the Fund. The
Indices' performance is not illustrative of the Fund's performance. Indices
are not securities in which investments can be made.
* The MSCI World Stock Index is a market capitalization-weighted benchmark that
tracks the performance of approximately 25 world stock markets. The Index is
based on the reinvestment of dividends less any withholding taxes on
foreigners who do not benefit from a double taxation treaty ("net dividends").
The Index aims for 60% of the total market capitalization for each market that
is represented in the Index. The companies included in the Index replicate the
industry composition of each global market. The chosen list of stocks includes
a representative sampling of large, medium and small capitalization companies
and investment funds are not eligible. Companies with restricted float due to
dominant shareholders or cross ownership are avoided.
**The Nasdaq Composite Index is a broad-based capitalization- weighted index of
all Nasdaq national market and small-cap stocks.
--------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/00
--------------------------------------------------------------------------------
AVERAGE ANNUAL AFTER MAXIMUM BEFORE SALES
TOTAL RETURN SALES CHARGE* CHARGE
--------------------------------------------------------------------------------
A shares--Life (since 12/20/93) 11.56% 12.57%
--------------------------------------------------------------------------------
5 year 14.13% 15.50%
--------------------------------------------------------------------------------
1 year 15.38% 22.38%
--------------------------------------------------------------------------------
B shares--Life (since 12/20/93) 11.88% 11.88%
--------------------------------------------------------------------------------
5 year 14.60% 14.84%
--------------------------------------------------------------------------------
1 year 16.67% 21.67%
--------------------------------------------------------------------------------
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 adviser 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 is 5.75%
B shares: maximum contingent deferred sales charge is 5.00%
GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 2000
[PIE CHART OMITTED]
France 7.6%
Hong Kong 3.1%
Italy 3.4%
Japan 18.9%
Netherlands 3.7%
Switzerland 3.8%
United Kingdom 5.3%
United States 41.9%
Other 11.8%
Cash/Equivalents 0.5%
16
<PAGE>
VAN ECK GLOBAL LEADERS FUND
REPRESENTATIVE HOLDINGS AS OF JUNE 30, 2000*
--------------------------------------------------------------------------------
CISCO SYSTEMS, INC.
(U.S., 2.1%)
Cisco Systems is recognized globally as the leading supplier of products that
help to build the Internet and corporate intranets. Cisco sells its products in
over 110 countries, with a significant proportion of its sales to Internet
business customers. Selling to the dot-com companies of the world, Cisco
represents a low risk way to invest in the Internet's continued growth.
CHINA TELECOM (HONG KONG) LTD.
(HONG KONG, 1.4%)
China Telecom is mainland China's leading cellular operator. Rapid subscriber
growth and the acquisition of additional provinces should provide robust revenue
and profit growth for the company.
PIONEER ELECTRIC CORP.
(JAPAN, 1.0%)
Pioneer is a major manufacturer of consumer electronics, including high-end
audio equipment and car audio. Newer products include DVD players and DVD ROMs.
Profit margins are stabilizing and rising among the newer products.
ST. MICROELECTRONICS N.V.
(NETHERLANDS, 0.9%)
St. Microelectronics is a European-based technology company that designs,
develops, manufactures and markets semiconductor integrated circuits and
discrete devices. The company's products are used in the telecommunications,
consumer electronics, automotive, computer and industrial sectors. The company
is well-positioned globally to benefit from the growth areas of the Internet and
mobile technology.
CELLTECH GROUP PLC
(UNITED KINGDOM, 0.8%)
Celltech is the largest UK biotechnology company, which specializes in
monoclonial antibodies. The company has a strong pipeline and high growth
earnings. The near- and mid-term outlook is very positive, with a novel
anesthetic and monoclonial antibody bond treatment for leukemia, which is in the
late stages of development and is expected to be available later this year.
TELECOMUNICACOES BRASILEIRAS S.A. (TELEBRAS)
(BRAZIL, 0.5%)
Telebras is a basket of all of the Brazilian telephone companies with dominant
market share. This position is a solid play on strong projected GDP growth in
Brazil.
----------
* Portfolio is subject to change.
17
<PAGE>
VAN ECK INTERNATIONAL INVESTORS GOLD FUND
--------------------------------------------------------------------------------
Dear Fellow Shareholder:
Volatility in the stock markets was accompanied by volatile gold prices during
the first half of the year 2000. After ending 1999 at $288.50 an ounce, the gold
price climbed to a February high of $316.20 an ounce, then slowly declined to a
May low of $270.50 an ounce (9.2% above its September 1999 low). It rose again,
closing on June 30 at $290.10 an ounce, up 0.6% for the first half of the year
and up 4.3% during the second quarter. The Dow Jones Industrial Average*
declined 8.44% during the first half of the year. The better performance of gold
put the ratio of the Dow to the gold price at 36.0 on June 30, compared to 39.9
at the end of 1999 and 44.2 at the peak in July 1999.
Gold-mining shares finished the first half with a decline of 13.02% as measured
by the Financial Times Gold Mines Index.** They behaved poorly until May,
reflecting in part the strength of the dollar. Then they turned up as the dollar
weakened. Your Fund had a total return of 2.88% during the second quarter but
was down 12.56% during the first half of the year.
GOLD-MINING SHARES
Merger and acquisition activity is again at center stage for gold miners.
Harmony Gold (2.8% of the Fund's total net assets at midyear) successfully
acquired fellow South African producer Randfontein Estates (0% of assets). With
this action, Harmony has opportunistically acquired some mismanaged properties
that should be returned to profitability. Harmony also exhibited its intentions
to expand offshore with the timely purchase of a minority stake in Gold Fields
of Australia (0% of assets).
In the U.S., Newmont Mining (7.7% of assets) made a friendly offer for Battle
Mountain Gold (0.8% of assets), which is now subject to a vote by Battle's
shareholders. The centerpiece of the transaction is the Phoenix Project in
Nevada. Phoenix is a low-grade deposit that would have been difficult for Battle
to finance at the current low gold price. Integrating the Phoenix processing,
procurement and capital items with Newmont's existing Nevada infrastructure will
allow the project to proceed with acceptable returns to shareholders. In addi
tion to Phoenix, Newmont will also acquire producing properties in Canada,
Australia and Bolivia.
Plans for possibly the most significant merger ever in the gold-mining industry
came on June 13 when Canadian royalty company Franco Nevada (0.2% of assets) and
South African miner Gold Fields Limited (6.2% of assets) announced a friendly
merger that will combine the management and assets of both companies. The
resulting company will have no debt and more cash on hand than any of its peers.
Initially, it will be based in Toronto and plans to quickly gain listings on the
New York and London stock exchanges. One of the cornerstones of this arrangement
is that the management of both companies is vehemently against producer hedging
because of the negative impact this activity has had on the price of bullion.
They have announced that within one year of the completion of the merger, they
will seek to acquire another large company or properties outside of South Africa
in order to diversify and reduce the South African risk profile. The merger is
now subject to approval by the South African authorities, then a vote by Gold
Fields shareholders.
Finally, at the close of the quarter on June 30, Barrick Gold (7.9% of assets)
made a cash bid for Canadian explorer Pangea Goldfields (0% of assets). Barrick
is currently developing the Bulyanhulu underground mine in Tanzania. Pangea has
extensive land holdings and advanced exploration properties in Tanzania that can
be developed in tandem with Bulyanhulu. This acquisition solidifies Barrick's
position as the dominant gold miner in Tanzania, which is fast becoming one of
the leading African gold-producing nations.
THE OUTLOOK
The U.S. economy completed its ninth full year of steady expansion during the
first quarter of the year, the longest in its history. Boosted by a consumer
spending increase at an annual rate of 7.7%, the economy grew at an annual rate
of 5.5% during this quarter. The Federal Reserve continued to support growth by
monetizing debt and the monetary base at a faster rate than economic growth. The
banks expanded credit accordingly. Commercial and industrial loans grew at
double-digit annualized rates during the first half of the year.
18
<PAGE>
VAN ECK INTERNATIONAL INVESTORS GOLD FUND
--------------------------------------------------------------------------------
The Federal Reserve Bank has been raising interest rates for a year in order to
achieve a slowdown to avoid accelerating inflation. Signs are appearing that it
may be achieving its objective. The question is whether it will end in a soft or
hard landing.
A soft landing could mean a decline in the real GDP growth rate to approximately
3.5% a year. The current growth rate of corporate profits could slow down, and
the Dow Jones Industrial Average would consolidate. In our opinion, the price of
gold could continue to outperform the Dow, as it did in the first six months of
the year. Historically, despite price fluctuations, gold has consistently
reverted to its real purchasing power parity with other commodities. Using the
average purchasing power parity with the basket of goods represented by the
Consumer Price Index since 1913, the price of gold would have to be
approximately $342 an ounce today. The gold-mining industry needs an estimated
price of at least $370 to $400 an ounce to find new reserves in order to
replenish existing low cost ore bodies as they are mined out, according to
leading mine authorities.
A hard landing scenario could mean an eventual recession. U.S. consumer spending
could pick up later this year and next. The current annual growth rates of Bank
of Japan assets exceeding 15% and of European Central Bank assets averaging over
10% could stimulate economic growth more than expected and add to the
acceleration of global inflationary pressure. This could prompt a tighter U.S.
monetary policy. Corporate profits would be squeezed as wage pressures and
commodity prices accelerated. The dollar would drop sharply in tandem with the
U.S. stock market as foreign investors repatriated their funds. Conditions of
rising inflation, peak U.S. balance of payments deficits, a falling dollar and
U.S. stock market are a reminder of 1987. The investment demand for gold that
year rose; the gold price climbed 28% from $390 an ounce to $500 an ounce, and
gold-mining share prices soared some 80% as confidence in central bank economic
management was shaken.
The recent unprecedented economic growth, according to many economists, has been
accompanied by classical business cycle unsustainable economic imbalances and
structural deficiencies, and dangerous speculative credit conditions.
1. The foreign exchange value of the dollar may be unsustainably high. The U.S.
current account deficit widened 6.3% from the final quarter of 1999 to a
record $102.3 billion in the first quarter of this year. It was $66.6 billion
in the first quarter of 1999, and currently is running at a record 4.3% of
GDP. The IMF projects continued record deficits at least until 2001. Since
the mid-1980s, the U.S. has gone from being a net creditor nation of about
$300 billion to being a net debtor likely to exceed $2 trillion this year.
The macroeconomic repercussions of foreign borrowing rising in parallel with
the trade deficit include lower inflation and interest rates and higher stock
prices than would otherwise have prevailed. It is estimated that
approximately 80% of foreign borrowing goes to consumption. The question for
U.S. financial markets is how long high and possibly excessive U.S.
consumption and foreign investments in the U.S. will last.
2. The Bank for International Settlements warned last month that present stock
market valuations were unlikely to be sustainable in the long term. The
historical price/earnings ratio of the S&P 500 Index from 1871 to date was a
mean of 14.4 and currently, it is approximately 29. The market value of
listed equities as a percent of GDP has risen from a 75-year average of
approximately 60% to a current record level of about 170%. Surveys indicate
that most speculative and investor expectations are still for double-digit
annual stock market gains over the next decade, well above historic rates.
Overconfidence usually breeds risky borrowing.
3. The U.S. debt build-up may be reaching unsustainable levels. Household and
business debts have been growing faster than income since World War II.
Non-federal debt climbed from approximately 110% of GDP at the end of 1968 to
over 230% of GDP currently. From 1991 through 1999, net U.S. commercial
banking, money market mutual funds and foreign outstanding credit market debt
rose 9.2% annually from $3.7 trillion in 1991 to $7.5 trillion in 1999. This
has contributed to U.S. economic prosperity
19
<PAGE>
VAN ECK INTERNATIONAL INVESTORS GOLD FUND
--------------------------------------------------------------------------------
in the short term but also to overheating imbalances and speculation. The
risk is that the growth of debt service charges cannot exceed the growth of
income forever.
The longer the boom lasts, the more the imbalances and speculation build up, and
the more difficult becomes their correction, as Japan has proven after the boom
of the 1980s.
INVESTMENT POLICY
For those investors who are becoming more cautious in their investment outlook,
we continue to suggest that they diversify a portion of their portfolio into
gold-mining shares. In our opinion, this investment sector is significantly
undervalued. Historically, the price of gold often has been negatively
correlated to the general stock market as investors have sought a default-free
and currency risk-free monetary asset to preserve their wealth from serious
stock market "reversions to the mean," credit contractions and negative real
short-term interest rates. With central banks permitting up to 3% inflation
rates to maintain growth, currencies become less reliable "stores of value."
More and more investors may consequently seek gold as a preferred long-term
monetary cash asset.
We appreciate your participation in the Van Eck International Investors Gold
Fund and look forward to helping you meet your investment needs in the future.
[PHOTO OF JOHN C. VAN ECK] [PHOTO OF JOSEPH M. FOSTER]
/s/ JOHN C. VAN ECK /s/ JOSEPH M. FOSTER
------------------- --------------------
JOHN C. VAN ECK JOSEPH M. FOSTER
CHAIRMAN MANAGEMENT TEAM MEMBER
July 19, 2000
The Financial Times Gold Mines Index and the Dow Jones Industrial Average are
unmanaged indices and include the reinvestment of all dividends, but do not
reflect the payment of transaction costs, advisory fees or expenses that are
associated with an investment in the Fund. The Indices' performance is not
illustrative of the Fund's performance. Indices are not securities in which
investments can be made.
* The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip
stocks that are generally the leaders in their industry. It has been a widely
followed indicator of the stock market since October 1, 1928.
** The Financial Times Gold Mines Index is a market capitalization-weighted
global index of gold-mining shares.
--------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/00
--------------------------------------------------------------------------------
AFTER MAXIMUM
AVERAGE ANNUAL SALES CHARGE BEFORE SALES
TOTAL RETURN OF 5.75% CHARGE
--------------------------------------------------------------------------------
Life (since 2/10/56) 8.13% 8.27%
--------------------------------------------------------------------------------
20 year (0.06)% 0.24%
--------------------------------------------------------------------------------
15 year (2.15)% (1.76)%
--------------------------------------------------------------------------------
10 year (7.10)% (6.55)%
--------------------------------------------------------------------------------
5 year (17.54)% (16.55)%
--------------------------------------------------------------------------------
1 year (21.48)% (16.67)%
--------------------------------------------------------------------------------
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.
20
<PAGE>
VAN ECK INTERNATIONAL INVESTORS GOLD FUND
--------------------------------------------------------------------------------
GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 2000
[PIE CHART OMITTED]
Australia 8.3%
Canada 25.0%
Cash/Equivalents 27.5%
France 0.9%
Netherlands 0.4%
South Africa 15.1%
United Kingdom 0.6%
United States 22.2%
21
<PAGE>
VAN ECK NATURAL RESOURCES FUND
--------------------------------------------------------------------------------
Dear Fellow Shareholder:
As we reported to you in the first quarter report, the Van Eck Gold/Resources
Fund underwent a name change on May 1, 2000. The Fund was renamed the Van Eck
Natural Resources Fund. The objective of the Fund, as stated in the prospectus,
remains unchanged. The Fund continues to invest in gold-related securities as
well as securities of other strategic or precious metals, minerals, oil, natural
gas and coal. However, the majority of the Fund's assets have been diversified
into stocks of companies that produce these other natural resources whose demand
should benefit from global economic expansion. We are pleased to report that
this reallocation of the Fund, which was completed by May 1, has already been
beneficial as certain natural resources sectors continue to outperform gold.
There was extreme divergence in performance among the natural resource sectors
in the first six months of 2000. Energy stocks had exceptional performance as
crude oil and natural gas prices reached multi-year highs. In contrast,
non-energy sectors suffered from several interest rate hikes by the Federal
Reserve, which dampened expectations for continued growth in the world economy.
These stocks, being cyclical in nature, underperformed despite strong commodity
fundamentals (low inventories, limited prospects for additional supply, and
continued, if moderating, global growth).
The Fund was invested primarily in gold shares (and performed in line with those
shares) until May. With the Fund's refocusing in May, we moved almost half of
the portfolio's assets into energy stocks given very strong fundamentals in the
sector and expected outperformance. We further diversified the Fund into the
other natural resource sectors as well. At June 30, the Fund was 45.7% in energy
shares, 29.8% in precious metals stocks, 14.7% in industrial metals shares and
8.9% in forest products and paper shares, which reflects the Fund's approximate
weightings since its refocusing in May. The Natural Resources Fund had a total
return of -14.29% for the six months ended June 30, 2000. As we enter the second
half of the year, we hope (and expect) to be able to improve Fund performance
due to our increased flexibility and diversification.
REVIEW
The ENERGY sector was the clear winner among natural resource sectors in the
first half of 2000. Crude oil rose 35.4%, ending the period at $32.50 per
barrel. The stage was set for this increase in February 1999 on the back of the
Asian financial crisis, when crude prices bottomed near $13 per barrel. At that
time, both OPEC and non-OPEC producers were slashing production to minimize
their losses. Even at today's elevated prices, oil producers are reluctant to
increase production for several reasons: 1) consolidation within the industry
has companies more focused on cutting costs and growing returns on equity rather
than expanding new reserves; 2) due to the hardships endured in the last
downturn, most companies are using prices below $20 per barrel to conservatively
evaluate new projects; and 3) outside of Saudi Arabia, OPEC has limited capacity
to increase production.
Natural gas prices finished the first half of 2000 up an incredible 92.1%.
Several factors have led to this explosive increase: 1) as with the global oil
producers, consolidation and cost-cutting have kept production increases in
check; 2) exploration and production (E&P) companies are having difficulty
increasing production due to the mature nature of U.S. gas resources; and 3) gas
imports from Canada are increasing at a much slower rate than expected, as
Canadian E&P companies are focused on lower risk oil exploration. In addition,
forecasts of above normal summer temperatures and a colder winter has the market
extremely nervous about the prospect of severe shortages.
Energy shares performed very well on the back of these price increases, with the
E&P and oil services groups up 52.2% and 39.9%, respectively. The integrated
producers lagged, however, ending the first half essentially unchanged.
PRECIOUS METALS had mixed performance for the six months ended June 30. The
price of gold increased 0.6% to $290.10 per ounce. The flat performance was
punctuated by a rally to the $310 level in February following an announcement
22
<PAGE>
VAN ECK NATURAL RESOURCES FUND
--------------------------------------------------------------------------------
by Placer Dome (0% of Fund assets at June 30) that the company will no longer
engage in hedging activities. This action acknowledged the negative impact that
heavy hedgers like Placer have had on the gold market over the past several
years. Bullion then drifted lower to the $270 level before rallying again in
June amid speculation of a weakening U.S. dollar. Gold shares' performance was
subdued relative to the gold price, as indicated by the 15.0% decline in U.S.
gold shares.
Platinum recorded a new high of $580 per ounce on June 28, while palladium has
also been very strong this year, ending the quarter around the $600 level.
Strong prices are a result of export delays from Russia, one of the major
suppliers of these metals. Platinum/palladium producers' share prices are down
5% to 12% in the first half. The South African producers have already had strong
gains in 1999 in anticipation of higher prices, while U.S.-based Stillwater
Mining (3.4% of assets) has had operational problems at their Montana mine that
has depressed its share price.
INDUSTRIAL METALS experienced declines during the first half. Copper, aluminum,
nickel, and zinc prices as a group have declined roughly 5%, despite a
precipitous fall in exchange inventories that ranges from 20% for zinc to 50%
for nickel. Normally, declines in inventories are supportive of prices. This
sharp divergence between pricing and exchange inventory levels has led to
speculation as to the cause, the most credible of which are: 1) metals traders
are forecasting a slowdown in global growth; 2) the market is adjusting to lower
inventory levels to match gains in production and transport efficiencies; 3)
inventories are being stored in off-exchange locations; or 4) inventories are
being consumed due to increased demand. Each of these explanations have merit
and are likely to play a role, however, the magnitude of the anomaly suggests
that, on balance, there is a tightness in the market that justifies prices above
current levels. A look at the equity market provides an even starker contrast.
Base metals shares are down 44% this year. We believe equity investors have been
incorrectly forecasting a worst-case outcome in which metals would be found
hidden in unreported inventories at the same time that U.S. GDP growth slows.
The FOREST PRODUCTS AND PAPER sector had mixed results in the first six months
of 2000. Prices for most grades of pulp and paper products reached post-Asian
crisis highs in the first half of 2000. Lumber prices, on the other hand, fell
by approximately 20% since the beginning of the year. The decline in lumber was
caused by a modest slowdown in the U.S. housing market, coupled with a drop in
exports brought on by the strong U.S. dollar. Following on the disappointing
lumber performance, some grades, such as uncoated freesheet and containerboard,
exhibited weakness in pricing and inventory levels at the end of the first half.
Others, such as newsprint and pulp, were showing strength. The equity market
failed to discriminate between various producers, as most paper stocks faired
poorly in the first half. In our view, the market overreacted to weakness in the
lumber market, sending the forest products and paper shares down 38.8% for the
first half.
THE OUTLOOK
Our outlook for natural resources overall is positive due primarily to continued
(if moderating) global economic growth and promising supply/demand pictures for
most natural resource commodities.
We continue to favor the energy sector. The fundamentals of the oil and gas
markets indicate that a tight supply/demand scenario should dominate for the
remainder of the year. June inventories of natural gas, crude oil, gasoline, and
heating oil are slightly to moderately below the normal average levels.
Continued strong demand will be supportive of the current lofty prices, while
severe weather or political events could potentially precipitate a crisis
situation. On July 3, Saudi Arabia unilaterally announced plans to increase
production. This is the first sign of disarray among OPEC producers. Equity
valuations are currently discounting somewhat lower commodity prices, indicating
that the market does not yet believe that higher energy prices are a longer-term
phenomenon. In addition to commodity price strength, we expect
23
<PAGE>
VAN ECK NATURAL RESOURCES FUND
--------------------------------------------------------------------------------
positive earnings surprises to underpin share prices going forward.
We believe there is considerable support for gold above the $270 level due to
the current trend among producers to abandon hedging, the agreement among
central banks to limit gold sales and lending, and a mine production profile
that we estimate will start to decline in 2001. There are some disturbing trends
in the U.S. economy that are supportive to gold, which include the record trade
deficit, inflationary pressures brought on by low unemployment and high energy
costs, and threats to the banking system due to the high levels of consumer,
financial and non-financial debt. While these problems are not being given
serious consideration by the markets, we believe the dangers are real enough to
justify a significant position in gold shares.
Platinum and palladium prices are probably not sustainable above $500 per ounce.
However, the unique properties of these metals as the critical components in
pollution control devices and the government mandated trends to cleaner emission
standards provide a robust outlook for demand, which should result in prices
above the long-term average and record profits for producers.
Most analysts agree that the industrial metals were in deficit supply in the
first half. While seasonal weakness may reduce metals demand somewhat in the
third quarter, we believe that the momentum contained within the U.S. economy
will be supportive of continued high levels of metals consumption. Consolidation
and a lack of capital spending in the forest products and paper industry
continues to limit production growth and tightness in inventories should support
prices.
We appreciate your participation in the Van Eck Natural Resources Fund and look
forward to helping you meet your investment needs in the future.
[PHOTO OF JOSEPH M. FOSTER]
/s/ JOSEPH M. FOSTER
JOSEPH M. FOSTER
MANAGEMENT TEAM MEMBER
July 20, 2000
--------------------------------------------------------------------------------
PERFORMANCE RECORD AS OF 6/30/00
--------------------------------------------------------------------------------
AFTER MAXIMUM
AVERAGE ANNUAL SALES CHARGE BEFORE SALES
TOTAL RETURN OF 5.75% CHARGE
--------------------------------------------------------------------------------
Life (since 2/15/86) (2.19)% (1.79)%
--------------------------------------------------------------------------------
10 year (6.13)% (5.57)%
--------------------------------------------------------------------------------
5 year (16.37)% (15.37)%
--------------------------------------------------------------------------------
1 year (18.18)% (13.33)%
--------------------------------------------------------------------------------
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.
24
<PAGE>
VAN ECK NATURAL RESOURCES FUND
--------------------------------------------------------------------------------
SECTOR WEIGHTINGS
AS OF JUNE 30, 2000
[PIE CHART OMITTED]
Cash/Equivalents 0.9%
Energy 45.7%
Precious Metals 29.8%
Industrial Metals 14.7%
Forest Products
and Paper 8.9%
GEOGRAPHICAL WEIGHTINGS
AS OF JUNE 30, 2000
[PIE CHART OMITTED]
Other 0.4%
Cash/Equivalents 0.9%
United States 48.8%
Canada 21.9%
Australia 8.8%
South Africa 8.0%
France 4.7%
Netherlands 3.4%
United Kingdom 3.1%
25
<PAGE>
VAN ECK NATURAL RESOURCES FUND
TOP TEN HOLDINGS AS OF JUNE 30, 2000*
--------------------------------------------------------------------------------
TOTAL FINA ELF S.A.
(FRANCE, 4.7%)
Total Fina explores for, produces, refines, transports, and markets oil and
natural gas. There are 12,840 Total gas filling stations in Europe, the United
States and Africa. The company also operates a chemical division, which produces
rubber, paint, ink, adhesives, and resins. Total is investing heavily in new oil
and gas projects that offer the greatest prospects for production growth among
the integrated energy producers.
CHEVRON CORP.
(U.S., 4.6%)
Chevron explores for, develops, and produces oil and natural gas. The company
offers some of the best exploration plays among the major oil companies and has
a strong position in the developing Caspian Sea region. Chevron also refines,
markets and transports crude oil in the U.S. and throughout the world.
WMC LTD.
(AUSTRALIA, 4.3%)
WMC is an Australian-based diversified metals producer active in mining,
processing, and marketing of alumina, nickel, gold, fertilizer, and other
industrial minerals. The company has spent a number of years perfecting
operations at some technically difficult but world class mines that are now
beginning to run at full efficiency. Recent significant discoveries of gold and
nickel in Australia indicate that the company will be able to generate
additional mining capacity internally.
MERIDIAN GOLD, INC.
(CANADA, 3.7%)
Meridian Gold is a gold production and exploration company with operations in
the Americas. The company is set to more than double its gold production in 2000
with the recent commissioning of its El Pe-on mine in Chile. El Pe-on is a
high-grade underground gold mine with substantial silver credits that will
transform Meridian into one of the lowest cost producers in the world.
DEVON ENERGY CORP.
(U.S., 3.5%)
Devon Energy is an independent energy company involved in oil and gas property
acquisition, exploration and production. The company operates in the Permian
Basin of Texas, the Rocky Mountains, the Gulf Coast and offshore Gulf of Mexico,
as well as western Canada and internationally. The company has focused on
increasing domestic production with timely acquisitions.
STILLWATER MINING CO.
(U.S., 3.4%)
Stillwater Mining develops, processes and refines platinum, palladium and
associated metals from the Stillwater Mine in Montana. Stillwater is the only
primary producer of platinum outside of South Africa. The company is currently
developing the East Boulder project, a new underground mine on the Stillwater
property that will boost metals production substantially starting in 2001.
ROYAL DUTCH PETROLEUM CO.
(NETHERLANDS, 3.4%)
Royal Dutch Petroleum controls the Royal Dutch/Shell Group of companies. The
company explores for, produces, refines, and markets petroleum products and
manufactures chemicals. Royal Dutch has emerged from a restructuring and asset
disposal program that promises to provide superior profitability going forward
from one of the best asset portfolios in the business.
HOMESTAKE MINING CO.
(U.S., 3.4%)
Homestake Mining explores for and produces gold. The company has the lowest
level of political risk in the industry with operations in the United States,
Canada and Australia. Homestake is an unhedged producer that has successfully
reduced costs to stay competitive at low gold prices.
NEWMONT MINING CO.
(U.S., 3.3%)
Newmont is the largest gold producer outside of South Africa. The company's core
property is the Yanacocha Mine in Peru, which has developed into a district
producing nearly two million ounces per year. Newmont is also developing the
world class Batu Hijau Mine in Indonesia and continues to lead the North
American industry with its production from Nevada.
OCEAN ENERGY, INC.
(U.S., 2.9%)
Ocean Energy explores and develops crude oil and natural gas properties. The
company's operations are focused in the shelf and deepwater areas of the Gulf of
Mexico, the Permian Basin, Midcontinent, and Rocky Mountain regions of the
United States. The company is also positioned to benefit from international
drilling success with properties in West Africa, Egypt, Russia, and Indonesia.
----------
* Portfolio is subject to change.
26
<PAGE>
VAN ECK U.S. GOVERNMENT MONEY FUND
--------------------------------------------------------------------------------
Dear Fellow Shareholder:
The U.S. Government Money Fund continues to meet its objectives as an investment
that provides a high degree of safety and daily liquidity. It also serves to
assist investors who wish to employ our exchange privileges or to use our
checkwriting privileges. The Fund's seven-day average yield was 4.97%* and its
30-day average yield was 4.91% on June 30, 2000. The Fund's total net assets
were $115.8 million as of June 30, 2000.
During the first half of 2000, the yield on three-month Treasury bills averaged
5.77%. Treasury bill rates climbed steadily from their January low of 5.33% to
peak in mid-May at 6.21%. This rise in T-bill rates was coincident with the
continued tightening of monetary conditions by the Federal Reserve. The Fed
raised the Fed Funds target rate three times in the first half of 2000, a total
tightening of 100 basis points (1.00%), in an attempt to cool the robust U.S.
economy and reduce the risk of inflation. T-bill rates ended the first half at
5.85%, falling from their mid-May peak as economic data began pointing to a
potential slowing of the U.S. economy and investors began to speculate that the
Fed may be coming to the end of their tightening cycle.
The Fund's investment strategy continues to emphasize safety by investing in
short-term U.S. Treasury obligations and repurchase agreements collateralized by
U.S. Treasury obligations. These obligations are the most conservative money
market investments and offer the highest degree of security since they are
backed by the U.S. Government. Of course, shares of the Fund are not guaranteed
by the United States Government** and there can be no guarantee that the price
of the Fund's shares will not fluctuate.*** Repurchase agreements allow us to
take advantage of higher yields without significantly increasing risk. The
Fund's repurchase agreements are collateralized 102% by U.S. Treasury
obligations with maturities of less than five years. In addition, your Fund has
possession of the collateral.
We plan to continue our current investment strategy, keeping an equal weighting
between U.S. Treasury bills and repurchase agreements over time. However, when
repurchase agreements offer an attractive yield pick-up over Treasury bills we
will look to place more emphasis on repurchase agreements.
The U.S. Government Money Fund offers daily liquidity and checkwriting
privileges, providing the kind of convenient access to cash not available in
many other types of investments. The Fund also provides an excellent base from
which investors may transfer money into or out of other members of the Van Eck
Family of Funds.+
We appreciate your participation in the Van Eck U.S. Government Money Fund and
look forward to helping you meet your investment objectives in the future.
[PHOTO OF GREGORY F. KRENZER]
/s/ GREGORY F. KRENZER
----------------------
GREGORY F. KRENZER
PORTFOLIO MANAGER
July 7, 2000
---------------------
* Performance data represents past performance and is not indicative of future
results.
** An investment in a money market fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
*** There can be no assurance that the Fund will be able to maintain a stable
net asset value of $1.00 per share. It is possible to lose money by
investing in the Fund.
+ Currently, there is no charge imposed on exchanges or limits as to frequency
of exchanges for this Fund. However, shareholders are limited to six
exchanges per calendar year for other Van Eck and Van Eck/Chubb Funds. The
Funds reserve the right to modify or terminate the terms of the Exchange
Privilege.
27
<PAGE>
ASIA DYNASTY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
--------------------------------------------------------------------------------
CHINA: 2.6%
250,000 MATRIX 8848.net Holdings, LLC (b)(c)(d) $ 250,000
1,760,000 Yizheng Chemical Fibre Co. Ltd. 349,941
2,200,000 Zhenhai Refining & Chemical Co. Ltd. 341,475
-----------
941,416
-----------
HONG KONG: 18.0%
178,000 Asia Satellite Telecommunications Holdings Ltd. 608,510
2,768,000 Brilliance China Automotive Holdings Ltd. 475,797
103,000 Cheung Kong (Holdings) Ltd. 1,139,585
420,000 China Everbright Pacific Ltd. 328,647
92,000 China Telecom (Hong Kong) Ltd. 811,355
115,000 Citic Pacific Ltd. 601,878
206,000 Computer & Technologies Holdings Ltd. 210,080
88,000 Dah Sing Financial Group 354,456
175,000 Great Eagle Holdings Ltd. 276,117
336,500 Kerry Properties Ltd. 356,114
94,000 Li & Fung Ltd. 470,265
701,000 New World Infrastructure Ltd. 620,465
525,000 Wheelock & Co. Ltd. 343,463
-----------
6,596,732
-----------
INDIA: 13.5%
9,773 Citicorp Securities & Investments 34,802
9,500 Dr. Reddy's Laboratories Ltd. 279,149
16,400 HCL Technologies Ltd. 473,378
3,000 Hindustan Lever Ltd. 191,288
99,500 Hindustan Petroleum Corp. Ltd. 273,541
36,500 Housing Development Finance
Corporation Ltd. 451,979
3,800 Infosys Technologies Ltd. 709,787
400 ITC Ltd. 7,095
7,550 NIIT Ltd. 370,483
18,000 Satyam Computer Services Ltd. 1,201,344
26,400 Sonata Software Ltd. 372,497
35 Tata Infotech Ltd. 226
16,500 Television Eighteen India Ltd. 220,985
12,644 Videsh Sanchar Nigam Ltd. 341,232
-----------
4,927,786
-----------
INDONESIA: 2.5%
640,554 PT Astra International Tbk 201,145
750,000 PT Bank Panin Indonesia Tbk Warrants
(expiring 7/08/02) 7,108
24,900,000 PT Lippo Bank Tbk 355,410
1,000,000 PT Telekomunikasi Indonesia 351,128
-----------
914,791
-----------
MALAYSIA: 7.0%
225,000 Berjaya Sports Toto Berhad 367,105
180,000 Commerce Asset Holdings Berhad 521,053
321,000 IOI Properties Berhad 506,842
255,000 MAA Holdings Berhad 671,053
67,000 Unisem (M) Berhad 476,053
-----------
2,542,106
-----------
PHILIPPINES: 0.0%
4,200 Benpres Holdings Corp. (GDR) 7,875
-----------
SINGAPORE: 12.6%
5,000 Chartered Semiconductor Manufacturing Ltd. 450,000
66,920 Datacraft Asia Ltd. 588,896
35,427 DBS Group Holdings Ltd. 455,007
185,000 JIT Holdings Ltd. 323,228
84,000 Natsteel Electronics Ltd. 257,564
81,000 Pacific Century Regional Development Ltd. 1,105,930
42,000 Singapore Airlines Ltd. 415,505
102,000 Singapore Land Ltd. 217,159
34,000 Singapore Land Warrants (expiring 3/23/05) 30,686
10,723 Singapore Press Holdings Ltd. 167,498
112,000 Star Cruises PLC 604,800
-----------
4,616,273
-----------
SOUTH KOREA: 22.2%
5,900 Cheil Communications, Inc. 769,893
5,920 Cheil Jedang Corp. 271,305
45,568 Daou Technology, Inc. 441,366
6,600 Daum Communications Corp. 627,430
11,361 Haansoft, Inc. 184,421
35,100 Housing & Commercial Bank, Korea 821,605
49,656 Hyundai Electronics Industries Co. 979,738
27,000 Hyundai Motors Co. Ltd. 346,270
6,800 Korea Telecom Corp. 598,874
6,526 Samsung Electronics 2,159,677
2,800 SK Telecom Co. Ltd. 916,571
-----------
8,117,150
-----------
TAIWAN: 16.8%
57,750 Acer, Inc. (GDR) 539,963
45,000 Ambit Microsystems Corp. 446,705
207,700 Compal Electronics, Inc. 510,378
700,000 Eva Airways Corp. 338,324
34,500 Evergreen Marine Corp. 339,825
270,000 Polaris Securities Co. Ltd. 246,932
135,900 R.O.C. Taiwan Fund 1,180,631
52,600 Siliconware Precision Industries Co. (ADR) 486,550
407,800 United Microelectronics Corp. 1,134,806
34,000 Via Technologies, Inc. 525,631
121,000 Zyxel Communications Corp. 397,754
-----------
6,147,499
-----------
THAILAND: 1.1%
869,600 Golden Land Property Development PLC 117,603
340,800 Regional Container Line Public Co. Ltd."F" 300,016
-----------
417,619
-----------
TOTAL STOCKS AND OTHER INVESTMENTS: 96.3%
(Cost: $30,534,390) 35,229,247
OTHER ASSETS LESS LIABILITIES: 3.7% 1,346,399
-----------
NET ASSETS: 100% $36,575,646
===========
--------------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Affiliated company. See Schedule of Affiliated Company Transactions
(Note 9).
(c) Fair value as determined by Board of Trustees.
(d) Restricted security, see note 8.
GLOSSARY:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
"F" - Foreign Registry
See Notes to Financial Statements
28
<PAGE>
ASIA DYNASTY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED) (CONTINUED)
SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
------------------------------------------------------
Advertising 2.10%
Airlines 2.06%
Automotive 2.80%
Chemicals 0.96%
Commercial Services 1.29%
Computer Software & Technology 16.66%
Conglomerates 3.50%
Consumer Products 0.52%
Electrical Equipment & Electronics 16.51%
Engineering & Construction 1.70%
Entertainment & Leisure 2.66%
Financial Services & Insurance 10.72%
Food & Beverages 0.74%
Investment Funds 3.23%
Oil & Gas 1.68%
Pharmaceuticals 0.76%
Publishing 0.46%
Real Estate 7.23%
Semiconductors & Semiconductor Equipment 8.45%
Telecommunications 9.92%
Television 0.60%
Tobacco 0.02%
Transportation 1.75%
Other assets less liabilities 3.68%
------
100.00%
======
See Notes to Financial Statements
29
<PAGE>
EMERGING MARKETS VISION FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
-------------------------------------------------------------------------------
BRAZIL: 5.0%
1,300 CIA Paranaense de Energia
(Copel) Pfd. (ADR) $ 12,106
120 Tele Centro Oeste
Celular Participacoes S.A. (ADR) 8,768
1,200 Tele Norte Leste Participacoes S.A. (ADR) 28,350
450 Uniao de Bancos Brasileiros S.A. (ADR) 12,938
----------
62,162
----------
HONG KONG: 5.5%
5,000 Asia Satellite Telecommunications
Holdings Ltd. 17,093
2,000 Cheung Kong (Holdings) Ltd. 22,128
1,000 China Telecom (Hong Kong) Ltd. 8,819
2,000 Li & Fung Ltd. 10,006
12,000 New World Infrastructure Ltd. 10,621
----------
68,667
----------
INDIA: 8.7%
1,500 ICICI Ltd. 21,750
2,000 India Fund, Inc. 28,375
1,500 Rediff.com India Ltd. 21,000
1,000 Silverline Technologies Ltd. (ADR) 21,625
2,500 SSI Ltd. 16,750
----------
109,500
----------
INDONESIA: 0.7%
40,000 PT Bimantara Citra Tbk"F" 5,595
10,000 PT Telekomunikasi Indonesia 3,511
----------
9,106
----------
ISRAEL: 2.7%
270 Fundtech Corp. Ltd. 7,020
70 Gilat Satellite Networks Ltd. 4,856
200 Nice Systems Ltd. (ADR) 15,438
70 Orbotech Ltd. 6,501
----------
33,815
----------
MALAYSIA: 2.0%
4,000 MAA Holdings Berhad 10,526
2,000 Unisem (M) Berhad 14,211
----------
24,737
----------
MEXICO: 9.4%
523 Cemex S.A. (Sponsored ADR) 12,232
5,000 Consorcio ARA S.A. de C.V. 5,912
4,500 Corporation Interamericana de
Entretenimento S.A. de C.V. (Series B) 17,660
4,500 Grupo Financiero Banamex
Accival, S.A. de C.V. 18,990
650 Telefonos de Mexico S.A. de C.V.
(Sponsored ADR) 37,131
2,000 TV Azteca S.A. (Sponsored ADR) 26,375
----------
118,300
----------
RUSSIA: 3.7%
1,000 AO Taftneft (Sponsored ADR) 9,813
100 Golden Telecom, Inc. 2,975
300 Lukoil Holding (ADR) 15,198
35,000 Surgutneftegaz Pfd. 3,990
1,050 Surgutneftegaz (Sponsored ADR) 13,850
----------
45,826
----------
SINGAPORE: 6.3%
300 Chartered Semiconductor
Manufacturing Ltd. 27,000
1,560 Datacraft Asia Ltd. 13,728
2,000 Pacific Century Regional
Development Ltd. 27,307
2,000 Star Cruises PLC 10,800
----------
78,835
----------
SOUTH AFRICA: 5.0%
9,000 Comparex Holdings Ltd. 15,863
4,000 Dimension Data Holdings Ltd. 33,097
15,000 Softline Ltd. 13,805
----------
62,765
----------
SOUTH KOREA: 8.3%
100 Cheil Communications, Inc. 13,049
300 Daum Communications Corp. 28,520
800 Hyundai Electronics Industries Co. 15,784
150 Korea Telecom Corp. 13,210
100 Samsung Electronics 33,093
----------
103,656
----------
TAIWAN: 11.7%
3,500 Acer, Inc. (GDR) 32,725
1,000 Hon Hai Precision Industry Co. (GDR) 24,850
3,000 R.O.C. Taiwan Fund 26,063
3,700 Siliconware Precision Industries
Co. (ADR) 34,225
1,000 Winbond Electronics Corp. 28,900
----------
146,763
----------
TURKEY: 3.2%
500,000 Dogan Yayin Holding A.S. 8,467
60,000 Enka Holding Yatirim A.S. 13,306
500,000 Turkiye Garanti Bankasi A.S. 6,048
40,000 Vestel Elektronik Sanayi ve
Ticoret. A.S. 12,096
----------
39,917
----------
TOTAL STOCKS AND OTHER INVESTMENTS: 72.2%
(Cost: $900,965) 904,049
----------
See Notes to Financial Statements
30
<PAGE>
EMERGING MARKETS VISION FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED) (CONTINUED)
PRINCIPAL INTEREST MATURITY
AMOUNT SECURITIES (a) RATE DATE VALUE (NOTE 1)
--------------------------------------------------------------------------------
SHORT-TERM OBLIGATION: 27.0%
$339,000
Repurchase Agreement (Note 10):
Purchased on 6/30/00;
maturity value $339,000
(with State Street Bank & Trust
Co., collateralized by $340,000.
Federal National Mortgage
Association 6.70%
due 1/03/02 with a value of
$350,792) (Cost: $339,000) 6.45% 7/03/00 $ 339,000
-----------
TOTAL INVESTMENTS: 99.2%
(Cost: $1,239,965) 1,243,049
OTHER ASSETS LESS LIABILITIES: 0.8% 9,699
-----------
NET ASSETS: 100% $1,252,748
===========
SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
----------- ------
Advertising 1.0%
Building & Construction 2.0%
Commercial Services 0.8%
Computer Software & Technology 17.1%
Conglomerates 0.5%
Electrical Equipment & Electronics 13.9%
Engineering & Construction 0.8%
Entertainment & Leisure 2.3%
Financial Services & Insurance 5.6%
Investment Funds 4.4%
Manufacturing 1.0%
Media 2.8%
Oil & Gas 3.4%
Real Estate 2.2%
Semiconductors & Semiconductor Equipment 3.4%
Telecommunications 10.0%
Utilities 1.0%
Short-Term Obligation 27.0%
Other assets less liabilities 0.8%
-------
100.0%
=======
-------------
(a) Unless otherwise indicated, securities owned are shares of common stock.
GLOSSARY:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
"F" - Foreign Registry
See Notes to Financial Statements
31
<PAGE>
GLOBAL HARD ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
--------------------------------------------------------------------------------
AUSTRALIA: 5.1%
ENERGY: 3.0%
130,619 Origin Energy Ltd. $ 125,789
477,000 Portman Ltd. 228,254
143,000 United Energy Ltd. 278,846
-----------
632,889
-----------
INDUSTRIAL METALS: 0.5%
14,000 Capral Aluminum Ltd. 20,893
39,500 Mayne Nickless Ltd. 81,040
-----------
101,933
-----------
PRECIOUS METALS: 1.6%
130,000 Newcrest Mining Ltd. 349,918
6,830 Online Advantage Ltd. 1,144
-----------
351,062
-----------
1,085,884
-----------
BERMUDA: 0.6%
TRANSPORTATION: 0.6%
6,200 Knightsbridge Tankers Ltd. 124,000
-----------
BRAZIL: 0.9%
TRANSPORTATION: 0.9%
10,000 Aracruz Celulose S.A. (ADR) 193,125
-----------
CANADA: 22.0%
ENERGY: 7.0%
7,200 Alberta Energy Co. Ltd. 290,742
6,900 Canadian Natural Resources Ltd. 200,351
7,250 Ensign Resources Service Group 238,909
20,000 NQL Drilling Tools, Inc. 121,548
16,200 Talisman Energy, Inc. 536,572
333,000 Windsor Energy Corp. (b)(c) 87,697
-----------
1,475,819
-----------
FOREST PRODUCTS AND PAPER: 5.0%
35,000 Abitibi-Consolidated, Inc. 328,125
26,000 Canfor Corp. 230,873
25,300 Tembec, Inc. 246,867
35,000 Timberwest Forest Corp. 245,796
-----------
1,051,661
-----------
INDUSTRIAL METALS: 1.4%
9,600 Alcan Aluminum Ltd. 297,600
-----------
PRECIOUS METALS: 4.2%
6,300 Barrick Gold Corp. 114,581
707,700 Brazilian Resources, Inc. 396,645
40,200 Placer Dome, Inc. 384,413
-----------
895,639
-----------
REAL ESTATE: 4.4%
25,000 Brookfield Properties Corp. 331,724
27,000 Oxford Properties Group, Inc. 309,035
17,000 TrizecHahn Corp. 303,875
-----------
944,634
-----------
4,665,353
-----------
FINLAND: 1.0%
FOREST PRODUCTS AND PAPER: 1.0%
22,500 Stora Enso Oyj (R Shares) 205,388
-----------
FRANCE: 0.1%
REAL ESTATE: 0.1%
3,500 Societe Fonciere Lyonnaise
Warrants (expiring 7/30/02) 836
3,000 Unibail S.A. Warrants
(expiring 5/11/04) 17,865
-----------
18,701
-----------
NORWAY: 0.4%
ENERGY: 0.4%
7,000 Stolt Comex Seaway S.A. 98,875
-----------
RUSSIA: 6.2%
ENERGY: 6.2%
15,000 AO Tatneft (ADR) 147,188
1,679 Khanty-Mansiysk Oil Co. (b)(c) 797,525
2,600 Lukoil Holding Corp. (ADR) 131,716
2,600 Lukoil Holding Corp. Pfd. (ADR) 51,692
7,800 Surgutneftegaz (Sponsored ADR) 87,976
7,800 Surgutneftegaz Pfd.
(Sponsored ADR) 102,888
-----------
1,318,985
-----------
SOUTH AFRICA: 1.2%
FOREST PRODUCTS AND PAPER: 1.2%
4,092 Anglogold Ltd. (Sponsored ADR) 84,142
23,000 Sappi Ltd. (ADR) 169,625
-----------
253,767
-----------
UNITED KINGDOM: 1.5%
ENERGY: 1.5%
5,700 BP Amoco PLC (ADR) 322,406
-----------
UNITED STATES: 58.6%
ENERGY: 29.8%
9,500 Anadarko Petroleum Corp. 468,469
6,750 Apache Corp. 396,984
3,650 Cooper Cameron Corp. 240,900
3,600 Enron Corp. 232,200
12,500 Ensco International, Inc. 447,656
4,372 Exxon Mobil Corp. 343,202
13,800 Falcon Drilling Company, Inc. 325,163
27,500 Global Industries Ltd. 519,063
12,500 Global Marine, Inc. 352,344
16,000 Grant Prideco, Inc. 400,000
8,400 Honeywell International Ltd. 282,975
10,050 Nabors Industries, Inc. 417,703
21,600 Ocean Energy, Inc. 306,450
7,000 Santa Fe International Corp. 244,563
3,000 Schlumberger Ltd. 223,875
2,780 Smith International, Inc. 202,419
8,570 Tidewater, Inc. 308,520
4,540 Transocean Sedco Forex, Inc. 242,606
5,100 Valero Energy Corp. 161,925
5,000 Williams Companies, Inc. (The) 208,438
-----------
6,325,455
-----------
See Notes to Financial Statements
32
<PAGE>
GLOBAL HARD ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED) (CONTINUED)
NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
--------------------------------------------------------------------------------
FOREST PRODUCTS AND PAPER: 2.5%
11,000 Fort James Corp. $ 254,375
4,000 Georgia-Pacific Corp. 105,000
4,000 Weyerhaeuser Co. 172,000
-----------
531,375
-----------
INDUSTRIAL METALS: 4.3%
45,201 AK Steel Holding Corp. 361,608
18,804 Alcoa, Inc. 545,316
-----------
906,924
-----------
PRECIOUS METALS: 3.4%
39,000 Homestake Mining Co. 268,125
15,975 Stillwater Mining Co. 445,303
-----------
713,428
-----------
REAL ESTATE: 18.6%
8,000 AMB Property Corp. 182,500
7,000 Apartment Investment
& Management Co. 302,750
10,000 Bedford Property Investors, Inc. 185,625
13,960 Boston Properties, Inc. 539,205
15,000 Brandywine Realty Trust 286,875
10,000 Crescent Real Estate Equities Co. 205,000
11,009 Equity Office Properties Trust 303,433
5,000 Equity Residential Properties Trust 230,000
20,000 Host Marriott Corp. 187,500
10,200 Kilroy Realty Corp. 264,563
5,000 Macerich Co. (The) 110,313
8,970 Mack-Cali Realty Corp. 230,417
11,300 Prentiss Properties Trust 271,200
10,000 Prologis Trust 213,125
11,350 Simon Property Group, Inc. 251,828
78,618 Wyndham International, Inc. 196,542
-----------
3,960,876
-----------
12,438,058
-----------
TOTAL STOCKS AND OTHER INVESTMENTS: 97.6%
(Cost: $20,227,970) 20,724,542
OTHER ASSETS LESS LIABILITIES: 2.4% 504,945
-----------
NET ASSETS: 100% $21,229,487
===========
SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
----------- ------
Energy 47.9%
Forest Products and Paper 10.3%
Industrial Metals 6.2%
Precious Metals 9.2%
Real Estate 23.1%
Transportation 0.9%
Other assets less liabilities 2.4%
-------
100.0%
=======
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Restricted security, see Note 8.
(c) Fair value as determined by Board of Trustees.
GLOSSARY:
ADR - American Depositary Receipt
See Notes to Financial Statements
33
<PAGE>
GLOBAL LEADERS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
--------------------------------------------------------------------------------
BRAZIL: 0.5%
2,000 Telecomunicacoes Brasileiras S.A. (ADR) $ 194,250
----------
DENMARK: 1.5%
7,100 ISS A.S. 541,363
----------
FINLAND: 1.6%
11,800 Nokia Oyj 602,864
----------
FRANCE: 7.6%
8,500 Alcatel 558,169
1,730 Cap Gemini S.A. 305,093
10,000 Carrefour S.A. 684,389
1,300 Castorama Dubois Investissements S.A. 321,835
20,000 Havas Advertising S.A. 457,852
3,000 Total Fina Elf S.A. (Class B) 460,529
-----------
2,787,867
-----------
GERMANY: 1.3%
8,000 Direkt Anlage Bank AG 286,755
400 Intershop Communications AG 182,338
-----------
469,093
-----------
HONG KONG: 3.1%
32,000 Cheung Kong (Holdings) Ltd. 354,046
60,000 China Telecom ( Hong Kong) Ltd. 529,145
23,771 HSBC Holdings PLC 271,386
-----------
1,154,577
-----------
IRELAND: 0.6%
33,956 Bank of Ireland 213,404
-----------
ITALY: 3.4%
19,500 Mondadori (Arnoldo) Editore S.p.A. 445,474
29,000 San Paolo-IMI S.p.A. 515,308
60,000 Unicredito Italiano S.p.A 287,329
-----------
1,248,111
-----------
JAPAN: 18.9%
1,900 Advantest Corp. 423,256
40,000 Asahi Breweries Ltd. 478,124
50,000 Bank of Tokyo-Mitsubishi Bank 603,306
18,000 Canon, Inc. 895,210
1,100 Keyence Corp. 362,643
25,000 Nomura Securities Co. Ltd. (The) 611,077
17 NTT Mobile Communications
Network, Inc. 459,568
9,000 Pioneer Electric Corp. 350,115
2,200 Rohm Co. 642,396
18,000 Sharp Corp. 317,901
4,000 Sony Corp. 373,004
3,200 Sony Corp.(ADR) 301,800
9,000 Takeda Chemical Industries, Ltd. 590,025
12,000 Tokyo Broadcasting, Inc. 517,685
-----------
6,926,110
-----------
LUXEMBOURG: 0.9%
2,000 Societe Europeenne des Satellites 336,459
-----------
MEXICO: 0.8%
63,000 Cifra S.A. de C.V. 148,341
2,000 Grupo Televisa S.A. (ADR) 137,875
-----------
286,216
-----------
NETHERLANDS: 3.7%
10,000 Philips Electronics N.V. 472,190
6,000 Royal Dutch Petroleum Co. 369,375
5,400 St. Microelectronics N.V. 340,665
6,900 United Pan-Europe Communication N.V. 180,647
-----------
1,362,877
-----------
SINGAPORE: 1.5%
18,720 Datacraft Asia Ltd. 164,736
31,401 Development Bank of Singapore, Ltd. 403,299
-----------
568,035
-----------
SPAIN: 1.5%
18,000 Banco Bilbao Vizcaya Argentaria S.A. 269,263
12,500 Telefonica S.A. 268,833
-----------
538,096
-----------
SWEDEN: 0.5%
9,000 Securitas AB 191,473
-----------
SWITZERLAND: 3.8%
2,800 ABB Ltd. 335,471
500 Adecco S.A. 425,245
80 Julius Baer Holding Ltd. 316,632
360 Serono S.A. (Class B) 300,433
-----------
1,377,781
-----------
TAIWAN: 1.1%
10,589 Taiwan Semiconductors
Manufacturing Co. 408,338
-----------
UNITED KINGDOM: 5.3%
20,868 BP Amoco PLC 201,285
15,000 Celltech Group PLC 291,120
2,000 Colt Telecom Group PLC 66,715
27,200 Compass Group PLC 349,250
25,000 EMI Group PLC 237,502
12,052 Glaxo Wellcome PLC 351,589
21 Misys PLC 185
78,000 Telewest Communications PLC 272,924
47,941 Vodafone Group PLC 192,092
-----------
1,962,662
-----------
UNITED STATES: 41.9%
10,000 ADC Telecommunications, Inc. 838,750
7,000 America Online, Inc. 369,250
7,500 American Express Co. 390,938
4,500 American International Group, Inc 528,750
10,000 Broadwing, Inc. 259,375
9,000 Chase Manhattan Corp. 414,563
12,000 Cisco Systems, Inc. 762,750
5,000 Clear Channel Communications, Inc. 375,000
12,000 Coastal Corp. 730,500
9,000 EMC Corp. 692,438
10,000 Enron Corp. 645,000
10,000 Exxon Mobil Corp. 785,000
See Notes to Financial Statements
34
<PAGE>
GLOBAL LEADERS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED) (CONTINUED)
NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
--------------------------------------------------------------------------------
UNITED STATES: (continued)
8,900 General Electric Co. $ 471,700
3,300 Hewlett-Packard Co. 412,088
7,500 Home Depot, Inc. 374,531
12,625 Honeywell International, Inc. 425,305
6,500 Intel Corp. 868,969
3,200 JDS Uniphase Corp. 383,600
4,000 Lexmark International, Inc. 269,000
7,000 Lucent Technologies, Inc. 414,750
7,500 Marsh & Mclennan Co., Inc. 783,281
8,000 Merck & Co., Inc. 613,000
4,000 QUALCOMM, Inc. 240,000
7,400 Schlumberger Ltd. 552,225
14,000 Solectron Corp. 586,250
3,200 Time Warner, Inc. 243,200
12,000 Tyco International Ltd. 568,500
5,900 United Parcel Service, Inc. 348,100
9,765 Viacom, Inc.(Class B) 665,851
7,930 WorldCom, Inc. 363,785
-----------
15,376,449
-----------
TOTAL STOCKS: 99.5%
(Cost: $25,726,922) 36,546,025
-----------
SHORT-TERM OBLIGATION: 0.8%
PRINCIPAL INTEREST MATURITY
AMOUNT RATE DATE
--------------------------------------------------------------------------------
$299,000
Repurchase Agreement (Note 10):
Purchased on 6/30/00;
maturity value $299,000
(with State Street Bank &
Trust Co., collateralized by
$305,000 Federal National
Mortgage Association 7.01%
due 4/19/02 with a value of
$308,981) (Cost: $299,000) 6.45% 7/03/00 299,000
-----------
TOTAL INVESTMENTS: 100.3%
(Cost: $26,025,922) 36,845,025
OTHER ASSETS LESS LIABILITIES: (0.3)% (113,234)
-----------
NET ASSETS: 100% $36,731,791
===========
SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
----------- ------
Advertising 1.2%
Beverages 1.3%
Biotechnology 0.8%
Broadcast Media 5.5%
Commercial Services 1.5%
Communications-- Equipment & Software 0.7%
Computer Software 4.2%
Drug & Healthcare 1.6%
Electronics 13.6%
Engineering & Construction 0.9%
Entertainment & Leisure Time 0.7%
Financial Services 12.5%
Food & Household Products 0.5%
Holding Companies 2.1%
Human Resources 1.2%
Insurance 3.5%
Manufacturing 1.5%
Medical Products & Supplies 1.8%
Natural Gas 3.8%
Office Equipment 2.4%
Oil (Integrated/ Services & Products) 5.2%
Pharmaceuticals 1.7%
Publishing & Broadcasting 1.2%
Real Estate 1.0%
Record & Tape Distribution 0.6%
Restaurants 1.0%
Retail 3.6%
Semiconductors 4.4%
Supermarkets 1.9%
Technology 1.1%
Telecommunications 15.6%
Transportation 0.9%
Short-Term Obligation 0.8%
Other assets less liabilities (0.3%)
-------
100.0%
=======
-------------
(a) Unless otherwise indicated, securities owned are shares of common stock.
GLOSSARY:
ADR - American Depositary Receipt
See Notes to Financial Statements
35
<PAGE>
INTERNATIONAL INVESTORS GOLD FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
--------------------------------------------------------------------------------
AUSTRALIA: 8.3%
2,837,400 Delta Gold N.L. $ 2,106,214
4,482,102 Lihir Gold Ltd. 1,769,440
2,420,750 Newcrest Mining Ltd. 6,515,872
4,044,941 Normandy Mining Ltd. 2,177,533
500,000 WMC Ltd. 2,234,987
-----------
14,804,046
-----------
CANADA: 25.0%
192,300 Agnico-Eagle Mines Ltd. 1,237,931
774,871 Barrick Gold Corp. 14,092,966
6,400,000 Business Development Bank
of Canada Gold Linked Note,
2.50% due 12/06/00 (b) 5,513,600
31,000 Cominco Ltd. 425,991
29,900 Falconbridge Ltd. 368,475
26,864 Franco Nevada Mining Corp. 310,199
451,900 GoldCorp, Inc. (Class A) 3,243,133
143,200 IAMGOLD Corp. 294,929
350,000 Kinross Gold Corp. 311,972
385,000 Manhattan Minerals Corp. 831,927
25,000 McWatters Mining, Inc. 6,753
926,500 Meridian Gold, Inc. 5,630,698
1,087,275 Placer Dome, Inc. 10,397,067
624,100 Richmont Mines, Inc. 703,793
180,000 Teck Corp. (Class A) 1,227,632
------------
44,597,066
------------
FRANCE: 0.9%
20,000 Total Fina Elf S.A. 1,536,250
------------
NETHERLANDS: 0.4%
12,000 Royal Dutch Petroleum Co. 738,750
------------
SOUTH AFRICA: 15.1%
295,449 Anglogold Ltd. 6,075,170
3,795,755 Avgold Ltd. 2,015,445
2,823,088 Gold Fields Ltd. (ADR) 11,103,882
897,940 Harmony Gold Mining Co. Ltd. 4,980,604
71,000 Impala Platinum Holdings Ltd.
(ADR) 2,641,122
------------
26,816,223
------------
UNITED KINGDOM: 0.6%
260,000 Billiton PLC 1,060,465
------------
UNITED STATES: 22.2%
622,700 Battle Mountain Gold Co. 1,362,156
15,000 Chevron Corp. 1,272,188
1,234,000 Glamis Gold Ltd. 2,390,875
60,000 Grant Prideco, Inc. 1,500,000
1,741,139 Homestake Mining Co. 11,970,331
15,000 Nabors Industries, Inc. 623,438
632,300 Newmont Mining Corp. 13,673,488
120,000 Ocean Energy, Inc. 1,702,500
24,000 Phelps Dodge Corp. 892,500
60,000 Santa Fe Snyder Corp. 682,500
123,100 Stillwater Mining Co. 3,431,411
------------
39,501,387
------------
TOTAL STOCKS AND OTHER INVESTMENTS: 72.5%
(Cost: $121,116,682) 129,054,187
OTHER ASSETS LESS LIABILITIES: 27.5% 48,965,666
------------
NET ASSETS: 100% $178,019,853
============
----------------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Structured note. See Note 1.
GLOSSARY:
ADR - American Depositary Receipt
SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
----------- ------
Precious Metals 65.2%
Energy 6.4%
Industrial Metals 0.9%
Other assets less liabilities 27.5%
-------
100.0%
=======
See Notes to Financial Statements
36
<PAGE>
NATURAL RESOURCES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
NO. OF SHARES SECURITIES (a) VALUE (NOTE 1)
--------------------------------------------------------------------------------
AUSTRALIA: 8.8%
237,189 Delta Gold NL $ 176,066
490,000 M.I.M. Holdings Ltd. 263,784
187,215 Newcrest Mining Ltd. 503,922
23,000 Rio Tinto Ltd. 379,967
281,000 WMC Ltd. 1,256,063
-----------
2,579,802
-----------
CANADA: 21.9%
13,000 Anderson Exploration Ltd. 236,140
50,000 Berkley Petroleum Corp. 315,686
1,600,000 Business Development Bank of
Canada Gold Linked Note,
2.50% due 12/06/00 (b) 1,378,400
14,000 Canadian Natural Resources Ltd. 406,510
14,000 Canfor Corp. 124,316
24,300 Cominco Ltd. 333,922
13,000 Ensign Resource Service Group 428,388
20,600 Falconbridge Ltd. 253,866
42,200 Francisco Gold Corp. 173,827
6,800 Imperial Oil Ltd. 165,994
155,000 Manhattan Minerals Corp. 334,931
178,200 Meridian Gold, Inc. 1,082,990
15,000 Penn West Petroleum Ltd. 370,721
11,000 Precision Drilling Corp. 424,877
197,800 Romarco Minerals, Inc. 66,784
15,000 Tembec, Inc. (Class A) 146,364
50,000 Winspear Resources Ltd. 142,143
-----------
6,385,859
-----------
FRANCE: 4.7%
18,000 Total Fina Elf S.A.
(Sponsored ADR) 1,382,625
-----------
GHANA: 0.1%
30,191 Ashanti Goldfields Co. Ltd.
(Sponsored GDR) 39,128
-----------
MEXICO: 0.3%
34,000 Grupo Mexico S.A. 95,999
-----------
NETHERLANDS: 3.4%
16,000 Royal Dutch Petroleum Co. 985,000
-----------
SOUTH AFRICA: 8.0%
143,000 Gold Fields Ltd. 561,032
149,800 Harmony Gold Mining Co. 828,540
13,500 Impala Platinum Holding Ltd. 502,168
60,000 Sappi Ltd. (Sponsored ADR) 442,500
-----------
2,334,240
-----------
UNITED KINGDOM: 3.1%
75,000 Billiton PLC 305,903
10,800 BP Amoco PLC (Sponsored ADR) 610,875
-----------
916,778
-----------
UNITED STATES: 48.8%
16,700 AK Steel Holding Corp. 133,600
19,080 Alcoa, Inc. 553,320
8,500 Apache Corp. 499,906
8,500 Boise Cascade Corp. 219,938
16,000 Chevron Corp. 1,357,000
UNITED STATES: (continued)
24,400 Conoco, Inc. (Class A) 536,800
18,000 Devon Energy Corp. 1,011,375
5,000 Enron Corp. 322,500
10,000 Ensco International, Inc. 358,125
4,000 Exxon Mobil Corp. 314,000
16,500 Georgia-Pacific Corp. 433,125
30,000 Grant Prideco, Inc. 750,000
142,601 Homestake Mining Co. 980,382
14,000 International Paper Co. 417,375
8,000 Nabors Industries, Inc. 332,500
44,100 Newmont Mining Corp. 953,663
60,000 Ocean Energy, Inc. 851,250
13,000 Phelps Dodge Corp. 483,438
25,000 Santa Fe Snyder Corp. 284,375
35,450 Stillwater Mining Co. 988,169
12,500 Tidewater, Inc. 450,000
7,000 Transocean Sedco Forex, Inc. 374,063
22,800 USX Marathon Group 571,425
14,000 USX-U.S. Steel Group 259,874
10,800 Weyerhaeuser Co. 464,400
13,000 Willamette Industries, Inc. 354,250
-----------
14,254,853
-----------
TOTAL STOCKS AND OTHER INVESTMENTS: 99.1%
(Cost: $28,177,027) 28,974,284
-----------
SHORT-TERM OBLIGATION: 1.4%
PRINCIPAL INTEREST MATURITY
AMOUNT RATE DATE
--------------------------------------------------------------------------------
$422,000
Repurchase Agreement (Note 10):
Purchased on 6/30/00; maturity
$422,000 (with State Street
Bank & Trust Co., collateralized
by $435,000. Federal Home Loan
Bank 5.80% due 3/15/02 with a
value of $433,723)
(Cost: $422,000) 6.45% 7/03/00 422,000
-----------
TOTAL INVESTMENTS: 100.5%
(Cost: $28,599,027) 29,396,284
OTHER ASSETS LESS LIABILITIES: (0.5)% (160,466.00)
-----------
NET ASSETS: 100% $29,235,818
===========
----------------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Structured note. See Note 1.
GLOSSARY:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
SUMMARY OF % OF
INVESTMENTS NET
BY INDUSTRY ASSETS
----------- ------
Energy 45.7%
Precious Metals 29.8%
Industrial Metals 14.7%
Forest Products and Paper 8.9%
Short-Term Obligation 1.4%
Other assets less liabilities (0.5%)
--------
100.00%
========
See Notes to Financial Statements
37
<PAGE>
U.S. GOVERNMENT MONEY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
ANNUALIZED YIELD
AT TIME OF
PRINCIPAL MATURITY PURCHASE OR VALUE
AMOUNT DATE COUPON RATE (NOTE 1)
--------------------------------------------------------------------------------
U.S. TREASURY BILLS:
$20,000,000 9/14/00 5.62% $19,765,833
$10,000,000 9/14/00 5.61% 9,883,125
$30,000,000 8/10/00 5.49% 29,817,000
$30,000,000 8/03/00 5.45% 29,850,125
-----------
TOTAL U.S. TREASURY BILLS: 182.3%
(Amortized Cost: $89,316,083) 89,316,083
-----------
REPURCHASE AGREEMENTS: (NOTE 10):
$25,000,000
Purchased on 6/30/00;
maturity value $25,000,000,
(with State Street Bank and
Trust Co., collateralized by
$24,940,000. U.S. Treasury
Notes 6.25% due 1/31/02
with a value of $25,524,189)
(Cost: $25,000,000) 7/03/00 6.45% 25,000,000
$1,795,000
Purchased on 6/30/00;
maturity value $1,795,000,
(with State Street Bank and
Trust Co., collateralized by
$1,805,000. U.S. Treasury
Note 5.125% due 8/31/00
with a value of $1,834,165)
(Cost: $1,795,000) 7/03/00 6.45% 1,795,000
-------------
26,795,000
-------------
TOTAL REPURCHASE AGREEMENTS: 54.7%
(Cost: $26,795,000)
TOTAL INVESTMENTS: 237.0%
(Cost: $116,111,083) 116,111,083
OTHER ASSETS LESS LIABILITIES: (137.0)% (67,118,516)
-------------
NET ASSETS: 100% $ 48,992,567
=============
See Notes to Financial Statements
38
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
39
<PAGE>
VAN ECK FUNDS
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
EMERGING GLOBAL
ASIA DYNASTY MARKETS HARD ASSETS
FUND VISION FUND FUND
----------- ---------- -----------
<S> <C> <C> <C>
ASSETS:
Investments at cost ................ $30,534,390 $1,239,965 $20,227,970
=========== ========== ===========
Investments at value (Note 1) ...... $35,229,247 $1,243,049 $20,724,542
Cash and foreign currency .......... 1,721,416 31,395 --
Cash--initial margin ............... -- 38,990 --
Receivables:
Securities sold .................. 657,173 21,142 1,851,973
Dividends and interest ........... 53,494 104 48,525
Capital shares sold .............. 34,198 -- 512
From Adviser ..................... -- 8,610 --
Due from broker (Note 11) ........ -- -- 23,226
Unrealized appreciation on open
forward foreign
currency contracts (Note 6) .... -- -- --
Other assets ....................... -- 22,234 857
----------- ---------- -----------
Total assets ................... 37,695,528 1,326,534 22,688,625
----------- ---------- -----------
LIABILITIES:
Payables:
Due to custodian ................. -- -- 26,919
Line of credit (Note 12) ......... 415,986 -- 1,065,029
Foreign taxes .................... 292,869 -- --
Securities purchased ............. 266,411 61,775 225,340
Dividends payable ................ -- -- --
Capital shares redeemed .......... 90,293 2,033 52,623
Accounts payable ................. 31,449 9,153 37,554
Due to distributor (Note 4) ...... 20,921 825 13,345
Due to Adviser (Note 2) .......... 1,186 -- 2,927
Due to broker--variation
margin (Note 11) ................. -- -- 23,000
Due to Trustees (Note 7) ........... 756 -- 11,129
Unrealized depreciation on
open forward foreign
currency contracts (Note 6) .... 11 -- 1,272
----------- ---------- -----------
Total liabilities .............. 1,119,882 73,786 1,459,138
----------- ---------- -----------
NET ASSETS ......................... $36,575,646 $1,252,748 $21,229,487
=========== ========== ===========
CLASS A SHARES+:
Net assets ......................... $26,044,138 $1,216,999 $14,267,431
=========== ========== ===========
Shares outstanding ................. 2,206,401 124,454 1,154,317
=========== ========== ===========
Net asset value and redemption
price per share .................. $ 11.80 $ 9.78 $ 12.36
----------- ---------- -----------
Maximum offering price per share
(NAV/(1--maximum sales
commission)) ..................... $ 12.52 $ 10.38 $ 13.11
CLASS B SHARES:
Net assets ......................... $10,531,508 $ 35,749 $ 4,147,159
Shares outstanding ................. 940,615 3,660 336,929
Net asset value, maximum offering
and redemption price per share
(Redemption may be subject to a
contingent deferred sales charge
within the first six years
of ownership) .................... $ 11.20 $ 9.77 $ 12.31
=========== ========== ===========
CLASS C SHARES:
Net assets ......................... -- -- $ 2,814,897
=========== ========== ===========
Shares outstanding ................. -- -- 228,019
=========== ========== ===========
Net asset value, maximum offering
and redemption price per share
(Redemption may be subject to
a contingent deferred sales
charge within the first year
of ownership) .................... -- -- $ 12.35
=========== ========== ===========
Net assets consist of:
Aggregate paid in capital ........ $29,138,987 $1,253,881 $34,197,147
Unrealized appreciation of
investments, swaps, forward
foreign currency contracts
and foreign currencies ......... 4,434,160 2,962 495,019
Accumulated net investment
income (loss) .................. (232,776) 2,433 67,062
Accumulated realized gain (loss) ... 3,235,275 (6,528) (13,529,741)
----------- ---------- -----------
$36,575,646 $1,252,748 $21,229,487
=========== ========== ===========
</TABLE>
----------
+ The U.S. Government Money Fund does not have a designated class of shares.
See Notes to Financial Statements
40
<PAGE>
INTERNATIONAL NATURAL
GLOBAL INVESTORS RESOURCES U.S. GOVERNMENT
LEADERS FUND GOLD FUND FUND MONEY FUND
----------- ------------ ----------- -----------
$26,025,922 $121,116,682 $28,599,027 $123,023,149
=========== ============ =========== ===========
$36,845,025 $129,054,187 $29,396,284 $116,111,083
-- -- 4,308 --
-- --
32,642 510,506 -- --
37,233 127,117 46,392 4,801
82,009 67,534,934 239 560,482
-- -- -- --
-- -- -- --
231 -- -- --
-- -- -- --
----------- ------------ ----------- -----------
36,997,140 197,226,744 29,447,223 116,676,366
----------- ------------ ----------- -----------
30,301 5,265,647 -- 40,128
-- 13,507,844 -- --
-- -- -- --
-- -- -- --
122,450 -- -- 44,430
50,764 107,684 130,470 67,532,430
41,040 266,747 64,823 37,324
17,150 32,328 8,040 19,111
2,021 3,722 2,517 10,376
-- -- -- --
1,623 20,835 5,555 --
-- 2,084 -- --
----------- ------------ ----------- -----------
265,349 19,206,891 211,405 67,683,799
----------- ------------ ----------- -----------
$36,731,791 $178,019,853 $29,235,818 $48,992,567
=========== ============ =========== ===========
$30,790,043 $178,019,853 $29,235,818 $48,992,567
=========== ============ =========== ===========
2,473,500 35,621,163 12,504,951 49,027,156
=========== ============ =========== ===========
$ 12.45 $ 5.00 $ 2.34 $ 1.00
----------- ------------ ----------- -----------
$ 13.21 $ 5.31 $ 2.48 --
$ 5,941,748 -- -- --
=========== ============ =========== ===========
485,403 -- -- --
=========== ============ =========== ===========
$ 12.24 -- -- --
=========== ============ =========== ===========
-- -- -- --
=========== ============ =========== ===========
-- -- -- --
=========== ============ =========== ===========
-- -- -- --
=========== ============ =========== ===========
$22,706,717 $196,993,434 $67,562,228 $49,027,156
10,819,204 7,930,813 797,130 --
(339,375) (376,150) (146,957) --
3,545,245 (26,528,244) (38,976,583) (34,589)
----------- ------------ ----------- -----------
$36,731,791 $178,019,853 $29,235,818 $48,992,567
=========== ============ =========== ===========
See Notes to Financial Statements
41
<PAGE>
VAN ECK FUNDS
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2000 (unaudited)
EMERGING GLOBAL
ASIA DYNASTY MARKETS HARD ASSETS
FUND VISION FUND+ FUND
----------- ---------- -----------
INCOME:
Dividends .......................... $ 306,465 $ 891 $ 295,149
Interest ........................... 14,208 6,727 21,312
Foreign taxes withheld ............. (25,815) (65) (9,563)
----------- ---------- -----------
Total income ....................... 294,858 7,553 306,898
----------- ---------- -----------
EXPENSES:
Management (Note 2) ................ 149,661 2,088 117,472
Distribution Class A (Note 4) ...... 70,858 1,018 40,268
Distribution Class B (Note 4) ...... 57,830 52 22,261
Distribution Class C (Note 4) ...... -- -- 14,675
Administration (Note 2) ............ 58,557 1,600 9,600
Transfer agent ..................... 51,907 38 68,736
Custodian .......................... 42,226 5,141 7,819
Registration ....................... 18,743 11,457 16,000
Professional ....................... 14,139 4,748 13,533
Interest expense ................... 13,158 -- 12,077
Reports to shareholders ............ 11,033 299 4,093
Trustees' fees and expenses
(Note 7) ......................... 7,330 -- 3,848
Other .............................. 8,517 495 5,996
----------- ---------- -----------
Total expenses ..................... 503,959 26,936 336,378
Expense reduction (Note 2) ........ (461) (22,721) (61,655)
----------- ---------- -----------
Net expenses ....................... 503,498 4,215 274,723
----------- ---------- -----------
Net investment income (loss) ....... (208,640) 3,338 32,175
----------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3):
Realized gain (loss) from security
transactions (Asia Dynasty Fund
is net of foreign taxes withheld
of $439,839) ..................... 3,179,311 (6,528) 246,522
Realized loss from futures
contracts ........................ -- -- (20,313)
Realized gain (loss) from options .. 122,077 -- 176,472
Realized loss from foreign
currency transactions ............ (17,101) (905) (10,684)
Change in unrealized appreciation
(depreciation) of foreign
currencies and forward foreign
currency contracts ............... 207,668 (122) (1,856)
Change in unrealized appreciation
(depreciation) of investments,
futures, swaps, short sales
and options ...................... (11,934,354) 3,084 (46,318)
----------- ---------- -----------
Net gain (loss) on investments
and foreign currency ............. (8,442,399) (4,471) 343,823
----------- ---------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS .................. $(8,651,039) $ (1,133) $ 375,998
=========== ========== ===========
----------
+ For the period April 7, 2000 (commencement of operations) to June 30, 2000.
See Notes to Financial Statements
42
<PAGE>
INTERNATIONAL NATURAL
GLOBAL INVESTORS RESOURCES U.S. GOVERNMENT
LEADERS FUND GOLD FUND FUND MONEY FUND
----------- ------------ ----------- -----------
$ 167,075 $ 945,035 $ 239,012 $ --
7,776 713,354 57,932 2,725,941
(24,061) (49,094) (5,469) --
----------- ------------ ----------- -----------
150,790 1,609,295 291,475 2,725,941
----------- ------------ ----------- -----------
141,215 532,433 121,323 242,233
79,059 177,477 40,441 121,117
30,168 -- -- --
-- -- -- --
54,896 258,840 67,509 29,723
50,575 450,336 128,124 33,574
32,102 1,023 3,784 1,771
12,683 16,163 8,498 14,169
13,498 23,983 15,532 13,556
6,049 87,155 1,537 77
10,906 54,796 12,530 18,328
4,559 18,225 5,146 20,359
5,766 24,702 13,832 11,928
----------- ------------ ----------- -----------
441,476 1,645,133 418,256 506,835
(43,769) (21,433) (13,741) --
----------- ------------ ----------- -----------
397,707 1,623,700 404,515 506,835
----------- ------------ ----------- -----------
(246,917) (14,405) (113,040) 2,219,106
----------- ------------ ----------- -----------
3,547,570 (13,481,001) (4,778,636) (23,008)
-- -- -- --
-- (2,807,750) -- --
6,302 (111,709) (33,917) --
(2,669) (6,876) (242) --
(5,371,251) (5,015,784) (631,155) --
----------- ------------ ----------- -----------
(1,820,048) (21,423,120) (5,443,950) (23,008)
----------- ------------ ----------- -----------
$(2,066,965) $(21,437,525) $(5,556,990) $ 2,196,098
=========== ============ =========== ===========
See Notes to Financial Statements
43
<PAGE>
VAN ECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ASIA DYNASTY EMERGING MARKETS GLOBAL HARD ASSETS
FUND VISION FUND FUND
-------------------------- ----------- --------------------------
FOR THE PERIOD
SIX MONTHS YEAR APRIL 7, SIX MONTHS YEAR
ENDED ENDED 2000+ TO ENDED ENDED
JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) (UNAUDITED) 1999
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) ...................... $ (208,640) $ (367,375) $ 3,338 $ 32,175 $ 90,053
Realized gain (loss) from security transactions ... 3,179,311 9,088,492 (6,528) 246,522 (3,507,118)
Realized gain (loss) from futures contracts ....... -- 80,166 -- (20,313) 340,492
Realized gain (loss) from options ................. 122,077 97,496 -- 176,472 236,704
Realized gain (loss) from foreign currency
transactions .................................... (17,101) (212,465) (905) (10,684) (46,029)
Realized loss from short sales .................... -- -- -- -- (224,439)
Change in unrealized appreciation (depreciation)
of foreign currencies and forward foreign
currency contracts .............................. 207,668 25,137 (122) (1,856) (277,731)
Change in unrealized appreciation (depreciation)
of investments, futures, swaps,
short sales and options ........................... (11,934,354) 13,553,987 3,084 (46,318) 7,685,797
----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets resulting
from operations ................................... (8,651,039) 22,265,438 375,998 4,297,729 (2,066,965)
----------- ----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income:
Class A Shares++ ................................ -- -- -- -- (21,571)
Class B Shares .................................. -- -- -- -- --
Class C Shares .................................. -- -- -- -- --
Realized gain:
Class A Shares++ ................................ -- (4,585,684) -- -- --
Class B Shares .................................. -- (1,797,699) -- -- --
Class C Shares .................................. -- -- -- -- --
Tax return of capital:
Class A Shares++ ................................ -- -- -- -- (86,282)
Class B Shares .................................. -- -- -- -- --
Class C Shares .................................. -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total dividends and distributions ................. -- (6,383,383) -- -- (107,853)
----------- ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sales of shares:
Class A Shares++ ................................... 33,639,390 47,934,490 1,322,115 6,082,570 10,858,208
Class B Shares ..................................... 2,528,406 4,235,666 35,014 89,242 932,899
Class C Shares ..................................... -- -- -- 73,545 298,652
----------- ----------- ----------- ----------- -----------
36,167,796 52,170,156 1,357,129 6,245,357 12,089,759
----------- ----------- ----------- ----------- -----------
Reinvestment of dividends:
Class A Shares++ .................................. -- 3,345,176 -- -- 90,539
Class B Shares .................................... -- 1,054,774 -- -- --
Class C Shares .................................... -- -- -- -- --
----------- ----------- ----------- ----------- -----------
-- 4,399,950 -- -- 90,539
----------- ----------- ----------- ----------- -----------
Cost of shares reacquired:
Class A Shares++ .................................. (32,911,092) (42,412,204) (103,248) (9,788,837) (19,101,929)
Class B Shares .................................... (1,434,222) (2,262,561) -- (1,061,707) (2,192,358)
Class C Shares .................................... -- -- -- (550,069) (1,626,813)
----------- ----------- ----------- ----------- -----------
(34,345,314) (44,674,765) (103,248) (11,400,613) (22,921,100)
----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
resulting from capital share
transactions .................................... 1,822,482 11,895,341 1,253,881 (5,155,256) (10,740,802)
----------- ----------- ----------- ----------- -----------
Total increase (decrease) in net assets ........... (6,828,557) 27,777,396 1,252,748 (4,779,258) (6,550,926)
NET ASSETS:
Beginning of period ............................... 43,404,203 15,626,807 -- 26,008,745 32,559,671
----------- ----------- ----------- ----------- -----------
End of period ....................................... $36,575,646 $43,404,203 $ 1,252,748 $21,229,487 $26,008,745
=========== =========== =========== =========== ===========
Undistributed (overdistributed) net
investment income (loss) .......................... $ (232,776) $ (7,035) $ 2,433 $ 67,062 $ 45,571
=========== =========== =========== =========== ===========
</TABLE>
----------
+ Comencement of operations.
++ The U.S. Government Money Fund does not have a designated class of shares.
See Notes to Financial Statements
44
<PAGE>
<TABLE>
<CAPTION>
GLOBAL LEADERS INTERNATIONAL INVESTORS GOLD NATURAL RESOURCES U.S. GOVERNMENT MONEY
FUND FUND FUND FUND
-------------------------- -------------------------------- -------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31, JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (246,917) $ (185,323) $ (14,405) $ 864,143 $ (113,040) $ (374,216) $ 2,219,106 $ 3,026,907
3,547,570 3,110,359 (13,481,001) 12,423,170 (4,778,636) (6,584,236) (23,008) (11,580)
-- -- -- -- -- -- -- --
-- -- (2,807,750) (2,405,267) -- (477,148) -- --
6,302 (67,032) (111,709) 219,126 (33,917) 41,139 -- --
-- -- -- -- -- -- -- --
(2,669) 12,670 (6,876) -- (242) -- -- --
(5,371,251) 7,121,476 (5,015,784) (12,426,887) (631,155) 2,360,158 -- --
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
9,992,150 (21,437,525) (1,325,715) (5,556,990) (5,034,303) 2,196,098 3,015,327
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
-- -- (249,989) (1,457,953) -- -- (2,219,107) (3,026,907)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
(784,465) (1,912,779) -- -- -- -- -- --
(155,002) (367,947) -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
(939,467) (2,280,726) (249,989) (1,457,953) -- -- (2,219,107) (3,026,907)
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
4,937,178 7,648,708 2,386,647,905 4,300,307,346 4,519,249 14,708,878 2,358,620,493 4,365,984,087
767,402 1,442,296 -- -- -- -- -- --
-- -- -- -- -- -- -- --
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
5,704,580 9,091,004 2,386,647,905 4,300,307,346 4,519,249 14,708,878 2,358,620,493 4,365,984,087
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
697,274 1,704,064 205,090 1,093,636 -- -- 1,194,604 1,709,890
119,878 271,969 -- -- -- -- -- --
-- -- -- -- -- -- -- --
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
817,152 1,976,033 205,090 1,093,636 -- -- 1,194,604 1,709,890
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
(5,403,748) (10,215,398) (2,356,190,617) (4,368,210,994) (9,115,299) (23,682,720) (2,408,242,730) (4,317,461,360)
(891,843) (2,551,137) -- -- -- -- -- --
-- -- -- -- -- -- -- --
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
(6,295,591) (12,766,535) (2,356,190,617) (4,368,210,994) (9,115,299) (23,682,720) (2,408,242,730) (4,317,461,360)
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
226,141 (1,699,498) 30,662,378 (66,810,012) (4,596,050) (8,973,842) (48,427,633) 50,232,617
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
(2,780,291) 6,011,926 8,974,864 (69,593,680) (10,153,040) (14,008,145) (48,450,642) 50,221,037
39,512,082 33,500,156 169,044,989 238,638,669 39,388,858 53,397,003 97,443,209 47,222,172
----------- ----------- -------------- -------------- ----------- ----------- -------------- --------------
$36,731,791 $39,512,082 $ 178,019,853 $ 169,044,989 $29,235,818 $39,388,858 $ 48,992,567 $ 97,443,209
=========== =========== ============== ============== =========== =========== ============== ==============
$ (339,375) $ (98,760) $ (376,150) $ (47) $ (146,957) $ -- $ -- $ --
=========== =========== ============== ============== =========== =========== ============== ==============
</TABLE>
See Notes to Financial Statements
45
<PAGE>
ASIA DYNASTY FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------------
SIX
MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 ------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ............. $ 14.60 $ 7.80 $ 7.82 $ 13.21 $ 12.40 $ 12.13
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Loss ............................ (0.05) (0.11)(c) (0.01) (0.28) (0.20) (0.02)
------- ------- ------- ------- ------- -------
Net Gain (Loss) on Investments
(both Realized and Unrealized) ............... (2.75) 9.35 (0.01) (3.82) 1.01 0.40
------- ------- ------- ------- ------- -------
Total from Investment Operations ................. (2.80) 9.24 (0.02) (4.10) 0.81 0.38
------- ------- ------- ------- ------- -------
Less Dividends and Distributions:
Dividends from Net Investment Income ........... -- -- -- -- -- (0.09)
------- ------- ------- ------- ------- -------
Distributions from Capital Gains ............... -- (2.44) -- (1.15) -- --
Tax Return of Capital .......................... -- -- -- (0.14) -- (0.02)
------- ------- ------- ------- ------- -------
Total Dividends and Distributions ................ -- (2.44) -- (1.29) -- (0.11)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period ................... $ 11.80 $ 14.60 $ 7.80 $ 7.82 $ 13.21 $ 12.40
======= ======= ======= ======= ======= =======
Total Return (a) ................................. (19.18)% 118.46% (0.26)% (32.10)% 6.53% 3.13%
-----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) .................. $26,044 $31,385 $10,685 $12,873 $44,351 $64,275
Ratio of Gross Expenses to Average Net Assets .... 2.31%(d) 2.82% 3.13% 2.38% 2.42% 2.03%
Ratio of Net Expenses (Net of interest expense)
to Average Net Assets .......................... 2.24%(b)(d) 2.82% 2.43%(b) 2.38% 2.42% 2.03%
Ratio of Net Investment Loss to
Average Net Assets ............................. (0.78)%(d) (1.03)% (0.09)% (0.76)% (0.73)% (0.08)%
Portfolio Turnover Rate .......................... 49.19% 172.18% 121.96% 200.45% 52.99% 57.06%
</TABLE>
CLASS B
------------------------------------------------------------------------------
SIX
MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 -----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------- ------- ------ ------- ------- -------
$ 13.90 $ 7.54 $ 7.63 $ 13.08 $ 12.33 $ 12.09
------- ------- ------ ------- ------- -------
(0.09) (0.24)(c) (0.07) (0.30) (0.24) (0.08)
------- ------- ------ ------- ------- -------
(2.61) 9.04 (0.02) (3.86) 0.99 0.40
------- ------- ------ ------- ------- -------
(2.70) 8.80 (0.09) (4.16) 0.75 0.32
------- ------- ------ ------- ------- -------
-- -- -- -- -- (0.06)
------- ------- ------ ------- ------- -------
-- (2.44) -- (1.15) -- --
-- -- -- (0.14) -- (0.02)
------- ------- ------ ------- ------- -------
-- (2.44) -- (1.29) -- (0.08)
------- ------- ------ ------- ------- -------
$ 11.20 $ 13.90 $ 7.54 $ 7.63 $ 13.08 $ 12.33
======= ======= ====== ======= ======= =======
(19.42)% 116.71% (1.18)% (32.87)% 6.08% 2.65%
--------------------------------------------------------------------------------
$10,532 $12,019 $4,942 $ 6,914 $20,296 $27,234
3.06%(d) 3.89% 3.83% 3.00% 2.86% 2.41%
2.99%(b)(d) 3.89% 3.14%(b) 3.00% 2.86% 2.41%
(1.47)%(d) (2.21)% (0.79)% (1.36)% (1.14)% (0.52)%
49.19% 172.18% 121.96% 200.45% 52.99% 57.06%
----------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distributions 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 dividends and return. Total return for a period of less than one
year is not annualized.
(b) After expenses reduced by a custodian fee arrangement and/or directed
brokerage arrangement.
(c) Based on average shares outstanding.
(d) Annualized.
See Notes to Financial Statements
46
<PAGE>
EMERGING MARKETS VISION FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period:
CLASS A CLASS B
-------------- --------------
FOR THE PERIOD FOR THE PERIOD
APRIL 7, 2000(a) APRIL 7, 2000(a)
TO TO
JUNE 30, 2000 JUNE 30, 2000
(UNAUDITED) (UNAUDITED)
-------------- --------------
Net Asset Value, Beginning of Period ........ $ 10.00 $ 10.00
------- -------
Income from Investment Operations:
Net Investment Income ..................... 0.03 0.01
Net Loss on Investments
(both Realized and Unrealized) .......... (0.25) (0.24)
------- -------
Total from Investment Operations ............ (0.22) (0.23)
------- -------
Less Dividends and Distributions:
Dividends from Net Investment Income ...... -- --
Net Distributions from Capital Gains ...... -- --
Tax Return of Capital ..................... -- --
------- -------
Total Dividends and Distributions ........... -- --
======= =======
Net Asset Value, End of Period .............. $ 9.78 $ 9.77
======= =======
Total Return (b) ............................ (2.20)% (2.30)%
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ............. $ 1,217 $ 36
Ratio of Gross Expenses to
Average Net Assets ........................ 11.59%(d) 64.02%(d)
Ratio of Net Expenses to
Average Net Assets (c) .................... 2.00%(d) 2.75%(d)
Ratio of Net Investment Income to
Average Net Assets ........................ 1.63%(d) 0.38%(d)
Portfolio Turnover Rate ..................... 23.28% 23.28%
----------
(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 distributions 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 for a period of less than one year is not annualized.
(c) After expenses reduced by an Advisory fee waiver arrangement.
(d) Annualized.
See Notes to Financial Statements
47
<PAGE>
GLOBAL HARD ASSETS FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
CLASS A CLASS B
-------------------------------------------------- ------------------------------------------------
FOR THE PERIOD
APRIL 24,
SIX MONTHS SIX MONTHS YEAR ENDED 1996(a)
ENDED YEAR ENDED DECEMBER 31, ENDED DECEMBER 31, TO
JUNE 30, 2000 ----------------------------------- JUNE 30, 2000 -------------------- DECEMBER 3,
(UNAUDITED) 1999 1998 1997 1996 1995 (UNAUDITED) 1999 1998 1997 1996
--------- ---- ---- ---- ---- ---- -------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ............ $12.01 $10.34 $15.50 $14.42 $10.68 $ 9.41 $12.00 $10.37 $15.60 $14.50 $12.55
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income (Loss) ... 0.04 0.07 0.10 0.05 0.15 0.32(e) (0.01) (0.03) 0.01 (0.01) 0.11
Net Gain (Loss) on Investments
(both Realized and Unrealized) 0.31 1.65 (5.09) 2.01 4.70 1.57 0.32 1.66 (5.08) 2.00 2.95
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations . 0.35 1.72 (4.99) 2.06 4.85 1.89 0.31 1.63 (5.07) 1.99 3.06
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less Dividends and Distributions:
Dividends from
Net Investment Income ........ -- (0.01) (0.15) (0.02) (0.14) (0.62) -- -- (0.14) -- (0.14)
Net Distributions from
Capital Gains ................ -- -- (0.02) (0.96) (0.95) -- -- -- (0.02) (0.89) (0.95)
Tax Return of Capital .......... -- (0.04) -- -- (0.02) -- -- -- -- -- (0.02)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Dividends and Distributions. -- (0.05) (0.17) (0.98) (1.11) (0.62) -- -- (0.16) (0.89) (1.11)
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Net Asset Value, End of Period ... $12.36 $12.01 $10.34 $15.50 $14.42 $10.68 $12.31 $12.00 $10.37 $15.60 $14.50
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return (b) ................. 2.91% 16.64% (32.25)% 14.29% 45.61% 20.09% 2.58% 15.72% (32.55)% 13.72% 24.55%
---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000)...$14,267 $17,757 $22,969 $61,341 $27,226 $3,820 $4,147 $5,029 $5,580 $10,541 $1,806
Ratio of Gross Expenses to
Average Net Assets ............. 2.51%(d) 2.89% 2.11% 2.00% 2.63% 4.05% 3.38%(d) 3.79% 2.81% 2.73% 3.27%(d)
Ratio of Net Expenses to
Average Net Assets (net of
interest expense) (c) .......... 2.00%(d) 2.00% 2.00% 1.97% 0.72% -- 2.75%(d) 2.71% 2.50% 2.50% 1.64%(d)
Ratio of Net Investment Income
(Loss) to Average Net Assets ... 0.49%(d) 0.49% 0.58% 0.36% 1.45% 3.08% (0.20)%(d) (0.23)% 0.12% (0.13)% 0.53%(d)
Portfolio Turnover Rate .......... 44.32% 195.00% 167.79% 118.10% 163.91% 179.33% 44.32% 195.00% 167.79% 118.10% 163.91%
</TABLE>
CLASS C
---------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 ----------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------- ------ ------ ------ ------ ------
$12.04 $10.40 $15.64 $14.52 $10.76 $ 9.41
------ ------ ------ ------ ------ ------
(0.01) (0.03) 0.01 (0.01) 0.11 0.34
0.32 1.67 (5.09) 2.00 4.73 1.63
------ ------ ------ ------ ------ ------
0.31 1.64 (5.08) 1.99 4.84 1.97
------ ------ ------ ------ ------ ------
-- -- (0.14) -- (0.11) (0.62)
-- -- (0.02) (0.87) (0.95) --
-- -- -- -- (0.02) --
------ ------ ------ ------ ------ ------
-- -- (0.16) (0.87) (1.08) (0.62)
====== ====== ====== ====== ====== ======
$12.35 $12.04 $10.40 $15.64 $14.52 $10.76
====== ====== ====== ====== ====== ======
2.57% 15.77% (32.53)% 13.71% 45.18% 20.94%
---------------------------------------------------------------
$2,815 $3,223 $4,011 $8,698 $1,935 $181
4.00%(d) 4.15% 3.00% 2.94% 6.02% 37.88%
2.75%(d) 2.71% 2.50% 2.50% 1.31% --
(0.18%)(d) (0.22)% 0.11% (0.15)% 0.84% 3.30%
44.32% 195.00% 167.79% 118.10% 163.91% 179.33%
---------------
(a) Commencement of offering.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distributions 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 for a period of less than one year is not
annualized.
(c) After expenses reduced by a custodian fee, directed brokerage and/or
Advisory fee waiver arrangement.
(d) Annualized.
(e) Based on average shares outstanding.
See Notes to Financial Statements
48
<PAGE>
GLOBAL LEADERS FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 ---------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ............. $13.49 $10.78 $10.38 $10.37 $10.31 $9.07
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income (loss) ................... (0.08) (0.06) 0.02 0.10 0.12 0.07(a)
Net Gain on Investments (both Realized
and Unrealized) ............................... (0.63) 3.59 2.07 1.43 1.15 1.31
------ ------ ------ ------ ------ ------
Total from Investment Operations ................. (0.71) 3.53 2.09 1.53 1.27 1.38
------ ------ ------ ------ ------ ------
Less Dividends and Distributions:
Dividends from Net Investment Income ........... -- -- -- (0.08)(d) (0.11) (0.14)
Distribution from Capital Gains ................ (0.33) (0.82) (1.61) (1.43) (1.10) --
Tax Return of Capital .......................... -- -- (0.08) (0.01) -- --
------ ------ ------ ------ ------ ------
Total Dividends and Distributions ................ (0.33) (0.82) (1.69) (1.52) (1.21) (0.14)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period ................... $12.45 $13.49 $10.78 $10.38 $10.37 $10.31
====== ====== ====== ====== ====== ======
Total Return (b) ................................. (5.30)% 32.83% 20.65% 14.77% 12.28% 15.30%
--------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) .................. $30,790 $33,070 $27,461 $24,630 $29,331 $30,632
Ratio of Gross Expenses to Average Net Assets .... 2.11%(e) 2.20% 2.32% 2.45% 2.54% 2.69%
Ratio of Net Expenses to Average Net Assets
(Net of interest expense) ...................... 2.00%(c)(e) 2.00%(c) 2.00%(c) 2.00%(c) 2.17%(c) 2.69%
Ratio of Net Investment Income (Loss) to
Average Net Assets ............................ (1.23)%(e) (0.48)% 0.85% 0.85% 1.05% 0.68%
Portfolio Turnover Rate .......................... 43.46% 86.14% 87.79% 78.07% 114.30% 196.69%
CLASS B
-----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 ---------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
--------- ---- ---- ---- ---- ----
$13.31 $10.67 $10.31 $10.32 $10.28 $9.02
------ ------ ------ ------ ------ -----
(0.11) (0.12) -- 0.04 0.06 0.01
(0.63) 3.56 2.02 1.43 1.14 1.28
------ ------ ------ ------ ------ -----
(0.74) 3.44 2.02 1.47 1.20 1.29
------ ------ ------ ------ ------ -----
-- -- -- (0.03)(d) (0.06) (0.03)
(0.33) (0.80) (1.61) (1.45) (1.10) --
-- -- (0.05) -- -- --
------ ------ ------ ------ ------ -----
(0.33) (0.80) (1.66) (1.48) (1.16) (0.03)
------ ------ ------ ------ ------ -----
$12.24 $13.31 $10.67 $10.31 $10.32 $10.28
====== ====== ====== ====== ====== ======
(5.60)% 32.27 20.07% 14.26% 11.49% 14.54%
--------------------------------------------------------------------------
$5,942 $6,442 $6,039 $5,055 $4,932 $6,151
3.11%(e) 3.21% 3.25% 2.51% 3.19% 3.20%
2.50%(c)(e) 2.50%(c) 2.50%(c) 2.50%(c) 2.71%(c) 3.20%
(1.74)%(e) (0.94)% 0.36% 0.36% 0.51% 0.14%
43.46% 86.14% 87.79% 78.07% 114.30% 196.69%
</TABLE>
-----------------
(a) Based on average shares outstanding.
(b) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distributions 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 for a period of less than one year is not
annualized.
(c) After expenses reduced by a custodian fee, directed brokerage or Advisory
fee waiver arrangement.
(d) Net of foreign taxes withheld (to be included in income and claimed as a tax
credit on deduction by the shareholder for federal income tax purposes) of
$0.01 for 1997.
(e) Annualized.
See Notes to Financial Statements
49
<PAGE>
INTERNATIONAL INVESTORS GOLD FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 -----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ............. $5.73 $6.59 $7.54 $11.90 $13.35 $15.21
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income ......................... -- 0.03 0.06 0.09 0.05 0.08
Net Loss on Investments (both Realized
and Unrealized) .............................. (0.72) (0.84) (0.95) (4.36) (1.29) (1.44)
------ ------ ------ ------ ------ ------
Total from Investment Operations ................. (0.72) (0.81) (0.89) (4.27) (1.24) (1.36)
------ ------ ------ ------ ------ ------
Less Dividends and Distributions:
Dividends from Net Investment Income ........... (0.01) (0.05) (0.06) (0.09) (0.07) (0.10)
Distributions from Capital Gains ............... -- -- -- -- (0.14) (0.38)
Tax Return of Capital .......................... -- -- -- -- -- (0.02)
------ ------ ------ ------ ------ ------
Total Dividends and Distributions ................ (0.01) (0.05) (0.06) (0.09) (0.21) (0.50)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period ................... $5.00 $5.73 $6.59 $7.54 $11.90 $13.35
====== ====== ====== ====== ====== ======
Total Return (a) ................................. (12.56)% (12.37)% (11.87)% (36.00)% (9.37)% (8.93)%
--------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) .................. $178,020 $169,045 $238,639 $232,944 $409,331 $519,795
Ratio of Gross Expenses to Average Net Assets .... 2.32%(c) 2.09% 1.78% 1.52% 1.43% 1.42%
Ratio of Net Expenses to Average Net Assets
(Net of interest expense) ..................... 2.29%(b)(c) 2.08%(b) 1.76%(b) 1.47%(b) 1.43% 1.42%
Ratio of Net Investment Income (Loss) to
Average Net Assets ............................ (0.02)%(c) 0.46% 0.99% 0.90% 0.36% 0.55%
Portfolio Turnover Rate .......................... 47.93% 94.67% 86.65% 19.99% 12.45% 4.10%
</TABLE>
----------------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distributions 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 for a period of less than one year is not
annualized.
(b) After expenses reduced by a custodian fee or directed brokerage arrangement.
(c) Annualized.
See Notes to Financial Statements
50
<PAGE>
NATURAL RESOURCES FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 -----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .............. $2.73 $3.04 $3.47 $5.72 $5.58 $5.35
------ ------ ------ ------ ------ ------
Income from Investment Operations
Net Investment Loss ............................. (0.01) (0.03) (0.04) (0.04) (0.06) (0.03)
Net Gain (Loss) on Investments
(both Realized and Unrealized) ............... (0.38) (0.28) (0.39) (2.21) 0.20 0.26
------ ------ ------ ------ ------ ------
Total from Investment Operations .................. (0.39) (0.31) (0.43) (2.25) 0.14 0.23
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period .................... $2.34 $2.73 $3.04 $3.47 $5.72 $5.58
====== ====== ====== ====== ====== ======
Total Return (a) .................................. (14.29)% (10.20)% (12.39)% (39.34)% 2.51% 4.30%
-------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ................... $29,236 $39,389 $53,397 $66,151 $132,298 $155,974
Ratio of Gross Expenses to Average Net Assets ..... 2.59%(c) 2.52% 2.24% 1.87% 1.71% 1.81%
Ratio of Net Expenses to Average Net Assets
(Net of interest expense) ...................... 2.50%(b)(c) 2.51%(b) 2.21%(b) 1.87% 1.71% 1.81%
Ratio of Net Investment Loss to
Average Net Assets ............................. (0.70)%(c) (0.84)% (0.98)% (0.57)% (0.75)% (0.44)%
Portfolio Turnover Rate ........................... 86.08% 95.44% 79.99% 32.46% 12.95% 6.16%
</TABLE>
--------------------
(a) 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.
(b) After expenses reduced by a custodian fee or directed brokerage arrangement.
(c) Annualized.
See Notes to Financial Statements
51
<PAGE>
U.S. GOVERNMENT MONEY FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 -----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ............. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income .......................... 0.02 0.03 0.04 0.04 0.04 0.05
Less Distributions to Shareholders:
Dividends from Net Investment Income ........... (0.02) (0.03) (0.04) (0.04) (0.04) (0.05)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period ................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
Total Return ..................................... 4.42%(a) 3.43% 3.88% 3.77% 3.85% 4.56%
--------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) .................. $48,993 $97,443 $47,222 $76,650 $107,698 $70,130
Ratio of Gross Expenses to
Average Net Assets ............................ 1.05%(a) 1.15% 1.20% 1.28% 1.23% 1.25%
Ratio of Net Investment Income to
Average Net Assets ............................ 4.58%(a) 3.68% 3.89% 3.91% 4.02% 4.45%
</TABLE>
-----------
(a) Annualized.
See Notes to Financial Statements
52
<PAGE>
VAN ECK FUNDS
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 Trust operates as a series fund currently
comprised of six portfolios: Asia Dynasty Fund, Emerging Markets Vision Fund,
Global Hard Assets Fund, Global Leaders Fund International Investors Gold Fund,
Natural Resources Fund (name changed on May 1, 2000 from Gold/Resources Fund)
and U.S. Government Money Fund (the "Funds"). Asia Dynasty Fund, Emerging
Markets Vision Fund and U.S. Government Money Fund are classified as diversified
funds under the Investment Company Act of 1940, as amended. Global Hard Assets
Fund, Global Leaders Fund, International Investors Gold Fund and Natural
Resources Fund (formerly Gold/Resources Fund) are non-diversified funds. The
following is a summary of significant accounting policies consistently followed
by the Funds in the preparation of their financial statements. The policies are
in conformity with accounting principles generally accepted in the United
States. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts in the financial
statements. Actual results could differ from those estimates.
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 amortized cost, which
with accrued interest approximates value. Forward foreign currency contracts
are valued at the spot currency rate plus an amount ("points") which
reflects the differences in interest rates between the U.S. and foreign
markets. 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 each Fund's policy to comply with the provisions
of the Internal Revenue Code applicable to regulated investment companies
and to distribute all of their taxable income to their shareholders.
Therefore, no federal income tax provision is required.
C. CURRENCY TRANSLATION--Assets and liabilities denominated in foreign
currencies and commitments under forward foreign 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. Realized gains or losses and the appreciation
(depreciation) attributable to foreign currency fluctuations on other
foreign currency denominated assets and liabilities are recorded as net
realized or unrealized gains and losses from foreign currency transactions,
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.
Dividends on foreign securities are recorded when the Fund is informed of
such dividends. Interest income is accrued as earned.
E. DISTRIBUTIONS TO SHAREHOLDERS--Dividends to shareholders from net investment
income and realized gains, if any, are recorded on the ex-dividend date.
Income and capital gains distributions are determined in accordance with
income tax regulations which may differ from such amounts determined in
accordance with accounting principles generally accepted in the United
States.
USE OF DERIVATIVE INSTRUMENTS
G. OPTION CONTRACTS--The Funds (except U.S. Government Money Fund) may invest,
for hedging and other purposes, in call and put options on securities,
currencies and commodities. Call and put options give the Funds the right
but not the obligation to buy (calls) or sell (puts) the instrument
underlying the option at a specified price. The premium paid on the option,
should it be exercised, will, on a call, increase the cost of the instrument
acquired and, on a put, reduce the proceeds received from the sale of the
instrument underlying the option. If the options are not exercised, the
premium paid will be recorded as a capital loss upon expiration. The Funds
may incur additional risk to the extent the value of the underlying
instrument does not correlate with the movement of the option value.
The Funds (except U.S. Government Money Fund) may also write call or put
options. As the writer of an option, the Funds receive a premium. The Funds
keep the premium whether or not the option is exercised. The premium will be
recorded, upon expiration of the option, as a short-term capital gain. If
the option is exercised, the Funds must sell, in the case of a written call,
or buy, in the case of a written put, the underlying instrument at the
exercise price. The Funds may write only covered puts and calls. A covered
call option is an option in which the Funds own the instrument underlying
the call. A covered call sold by the Funds expose them during the term of
the option to possible loss of opportunity to realize appreciation in the
market price of the underlying instrument or to possible continued holding
of an underlying instrument which might otherwise have been sold to protect
against a decline in the market price of the underlying instrument. A
covered put exposes the Funds during the term of the option to a decline in
price of the underlying instrument. A put option sold by the Funds is
covered when, among other things, cash or short-term liquid securities are
placed in a segregated account to fulfill the obligations undertaken. The
Funds may incur additional risk from investments in written currency options
if there are unanticipated movements in the underlying currencies.
H. SHORT SALES--The Global Hard Assets Fund may make short sales of equity
securities. A short sale occurs when the Fund sells a security which it does
not own by borrowing it from a broker. In the event that the value of the
security that the Fund sold short declines, the Fund will gain as it
repurchases the security in the market at the lower price. If the price of
the security increases, the Fund will suffer a loss as it will have to
repurchase the security at the higher price. Short sales may
53
<PAGE>
VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
incur higher transaction costs than regular securities transactions.
Cash is deposited in a segregated account with brokers, maintained by the
Fund, for its open short sales. Proceeds from securities sold short are
reported as liabilities and are marked to market. Gains and losses are
classified as realized when short positions are closed.
I. FUTURES--The Funds (except U.S. Government Money Fund) may buy and sell
financial futures contracts which may include security and interest-rate
futures, stock and bond index futures contracts and foreign currency futures
contracts. The Funds may engage in these transactions for hedging purposes
and (except for Gold/Resources Fund) for other purposes. Global Hard Assets
Fund may also buy and sell commodity futures contracts, which may include
futures on natural resources and natural resource indices. A security or
interest-rate futures contract is an agreement between two parties to buy or
sell a specified security at a set price on a future date. An index futures
contract is an agreement to take or make delivery of an amount of cash based
on the difference between the value of the index at the beginning and at the
end of the contract period. A foreign currency futures contract is an
agreement to buy or sell a specified amount of currency for a set price on a
future date. A commodity futures contract is an agreement to take or make
delivery of a specified amount of a commodity, such as gold, at a set price
on a future date.
J. STRUCTURED NOTES--The Funds may invest in indexed securities whose value is
linked to one or more currencies, interest rates, commodities or financial
or commodity indices. When the Fund purchases a structured note (a
non-publicly traded indexed security entered into directly between two
parties) it will make a payment of principal to the counterparty. The Fund
will purchase structured notes only from counterparties rated A or better by
S&P, Moody's or another nationally recognized statistical rating
organization. Van Eck Associates Corporation will monitor the liquidity of
structured notes under supervision of the Board of Trustees and structured
notes determined to be illiquid will be aggregated with other illiquid
securities and limited to 15% of the net assets of the Fund.
Indexed securities may be more volatile than the underlying instrument
itself, and present many of the same risks as investing in futures and
options. Indexed securities are also subject to credit risks associated with
the issuer of the security with respect to both principal and interest. At
June 30, 2000, the following structured notes were outstanding:
% OF NET
VALUE ASSETS
----- ------
BUSINESS DEVELOPMENT BANK OF CANADA
GOLD LINKED NOTE @ 2.50% DUE 12/06/00
International Investors Gold Fund ......... $5,513,600 3.1%
Natural Resources Fund .................... $1,378,400 4.7%
NOTE 2--MANAGEMENT--Van Eck Associates Corporation (the "Adviser") earns fees
for investment management and advisory services. The Asia Dynasty Fund and
Global Leaders Fund each pay the Adviser a monthly fee at the annual rate of
.75% of average daily net assets. The Emerging Markets Vision and Global Hard
Assets Funds pay the Adviser a monthly fee at the annual rate of 1% of average
daily net assets, a portion of which is paid to the Adviser for accounting and
administrative services it provides to the Fund. The International Investors
Gold and Natural Resources Funds each pay the Adviser a monthly fee at the
annual rate of .75 of 1% of the first $500 million of average daily net assets
of the Fund, .65 of 1% of the next $250 million of average daily net assets and
.50 of 1% of average daily net assets in excess of $750 million. The U.S.
Government Money Fund pays the Adviser a monthly fee at the annual rate of .50
of 1% of the first $500 million of average daily net assets, .40 of 1% of the
next $250 million of average daily net assets and .375 of 1% of average daily
net assets in excess of $750 million.
In accordance with the advisory agreement, the Funds reimbursed Van Eck
Associates Corporation for costs incurred in connection with certain
administrative and operating functions. The Funds reimbursed costs in the
following amounts: $8,670 Asia Dynasty Fund, $1,600 Emerging Markets Vision
Fund, $9,600 Global Hard Assets Fund, $7,825 Global Leaders Fund, $81,362
International Investors Gold Fund, $27,068 Natural Resources Fund and $967 U.S.
Government Money Fund.
For the period April 7, 2000 (commencement of operations) to June 30, 2000, the
Adviser agreed to assume expenses exceeding 2% of average daily net assets for
Class A shares and 2.75% of average daily net assets for Class B shares for the
Emerging Markets Vision Fund. Expenses were reduced by $22,721 (10.88% of
average net assets) under this agreement. For the six months ended June 30,
2000, the Adviser agreed to assume expenses exceeding 2% of average daily net
assets for Class A shares and 2.75% of average daily net assets for Class B and
C shares, for the Global Hard Assets Fund. Expenses were reduced by $61,655
(0.52% of average net assets) under this agreement. For the six months ended
June 30, 2000, the Adviser agreed to assume expenses exceeding 2% of average
daily net assets for Class A shares and 2.5% of average daily net assets for
Class B shares for the Global Leaders Fund. Expenses were reduced by $43,769
(0.23% of average net assets) under this agreement.
Van Eck Associates Corporation also performs accounting and administrative
services for Asia Dynasty Fund, Global Leaders Fund, International Investors
Gold Fund and Natural Resources Fund and is paid at an annual rate of .25 of 1%
of average daily net assets (Asia Dynasty Fund and Global Leaders Fund) or at an
annual rate of .25 of 1% of the first $750 million of each Fund's average daily
net assets and .20 of 1% of average daily net assets in excess of $750 million
(International Investors Gold Fund and Natural Resources Fund).
Asia Dynasty Fund, International Investors Gold Fund and Natural Resources Fund
have directed portfolio trades to brokers who paid a portion of the Funds'
expenses. The Funds' expenses were reduced by $461 (0.002% of average net
assets), $21,433 (0.03% of average net assets) and $13,741 (0.08% of average net
assets), respectively, under this arrangement for the six months ended June 30,
2000.
The Funds have a fee arrangement based on cash balances left on deposit with the
custodian which reduces operating expenses.
For the six months ended June 30, 2000, Van Eck Securities Corporation (the
"Distributor") received $162,814 in sales loads of which $34,933 was reallowed
to broker dealers.
54
<PAGE>
VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
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, 2000, the Adviser owned 54% of the outstanding
shares of beneficial interest of the Van Eck Emerging Markets Vision Fund Class
A shares.
NOTE 3--INVESTMENTS--For federal income tax purposes, the identified cost of
investments owned at June 30, 2000 is $30,534,390, $1,239,965 $20,227,970,
$26,025,922 $121,116,682 and $28,599,027 for the Asia Dynasty Fund, Emerging
Markets Vision Fund, Global Hard Assets Fund, Global Leaders Fund, International
Investors Gold Fund and Natural Resources Fund, respectively. The U.S.
Government Money Fund's identified cost for federal income taxes is the same for
financial reporting purposes. As of June 30, 2000, gross unrealized gains and
losses were as follows:
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
Asia Dynasty Fund .............. $9,327,504 $4,632,647 $4,694,857
Emerging Markets Vision Fund ... 57,344 54,260 3,084
Global Hard Assets Fund ........ 3,462,185 2,965,613 496,572
Global Leaders Fund ............ 12,363,844 1,544,741 10,819,103
International Investors
Gold Fund ................... 23,983,949 16,046,444 7,937,505
Natural Resources Fund ......... 3,863,049 3,065,792 797,257
At December 31, 1999 the Funds had the following capital loss carryforward
available to offset future capital gains; Asia Dynasty Fund $2,192,520 expiring
December 31, 2006; Global Hard Assets Fund $13,402,718, of which $10,038,525
expires December 31, 2006 and $3,364,193 expires December 31, 2007;
International Investors Gold Fund $8,068,512 expiring December 31, 2006; Natural
Resources Fund $34,017,791, of which $7,559,429 expires December 31, 2000,
$4,289,233 expires December 31, 2005 and $13,306,791 expires December 31, 2006,
and $8,862,338 expires December 31, 2007; U.S. Government Money Fund $9,832
expiring December 31, 2007.
Purchases and sales of investment securities for the six months ended June 30,
2000, other than short-term obligations, were as follows:
PROCEEDS
COST OF FROM
INVESTMENT INVESTMENT
SECURITIES SECURITIES
PURCHASED SOLD
---------- ----------
Asia Dynasty Fund ................... $21,603,132 $18,904,441
Emerging Markets Vision Fund ........ 995,867 88,374
Global Hard Assets Fund ............. 10,064,595 15,641,617
Global Leaders Fund ................. 16,448,128 16,632,958
International Investors Gold Fund ... 60,390,442 59,152,535
Natural Resources Fund .............. 26,813,644 31,552,672
Transactions in put/call options written for the six months ended June 30, 2000
were as follows:
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- --------
GLOBAL HARD ASSETS FUND:
Options outstanding at 12/31/99 ..... 300 $349,000
Options written ..................... 120 120,000
Options closed ...................... (300) (349,000)
Options expired ..................... (120) (120,000)
----- ---------
Options outstanding at 6/30/00 ...... -- $ --
===== =========
NOTE 4--12B-1 PLANS OF DISTRIBUTION--Pursuant to Rule 12b-1 Plans of
Distribution (the "Plans") all of the Funds are authorized to incur distribution
expenses which will principally be payments to securities dealers who have sold
shares and serviced 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 Funds.
The distribution plan for the International Investors Gold Fund was effective
May 1, 1999. The amount paid under the Plans in any one year is limited to 0.50%
of average daily net assets (except for International Investors Gold Fund,
Natural Resources Fund and U.S. Government Money Fund which is 0.25%) for Class
A shares and 1% of average daily net assets for Classes B and C shares (the
"Annual Limitations"). For Class C shares, the Funds will pay to the selling
broker at the time of sale 1% of the amount of the purchase. Such Class C 12b-1
fees will be expensed by the Funds over the course of the first twelve months
from the time of purchase. Should the payments to the brokers made by the Funds
exceed, on an annual basis, 1% of average daily net assets, VESC will reimburse
the Funds for any excess. Class C shareholders redeeming within one year of
purchase will be subject to a 1% redemption charge which will be retained by the
Funds. 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 Plans that have not been paid because
they exceed the Annual Limitation may be carried forward to future years and
paid by the Funds within the Annual Limitation.
VESC has waived its right to reimbursement of the carried forward amounts
incurred through June 30, 2000 in the event the Plans are terminated, unless the
Board of Trustees determines that reimbursement of the carried forward amounts
is appropriate.
The accumulated amount of excess distribution expenses incurred over the Annual
Limitations as of June 30, 2000, were as follows:
Asia Dynasty Fund - Class A $1,317,067
Asia Dynasty Fund - Class B 1,533,415
Emerging Markets Vision Fund - Class A 14,945
Emerging Markets Vision Fund - Class B 14,456
Global Hard Assets Fund - Class A 923,161
Global Hard Assets Fund - Class B 129,483
Global Hard Assets Fund - Class C 304,808
Global Leaders Fund - Class A 966,787
Global Leaders Fund - Class B 450,286
55
<PAGE>
VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
NOTE 5--SHAREHOLDER TRANSACTIONS--Shares of Beneficial Interest issued and
redeemed (unlimited number of $.001 par value shares authorized):
ASIA DYNASTY FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------------------------
CLASS A
Shares sold 2,449,076 4,258,905
Shares reinvested -- 229,122
--------- ---------
2,449,076 4,488,027
Shares reacquired (2,392,562) (3,708,372)
--------- ---------
Net increase 56,514 779,655
========= =========
CLASS B
Shares sold 190,548 350,409
Shares reinvested -- 75,883
--------- ---------
190,548 426,292
Shares reacquired (114,714) (216,757)
--------- ---------
Net increase 75,834 209,535
========= =========
EMERGING MARKETS VISION FUND
------------------------------
FOR THE PERIOD
APRIL 7, 2000+ TO
JUNE 30, 2000
(UNAUDITED)
--------------
CLASS A
Shares sold 134,918
Shares reacquired (10,464)
-------
Net increase 124,454
=======
CLASS B
Shares sold 3,660
Shares reacquired --
-------
Net increase 3,660
=======
+ Commencement of operations.
GLOBAL HARD ASSETS FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
--------------------------------
CLASS A
Shares sold 500,922 923,841
Reinvestment of dividends -- 7,699
--------- ---------
500,922 931,540
Shares reacquired (825,415) (1,673,331)
--------- ---------
Net decrease (324,493) (741,791)
========= =========
CLASS B
Shares sold 7,330 79,508
Reinvestment of dividends -- --
--------- ---------
7,330 79,508
Shares reacquired (89,369) (198,644)
--------- ---------
Net decrease (82,039) (119,136)
========= =========
CLASS C
Shares sold 6,265 25,965,
Shares reinvested -- --
--------- ---------
6,265 25,965
Shares reacquired (46,015) (143,976)
--------- ---------
Net decrease (39,750) (118,011)
========= =========
GLOBAL LEADERS FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
---------------------------------
CLASS A
Shares sold 376,316 658,810
Shares reinvested 56,005 127,531
--------- ---------
432,321 786,341
Shares reacquired (409,854) (883,573)
--------- ---------
Net increase (decrease) 22,467 (97,232)
========= =========
CLASS B
Shares sold 61,130 129,131
Shares reinvested 9,793 20,507
--------- ---------
70,923 149,638
Shares reacquired (69,718) (231,450)
--------- ---------
Net increase (decrease) 1,205 (81,812)
========= =========
INTERNATIONAL INVESTORS GOLD FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
---------------------------------
CLASS A
Shares sold 467,907,097 700,390,969
Shares reinvested 42,199 172,459
----------- -----------
467,949,296 700,563,428
Shares reacquired (461,838,699) (707,247,143)
----------- -----------
Net increase (decrease) 6,110,597 (6,683,715)
=========== ===========
NATURAL RESOURCES FUND
------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
-------------------------------
CLASS A
Shares sold 1,791,102 5,063,633
Shares reacquired (3,699,018) (8,201,348)
--------- ---------
Net decrease (1,907,916) (3,137,715)
========= =========
U.S. GOVERNMENT MONEY FUND
----------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31,
(UNAUDITED) 1999
----------------------------------
CLASS A
Shares sold 2,358,620,493 4,365,984,087
Shares reinvested 1,194,604 1,709,890
------------- -------------
2,359,815,097 4,367,693,977
Shares reacquired (2,408,242,730) (4,317,461,360)
------------- -------------
Net increase (decrease) (48,427,633) 50,232,617
============= =============
NOTE 6--FORWARD FOREIGN CURRENCY CONTRACTS--The Funds (except U.S. Government
Money Fund) may buy and sell forward foreign currency contracts to settle
purchases and sales of foreign denominated securities. In addition, the Funds
(except U.S. Government Money Fund) may enter into forward currency contracts to
hedge foreign denominated assets. Realized gains and losses from forward foreign
currency contracts are included in realized loss from foreign currency
transactions. At June 30, 2000, the following forward foreign currency contracts
were outstanding:
56
<PAGE>
VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
UNREALIZED
CURRENT APPRECIATION
CONTRACTS PROCEEDS VALUE (DEPRECIATION)
--------------------------------------------------------------------------------
ASIA DYNASTY FUND
Foreign Currency Sale Contracts:
IDR 158,787,670
expiring 7/3/00-7/05/00 $18,120 $18,131 ($11)
GLOBAL HARD ASSETS FUND
Foreign Currency Sale Contract:
AUD 348,397 expiring 7/05/00 $208,395 $207,123 ($1,272)
GLOBAL LEADERS FUND
Foreign Currency Sale Contract:
JPY 31,961,100
expiring 7/10/00 $302,175 $301,944 $231
INTERNATIONAL INVESTORS
GOLD FUND
Foreign Currency Sale Contracts:
AUD 759,660
expiring 7/03/00-7/05/00 $452,306 $454,390 ($2,084)
NOTE 7--TRUSTEE DEFERRED COMPENSATION PLAN--The Trust has 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 Funds 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. The Funds have elected to show this
deferred liability net of the corresponding asset for financial statement
purposes. The Plan has been approved by the Internal Revenue Service.
As of June 30, 2000, the total liability portion of the Plan is as follows:
Asia Dynasty Fund--$18,646, Emerging Markets Vision Fund--$0, Global Hard Assets
Fund--$20,039, Global Leaders Fund--$17,855, International Investors Gold
Fund--$124,114, Natural Resources Fund--$35,249, and U.S. Government Money
Fund--$54,313.
NOTE 8--RESTRICTED SECURITIES--The following securities are restricted as to
sale and deemed to be illiquid:
PERCENT OF
DATES NET ASSETS
ACQUIRED COST VALUE AT 6/30/00
---------- -------- ------- -----------
ASIA DYNASTY FUND
Matrix 8848.net
Holdings, LLC 6/14/00 $ 250,000 $250,000 0.7%
GLOBAL HARD ASSETS FUND
Khanty-Mansiysk
Oil Co. 1/31/97 $ 549,995 $797,525 3.8%
Windsor Energy Corp. 7/09/96- 1,266,515 87,697 0.4%
5/27/98 -----
4.2%
=====
NOTE 9--SCHEDULE OF AFFILIATED COMPANIES
Transactions--Transactions with affiliates (as defined by the Investment Company
Act of 1940) for the six months ended June 30, 2000:
ASIA INTERNATIONAL NATURAL
DYNASTY INVESTORS RESOURCES
FUND GOLD FUND FUND
----------- ------------- ---------
MATRIX 8848.net Piedmont Piedmont
Holdings, LLC Mining Co. Mining Co.
12/31/99 Share Balance -- 1,270,000 1,000,000
Purchases: Shares 250,000 -- --
Cost $250,000 -- --
Sales: Shares -- (1,270,000) (1,000,000)
Cost -- $1,428,544 $1,000,000
Realized Loss -- $(1,403,144) $(980,000)
6/30/00 Share Balance 250,000 -- --
-------- --------- ---------
Market Value $250,000 -- --
-------- --------- ---------
Dividend Income -- -- --
NOTE 10--REPURCHASE AGREEMENTS--Collateral for repurchase agreements, the value
of which must be at least 102% of the underlying debt obligation, plus accrued
interest, is held by the Funds' custodian. In the remote chance the counterparty
should fail to complete the repurchase agreement, realization and retention of
the collateral may be subject to legal proceedings and the Funds would become
exposed to market fluctuation on the collateral.
NOTE 11--EQUITY SWAPS--The Funds may enter into equity swaps to gain investment
exposure to the relevant market of the underlying security. A swap is an
agreement that obligates the parties to exchange cash flows at specified
intervals. The Fund is obligated to pay the counterparty on trade date an amount
based upon the value of the underlying instrument and, at termination date,
final payment is settled based on the value of the underlying security on trade
date versus the value on termination date plus accrued dividends. Risks may
arise as a result of the failure of the counterparty to the contract to comply
with the terms of the swap contract. The Fund bears the risk of loss of the
amount expected to be received under a swap agreement in the event of the
default of the counterparty. Therefore, the Fund considers the credit worthiness
of each counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in the value of the
swap relative to the underlying securities. The Fund records a net receivable or
payable daily, based on the change in the value of the underlying securities.
The net receivable or payable for financial statement purposes is shown as due
to or from broker. The Fund has collateralized 100% of the notional amount of
the swap. Such amounts are reflected in the Statement of Assets and Liabilities
as Cash-initial margin. At June 30, 2000, the following swap was outstanding
(stated in U.S. dollars):
UNDERLYING NUMBER OF NOTIONAL TERMINATION UNREALIZED
SECURITY SHARES AMOUNT DATE APPRECIATION
----------- ---------- --------- ------------ --------------
GLOBAL HARD
ASSETS FUND
Gazprom
Oil Co. 239,200 $38,990 3/15/01 $23,226
57
<PAGE>
VAN ECK FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
COMMODITY SWAPS--The Fund entered into the following commodity swap to gain
investment exposure to the relevant spread of the commodity reference prices. A
swap is an agreement that obligates the parties to exchange cash flows at
specified intervals. At termination date, a final payment is made based on the
swap's notional amount on trade date versus the value on termination date. Risks
may arise as a result of the failure of the counterparty to the contract to
comply with the terms of the swap contract. The Fund bears the risk of loss of
the amount expected to be received under a swap agreement in the event of the
default of the counterparty. Therefore, the Fund considers the credit worthiness
of each counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in the value of the
swap relative to the underlying reference prices. The Fund records a net
receivable or payable daily, based on the change in the value of the swap. The
net receivable or payable for financial statement purposes is shown as due to or
from broker. At June 30, 2000, the Fund had the following outstanding commodity
swap (stated in U.S. dollars):
NUMBER
UNDERLYING OF NOTIONAL TERMINATION UNREALIZED
PRICES SHARES AMOUNT DATE DEPRECIATION
----------- --------- --------- ----------- ------------
Oil-Brent (DTD) -
Platts Crude Oil
Marketwire Price
vs the Oil-WTI-
NYMEXPrice 250 $262,500 9/30/00 $(23,000)
NOTE 12--BANK LINE OF CREDIT--The Trust may participate with other funds managed
by Van Eck in a $15 million committed credit facility (the "Facility") to be
utilized for temporary financing until the settlement of sales or purchases of
portfolio securities, the repurchase or redemption of shares of the Portfolios
at the request of the shareholders and other temporary or emergency purposes. In
connection therewith, the Portfolios have agreed to pay commitment fees, pro
rata, based on usage. Interest is charged to the Fund at rates based on
prevailing market rates in effect at the time of borrowings. For the six months
ended June 30, 2000, the Funds made the following borrowings:
AVERAGE AMOUNT AVERAGE INTEREST
FUND BORROWED RATE
---- ------------- ----------------
Asia Dynasty Fund $ 387,355 6.73%
Emerging Markets Vision Fund -- --
Global Hard Assets Fund 307,147 6.40%
Global Leaders Fund 135,804 6.69%
International Investors Gold Fund 2,487,779 6.69%
Natural Resources Fund 41,022 6.47%
U.S. Government Money Fund 2,243 6.76%
58
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59
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60
<PAGE>
VAN ECK GLOBAL [GRAPHIC OMITTED]
Investment Adviser: Van Eck Associates Corporation
Distributor: Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016 WWW.VANECK.COM
Account Assistance: (800) 544-4653
This report must be accompanied or preceded by a Van Eck 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.
