UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04297
VANECK FUNDS
(Exact name of registrant as specified in charter)
666 Third Avenue, New York, NY 10017
(Address of principal executive offices) (Zip code)
Van Eck Associates Corporation
666 Third Avenue, New York, NY 10017
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 293-2000
Date of fiscal year end: DECEMBER 31
Date of reporting period: JUNE 30, 2023
Item 1. Reports to Shareholders
SEMI-ANNUAL REPORT June 30, 2023 (unaudited) |
VanEck Funds
CM Commodity Index Fund
Emerging Markets Bond Fund
Emerging Markets Fund
Emerging Markets Leaders Fund
Environmental Sustainability Fund
Global Resources Fund
International Investors Gold Fund
VanEck Morningstar Wide Moat Fund
800.826.2333 | vaneck.com |
Certain information contained in this President’s Letter represents the opinion of the investment adviser which may change at any time. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of June 30, 2022.
VANECK FUNDS
June 30, 2023 (unaudited)
Dear Fellow Shareholders:
Our outlook for financial markets in 2023 was “sideways.” The three major forces—monetary policy, government spending and economic growth—are negative or muted. This remains my view despite events in the last few months, discussed at the end of this letter.
Discussion
To recap this cycle: stocks and bonds historically do not perform well when the Fed tightens monetary conditions, and that’s just what the Fed announced it would be doing at the end of 2021. This would include raising rates and changing its balance sheet actions, which doesn’t create a great environment for financial assets.
There are three things investors continue to face, none of which is particularly positive for financial assets.
1. | Monetary Policy: Tightening |
Money supply exploded during the COVID–19 pandemic, but it started shrinking in late 2022. This withdrawal of money supply is bad for stock and bond returns.
A second, modern component to monetary policy is the Fed balance sheet. After buying bonds during the pandemic, the Fed has now started shrinking the balance sheet—from a high of almost $9 trillion in early 2022, assets dropped to just short of $8.4 trillion by the end of June.1 The Fed has only shrunk its balance sheet once before, so we are facing an unknown.
As we’ve been saying since the summer of 2022, when wage inflation was confirmed, what the Fed is fighting is wage inflation. That is the kind of inflation that is endemic and hard to manage once it takes hold, not least because it creates a spiraling effect. And this is the battle that is at full pitch—the labor market has remained strong.
While headline inflation is falling, we are still in the “higher for longer” camp. The Fed seems likely to continue holding, or even raising, interest rates and will probably continue to shrink its balance sheet. This is not supportive of stock or bond markets.
2. | Fiscal Tightening |
A second bearish factor is that government spending is unlikely to increase next year. The Republicans, who won control of the House of Representatives, are looking to slow government spending. And even Democrats like Larry Summers believe that stimulus spending during the pandemic led to inflation. The debt ceiling compromise and the Supreme Court rejection of student debt relief continue this trend.
3. | Global Growth is at Low Levels |
Both Chinese and European growth, for different reasons, were slow in 2022. Over the last 20 years, the U.S. and China have been the two main pillars of global growth. In China, the post-COVID-19 growth has been more domestic and consumer-led, not enough to overcome the property sector malaise.
China growth estimates range from low (1% to 3%) to “high” (4% to 5%). Many “bulls” point to China as a potential catalyst for a better-than-expected economic outlook. I don’t see it. In coming years, we will likely have to look to India, Indonesia and Africa to take up the baton as pillars of higher percentage global growth.
I don’t believe that we will escape these three dampeners on stock and bond returns in 2023—higher interest rates, no government spending growth and tepid global growth. We will need upside corporate profitability surprises or high Chinese growth to substantially boost markets this year, in our view.
However, after the 2022 losses, bond investments are now offering attractive yields, so this has been our favorite asset class to buy and remains our preference. (See What to Buy? Bonds. When? Now.2) Because of higher interest rates, bonds can offer adequate returns, as they did in the 1970s even though that decade was the worst for interest rates in the last 100 years.
1 |
VANECK FUNDS
PRESIDENT’S LETTER
(unaudited) (continued)
Outlook
My basic outlook favoring bonds hasn’t changed. But I should address two events of the first half of this year—monetary stimuli and AI (artificial intelligence).
There were two unexpected monetary stimuli in early 2023, but I think both are temporary. The first was the wave of money from Asia at year-end: Japanese bond buying of approximately $600 billion and Chinese money supply growth post-COVID-19. The second monetary stimulus was the credit the Fed provided to banks during the mini-bank crisis of March. While I believe this crisis will prove to be idiosyncratic in nature, I’m worried that it could lead to a contraction of credit, but this may be offset by China reopening. Also, I think it is important to note that substantially less credit flows to the real economy from banks (through loans they continue to hold) and much more through alternative credit funds. These funds typically don’t offer daily liquidity, so any credit crunch is likely to be extenuated over several quarters. So, I don’t see these two events as significantly changing the “sideways” trajectory of 2023.
AI and the instant success of ChatGPT have driven another wave of enthusiasm for tech stocks, but the valuations seem stretched to me. And large-cap earnings are still on a downward or flat trajectory, so I’m not chasing this rally.
My final thought is that, while I think the Fed won’t stimulate for a while, this is a good time to get positioned in assets that would benefit from that stimulus, namely gold and BTC (bitcoin).
We thank you for investing with VanEck. On the following pages, you will find financial statements for each of the funds for the six month period ended June 30, 2023. As always, we value your continued confidence in us and look forward to helping you meet your investment goals in the future.
Jan F. van Eck
CEO and President
VanEck Funds
July 7, 2023
PS The investing outlook can change suddenly. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”.3 Should you have any questions regarding fund performance, please contact us at 800.826.2333 or visit our website.
1 U.S. Federal Reserve: FEDERAL RESERVE Statistical Release, June 22, 2023, https://www.federalreserve.gov/releases/h41/20230629/
2 What to Buy? Bonds. When? Now, https://www.vaneck.com/us/en/blogs/investment-outlook/jan-van-eck-what-to-buy-bonds-when-now/.
3 https://www.vaneck.com/us/en/subscribe/
2 |
VANECK FUNDS
(unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges on purchase payments; and (2) ongoing costs, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2023 to June 30, 2023.
Actual Expenses
The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as fees on purchase payments. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
3 |
VANECK FUNDS
EXPLANATION OF EXPENSES
(unaudited) (continued)
Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2023 - June 30, 2023(a) | ||||||
CM Commodity Index Fund | |||||||||
Class A | |||||||||
Actual | $1,000.00 | $950.10 | 0.95% | $4.59 | |||||
Hypothetical (b) | $1,000.00 | $1,020.08 | 0.95% | $4.76 | |||||
Class I | |||||||||
Actual | $1,000.00 | $952.00 | 0.65% | $3.15 | |||||
Hypothetical (b) | $1,000.00 | $1,021.57 | 0.65% | $3.26 | |||||
Class Y | |||||||||
Actual | $1,000.00 | $951.80 | 0.70% | $3.39 | |||||
Hypothetical (b) | $1,000.00 | $1,021.32 | 0.70% | $3.51 | |||||
Emerging Markets Bond Fund | |||||||||
Class A | |||||||||
Actual | $1,000.00 | $1,059.30 | 1.27% | $6.48 | |||||
Hypothetical (b) | $1,000.00 | $1,018.50 | 1.27% | $6.36 | |||||
Class I | |||||||||
Actual | $1,000.00 | $1,060.10 | 0.94% | $4.80 | |||||
Hypothetical (b) | $1,000.00 | $1,020.13 | 0.94% | $4.71 | |||||
Class Y | |||||||||
Actual | $1,000.00 | $1,061.30 | 1.00% | $5.11 | |||||
Hypothetical (b) | $1,000.00 | $1,019.84 | 1.00% | $5.01 | |||||
Emerging Markets Fund | |||||||||
Class A | |||||||||
Actual | $1,000.00 | $1,042.40 | 1.62% | $8.20 | |||||
Hypothetical (b) | $1,000.00 | $1,016.76 | 1.62% | $8.10 | |||||
Class C | |||||||||
Actual | $1,000.00 | $1,037.00 | 2.52% | $12.73 | |||||
Hypothetical (b) | $1,000.00 | $1,012.30 | 2.52% | $12.57 | |||||
Class I | |||||||||
Actual | $1,000.00 | $1,045.90 | 1.02% | $5.17 | |||||
Hypothetical (b) | $1,000.00 | $1,019.74 | 1.02% | $5.11 | |||||
Class Y | |||||||||
Actual | $1,000.00 | $1,044.80 | 1.12% | $5.68 | |||||
Hypothetical (b) | $1,000.00 | $1,019.24 | 1.12% | $5.61 | |||||
Class Z | |||||||||
Actual | $1,000.00 | $1,045.70 | 0.92% | $4.67 | |||||
Hypothetical (b) | $1,000.00 | $1,020.23 | 0.92% | $4.61 | |||||
Emerging Markets Leaders Fund | |||||||||
Class A | |||||||||
Actual | $1,000.00 | $1,050.90 | 1.45% | $7.37 | |||||
Hypothetical (b) | $1,000.00 | $1,017.60 | 1.45% | $7.25 | |||||
Class I | |||||||||
Actual | $1,000.00 | $1,054.30 | 0.85% | $4.33 | |||||
Hypothetical (b) | $1,000.00 | $1,020.58 | 0.85% | $4.26 | |||||
Class Y | |||||||||
Actual | $1,000.00 | $1,053.30 | 0.95% | $4.84 | |||||
Hypothetical (b) | $1,000.00 | $1,020.08 | 0.95% | $4.76 | |||||
Class Z | |||||||||
Actual | $1,000.00 | $1,054.80 | 0.75% | $3.82 | |||||
Hypothetical (b) | $1,000.00 | $1,021.08 | 0.75% | $3.76 |
4 |
Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratio During Period | Expenses Paid During the Period January 1, 2023 - June 30, 2023(a) | ||||||
Environmental Sustainability Fund | |||||||||
Class A | |||||||||
Actual | $1,000.00 | $1,065.80 | 1.25% | $6.40 | |||||
Hypothetical (b) | $1,000.00 | $1,018.60 | 1.25% | $6.26 | |||||
Class I | |||||||||
Actual | $1,000.00 | $1,067.40 | 0.95% | $4.87 | |||||
Hypothetical (b) | $1,000.00 | $1,020.08 | 0.95% | $4.76 | |||||
Class Y | |||||||||
Actual | $1,000.00 | $1,066.90 | 1.05% | $5.38 | |||||
Hypothetical (b) | $1,000.00 | $1,019.59 | 1.05% | $5.26 | |||||
Global Resources Fund | |||||||||
Class A | |||||||||
Actual | $1,000.00 | $944.90 | 1.38% | $6.65 | |||||
Hypothetical (b) | $1,000.00 | $1,017.95 | 1.38% | $6.90 | |||||
Class C | |||||||||
Actual | $1,000.00 | $941.10 | 2.20% | $10.59 | |||||
Hypothetical (b) | $1,000.00 | $1,013.88 | 2.20% | $10.99 | |||||
Class I | |||||||||
Actual | $1,000.00 | $947.10 | 0.95% | $4.59 | |||||
Hypothetical (b) | $1,000.00 | $1,020.08 | 0.95% | $4.76 | |||||
Class Y | |||||||||
Actual | $1,000.00 | $946.30 | 1.13% | $5.45 | |||||
Hypothetical (b) | $1,000.00 | $1,019.19 | 1.13% | $5.66 | |||||
International Investors Gold Fund | |||||||||
Class A | |||||||||
Actual | $1,000.00 | $1,049.50 | 1.43% | $7.27 | |||||
Hypothetical (b) | $1,000.00 | $1,017.70 | 1.43% | $7.15 | |||||
Class C | |||||||||
Actual | $1,000.00 | $1,046.60 | 2.20% | $11.16 | |||||
Hypothetical (b) | $1,000.00 | $1,013.88 | 2.20% | $10.99 | |||||
Class I | |||||||||
Actual | $1,000.00 | $1,052.80 | 1.00% | $5.09 | |||||
Hypothetical (b) | $1,000.00 | $1,019.84 | 1.00% | $5.01 | |||||
Class Y | |||||||||
Actual | $1,000.00 | $1,052.20 | 1.10% | $5.60 | |||||
Hypothetical (b) | $1,000.00 | $1,019.34 | 1.10% | $5.51 | |||||
VanEck Morningstar Wide Moat Fund | |||||||||
Class I | |||||||||
Actual | $1,000.00 | $1,227.50 | 0.60% | $3.31 | |||||
Hypothetical (b) | $1,000.00 | $1,021.82 | 0.60% | $3.01 | |||||
Class Z | |||||||||
Actual | $1,000.00 | $1,227.90 | 0.50% | $2.76 | |||||
Hypothetical (b) | $1,000.00 | $1,022.32 | 0.50% | $2.51 |
(a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2023), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of the days in the fiscal year (to reflect the one-half year period). |
(b) | Assumes annual return of 5% before expenses |
5 |
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
Par (000’s | ) | Value | ||||||
Short-Term Investments: 96.8% | ||||||||
United States Treasury Obligations: 93.6% | ||||||||
United States Treasury Bills | ||||||||
4.68%, 08/17/23 (a) | $ | 15,000 | $ | 14,909,623 | ||||
4.80%, 07/25/23 | 45,000 | 44,857,920 | ||||||
4.87%, 07/18/23 (a) | 10,000 | 9,977,333 | ||||||
5.01%, 08/22/23 | 30,000 | 29,785,933 | ||||||
4.76%, 07/11/23 | 35,000 | 34,954,403 | ||||||
5.18%, 11/02/23 (a) † | 62,000 | 60,906,371 | ||||||
5.19%, 12/07/23 | 41,000 | 40,069,541 | ||||||
5.20%, 10/03/23 | 42,000 | 41,446,142 | ||||||
5.20%, 10/10/23 (a) | 45,000 | 44,360,027 | ||||||
5.22%, 11/24/23 | 35,000 | 34,275,290 | ||||||
5.23%, 10/17/23 | 36,000 | 35,448,138 | ||||||
5.27%, 10/19/23 (a) | 45,000 | 44,298,000 | ||||||
5.32%, 11/09/23 | 48,000 | 47,105,772 | ||||||
5.33%, 10/26/23 (a) | 52,000 | 51,136,637 | ||||||
533,531,130 |
Number of Shares | Value | |||||||
Money Market Fund: 3.2% | ||||||||
Invesco Treasury Portfolio - Institutional Class | 17,962,516 | $ | 17,962,516 | |||||
Total Investments Before Collateral for Securities Loaned: 96.8% (Cost: $551,515,766) | 551,493,646 | |||||||
Number of Shares | Value | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.0% | ||||||||
Money Market Fund: 0.0% (Cost: $6,024) | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 6,024 | 6,024 | ||||||
Total Short-Term Investments: 96.8% (Cost: $551,521,790) | 551,499,670 | |||||||
Other assets less liabilities: 3.2% | 18,329,968 | |||||||
NET ASSETS: 100.0% | $ | 569,829,638 |
Total Return Swap Contracts
Long Exposure
Counterparty | Reference Obligation | Notional Amount | Rate paid by the Fund (b) | Payment Frequency | Termination Date | Unrealized Appreciation/ (Depreciation) | % of Net Assets | |||||||||||
UBS | UBS Bloomberg Constant Maturity Index Total Return | $ | 562,751,893 | 5.06% | Monthly | 08/02/23 | $4,326,297 | 0.8% |
Footnotes:
(a) | All or a portion of these securities are segregated for swap collateral. Total value of securities segregated is $84,909,272. |
† | Security fully or partially on loan. Total market value of securities on loan is $41,803,383. |
(b) | The rate shown reflects the rate in effect at the end of the reporting period: 3-Month T-Bill rate + 0.40%. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||
Government | 96.7% | $ | 533,531,130 | |||
Money Market Fund | 3.3 | 17,962,516 | ||||
100.0% | $ | 551,493,646 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
United States Treasury Obligations | $ | — | $ | 533,531,130 | $ | — | $ | 533,531,130 | ||||||||
Money Market Funds | 17,968,540 | — | — | 17,968,540 | ||||||||||||
Total Investments | $ | 17,968,540 | $ | 533,531,130 | $ | — | $ | 551,499,670 | ||||||||
Other Financial Instruments: | ||||||||||||||||
Total Return Swap Contracts | $ | — | $ | 4,326,297 | $ | — | $ | 4,326,297 |
See Notes to Financial Statements
6 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
Par (000’s | ) | Value | ||||||||
CORPORATE BONDS: 20.4% | ||||||||||
Argentina: 0.6% | ||||||||||
YPF SA 144A 9.00%, 02/12/26 (s) | USD | 61 | $ | 61,002 | ||||||
YPF SA Reg S | ||||||||||
8.50%, 07/28/25 | USD | 298 | 274,129 | |||||||
9.00%, 02/12/26 (s) | USD | 99 | 98,385 | |||||||
433,516 | ||||||||||
Bahrain: 0.7% | ||||||||||
Oil and Gas Holding Co. BSCC Reg S 7.50%, 10/25/27 | USD | 461 | 468,716 | |||||||
Cayman Islands: 1.6% | ||||||||||
CK Hutchison Europe Finance 21 Ltd. Reg S 1.00%, 11/02/33 | EUR | 731 | 586,727 | |||||||
Siam Commercial Bank PCL Reg S 4.40%, 02/11/29 | USD | 545 | 521,756 | |||||||
1,108,483 | ||||||||||
Colombia: 1.6% | ||||||||||
Ecopetrol SA | ||||||||||
7.38%, 09/18/43 | USD | 899 | 750,306 | |||||||
8.88%, 01/13/33 | USD | 396 | 392,489 | |||||||
1,142,795 | ||||||||||
India: 1.5% | ||||||||||
Adani Renewable Energy RJ Ltd./ Kodangal Solar Parks Pvt Ltd. / Wardha Solar Maharashtra 144A 4.62%, 10/15/39 | USD | 484 | 354,939 | |||||||
Adani Renewable Energy RJ Ltd./ Kodangal Solar Parks Pvt Ltd. / Wardha Solar Maharashtra Reg S 4.63%, 10/15/39 | USD | 271 | 198,348 | |||||||
JSW Hydro Energy Ltd. Reg S 4.12%, 05/18/31 | USD | 593 | 500,882 | |||||||
1,054,169 | ||||||||||
Indonesia: 0.8% | ||||||||||
Star Energy Geothermal Darajat II / Star Energy Geothermal Salak Reg S 4.85%, 10/14/38 | USD | 325 | 294,373 | |||||||
Star Energy Geothermal Wayang Windu Ltd. Reg S 6.75%, 04/24/33 | USD | 264 | 259,760 | |||||||
554,133 | ||||||||||
Isle of Man: 0.3% | ||||||||||
Gold Fields Orogen Holdings BVI Ltd. Reg S 6.12%, 05/15/29 | USD | 200 | 202,419 | |||||||
Luxembourg: 0.9% | ||||||||||
MC Brazil Downstream Trading SARL Reg S 7.25%, 06/30/31 | USD | 965 | 652,569 | |||||||
Malaysia: 2.5% | ||||||||||
Petronas Capital Ltd. Reg S |
Par (000’s | ) | Value | ||||||||
Malaysia (continued) | ||||||||||
4.50%, 03/18/45 | USD | 1,963 | $ | 1,805,282 | ||||||
Mauritius: 0.6% | ||||||||||
India Clean Energy Holdings 144A 4.50%, 04/18/27 | USD | 68 | 56,145 | |||||||
India Clean Energy Holdings Reg S 4.50%, 04/18/27 | USD | 448 | 369,893 | |||||||
426,038 | ||||||||||
Mexico: 0.0% | ||||||||||
Corp. GEO SAB de CV Reg S 9.25%, 06/30/20 (d) * | USD | 380 | 8 | |||||||
Nigeria: 0.5% | ||||||||||
SEPLAT Energy Plc 144A 7.75%, 04/01/26 | USD | 451 | 380,202 | |||||||
Qatar: 1.3% | ||||||||||
Nakilat, Inc. Reg S 6.07%, 12/31/33 | USD | 485 | 508,945 | |||||||
Qatar Energy 144A 2.25%, 07/12/31 | USD | 522 | 438,456 | |||||||
947,401 | ||||||||||
Singapore: 1.4% | ||||||||||
Medco Laurel Tree Pte Ltd. Reg S 6.95%, 11/12/28 | USD | 580 | 532,517 | |||||||
SingTel Group Treasury Pte Ltd. Reg S | ||||||||||
1.88%, 06/10/30 | USD | 277 | 231,235 | |||||||
2.38%, 08/28/29 | USD | 290 | 252,355 | |||||||
1,016,107 | ||||||||||
South Africa: 0.8% | ||||||||||
Gold Fields Orogen Holdings BVI Ltd. 144A 6.12%, 05/15/29 | USD | 563 | 569,810 | |||||||
Supranational: 0.2% | ||||||||||
International Finance Corp. 16.00%, 12/05/25 | UZS | 2,000,000 | 174,378 | |||||||
Thailand: 1.5% | ||||||||||
GC Treasury Center Co. Ltd. Reg S 4.40%, 03/30/32 | USD | 384 | 347,216 | |||||||
Thaioil Treasury Center Co. Ltd. Reg S 3.50%, 10/17/49 | USD | 1,151 | 733,894 | |||||||
1,081,110 | ||||||||||
United Arab Emirates: 0.9% | ||||||||||
Abu Dhabi National Energy Co. PJSC 144A 4.70%, 04/24/33 | USD | 677 | 674,016 | |||||||
United Kingdom: 1.0% | ||||||||||
Anglo American Capital Plc Reg S 5.00%, 03/15/31 | EUR | 665 | 743,150 |
See Notes to Financial Statements
7 |
EMERGING MARKETS BOND FUND
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Par (000’s | ) | Value | ||||||||
United States: 1.4% | ||||||||||
AES Panama Generation Holdings SRL Reg S 4.38%, 05/31/30 | USD | 620 | $ | 530,361 | ||||||
Stillwater Mining Co. Reg S 4.50%, 11/16/29 | USD | 590 | 479,744 | |||||||
1,010,105 | ||||||||||
Uzbekistan: 0.3% | ||||||||||
Uzauto Motors AJ 144A 4.85%, 05/04/26 | USD | 260 | 225,534 | |||||||
Total Corporate Bonds (Cost: $14,978,258) | 14,669,941 | |||||||||
GOVERNMENT OBLIGATIONS: 70.9% | ||||||||||
Angola: 1.2% | ||||||||||
Angolan Government International Bond 144A | ||||||||||
8.25%, 05/09/28 | USD | 110 | 97,875 | |||||||
9.50%, 11/12/25 | USD | 510 | 499,648 | |||||||
Angolan Government International Bond Reg S 9.50%, 11/12/25 | USD | 245 | 240,027 | |||||||
837,550 | ||||||||||
Argentina: 1.6% | ||||||||||
Argentine Republic Government International Bond | ||||||||||
0.50%, 07/09/30 (s) | USD | 1,486 | 497,165 | |||||||
2.50%, 07/09/41 (s) | USD | 1,500 | 484,406 | |||||||
Provincia de Buenos Aires Reg S | ||||||||||
4.50%, 09/01/37 (s) | USD | 0 | (e) | 132 | ||||||
5.25%, 09/01/37 (s) | USD | 525 | 201,469 | |||||||
1,183,172 | ||||||||||
Bahrain: 0.9% | ||||||||||
Bahrain Government International Bond 144A 7.75%, 04/18/35 | USD | 645 | 656,081 | |||||||
Brazil: 4.1% | ||||||||||
Brazil Notas do Tesouro Nacional, Series F | ||||||||||
10.00%, 01/01/25 | BRL | 2,142 | 442,351 | |||||||
10.00%, 01/01/29 | BRL | 4,939 | 1,009,482 | |||||||
10.00%, 01/01/31 | BRL | 3,250 | 660,265 | |||||||
10.00%, 01/01/33 | BRL | 4,029 | 811,379 | |||||||
2,923,477 | ||||||||||
Chile: 1.6% | ||||||||||
Chile Government International Bond 3.25%, 09/21/71 | USD | 1,719 | 1,119,510 | |||||||
China: 1.4% | ||||||||||
Asian Infrastructure Investment Bank Reg S | ||||||||||
2.75%, 03/12/24 | PHP | 6,200 | 109,266 | |||||||
4.25%, 01/27/27 | PHP | 49,500 | 863,666 | |||||||
972,932 |
Par (000’s | ) | Value | ||||||||
Colombia: 3.1% | ||||||||||
Colombia Government International Bond | ||||||||||
4.50%, 03/15/29 | USD | 686 | $ | 602,525 | ||||||
5.00%, 06/15/45 | USD | 2,379 | 1,662,134 | |||||||
2,264,659 | ||||||||||
Costa Rica: 0.6% | ||||||||||
Costa Rica Government International Bond Reg S | ||||||||||
6.12%, 02/19/31 | USD | 268 | 266,718 | |||||||
7.00%, 04/04/44 | USD | 136 | 132,908 | |||||||
399,626 | ||||||||||
Czech Republic: 2.5% | ||||||||||
Czech Republic Government Bond | ||||||||||
2.00%, 10/13/33 | CZK | 18,790 | 699,164 | |||||||
6.00%, 02/26/26 | CZK | 1,600 | 75,609 | |||||||
Czech Republic Government Bond Reg S 1.00%, 06/26/26 | CZK | 24,670 | 1,010,257 | |||||||
1,785,030 | ||||||||||
Democratic Republic of the Congo: 1.7% | ||||||||||
Congolese International Bond Reg S 6.00%, 06/30/29 (s) | USD | 1,480 | 1,253,344 | |||||||
Dominican Republic: 2.2% | ||||||||||
Dominican Republic International Bond Reg S 9.75%, 06/05/26 | DOP | 84,465 | 1,564,138 | |||||||
Egypt: 1.1% | ||||||||||
Egypt Government International Bond Reg S | ||||||||||
4.75%, 04/16/26 | EUR | 451 | 347,691 | |||||||
7.50%, 02/16/61 | USD | 890 | 448,773 | |||||||
796,464 | ||||||||||
Gabon: 0.1% | ||||||||||
Gabon Government International Bond 144A 6.95%, 06/16/25 | USD | 66 | 62,208 | |||||||
Ghana: 0.5% | ||||||||||
Ghana Government International Bond Reg S 8.75%, 03/11/61 | USD | 943 | 393,388 | |||||||
Hungary: 1.9% | ||||||||||
Hungary Government International Bond Reg S | ||||||||||
1.75%, 06/05/35 | EUR | 1,182 | 907,010 | |||||||
5.00%, 02/22/27 | EUR | 419 | 460,708 | |||||||
1,367,718 | ||||||||||
Indonesia: 7.5% | ||||||||||
Indonesia Treasury Bond | ||||||||||
5.12%, 04/15/27 | IDR | 8,700,000 | 570,450 | |||||||
5.50%, 04/15/26 | IDR | 6,620,000 | 439,437 | |||||||
6.38%, 04/15/32 | IDR | 18,204,000 | 1,220,281 | |||||||
7.00%, 09/15/30 | IDR | 14,401,000 | 1,000,017 | |||||||
7.12%, 06/15/38 | IDR | 18,174,000 | 1,285,526 | |||||||
7.12%, 06/15/43 | IDR | 12,500,000 | 883,588 | |||||||
5,399,299 |
See Notes to Financial Statements
8 |
Par (000’s | ) | Value | ||||||||
Israel: 0.6% | ||||||||||
Israel Government Bond | ||||||||||
0.40%, 10/31/24 | ILS | 1,028 | $ | 263,341 | ||||||
3.75%, 03/31/24 | ILS | 540 | 144,883 | |||||||
408,224 | ||||||||||
Ivory Coast: 0.2% | ||||||||||
Ivory Coast Government International BondReg S 5.75%, 12/31/32 (s) | USD | 146 | 136,286 | |||||||
Jamaica: 0.4% | ||||||||||
Jamaica Government International Bond | ||||||||||
7.62%, 07/09/25 | USD | 167 | 170,523 | |||||||
7.88%, 07/28/45 | USD | 85 | 98,303 | |||||||
268,826 | ||||||||||
Jordan: 0.4% | ||||||||||
Jordan Government International Bond 144A 4.95%, 07/07/25 | USD | 289 | 280,353 | |||||||
Kenya: 0.3% | ||||||||||
Republic of Kenya Government International Bond 144A 7.00%, 05/22/27 | USD | 279 | 251,788 | |||||||
Kuwait: 0.2% | ||||||||||
Kuwait International Government Bond 144A 3.50%, 03/20/27 | USD | 185 | 179,044 | |||||||
Malaysia: 1.3% | ||||||||||
Malaysia Wakala Sukuk Bhd Reg S 3.08%, 04/28/51 | USD | 1,246 | 955,700 | |||||||
Mexico: 5.0% | ||||||||||
Mexico Government International Bond | ||||||||||
2.38%, 02/11/30 | EUR | 2,283 | 2,214,140 | |||||||
2.88%, 04/08/39 | EUR | 933 | 769,049 | |||||||
3.75%, 04/19/71 | USD | 386 | 258,449 | |||||||
4.00%, 03/15/15 | EUR | 394 | 318,881 | |||||||
3,560,519 | ||||||||||
Morocco: 1.1% | ||||||||||
Morocco Government International Bond Reg S 2.00%, 09/30/30 | EUR | 900 | 792,136 | |||||||
Mozambique: 1.4% | ||||||||||
Mozambique International Bond Reg S 5.00%, 09/15/31 (s) | USD | 1,325 | 1,010,114 | |||||||
Nigeria: 1.0% | ||||||||||
Nigeria Government International Bond 144A 8.75%, 01/21/31 | USD | 843 | 757,387 | |||||||
Oman: 1.6% | ||||||||||
Oman Government International Bond 144A 6.25%, 01/25/31 | USD | 846 | 860,061 |
Par (000’s | ) | Value | ||||||||
Oman (continued) | ||||||||||
Oman Government International Bond Reg S 6.25%, 01/25/31 | USD | 315 | $ | 320,235 | ||||||
1,180,296 | ||||||||||
Paraguay: 0.4% | ||||||||||
Paraguay Government International Bond Reg S 4.95%, 04/28/31 | USD | 332 | 319,741 | |||||||
Peru: 3.9% | ||||||||||
Peru Government Bond | ||||||||||
5.40%, 08/12/34 | PEN | 8,388 | 2,042,709 | |||||||
6.15%, 08/12/32 | PEN | 2,991 | 787,928 | |||||||
2,830,637 | ||||||||||
Philippines: 1.1% | ||||||||||
Philippine Government International Bond 6.25%, 01/14/36 | PHP | 44,973 | 784,873 | |||||||
Poland: 1.7% | ||||||||||
Republic of Poland Government Bond 7.50%, 07/25/28 | PLN | 4,608 | 1,224,095 | |||||||
Qatar: 1.1% | ||||||||||
Qatar Government International Bond 144A 5.10%, 04/23/48 | USD | 790 | 788,709 | |||||||
Romania: 2.8% | ||||||||||
Romanian Government International Bond Reg S 7.62%, 01/17/53 | USD | 1,798 | 1,980,887 | |||||||
Rwanda: 0.1% | ||||||||||
Rwanda International Government Bond 144A 5.50%, 08/09/31 | USD | 98 | 74,414 | |||||||
Saudi Arabia: 1.6% | ||||||||||
Saudi Government International Bond 144A 4.75%, 01/18/28 | USD | 1,180 | 1,171,377 | |||||||
Serbia: 0.4% | ||||||||||
Serbia International Bond Reg S 1.65%, 03/03/33 | EUR | 439 | 320,430 | |||||||
South Korea: 0.7% | ||||||||||
Export-Import Bank of Korea 144A 4.62%, 06/07/33 | USD | 497 | 489,341 | |||||||
Sri Lanka: 2.6% | ||||||||||
Sri Lanka Government International Bond Reg S 5.75%, 04/18/23 | USD | 1,896 | 864,875 | |||||||
Sri Lanka Treasury Bills | ||||||||||
0.00%, 08/18/23 ^ | LKR | 188,000 | 596,573 | |||||||
0.00%, 09/08/23 ^ | LKR | 120,050 | 376,060 | |||||||
1,837,508 |
See Notes to Financial Statements
9 |
EMERGING MARKETS BOND FUND
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Par (000’s | ) | Value | ||||||||
Turkey: 3.0% | ||||||||||
Turkey Government International Bond | ||||||||||
4.88%, 04/16/43 | USD | 961 | $ | 619,268 | ||||||
5.75%, 05/11/47 | USD | 963 | 660,464 | |||||||
9.88%, 01/15/28 | USD | 834 | 851,589 | |||||||
2,131,321 | ||||||||||
United Arab Emirates: 1.5% | ||||||||||
Abu Dhabi Government International Bond 144A 1.88%, 09/15/31 | USD | 180 | 150,191 | |||||||
Abu Dhabi Government International BondReg S 1.88%, 09/15/31 | USD | 1,103 | 920,336 | |||||||
1,070,527 | ||||||||||
Uruguay: 2.1% | ||||||||||
Uruguay Government International Bond Reg S 8.50%, 03/15/28 (a) | UYU | 27,748 | 705,069 | |||||||
Uruguay Monetary Regulation Bill 0.00%, 05/31/24 ^ | UYU | 31,631 | 771,595 | |||||||
1,476,664 | ||||||||||
Uzbekistan: 0.1% | ||||||||||
Republic of Uzbekistan International Bond 144A |
Par (000’s | ) | Value | ||||||||
Uzbekistan (continued) | ||||||||||
14.00%, 07/19/24 | UZS | 600,000 | $ | 51,256 | ||||||
Zambia: 2.3% | ||||||||||
Zambia Government Bond | ||||||||||
13.00%, 01/25/31 | ZMW | 43,644 | 1,405,716 | |||||||
13.00%, 12/27/31 | ZMW | 890 | 26,970 | |||||||
13.00%, 03/23/32 | ZMW | 7,500 | 219,260 | |||||||
1,651,946 | ||||||||||
Total Government Obligations | 50,962,995 | |||||||||
SHORT-TERM INVESTMENT: 0.5% (Cost: $341,529) | ||||||||||
United States Treasury Obligations: 0.5% | ||||||||||
United States Treasury Bills 5.03%, 07/11/23 | 342,000 | 341,529 | ||||||||
Number of Shares | ||||||||||
MONEY MARKET FUND: 4.8% (Cost: $3,427,254) | ||||||||||
Invesco Treasury Portfolio - Institutional Class | 3,427,254 | 3,427,254 | ||||||||
Total Investments: 96.6% (Cost: $68,136,335) | 69,401,719 | |||||||||
Other assets less liabilities: 3.4% | 2,431,608 | |||||||||
NET ASSETS: 100.0% | $ | 71,833,327 |
Definitions:
BRL | Brazilian Real |
CZK | Czech Koruna |
DOP | Dominican Peso |
EUR | Euro |
IDR | Indonesian Rupiah |
ILS | Israeli Shekel |
LKR | Sri Lanka Rupee |
PEN | Peruvian Nuevo Sol |
PHP | Philippine Peso |
PLN | Polish Zloty |
USD | United States Dollar |
UYU | Uruguayan Peso |
UZS | Uzbekistani Som |
ZMW | Zambian Kwacha |
Footnotes:
(a) | All or a portion of these securities are segregated for forwards collateral. Total value of securities segregated is $98,082. |
(d) | Security in default |
(e) | Amount is less than 1,000 |
(s) | The rate shown reflects the rate in effect at the end of the reporting period. Coupon adjusts periodically based upon a predetermined schedule |
* | Non-income producing |
^ | Zero Coupon Bond |
Reg S | Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. |
See Notes to Financial Statements
10 |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $9,129,837, or 12.7% of net assets. |
Schedule of Open Forward Foreign Currency Contracts - June 30, 2023
Counterparty | Currency to be sold | Currency to be purchased | Settlement Dates | Unrealized Appreciation (Depreciation) | |||||||||||
State Street Bank and Trust Co. | USD | 268,940 | INR | 22,114,909 | 7/20/2023 | $496 | |||||||||
State Street Bank and Trust Co. | INR | 22,114,909 | USD | 269,333 | 7/20/2023 | $(103) | |||||||||
State Street Bank and Trust Co. | USD | 177,886 | CNY | 1,285,618 | 7/28/2023 | $(465) | |||||||||
Net unrealized depreciation on forward foreign currency contracts | (72) |
Summary of Investments by Sector | % of Investments | Value | ||||||
Government | 73.9 | % | $ | 51,304,524 | ||||
Energy | 9.3 | 6,444,323 | ||||||
Utilities | 4.0 | 2,745,995 | ||||||
Financials | 3.0 | 2,056,986 | ||||||
Basic Materials | 2.7 | 1,862,595 | ||||||
Industrials | 1.2 | 850,917 | ||||||
Technology | 0.7 | 483,591 | ||||||
Consumer Cyclicals | 0.3 | 225,534 | ||||||
Money Market Fund | 4.9 | 3,427,254 | ||||||
100.0 | % | $ | 69,401,719 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Corporate Bonds * | $ | — | $ | 14,669,941 | $ | — | $ | 14,669,941 | ||||||||
Government Obligations * | — | 50,962,995 | — | 50,962,995 | ||||||||||||
Short-Term Investments United States | $ | 3,427,254 | $ | 341,529 | $ | — | $ | 3,768,783 | ||||||||
Total Investments | $ | 3,427,254 | $ | 65,974,465 | $ | — | $ | 69,401,719 | ||||||||
Other Financial Instruments: | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Contract | $ | 496 | $ | — | $ | — | $ | 496 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | $ | (568) | $ | — | $ | — | $ | (568) |
* | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
11 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 95.8% | ||||||||
Argentina: 4.2% | ||||||||
MercadoLibre, Inc. (USD) * | 30,385 | $ | 35,994,071 | |||||
Brazil: 10.7% | ||||||||
Arcos Dorados Holdings, Inc. (USD) | 390,000 | 3,997,500 | ||||||
Clear Sale SA * | 3,758,800 | 5,259,588 | ||||||
Fleury SA * | 2,266,215 | 7,596,331 | ||||||
JSL SA | 12,097,600 | 22,359,918 | ||||||
Movida Participacoes SA | 5,742,800 | 12,629,315 | ||||||
NU Holdings Ltd. (USD) * | 430,000 | 3,392,700 | ||||||
Rede D’Or Sao Luiz SA 144A * | 1,307,900 | 8,992,120 | ||||||
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA | 10,872,800 | 27,498,769 | ||||||
Westwing Comercio Varejista Ltda * | 665,100 | 263,917 | ||||||
91,990,158 | ||||||||
China: 23.6% | ||||||||
China Animal Healthcare Ltd. (HKD) *∞ | 8,365,994 | 0 | ||||||
China Education Group Holdings Ltd. (HKD) | 22,588,000 | 17,657,282 | ||||||
Fu Shou Yuan International Group Ltd. (HKD) | 5,882,000 | 4,056,733 | ||||||
Full Truck Alliance Co. Ltd. (ADR) * | 955,000 | 5,940,100 | ||||||
Ganfeng Lithium Group Co. Ltd. | 747,376 | 6,296,483 | ||||||
Hoyuan Green Energy Co. Ltd. * | 438,473 | 4,506,832 | ||||||
JD.com, Inc. (HKD) | 291,938 | 4,978,874 | ||||||
KE Holdings, Inc. (ADR) * | 877,900 | 13,036,815 | ||||||
Meituan (HKD) 144A * | 187,650 | 2,942,524 | ||||||
Ming Yang Smart Energy Group Ltd. | 475,935 | 1,107,393 | ||||||
MINISO Group Holding Ltd. (ADR) | 401,000 | 6,812,990 | ||||||
NetEase, Inc. (HKD) | 497,900 | 9,643,778 | ||||||
Ping An Bank Co. Ltd. | 8,251,969 | 12,780,446 | ||||||
Prosus NV (EUR) | 586,839 | 42,976,635 | ||||||
Shandong Head Group Co. Ltd. | 362,575 | 899,462 | ||||||
Shanghai Baosight Software Co. Ltd. | 1,667,673 | 11,679,703 | ||||||
Shenzhen Inovance Technology Co. Ltd. | 623,364 | 5,520,899 | ||||||
Shenzhou International Group Holdings Ltd. (HKD) | 519,800 | 4,992,403 | ||||||
Sungrow Power Supply Co. Ltd. | 602,246 | 9,693,428 | ||||||
Tencent Holdings Ltd. (HKD) | 126,500 | 5,363,748 | ||||||
Wuxi Biologics Cayman, Inc. (HKD) 144A * | 1,831,000 | 8,799,878 | ||||||
Yifeng Pharmacy Chain Co. Ltd. | 993,053 | 5,063,693 | ||||||
Yum China Holdings, Inc. (HKD) | 124,800 | 7,070,528 |
Number of Shares | Value | |||||||
China (continued) | ||||||||
Zai Lab Ltd. (HKD) * † | 1,515,700 | $ | 4,170,251 | |||||
Zhejiang Huayou Cobalt Co. Ltd. | 624,228 | 3,953,024 | ||||||
Zhejiang Supcon Technology Co. Ltd. | 366,995 | 3,180,044 | ||||||
203,123,946 | ||||||||
Egypt: 1.6% | ||||||||
Cleopatra Hospital * | 32,083,115 | 4,659,542 | ||||||
Commercial International Bank Egypt SAE | 5,207,913 | 8,637,488 | ||||||
13,297,030 | ||||||||
Georgia: 4.5% | ||||||||
Bank of Georgia Group Plc (GBP) | 817,246 | 30,358,630 | ||||||
Georgia Capital Plc (GBP) * | 764,897 | 8,072,489 | ||||||
38,431,119 | ||||||||
Germany: 1.4% | ||||||||
Delivery Hero SE 144A * | 278,800 | 12,300,674 | ||||||
Greece: 0.4% | ||||||||
Eurobank Ergasias Services and Holdings SA * | 2,200,000 | 3,624,692 | ||||||
Hungary: 1.2% | ||||||||
OTP Bank Nyrt | 294,400 | 10,466,050 | ||||||
India: 15.8% | ||||||||
Cholamandalam Investment and Finance Co. Ltd. | 745,200 | 10,396,800 | ||||||
Delhivery Ltd. * | 1,790,757 | 8,313,989 | ||||||
HDFC Bank Ltd. | 1,060,022 | 21,990,023 | ||||||
HDFC Bank Ltd. (ADR) | 318,000 | 22,164,600 | ||||||
Oberoi Realty Ltd. | 768,100 | 9,241,516 | ||||||
Phoenix Mills Ltd. | 642,300 | 12,210,920 | ||||||
Reliance Industries Ltd. | 1,576,581 | 49,203,472 | ||||||
Sterling and Wilson Renewable * | 590,000 | 2,090,523 | ||||||
135,611,843 | ||||||||
Indonesia: 1.3% | ||||||||
Bank BTPN Syariah Tbk PT | 67,406,000 | 9,288,468 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 5,800,000 | 2,117,531 | ||||||
11,405,999 | ||||||||
Kazakhstan: 3.3% | ||||||||
Kaspi.kz JSC (USD) (GDR) | 350,658 | 27,912,377 | ||||||
Kuwait: 0.0% | ||||||||
Humansoft Holding Co. KSC | 6,484 | 78,282 | ||||||
Mexico: 2.9% | ||||||||
Qualitas Controladora SAB de CV † | 771,558 | 5,707,465 | ||||||
Regional SAB de CV | 2,693,200 | 19,513,388 | ||||||
25,220,853 | ||||||||
Philippines: 4.8% | ||||||||
Bloomberry Resorts Corp. * | 75,387,000 | 15,183,886 | ||||||
International Container Terminal Services, Inc. | 7,087,340 | 26,176,662 | ||||||
41,360,548 | ||||||||
Poland: 1.2% | ||||||||
InPost SA (EUR) * | 968,300 | 10,508,632 |
See Notes to Financial Statements
12 |
Number of Shares | Value | |||||||
Russia: 0.0% | ||||||||
Detsky Mir PJSC 144A *∞ | 11,544,900 | $ | 0 | |||||
Fix Price Group Plc (USD) (GDR) *∞ | 3,811,800 | 0 | ||||||
Sberbank of Russia PJSC ∞ | 5,555,460 | 0 | ||||||
0 | ||||||||
South Korea: 3.3% | ||||||||
Doosan Fuel Cell Co. Ltd. * † | 184,460 | 4,045,579 | ||||||
LG Chem Ltd. | 39,718 | 20,218,915 | ||||||
Samsung Biologics Co. Ltd. 144A * | 7,350 | 4,161,404 | ||||||
28,425,898 | ||||||||
Taiwan: 10.2% | ||||||||
Chroma ATE, Inc. | 1,555,000 | 12,549,215 | ||||||
MediaTek, Inc. | 156,000 | 3,453,191 | ||||||
Poya International Co. Ltd. | 560,697 | 10,689,937 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,098,000 | 57,230,335 | ||||||
Wiwynn Corp. | 80,000 | 3,656,195 | ||||||
87,578,873 | ||||||||
Tanzania: 1.3% | ||||||||
Helios Towers Plc (GBP) * | 9,020,647 | 10,705,673 | ||||||
Turkey: 2.8% | ||||||||
MLP Saglik Hizmetleri AS 144A * | 4,105,148 | 12,022,041 | ||||||
Sok Marketler Ticaret AS * | 5,261,840 | 6,740,853 | ||||||
Tofas Turk Otomobil Fabrikasi AS | 583,700 | 5,682,210 | ||||||
24,445,104 | ||||||||
United Arab Emirates: 0.7% | ||||||||
Americana Restaurants International Plc | 4,932,000 | 5,679,924 |
Number of Shares | Value | |||||||
United Kingdom: 0.6% | ||||||||
Hirco Plc *∞ | 812,346 | $ | 0 | |||||
ReNew Energy Global Plc (USD) * † | 941,000 | 5,156,681 | ||||||
5,156,681 | ||||||||
Total Common Stocks (Cost: $805,557,100) | 823,318,427 | |||||||
PREFERRED SECURITIES: 4.5% | ||||||||
Brazil: 1.0% | ||||||||
Raizen SA | 9,350,000 | 8,591,955 | ||||||
South Korea: 3.5% | ||||||||
Samsung Electronics Co. Ltd. | 660,107 | 29,955,171 | ||||||
Total Preferred Securities (Cost: $48,629,570) | 38,547,126 | |||||||
Total Investments Before Collateral for Securities Loaned: 100.3% (Cost: $854,186,670) | 861,865,553 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.5% | ||||||||
Money Market Fund: 0.5% (Cost: $4,435,916) | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 4,435,916 | 4,435,916 | ||||||
Total Investments: 100.8% (Cost: $858,622,586) | 866,301,469 | |||||||
Liabilities in excess of other assets: (0.8)% | (7,216,819) | |||||||
NET ASSETS: 100.0% | $ | 859,084,650 |
Definitions:
ADR | American Depositary Receipt |
EUR | Euro |
GBP | British Pound |
GDR | Global Depositary Receipt |
HKD | Hong Kong Dollar |
USD | United States Dollar |
Footnotes:
* | Non-income producing |
¥ | Security is valued using significant unobservable inputs that factor in discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
† | Security fully or partially on loan. Total market value of securities on loan is $8,260,996. |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $49,218,641, or 5.7% of net assets. |
See Notes to Financial Statements
13 |
EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Consumer Discretionary | 21.1 | % | $ | 181,358,370 | ||||
Financials | 19.5 | 168,510,770 | ||||||
Information Technology | 18.0 | 154,875,819 | ||||||
Industrials | 16.3 | 140,392,040 | ||||||
Energy | 6.7 | 57,795,427 | ||||||
Health Care | 5.9 | 50,401,567 | ||||||
Real Estate | 4.0 | 34,489,252 | ||||||
Materials | 3.6 | 31,367,883 | ||||||
Communication Services | 2.9 | 25,713,199 | ||||||
Consumer Staples | 1.4 | 11,804,546 | ||||||
Utilities | 0.6 | 5,156,680 | ||||||
100.0 | % | $ | 861,865,553 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | $ | 823,318,427 | ||||||||||||||
Argentina | $ | 35,994,071 | $ | — | $ | — | $ | 35,994,071 | ||||||||
Brazil | 91,990,158 | — | — | 91,990,158 | ||||||||||||
China | 25,789,906 | 177,334,040 | 0 | 203,123,946 | ||||||||||||
Egypt | — | 13,297,030 | — | 13,297,030 | ||||||||||||
Georgia | 38,431,119 | — | — | 38,431,119 | ||||||||||||
Germany | — | 12,300,674 | — | 12,300,674 | ||||||||||||
Greece | — | 3,624,692 | — | 3,624,692 | ||||||||||||
Hungary | — | 10,466,050 | — | 10,466,050 | ||||||||||||
India | 22,164,600 | 113,447,243 | — | 135,611,843 | ||||||||||||
Indonesia | — | 11,405,999 | — | 11,405,999 | ||||||||||||
Kazakhstan | — | 27,912,377 | — | 27,912,377 | ||||||||||||
Kuwait | — | 78,282 | — | 78,282 | ||||||||||||
Mexico | 25,220,853 | — | — | 25,220,853 | ||||||||||||
Philippines | — | 41,360,548 | — | 41,360,548 | ||||||||||||
Poland | — | 10,508,632 | — | 10,508,632 | ||||||||||||
Russia | — | — | — | — | ||||||||||||
South Korea | — | 28,425,898 | — | 28,425,898 | ||||||||||||
Taiwan | — | 87,578,873 | — | 87,578,873 | ||||||||||||
Tanzania | — | 10,705,673 | — | 10,705,673 | ||||||||||||
Turkey | — | 24,445,104 | — | 24,445,104 | ||||||||||||
United Arab Emirates | 5,679,924 | — | — | 5,679,924 | ||||||||||||
United Kingdom | 5,156,681 | — | 0 | 5,156,681 | ||||||||||||
Preferred Securities | 38,547,126 | |||||||||||||||
Brazil | 8,591,955 | — | — | 8,591,955 | ||||||||||||
South Korea | — | 29,955,171 | — | 29,955,171 | ||||||||||||
Money Market Fund | 4,435,916 | — | — | 4,435,916 | ||||||||||||
Total Investments | $ | 263,455,183 | $ | 602,846,286 | $ | 0 | $ | 866,301,469 |
See Notes to Financial Statements
14 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 91.0% | ||||||||
Argentina: 4.8% | ||||||||
Globant SA (USD) * | 280 | $ | 50,322 | |||||
MercadoLibre, Inc. (USD) * | 170 | 201,382 | ||||||
251,704 | ||||||||
Brazil: 8.9% | ||||||||
Arcos Dorados Holdings, Inc. (USD) | 10,000 | 102,500 | ||||||
NU Holdings Ltd. (USD) * | 11,000 | 86,790 | ||||||
Rede D’Or Sao Luiz SA 144A * | 15,000 | 103,129 | ||||||
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA | 70,000 | 177,039 | ||||||
469,458 | ||||||||
China: 30.9% | ||||||||
Baidu, Inc. (ADR) * | 500 | 68,455 | ||||||
Full Truck Alliance Co. Ltd. (ADR) * | 12,000 | 74,640 | ||||||
JD.com, Inc. (HKD) | 1,300 | 22,171 | ||||||
KE Holdings, Inc. (ADR) * | 13,300 | 197,505 | ||||||
Meituan (HKD) 144A * | 130 | 2,039 | ||||||
Ming Yang Smart Energy Group Ltd. | 13,000 | 30,248 | ||||||
MINISO Group Holding Ltd. (ADR) | 6,200 | 105,338 | ||||||
NetEase, Inc. (HKD) | 4,000 | 77,476 | ||||||
Ping An Bank Co. Ltd. | 85,000 | 131,646 | ||||||
Prosus NV (EUR) | 3,900 | 285,612 | ||||||
Shanghai Baosight Software Co. Ltd. | 7,680 | 53,788 | ||||||
Shenzhen Inovance Technology Co. Ltd. | 12,000 | 106,279 | ||||||
Shenzhou International Group Holdings Ltd. (HKD) | 14,200 | 136,383 | ||||||
Tencent Holdings Ltd. (HKD) | 1,300 | 55,122 | ||||||
Wuxi Biologics Cayman, Inc. (HKD) 144A * | 18,000 | 86,509 | ||||||
Zai Lab Ltd. (HKD) * | 15,000 | 41,271 | ||||||
Zhejiang Huayou Cobalt Co. Ltd. | 7,900 | 50,028 | ||||||
Zhejiang Supcon Technology Co. Ltd. | 13,050 | 113,079 | ||||||
1,637,589 | ||||||||
Egypt: 1.0% | ||||||||
Commercial International Bank Egypt SAE | 32,132 | 53,292 | ||||||
Greece: 2.2% | ||||||||
Eurobank Ergasias Services and Holdings SA * | 70,000 | 115,331 | ||||||
Hungary: 1.3% | ||||||||
OTP Bank Nyrt | 2,000 | 71,101 | ||||||
India: 13.3% | ||||||||
Cholamandalam Investment and Finance Co. Ltd. | 7,000 | 97,662 |
Number of Shares | Value | |||||||
India (continued) | ||||||||
Delhivery Ltd. * | 8,000 | $ | 37,142 | |||||
HDFC Bank Ltd. | 9,000 | 186,704 | ||||||
Reliance Industries Ltd. | 12,000 | 374,507 | ||||||
696,015 | ||||||||
Indonesia: 1.9% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 280,000 | 102,226 | ||||||
Kazakhstan: 6.5% | ||||||||
Kaspi.kz JSC (USD) (GDR) | 4,300 | 342,280 | ||||||
Philippines: 2.9% | ||||||||
International Container Terminal Services, Inc. | 41,000 | 151,431 | ||||||
Poland: 1.0% | ||||||||
InPost SA (EUR) * | 5,000 | 54,263 | ||||||
South Africa: 1.2% | ||||||||
Bid Corp. Ltd. | 3,000 | 65,876 | ||||||
South Korea: 3.8% | ||||||||
LG Chem Ltd. | 280 | 142,537 | ||||||
Samsung Biologics Co. Ltd. 144A * | 105 | 59,449 | ||||||
201,986 | ||||||||
Taiwan: 6.4% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 18,000 | 332,519 | ||||||
Turkey: 1.5% | ||||||||
KOC Holding AS | 20,000 | 80,091 | ||||||
United Arab Emirates: 1.0% | ||||||||
Americana Restaurants International Plc | 43,600 | 50,212 | ||||||
United Kingdom: 2.4% | ||||||||
ReNew Energy Global Plc (USD) * | 23,000 | 126,040 | ||||||
Total Common Stocks (Cost: $4,855,550) | 4,801,414 | |||||||
PREFERRED SECURITIES: 6.9% (Cost: $400,746) | ||||||||
South Korea: 6.9% | ||||||||
Samsung Electronics Co. Ltd. | 8,000 | 363,034 | ||||||
MONEY MARKET FUND: 3.4% (Cost: $180,445) | ||||||||
Invesco Treasury Portfolio - Institutional Class | 180,445 | 180,445 | ||||||
Total Investments: 101.3% (Cost: $5,436,741) | 5,344,893 | |||||||
Liabilities in excess of other assets: (1.3)% | (71,007) | |||||||
NET ASSETS: 100.0% | $ | 5,273,886 |
See Notes to Financial Statements
15 |
EMERGING MARKETS LEADERS FUND
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Definitions:
ADR | American Depositary Receipt |
EUR | Euro |
GDR | Global Depositary Receipt |
HKD | Hong Kong Dollar |
USD | United States Dollar |
Footnotes:
* | Non-income producing |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $251,126, or 4.8% of net assets. |
Summary of Investments by Sector | % of Investments | Value | ||||||
Information Technology | 23.4 | % | $ | 1,255,022 | ||||
Consumer Discretionary | 16.9 | 905,637 | ||||||
Financials | 15.8 | 844,751 | ||||||
Industrials | 13.4 | 711,135 | ||||||
Energy | 7.0 | 374,508 | ||||||
Health Care | 5.4 | 290,357 | ||||||
Communication Services | 3.8 | 201,052 | ||||||
Real Estate | 3.7 | 197,505 | ||||||
Materials | 3.6 | 192,565 | ||||||
Utilities | 2.4 | 126,040 | ||||||
Consumer Staples | 1.2 | 65,876 | ||||||
Money Market Fund | 3.4 | 180,445 | ||||||
100.0 | % | $ | 5,344,893 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Argentina | $ | 251,704 | $ | — | $ | — | $ | 251,704 | ||||||||
Brazil | 469,458 | — | — | 469,458 | ||||||||||||
China | 445,938 | 1,191,651 | — | 1,637,589 | ||||||||||||
Egypt | — | 53,292 | — | 53,292 | ||||||||||||
Greece | — | 115,331 | — | 115,331 | ||||||||||||
Hungary | — | 71,101 | — | 71,101 | ||||||||||||
India | — | 696,015 | — | 696,015 | ||||||||||||
Indonesia | — | 102,226 | — | 102,226 | ||||||||||||
Kazakhstan | — | 342,280 | — | 342,280 | ||||||||||||
Philippines | — | 151,431 | — | 151,431 | ||||||||||||
Poland | — | 54,263 | — | 54,263 | ||||||||||||
South Africa | 65,876 | — | — | 65,876 | ||||||||||||
South Korea | — | 201,986 | — | 201,986 | ||||||||||||
Taiwan | — | 332,519 | — | 332,519 | ||||||||||||
Turkey | — | 80,091 | — | 80,091 | ||||||||||||
United Arab Emirates | 50,212 | — | — | 50,212 | ||||||||||||
United Kingdom | 126,040 | — | — | 126,040 | ||||||||||||
Preferred Securities * | — | 363,034 | — | 363,034 | ||||||||||||
Money Market Fund | 180,445 | — | — | 180,445 | ||||||||||||
Total Investments | $ | 1,589,673 | $ | 3,755,220 | $ | — | $ | 5,344,893 |
* | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
16 |
ENVIRONMENTAL SUSTAINABILITY FUND
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 96.4% | ||||||||
Australia: 3.4% | ||||||||
Allkem Ltd. * | 12,411 | $ | 133,468 | |||||
Ecograf Ltd. * † | 86,700 | 8,138 | ||||||
Jervois Global Ltd. * | 24,900 | 1,095 | ||||||
142,701 | ||||||||
Brazil: 0.4% | ||||||||
Yara International ASA (NOK) | 470 | 16,606 | ||||||
British Virgin Islands: 0.1% | ||||||||
Talon Metals Corp. (CAD) * | 17,050 | 4,537 | ||||||
Canada: 1.3% | ||||||||
Ballard Power Systems, Inc. (USD) * † | 1,900 | 8,284 | ||||||
Euro Manganese, Inc. (AUD) * | 92,600 | 10,202 | ||||||
Li-Cycle Holdings Corp. (USD) * † | 2,760 | 15,318 | ||||||
Maple Leaf Foods, Inc. | 1,040 | 20,317 | ||||||
54,121 | ||||||||
China: 5.7% | ||||||||
BYD Co. Ltd. (HKD) | 4,500 | 144,291 | ||||||
Contemporary Amperex Technology Co. Ltd. | 1,800 | 56,828 | ||||||
Flat Glass Group Co. Ltd. (HKD) † | 12,000 | 41,145 | ||||||
242,264 | ||||||||
Denmark: 4.8% | ||||||||
Novozymes A/S | 1,030 | 48,059 | ||||||
Orsted AS 144A | 840 | 79,634 | ||||||
Vestas Wind Systems A/S * | 2,800 | 74,445 | ||||||
202,138 | ||||||||
Finland: 2.5% | ||||||||
Neste Oyj | 2,710 | 104,344 | ||||||
France: 6.0% | ||||||||
Cie de Saint-Gobain | 440 | 26,790 | ||||||
Engie SA | 6,800 | 113,240 | ||||||
Legrand SA | 520 | 51,586 | ||||||
Nexans SA | 730 | 63,306 | ||||||
254,922 | ||||||||
Germany: 3.6% | ||||||||
Infineon Technologies AG | 3,710 | 152,785 | ||||||
Ireland: 0.5% | ||||||||
Kerry Group Plc | 230 | 22,449 | ||||||
Isle of Man: 0.0% | ||||||||
Agronomics Ltd. * | 14,600 | 1,928 | ||||||
Italy: 1.2% | ||||||||
Enel SpA | 7,600 | 51,242 | ||||||
Japan: 2.7% | ||||||||
Keyence Corp. | 240 | 114,038 | ||||||
Netherlands: 1.0% | ||||||||
OCI NV | 1,780 | 42,754 | ||||||
Norway: 3.4% | ||||||||
FREYR Battery SA (USD) * † | 15,260 | 142,681 | ||||||
South Korea: 4.3% | ||||||||
LG Energy Solution Ltd. * | 240 | 101,182 |
Number of Shares | Value | |||||||
South Korea (continued) | ||||||||
Samsung SDI Co. Ltd. | 160 | $ | 81,702 | |||||
182,884 | ||||||||
Spain: 1.3% | ||||||||
Avangrid, Inc. (USD) | 950 | 35,796 | ||||||
Soltec Power Holdings SA * | 4,800 | 22,045 | ||||||
57,841 | ||||||||
Sweden: 3.6% | ||||||||
Atlas Copco AB | 8,400 | 121,270 | ||||||
Oatly Group AB (ADR) * † | 12,650 | 25,933 | ||||||
147,203 | ||||||||
Switzerland: 0.5% | ||||||||
Givaudan SA | 7 | 23,219 | ||||||
United States: 50.1% | ||||||||
Array Technologies, Inc. * | 3,720 | 84,072 | ||||||
Ball Corp. | 1,100 | 64,031 | ||||||
Benson Hill, Inc. * | 4,500 | 5,850 | ||||||
Beyond Meat, Inc. * † | 340 | 4,413 | ||||||
Bloom Energy Corp. * † | 1,900 | 31,065 | ||||||
Bunge Ltd. | 970 | 91,520 | ||||||
Clean Harbors, Inc. * | 250 | 41,108 | ||||||
Corteva, Inc. | 340 | 19,482 | ||||||
Darling Ingredients, Inc. * | 1,490 | 95,047 | ||||||
Deere & Co. | 400 | 162,075 | ||||||
Enphase Energy, Inc. * | 260 | 43,545 | ||||||
EVgo, Inc. * | 8,000 | 32,000 | ||||||
Generac Holdings, Inc. * | 310 | 46,230 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 1,835 | 45,875 | ||||||
Ingredion, Inc. | 210 | 22,250 | ||||||
International Flavors & Fragrances, Inc. | 190 | 15,122 | ||||||
John Bean Technologies Corp. | 110 | 13,343 | ||||||
Lindsay Corp. | 150 | 17,901 | ||||||
MP Materials Corp. * † | 1,560 | 35,693 | ||||||
NextEra Energy Partners LP † | 730 | 42,807 | ||||||
Ormat Technologies, Inc. | 1,150 | 92,529 | ||||||
Pentair Plc | 990 | 63,954 | ||||||
Piedmont Lithium, Inc. * † | 1,460 | 84,257 | ||||||
Plug Power, Inc. * | 1,300 | 13,507 | ||||||
Quanta Services, Inc. | 1,330 | 261,278 | ||||||
Republic Services, Inc. | 690 | 105,687 | ||||||
SolarEdge Technologies, Inc. * | 300 | 80,715 | ||||||
Stem, Inc. * † | 10,020 | 57,314 | ||||||
Sunnova Energy International, Inc. * † | 2,800 | 51,268 | ||||||
Teradyne, Inc. | 640 | 71,251 | ||||||
Tesla, Inc. * | 360 | 94,237 | ||||||
TPI Composites, Inc. * | 2,500 | 25,925 | ||||||
Trimble, Inc. * | 1,800 | 95,292 | ||||||
Xylem, Inc. | 1,000 | 112,620 | ||||||
2,123,263 | ||||||||
Total Common Stocks (Cost: $5,033,752) | 4,083,920 |
See Notes to Financial Statements
17 |
ENVIRONMENTAL SUSTAINABILITY FUND
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
MASTER LIMITED PARTNERSHIP: 0.8% (Cost: $45,048) | ||||||||
Canada: 0.8% | ||||||||
Brookfield Renewable Partners LP (USD) | 1,200 | $ | 35,388 | |||||
MONEY MARKET FUND: 2.9% (Cost: $120,680) | ||||||||
Invesco Treasury Portfolio - Institutional Class | 120,680 | 120,680 | ||||||
Total Investments Before Collateral for Securities Loaned: 100.1% (Cost: $5,199,480) | 4,239,988 |
Number of Shares | Value | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN:7.6% | ||||||||
Money Market Fund: 7.6% (Cost: $320,593) | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 320,593 | $ | 320,593 | |||||
Total Investments: 107.7% (Cost: $5,520,073) | 4,560,581 | |||||||
Liabilities in excess of other assets: (7.7)% | (327,235) | |||||||
NET ASSETS: 100.0% | $ | 4,233,346 |
Definitions:
ADR | American Depositary Receipt |
AUD | Australia Dollar |
CAD | Canadian Dollar |
HKD | Hong Kong Dollar |
NOK | Norwegian Krone |
USD | United States Dollar |
Footnotes:
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $520,870. |
144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted $79,634, or 1.9% of net assets. |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Advanced Materials | 25.5 | % | $ | 1,083,096 | ||||
Renewable Energy | 25.4 | 1,076,871 | ||||||
Smart Resource Management | 21.5 | 908,356 | ||||||
Agriculture Technology | 14.9 | 630,366 | ||||||
Recycling | 5.3 | 226,144 | ||||||
Water | 4.6 | 194,475 | ||||||
Money Market Fund | 2.8 | 120,680 | ||||||
100.0 | % | $ | 4,239,988 |
See Notes to Financial Statements
18 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 142,701 | $ | — | $ | 142,701 | ||||||||
Brazil | — | 16,606 | — | 16,606 | ||||||||||||
British Virgin Islands | 4,537 | — | — | 4,537 | ||||||||||||
Canada | 43,919 | 10,202 | — | 54,121 | ||||||||||||
China | — | 242,264 | — | 242,264 | ||||||||||||
Denmark | — | 202,138 | — | 202,138 | ||||||||||||
Finland | — | 104,344 | — | 104,344 | ||||||||||||
France | — | 254,922 | — | 254,922 | ||||||||||||
Germany | — | 152,785 | — | 152,785 | ||||||||||||
Ireland | 22,449 | — | — | 22,449 | ||||||||||||
Isle of Man | 1,928 | — | — | 1,928 | ||||||||||||
Italy | — | 51,242 | — | 51,242 | ||||||||||||
Japan | — | 114,038 | — | 114,038 | ||||||||||||
Netherlands | — | 42,754 | — | 42,754 | ||||||||||||
Norway | 142,681 | — | — | 142,681 | ||||||||||||
South Korea | — | 182,884 | — | 182,884 | ||||||||||||
Spain | 35,796 | 22,045 | — | 57,841 | ||||||||||||
Sweden | 25,933 | 121,270 | — | 147,203 | ||||||||||||
Switzerland | 23,219 | — | — | 23,219 | ||||||||||||
United States | 2,123,263 | — | — | 2,123,263 | ||||||||||||
Master Limited Partnership * | 35,388 | — | — | 35,388 | ||||||||||||
Money Market Funds | 441,273 | — | — | 441,273 | ||||||||||||
Total Investments | $ | 2,900,386 | $ | 1,660,195 | $ | — | $ | 4,560,581 |
* | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
19 |
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 97.2% | ||||||||
Australia: 5.9% | ||||||||
Allkem Ltd. * | 1,531,649 | $ | 16,471,426 | |||||
Ecograf Ltd. * † | 1,371,981 | 128,786 | ||||||
Glencore Plc (GBP) | 5,312,700 | 30,122,359 | ||||||
Jervois Global Ltd. * † | 5,032,257 | 221,247 | ||||||
46,943,818 | ||||||||
Brazil: 2.8% | ||||||||
Vale SA (ADR) | 1,417,900 | 19,028,218 | ||||||
Yara International ASA (NOK) | 91,500 | 3,232,868 | ||||||
22,261,086 | ||||||||
British Virgin Islands: 0.1% | ||||||||
Talon Metals Corp. (CAD) * | 3,698,900 | 984,233 | ||||||
Canada: 9.3% | ||||||||
Agnico Eagle Mines Ltd. (USD) | 251,506 | 12,570,270 | ||||||
Alamos Gold, Inc. (USD) | 678,000 | 8,081,760 | ||||||
Barrick Gold Corp. (USD) | 899,145 | 15,222,525 | ||||||
Euro Manganese, Inc. (AUD) * | 1,988,272 | 219,060 | ||||||
Franco-Nevada Corp. (USD) | 92,500 | 13,190,500 | ||||||
Kinross Gold Corp. (USD) | 2,111,500 | 10,071,855 | ||||||
Nouveau Monde Graphite, Inc. (USD) * † | 172,300 | 523,792 | ||||||
Nutrien Ltd. (USD) | 235,471 | 13,904,562 | ||||||
73,784,324 | ||||||||
China: 1.5% | ||||||||
PetroChina Co. Ltd. (HKD) | 16,757,000 | 11,635,350 | ||||||
Finland: 0.6% | ||||||||
Neste Oyj | 110,300 | 4,246,907 | ||||||
France: 1.0% | ||||||||
Nexans SA | 93,830 | 8,136,979 | ||||||
Ghana: 0.9% | ||||||||
Kosmos Energy Ltd. (USD) * | 1,174,800 | 7,037,052 | ||||||
Italy: 3.2% | ||||||||
Eni SpA | 1,170,700 | 16,853,849 | ||||||
Saipem SpA * | 2,677,200 | 3,727,745 | ||||||
Saras SpA | 3,733,200 | 4,630,344 | ||||||
25,211,938 | ||||||||
Netherlands: 1.4% | ||||||||
OCI NV | 440,935 | 10,590,820 | ||||||
Norway: 2.7% | ||||||||
Equinor ASA (ADR) † | 440,000 | 12,852,400 | ||||||
FREYR Battery SA (USD) * † | 571,100 | 5,339,785 | ||||||
FREYR Battery SA (USD) * ø | 350,000 | 3,272,500 | ||||||
21,464,685 | ||||||||
South Africa: 3.1% | ||||||||
Anglo American Plc (GBP) | 612,600 | 17,442,857 | ||||||
Sibanye Stillwater Ltd. (ADR) † | 1,165,900 | 7,275,216 | ||||||
24,718,073 | ||||||||
Spain: 2.1% | ||||||||
Repsol SA † | 1,101,800 | 16,024,577 | ||||||
Soltec Power Holdings SA * † | 115,400 | 529,997 | ||||||
16,554,574 |
Number of Shares | Value | |||||||
Turkey: 0.6% | ||||||||
Eldorado Gold Corp. (USD) * † | 494,700 | $ | 4,996,470 | |||||
United Kingdom: 8.7% | ||||||||
BP Plc Spons (ADR) | 437,200 | 15,428,788 | ||||||
Endeavour Mining Plc (CAD) | 432,500 | 10,365,635 | ||||||
Shell Plc (ADR) | 397,200 | 23,982,936 | ||||||
TechnipFMC Plc (USD) * | 1,133,400 | 18,837,108 | ||||||
68,614,467 | ||||||||
United States: 49.8% | ||||||||
5E Advanced Materials, Inc. * | 134,200 | 440,176 | ||||||
Array Technologies, Inc. * | 387,300 | 8,752,980 | ||||||
Baker Hughes Co. | 430,700 | 13,614,427 | ||||||
Benson Hill, Inc. * † | 479,400 | 623,220 | ||||||
Bunge Ltd. | 239,300 | 22,577,955 | ||||||
ChampionX Corp. | 322,200 | 10,001,088 | ||||||
Chart Industries, Inc. * † | 97,934 | 15,648,874 | ||||||
Chesapeake Energy Corp. † | 148,000 | 12,384,640 | ||||||
Chevron Corp. | 52,000 | 8,182,200 | ||||||
ConocoPhillips | 185,641 | 19,234,264 | ||||||
Corteva, Inc. | 351,366 | 20,133,272 | ||||||
Darling Ingredients, Inc. * | 112,300 | 7,163,617 | ||||||
Devon Energy Corp. | 131,932 | 6,377,593 | ||||||
Diamondback Energy, Inc. | 91,568 | 12,028,372 | ||||||
EQT Corp. | 382,100 | 15,715,773 | ||||||
EVgo, Inc. * † | 300,600 | 1,202,400 | ||||||
Excelerate Energy, Inc. | 203,400 | 4,135,122 | ||||||
FMC Corp. | 70,431 | 7,348,771 | ||||||
Freeport-McMoRan, Inc. | 532,100 | 21,284,000 | ||||||
Halliburton Co. | 418,400 | 13,803,016 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. † | 334,877 | 8,371,925 | ||||||
Hess Corp. | 169,100 | 22,989,145 | ||||||
Kirby Corp. * | 171,500 | 13,196,925 | ||||||
Liberty Energy, Inc. | 646,850 | 8,648,385 | ||||||
Marathon Oil Corp. | 357,500 | 8,229,650 | ||||||
Mosaic Co. | 183,900 | 6,436,500 | ||||||
MP Materials Corp. * † | 315,300 | 7,214,064 | ||||||
Newmont Corp. | 323,455 | 13,798,590 | ||||||
Ormat Technologies, Inc. † | 155,440 | 12,506,702 | ||||||
Piedmont Lithium, Inc. * † | 136,700 | 7,888,957 | ||||||
Pioneer Natural Resources Co. | 35,988 | 7,455,994 | ||||||
Schlumberger NV | 287,300 | 14,112,176 | ||||||
Solid Power, Inc. * † | 83,500 | 212,090 | ||||||
Stem, Inc. * ø | 362,000 | 2,083,310 | ||||||
Stem, Inc. * † | 789,832 | 4,517,839 | ||||||
Union Pacific Corp. | 23,600 | 4,829,032 | ||||||
Valero Energy Corp. | 260,600 | 30,568,380 | ||||||
393,711,424 | ||||||||
Zambia: 3.5% | ||||||||
First Quantum Minerals Ltd. (CAD) † | 1,167,200 | 27,612,793 | ||||||
Total Common Stocks (Cost: $614,524,006) | 768,504,993 |
See Notes to Financial Statements
20 |
Number of Shares | Value | |||||||
WARRANTS: 0.1% | ||||||||
Norway: 0.1% | ||||||||
FREYR Battery SA, USD 11.50, exp. 09/01/27 | 115,150 | $ | 340,844 | |||||
United States: 0.0% | ||||||||
Benson Hill, Inc., USD 11.50, exp. 12/24/25 | 71,575 | 14,172 | ||||||
Total Warrants (Cost: $206,487) | 355,016 | |||||||
MONEY MARKET FUND: 2.6% (Cost: $20,728,161) | ||||||||
Invesco Treasury Portfolio - Institutional Class | 20,728,161 | 20,728,161 | ||||||
Total Investments Before Collateral for Securities Loaned: 99.9% (Cost: $635,458,654) | 789,588,170 |
Number of Shares | Value | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 1.8% | ||||||||
Money Market Fund: 1.8% (Cost: $14,618,467) | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 14,618,467 | $ | 14,618,467 | |||||
Total Investments: 101.7% (Cost: $650,077,121) | 804,206,637 | |||||||
Liabilities in excess of other assets: (1.7)% | (13,265,250) | |||||||
NET ASSETS: 100.0% | $ | 790,941,387 |
Definitions:
ADR | American Depositary Receipt |
AUD | Australia Dollar |
CAD | Canadian Dollar |
GBP | British Pound |
HKD | Hong Kong Dollar |
NOK | Norwegian Krone |
USD | United States Dollar |
Footnotes:
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $78,969,687. |
ø | Restricted Security – the aggregate value of restricted securities is $5,355,810, or 0.7% of net assets |
Restricted securities held by the Fund as of June 30, 2023 are as follows:
Security | Acquisition Date | Number of Shares | Acquisition Cost | Value | % of Net Assets | |||||||||||||
FREYR Battery SA | 07/06/2021 | 350,000 | $3,500,000 | $3,272,500 | 0.4 | % | ||||||||||||
Stem, Inc. | 04/28/2021 | 362,000 | 3,620,000 | 2,083,310 | 0.3 | % | ||||||||||||
$7,120,000 | $5,355,810 | 0.7 | % |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Oil & Gas | 42.9 | % | $ | 338,490,374 | ||||
Base & Industrial Metals | 18.9 | 149,581,969 | ||||||
Gold & Precious Metals | 12.1 | 95,572,821 | ||||||
Agriculture | 11.7 | 92,025,756 | ||||||
Renewables & Alternatives | 7.5 | 59,514,258 | ||||||
Industrials & Utilities | 4.3 | 33,674,831 | ||||||
Money Market Fund | 2.6 | 20,728,161 | ||||||
100.0 | % | $ | 789,588,170 |
See Notes to Financial Statements
21 |
GLOBAL RESOURCES FUND
SCHEDULE OF INVESTMENTS
(unaudited) (continued)
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 46,943,818 | $ | — | $ | 46,943,818 | ||||||||
Brazil | 19,028,218 | 3,232,868 | — | 22,261,086 | ||||||||||||
British Virgin Islands | 984,233 | — | — | 984,233 | ||||||||||||
Canada | 73,565,264 | 219,060 | — | 73,784,324 | ||||||||||||
China | — | 11,635,350 | — | 11,635,350 | ||||||||||||
Finland | — | 4,246,907 | — | 4,246,907 | ||||||||||||
France | — | 8,136,979 | — | 8,136,979 | ||||||||||||
Ghana | 7,037,052 | — | — | 7,037,052 | ||||||||||||
Italy | — | 25,211,938 | — | 25,211,938 | ||||||||||||
Netherlands | — | 10,590,820 | — | 10,590,820 | ||||||||||||
Norway | 21,464,685 | — | — | 21,464,685 | ||||||||||||
South Africa | 7,275,216 | 17,442,857 | — | 24,718,073 | ||||||||||||
Spain | — | 16,554,574 | — | 16,554,574 | ||||||||||||
Turkey | 4,996,470 | — | — | 4,996,470 | ||||||||||||
United Kingdom | 68,614,467 | — | — | 68,614,467 | ||||||||||||
United States | 393,711,424 | — | — | 393,711,424 | ||||||||||||
Zambia | 27,612,793 | — | — | 27,612,793 | ||||||||||||
Warrants * | 355,016 | — | — | 355,016 | ||||||||||||
Money Market Funds | 35,346,628 | — | — | 35,346,628 | ||||||||||||
Total Investments | $ | 659,991,466 | $ | 144,215,171 | $ | — | $ | 804,206,637 |
* | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
22 |
INTERNATIONAL INVESTORS GOLD FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.7% | ||||||||
Australia: 19.6% | ||||||||
Bellevue Gold Ltd. * | 35,927,763 | $ | 30,735,173 | |||||
De Grey Mining Ltd. * † | 10,771,722 | 9,760,840 | ||||||
Emerald Resources NL * † | 8,103,636 | 11,104,015 | ||||||
Evolution Mining Ltd. † | 5,909,787 | 12,866,686 | ||||||
Northern Star Resources Ltd. | 4,114,800 | 33,522,738 | ||||||
Perseus Mining Ltd. | 2,392,900 | 2,658,217 | ||||||
Predictive Discovery Ltd. * † | 82,421,400 | 9,122,581 | ||||||
Resolute Mining Ltd. * † | 58,671,435 | 15,425,316 | ||||||
West African Resources Ltd. * | 26,457,984 | 15,457,135 | ||||||
140,652,701 | ||||||||
Brazil: 5.3% | ||||||||
Wheaton Precious Metals Corp. (USD) | 870,791 | 37,635,587 | ||||||
Canada: 52.1% | ||||||||
Agnico Eagle Mines Ltd. (USD) | 935,231 | 46,742,845 | ||||||
Alamos Gold, Inc. (USD) | 3,798,223 | 45,274,818 | ||||||
B2Gold Corp. | 3,342,872 | 11,910,440 | ||||||
B2Gold Corp. (USD) | 5,333,341 | 19,040,027 | ||||||
Barrick Gold Corp. (USD) | 2,370,600 | 40,134,258 | ||||||
Bear Creek Mining Corp. * | 948,000 | 393,584 | ||||||
Benchmark Metals, Inc. * | 10,463,099 | 2,132,506 | ||||||
Franco-Nevada Corp. (USD) | 232,200 | 33,111,720 | ||||||
G Mining Ventures Corp. * | 10,281,966 | 8,459,968 | ||||||
G2 Goldfields Inc. (USD) | 3,905,600 | 2,365,192 | ||||||
G2 Goldfields, Inc. * | 1,127,000 | 689,089 | ||||||
Galway Metals, Inc. * † ‡ | 5,301,789 | 1,520,800 | ||||||
Goldsource Mines, Inc. * ‡ | 4,314,354 | 1,025,870 | ||||||
Kinross Gold Corp. (USD) | 8,132,418 | 38,791,634 | ||||||
Liberty Gold Corp. * ‡ | 21,139,114 | 6,941,321 | ||||||
Liberty Gold Corp. * ‡ ø | 10,822,000 | 3,512,708 | ||||||
Lundin Gold, Inc. | 593,100 | 7,096,158 | ||||||
Marathon Gold Corp. * | 5,663,251 | 3,462,716 | ||||||
O3 Mining, Inc. * | 1,807,700 | 2,087,776 | ||||||
Orezone Gold Corp. * † | 14,851,106 | 14,125,226 | ||||||
Osisko Gold Royalties Ltd. (USD) † | 1,875,800 | 28,831,046 | ||||||
Osisko Mining, Inc. * | 3,682,160 | 8,950,032 | ||||||
Probe Gold, Inc. * † | 3,434,223 | 3,940,380 | ||||||
Pure Gold Mining, Inc. * ø | 5,058,500 | 4 | ||||||
Pure Gold Mining, Inc. ø | 18,800,000 | 14 | ||||||
Reunion Gold Corp. * | 30,191,820 | 11,281,337 | ||||||
Rio2 Ltd. * | 8,014,056 | 1,724,103 | ||||||
Silver Tiger Metals, Inc. * | 5,982,500 | 959,639 | ||||||
Skeena Resources Ltd. * | 1,264,550 | 6,099,622 | ||||||
Snowline Gold Corp. * † | 1,322,000 | 3,702,299 | ||||||
SSR Mining, Inc. (USD) | 993,650 | 14,089,957 | ||||||
West Red Lake Gold Mines Ltd. ‡ ø | 11,157,000 | 4,614,059 | ||||||
373,011,148 | ||||||||
Mexico: 1.8% | ||||||||
Fresnillo Plc (GBP) | 786,091 | 6,099,686 | ||||||
GoGold Resources, Inc. (CAD) * | 3,120,018 | 3,579,866 |
Number of Shares | Value | |||||||
Mexico (continued) | ||||||||
GoGold Resources, Inc. (CAD) * | 2,725,643 | $ | 3,086,216 | |||||
12,765,768 | ||||||||
South Africa: 1.7% | ||||||||
Gold Fields Ltd. (ADR) † | 882,000 | 12,198,060 | ||||||
Tanzania: 1.2% | ||||||||
AngloGold Ashanti Ltd. (ADR) | 407,000 | 8,583,630 | ||||||
Turkey: 1.3% | ||||||||
Eldorado Gold Corp. (USD) * † | 904,033 | 9,130,733 | ||||||
United Kingdom: 6.8% | ||||||||
Endeavour Mining Plc (CAD) | 2,042,831 | 48,960,094 | ||||||
United States: 9.9% | ||||||||
Newmont Corp. | 657,326 | 28,041,527 | ||||||
Royal Gold, Inc. | 375,600 | 43,111,368 | ||||||
71,152,895 | ||||||||
Total Common Stocks (Cost: $472,681,138) | 714,090,616 | |||||||
WARRANTS: 0.1% | ||||||||
Canada: 0.1% | ||||||||
Benchmark Metals, Inc., CAD 1.55, exp. 12/09/23 ∞ | 639,000 | 0 | ||||||
Marathon Gold Corp., CAD 1.35, exp. 09/19/24 ∞ | 635,000 | 88,712 | ||||||
Nighthawk Gold Corp., CAD 1.50, exp. 07/07/23 ∞ | 1,649,000 | 0 | ||||||
Reunion Gold Corp., CAD 0.39, exp. 07/06/24 ∞ | 3,605,160 | 474,290 | ||||||
Total Warrants (Cost: $340,591) | 563,002 | |||||||
MONEY MARKET FUND: 0.3% (Cost: $2,446,975) | ||||||||
Invesco Treasury Portfolio - Institutional Class | 2,446,975 | 2,446,975 | ||||||
Total Investments Before Collateral for Securities Loaned: 100.1% (Cost: $475,468,704) | 717,100,593 | |||||||
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.0% | ||||||||
Money Market Fund: 0.0% (Cost: $134,915) | ||||||||
State Street Navigator Securities Lending Government Money Market Portfolio | 134,915 | 134,915 |
See Notes to Financial Statements
23 |
INTERNATIONAL INVESTORS GOLD FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
(unaudited) (continued)
Number of Shares | Value | |||||||
Total Investments: 100.1% (Cost: $475,603,619) | $ | 717,235,508 | ||||||
Liabilities in excess of other assets: (0.1)% | (477,315) | |||||||
NET ASSETS: 100.0% | $ | 716,758,193 |
Definitions:
ADR | American Depositary Receipt |
CAD | Canadian Dollar |
GBP | British Pound |
USD | United States Dollar |
Footnotes:
* | Non-income producing |
† | Security fully or partially on loan. Total market value of securities on loan is $9,296,987. |
‡ | Affiliated issuer – as defined under the Investment Company Act of 1940. |
ø | Restricted Security – the aggregate value of restricted securities is $8,126,785, or 1.1% of net assets |
∞ | Security is valued using pricing models and significant unobservable inputs that factor in volatility and discount for lack of marketability and is classified as Level 3 in the fair value hierarchy. |
Restricted securities held by the Fund as of June 30, 2023 are as follows:
Security | Acquisition Date | Number of Shares | Acquisition Cost | Value | % of Net Assets | |||||||||||
Liberty Gold Corp. | 10/04/2021 | 10,822,000 | $5,138,855 | $3,512,708 | 0.5 | % | ||||||||||
Pure Gold Mining, Inc. | 05/16/2022 | 18,800,000 | 2,194,296 | 14 | 0.0 | % | ||||||||||
Pure Gold Mining, Inc. | 05/21/2020 | 5,058,500 | 3,571,215 | 4 | 0.0 | % | ||||||||||
West Red Lake Gold Mines Ltd. | 04/18/2023 | 11,157,000 | 2,915,338 | 4,614,059 | 0.6 | % | ||||||||||
$13,819,704 | $8,126,785 | 1.1 | % |
Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
Gold | 96.0 | % | $ | 688,421,353 | ||||
Precious Metals & Minerals | 1.7 | 11,711,992 | ||||||
Diversified Metals & Mining | 1.4 | 9,980,768 | ||||||
Silver | 0.6 | 4,539,505 | ||||||
Money Market Fund | 0.3 | 2,446,975 | ||||||
100.0 | % | $ | 717,100,593 |
Transactions in securities of affiliates for the period ended June 30, 2023 were as follows:
Value 12/31/2022 | Purchases | Sales Proceeds | Realized Gain (Loss) | Dividend Income | Net Change in Unrealized Appreciation (Depreciation) | Value 6/30/2023 |
| |||||||||||||||||||||
Benchmark Metals, Inc. | $3,052,381 | $– | $– | $– | $– | $(919,875) | $–(a) | |||||||||||||||||||||
Benchmark Metals, Inc.* | 2,151 | – | – | – | – | (2,150) | –(a) | |||||||||||||||||||||
Galway Metals, Inc. | 2,643,064 | – | – | – | – | (1,122,264) | 1,520,800 | |||||||||||||||||||||
Goldsource Mines, Inc. | 1,417,937 | – | – | – | – | (392,067) | 1,025,870 | |||||||||||||||||||||
Liberty Gold Corp. | 9,196,827 | – | (384,749) | (545,774) | – | (1,324,983) | 6,941,321 | |||||||||||||||||||||
Liberty Gold Corp.ø | 4,475,864 | – | – | – | – | (963,156) | 3,512,708 | |||||||||||||||||||||
West Red Lake Gold Mines Ltd.ø | – | 2,915,338 | – | – | – | 1,698,721 | 4,614,059 | |||||||||||||||||||||
$20,788,224 | $2,915,338 | $(384,749) | $(545,774) | $– | $(3,025,774) | $17,614,758 |
See Notes to Financial Statements
24 |
Footnotes:
(a) | Security held by the Fund, however not classified as an affiliate at the end of the reporting period. |
* | Warrants |
ø | Restricted Security. |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 140,652,701 | $ | — | $ | 140,652,701 | ||||||||
Brazil | 37,635,587 | — | — | 37,635,587 | ||||||||||||
Canada | 364,490,779 | 8,520,369 | — | 373,011,148 | ||||||||||||
Mexico | 3,579,866 | 9,185,902 | — | 12,765,768 | ||||||||||||
South Africa | 12,198,060 | — | — | 12,198,060 | ||||||||||||
Tanzania | 8,583,630 | — | — | 8,583,630 | ||||||||||||
Turkey | 9,130,733 | — | — | 9,130,733 | ||||||||||||
United Kingdom | 48,960,094 | — | — | 48,960,094 | ||||||||||||
United States | 71,152,895 | — | — | 71,152,895 | ||||||||||||
Warrants * | — | — | 563,002 | 563,002 | ||||||||||||
Money Market Funds | 2,581,890 | — | — | 2,581,890 | ||||||||||||
Total Investments | $ | 558,313,534 | $ | 158,358,972 | $ | 563,002 | $ | 717,235,508 |
* | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
25 |
VANECK MORNINGSTAR WIDE MOAT FUND
SCHEDULE OF INVESTMENTS
June 30, 2023 (unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS: 99.5% | ||||||||
Banks: 5.9% | ||||||||
Bank of America Corp. | 7,653 | $ | 219,565 | |||||
US Bancorp | 12,906 | 426,414 | ||||||
Wells Fargo & Co. | 10,704 | 456,847 | ||||||
1,102,826 | ||||||||
Capital Goods: 9.7% | ||||||||
3M Co. | 4,176 | 417,976 | ||||||
Allegion Plc | 3,934 | 472,159 | ||||||
Emerson Electric Co. | 5,171 | 467,407 | ||||||
Masco Corp. | 8,146 | 467,417 | ||||||
1,824,959 | ||||||||
Commercial & Professional Services: 5.3% | ||||||||
Equifax, Inc. | 2,031 | 477,894 | ||||||
TransUnion | 6,557 | 513,610 | ||||||
991,504 | ||||||||
Consumer Discretionary Distribution & Retail: 3.6% | ||||||||
Amazon.com, Inc. * | 2,171 | 283,012 | ||||||
Etsy, Inc. * | 4,584 | 387,852 | ||||||
670,864 | ||||||||
Consumer Durables & Apparel: 3.7% | ||||||||
NIKE, Inc. | 2,107 | 232,550 | ||||||
Polaris, Inc. | 3,822 | 462,194 | ||||||
694,744 | ||||||||
Consumer Services: 2.6% | ||||||||
Domino’s Pizza, Inc. | 1,421 | 478,863 | ||||||
Financial Services: 9.7% | ||||||||
Berkshire Hathaway, Inc. * | 673 | 229,493 | ||||||
BlackRock, Inc. | 326 | 225,312 | ||||||
Charles Schwab Corp. | 4,055 | 229,837 | ||||||
Intercontinental Exchange, Inc. | 4,205 | 475,501 | ||||||
MarketAxess Holdings, Inc. | 831 | 217,240 | ||||||
The Bank of New York Mellon Corp. | 5,161 | 229,768 | ||||||
Tradeweb Markets, Inc. | 3,261 | 223,313 | ||||||
1,830,464 | ||||||||
Food, Beverage & Tobacco: 3.6% | ||||||||
Constellation Brands, Inc. | 972 | 239,238 | ||||||
Kellogg Co. | 6,597 | 444,638 | ||||||
683,876 | ||||||||
Health Care Equipment & Services: 7.7% | ||||||||
Medtronic Plc | 5,371 | 473,185 | ||||||
Veeva Systems, Inc. * | 2,431 | 480,682 | ||||||
Zimmer Biomet Holdings, Inc. | 3,315 | 482,664 | ||||||
1,436,531 | ||||||||
Household & Personal Products: 1.3% | ||||||||
Estee Lauder Cos, Inc. | 1,245 | 244,493 |
Number of Shares | Value | |||||||
Materials: 6.0% | ||||||||
Corteva, Inc. | 3,884 | $ | 222,553 | |||||
Ecolab, Inc. | 2,602 | 485,768 | ||||||
International Flavors & Fragrances, Inc. | 5,253 | 418,086 | ||||||
1,126,407 | ||||||||
Media & Entertainment: 8.8% | ||||||||
Alphabet, Inc. * | 3,945 | 472,217 | ||||||
Comcast Corp. | 11,173 | 464,238 | ||||||
Meta Platforms, Inc. * | 1,081 | 310,225 | ||||||
Walt Disney Co. * | 4,637 | 413,991 | ||||||
1,660,671 | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences: 10.4% | ||||||||
Agilent Technologies, Inc. | 1,935 | 232,684 | ||||||
Amgen, Inc. | 1,020 | 226,460 | ||||||
Biogen, Inc. * | 1,508 | 429,554 | ||||||
Gilead Sciences, Inc. | 5,630 | 433,904 | ||||||
Pfizer, Inc. | 10,861 | 398,381 | ||||||
Waters Corp. * | 877 | 233,756 | ||||||
1,954,739 | ||||||||
Semiconductors & Semiconductor Equipment: 5.0% | ||||||||
Lam Research Corp. | 406 | 261,001 | ||||||
Microchip Technology, Inc. | 2,438 | 218,421 | ||||||
Teradyne, Inc. | 4,100 | 456,453 | ||||||
935,875 | ||||||||
Software & Services: 16.2% | ||||||||
Adobe, Inc. * | 594 | 290,460 | ||||||
Fortinet, Inc. * | 3,484 | 263,356 | ||||||
Guidewire Software, Inc. * | 3,115 | 236,989 | ||||||
Intuit, Inc. | 528 | 241,924 | ||||||
Microsoft Corp. | 759 | 258,470 | ||||||
Roper Technologies, Inc. | 487 | 234,150 | ||||||
Salesforce, Inc. * | 2,248 | 474,913 | ||||||
ServiceNow, Inc. * | 491 | 275,927 | ||||||
Tyler Technologies, Inc. * | 1,220 | 508,093 | ||||||
Workday, Inc. * | 1,151 | 259,999 | ||||||
3,044,281 | ||||||||
Total Common Stocks (Cost: $16,861,551) | 18,681,097 | |||||||
MONEY MARKET FUND: 0.4% (Cost: $79,855) | ||||||||
Invesco Treasury Portfolio - Institutional Class | 79,855 | 79,855 | ||||||
Total Investments: 99.9% (Cost: $16,941,406) | 18,760,952 | |||||||
Other assets less liabilities: 0.1% | 26,070 | |||||||
NET ASSETS: 100.0% | $ | 18,787,022 |
Footnotes:
* | Non-income producing |
See Notes to Financial Statements
26 |
Summary of Investments by Sector | % of Investments | Value | ||||||
Information Technology | 21.2 | % | $ | 3,980,156 | ||||
Health Care | 18.1 | 3,391,270 | ||||||
Financials | 15.7 | 2,933,290 | ||||||
Industrials | 15.0 | 2,816,463 | ||||||
Consumer Discretionary | 9.9 | 1,844,471 | ||||||
Communication Services | 8.8 | 1,660,671 | ||||||
Materials | 6.0 | 1,126,407 | ||||||
Consumer Staples | 4.9 | 928,369 | ||||||
Money Market Fund | 0.4 | 79,855 | ||||||
100.0 | % | $ | 18,760,952 |
The summary of inputs used to value the Fund’s investments as of June 30, 2023 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
Common Stocks * | $ | 18,681,097 | $ | — | $ | — | $ | 18,681,097 | ||||||||
Money Market Fund | 79,855 | — | — | 79,855 | ||||||||||||
Total Investments | $ | 18,760,952 | $ | — | $ | — | $ | 18,760,952 |
* | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
27 |
VANECK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
CM Commodity Index Fund (a) | Emerging Markets Bond Fund | Emerging Markets Fund | Emerging Markets Leaders Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value (1) (2) | $ | 551,493,646 | $ | 69,401,719 | $ | 861,865,553 | $ | 5,344,893 | ||||||||
Short-term investments held as collateral for securities loaned (3) | 6,024 | — | 4,435,916 | — | ||||||||||||
Total return swap contracts, at value | 4,326,297 | — | — | — | ||||||||||||
Cash | 13,241,478 | 47,112 | — | — | ||||||||||||
Cash denominated in foreign currency, at value (4) | — | 15,243 | 676,861 | 22,474 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | — | 921,055 | 322,952 | — | ||||||||||||
Shares of beneficial interest sold | 2,582,264 | 432,871 | 776,968 | — | ||||||||||||
Due from Adviser | — | — | — | 10,896 | ||||||||||||
Dividends and interest | 134,660 | 1,428,914 | 3,331,441 | 3,479 | ||||||||||||
Due from custodian | — | — | — | — | ||||||||||||
Prepaid expenses | 1,174 | 28 | 7,673 | 4 | ||||||||||||
Total assets | 571,785,543 | 72,246,942 | 871,417,364 | 5,381,746 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | — | 292,737 | — | 54,505 | ||||||||||||
Shares of beneficial interest redeemed | 797,105 | 9,772 | 1,005,247 | — | ||||||||||||
Collateral for securities loaned | 6,024 | — | 4,435,916 | — | ||||||||||||
Line of credit | — | — | 193,849 | — | ||||||||||||
Due to Adviser | 194,813 | 32,148 | 378,685 | — | ||||||||||||
Due to Distributor | 6,567 | 1,531 | 22,866 | 181 | ||||||||||||
Deferred Trustee fees | 357,998 | 14,658 | 1,309,377 | 773 | ||||||||||||
Accrued expenses | 593,398 | 62,697 | 4,986,774 | 52,401 | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | 72 | — | — | ||||||||||||
Total liabilities | 1,955,905 | 413,615 | 12,332,714 | 107,860 | ||||||||||||
NET ASSETS | $ | 569,829,638 | $ | 71,833,327 | $ | 859,084,650 | $ | 5,273,886 | ||||||||
Net Assets consist of: | ||||||||||||||||
Aggregate paid in capital | $ | 727,185,198 | $ | 105,840,880 | $ | 1,137,466,428 | $ | 6,056,684 | ||||||||
Total distributable loss | (157,355,560) | (34,007,553) | (278,381,778) | (782,798) | ||||||||||||
NET ASSETS | $ | 569,829,638 | $ | 71,833,327 | $ | 859,084,650 | $ | 5,273,886 | ||||||||
(1) Value of securities on loan | $ | 41,803,383 | $ | — | $ | 8,260,996 | $ | — | ||||||||
(2) Cost of investments | $ | 551,515,766 | $ | 68,136,335 | $ | 854,186,670 | $ | 5,436,741 | ||||||||
(3) Cost of short-term investments held as collateral for securities loaned | $ | 6,024 | $ | — | $ | 4,435,916 | $ | — | ||||||||
(4) Cost of cash denominated in foreign currency | $ | — | $ | 15,336 | $ | 676,185 | $ | 22,474 |
See Notes to Financial Statements
28 |
VANECK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited) (continued)
CM Commodity Index Fund (a) | Emerging Markets Bond Fund | Emerging Markets Fund | Emerging Markets Leaders Fund | |||||||||||||
Class A Shares: | ||||||||||||||||
Net Assets | $ | 26,919,229 | $ | 7,824,484 | $ | 65,863,975 | $ | 873,320 | ||||||||
Shares of beneficial interest outstanding | 6,139,662 | 1,458,836 | 5,157,726 | 40,291 | ||||||||||||
Net asset value and redemption price per share | $ | 4.38 | $ | 5.36 | $ | 12.77 | $ | 21.68 | ||||||||
Maximum offering price per share (Net asset value per share ÷ 94.25%) | $ | 4.65 | $ | 5.69 | $ | 13.55 | $ | 23.00 | ||||||||
Class C Shares: | ||||||||||||||||
Net Assets | N/A | N/A | $ | 10,114,831 | N/A | |||||||||||
Shares of beneficial interest outstanding | N/A | N/A | 925,098 | N/A | ||||||||||||
Net asset value and redemption price per share (Redemption may be subject to a contingent deferred sales charge within one year of ownership) | N/A | N/A | $ | 10.93 | N/A | |||||||||||
Class I Shares: | ||||||||||||||||
Net Assets | $ | 214,716,355 | $ | 27,467,181 | $ | 354,716,326 | $ | 1,760,695 | ||||||||
Shares of beneficial interest outstanding | 47,092,535 | 5,074,877 | 25,938,330 | 81,007 | ||||||||||||
Net asset value and redemption price per share | $ | 4.56 | $ | 5.41 | $ | 13.68 | $ | 21.74 | ||||||||
Class Y Shares: | ||||||||||||||||
Net Assets | $ | 328,194,054 | $ | 36,541,662 | $ | 352,641,650 | $ | 1,758,346 | ||||||||
Shares of beneficial interest outstanding | 72,354,974 | 6,741,256 | 26,982,705 | 80,936 | ||||||||||||
Net asset value and redemption price per share | $ | 4.54 | $ | 5.42 | $ | 13.07 | $ | 21.73 | ||||||||
Class Z Shares: | ||||||||||||||||
Net Assets | N/A | N/A | $ | 75,747,868 | $ | 881,525 | ||||||||||
Shares of beneficial interest outstanding | N/A | N/A | 5,521,250 | 40,539 | ||||||||||||
Net asset value and redemption price per share | N/A | N/A | $ | 13.72 | $ | 21.75 |
(a) | Consolidated Statement of Assets and Liabilities |
See Notes to Financial Statements
29 |
VANECK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited)
Environmental Sustainability Fund | Global Resources Fund | International Investors Gold Fund (a) | VanEck Morningstar Wide Moat Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at value (1) | ||||||||||||||||
Unaffiliated issuers (2) | $ | 4,239,988 | $ | 789,588,170 | $ | 699,485,835 | $ | 18,760,952 | ||||||||
Affiliated issuers (3) | — | — | 17,614,758 | — | ||||||||||||
Short-term investments held as collateral for securities loaned (4) | 320,593 | 14,618,467 | 134,915 | — | ||||||||||||
Cash | — | — | 56,278 | 833 | ||||||||||||
Cash denominated in foreign currency, at value (5) | 1,464 | 44,580 | 14,381 | — | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | — | — | 95,293 | — | ||||||||||||
Shares of beneficial interest sold | — | 13,526,996 | 764,991 | 64,298 | ||||||||||||
Due from Adviser | 13,722 | — | — | 6,881 | ||||||||||||
Dividends and interest | 5,220 | 3,201,941 | 623,574 | 18,477 | ||||||||||||
Due from custodian | — | — | — | — | ||||||||||||
Prepaid expenses | 6 | 7,652 | 22,590 | 27 | ||||||||||||
Total assets | 4,580,993 | 820,987,806 | 718,812,615 | 18,851,468 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | — | 12,682,268 | — | — | ||||||||||||
Shares of beneficial interest redeemed | — | 665,337 | 380,915 | 54 | ||||||||||||
Collateral for securities loaned | 320,593 | 14,618,467 | 134,915 | — | ||||||||||||
Due to Adviser | — | 557,010 | 406,699 | — | ||||||||||||
Due to Distributor | 172 | 37,964 | 91,022 | — | ||||||||||||
Deferred Trustee fees | 1,283 | 487,453 | 496,524 | 8,001 | ||||||||||||
Accrued expenses | 25,599 | 997,920 | 544,347 | 56,391 | ||||||||||||
Total liabilities | 347,647 | 30,046,419 | 2,054,422 | 64,446 | ||||||||||||
NET ASSETS | $ | 4,233,346 | $ | 790,941,387 | $ | 716,758,193 | $ | 18,787,022 | ||||||||
Net Assets consist of: | ||||||||||||||||
Aggregate paid in capital | $ | 5,434,298 | $ | 1,612,175,411 | $ | 909,096,922 | $ | 16,677,495 | ||||||||
Total distributable earnings (loss) | (1,200,952) | (821,234,024) | (192,338,729) | 2,109,527 | ||||||||||||
NET ASSETS | $ | 4,233,346 | $ | 790,941,387 | $ | 716,758,193 | $ | 18,787,022 | ||||||||
(1) Value of securities on loan | $ | 520,870 | $ | 78,969,687 | $ | 9,296,987 | $ | — | ||||||||
(2) Cost of investments - Unaffiliated issuers | $ | 5,199,480 | $ | 635,458,654 | $ | 449,810,376 | $ | 16,941,406 | ||||||||
(3) Cost of investments - Affiliated issuers | $ | — | $ | — | $ | 25,658,328 | $ | — | ||||||||
(4) Cost of short-term investments held as collateral for securities loaned | $ | 320,593 | $ | 14,618,467 | $ | 134,915 | $ | — | ||||||||
(5) Cost of cash denominated in foreign currency | $ | 1,524 | $ | 44,888 | $ | 14,395 | $ | — |
See Notes to Financial Statements
30 |
VANECK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2023 (unaudited) (continued)
Environmental Sustainability Fund | Global Resources Fund | International Investors Gold Fund (a) | VanEck Morningstar Wide Moat Fund | |||||||||||||
Class A Shares: | ||||||||||||||||
Net Assets | $ | 839,830 | $ | 119,889,435 | $ | 257,133,608 | N/A | |||||||||
Shares of beneficial interest outstanding | 43,587 | 3,077,843 | 27,549,587 | N/A | ||||||||||||
Net asset value and redemption price per share | $ | 19.27 | $ | 38.95 | $ | 9.33 | N/A | |||||||||
Maximum offering price per share (Net asset value per share ÷ 94.25%) | $ | 20.44 | $ | 41.33 | $ | 9.90 | N/A | |||||||||
Class C Shares: | ||||||||||||||||
Net Assets | N/A | $ | 10,937,632 | $ | 35,028,432 | N/A | ||||||||||
Shares of beneficial interest outstanding | N/A | 333,861 | 4,586,961 | N/A | ||||||||||||
Net asset value and redemption price per share (Redemption may be subject to a contingent deferred sales charge within one year of ownership) | N/A | $ | 32.76 | $ | 7.64 | N/A | ||||||||||
Class I Shares: | ||||||||||||||||
Net Assets | $ | 1,820,324 | $ | 416,990,287 | $ | 158,741,077 | $ | 2,336,248 | ||||||||
Shares of beneficial interest outstanding | 94,200 | 10,161,174 | 12,259,369 | 73,144 | ||||||||||||
Net asset value and redemption price per share | $ | 19.32 | $ | 41.04 | $ | 12.95 | $ | 31.94 | ||||||||
Class Y Shares: | ||||||||||||||||
Net Assets | $ | 1,573,192 | $ | 243,124,033 | $ | 265,855,076 | N/A | |||||||||
Shares of beneficial interest outstanding | 81,501 | 6,109,262 | 27,494,507 | N/A | ||||||||||||
Net asset value and redemption price per share | $ | 19.30 | $ | 39.80 | $ | 9.67 | N/A | |||||||||
Class Z Shares: | ||||||||||||||||
Net Assets | N/A | N/A | N/A | $ | 16,450,774 | |||||||||||
Shares of beneficial interest outstanding | N/A | N/A | N/A | 522,744 | ||||||||||||
Net asset value and redemption price per share | N/A | N/A | N/A | $ | 31.47 |
(a) | Consolidated Statement of Assets and Liabilities |
See Notes to Financial Statements
31 |
VANECK FUNDS
For the Period Ended June 30, 2023 (unaudited)
CM Commodity Index Fund(a) | Emerging Markets Bond Fund | Emerging Markets Fund | Emerging Markets Leaders Fund | |||||||||||||
Income: | ||||||||||||||||
Dividends - unaffiliated issuers | $ | 662,044 | $ | 69,185 | $ | 11,599,417 | $ | 53,130 | ||||||||
Interest | 12,245,854 | 1,291,132 | — | — | ||||||||||||
Securities lending income | 174,226 | 1,518 | 81,858 | 296 | ||||||||||||
Foreign taxes withheld | — | (35,519) | (894,898) | (4,949) | ||||||||||||
Total income | 13,082,124 | 1,326,316 | 10,786,377 | 48,477 | ||||||||||||
Expenses: | ||||||||||||||||
Management fees | 1,838,711 | 143,567 | 3,462,650 | 19,752 | ||||||||||||
Administration fees | — | — | 1,154,216 | — | ||||||||||||
Distribution fees – Class A | 32,242 | 7,505 | 78,815 | 1,092 | ||||||||||||
Distribution fees – Class C | — | — | 54,925 | — | ||||||||||||
Transfer agent fees – Class A | 40,518 | 9,951 | 69,136 | 6,146 | ||||||||||||
Transfer agent fees – Class C | — | — | 17,058 | — | ||||||||||||
Transfer agent fees – Class I | 160,674 | 8,975 | 222,385 | 6,005 | ||||||||||||
Transfer agent fees – Class Y | 294,013 | 8,799 | 253,781 | 5,943 | ||||||||||||
Transfer agent fees – Class Z | — | 6,874 | 5,510 | |||||||||||||
Custodian fees | 13,268 | 14,345 | 225,360 | 11,755 | ||||||||||||
Professional fees | 50,324 | 43,880 | 43,112 | 37,549 | ||||||||||||
Registration fees – Class A | 11,235 | 7,633 | 15,145 | 4,122 | ||||||||||||
Registration fees – Class C | — | — | 7,777 | — | ||||||||||||
Registration fees – Class I | 11,481 | 7,918 | 8,529 | 4,122 | ||||||||||||
Registration fees – Class Y | 16,376 | 7,636 | 10,435 | 4,122 | ||||||||||||
Registration fees – Class Z | — | — | 7,913 | 4,118 | ||||||||||||
Reports to shareholders | 36,864 | 3,453 | 32,725 | 1,116 | ||||||||||||
Insurance | 21,549 | 3,906 | 44,243 | 3,829 | ||||||||||||
Trustees’ fees and expenses | 125,527 | 3,323 | 395,198 | 334 | ||||||||||||
Interest | — | 2,148 | 100,706 | 81 | ||||||||||||
Other | 6,883 | 3,638 | 8,119 | 738 | ||||||||||||
Total expenses | 2,659,665 | 276,677 | 6,219,102 | 116,334 | ||||||||||||
Waiver of management fees | (701,579) | (89,881) | (1,064,284) | (19,752) | ||||||||||||
Expenses assumed by the Adviser | — | (3,196) | — | (71,057) | ||||||||||||
Net expenses | 1,958,086 | 183,600 | 5,154,818 | 25,525 | ||||||||||||
Net investment income | 11,124,038 | 1,142,716 | 5,631,559 | 22,952 | ||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments - unaffiliated issuers (1) | — | (614,778) | (65,023,573) | (342,045) | ||||||||||||
Swap contracts | (38,801,925) | — | — | — | ||||||||||||
Forward foreign currency contracts | — | (5,725) | 43 | — | ||||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | — | (2,045) | (358,123) | 143 | ||||||||||||
Net realized loss | (38,801,925) | (622,548) | (65,381,653) | (341,902) | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments - unaffiliated issuers (2) | (80,429) | 1,522,386 | 99,623,253 | 591,395 | ||||||||||||
Investments - affiliated issuers | — | — | — | — | ||||||||||||
Swap contracts | (768,599) | — | — | — | ||||||||||||
Forward foreign currency contracts | — | (72) | — | — | ||||||||||||
Foreign currency translations and foreign denominated assets and liabilities | — | 20,964 | (367,508) | (5,962) | ||||||||||||
Net change in unrealized appreciation (depreciation) | (849,028) | 1,543,278 | 99,255,745 | 585,433 | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (28,526,915) | $ | 2,063,446 | $ | 39,505,651 | $ | 266,483 | ||||||||
(1) Net of foreign taxes | $ | — | $ | 1,594 | $ | 231,539 | $ | — | ||||||||
(2) Net of foreign taxes | $ | — | $ | (11,948) | $ | (573,490) | $ | (2,782) |
(a) | Consolidated Statement of Operations |
See Notes to Financial Statements
32 |
VANECK FUNDS
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2023 (unaudited)
Environmental Sustainability Fund | Global Resources Fund | International Investors Gold Fund(a) | VanEck Morningstar Wide Moat Fund | |||||||||||||
Income: | ||||||||||||||||
Dividends - unaffiliated issuers | $ | 45,590 | $ | 16,823,662 | $ | 5,825,012 | $ | 120,026 | ||||||||
Interest | — | 2,074 | 168 | — | ||||||||||||
Securities lending income | 15,153 | 886,429 | 40,305 | — | ||||||||||||
Foreign taxes withheld | (4,773) | (988,904) | (550,460) | — | ||||||||||||
Total income | 55,970 | 16,723,261 | 5,315,025 | 120,026 | ||||||||||||
Expenses: | ||||||||||||||||
Management fees | 15,360 | 4,518,214 | 2,625,795 | 37,987 | ||||||||||||
Administration fees | — | — | 915,187 | — | ||||||||||||
Distribution fees – Class A | 1,016 | 161,157 | 327,617 | — | ||||||||||||
Distribution fees – Class C | — | 61,075 | 185,925 | — | ||||||||||||
Transfer agent fees – Class A | 7,273 | 125,949 | 175,207 | — | ||||||||||||
Transfer agent fees – Class C | — | 17,699 | 30,688 | — | ||||||||||||
Transfer agent fees – Class I | 7,208 | 171,360 | 63,832 | 7,571 | ||||||||||||
Transfer agent fees – Class Y | 7,039 | 154,433 | 118,897 | — | ||||||||||||
Transfer agent fees – Class Z | — | — | — | 6,697 | ||||||||||||
Custodian fees | 10,292 | 18,804 | 19,687 | 8,250 | ||||||||||||
Professional fees | 36,894 | 42,484 | 39,570 | 38,969 | ||||||||||||
Registration fees – Class A | 8,279 | 9,144 | 14,461 | — | ||||||||||||
Registration fees – Class C | — | 8,790 | 7,337 | — | ||||||||||||
Registration fees – Class I | 8,279 | 8,302 | 10,731 | 8,075 | ||||||||||||
Registration fees – Class Y | 8,279 | 7,195 | 16,557 | — | ||||||||||||
Registration fees – Class Z | — | — | — | 7,956 | ||||||||||||
Reports to shareholders | 3,617 | 24,987 | 27,867 | 4,433 | ||||||||||||
Insurance | 3,817 | 21,991 | 21,886 | 3,918 | ||||||||||||
Trustees’ fees and expenses | 782 | 25,431 | 152,126 | 4,493 | ||||||||||||
Interest | — | 2,986 | 3,680 | 886 | ||||||||||||
Other | 1,297 | 12,354 | 7,700 | 1,057 | ||||||||||||
Total expenses | 119,432 | 5,392,355 | 4,764,750 | 130,292 | ||||||||||||
Waiver of management fees | (15,360) | (492,420) | (160,539) | (37,987) | ||||||||||||
Expenses assumed by the Adviser | (82,636) | — | — | (48,997) | ||||||||||||
Net expenses | 21,436 | 4,899,935 | 4,604,211 | 43,308 | ||||||||||||
Net investment income | 34,534 | 11,823,326 | 710,814 | 76,718 | ||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments - unaffiliated issuers | (50,471) | 36,514,837 | 7,158,690 | 774,504 | ||||||||||||
Investments - affiliated issuers | — | — | (545,774) | — | ||||||||||||
In-kind redemptions | — | 1,123,961 | — | — | ||||||||||||
Forward foreign currency contracts | — | — | (3,726) | — | ||||||||||||
Foreign currency transactions and foreign denominated assets and liabilities | 10 | 41,149 | (15,241) | — | ||||||||||||
Net realized gain (loss) | (50,461) | 37,679,947 | 6,593,949 | 774,504 | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments - unaffiliated issuers | 282,007 | (103,635,079) | 30,032,693 | 2,600,301 | ||||||||||||
Investments - affiliated issuers | — | — | (3,025,774) | — | ||||||||||||
Forward foreign currency contracts | — | — | — | — | ||||||||||||
Foreign currency translations and foreign denominated assets and liabilities | (258) | 729 | 1,306 | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | 281,749 | (103,634,350) | 27,008,225 | 2,600,301 | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 265,822 | $ | (54,131,077) | $ | 34,312,988 | $ | 3,451,523 |
(a) | Consolidated Statement of Operations |
See Notes to Financial Statements
33 |
VANECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
CM Commodity Index Fund (a) | Emerging Markets Bond Fund | ||||||||||||||
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Operations: | |||||||||||||||
Net investment income | $ | 11,124,038 | $ | 5,085,215 | $ | 1,142,716 | $ | 914,709 | |||||||
Net realized gain (loss) | (38,801,925) | 93,844,392 | (622,548) | (2,271,973) | |||||||||||
Net change in unrealized appreciation (depreciation) | (849,028) | (933,907) | 1,543,278 | 59,659 | |||||||||||
Net increase (decrease) in net assets resulting from operations | (28,526,915) | 97,995,700 | 2,063,446 | (1,297,605) | |||||||||||
Distributions to shareholders: | |||||||||||||||
Distributable earnings | |||||||||||||||
Class A | — | (4,828,828) | (182,581) | (184,430) | |||||||||||
Class I | — | (55,538,881) | (500,238) | (171,838) | |||||||||||
Class Y | — | (68,337,110) | (522,554) | (91,975) | |||||||||||
— | (128,704,819) | (1,205,373) | (448,243) | ||||||||||||
Return of capital | |||||||||||||||
Class A | — | — | — | (208,178) | |||||||||||
Class I | — | — | — | (154,015) | |||||||||||
Class Y | — | — | — | (101,846) | |||||||||||
— | — | — | (464,039) | ||||||||||||
Total distributions | — | (128,704,819) | (1,205,373) | (912,282) | |||||||||||
Share transactions: | |||||||||||||||
Proceeds from sale of shares | |||||||||||||||
Class A | 12,787,426 | 25,110,916 | 2,692,750 | 545,660 | |||||||||||
Class I | 37,840,496 | 99,368,090 | 25,600,509 | 192,609 | |||||||||||
Class Y | 75,316,757 | 237,710,663 | 34,791,130 | 297,140 | |||||||||||
125,944,679 | 362,189,669 | 63,084,389 | 1,035,409 | ||||||||||||
Reinvestment of distributions | |||||||||||||||
Class A | — | 4,065,494 | 143,954 | 308,832 | |||||||||||
Class I | — | 24,121,495 | 476,887 | 263,798 | |||||||||||
Class Y | — | 66,044,100 | 509,650 | 190,797 | |||||||||||
— | 94,231,089 | 1,130,491 | 763,427 | ||||||||||||
Cost of shares redeemed | |||||||||||||||
Class A | (7,044,250) | (36,999,214) | (325,612) | (1,068,136) | |||||||||||
Class I | (46,141,678) | (175,781,555) | (917,285) | (2,948,136) | |||||||||||
Class Y | (53,391,619) | (290,311,209) | (1,481,364) | (1,322,466) | |||||||||||
(106,577,547) | (503,091,978) | (2,724,261) | (5,338,738) | ||||||||||||
Increase (decrease) in net assets resulting from share transactions | 19,367,132 | (46,671,220) | 61,490,619 | (3,539,902) | |||||||||||
Total increase (decrease) in net assets | (9,159,783) | (77,380,339) | 62,348,692 | (5,749,789) | |||||||||||
Net Assets, beginning of period | 578,989,421 | 656,369,760 | 9,484,635 | 15,234,424 | |||||||||||
Net Assets, end of period | $ | 569,829,638 | $ | 578,989,421 | $ | 71,833,327 | $ | 9,484,635 |
(a) | Consolidated Statement of Changes in Net Assets |
See Notes to Financial Statements
34 |
VANECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Emerging Markets Fund | Emerging Markets Leaders Fund | |||||||||||||||
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | Six Months Ended June 30, 2023 | Period Ended December 31, 2022(a) | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 5,631,559 | $ | 14,927,751 | $ | 22,952 | $ | 31,357 | ||||||||
Net realized loss | (65,381,653) | (180,663,741) | (341,902) | (339,385) | ||||||||||||
Net change in unrealized appreciation (depreciation) | 99,255,745 | (386,053,063) | 585,433 | (684,741) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 39,505,651 | (551,789,053) | 266,483 | (992,769) | ||||||||||||
Distributions to shareholders: | ||||||||||||||||
Distributable earnings | ||||||||||||||||
Class A | — | (2,319,726) | — | (5,940) | ||||||||||||
Class C | — | (399,998) | — | — | ||||||||||||
Class I | — | (16,864,626) | — | (20,520) | ||||||||||||
Class Y | — | (17,221,674) | — | (19,072) | ||||||||||||
Class Z | — | (3,195,238) | — | (10,980) | ||||||||||||
Total distributions | — | (40,001,262) | — | (56,512) | ||||||||||||
Share transactions: | ||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||
Class A | 8,844,534 | 31,447,033 | 29 | 1,000,000 | ||||||||||||
Class C | 383,095 | 1,152,871 | — | — | ||||||||||||
Class I | 12,914,961 | 71,644,900 | 57 | 2,000,000 | ||||||||||||
Class Y | 54,595,163 | 257,934,890 | 57 | 2,000,000 | ||||||||||||
Class Z | 7,793,851 | 50,961,781 | 29 | 1,000,000 | ||||||||||||
84,531,604 | 413,141,475 | 172 | 6,000,000 | |||||||||||||
Reinvestment of distributions | ||||||||||||||||
Class A | — | 1,955,661 | — | 5,940 | ||||||||||||
Class C | — | 337,551 | — | — | ||||||||||||
Class I | — | 13,935,606 | — | 20,520 | ||||||||||||
Class Y | — | 12,566,128 | — | 19,072 | ||||||||||||
Class Z | — | 845,967 | — | 10,980 | ||||||||||||
— | 29,640,913 | — | 56,512 | |||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class A | (6,094,462) | (65,968,668) | — | — | ||||||||||||
Class C | (2,073,803) | (7,689,042) | — | — | ||||||||||||
Class I | (63,831,319) | (362,791,632) | — | — | ||||||||||||
Class Y | (106,525,186) | (670,947,332) | — | — | ||||||||||||
Class Z | (8,540,316) | (23,739,288) | — | — | ||||||||||||
(187,065,086) | (1,131,135,962) | — | — | |||||||||||||
Increase (decrease) in net assets resulting from share transactions | (102,533,482) | (688,353,574) | 172 | 6,056,512 | ||||||||||||
Total increase (decrease) in net assets | (63,027,831) | (1,280,143,889) | 266,655 | 5,007,231 | ||||||||||||
Net Assets, beginning of period | 922,112,481 | 2,202,256,370 | 5,007,231 | — | ||||||||||||
Net Assets, end of period | $ | 859,084,650 | $ | 922,112,481 | $ | 5,273,886 | $ | 5,007,231 |
(a) | For the period March 1, 2022 (commencement of operations) through December 31, 2022. |
See Notes to Financial Statements
35 |
VANECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Environmental Sustainability Fund | Global Resources Fund | |||||||||||||||
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 34,534 | $ | 17,425 | $ | 11,823,326 | $ | 23,344,178 | ||||||||
Net realized gain (loss) | (50,461) | (165,973) | 37,679,947 | 52,153,544 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 281,749 | (1,100,244) | (103,634,350) | (23,452,096) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 265,822 | (1,248,792) | (54,131,077) | 52,045,626 | ||||||||||||
Distributions to shareholders: | ||||||||||||||||
Distributable earnings | ||||||||||||||||
Class A | — | (10,771) | — | (3,442,432) | ||||||||||||
Class C | — | — | — | (290,916) | ||||||||||||
Class I | — | (28,426) | — | (14,127,324) | ||||||||||||
Class Y | — | (23,653) | — | (8,140,878) | ||||||||||||
Total distributions | — | (62,850) | — | (26,001,550) | ||||||||||||
Share transactions: | ||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||
Class A | 410 | 83,343 | 5,677,846 | 35,153,850 | ||||||||||||
Class C | — | — | 310,078 | 4,128,658 | ||||||||||||
Class I | 34,023 | 69,278 | 60,957,900 | 202,012,496 | ||||||||||||
Class Y | — | 22,397 | 35,650,293 | 163,313,291 | ||||||||||||
34,433 | 175,018 | 102,596,117 | 404,608,295 | |||||||||||||
Reinvestment of distributions | ||||||||||||||||
Class A | — | 10,771 | — | 3,013,538 | ||||||||||||
Class C | — | — | — | 250,771 | ||||||||||||
Class I | — | 28,425 | — | 8,275,196 | ||||||||||||
Class Y | — | 23,653 | — | 6,440,327 | ||||||||||||
— | 62,849 | — | 17,979,832 | |||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class A | — | (36,635) | (18,089,962) | (57,756,948) | ||||||||||||
Class C | — | — | (2,022,201) | (5,367,146) | ||||||||||||
Class I | (15,535) | (5,663) | (118,026,139) | (106,744,231) | ||||||||||||
Class Y | (7,262) | (8,755) | (78,467,371) | (103,339,965) | ||||||||||||
(22,797) | (51,053) | (216,605,673) | (273,208,290) | |||||||||||||
Increase (decrease) in net assets resulting from share transactions | 11,636 | 186,814 | (114,009,556) | 149,379,837 | ||||||||||||
Total increase (decrease) in net assets | 277,458 | (1,124,828) | (168,140,633) | 175,423,913 | ||||||||||||
Net Assets, beginning of period | 3,955,888 | 5,080,716 | 959,082,020 | 783,658,107 | ||||||||||||
Net Assets, end of period | $ | 4,233,346 | $ | 3,955,888 | $ | 790,941,387 | $ | 959,082,020 |
See Notes to Financial Statements
36 |
VANECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
International Investors Gold Fund (a) | VanEck Morningstar Wide Moat Fund | |||||||||||||||
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 710,814 | $ | 3,435,525 | $ | 76,718 | $ | 188,951 | ||||||||
Net realized gain (loss) | 6,593,949 | (4,715,400) | 774,504 | 661,455 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 27,008,225 | (126,323,652) | 2,600,301 | (3,344,544) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 34,312,988 | (127,603,527) | 3,451,523 | (2,494,138) | ||||||||||||
Distributions to shareholders: | ||||||||||||||||
Distributable earnings | ||||||||||||||||
Class I | — | — | — | (317,856) | ||||||||||||
Class Z | — | — | — | (1,392,066) | ||||||||||||
Total distributions | — | — | — | (1,709,922) | ||||||||||||
Share transactions: | ||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||
Class A | 33,167,694 | 49,069,654 | — | — | ||||||||||||
Class C | 1,798,515 | 5,527,125 | — | — | ||||||||||||
Class I | 12,097,820 | 65,767,172 | — | 3,076 | ||||||||||||
Class Y | 46,814,651 | 128,188,288 | — | — | ||||||||||||
Class Z | — | — | 978,919 | 1,704,261 | ||||||||||||
93,878,680 | 248,552,239 | 978,919 | 1,707,337 | |||||||||||||
Reinvestment of distributions | ||||||||||||||||
Class I | — | — | — | 317,856 | ||||||||||||
Class Z | — | — | — | 1,392,066 | ||||||||||||
— | — | — | 1,709,922 | |||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class A | (31,025,577) | (64,178,507) | — | — | ||||||||||||
Class C | (4,075,034) | (11,531,051) | — | — | ||||||||||||
Class I | (17,373,488) | (89,152,154) | — | (1,325,225) | ||||||||||||
Class Y | (34,754,050) | (140,237,775) | — | — | ||||||||||||
Class Z | — | — | (837,918) | (1,009,650) | ||||||||||||
(87,228,149) | (305,099,487) | (837,918) | (2,334,875) | |||||||||||||
Increase (decrease) in net assets resulting from share transactions | 6,650,531 | (56,547,248) | 141,001 | 1,082,384 | ||||||||||||
Total increase (decrease) in net assets | 40,963,519 | (184,150,775) | 3,592,524 | (3,121,676) | ||||||||||||
Net Assets, beginning of period | 675,794,674 | 859,945,449 | 15,194,498 | 18,316,174 | ||||||||||||
Net Assets, end of period | $ | 716,758,193 | $ | 675,794,674 | $ | 18,787,022 | $ | 15,194,498 |
(a) | Consolidated Statement of Changes in Net Assets |
See Notes to Financial Statements
37 |
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class A | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $4.61 | $5.05 | $4.66 | $4.61 | $4.29 | $4.87 | ||||||||||||||||||
Net investment income (loss) (a) | 0.08 | 0.02 | (0.05 | ) | (0.01 | ) | 0.06 | 0.04 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.31 | ) | 0.74 | 1.57 | 0.06 | (b) | 0.30 | (0.60 | ) | |||||||||||||||
Total from investment operations | (0.23 | ) | 0.76 | 1.52 | 0.05 | 0.36 | (0.56 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.20 | ) | (1.13 | ) | — | (c) | (0.04 | ) | (0.02 | ) | |||||||||||||
Net asset value, end of period | $4.38 | $4.61 | $5.05 | $4.66 | $4.61 | $4.29 | ||||||||||||||||||
Total return (d) | (4.99)% | (e) | 15.29 | % | 32.96 | % | 1.11 | % | 8.37 | % | (11.42 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.39% | (f) | 1.36 | % | 1.38 | % | 1.41 | % | 1.43 | % | 1.39 | % | ||||||||||||
Net expenses | 0.95% | (f) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||
Net investment income (loss) | 3.71% | (f) | 0.39 | % | (0.91 | )% | (0.28 | )% | 1.24 | % | 0.88 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $27 | $22 | $31 | $22 | $27 | $30 | ||||||||||||||||||
Portfolio turnover rate | —% | (e) | — | % | — | % | — | % | — | % | — | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(c) | Amount represents less than $0.005 per share. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Annualized |
See Notes to Financial Statements
38 |
CM COMMODITY INDEX FUND
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class I | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $4.79 | $5.20 | $4.78 | $4.71 | $ | 4.39 | $4.98 | |||||||||||||||||
Net investment income (loss) (a) | 0.09 | 0.04 | (0.04 | ) | — | 0.07 | 0.06 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.32 | ) | 0.77 | 1.61 | 0.07 | (b) | 0.30 | (0.61 | ) | |||||||||||||||
Total from investment operations | (0.23 | ) | 0.81 | 1.57 | 0.07 | 0.37 | (0.55 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.22 | ) | (1.15 | ) | — | (c) | (0.05 | ) | (0.04 | ) | |||||||||||||
Net asset value, end of period | $4.56 | $4.79 | $5.20 | $4.78 | $4.71 | $4.39 | ||||||||||||||||||
Total return (d) | (4.80)% | (e) | 15.87 | % | 33.07 | % | 1.51 | % | 8.55 | % | (11.13 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.90% | (f) | 0.92 | % | 0.90 | % | 0.93 | % | 0.97 | % | 0.90 | % | ||||||||||||
Net expenses | 0.65% | (f) | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||||
Net investment income (loss) | 3.97% | (f) | 0.72 | % | (0.61 | )% | (0.10 | )% | 1.50 | % | 1.19 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $215 | $234 | $295 | $193 | $195 | $214 | ||||||||||||||||||
Portfolio turnover rate | —% | (e) | — | % | — | % | — | % | — | % | — | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(c) | Amount represents less than $0.005 per share. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Annualized |
See Notes to Financial Statements
39 |
CM COMMODITY INDEX FUND
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Y | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $4.77 | $5.18 | $4.76 | $4.70 | $4.37 | $4.96 | ||||||||||||||||||
Net investment income (loss) (a) | 0.09 | 0.04 | (0.04 | ) | — | 0.07 | 0.06 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.32 | ) | 0.77 | 1.61 | 0.06 | (b) | 0.31 | (0.62 | ) | |||||||||||||||
Total from investment operations | (0.23 | ) | 0.81 | 1.57 | 0.06 | 0.38 | (0.56 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.22 | ) | (1.15 | ) | — | (c) | (0.05 | ) | (0.03 | ) | |||||||||||||
Net asset value, end of period | $4.54 | $4.77 | $5.18 | $4.76 | $4.70 | $4.37 | ||||||||||||||||||
Total return (d) | (4.82)% | (e) | 15.87 | % | 33.14 | % | 1.30 | % | 8.73 | % | (11.23 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 0.93% | (f) | 1.00 | % | 0.98 | % | 1.03 | % | 1.04 | % | 1.12 | % | ||||||||||||
Net expenses | 0.70% | (f) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||||
Net investment income (loss) | 3.93% | (f) | 0.70 | % | (0.64 | )% | — | % | 1.53 | % | 1.14 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $328 | $323 | $330 | $209 | $247 | $219 | ||||||||||||||||||
Portfolio turnover rate | —% | (e) | — | % | — | % | — | % | — | % | — | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | The amount shown does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchase of shares in relation to fluctuating market values of the investments of the Fund. |
(c) | Amount represents less than $0.005 per share. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Annualized |
See Notes to Financial Statements
40 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class A | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $5.21 | $6.07 | $6.67 | $6.44 | $6.15 | $7.00 | ||||||||||||||||||
Net investment income (a) | 0.17 | 0.39 | 0.31 | 0.39 | 0.47 | 0.38 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.14 | (0.87 | ) | (0.60 | ) | 0.26 | 0.28 | (0.81 | ) | |||||||||||||||
Total from investment operations | 0.31 | (0.48 | ) | (0.29 | ) | 0.65 | 0.75 | (0.43 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.16 | ) | (0.19 | ) | (0.23 | ) | (0.31 | ) | (0.40 | ) | — | |||||||||||||
Return of capital | — | (0.19 | ) | (0.08 | ) | (0.11 | ) | (0.06 | ) | (0.42 | ) | |||||||||||||
Total distributions | (0.16 | ) | (0.38 | ) | (0.31 | ) | (0.42 | ) | (0.46 | ) | (0.42 | ) | ||||||||||||
Net asset value, end of period | $5.36 | $5.21 | $6.07 | $6.67 | $6.44 | $6.15 | ||||||||||||||||||
Total return (b) | 5.93% | (c) | (7.73 | )% | (4.43 | )% | 11.24 | % | 12.61 | % | (6.39 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 2.17% | (d) | 2.55 | % | 2.33 | % | 2.30 | % | 2.69 | % | 2.05 | % | ||||||||||||
Net expenses | 1.27% | (d) | 1.27 | % | 1.28 | % | 1.25 | % | 1.26 | % | 1.26 | % | ||||||||||||
Net expenses excluding interest | 1.24% | (d) | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||||
Net investment income | 6.31% | (d) | 7.32 | % | 4.81 | % | 6.40 | % | 7.37 | % | 5.78 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $8 | $5 | $6 | $7 | $5 | $5 | ||||||||||||||||||
Portfolio turnover rate | 113% | (c) | 322 | % | 218 | % | 253 | % | 302 | % | 269 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
See Notes to Financial Statements
41 |
EMERGING MARKETS BOND FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class I | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $5.26 | $6.15 | $6.77 | $6.53 | $6.25 | $7.13 | ||||||||||||||||||
Net investment income (a) | 0.17 | 0.42 | 0.33 | 0.45 | 0.53 | 0.40 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.14 | (0.88 | ) | (0.61 | ) | 0.23 | 0.27 | (0.83 | ) | |||||||||||||||
Total from investment operations | 0.31 | (0.46 | ) | (0.28 | ) | 0.68 | 0.80 | (0.43 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.16 | ) | (0.21 | ) | (0.25 | ) | (0.32 | ) | (0.45 | ) | — | |||||||||||||
Return of capital | — | (0.22 | ) | (0.09 | ) | (0.12 | ) | (0.07 | ) | (0.45 | ) | |||||||||||||
Total distributions | (0.16 | ) | (0.43 | ) | (0.34 | ) | (0.44 | ) | (0.52 | ) | (0.45 | ) | ||||||||||||
Net asset value, end of period | $5.41 | $5.26 | $6.15 | $6.77 | $6.53 | $6.25 | ||||||||||||||||||
Total return (b) | 6.01% | (c) | (7.21 | )% | (4.30 | )% | 11.60 | % | 13.09 | % | (6.21 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.47% | (d) | 2.51 | % | 1.74 | % | 1.73 | % | 2.18 | % | 1.33 | % | ||||||||||||
Net expenses | 0.94% | (d) | 0.97 | % | 0.96 | % | 0.95 | % | 0.96 | % | 0.96 | % | ||||||||||||
Net expenses excluding interest | 0.93% | (d) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||
Net investment income | 6.42% | (d) | 7.69 | % | 5.01 | % | 7.31 | % | 8.27 | % | 5.91 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $27 | $2 | $6 | $16 | $18 | $10 | ||||||||||||||||||
Portfolio turnover rate | 113% | (c) | 322 | % | 218 | % | 253 | % | 302 | % | 269 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
See Notes to Financial Statements
42 |
EMERGING MARKETS BOND FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Y | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $5.26 | $6.12 | $6.73 | $6.49 | $6.23 | $7.10 | ||||||||||||||||||
Net investment income (a) | 0.17 | 0.40 | 0.32 | 0.46 | 0.47 | 0.39 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.15 | (0.87 | ) | (0.60 | ) | 0.22 | 0.32 | (0.82 | ) | |||||||||||||||
Total from investment operations | 0.32 | (0.47 | ) | (0.28 | ) | 0.68 | 0.79 | (0.43 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.16 | ) | (0.19 | ) | (0.25 | ) | (0.32 | ) | (0.46 | ) | — | |||||||||||||
Return of capital | — | (0.20 | ) | (0.08 | ) | (0.12 | ) | (0.07 | ) | (0.44 | ) | |||||||||||||
Total distributions | (0.16 | ) | (0.39 | ) | (0.33 | ) | (0.44 | ) | (0.53 | ) | (0.44 | ) | ||||||||||||
Net asset value, end of period | $5.42 | $5.26 | $6.12 | $6.73 | $6.49 | $6.23 | ||||||||||||||||||
Total return (b) | 6.13% | (c) | (7.44 | )% | (4.33 | )% | 11.59 | % | 13.05 | % | (6.30 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.37% | (d) | 2.91 | % | 2.51 | % | 2.78 | % | 2.60 | % | 1.65 | % | ||||||||||||
Net expenses | 1.00% | (d) | 1.02 | % | 1.03 | % | 1.00 | % | 1.02 | % | 1.01 | % | ||||||||||||
Net expenses excluding interest | 0.99% | (d) | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||||
Net investment income | 6.34% | (d) | 7.51 | % | 4.99 | % | 7.42 | % | 7.34 | % | 5.83 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $37 | $2 | $3 | $3 | $3 | $5 | ||||||||||||||||||
Portfolio turnover rate | 113% | (c) | 322 | % | 218 | % | 253 | % | 302 | % | 269 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
See Notes to Financial Statements
43 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class A | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $12.25 | $17.02 | $20.96 | $18.03 | $14.14 | $18.44 | ||||||||||||||||||
Net investment income (loss) (a) | 0.05 | 0.09 | (0.04 | ) | (0.08 | ) | 0.31 | 0.03 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.47 | (4.39 | ) | (2.52 | ) | 3.04 | 3.86 | (4.33 | ) | |||||||||||||||
Total from investment operations | 0.52 | (4.30 | ) | (2.56 | ) | 2.96 | 4.17 | (4.30 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.47 | ) | — | (0.03 | ) | (0.28 | ) | — | (b) | ||||||||||||||
Net realized capital gains | — | — | (1.38 | ) | — | — | — | |||||||||||||||||
Total distributions | — | (0.47 | ) | (1.38 | ) | (0.03 | ) | (0.28 | ) | — | ||||||||||||||
Net asset value, end of period | $12.77 | $12.25 | $17.02 | $20.96 | $18.03 | $14.14 | ||||||||||||||||||
Total return (c) | 4.24% | (d) | (25.23 | )% | (12.15 | )% | 16.43 | % | 29.52 | % | (23.30 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.70% | (e) | 1.54 | % | 1.45 | % | 1.47 | % | 1.53 | % | 1.50 | % | ||||||||||||
Net expenses | 1.62% | (e) | 1.54 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
Net expenses excluding interest | 1.60% | (e) | 1.53 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
Net investment income (loss) | 0.80% | (e) | 0.65 | % | (0.19 | )% | (0.47 | )% | 1.86 | % | 0.17 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $66 | $60 | $130 | $157 | $138 | $118 | ||||||||||||||||||
Portfolio turnover rate | 6% | (d) | 11 | % | 38 | % | 30 | % | 24 | % | 39 | % |
(a) | Calculated based upon average shares outstanding |
(b) | Amount represents less than $0.005 per share. |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
See Notes to Financial Statements
44 |
EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class C | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.54 | $14.70 | $18.47 | $16.02 | $12.60 | $16.55 | ||||||||||||||||||
Net investment income (loss) (a) | (0.01 | ) | (0.03 | ) | (0.18 | ) | (0.19 | ) | 0.16 | (0.09 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.40 | (3.77 | ) | (2.21 | ) | 2.67 | 3.43 | (3.86 | ) | |||||||||||||||
Total from investment operations | 0.39 | (3.80 | ) | (2.39 | ) | 2.48 | 3.59 | (3.95 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.36 | ) | — | (0.03 | ) | (0.17 | ) | — | |||||||||||||||
Net realized capital gains | — | — | (1.38 | ) | — | — | — | |||||||||||||||||
Total distributions | — | (0.36 | ) | (1.38 | ) | (0.03 | ) | (0.17 | ) | — | ||||||||||||||
Net asset value, end of period | $10.93 | $10.54 | $14.70 | $18.47 | $16.02 | $12.60 | ||||||||||||||||||
Total return (b) | 3.70% | (c) | (25.82 | )% | (12.87 | )% | 15.49 | % | 28.51 | % | (23.87 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 2.64% | (d) | 2.43 | % | 2.25 | % | 2.27 | % | 2.32 | % | 2.27 | % | ||||||||||||
Net expenses | 2.52% | (d) | 2.43 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
Net expenses excluding interest | 2.50% | (d) | 2.42 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
Net investment income (loss) | (0.20)% | (d) | (0.25 | )% | (0.98 | )% | (1.25 | )% | 1.12 | % | (0.57 | )% | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $10 | $11 | $24 | $33 | $37 | $30 | ||||||||||||||||||
Portfolio turnover rate | 6% | (c) | 11 | % | 38 | % | 30 | % | 24 | % | 39 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
See Notes to Financial Statements
45 |
EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class I | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $13.08 | $18.16 | $22.21 | $19.01 | $14.90 | $19.46 | ||||||||||||||||||
Net investment income (a) | 0.09 | 0.17 | 0.06 | — | (b) | 0.43 | 0.12 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.51 | (4.68 | ) | (2.69 | ) | 3.23 | 4.05 | (4.58 | ) | |||||||||||||||
Total from investment operations | 0.60 | (4.51 | ) | (2.63 | ) | 3.23 | 4.48 | (4.46 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.57 | ) | (0.04 | ) | (0.03 | ) | (0.37 | ) | (0.10 | ) | |||||||||||||
Net realized capital gains | — | — | (1.38 | ) | — | — | — | |||||||||||||||||
Total distributions | — | (0.57 | ) | (1.42 | ) | (0.03 | ) | (0.37 | ) | (0.10 | ) | |||||||||||||
Net asset value, end of period | $13.68 | $13.08 | $18.16 | $22.21 | $19.01 | $14.90 | ||||||||||||||||||
Total return (c) | 4.59% | (d) | (24.81 | )% | (11.76 | )% | 17.00 | % | 30.11 | % | (22.88 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.31% | (e) | 1.19 | % | 1.14 | % | 1.12 | % | 1.16 | % | 1.14 | % | ||||||||||||
Net expenses | 1.02% | (e) | 1.01 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||||
Net expenses excluding interest | 1.00% | (e) | 1.00 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
Net investment income (loss) | 1.32% | (e) | 1.17 | % | 0.28 | % | (0.02 | )% | 2.46 | % | 0.68 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $355 | $387 | $900 | $1,158 | $804 | $575 | ||||||||||||||||||
Portfolio turnover rate | 6% | (d) | 11 | % | 38 | % | 30 | % | 24 | % | 39 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Amount represents less than $0.005 per share. |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
See Notes to Financial Statements
46 |
EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Y | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $12.51 | $17.39 | $21.33 | $18.28 | $14.33 | $18.73 | ||||||||||||||||||
Net investment income (loss) (a) | 0.08 | 0.15 | 0.03 | (0.02 | ) | 0.39 | 0.10 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.48 | (4.48 | ) | (2.57 | ) | 3.10 | 3.92 | (4.41 | ) | |||||||||||||||
Total from investment operations | 0.56 | (4.33 | ) | (2.54 | ) | 3.08 | 4.31 | (4.31 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.55 | ) | (0.02 | ) | (0.03 | ) | (0.36 | ) | (0.09 | ) | |||||||||||||
Net realized capital gains | — | — | (1.38 | ) | — | — | — | |||||||||||||||||
Total distributions | — | (0.55 | ) | (1.40 | ) | (0.03 | ) | (0.36 | ) | (0.09 | ) | |||||||||||||
Net asset value, end of period | $13.07 | $12.51 | $17.39 | $21.33 | $18.28 | $14.33 | ||||||||||||||||||
Total return (b) | 4.48% | (c) | (24.87 | )% | (11.84 | )% | 16.86 | % | 30.07 | % | (23.03 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.31% | (d) | 1.21 | % | 1.13 | % | 1.14 | % | 1.18 | % | 1.16 | % | ||||||||||||
Net expenses | 1.12% | (d) | 1.11 | % | 1.10 | % | 1.10 | % | 1.10 | % | 1.10 | % | ||||||||||||
Net expenses excluding interest | 1.10% | (d) | 1.10 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
Net investment income (loss) | 1.19% | (d) | 1.10 | % | 0.16 | % | (0.10 | )% | 2.32 | % | 0.59 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $353 | $390 | $1,086 | $1,350 | $1,287 | $907 | ||||||||||||||||||
Portfolio turnover rate | 6% | (c) | 11 | % | 38 | % | 30 | % | 24 | % | 39 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
See Notes to Financial Statements
47 |
EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Z | |||||||||||||||||||||
Six Months | Year Ended December 31, | Period Ended December 31, 2019(a) | |||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Net asset value, beginning of period | $ | 13.12 | $ | 18.19 | $ | 22.25 | $ | 19.03 | $ | 18.08 | |||||||||||
Net investment income (loss) (b) | 0.10 | 0.17 | 0.07 | (0.02 | ) | (0.02 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.50 | (4.67 | ) | (2.69 | ) | 3.27 | 1.34 | ||||||||||||||
Total from investment operations | 0.60 | (4.50 | ) | (2.62 | ) | 3.25 | 1.32 | ||||||||||||||
Distributions from: | |||||||||||||||||||||
Net investment income | — | (0.57 | ) | (0.06 | ) | (0.03 | ) | (0.37 | ) | ||||||||||||
Net realized capital gains | — | — | (1.38 | ) | — | — | |||||||||||||||
Total distributions | — | (0.57 | ) | (1.44 | ) | (0.03 | ) | (0.37 | ) | ||||||||||||
Net asset value, end of period | $ | 13.72 | $ | 13.12 | $ | 18.19 | $ | 22.25 | $ | 19.03 | |||||||||||
Total return (c) | 4.57% | (d) | (24.69 | )% | (11.71 | )% | 17.09 | % | 7.29% | (d) | |||||||||||
Ratios to average net assets | |||||||||||||||||||||
Gross expenses | 1.22% | (e) | 1.17 | % | 1.08 | % | 1.13 | % | 1.31% | (e) | |||||||||||
Net expenses | 0.92% | (e) | 0.91 | % | 0.90 | % | 0.90 | % | 0.90% | (e) | |||||||||||
Net expenses excluding interest | 0.90% | (e) | 0.90 | % | N/A | N/A | N/A | ||||||||||||||
Net investment income (loss) | 1.47% | (e) | 1.26 | % | 0.33 | % | (0.12 | )% | (0.27)% | (e) | |||||||||||
Supplemental data | |||||||||||||||||||||
Net assets, end of period (in millions) | $76 | $73 | $63 | $74 | $6 | ||||||||||||||||
Portfolio turnover rate | 6% | (d) | 11 | % | 38 | % | 30 | % | 24% | (d) | |||||||||||
(a) | For the period September 16, 2019 (commencement of operations) through December 31, 2019. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
See Notes to Financial Statements
48 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class A | |||||||||
Six Months Ended June 30, 2023 | Period Ended December 31, 2022(a) | ||||||||
(unaudited) | |||||||||
Net asset value, beginning of period | $ | 20.63 | $ | 25.00 | |||||
Net investment income (b) | 0.04 | 0.04 | |||||||
Net realized and unrealized gain (loss) on investments | 1.01 | (4.26 | ) | ||||||
Total from investment operations | 1.05 | (4.22 | ) | ||||||
Distributions from: | |||||||||
Net investment income | — | (0.15 | ) | ||||||
Net asset value, end of period | $ | 21.68 | $ | 20.63 | |||||
Total return (c) | 5.09% | (d) | (16.88)% | (d) | |||||
Ratios to average net assets | |||||||||
Gross expenses | 5.46% | (e) | 6.18% | (e) | |||||
Net expenses | 1.45% | (e) | 1.48% | (e) | |||||
Net expenses excluding interest | 1.45% | (e) | 1.45% | (e) | |||||
Net investment income | 0.39% | (e) | 0.25% | (e) | |||||
Supplemental data | |||||||||
Net assets, end of period (in millions) | $1 | $1 | |||||||
Portfolio turnover rate | 14% | (d) | 19% | (d) | |||||
(a) | For the period March 1, 2022 (commencement of operations) through December 31, 2022. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
See Notes to Financial Statements
49 |
EMERGING MARKETS LEADERS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class I | |||||||||
Six Months Ended June 30, 2023 | Period Ended December 31, 2022(a) | ||||||||
(unaudited) | |||||||||
Net asset value, beginning of period | $ | 20.62 | $ | 25.00 | |||||
Net investment income (b) | 0.11 | 0.15 | |||||||
Net realized and unrealized gain (loss) on investments | 1.01 | (4.27 | ) | ||||||
Total from investment operations | 1.12 | (4.12 | ) | ||||||
Distributions from: | |||||||||
Net investment income | — | (0.26 | ) | ||||||
Net asset value, end of period | $ | 21.74 | $ | 20.62 | |||||
Total return (c) | 5.43% | (d) | (16.48)% | (d) | |||||
Ratios to average net assets | |||||||||
Gross expenses | 4.01% | (e) | 4.55% | (e) | |||||
Net expenses | 0.85% | (e) | 0.88% | (e) | |||||
Net expenses excluding interest | 0.85% | (e) | 0.85% | (e) | |||||
Net investment income | 0.99% | (e) | 0.85% | (e) | |||||
Supplemental data | |||||||||
Net assets, end of period (in millions) | $2 | $2 | |||||||
Portfolio turnover rate | 14% | (d) | 19% | (d) | |||||
(a) | For the period March 1, 2022 (commencement of operations) through December 31, 2022. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
See Notes to Financial Statements
50 |
EMERGING MARKETS LEADERS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Y | |||||||||
Six Months Ended June 30, 2023 | Period Ended December 31, 2022(a) | ||||||||
(unaudited) | |||||||||
Net asset value, beginning of period | $ | 20.63 | $ | 25.00 | |||||
Net investment income (b) | 0.10 | 0.13 | |||||||
Net realized and unrealized gain (loss) on investments | 1.00 | (4.26 | ) | ||||||
Total from investment operations | 1.10 | (4.13 | ) | ||||||
Distributions from: | |||||||||
Net investment income | — | (0.24 | ) | ||||||
Net asset value, end of period | $ | 21.73 | $ | 20.63 | |||||
Total return (c) | 5.33% | (d) | (16.51)% | (d) | |||||
Ratios to average net assets | |||||||||
Gross expenses | 4.00% | (e) | 4.55% | (e) | |||||
Net expenses | 0.95% | (e) | 0.98% | (e) | |||||
Net expenses excluding interest | 0.95% | (e) | 0.95% | (e) | |||||
Net investment income | 0.89% | (e) | 0.75% | (e) | |||||
Supplemental data | |||||||||
Net assets, end of period (in millions) | $2 | $2 | |||||||
Portfolio turnover rate | 14% | (d) | 19% | (d) | |||||
(a) | For the period March 1, 2022 (commencement of operations) through December 31, 2022. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
See Notes to Financial Statements
51 |
EMERGING MARKETS LEADERS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Z | |||||||||
Six Months Ended June 30, 2023 | Period Ended December 31, 2022(a) | ||||||||
(unaudited) | |||||||||
Net asset value, beginning of period | $ | 20.62 | $ | 25.00 | |||||
Net investment income (b) | 0.12 | 0.17 | |||||||
Net realized and unrealized gain (loss) on investments | 1.01 | (4.28 | ) | ||||||
Total from investment operations | 1.13 | (4.11 | ) | ||||||
Distributions from: | |||||||||
Net investment income | — | (0.27 | ) | ||||||
Net asset value, end of period | $ | 21.75 | $ | 20.62 | |||||
Total return (c) | 5.48% | (d) | (16.41)% | (d) | |||||
Ratios to average net assets | |||||||||
Gross expenses | 5.04% | (e) | 5.92% | (e) | |||||
Net expenses | 0.75% | (e) | 0.78% | (e) | |||||
Net expenses excluding interest | 0.75% | (e) | 0.75% | (e) | |||||
Net investment income | 1.09% | (e) | 0.95% | (e) | |||||
Supplemental data | |||||||||
Net assets, end of period (in millions) | $1 | $1 | |||||||
Portfolio turnover rate | 14% | (d) | 19% | (d) | |||||
(a) | For the period March 1, 2022 (commencement of operations) through December 31, 2022. |
(b) | Calculated based upon average shares outstanding |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
See Notes to Financial Statements
52 |
ENVIRONMENTAL SUSTAINABILITY FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class A | |||||||||||||
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended December 31, 2021(a) (a) | |||||||||||
(unaudited) | |||||||||||||
Net asset value, beginning of period | $ | 18.08 | $ | 24.24 | $ | 25.00 | |||||||
Net investment income (loss) (b) | 0.14 | 0.04 | (0.09 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 1.05 | (5.95 | ) | (0.67 | ) | ||||||||
Total from investment operations | 1.19 | (5.91 | ) | (0.76 | ) | ||||||||
Distributions from: | |||||||||||||
Net investment income | — | (0.25 | ) | — | |||||||||
Net realized capital gains | — | — | (c) | — | |||||||||
Total distributions | — | (0.25 | ) | — | |||||||||
Net asset value, end of period | $ | 19.27 | $ | 18.08 | $ | 24.24 | |||||||
Total return (d) | 6.58% | (e) | (24.42 | )% | (3.04)% | (e) | |||||||
Ratios to average net assets | |||||||||||||
Gross expenses | 7.60% | (f) | 5.79 | % | 6.68% | (f) | |||||||
Net expenses | 1.25% | (f) | 1.25 | % | 1.26% | (f) | |||||||
Net expenses excluding interest | 1.25% | (f) | 1.25 | % | 1.25% | (f) | |||||||
Net investment income (loss) | 1.48% | (f) | 0.20 | % | (0.76)% | (f) | |||||||
Supplemental data | |||||||||||||
Net assets, end of period (in millions) | $1 | $1 | $1 | ||||||||||
Portfolio turnover rate | 7% | (e) | 14 | % | —% | (e) | |||||||
(a) | For the period July 14, 2021 (commencement of operations) through December 31, 2021. |
(b) | Calculated based upon average shares outstanding |
(c) | Amount represents less than $0.005 per share. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Annualized |
See Notes to Financial Statements
53 |
ENVIRONMENTAL SUSTAINABILITY FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class I | |||||||||||||
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended December 31, 2021(a) | |||||||||||
(unaudited) | |||||||||||||
Net asset value, beginning of period | $ | 18.10 | $ | 24.28 | $ | 25.00 | |||||||
Net investment income (loss) (b) | 0.17 | 0.10 | (0.05 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 1.05 | (5.97 | ) | (0.67 | ) | ||||||||
Total from investment operations | 1.22 | (5.87 | ) | (0.72 | ) | ||||||||
Distributions from: | |||||||||||||
Net investment income | — | (0.31 | ) | — | |||||||||
Net realized capital gains | — | — | (c) | — | |||||||||
Total distributions | — | (0.31 | ) | — | |||||||||
Net asset value, end of period | $ | 19.32 | $ | 18.10 | $ | 24.28 | |||||||
Total return (d) | 6.74% | (e) | (24.23 | )% | (2.88)% | (e) | |||||||
Ratios to average net assets | |||||||||||||
Gross expenses | 5.28% | (f) | 4.29 | % | 5.45% | (f) | |||||||
Net expenses | 0.95% | (f) | 0.95 | % | 0.96% | (f) | |||||||
Net expenses excluding interest | 0.95% | (f) | 0.95 | % | 0.95% | (f) | |||||||
Net investment income (loss) | 1.79% | (f) | 0.50 | % | (0.46)% | (f) | |||||||
Supplemental data | |||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $2 | ||||||||||
Portfolio turnover rate | 7% | (e) | 14 | % | —% | (e) | |||||||
(a) | For the period July 14, 2021 (commencement of operations) through December 31, 2021. |
(b) | Calculated based upon average shares outstanding |
(c) | Amount represents less than $0.005 per share. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Annualized |
See Notes to Financial Statements
54 |
ENVIRONMENTAL SUSTAINABILITY FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Y | |||||||||||||
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended December 31, 2021(a) | |||||||||||
(unaudited) | |||||||||||||
Net asset value, beginning of period | $ | 18.09 | $ | 24.27 | $ | 25.00 | |||||||
Net investment income (loss) (b) | 0.16 | 0.08 | (0.07 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 1.05 | (5.97 | ) | (0.66 | ) | ||||||||
Total from investment operations | 1.21 | (5.89 | ) | (0.73 | ) | ||||||||
Distributions from: | |||||||||||||
Net investment income | — | (0.29 | ) | — | |||||||||
Net realized capital gains | — | — | (c) | — | |||||||||
Total distributions | — | (0.29 | ) | — | |||||||||
Net asset value, end of period | $ | 19.30 | $ | 18.09 | $ | 24.27 | |||||||
Total return (d) | 6.69% | (e) | (24.30 | )% | (2.92)% | (e) | |||||||
Ratios to average net assets | |||||||||||||
Gross expenses | 5.53% | (f) | 4.42 | % | 5.45% | (f) | |||||||
Net expenses | 1.05% | (f) | 1.05 | % | 1.06% | (f) | |||||||
Net expenses excluding interest | 1.05% | (f) | 1.05 | % | 1.05% | (f) | |||||||
Net investment income (loss) | 1.68% | (f) | 0.40 | % | (0.56)% | (f) | |||||||
Supplemental data | |||||||||||||
Net assets, end of period (in millions) | $2 | $1 | $2 | ||||||||||
Portfolio turnover rate | 7% | (e) | 14 | % | —% | (e) | |||||||
(a) | For the period July 14, 2021 (commencement of operations) through December 31, 2021. |
(b) | Calculated based upon average shares outstanding |
(c) | Amount represents less than $0.005 per share. |
(d) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(e) | Not Annualized |
(f) | Annualized |
See Notes to Financial Statements
55 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class A | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $41.22 | $ | 39.21 | $ | 33.51 | $ | 28.39 | $ | 25.66 | $ | 36.32 | |||||||||||||
Net investment income (loss) (a) | 0.45 | 0.89 | 0.50 | 0.13 | 0.17 | (0.05 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.72 | ) | 2.16 | 5.73 | 5.17 | 2.81 | (10.61 | ) | ||||||||||||||||
Total from investment operations | (2.27 | ) | 3.05 | 6.23 | 5.30 | 2.98 | (10.66 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.04 | ) | (0.53 | ) | (0.18 | ) | (0.25 | ) | — | ||||||||||||||
Net asset value, end of period | $ | 38.95 | $ | 41.22 | $ | 39.21 | $ | 33.51 | $ | 28.39 | $ | 25.66 | ||||||||||||
Total return (b) | (5.51)% | (c) | 7.74 | % | 18.61 | % | 18.68 | % | 11.64 | % | (29.35 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.49% | (d) | 1.47 | % | 1.48 | % | 1.62 | % | 1.60 | % | 1.59 | % | ||||||||||||
Net expenses | 1.38% | (d) | 1.38 | % | 1.38 | % | 1.38 | % | 1.38 | % | 1.38 | % | ||||||||||||
Net investment income (loss) | 2.29% | (d) | 2.08 | % | 1.29 | % | 0.53 | % | 0.63 | % | (0.15 | )% | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $120 | $140 | $152 | $106 | $118 | $194 | ||||||||||||||||||
Portfolio turnover rate | 21% | (c)(e) | 34 | % | 28 | % | 37 | % | 33 | % | 16 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
56 |
GLOBAL RESOURCES FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class C | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 34.81 | $ | 33.28 | $ | 28.57 | $ | 24.27 | $ | 21.93 | $ | 31.28 | ||||||||||||
Net investment income (loss) (a) | 0.25 | 0.46 | 0.15 | (0.06 | ) | (0.05 | ) | (0.29 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.30 | ) | 1.84 | 4.90 | 4.36 | 2.39 | (9.06 | ) | ||||||||||||||||
Total from investment operations | (2.05 | ) | 2.30 | 5.05 | 4.30 | 2.34 | (9.35 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.77 | ) | (0.34 | ) | — | — | — | ||||||||||||||||
Net asset value, end of period | $ | 32.76 | $ | 34.81 | $ | 33.28 | $ | 28.57 | $ | 24.27 | $ | 21.93 | ||||||||||||
Total return (b) | (5.89)% | (c) | 6.88 | % | 17.67 | % | 17.72 | % | 10.67 | % | (29.89 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 2.47% | (d) | 2.39 | % | 2.52 | % | 2.65 | % | 2.44 | % | 2.32 | % | ||||||||||||
Net expenses | 2.20% | (d) | 2.20 | % | 2.20 | % | 2.20 | % | 2.20 | % | 2.20 | % | ||||||||||||
Net investment income (loss) | 1.47% | (d) | 1.28 | % | 0.45 | % | (0.27 | )% | (0.19 | )% | (0.98 | )% | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $11 | $13 | $14 | $11 | $13 | $24 | ||||||||||||||||||
Portfolio turnover rate | 21% | (c)(e) | 34 | % | 28 | % | 37 | % | 33 | % | 16 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
57 |
GLOBAL RESOURCES FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class I | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $43.33 | $41.17 | $35.15 | $29.74 | $26.94 | $38.10 | ||||||||||||||||||
Net investment income (a) | 0.58 | 1.17 | 0.67 | 0.26 | 0.30 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.87 | ) | 2.23 | 6.04 | 5.45 | 2.94 | (11.17 | ) | ||||||||||||||||
Total from investment operations | (2.29 | ) | 3.40 | 6.71 | 5.71 | 3.24 | (11.07 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.24 | ) | (0.69 | ) | (0.30 | ) | (0.44 | ) | (0.08 | ) | |||||||||||||
Return of capital | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | — | (1.24 | ) | (0.69 | ) | (0.30 | ) | (0.44 | ) | (0.09 | ) | |||||||||||||
Net asset value, end of period | $41.04 | $43.33 | $41.17 | $35.15 | $29.74 | $26.94 | ||||||||||||||||||
Total return (b) | (5.29)% | (c) | 8.19 | % | 19.12 | % | 19.23 | % | 12.06 | % | (29.04 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.11% | (d) | 1.10 | % | 1.11 | % | 1.14 | % | 1.09 | % | 1.06 | % | ||||||||||||
Net expenses | 0.95% | (d) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||
Net investment income | 2.76% | (d) | 2.60 | % | 1.66 | % | 0.98 | % | 1.05 | % | 0.29 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $417 | $503 | $386 | $358 | $460 | $945 | ||||||||||||||||||
Portfolio turnover rate | 21% | (c)(e) | 34 | % | 28 | % | 37 | % | 33 | % | 16 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
58 |
GLOBAL RESOURCES FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Y | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $42.06 | $40.00 | $34.17 | $28.93 | $26.19 | $37.01 | ||||||||||||||||||
Net investment income (a) | 0.52 | 1.05 | 0.62 | 0.20 | 0.24 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.78 | ) | 2.17 | 5.83 | 5.29 | 2.87 | (10.84 | ) | ||||||||||||||||
Total from investment operations | (2.26 | ) | 3.22 | 6.45 | 5.49 | 3.11 | (10.80 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (1.16 | ) | (0.62 | ) | (0.25 | ) | (0.37 | ) | (0.02 | ) | |||||||||||||
Return of capital | — | — | — | — | — | — | (b) | |||||||||||||||||
Total distributions | — | (1.16 | ) | (0.62 | ) | (0.25 | ) | (0.37 | ) | (0.02 | ) | |||||||||||||
Net asset value, end of period | $39.80 | $42.06 | $40.00 | $34.17 | $28.93 | $26.19 | ||||||||||||||||||
Total return (c) | (5.37)% | (d) | 7.99 | % | 18.92 | % | 18.99 | % | 11.88 | % | (29.17 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.15% | (e) | 1.14 | % | 1.18 | % | 1.29 | % | 1.24 | % | 1.20 | % | ||||||||||||
Net expenses | 1.13% | (e) | 1.13 | % | 1.13 | % | 1.13 | % | 1.13 | % | 1.13 | % | ||||||||||||
Net investment income | 2.56% | (e) | 2.41 | % | 1.56 | % | 0.76 | % | 0.85 | % | 0.11 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $243 | $302 | $231 | $122 | $115 | $167 | ||||||||||||||||||
Portfolio turnover rate | 21% | (d)(f) | 34 | % | 28 | % | 37 | % | 33 | % | 16 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Amount represents less than $0.005 per share. |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
59 |
INTERNATIONAL INVESTORS GOLD FUND
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class A | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $8.89 | $10.32 | $12.82 | $10.16 | $7.65 | $9.38 | ||||||||||||||||||
Net investment income (loss) (a) | — | (b) | 0.03 | — | (b) | (0.06 | ) | (0.06 | ) | (0.04 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.44 | (1.46 | ) | (1.84 | ) | 4.22 | 2.94 | (1.47 | ) | |||||||||||||||
Total from investment operations | 0.44 | (1.43 | ) | (1.84 | ) | 4.16 | 2.88 | (1.51 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.66 | ) | (1.50 | ) | (0.37 | ) | (0.22 | ) | ||||||||||||||
Net asset value, end of period | $9.33 | $8.89 | $10.32 | $12.82 | $10.16 | $7.65 | ||||||||||||||||||
Total return (c) | 4.95% | (d) | (13.86 | )% | (14.22 | )% | 41.39 | % | 38.03 | % | (15.99 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.43% | (e) | 1.42% | (f) | 1.34% | (f) | 1.34 | % | 1.49 | % | 1.47 | % | ||||||||||||
Net expenses | 1.43% | (e) | 1.42% | (f) | 1.34% | (f) | 1.34 | % | 1.45 | % | 1.45 | % | ||||||||||||
Net investment income (loss) | 0.01% | (e) | 0.28% | (f) | —% | (f) | (0.45 | )% | (0.63 | )% | (0.51 | )% | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $257 | $243 | $302 | $378 | $277 | $200 | ||||||||||||||||||
Portfolio turnover rate | 9% | (d) | 39 | % | 23 | % | 32 | % | 21 | % | 35 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Amount represents less than $0.005 per share. |
(c) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(d) | Not Annualized |
(e) | Annualized |
(f) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
See Notes to Financial Statements
60 |
INTERNATIONAL INVESTORS GOLD FUND
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class C | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $7.30 | $8.54 | $10.83 | $8.77 | $6.64 | $8.25 | ||||||||||||||||||
Net investment loss (a) | (0.03 | ) | (0.04 | ) | (0.08 | ) | (0.13 | ) | (0.11 | ) | (0.09 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.37 | (1.20 | ) | (1.55 | ) | 3.62 | 2.55 | (1.30 | ) | |||||||||||||||
Total from investment operations | 0.34 | (1.24 | ) | (1.63 | ) | 3.49 | 2.44 | (1.39 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.66 | ) | (1.43 | ) | (0.31 | ) | (0.22 | ) | ||||||||||||||
Net asset value, end of period | $7.64 | $7.30 | $8.54 | $10.83 | $8.77 | $6.64 | ||||||||||||||||||
Total return (b) | 4.66% | (c) | (14.52 | )% | (14.89 | )% | 40.31 | % | 37.12 | % | (16.73 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 2.24% | (d) | 2.21% | (e) | 2.13% | (e) | 2.12 | % | 2.31 | % | 2.27 | % | ||||||||||||
Net expenses | 2.20% | (d) | 2.20% | (e) | 2.13% | (e) | 2.12 | % | 2.20 | % | 2.20 | % | ||||||||||||
Net investment loss | (0.76)% | (d) | (0.51)% | (e) | (0.79)% | (e) | (1.21 | )% | (1.36 | )% | (1.25 | )% | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $35 | $36 | $49 | $63 | $38 | $32 | ||||||||||||||||||
Portfolio turnover rate | 9% | (c) | 39 | % | 23 | % | 32 | % | 21 | % | 35 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
See Notes to Financial Statements
61 |
INTERNATIONAL INVESTORS GOLD FUND
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class I | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $12.30 | $14.22 | $17.31 | $13.32 | $9.93 | $12.05 | ||||||||||||||||||
Net investment income (loss) (a) | 0.03 | 0.09 | 0.05 | (0.02 | ) | (0.02 | ) | (0.01 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.62 | (2.01 | ) | (2.48 | ) | 5.55 | 3.82 | (1.89 | ) | |||||||||||||||
Total from investment operations | 0.65 | (1.92 | ) | (2.43 | ) | 5.53 | 3.80 | (1.90 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.66 | ) | (1.54 | ) | (0.41 | ) | (0.22 | ) | ||||||||||||||
Net asset value, end of period | $12.95 | $12.30 | $14.22 | $17.31 | $13.32 | $9.93 | ||||||||||||||||||
Total return (b) | 5.28% | (c) | (13.50 | )% | (13.94 | )% | 41.88 | % | 38.61 | % | (15.69 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.13% | (d) | 1.09% | (e) | 1.03% | (e) | 1.02 | % | 1.09 | % | 1.06 | % | ||||||||||||
Net expenses | 1.00% | (d) | 1.00% | (e) | 1.00% | (e) | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||||
Net investment income (loss) | 0.45% | (d) | 0.70% | (e) | 0.34% | (e) | (0.12 | )% | (0.16 | )% | (0.06 | )% | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $159 | $156 | $203 | $244 | $236 | $244 | ||||||||||||||||||
Portfolio turnover rate | 9% | (c) | 39 | % | 23 | % | 32 | % | 21 | % | 35 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
See Notes to Financial Statements
62 |
INTERNATIONAL INVESTORS GOLD FUND
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Y | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $9.19 | $10.64 | $13.15 | $10.40 | $7.82 | $9.55 | ||||||||||||||||||
Net investment income (loss) (a) | 0.02 | 0.06 | 0.03 | (0.02 | ) | (0.03 | ) | (0.01 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.46 | (1.51 | ) | (1.88 | ) | 4.31 | 3.01 | (1.50 | ) | |||||||||||||||
Total from investment operations | 0.48 | (1.45 | ) | (1.85 | ) | 4.29 | 2.98 | (1.51 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.66 | ) | (1.54 | ) | (0.40 | ) | (0.22 | ) | ||||||||||||||
Net asset value, end of period | $9.67 | $9.19 | $10.64 | $13.15 | $10.40 | $7.82 | ||||||||||||||||||
Total return (b) | 5.22% | (c) | (13.63 | )% | (13.94 | )% | 41.68 | % | 38.52 | % | (15.71 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.14% | (d) | 1.11% | (e) | 1.06% | (e) | 1.05 | % | 1.17 | % | 1.18 | % | ||||||||||||
Net expenses | 1.10% | (d) | 1.10% | (e) | 1.06% | (e) | 1.05 | % | 1.10 | % | 1.10 | % | ||||||||||||
Net investment income (loss) | 0.35% | (d) | 0.59% | (e) | 0.29% | (e) | (0.12 | )% | (0.29 | )% | (0.17 | )% | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $266 | $241 | $306 | $375 | $176 | $106 | ||||||||||||||||||
Portfolio turnover rate | 9% | (c) | 39 | % | 23 | % | 32 | % | 21 | % | 35 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
(e) | The ratios presented do not reflect the Fund’s proportionate share of income and expenses from the Fund’s investment in underlying funds. |
See Notes to Financial Statements
63 |
VANECK MORNINGSTAR WIDE MOAT FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class I | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $26.02 | $33.51 | $30.70 | $29.13 | $23.94 | $26.63 | ||||||||||||||||||
Net investment income (a) | 0.12 | 0.31 | 0.40 | 0.47 | 0.49 | 0.49 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.80 | (4.82 | ) | 6.92 | 3.63 | 7.86 | (0.91 | ) | ||||||||||||||||
Total from investment operations | 5.92 | (4.51 | ) | 7.32 | 4.10 | 8.35 | (0.42 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.30 | ) | (0.38 | ) | (0.48 | ) | (0.46 | ) | (0.48 | ) | |||||||||||||
Net realized capital gains | — | (2.68 | ) | (4.13 | ) | (2.05 | ) | (2.70 | ) | (1.79 | ) | |||||||||||||
Total distributions | — | (2.98 | ) | (4.51 | ) | (2.53 | ) | (3.16 | ) | (2.27 | ) | |||||||||||||
Net asset value, end of period | $31.94 | $26.02 | $33.51 | $30.70 | $29.13 | $23.94 | ||||||||||||||||||
Total return (b) | 22.75% | (c) | (13.63 | )% | 24.04 | % | 14.18 | % | 34.80 | % | (1.30 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 2.66% | (d) | 2.04 | % | 2.26 | % | 4.28 | % | 5.21 | % | 3.42 | % | ||||||||||||
Net expenses | 0.60% | (d) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
Net expenses excluding interest | 0.59% | (d) | 0.59 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
Net investment income | 0.82% | (d) | 1.03 | % | 1.13 | % | 1.65 | % | 1.72 | % | 1.79 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $4 | $3 | $1 | $1 | ||||||||||||||||||
Portfolio turnover rate | 41% | (c) | 72 | % | 59 | % | 64 | % | 108 | % | 76 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
See Notes to Financial Statements
64 |
VANECK MORNINGSTAR WIDE MOAT FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
Class Z | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of period | $25.63 | $33.04 | $30.32 | $28.76 | $23.95 | $26.63 | ||||||||||||||||||
Net investment income (a) | 0.13 | 0.34 | 0.44 | 0.49 | 0.52 | 0.50 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.71 | (4.75 | ) | 6.82 | 3.59 | 7.89 | (0.90 | ) | ||||||||||||||||
Total from investment operations | 5.84 | (4.41 | ) | 7.26 | 4.08 | 8.41 | (0.40 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.32 | ) | (0.41 | ) | (0.47 | ) | (0.90 | ) | (0.49 | ) | |||||||||||||
Net realized capital gains | — | (2.68 | ) | (4.13 | ) | (2.05 | ) | (2.70 | ) | (1.79 | ) | |||||||||||||
Total distributions | — | (3.00 | ) | (4.54 | ) | (2.52 | ) | (3.60 | ) | (2.28 | ) | |||||||||||||
Net asset value, end of period | $31.47 | $25.63 | $33.04 | $30.32 | $28.76 | $23.95 | ||||||||||||||||||
Total return (b) | 22.79% | (c) | (13.52 | )% | 24.15 | % | 14.31 | % | 35.02 | % | (1.22 | )% | ||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||
Gross expenses | 1.38% | (d) | 1.28 | % | 1.59 | % | 2.48 | % | 3.02 | % | 2.16 | % | ||||||||||||
Net expenses | 0.50% | (d) | 0.49 | % | 0.49 | % | 0.49 | % | 0.49 | % | 0.49 | % | ||||||||||||
Net expenses excluding interest | 0.49% | (d) | 0.49 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
Net investment income | 0.92% | (d) | 1.14 | % | 1.23 | % | 1.74 | % | 1.83 | % | 1.90 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (in millions) | $16 | $13 | $15 | $10 | $8 | $5 | ||||||||||||||||||
Portfolio turnover rate | 41% | (c) | 72 | % | 59 | % | 64 | % | 108 | % | 76 | % | ||||||||||||
(a) | Calculated based upon average shares outstanding |
(b) | Returns include adjustments in accordance with U.S. Generally Accepted Accounting Principles. Net asset values and returns for financial reporting purposes may differ from those for shareholder transactions. |
(c) | Not Annualized |
(d) | Annualized |
See Notes to Financial Statements
65 |
VANECK FUNDS
June 30, 2022 (unaudited)
Note 1—Fund Organization—VanEck Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was organized as a Massachusetts business trust on April 3, 1985. These financial statements relate to the investment portfolios listed in the diversification table below (each a “Fund” and, collectively, the “Funds”).
Fund | Diversification Classification |
CM Commodity Index Fund | Diversified |
Emerging Markets Bond Fund | Non-Diversified |
Emerging Markets Fund | Diversified |
Emerging Markets Leaders Fund | Non-Diversified |
Environmental Sustainability Fund | Non-Diversified |
Global Resources Fund | Diversified |
International Investors Gold Fund | Non-Diversified |
VanEck Morningstar Wide Moat Fund | Diversified |
The CM Commodity Index Fund seeks to track, before fees and expenses, the performance of the UBS Bloomberg Constant Maturity Commodity Total Return Index. The Emerging Markets Bond Fund seeks total return, consisting of income and capital appreciation by investing primarily in emerging market debt securities. The Emerging Markets Fund and Emerging Markets Leaders Fund seek long-term capital appreciation by investing primarily in equity securities in emerging markets around the world. The Environmental Sustainability Fund seeks long-term capital appreciation by investing primarily in equity securities of companies operating in environmental sustainability markets. The Global Resources Fund seeks long-term capital appreciation by investing primarily in hard asset securities. The International Investors Gold Fund seeks long-term capital appreciation by investing in common stocks of gold-mining companies or directly in gold bullion and other metals. The VanEck Morningstar Wide Moat Fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar Wide Moat Focus Index.
Each of the Funds is authorized to issue various classes of shares. Each share class represents an interest in the same portfolio of investments of the respective Fund and is substantially the same in all respects, except that the classes are subject to different distribution fees and sales charges. Class I, Y and Z Shares are sold without a sales charge; Class A Shares are sold subject to a front-end sales charge; and Class C Shares are sold with a contingent deferred sales charge.
Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The Funds are investment companies and follow accounting and reporting requirements of Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies.
The following summarizes the Funds’ significant accounting policies.
A. | Security Valuation—The Funds value their investments in securities and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds utilize various methods to measure the fair value of their investments on a recurring basis, which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three levels of the fair value hierarchy are described below: |
Level 1 — Quoted prices in active markets for identical securities.
66 |
Level 2 — Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 — Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).
Securities traded on national exchanges are valued at the closing price on the markets in which the securities trade. Securities traded on the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the NASDAQ official closing price. Over-the-counter securities not included on NASDAQ and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy. Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as, when a particular foreign market is closed but the Funds are open. Debt securities are valued on the basis of evaluated prices furnished by an independent pricing service or provided by securities dealers. The pricing services may use valuation models or matrix pricing, which consider: (i) yield or price with respect to bonds that are considered comparable in characteristics such as rating, interest rate and maturity date and or (ii) quotations from bond dealers to determine current value and are categorized as Level 2 in the fair value hierarchy. Short-term debt securities with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Non-exchange traded warrants of publicly traded companies are generally valued using the Black-Scholes model, which incorporates both observable and unobservable inputs. Open-end mutual fund investments (including money market funds) are valued at their net asset value each business day and are categorized as Level 1 in the fair value hierarchy. 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 and are categorized as Level 2 in the fair value hierarchy. Swap contracts are marked to market daily using either pricing vendor quotations, counterparty prices or model prices and the net change in value, if any, is regarded as an unrealized gain or loss and is categorized as Level 2 in the fair value hierarchy. The Board of Trustees (“Trustees”) has designated Van Eck Associates Corporation (“VEAC”) and Van Eck Absolute Return Advisers Corporation (“VEARA”) (VEAC and VEARA collectively referred to as the “Adviser”) as valuation designee to perform the Funds’ fair value determinations, subject to board oversight and certain reporting and other requirements. The Adviser has adopted policies and procedures reasonably designed to comply with the requirements. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments or other assets. If market quotations for a security or other asset are not readily available, or if the Adviser believes it does not otherwise reflect the fair value of a security or asset, the security or asset will be fair valued by the Pricing Committee in accordance with the Funds’ valuation policies and procedures. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, periodic comparisons to valuations provided by other independent pricing services, transactional back-testing and disposition analysis.
Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be categorized either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments.
67 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
A summary of the inputs and the levels used to value the Funds’ investments are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments.
B. | Basis for Consolidation—The CM Commodity Index Fund and International Investors Gold Fund may effect certain investments through the Commodities Series Fund I Subsidiary, and Gold Series Fund I Subsidiary, respectively, Cayman Islands exempted companies (collectively the “Subsidiaries” and each a wholly-owned “Subsidiary”). The consolidated financial statements of the CM Commodity Index Fund and the International Investors Gold Fund present the financial position and results of operations for the Funds, and their wholly owned Subsidiaries. All interfund account balances and transactions between parent and subsidiary have been eliminated in consolidation. As of June 30, 2023, the CM Commodity Index Fund and International Investors Gold Fund held $120,180,824 and $54,657 in their Subsidiaries, representing 21% and 0% of the Funds’ net assets, respectively. |
C. | 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 its net investment income and net realized capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. |
The wholly owned Subsidiaries are classified as controlled foreign corporations (“CFC”) under the Code. For U.S. tax purposes, a CFC is not subject to U.S. income tax. However, as a wholly owned CFC, its net income and capital gains, to the extent of its earnings and profits, will be included each year in the Funds’ investment company taxable income. Net losses of the CFC cannot be deducted by the Funds in the current year, nor carried forward to offset taxable income in future years. | |
D. | Distributions to Shareholders—Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually (except for dividends from net investment income from Emerging Markets Bond Fund which are declared and paid monthly). Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP. |
E. | Currency Translation—Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day as quoted by one or more sources. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated 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 in the financial statements. Such amounts are included with the net realized and unrealized gains and losses on investment securities in the Statements of Operations. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) and net change in unrealized appreciation (depreciation) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations. Any currency denominated in Rubles cannot be repatriated and such currency is valued at $0 as of June 30, 2023 |
F. | Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments. |
G. | Use of Derivative Instruments—The Funds may invest in derivative instruments, including, but not limited to, options, futures, swaps and forward foreign currency contracts. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative instruments may be privately negotiated contracts (often referred to as over-the- |
68 |
counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments or commodities at specified terms on a specified date, or to exchange interest payment streams or currencies based on a notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The use of derivative instruments also involves the risk of loss if the investment adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument. GAAP requires enhanced disclosures about the Funds’ derivative instruments and hedging activities. Details of this disclosure are found below as well as in the Schedule of Investments.
Total Return Swaps—The CM Commodity Index Fund enters into total return swaps in order take a “long” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty. Documentation governing the Fund’s swap transactions may contain provisions for early termination of a swap in the event the net assets of the Fund decline below specific levels set forth in the documentation (“net asset contingent features”). If these levels are triggered, the Fund’s counterparty has the right to terminate the swap and require the Fund to pay or receive a settlement amount in connection with the terminated swap transaction. The total return swap position held by the CM Commodity Index Fund at June 30, 2023 is reflected in the Fund’s Consolidated Schedule of Investments.
During the period ending in June 30, 2023, the CM Commodity Index Fund held swap contracts for six months with an average monthly notional amount of $572,856,167.
Forward Foreign Currency Contracts—The Funds may buy and sell forward foreign currency contracts to settle purchases and sales of foreign denominated securities, gain currency exposure or to hedge foreign denominated assets. Realized gains and losses from forward foreign currency contracts, if any, are included in realized gain (loss) on forward foreign currency contracts in the Statements of Operations. During the period ending in June 30, 2023, the Emerging Market Bond Fund held forward foreign currency contracts for four months. The average amount purchased and sold (in U.S. dollars) was $145,164 and $269,575, respectively. The Emerging Markets Fund held forward foreign currency contracts for one month during the period, and the average amount sold (in U.S. dollars) was $120,609. The International Investors Gold Fund held forward foreign currency contracts for one month during the period, and the average amount purchased (in U.S. dollars) was $2,947,688. Forward foreign currency contracts held at June 30, 2023 are reflected in the Fund’s Schedule of Open Forward Foreign Currency Contracts.
At June 30, 2023, the following Funds held derivatives (not designated as hedging instruments under GAAP):
Asset Derivatives | ||||||||
Commodities Futures Risk | Foreign Currency Risk | |||||||
CM Commodity Index Fund | ||||||||
Swap contracts1 | $ | 4,326,297 | $ | — | ||||
Emerging Markets Bond Fund | ||||||||
Forward foreign currency contracts2 | — | 496 |
1 | Statements of Assets and Liabilities location: Total return swap contracts, at value |
2 | Statements of Assets and Liabilities location: Unrealized appreciation on forward foreign currency contracts |
69 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
Liabilities Derivatives | ||||
Foreign Currency Risk | ||||
Emerging Markets Bond Fund | ||||
Forward foreign currency contracts1 | $ | 568 |
1 | Statements of Assets and Liabilities location: Unrealized depreciation on forward foreign currency contracts |
The impact of transactions in derivative instruments during the period ended June 30, 2023, was as follows:
Commodities Futures Risk | Foreign Currency Risk | |||||||
CM Commodity Index Fund | ||||||||
Realized gain (loss): | ||||||||
Swap contracts1 | $ | (38,801,925 | ) | $ | — | |||
Net change in unrealized appreciation (depreciation): | ||||||||
Swap contracts2 | (768,599 | ) | — | |||||
Emerging Markets Bond Fund | ||||||||
Realized gain (loss): | ||||||||
Forward foreign currency contracts3 | — | (5,725 | ) | |||||
Net change in unrealized appreciation (depreciation): | ||||||||
Forward foreign currency contracts4 | — | (72 | ) | |||||
Emerging Markets Fund | ||||||||
Realized gain (loss): | ||||||||
Forward foreign currency contracts3 | — | 43 | ||||||
International Investors Gold Fund | ||||||||
Realized gain (loss): | ||||||||
Forward foreign currency contracts3 | — | (3,726 | ) |
1 | Statements of Operations location: Net realized gain (loss) on swap contracts |
2 | Statements of Operations location: Net change in unrealized appreciation (depreciation) on swap contracts |
3 | Statements of Operations location: Net realized gain (loss) on forward foreign currency contracts |
4 | Statements of Operations location: Net change in unrealized appreciation (depreciation) on forward foreign currency contracts |
F. | Offsetting Assets and Liabilities—In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting or other similar agreements. Generally, the right of offset in those agreements allows the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may pledge or receive cash and or securities as collateral for derivative instruments and securities lending. For financial reporting purposes, the Funds present securities lending assets and liabilities on a gross basis in the Statements of Assets and Liabilities. Cash collateral held in the form of money market fund investments, if any, at June 30, 2023 is presented in the Schedules of Investments and in the Statements of Assets and Liabilities. Non-cash collateral is disclosed in Note 9 (Securities Lending). |
The table below presents both gross and net information about the derivative instruments eligible for offset in the Statements of Assets and Liabilities subject to a master netting or similar agreements, as well as financial collateral received or pledged (including cash collateral) as of June 30, 2023. The total amount of collateral reported, if any, is limited to the net amounts of financial assets and liabilities presented in the Statements of Assets and Liabilities for the respective financial instruments. In general, collateral received or pledged exceeds the net amount of the unrealized gain/loss or market value of financial instruments.
70 |
Gross Amounts of Recognized Assets/ (Liabilities) | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets/ (Liabilities) Presented in the Statements of Assets and Liabilities | Financial Instruments and Cash Collateral Received | Net Amount | ||||||
CM Commodity Index Fund | ||||||||||
Total return swap contracts | $4,326,297 | $— | $4,326,297 | $— | $4,326,297 | |||||
Emerging Markets Bond Fund | ||||||||||
Forward foreign | ||||||||||
currency contracts | $496 | $(496) | $— | $— | $— | |||||
$(568) | $496 | $(72) | $— | $(72) |
G. | Other—Security transactions are accounted for on trade date. Realized gains and losses are determined based on the specific identification method. Interest income, including amortization of premiums and discounts, is accrued using the effective interest method. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date. |
Income, non-class specific expenses, gains and losses on investments are allocated to each class of shares based upon the relative net assets. Expenses directly attributable to a specific class are charged to that class. | |
The Funds earn interest income on uninvested cash balances held at the custodian bank. Such amounts, if any, are presented as interest income in the Statements of Operations. | |
In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote. |
Note 3—Investment Management and Other Agreements—VEAC is the investment adviser to the Emerging Markets Bond Fund, Emerging Markets Fund, Emerging Markets Leaders Fund, Environmental Sustainability, Global Resources Fund, International Investors Gold Fund, and VanEck Morningstar Wide Moat Fund. VEARA is the investment adviser to the CM Commodity Index Fund and its Subsidiary. VEARA is a wholly-owned subsidiary of VEAC. The Adviser receives a management fee, calculated daily and payable monthly based on the Funds’ average daily net assets, as follows:
Fund | Annual Rate | |
CM Commodity Index Fund | 0.65% | |
Emerging Markets Bond Fund | 0.80% of the first $1.5 billion and 0.75% thereafter | |
Emerging Markets Fund | 0.75% | |
Emerging Markets Leaders Fund | 0.75% | |
Environmental Sustainability Fund | 0.75% | |
Global Resources Fund | 1.00% of the first $2.5 billion and 0.90% thereafter | |
International Investors Gold Fund | 0.75% of the first $500 million, 0.65% of the next $250 million and 0.50% thereafter | |
VanEck Morningstar Wide Moat Fund | 0.45% |
The Adviser has agreed, until at least May 1, 2024, to waive management fees and assume expenses to prevent the Funds’ total annual operating expenses (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends and interest payments on securities sold short, taxes and extraordinary expenses) from exceeding the expense limitations listed in the table below.
71 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
The current expense limitations and the amounts waived/assumed by the Adviser for the period ending in June 30, 2023, are as follows:
Fund | Expense Limitations | Waiver of Management Fees | Expenses Assumed by the Adviser | |||||||||
CM Commodity Index Fund | ||||||||||||
Class A | 0.95 | % | $ | 56,609 | $ | — | ||||||
Class I | 0.65 | 270,168 | — | |||||||||
Class Y | 0.70 | 374,802 | — | |||||||||
Emerging Markets Bond Fund* | ||||||||||||
Class A | 1.20 | 24,016 | 3,196 | |||||||||
Class I | 0.85 | 36,833 | — | |||||||||
Class Y | 0.95 | 29,032 | — | |||||||||
Emerging Markets Fund | ||||||||||||
Class A | 1.60 | 24,775 | — | |||||||||
Class C | 2.50 | 6,296 | — | |||||||||
Class I | 1.00 | 527,618 | — | |||||||||
Class Y | 1.10 | 391,176 | — | |||||||||
Class Z | 0.90 | 114,420 | — | |||||||||
Emerging Markets Leaders Fund | ||||||||||||
Class A | 1.45 | 3,275 | 14,200 | |||||||||
Class I | 0.85 | 6,592 | 21,119 | |||||||||
Class Y | 0.95 | 6,585 | 20,167 | |||||||||
Class Z | 0.75 | 3,300 | 15,571 | |||||||||
Environmental Sustainability Fund | ||||||||||||
Class A | 1.25 | 3,048 | 22,737 | |||||||||
Class I | 0.95 | 6,603 | 31,501 | |||||||||
Class Y | 1.05 | 5,709 | 28,398 | |||||||||
Global Resources Fund | ||||||||||||
Class A | 1.38 | 72,037 | — | |||||||||
Class C | 2.20 | 16,234 | — | |||||||||
Class I | 0.95 | 378,831 | — | |||||||||
Class Y | 1.13 | 25,318 | — | |||||||||
International Investors Gold Fund | ||||||||||||
Class A | 1.45 | — | — | |||||||||
Class C | 2.20 | 7,565 | — | |||||||||
Class I | 1.00 | 104,380 | — | |||||||||
Class Y | 1.10 | 48,594 | — | |||||||||
VanEck Morningstar Wide Moat Fund | ||||||||||||
Class I | 0.59 | 4,770 | 17,076 | |||||||||
Class Z | 0.49 | 33,217 | 31,921 |
* | Effective June 16, 2023, Emerging Markets Bond Fund reduced its expense caps from 1.25% to 1.20% for Class A, 0.95% to 0.85% for Class I, and 1.00% to 0.95% for Class Y. |
The Adviser also performs accounting and administrative services for the Emerging Markets Fund and International Investors Gold Fund. The Adviser is paid a monthly fee at a rate of 0.25% of the average daily net assets for Emerging Markets Fund, and for International Investors Gold Fund at the rate of 0.25% per year on the first $750 million of the average daily net assets of the Fund and 0.20% per year of the average daily net assets in excess of $750 million. Administrative fees are included in expenses in the Statements of Operations.
For the period ended June 30, 2023, Van Eck Securities Corporation (the “Distributor”), and affiliate of the Adviser, received a total of $343,423 in sales loads relating to the sale of shares of the Funds, of which $320,733 was reallowed to broker/dealers and the remaining $22,690 was retained by the Distributor.
Certain officers of the Trust are officers, directors or stockholders of the Adviser and the Distributor.
72 |
At June 30, 2023, the Distributor owned approximately 100% of Class A, I, Y, and Z of VanEck Emerging Markets Leaders Fund, 93% of Class A, 86% of Class I and 100% Class Y of VanEck Environmental Sustainability Fund, 91% of Class I and 52% of Class Z of VanEck Morningstar Wide Moat Fund.
Note 4—Investments—For the period ending in June 30, 2023, the cost of purchases and proceeds from sales of investments, excluding U.S. Government securities and short-term investments, were as follows:
Fund | Purchases | Sales | ||||||
Emerging Markets Bond Fund | $ | 90,382,112 | $ | (37,611,827 | ) | |||
Emerging Markets Fund | 57,747,595 | (155,989,549 | ) | |||||
Emerging Markets Leaders Fund | 725,427 | (875,645 | ) | |||||
Environmental Sustainability Fund | 337,090 | (279,205 | ) | |||||
Global Resources Fund | 185,138,626 | (234,109,237 | )* | |||||
International Investors Gold Fund | 85,255,129 | (64,096,765 | ) | |||||
VanEck Morningstar Wide Moat Fund | 7,035,043 | (6,909,018 | ) |
* | Amount excludes an in-kind redemption of $35,102,835. |
Note 5—Income Taxes—As of June 30, 2023, for Federal income tax purposes, the identified cost, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) of investments were as follows:
Fund | Tax Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||
CM Commodity Index Fund | $467,124,793 | $84,447,615 | $(72,738) | $84,374,877 | ||||
Emerging Markets Bond Fund | 68,396,992 | 1,832,761 | (828,034) | 1,004,727 | ||||
Emerging Markets Fund | 876,156,103 | 188,675,128 | (198,529,762) | (9,854,634) | ||||
Emerging Markets Leaders Fund | 5,524,687 | 474,122 | (653,916) | (179,794) | ||||
Environmental Sustainability Fund | 5,519,834 | 349,784 | (1,309,037) | (959,253) | ||||
Global Resources Fund | 662,505,935 | 189,780,933 | (48,080,231) | 141,700,702 | ||||
International Investors Gold Fund | 553,431,678 | 282,028,246 | (118,224,416) | 163,803,830 | ||||
VanEck Morningstar Wide Moat Fund | 17,289,012 | 2,305,759 | (833,819) | 1,471,940 |
The tax character of current year distributions, if any, will be determined at the end of the current fiscal year.
At December 31, 2022, the Funds had capital loss carryforwards available to offset future capital gains, as follows:
Fund | Short-Term Capital Losses with No Expiration | Long-Term Capital Losses with No Expiration | Total | |||||||||
CM Commodity Index Fund | $ | (16,232 | ) | $ | – | $ | (16,232 | ) | ||||
Emerging Markets Bond Fund | (32,974,671 | ) | (1,318,081 | ) | (34,292,752 | ) | ||||||
Emerging Markets Fund | (100,061,455 | ) | (108,767,852 | ) | (208,829,307 | ) | ||||||
Emerging Markets Leaders Fund | (338,156 | ) | – | (338,156 | ) | |||||||
Environmental Sustainability Fund | (78,484 | ) | (86,897 | ) | (165,381 | ) | ||||||
Global Resources Fund | (126,298,281 | ) | (882,604,137 | ) | (1,008,902,418 | ) | ||||||
International Investors Gold Fund | (116,438,977 | ) | (246,622,799 | ) | (363,061,776 | ) |
Additionally, Global Resources Fund utilized $55,936,190 of its capital loss carryover available from prior years.
Realized gains or losses attributable to fluctuations in foreign exchange rates on investments and other foreign currency denominated assets and liabilities result in permanent book to tax differences which may affect the tax character of distributions and undistributed net investment income at the end of the Fund’s fiscal year.
73 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
For the period ended June 30, 2023, Emerging Market Bond Fund’s net realized losses from foreign currency translations were $93,193.
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for all open tax years. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements. However, the Funds are subject to foreign taxes on the appreciation in value of certain investments. The Funds provide for such taxes on both realized and unrealized appreciation.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ending in June 30, 2023, the Funds did not incur any interest or penalties.
Note 6—Principal Risks—Non-diversified funds generally hold securities of fewer issuers than diversified funds (See Note 1) and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse economic developments and political conflicts, or natural or other disasters, such as the recent coronavirus outbreak. Additionally, certain Funds may invest in securities of emerging market issuers, which are exposed to a number of risks that may make these investments volatile in price or difficult to trade. Political risks may include unstable governments, nationalization, restrictions on foreign ownership, laws that prevent investors from getting their money out of a country, sanctions and investment restrictions and legal systems that do not protect property risks as well as the laws of the United States. These and other factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets. Certain securities of Chinese issuers are, or may in the future become restricted, and the Fund may be forced to sell such restricted securities and incur a loss. As a result of events involving Russia, the United States and European Union, have in the past, and may in the future, impose sanctions on certain Russian individuals and companies, which may adversely affect the value and liquidity of the Russian-related issuers’ held by the Funds.
The CM Commodity Index Fund may invest in commodity-linked derivative instruments, including commodity index-linked notes, swap agreements, commodity futures contracts and options on futures contracts that provide economic exposure to the investment returns of the commodities markets. The use of derivatives presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. Derivative strategies often involve leverage, which may exaggerate a loss, potentially causing the Fund to lose more money than it would have lost had it invested in the underlying security. The value of commodity-linked derivative instruments may be affected by overall market movements and other factors affecting the value of a particular industry or commodity, such as weather, disease, embargoes, or political and economic events and regulatory developments. Exposure to the commodities markets, such as precious metals, industrial metals, gas and other energy products and natural resources, may subject the Fund to greater volatility than investments in traditional securities.
Changes in laws or government regulations by the United States and/or the Cayman Islands could adversely affect the operations of the Funds with Cayman subsidiaries.
The Environmental Sustainability Fund concentrates its investments in companies that promote positive environmental policies, which may not perform as well as companies that do not pursue such goals. They may be highly dependent upon government subsidies, contracts with government entities, and the successful development of new and proprietary technologies. Investments in them may be volatile.
74 |
The Global Resources Fund and International Investors Gold Fund may concentrate their investments in companies which are significantly engaged in the exploration, development, production and distribution of gold and other natural resources such as strategic and other metals, minerals, forest products, oil, natural gas and coal and by investing in gold bullion and coins. In addition, the International Investors Gold Fund may invest up to 25% of its net assets in gold and silver gold, silver, platinum and palladium bullion and exchange traded funds that invest in such coins and bullion and derivatives on the foregoing. Since the Funds may so concentrate, they may be subject to greater risks and market fluctuations than other more diversified portfolios. The production and marketing of gold and other natural resources may be affected by actions and changes in governments. In addition, gold and natural resources may be cyclical in nature.
Following Russia’s large-scale invasion of Ukraine on February 24, 2022, governments of the United States and many other countries have imposed economic sanctions on certain Russian individuals and Russian governmental, corporate and banking entities. A number of jurisdictions have also instituted broad sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments.
In response, the government of Russia has imposed capital controls to restrict movements of capital entering and exiting the country. As a result, the value and liquidity of Russian securities and its currency have experienced significant declines and increased volatility. The Russian securities markets were closed for a period of time and were reopened on March 24, 2022, but significant trading limitations have remained. There is no assurance that these disruptions will not continue.
A more complete description of risks is included in each Fund’s Prospectus and Statement of Additional Information.
Note 7—12b-1 Plan of Distribution— Pursuant to a Rule 12b-1 Plan of Distribution (the “Plan”), 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 the Distributor for reimbursement of other actual promotion and distribution expenses incurred by the Distributor on behalf of the Funds. The amount paid under the Plan in any one year is limited to 0.25% of average daily net assets for Class A Shares and 1.00% of average daily net assets for Class C Shares, and is recorded as Distribution fees in the Statements of Operations.
Note 8—Shareholder Transactions—Shares of beneficial interest issued, reinvested and redeemed (unlimited number of $0.001 par value shares authorized):
CM Commodity Index Fund | Emerging Markets Bond Fund | |||||||||||||||
Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
Class A: | ||||||||||||||||
Shares sold | 2,843,787 | 4,510,600 | 505,830 | 102,514 | ||||||||||||
Shares reinvested | N/A | 850,526 | 27,072 | 59,131 | ||||||||||||
Shares redeemed | (1,563,561 | ) | (6,639,181 | ) | (61,135 | ) | (199,923 | ) | ||||||||
Net increase (decrease) | 1,280,226 | (1,278,055 | ) | 471,767 | (38,278 | ) | ||||||||||
Class I: | ||||||||||||||||
Shares sold | 8,081,905 | 18,038,213 | 4,752,930 | 34,142 | ||||||||||||
Shares reinvested | N/A | 4,853,419 | 88,933 | 49,145 | ||||||||||||
Shares redeemed | (9,835,976 | ) | (30,813,180 | ) | (171,903 | ) | (575,360 | ) | ||||||||
Net increase (decrease) | (1,754,071 | ) | (7,921,548 | ) | 4,669,960 | (492,073 | ) | |||||||||
Class Y: | ||||||||||||||||
Shares sold | 16,094,256 | 42,910,201 | 6,501,868 | 56,930 | ||||||||||||
Shares reinvested | N/A | 13,369,251 | 94,995 | 35,991 | ||||||||||||
Shares redeemed | (11,459,381 | ) | (52,204,850 | ) | (275,431 | ) | (245,107 | ) | ||||||||
Net increase (decrease) | 4,634,875 | 4,074,602 | 6,321,432 | (152,186 | ) |
75 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
Emerging Markets Fund | Emerging Markets Leaders Fund | |||||||||||||||
Period Ended June 30, 2023 | �� | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Period Ended December 31, 2022 | ||||||||||||
Class A: | ||||||||||||||||
Shares sold | 707,877 | 2,359,073 | N/A | 40,000 | ||||||||||||
Shares reinvested | N/A | 161,358 | N/A | 291 | ||||||||||||
Shares redeemed | (480,168 | ) | (5,213,246 | ) | N/A | N/A | ||||||||||
Net increase (decrease) | 227,709 | (2,692,815 | ) | N/A | 40,291 | |||||||||||
Class C: | ||||||||||||||||
Shares sold | 35,162 | 99,247 | N/A | N/A | ||||||||||||
Shares reinvested | N/A | 32,364 | N/A | N/A | ||||||||||||
Shares redeemed | (191,549 | ) | (690,783 | ) | N/A | N/A | ||||||||||
Net decrease | (156,387 | ) | (559,172 | ) | N/A | N/A | ||||||||||
Class I: | ||||||||||||||||
Shares sold | 946,479 | 5,063,622 | N/A | 80,000 | ||||||||||||
Shares reinvested | N/A | 1,076,940 | N/A | 1,007 | ||||||||||||
Shares redeemed | (4,614,572 | ) | (26,086,189 | ) | N/A | N/A | ||||||||||
Net increase (decrease) | (3,668,093 | ) | (19,945,627 | ) | N/A | 81,007 | ||||||||||
Class Y: | ||||||||||||||||
Shares sold | 4,109,112 | 18,584,481 | N/A | 80,000 | ||||||||||||
Shares reinvested | N/A | 1,015,855 | N/A | 936 | ||||||||||||
Shares redeemed | (8,299,838 | ) | (50,867,718 | ) | N/A | N/A | ||||||||||
Net increase (decrease) | (4,190,726 | ) | (31,267,382 | ) | N/A | 80,936 | ||||||||||
Class Z: | ||||||||||||||||
Shares sold | 573,828 | 3,810,153 | N/A | 40,000 | ||||||||||||
Shares reinvested | N/A | 65,175 | N/A | 539 | ||||||||||||
Shares redeemed | (630,912 | ) | (1,755,844 | ) | N/A | N/A | ||||||||||
Net increase (decrease) | (57,084 | ) | 2,119,484 | N/A | 40,539 | |||||||||||
Environmental Sustainability Fund | Global Resources Fund | |||||||||||||||
Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
Class A: | ||||||||||||||||
Shares sold | 21 | 4,017 | 140,379 | 797,985 | ||||||||||||
Shares reinvested | N/A | 572 | N/A | 71,837 | ||||||||||||
Shares redeemed | N/A | (1,886 | ) | (454,936 | ) | (1,357,182 | ) | |||||||||
Net increase (decrease) | 21 | 2,703 | (314,557 | ) | (487,360 | ) | ||||||||||
Class C: | ||||||||||||||||
Shares sold | N/A | N/A | 8,890 | 111,858 | ||||||||||||
Shares reinvested | N/A | N/A | N/A | 7,078 | ||||||||||||
Shares redeemed | N/A | N/A | (60,529 | ) | (151,880 | ) | ||||||||||
Net decrease | N/A | N/A | (51,639 | ) | (32,944 | ) | ||||||||||
Class I: | ||||||||||||||||
Shares sold | 1,803 | 3,462 | 1,422,284 | 4,414,516 | ||||||||||||
Shares reinvested | N/A | 1,508 | N/A | 187,646 | ||||||||||||
Shares redeemed | (792 | ) | (278 | ) | (2,880,157 | ) | (2,369,457 | ) | ||||||||
Net increase (decrease) | 1,011 | 4,692 | (1,457,873 | ) | 2,232,705 | |||||||||||
Class Y: | ||||||||||||||||
Shares sold | N/A | 1,056 | 848,145 | 3,678,908 | ||||||||||||
Shares reinvested | N/A | 1,255 | N/A | 150,475 | ||||||||||||
Shares redeemed | (372 | ) | (438 | ) | (1,926,957 | ) | (2,420,085 | ) | ||||||||
Net increase (decrease) | (372 | ) | 1,873 | (1,078,812 | ) | 1,409,298 |
76 |
International Investors Gold Fund | VanEck Morningstar Wide Moat Fund | |||||||||||||||
Period Ended June 30, 2023 | Year Ended December 31, 2022 | Period Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||||||
Class A: | ||||||||||||||||
Shares sold | 3,396,910 | 5,344,934 | N/A | N/A | ||||||||||||
Shares redeemed | (3,229,432 | ) | (7,254,119 | ) | N/A | N/A | ||||||||||
Net increase (decrease) | 167,478 | (1,909,185 | ) | N/A | N/A | |||||||||||
Class C: | ||||||||||||||||
Shares sold | 228,840 | 721,667 | N/A | N/A | ||||||||||||
Shares redeemed | (519,584 | ) | (1,581,591 | ) | N/A | N/A | ||||||||||
Net decrease | (290,744 | ) | (859,924 | ) | N/A | N/A | ||||||||||
Class I: | ||||||||||||||||
Shares sold | 906,766 | 5,262,895 | N/A | 102 | ||||||||||||
Shares reinvested | N/A | N/A | N/A | 12,004 | ||||||||||||
Shares redeemed | (1,304,200 | ) | (6,876,123 | ) | N/A | (50,212 | ) | |||||||||
Net decrease | (397,434 | ) | (1,613,228 | ) | N/A | (38,106 | ) | |||||||||
Class Y: | ||||||||||||||||
Shares sold | 4,713,855 | 12,831,492 | N/A | N/A | ||||||||||||
Shares redeemed | (3,470,980 | ) | (15,337,967 | ) | N/A | N/A | ||||||||||
Net increase (decrease) | 1,242,875 | (2,506,475 | ) | N/A | N/A | |||||||||||
Class Z: | ||||||||||||||||
Shares sold | N/A | N/A | 34,065 | 56,010 | ||||||||||||
Shares reinvested | N/A | N/A | N/A | 53,377 | ||||||||||||
Shares redeemed | N/A | N/A | (29,930 | ) | (32,334 | ) | ||||||||||
Net increase | N/A | N/A | 4,135 | 77,053 |
Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with the securities lending agent. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, cash equivalents, U.S. government securities, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled on the next business day. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and or earning interest on the investment of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. Securities lending income is disclosed as such in the Statements of Operations. Cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral consists of U.S. Treasuries and U.S. Government Agency securities, and is not disclosed in the Funds’ Schedules of Investments or Statements of Assets and Liabilities as it is held by the agent on behalf of the Funds. The Funds do not have the ability to re-hypothecate those securities. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the Fund securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The value of loaned securities and related cash collateral, if any, at June 30, 2023, is presented on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities. The following is a summary of the Funds’ securities on loan and related collateral as of June 30, 2023:
Fund | Market Value of Securities on Loan | Cash Collateral | Non-Cash Collateral | Total Collateral | ||||||||||||
CM Commodity Index Fund | $ | 41,803,383 | $ | 6,024 | $ | 42,650,407 | $ | 42,656,431 | ||||||||
Emerging Markets Fund | 8,260,996 | 4,435,916 | 4,226,352 | 8,662,268 |
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VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(unaudited) (continued)
Fund | Market Value of Securities on Loan | Cash Collateral | Non-Cash Collateral | Total Collateral | ||||||||||||
Environmental Sustainability Fund | 520,870 | 320,593 | 213,051 | 533,644 | ||||||||||||
Global Resources Fund | 78,969,687 | 14,618,467 | 66,312,072 | 80,930,539 | ||||||||||||
International Investors Gold Fund | 9,296,987 | 134,915 | 9,311,218 | 9,446,133 |
The following table presents money market fund investments held as collateral by type of security on loan as of June 30, 2023:
Gross Amount of Recognized Liabilities for Securities Lending Transactions* in the Statements of Assets and Liabilities | ||||||||
Fund | Government Obligations | Equity Securities | ||||||
CM Commodity Index Fund | $ | 6,024 | $ | – | ||||
Emerging Markets Fund | – | 4,435,916 | ||||||
Environmental Sustainability Fund | – | 320,593 | ||||||
Global Resources Fund | – | 14,618,467 | ||||||
International Investors Gold Fund | – | 134,915 |
* | Remaining contractual maturity: overnight and continuous |
Note 10—Bank Line of Credit—The Trust participates with VanEck VIP Trust (another registered investment company managed by Adviser) (the “VE/VIP Funds”) in a $30 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 participating Funds and other temporary or emergency purposes. The participating VE/VIP Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the participating VE/VIP Funds at rates based on prevailing market rates in effect at the time of borrowings. During the period ending in June 30, 2023, the following Funds borrowed under this Facility:
Fund | Days Outstanding | Average Daily Loan Balance | Average Interest Rate | |||
Emerging Markets Bond Fund | 3 | $79,670 | 5.68% | |||
Emerging Markets Fund | 47 | 7,103,941 | 6.06 | |||
Global Resources Fund | 4 | 966,257 | 6.43 | |||
VanEck Morningstar Wide Moat Fund | 2 | 292,266 | 5.68 |
Outstanding loan balances as of June 30, 2023, if any, are reflected in the Statements of Assets and Liabilities.
Note 11—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Deferred Plan”) for Trustees under which a Trustee can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of eligible Funds of the Trust, or other registered investment companies managed by the Adviser, which include VanEck ETF Trust and VanEck VIP Trust, as directed by the Trustees.
The expense of the Deferred Plan is included in “Trustees’ fees and expenses” on the Statements of Operations. The liability for the Deferred Plan is shown as “Deferred Trustees’ fees” in the Statements of Assets and Liabilities.
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VANECK FUNDS
APPROVAL OF ADVISORY AGREEMENTS
June 30, 2023 (unaudited)
CM COMMODITY INDEX FUND
EMERGING MARKETS BOND FUND
EMERGING MARKETS FUND
EMERGING MARKETS LEADERS FUND
ENVIRONMENTAL SUSTAINABILITY FUND
GLOBAL RESOURCES FUND
INTERNATIONAL INVESTORS GOLD FUND
VANECK MORNINGSTAR WIDE MOAT FUND
(each, a “Fund”)
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that an investment advisory agreement between a fund and its investment adviser may continue in effect from year to year only if its continuance is approved, at least annually by the fund’s board of trustees, including by a vote of a majority of the trustees who are not “interested persons” of the fund as defined in the 1940 Act (the “Independent Trustees”), at a meeting called for the purpose of considering such approval. On June 23, 2023, the Board of Trustees (the “Board”) of VanEck Funds (the “Trust”), including a majority of the Independent Trustees, approved the continuation of the existing advisory agreement (each, an “Advisory Agreement”) between each Fund, except the CM Commodity Index Fund, and its investment adviser, Van Eck Associates Corporation and the CM Commodity Index Fund, and its investment adviser, Van Eck Absolute Return Advisers Corporation (Van Eck Associates Corporation and Van Eck Absolute Return Advisers Corporation, along with their affiliated companies, are referred to herein collectively as the “Adviser”). Information regarding the material factors considered and related conclusions reached by the Board in approving the continuation of each Fund’s Advisory Agreement is set forth below.
In considering the continuation of each Advisory Agreement, the Board reviewed and considered information that had been provided by the Adviser throughout the year at meetings of the Board and its committees, including information requested by the Independent Trustees and furnished by the Adviser for meetings of the Board held on June 2, 2023 and June 23, 2023, specifically for the purpose of considering the continuation of the Advisory Agreement. Although the Advisory Agreements for the Funds were considered at the same Board meetings, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate. The Independent Trustees were advised by independent legal counsel throughout the year, including during the contract renewal process, and met with independent legal counsel in executive sessions outside the presence of management. The written and oral reports provided to the Board pertaining to the continuation of the Advisory Agreement included, among other things, the following:
■ | Information about the overall organization of the Adviser and the Adviser’s short-term and long-term business plans with respect to its mutual fund operations and other lines of business; |
■ | The consolidated financial statements of the Adviser for the past two fiscal years; |
■ | A copy of each Advisory Agreement and descriptions of the services provided by the Adviser thereunder; |
■ | Information regarding the qualifications, education and experience of the investment professionals responsible for portfolio management, as well as relevant staffing plans for such personnel, investment research and trading activities for each Fund, the structure of their compensation and the resources available to support these activities; |
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VANECK FUNDS
APPROVAL OF ADVISORY AGREEMENTS
June 30, 2023 (unaudited) (continued)
■ | A report prepared by Broadridge Financial Solutions (“Broadridge”), an independent consultant, comparing the Fund’s investment performance net of expenses for a representative class of shares (including, where relevant, total returns, standard deviations, Sharpe ratios, information ratios, beta and alpha) for the one-, three-, five- and ten-year periods (as applicable) ended December 31, 2022 with the investment performance of (i) a universe of mutual funds selected by Broadridge with similar investment characteristics (the “Morningstar Category”), (ii) a sub-group of funds selected from the Morningstar Category by Broadridge further limited to approximate more closely the Fund’s investment style, share class characteristics, and asset levels (the “Peer Group”) and (iii) an appropriate benchmark index; |
■ | A report prepared by Broadridge comparing the advisory fees and other expenses of a representative class of shares of the Fund during its fiscal year ended December 31, 2022 with (i) the Morningstar Category and (ii) Peer Group; |
■ | An analysis of the profitability of the Adviser with respect to its services for each Fund and the VanEck complex of mutual funds as a whole (the “VanEck Complex”); |
■ | Information regarding other investment products and services offered by the Adviser involving investment objectives and strategies similar to each Fund (“Comparable Products”), including the fees charged by the Adviser for managing the Comparable Products, a description of material differences and similarities in the services provided by the Adviser for each Fund and the Comparable Products, the sizes of the Comparable Products and the identity of the individuals responsible for managing the Comparable Products, except with respect to the CM Commodity Index Fund, the Emerging Markets Leaders Fund, and the Environmental Sustainability Fund, for which there are no Comparable Products; |
■ | Information concerning the Adviser’s compliance program and resources; |
■ | Information with respect to the Adviser’s brokerage practices, including regarding the use of soft dollars in the case of Funds for which their portfolio trades entailed soft dollars; |
■ | Information regarding the procedures used by the Adviser in monitoring the valuation of portfolio securities; |
■ | Information regarding how the Adviser safeguards the confidentiality and integrity of its data and files, cybersecurity, overall business continuity and other operational matters; |
■ | Information regarding the Adviser’s policies and practices with respect to personal investing by the Adviser and its employees; |
■ | Information regarding the Adviser’s investment process for each Fund, including how the Adviser integrates non-accounting based information (including, but not limited to “environmental, social and governance” factors) and the non-security selection, non-portfolio construction activities of the investment teams, such as engagement with portfolio companies and industry group participation, except with respect to the CM Commodity Index Fund and the VanEck Morningstar Wide Moat Fund, which are quantitatively-based index strategies; |
■ | Information regarding the Adviser’s role as the administrator of the Trust’s liquidity risk management program; |
■ | Information about shareholder servicing arrangements for each Fund with various intermediaries, as well as revenue sharing arrangements involving the Adviser and not paid by the Fund; |
■ | Descriptions of other administrative and other non-investment management services provided by the Adviser for each Fund, including the Adviser’s activities in managing relationships with the Fund’s custodian, transfer agent and other service providers; and |
■ | Other information provided by the Adviser in its response to a comprehensive questionnaire from the Independent Trustees. |
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Nature, Extent, Quality of Services. In determining whether to approve the continuation of each Advisory Agreement, the Board considered, among other things, the following: (1) the nature, quality, extent and cost of the investment management, administrative and other non-investment management services provided by the Adviser; (2) the nature, quality and extent of the services performed by the Adviser in interfacing with, and monitoring the services performed by, third parties, such as the Fund’s custodian, transfer agent, sub-transfer agents and independent auditor, and the Adviser’s commitment and efforts to review the quality and pricing of third party service providers to the Fund with a view to reducing non-management expenses of the Fund; (3) the terms of the Advisory Agreement and the services performed thereunder; (4) the willingness of the Adviser to limit the overall expenses of the Fund from time to time, if necessary or appropriate, by means of waiving all or a portion of its fees and/or paying expenses of the Fund; (5) the quality of the services, procedures and processes used to determine the value of the Fund’s assets and the actions taken to monitor and test the effectiveness of such services, procedures and processes; (6) the ongoing efforts of, and resources devoted by, the Adviser with respect to the development and implementation of a comprehensive compliance program; (7) the responsiveness of the Adviser to inquiries from, and examinations by, regulatory authorities, including the Securities and Exchange Commission; (8) the resources committed by the Adviser to information technology and cybersecurity; and (9) the ability of the Adviser to attract and retain quality professional personnel to perform investment advisory and administrative services for the Fund. The Board concluded that the nature, extent and quality of the services provided by the Adviser supported the renewal of each Advisory Agreement.
Investment Performance and Fund Expenses. The performance data and the advisory fee and expense ratio data from Broadridge that is described below for each Fund is based on data for a representative class of shares of each Fund. The performance data is net of expenses for periods on an annualized basis ended December 31, 2022, and the advisory fee and expense ratio data is as of the Funds’ fiscal year end of December 31, 2022. The Board found the data provided by Broadridge generally useful, but it recognized the limitations of such data, including, in particular, that notable differences may exist between each Fund and the other funds in the Funds’ Peer Group and Morningstar Category (for example, with respect to investment objective(s) and investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the Peer Group and Morningstar Category. The Board also considered the Funds’ performance at its meetings throughout the year, including for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser’s assessment of the same. The Board also considered benefits, other than the receipt of fees under the Advisory Agreement, that may be derived by the Adviser from serving as investment adviser to the Fund and the Trust.
CM Commodity Index Fund. The Board noted that the Fund seeks to track, before fees and expenses, the performance of the UBS Constant Maturity Commodity Total Return Index (the “UBS Index”) and that the Class Y shares of the Fund had underperformed the UBS Index for the one-, three-, five-, and ten-year periods. The Board further noted that the Fund’s expenses, which were not similarly borne by the UBS Index, were one of the factors that attributed to the Fund’s underperformance relative to the UBS Index. The Board also noted that the Class Y shares of the Fund had outperformed its Peer Group and Morningstar Category medians for the one-, three-, five-, and ten-year periods. The Board concluded that the performance of the Fund supported the renewal of the Advisory Agreement.
The Board considered that it had approved an amendment to the Fund’s Advisory Agreement to reduce the Fund’s management fee on December 29, 2022. The Board noted that the fee rate payable for advisory services was higher than the median advisory fee rate for the Fund’s Morningstar Category, both before and after the fee reduction, and the same as the median advisory fee rate for the Fund’s Peer Group prior to the fee reduction, and lower than the median advisory fee rate for the Fund’s Peer Group after the fee reduction. The Board also noted that the Fund’s total expense ratio, net of waivers or reimbursements was lower than the median total expense ratios of the Fund’s Morningstar Category and Peer Group. The Board further noted that the Adviser has agreed to waive all or a portion of its advisory fees and/or pay expenses of the Fund through April 30, 2024 to the extent necessary to prevent the expense ratio of the Fund from exceeding a specified maximum amount (subject to certain exclusions).
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VANECK FUNDS
APPROVAL OF ADVISORY AGREEMENTS
June 30, 2023 (unaudited) (continued)
On the basis of the foregoing, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the advisory fee rate charged to the Fund is reasonable.
Emerging Markets Bond Fund. The Board noted, based on a review of comparative annualized total returns, that the Class Y shares of the Fund had outperformed the median of its Peer Group for the one-, three-, five-, and ten-year periods. The Board also noted that the Class Y shares of the Fund had outperformed the median of its Morningstar Category for the one-, three-, and five-year periods and underperformed the median of its Morningstar Category for the ten-year period. The Board also noted that the Class Y shares of the Fund had outperformed its benchmark index for the one-, three-, five-, and ten-year periods. The Board concluded that the performance of the Fund supported the renewal of the Advisory Agreement.
The Board noted that the fee rate payable for advisory services and the total expense ratio, net of waivers or reimbursements, were higher than the median advisory fee rates and total expense ratios of the Fund’s Morningstar Category and Peer Group. The Board also noted that the Adviser makes use of a complex and unique proprietary strategy for managing the Fund’s portfolio and that the Adviser has agreed to waive all or a portion of its advisory fees and/or pay expenses of the Fund through April 30, 2024 to the extent necessary to prevent the expense ratio of the Fund from exceeding a specified maximum amount (subject to certain exclusions). The Board also considered the advisory fee charged to the Fund as compared to the fees charged to the Comparable Products, noting the differences in the services provided to the Fund as compared to those other products.
On the basis of the foregoing, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the advisory fee rate charged to the Fund is reasonable.
Emerging Markets Fund. The Board noted, based on a review of comparative annualized total returns, that the Class Y shares of the Fund had the same performance as the median of its Peer Group for the one- and ten-year periods and underperformed the median of its Peer Group for the three- and five-year periods. The Board also noted that the Class Y shares of the Fund had underperformed the Morningstar Category median for the one-, three-, five-, and ten-year periods. The Board further noted that the Class Y shares of the Fund had underperformed its benchmark index for the one-, three-, five-, and ten-year periods. In agreeing to renew the Advisory Agreement, the Board acknowledged that performance information and considered it, and other relevant information provided in response to inquiries by the Board.
The Board noted that the Fund pays an advisory fee, as well as a separate administrative fee. The Board further noted that the fee rate payable for advisory services was lower than the median advisory fee rates of its Morningstar Category and Peer Group. The Board also noted that the Fund’s total expense ratio, net of waivers or reimbursements, was higher than the median of its Morningstar Category and lower than the median total expense ratio of its Peer Group. The Board further noted that the Adviser has agreed to waive all or a portion of its advisory fees and/or pay expenses of the Fund through April 30, 2024 to the extent necessary to prevent the expense ratio of the Fund from exceeding a specified maximum amount (subject to certain exclusions). The Board also considered the advisory fee charged to the Fund as compared to the fees charged to the Comparable Products, noting the differences in the services provided to the Fund as compared to those other products.
On the basis of the foregoing, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the advisory fee rate charged to the Fund is reasonable.
Emerging Markets Leaders Fund. The advisory fee and expense ratio data from Broadridge that is described below for the Fund is based on data for a representative class of shares of the Fund. The advisory fee and expense ratio data is as of the Fund’s fiscal year end of December 31, 2022. The Board noted that the Fund has not been in operation for a full fiscal year, and as such did not have Broadridge performance data to report. The Board considered the Fund’s performance for the periods since the Fund’s inception and considered the Adviser’s assessment of the same. The Board also considered benefits, other than the receipt of fees under the Advisory Agreement, that may be derived by the Adviser from serving as investment adviser to the Fund and the Trust.
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In considering the Fund’s advisory fee, the Board noted that the fee rate payable for advisory services and the total expense ratio, net of waivers or reimbursements, were lower than the median advisory fee rates and total expense ratios of the Fund’s Peer Group and Morningstar Category. The Board also noted that the Adviser has agreed to waive all or a portion of its advisory fees and/or pay expenses of the Fund through April 30, 2024 to the extent necessary to prevent the expense ratio of the Fund from exceeding a specified maximum amount (subject to certain exclusions).
On the basis of the foregoing, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the advisory fee rate charged to the Fund is reasonable.
Environmental Sustainability Fund. The Board noted, based on a review of comparative annualized total returns, that the Class Y shares of the Fund had outperformed the median of its Morningstar Category for the one-year period and underperformed the median of its Peer Group for the one-year period. The Board also noted that the Class Y shares of the Fund had underperformed its benchmark index for the one-year period. The Board concluded that the performance of the Fund supported the renewal of the Advisory Agreement.
The Board noted that the fee rate payable for advisory services was the same as the median advisory fee rate of the Fund’s Peer Group and lower than the median of the fee rate of the Fund’s Morningstar Category. The Board noted that the Fund’s total expense ratio, net of waivers or reimbursements, was lower than the median of the Fund’s Morningstar Category and higher than the median of the Fund’s Peer Group. The Board also noted that the Adviser has agreed to waive all or a portion of its advisory fees and/or pay expenses of the Fund through April 30, 2024 to the extent necessary to prevent the expense ratio of the Fund from exceeding a specified maximum amount (subject to certain exclusions).
On the basis of the foregoing, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the advisory fee rate charged to the Fund is reasonable.
Global Resources Fund. The Board noted, based on a review of comparative annualized total returns, that the Class Y shares of the Fund had underperformed its Peer Group median for the one-, three-, five-, and ten-year periods. The Board noted that the Class Y shares of the Fund had underperformed its Morningstar Category median for the one-, five-, and ten-year periods and outperformed its Morningstar Category median for the three-year period. The Board noted that the Fund changed its primary benchmark index on May 1, 2023 and that the Class Y shares of the Fund had underperformed that primary benchmark index and the previous primary benchmark index for the one-, five-, and ten-year periods and outperformed both indices for the three-year period. The Board concluded that the performance of the Fund supported the renewal of the Advisory Agreement.
The Board noted that the fee rate payable for advisory services and the total expense ratio, net of waivers or reimbursements, were higher than the median advisory fee rates and total expense ratios of the Fund’s Morningstar Category and Peer Group. The Board also noted that the Adviser makes use of a complex and unique proprietary strategy for managing the Fund’s portfolio and that the Adviser has agreed to waive all or a portion of its advisory fees and/or pay expenses of the Fund through April 30, 2024 to the extent necessary to prevent the expense ratio of the Fund from exceeding a specified maximum amount (subject to certain exclusions). The Board also considered the advisory fee charged to the Fund as compared to the fees charged to the Comparable Products, noting the differences in the services provided to the Fund as compared to those other products.
The Board considered the extent to which the Adviser currently waives management fees and/or reimburses the Fund for other Fund-level expenses at different rates for different share classes (“Differential Fee Waiver”), including the basis for the Adviser’s determination that any Differential Fee Waiver does not and will not result in any cross-subsidization by one share class of another share class.
On the basis of the foregoing, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the advisory fee rate charged to the Fund is reasonable.
83 |
VANECK FUNDS
APPROVAL OF ADVISORY AGREEMENTS
June 30, 2023 (unaudited) (continued)
International Investors Gold Fund. The Board noted, based on a review of comparative annualized total returns, that the Class Y shares of the Fund had underperformed its Morningstar Category median and Peer Group median for the one- and five-year periods and outperformed its Morningstar Category median and Peer Group median for the three- and ten-year periods. The Board also noted that the Class Y shares of the Fund had underperformed its benchmark index for the one- and five-year periods and had outperformed its benchmark index for the three- and ten-year periods. The Board concluded that the performance of the Fund supported the renewal of the Advisory Agreement.
The Board also noted that the Fund pays an advisory fee, as well as a separate administrative fee. The Board further noted that the fee rate payable for advisory services was lower than the median advisory fee rate of its Peer Group and higher than the median advisory fee rate of its Morningstar Category. The Board noted that the Fund’s total expense ratio, net of waivers or reimbursements, was higher than the median total expense ratio of its Morningstar Category and Peer Group. The Board further noted that the Adviser has agreed to waive all or a portion of its advisory fees and/or pay expenses of the Fund through April 30, 2024 to the extent necessary to prevent the expense ratio of the Fund from exceeding a specified maximum amount (subject to certain exclusions). The Board also considered the advisory fee charged to the Fund as compared to the fees charged to the Comparable Products, noting the differences in the services provided to the Fund as compared to those other products.
On the basis of the foregoing, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the advisory fee rate charged to the Fund is reasonable.
VanEck Morningstar Wide Moat Fund. The Board noted that the Fund seeks to track, before fees and expenses, the price and yield performance of the Morningstar Wide Moat Focus Index (the “Morningstar Index”). The Board noted that the Class Z shares of the Fund had outperformed the medians of its Morningstar Category and Peer Group for the one- and five-year periods and underperformed its Morningstar Category and Peer Group medians for the three-year period. The Board also noted that the Class Z shares of the Fund had underperformed the Morningstar Index for the one-, three- and five-year periods. The Board further noted that the Fund’s expenses, which were not similarly borne by the Morningstar Index, were one of the factors that attributed to the Fund’s underperformance relative to the Morningstar Index. The Board concluded that the performance of the Fund supported the renewal of the Advisory Agreement.
The Board noted that the fee rate payable for advisory services and the total expense ratio, net of waivers or reimbursements, for the Fund were higher than the median advisory fee rates and total expense ratios of the Fund’s Morningstar Category and Peer Group. The Board also noted that the Adviser has agreed to waive all or a portion of its advisory fees and/or pay expenses of the Fund through April 30, 2024 to the extent necessary to prevent the expense ratio of the Fund from exceeding a specified maximum amount (subject to certain exclusions). The Board also considered the advisory fee charged to the Fund as compared to the fees charged to the Comparable Products, noting the differences in the services provided to the Fund as compared to those other products.
On the basis of the foregoing, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the advisory fee rate charged to the Fund is reasonable.
Profitability and Economies of Scale. The Board considered the profits, if any, realized by the Adviser from managing each Fund and other mutual funds in the VanEck Complex and the methodology used to determine such profits. The Board noted that the levels of profitability reported on a fund-by-fund basis varied widely depending on such factors as the size, type of fund and operating history. Based on its review of the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the profits realized by the Adviser from managing each Fund supported the renewal of the respective Advisory Agreement. In this regard, the Board also considered the extent to which the Adviser may realize economies of scale, if any, as each Fund grows and whether each Fund’s fee schedule reflects any economies of scale for the benefit of shareholders, and concluded that each fee schedule was appropriate. The Board also considered that each Fund benefits from economies of scale
84 |
through lower fees charged by third party service providers based on the combined size of the VanEck Complex.
Conclusion. In determining the material factors to be considered in evaluating the Advisory Agreement for each Fund and the weight to be given to such factors, the members of the Board relied upon their own business judgment, with the advice of independent legal counsel. The Board did not consider any single factor as controlling in determining whether to approve the continuation of each Advisory Agreement and each member of the Board may have placed varying emphasis on particular factors in reaching a conclusion. Moreover, this summary description does not necessarily identify all of the factors considered or conclusions reached by the Board. Based on its consideration of the foregoing factors and conclusions, and such other factors and conclusions as it deemed relevant, the Board unanimously approved the continuation of the Advisory Agreement for each Fund for an additional one-year period.
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VANECK FUNDS
FUNDS’ LIQUIDITY RISK MANAGEMENT PROGRAM
(unaudited)
In accordance with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Funds have adopted and implemented a Liquidity Risk Management Program, (the “Program”) and the Funds’ Board has designated each Fund’s Adviser as the administrator of the Program. Each Fund’s Adviser administers the Program through its Liquidity Committee. The purpose of the Program is to outline the techniques, tools and arrangements employed for the management of liquidity risk within the Funds, and the terms, contents and frequency of reporting and escalation of any issues to the Board. The Liquidity Rule defines liquidity risk as the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interests in the fund. Liquidity is managed taking account of the investment strategy, liquidity profile, and redemption policy and history of the Funds, with the objective of maintaining a level of liquidity that is appropriate in light of each Fund’s obligations to its shareholders. The Program assesses liquidity risk under both normal and stressed market conditions.
The Board reviewed a report (the “Report”) prepared by each Fund’s Adviser regarding the operation and effectiveness of the Program for the period January 1, 2022 to December 31, 2022 (the “Review Period”). The Report noted that during the Review Period, the Funds maintained a high level of liquidity and primarily held assets that are defined under the Liquidity Rule as “Highly Liquid Investments.” The Report noted the effectiveness of the Funds’ liquidity risk management during such time. As a result, the Funds have not adopted a “Highly Liquid Investment Minimum,” as defined under the Liquidity Rule. A Highly Liquid Investment is defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
During the Review Period, there were no liquidity events that materially affected the performance of the Funds or their ability to timely meet redemptions without dilution to existing shareholders, and each Fund’s Adviser provided its assessment that the program had been effective in managing each fund’s liquidity risk. Further information on liquidity risks applicable to the Fund can be found in each Fund’s prospectus.
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This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the Fund’s prospectus, which includes more complete information. Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, and charges and expenses of the Fund carefully before investing. To obtain a prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus carefully before investing.
Additional information about the VanEck Funds (the “Trust”) Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 800.826.2333, or by visiting vaneck.com, or on the Securities and Exchange Commission’s website at https://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Form N-PORT filings are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 800.826.2333 or by visiting vaneck.com.
Investment Adviser: | VanEck Associates Corporation | |
Distributor: | VanEck Securities Corporation | |
666 Third Avenue, New York, NY 10017 | ||
vaneck.com | ||
Account Assistance: | 800.544.4653 | VEFUNDSSAR |
Item 2. | CODE OF ETHICS. |
Not applicable.
Item 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
Item 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
Item 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
Item 6. | SCHEDULE OF INVESTMENTS. |
Information included in Item 1.
Item 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
Item 8. | PORTFOLIO MANAGER OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
Item 9. | PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
Item 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
Not applicable.
Item 11. | CONTROLS AND PROCEDURES. |
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c)) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
(a) | Not applicable. |
(b) | Not applicable. |
Item 13. | EXHIBITS. |
(a)(1) | Not applicable. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) VANECK FUNDS
By (Signature and Title) | /s/ John J. Crimmins, Treasurer & Chief Financial Officer |
Date September 6, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Jan F. van Eck, Chief Executive Officer |
Date September 6, 2023
By (Signature and Title) | /s/ John J. Crimmins, Treasurer & Chief Financial Officer |
Date September 6, 2023