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: DECEMBER 31, 2023
| Item 1. | Reports to Shareholders |
 |
ANNUAL REPORT December 31, 2023 |
VanEck Funds
CM Commodity Index Fund
Emerging Markets Bond Fund
Emerging Markets 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 report 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. The information contained herein regarding each index has been provided by the relevant index provider. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings, the Funds’ performance, and the views of the investment adviser are as of December 31, 2023.
(unaudited)
| FACTS | WHAT
DOES VANECK DO WITH YOUR PERSONAL INFORMATION? |
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: ■ Social Security number and account balances ■ assets and payment history ■ risk tolerance and transaction history |
| How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons VanEck chooses to share; and whether you can limit this sharing. |
| Reasons we can share your personal information | Does VanEck share? | Can you limit this sharing? | |
| For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No | |
| For our marketing purposes— to offer our products and services to you | Yes | No | |
| For joint marketing with other financial companies | Yes | No | |
| For our affiliates’ everyday business purposes— information about your transactions and experiences | Yes | No | |
| For our affiliates’ everyday business purposes— information about your creditworthiness | No | We don’t share | |
| For our affiliates to market to you | Yes | Yes | |
| For our nonaffiliates to market to you | No | We don’t share | |
| To
limit our sharing |
Call us at 1-800-826-2333.
Please note:
If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
|
| Questions? | Call us at 1-800-826-2333. |
| Who we are | |
| Who is providing this notice? | Van Eck Associates Corporation (“VEAC”), Van Eck Absolute Return Advisers Corporation (“VEARA”) and Van Eck Securities Corporation, and funds sponsored by VEAC or VEARA (collectively, “VanEck”). |
| What we do | |
| How does VanEck protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. |
| How does VanEck collect my personal information? | We collect your personal information, for example, when you ■ open an account or give us your income information ■ provide employment information or give us your contact information ■ tell us about your investment or retirement portfolio We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
| Why can’t I limit all sharing? | Federal law gives you the right to limit only ■ sharing for affiliates’ everyday business purposes—information about your creditworthiness ■ affiliates from using your information to market to you ■ sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |
| What happens when I limit sharing for an account I hold jointly with someone else? | Your choices will apply to everyone on your account—unless you tell us. |
| Definitions | |
| Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. ■ Our affiliates include companies with a VanEck name such as Van Eck Securities Corporation and others such as MarketVector Indexes GmbH. |
| Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. ■ VanEck does not share with nonaffiliates so they can market to you. |
| Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ■ Our joint marketing partners include financial services companies. |
| 1 |
PRIVACY NOTICE
(unaudited) (continued)
| Other important information |
California Residents— In accordance with California law, we will not share information we collect about California residents with nonaffiliates except as permitted by law, such as with the consent of the customer or to service the customer’s accounts. We also will limit the sharing of information about you with our affiliates to the extent required by applicable California law.
Vermont Residents—In accordance with Vermont law, we will not share information we collect about Vermont residents with nonaffiliates except as permitted by law, such as with the consent of the customer or to service the customer’s accounts. We will not share creditworthiness information about Vermont residents among VanEck’s affiliates except with the authorization or consent of the Vermont resident. |
| 2 |
VANECK FUNDS
December 31, 2023 (unaudited)
Dear Fellow Shareholders:
Our outlook for financial markets in 2023 was “sideways” and “40/60” or overweight bonds. This strategy worked well until November 2023, when the market suddenly rallied aggressively and priced in U.S. Federal Reserve (“Fed”) interest rate cuts which were to happen in 2024. It is one of the wonders of the market that it can price in its view of the future so quickly.
In this sense, it could be that 2024 has already happened. One could imagine that the three major factors—monetary policy, government spending and global economic growth—will not change much in 2024.
So, let’s review those three major forces on markets and some risks and trends worth noting.
Discussion
| 1. | Monetary Policy: Not Very Stimulative |
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.
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 under $7.8 trillion toward the end of December 2023.1
Our favorite inflation is wage inflation, not food or gas prices. That is the kind of inflation which is endemic and hard to manage once it takes hold. And wage inflation is above 4%, not near the Fed’s 2% target, so we don’t see a big Fed stimulus. And the silent Fed action of reducing its bond holdings (“quantitative tightening”), continues.
| 2. | Government Spending: Also Muted |
A second bearish factor is that government spending is unlikely to increase next year. The Republicans, in control of the House of Representatives, continue to look to slow government spending. While we probably didn’t sufficiently appreciate the amount of some of the Biden Administration’s spending, like with the environmental Inflation Reduction Act (“IRA”), any such upside surprises are very unlikely in 2024.
| 3. | Global Growth is at Low Levels |
Over the last 20 years, the U.S. and China have been the two main pillars of global growth. But while there are bright spots, China is remarkable now for its economic weakness. The property market recession has helped pull Chinese prices lower year over year and that deflationary force affects the world economy. Other centers of growth like India, Indonesia and Africa are not big enough yet to drive global growth.
Notable
| 1. | Bonds |
While interest rates whipsawed investors in 2023 with a net positive result, our outlook favoring bonds hasn’t changed, which is that they offer attractive risk-adjusted returns compared to equities, given the headwinds discussed above. Now, after the 2022 and 2023 losses, bond investments are offering attractive yields, this has been our favorite asset class to buy and remains our preference. (See What to Buy? Bonds. When? Now.2) As a reference, bonds offered attractive total returns in the 1970s even though that decade was the worst for interest rates in the last 100 years.
| 3 |
VANECK FUNDS
PRESIDENT’S LETTER
(unaudited) (continued)
| 2. | Yield Curve |
We like to look for market distortions and the most notable one is “yield curve inversion”—long-term interest rates lower than short-term rates. If, and it’s a big “if”, government entities like the Fed are stepping back from the bond markets, then it makes sense for long-term rates to be higher because with greater risk should come greater return. Yield curve inversion is present only about 10% of the time. It’s unusual.
| 3. | India/Emerging Markets |
With the new-found ubiquity and affordability of mobile phones in India, the Internet sector there is well primed to do as well as it has in the U.S., China and other major markets. Digital India seems like a good tactical play, despite higher price/earnings ratios. Emerging markets in general have lagged for so many years that most investors have given up. So many, that 2024 may be their year.
| 4. | Stores of Value/Real Assets |
In March 2023, I “pounded the table” on gold and Bitcoin in a CNBC interview. While those assets have rallied hard since then—again, the market likes to anticipate!—I don’t think this trend is over.
| 5. | Value stocks |
Growth stocks had a shockingly good 2023. Stocks in banks and financials have been beaten up. They are definitely worth a close look. This outlook is discussed in a recent podcast, The Compound & Friends,3 Episode 113, released on October 13, 2023.
We thank you for investing in VanEck’s investment strategies. On the following pages, you will find a performance discussion and financial statements for each of the funds for the 12 month period ended December 31, 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
January 18, 2024
PS The investing outlook can change suddenly. To get our quarterly investment outlooks, please subscribe to “VanEck News & Insights”.4 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, December 28, 2023, https://www.federalreserve.gov/releases/h41/20231228/ |
| 2 | VanEck: 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 | The Compound & Friends, https://podcasts.apple.com/us/podcast/the-new-kings-of-wall-street/id1456467014?i=1000631190860 |
| 4 | VanEck: https://www.vaneck.com/us/en/subscribe/ |
| 4 |
December 31, 2023 (unaudited)
Summary of the Fund’s Investment Objective and Strategy
The CM Commodity Index Fund (the “Fund”) is a passively-managed mutual fund that seeks to track the UBS Constant Maturity Commodity Total Return Index (the “CMCITR” or “the Index”1).
The CMCITR is a next-generation commodity index diversified across maturities, minimizing its exposure to the front end of the futures curves. By spreading its exposure across multiple maturities and maintaining a constant maturity per commodity, the CMCITR seeks to mitigate the impacts of negative roll yield in contango environments. Diversified across five commodity sectors and 26 commodity components, the Index’s energy allocation is typically around 33%. In contrast with many “enhanced” commodity funds, the Fund offers “pure” commodity exposure by investing in commodity-linked derivative instruments and more conservative fixed income securities, such as U.S. Treasury Bills.
During the 12 month period ended December 31, 2023 (the “Period”), the Fund continued to utilize commodity index-linked swaps as an effective means of gaining exposure to the Index. While there are costs associated with the use of swaps, we continue to believe it is the most effective way of replicating CMCITR’s commodity exposures and weights.
Performance Overview
The Fund lost 2.87% (Class A shares, excluding sales charge) for the Period. The Fund underperformed the Index by 1.46%, which posted a loss of 1.41%.
Over the Period, CMCITR lost 1.41%, outperforming both the Bloomberg Commodity Index (the “BCOM”),2 which lost 7.91% and the S&P® GSCI Index (“SPGSCI”),3 which lost 4.27%. CMCITR’s performance relative to both BCOM and SPGSCI was driven largely by lower exposure to the energy sector.
Two (agriculture and precious metals) out of five sectors represented in the CMCITR contributed positive returns over the Period, with the agriculture sector contributing the most to performance. Of the negatively performing sectors, energy detracted the most and livestock the least.
Market Review
2023 was a down year for commodity index products in general, but the CMCITR outperformed the BCOM by a wide margin. The CMCITR was down 1.41%, while the BCOM was down 7.91%. CMCITR’s roll methodology, monthly rebalancing and commodity weightings all contributed to the outperformance in 2023.
There were two important factors that helped offset the overall decline in commodities last year: continued positive roll yield and positive returns on collateral. The Fund continues to invest collateral in 3 and 6-month U.S. Treasury Bills which yielded over 5% for most of the year. The CMCITR’s constant maturity roll methodology generated slightly positive roll yields, while the BCOM had slightly negative roll yields.
Most of the roll outperformance came from the energy sector. The WTI and Brent crude oil forward curves were upward sloping (contango) in the first three months of the year and downward sloping (backwardation) from three months to three years. The CMCITR’s curve positioning from three months out to three years generated positive roll yield, while the BCOM lost money rolling it’s front month crude oil position. Positioning in the energy sector also helped the CMCITR’s relative performance vs the BCOM. The CMCITR uses commodity consumption in its weighting methodology, which results in a smaller U.S. natural gas allocation. U.S. natural gas fell sharply last year, declining by nearly 52%. Commodity weightings also helped the CMCITR’s relative outperformance in the agriculture sector. Cocoa and sugar were the best performers in the agriculture sector. London cocoa was up over 106% and sugar was up over 30%. The BCOM was not invested in cocoa and had a smaller investment in sugar. Lastly the CMCITR’s monthly rebalancing reduced overall volatility.
The CMCITR’s precious metals sector was the best performing sector, rising nearly 11% for the Period, led by strong gains in gold. Most of the gains came late in the Period when interest rates declined as the U.S. Federal Reserve (the “Fed”) signaled that the tightening cycle was over. The U.S. dollar also declined on the
| 5 |
CM COMMODITY INDEX FUND
MANAGEMENT DISCUSSION (unaudited) (continued)
Fed signal late in the Period. Falling interest rates and a declining dollar helped gold finish the year up nearly 13%. Rising geopolitical tensions following the October 7 Hamas attack on Israel also helped gold rally as a safety asset in fourth quarter of the Period.
The Index’s agriculture sector posted a 2.5% return, led by gains in sugar, coffee and cocoa. In fact, gains in sugar, coffee and cocoa helped offset a large decline in corn, which was down 19% and milling wheat, which was down over 25%. (A better than expected crop in Brazil caused the decline in corn prices.)
The CMCITR’s energy sector fell nearly 5.7% led by a nearly 52% decline in U.S. natural gas prices. Mild winter and summer weather reduced natural gas demand, while U.S. production continued to rise. Starting in 2025, the U.S. is expected to have more LNG export capacity, which should help offset the continued strong U.S. production. The Index’ smaller allocation to natural gas was the biggest factor in the outperformance vs the BCOM. The CMCITR has a 3.7% allocation to natural gas, while the BCOM usually has a much larger position. The CMCITR had a small gain in both WTI and Brent crude oil despite declines in spot prices for both commodities. The U.S. surprised the market by producing over one million barrels of crude oil per day more than estimated in early 2023. The stronger than expected production came from U.S. shale oil in Texas. Some of that higher than expected production came from completing drilled but uncompleted oil wells, known as DUCs. The inventory of DUCs has fallen sharply, so U.S. shale oil production is less likely to surprise on the upside in 2024. The positive roll yield offset small declines in both crude oil positions.
The Index’s industrial metals sector declined by just over 4%, led by a nearly 44% decline in nickel prices. China’s disappointing economic growth was the biggest reason for the decline in industrial metals’ prices. LME Copper prices rallied late in the Period to finish up over 7.5%. The global supply of copper is looking uncertain and might not meet the expected growing demand over the next few years. Panama has closed a very large copper mine due to environmental concerns. Supply disruptions and supply security are become major concerns in the industrial metals industry.
The Index’s livestock sector declined by over 8% during the 2023, due to a sharp decline of over 27% in lean hog prices. Cattle prices remained strong, gaining over 6.5% on the Period.
For more information or to access investment and market insights from the investment team, visit our web site, vaneck.com or subscribe to our commentaries.
 |
 |
| Roland Morris, Jr. Portfolio Manager |
Gregory Krenzer Deputy Portfolio Manager |
Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.
All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes.
An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
| 1 | UBS Constant Maturity Commodity Total Return Index (CMCITR) is a rules-based, composite benchmark index. CMCITR is comprised of diversified commodities futures contracts with maturities ranging from around three months to over three years for each commodity, depending on liquidity. |
| 2 | The Bloomberg Commodity Index (BCOM) is composed of futures contracts on physical commodities covering specific sectors. Commodity weightings are based on production and liquidity, subject to weighting restrictions applied annually such that no related group of commodities constitutes more than 33% of the index and no single commodity constitutes more than 15%. |
| 3 | Front month: “Used in the context of options and futures, the term Front Month means the month closest to delivery (futures) or expiration (options)—which is often in the same month.” www.wikinvest.com/wiki/Front_Month |
| 4 | The S&P® GSCI Index (SPGSCI) is composed of futures contracts on physical commodities, with high energy concentration and limited diversification. SPGSCI buys and sells short-term futures contracts. |
| 6 |
MANAGEMENT DISCUSSION
December 31, 2023 (unaudited)
Summary of the Fund’s Investment Objective and Strategy
The VanEck Emerging Markets Bond Fund (the “Fund”) seeks total return, consisting of income and capital appreciation. The Fund invests across all emerging markets bonds—sovereigns, corporates, U.S. dollar and local currency. Its time-tested model finds the cheapest bonds relative to fundamentals. The portfolio is led by an experienced investment team that operates within a disciplined risk management framework.
Performance Overview
The VanEck Emerging Markets Bond Fund returned 10.91% (Class A shares, excluding sales charge) in the 12 months to December 31, 2023 (the “Period”). Country selection contributed positively to returns over the period.
The Fund’s benchmark1 returned 11.95% in 2023. The hard currency EMBI component was up 11.09%, and the local currency GBI-EM component was up 12.70%. The returns of both components benefitted from attractive levels of carry, particularly the hard currency index which began the Period with a yield-to-worst of approximately 8.5%. The local currency benchmark also benefitted from a decline in the overall yield, reflecting an easing of inflation concerns in many emerging markets. Emerging markets foreign currencies provided a small benefit to the index return, with most currencies appreciating against the U.S. dollar over the Period.
Fund Overview
Top contributors:
Sri Lanka—the Fund had an overweight to sovereign bonds denominated in local currency, which performed strongly as the country approached a debt restructuring agreement with its creditors.
Egypt—the Fund benefitted from both an underweight to Egypt as well as security selection. The Fund’s position in hard currency sovereign bonds was accumulated following a selloff following the October 7 attacks, which made them attractive, despite long-term debt sustainability issues, given the likelihood of support from the IMF and bilateral lenders.
Peru—The Fund benefitted from an overweight to local currency sovereign bonds.
Russia—The Fund had zero exposure all year, which led to 504 bps of Fund outperformance.
Main detractors:
Mexico—The Fund’s underweight, particularly to local currency sovereign bonds, was a detractor as the country was an outperformer (and highly correlated with U.S. Treasuries) in the benchmark.
Poland—The Fund’s underweight, particularly to local currency sovereign bonds, was a detractor as the country was an outperformer in the benchmark (also a result of high correlation with U.S. Treasuries).
South Africa—The Fund had an underweight as South Africa exhibited high-beta to a rallying emerging markets foreign currency market.
During the Period, the Fund took a small number of forward currency positions. Forward positions in Chinese yuan contributed positively to the Fund’s performance, while forward positions in Chilean peso and Thai baht detracted. Forwards as a whole had a small negative impact on the Fund’s positive performance for the period.
We continue to believe that emerging markets provide tremendous potential for income investors. While their economies are generally characterized by lower debts and deficits, higher rates, and independent central banks – there are myriad varieties of issues and issuers to select from. Thank you for entrusting us, our experience and bottom-up selection process to navigate this space for you.
| 7 |
EMERGING MARKETS BOND FUND
MANAGEMENT DISCUSSION (unaudited) (continued)
For more information or to access research insights from the Investment Team, please visit our website at https://www.vaneck.com/us/en/insights/emerging-markets-bonds/.
 |
 |
| Eric Fine Portfolio Manager |
David Austerweil Deputy Portfolio Manager |
Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.
All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
| 1 | The Fund’s benchmark is a blended index consisting of 50% J.P Morgan Emerging Markets Bond Index (“EMBI”) Global Diversified Index and 50% J.P. Morgan Government Bond Index-Emerging Markets (“GBI-EM”) Global Diversified Index. EMBI tracks returns for actively traded external debt instruments in emerging markets, and is also J.P. Morgan’s most liquid U.S. dollar emerging markets debt benchmark. GBI-EM tracks local currency bonds issued by emerging markets governments. |
| 8 |
MANAGEMENT DISCUSSION
December 31, 2023 (unaudited)
Summary of the Fund’s Investment Objective and Strategy
The Emerging Markets Fund (the “Fund”) seeks long-term capital appreciation by investing primarily in equity securities in emerging markets around the world. The Fund seeks to invests in high-quality, structural growth companies at a reasonable price poised to represent the future of emerging markets. The portfolio owns companies across countries, all market capitalizations and sectors not often well captured in widely used indices. With a track record of more than 20 years, the Fund is managed by a seasoned team, each member of which has substantial experience living or working in emerging markets.
Performance Overview
The Fund returned 10.62% (Class A shares, excluding sales charge) over the 12 months ended December 31, 2023 (the “Period”) under review. Performance was driven by the Fund’s philosophical emphasis on growth names and all-cap exposure.
Market Overview
MSCI Emerging Markets Investable Market Index (“IMI”) returned 11.67% during the Period. Emerging markets underperformed their domestic counterparts for the year, with emerging markets value outperforming growth and emerging markets small-caps significantly outperforming large-caps. After a tough 2022, emerging markets were weighed down by China weakness, weak earnings growth and continued geopolitical pressures.
• Inflation Cooled: 2023 saw a notable cooling off in inflation rates in many emerging markets. This downturn followed an intense period of inflationary pressures, largely fueled by post-pandemic recovery efforts and supply chain disruptions.
• Emerging Markets Monetary Policy Adjustments: Central banks in emerging markets began to cut interest rates in response to the easing inflation. These cuts were aimed at stimulating economic growth and maintaining financial stability in their respective economies.
• U.S. Federal Reserve’s Actions: The U.S. Federal Reserve paused its aggressive rate hike cycle, with potential indications of rate cuts on the horizon. This shift in policy stance had significant implications for global capital flows and exchange rates, especially impacting emerging markets.
• U.S. Dollar Impact: After a period of strong performance, the U.S. dollar experienced a slight decline in 2023. This depreciation provided some relief to emerging markets, many of which are sensitive to dollar strength due to their dollar-denominated debts and trade flows.
Fund Review
On a sector level, financials, industrials and consumer staples contributed positively to performance on a relative basis, whereas healthcare, materials and consumer discretionary detracted. On a country level, Brazil, Georgia and Russia contributed to relative performance, while China, South Korea and the Taiwan Region detracted. Russia’s contribution was primarily driven by the ability to exit out of a handful of positions that had been valued at zero or close to zero through negotiated sales.
Top contributors (on an absolute basis) were:
• MercadoLibre (5.3% of Fund net assets*) is the leading e-commerce platform in Latin America and is rapidly emerging as a significant player in the fintech sector. This year, MercadoLibre achieved remarkable growth, particularly in Mexico and Brazil, where it continues to expand its market share. Despite the entry of new competitors, MercadoLibre’s performance surpassed expectations. The company’s robust ecosystem, encompassing logistics, product variety and credit services, has created a strong network effect, supporting sustained market share increases throughout the region. We believe that there is a significant opportunity in advertising, which is approaching 2% of Gross Merchandize Value (“GMV”), still lower than major players like Amazon, where advertising accounts for more than 6%. The outlook for 2024 remains positive at this time.
| 9 |
EMERGING MARKETS FUND
MANAGEMENT DISCUSSION (unaudited) (continued)
• JSL S.A. (3.6% of Fund net assets*) is Brazil’s largest logistics platform, five times larger than its closest competitor. The company showcased impressive growth and improved operational efficiencies over the past year. Despite its growth, JSL S.A. only commands 1% of a highly fragmented market. The company has effectively leveraged cross-selling opportunities with existing clients and has significant potential for further growth. With its extensive experience in logistics and effective pricing models, JSL S.A. stands out from its competitors. The company, which has doubled in size since its IPO a few years ago, faces a vast market with ample room for expansion.
• Bank of Georgia (3.7% of Fund net assets*) is one of the two dominant banks in Georgia, controlling over 33% of the market. This year, the bank’s performance exceeded expectations, building on its strong foundation from 2022, with a return on equity consistently above 25%. The Bank of Georgia has made considerable strides in digitization, leading to increased efficiency and enhanced customer experiences.
Top detractors (on an absolute basis) were:
• China Education Group Holdings (1.8% of Fund net assets*) operates physical campuses offering tertiary education in China and abroad. The company faced several challenges this year, leading to underperformance. While it showed solid revenue growth through an increase in student numbers and tuition fees, this growth fell slightly short of expectations. Margins were negatively impacted by unexpectedly high teacher salaries and financing costs, the latter exacerbated by rising interest rates on U.S. dollar funding and the depreciation of the Renminbi (“RMB”) against the U.S. dollar. Additionally, the company’s share price was affected by the absence of anticipated mergers and acquisitions news.
• Wuxi Biologics (0.9% of Fund net assets*), a contract research and manufacturing company in the biologics field, revised its revenue growth expectations downward. This revision was due to reduced biopharmaceutical funding for their clients and delays in regulatory approvals. However, as a larger portion of their funding shifts towards manufacturing, revenue projections are expected to stabilize. The company’s market share remains stable, and the broader trend of outsourcing research in this field continues to hold promise.
• A-Living Smart City Services Co (sold by the Fund by period end*), affiliated with Agile Real Estate Group, is a property management firm. Despite property management generally being a more stable segment of the real estate sector, it is not immune to industry challenges. The company faced increased competition for existing contracts, a reduction in new contract opportunities, and concerns about the quality of receivables from Agile. Consequently, the Fund completely exited its position in this company in the second quarter.
We believe that companies driven by domestic demand and local consumer trends represent the future of emerging markets and global economic growth. We also believe that investing in emerging markets requires a long-term perspective. We remain grounded by our investment process and our positioning reflects our convictions from a bottom-up basis heading into the new year.
For more information or to access research insights from the Investment Team, please visit our website at https://www.vaneck.com/us/en/insights/emerging-markets-equity/.
 |
 |
| David Semple Portfolio Manager |
Angus Shillington Deputy Portfolio Manager |
Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.
The mention of a specific security is not a recommendation to buy, or solicitation to sell such security.
| 10 |
* All Fund assets referenced are Total Net Assets as of December 31, 2023.
All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
| 1 | The MSCI Emerging Markets Investable Markets Index captures large-, mid- and small-cap representation across emerging markets countries and covers approximately 99% of the free float adjusted market capitalization in each country. |
| 11 |
ENVIRONMENTAL SUSTAINABILITY FUND
MANAGEMENT DISCUSSION
December 31, 2023 (unaudited)
Summary of the Fund’s Investment Objective and Strategy
The Environmental Sustainability Fund (the “Fund”) seeks long-term capital appreciation by investing in companies operating in environmental sustainability markets. The Fund attempts to identify companies confronting key sustainability imperatives—such as carbon emissions, hazardous waste generation, greenhouse gas emissions and water usage—while also exhibiting sustainable business models over the long run.
Performance Review
The Fund returned -4.70% (for Class A shares, excluding sales charges) for the 12 month period ending December 31, 2023 (the “Period”). By comparison, the MSCI AC World Index1 and the MSCI Global Environment Select Index2 delivered 22.81% and -0.21%, respectively, over the same time Period. Factors having the greatest impact on environmental sustainability markets in 2023 included high interest rates and project delays as companies awaited further clarity around provisions of the U.S. Inflation Reduction Act (“IRA”).
Market Review
It was another challenging year for environmental sustainability markets. Interest rates continued to climb while industry players awaited clarity on key provisions of the IRA—the fine print of which would likely have solidified decisions for a number of projects while also aiding companies in terms of evaluating overall investment returns. Companies’ focus on growth was mostly met with caution by the markets, too, just given the rapid run up in the cost of capital. High-quality names with pristine balance sheets and resilient margins saw pockets of indiscriminate selling pressure throughout the Period.
Despite this backdrop, anticipation remained deafening in 2023. By year end, three terawatts of renewable power projects were waiting in grid connection queues—a figure equivalent to five times the amount of solar and wind capacity added in 2022. Electric vehicle penetration—already 25% in China and 22% in Europe—reached a tipping point in the U.S., with 10 states surpassing the critical 10% penetration rate earlier in the year. Raw material costs, after ballooning in 2021 and 2022, returned back to historical lows.
Fund Review
Collectively, on an absolute basis, companies within the Smart Resource Management and Recycling sectors were the largest contributors to returns, while companies within the Renewable Energy and Advanced Materials sub-sectors were the largest detractors. Top individual contributors included grid infrastructure service provider, Quanta Services (7.5% of Fund net assets*), energy efficiency solutions provider, Atlas Copco (3.8% of Fund net assets*), and semiconductor manufacturer, Infineon Technologies (4.0% of Fund net assets*). Top detractors included battery manufacturer, Freyr Battery (not held at the end of the Period), as well as solar inverter manufacturers SolarEdge Technologies (1.0% of Fund net assets*) and Enphase Energy (0.9% of Fund net assets*).
Positioning changes on the year were highlighted by the addition of solar tracking component manufacturer, Array Technologies (2.0% of Fund net assets*), flavor and ingredient companies, Givuadan (0.8% of Fund net assets*) and Ingredion (0.6% of Fund net assets*), as well as agricultural chemicals company, CF Industries (1.4% of Fund net assets*). The Fund also exited its position in battery manufacturer, Freyr Battery (not held at the end of the Period) and electric vehicle charging station provider, EVgo Inc. (not held at the end of the Period).
| 12 |
As of the end of 2023, Renewable Energy and Smart Resource Management were the largest sectors in the Fund, each accounting for around 25% of the portfolio. Advanced Materials accounted for around 20% of the portfolio, agriculture technology around 15% and the balance spread fairly evenly among Recycling, Water and cash.
 |
 |
| Shawn Reynolds Portfolio Manager |
Veronica Zhang Deputy Portfolio Manager |
Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.
The mention of a specific security is not a recommendation to buy, or solicitation to sell such security.
* All Fund assets referenced are Total Net Assets as of December 31, 2023.
All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
| 1 | The MSCI AC World Daily TR Gross USD Index captures large and mid-cap representation across developed and emerging markets and countries and covers approximately 85% of the global investable equity opportunity set. The MSCI benchmark is a Gross Return index which reinvests as much as possible of a company’s gross dividend distributions. |
| 2 | The MSCI Global Environment Select Index is comprised of securities of companies that derive at least 75% of their revenues from environmentally beneficial products and services. The index is based on key environmental themes: Alternative Energy, Sustainable Water, Green Building, Pollution Prevention and Control, Energy Efficiency and Sustainable Agriculture. The index is further diversified by capping securities at 5%. The index aims to serve as a benchmark for investors seeking exposure to companies whose primary source of revenues increase the efficient use of scarce natural resources or mitigate the impact of environmental degradation. Constituent selection is based on data from MSCI ESG Research. |
| 13 |
MANAGEMENT DISCUSSION
December 31, 2023 (unaudited)
Summary of the Fund’s Investment Objective and Strategy
The VanEck Global Resources Fund (the “Fund”) seeks long-term capital appreciation by investing in a diversified portfolio of global resource equities. The Fund’s more than 26-year track record is supported by a seasoned investment team, including analysts and portfolio managers with former experience as geologists and engineers. The Fund’s portfolio comprises companies with unique competitive advantages associated with the long-term energy transition, coupled with more traditional commodity producers helping fuel today’s global economic growth.
Performance Overview
The Fund returned -3.89% (Class A shares, excluding sales charge) for the 12 months ended December 31, 2023 (the “Period”). Companies within the Oil & Gas sector provided the largest, positive contributions on the year, despite oil price volatility. Gold & Precious Metals companies, aided by resilient gold prices, were also additive. Meanwhile, Renewables & Alternatives companies and green metal miners continued to struggle in a higher interest rate environment and remained the largest detractors for a second year in a row.
Market Review
On the whole, resource equities—as measured by both the energy-heavy S&P North American Natural Resource Sector Index1 and the more balanced S&P Global Natural Resources Index2—underperformed broader global equity and bond markets on the year. From a macroeconomic perspective, drivers of underperformance included easing inflationary pressures, a pullback in commodity prices and shifting investor sentiment amid a more dovish outlook for rates in 2024.
Oil & Gas
Supply constraints helped buoy crude prices for most of 2023. Strong demand, large inventory draws and geopolitical conflict combined to drive oil’s move above $90 per barrel in late-September. However, concerns over slowing global growth began to dominate by the fourth quarter. This, combined with news of record output from the U.S., sank oil prices below $70 per barrel in mid-December.
For oil and gas producers, the year was highlighted by record mergers and acquisition activity within the U.S. exploration and production (E&P) industry. In the fourth quarter, Exxon Mobil (2.6% of Fund net assets*) announced its all-stock purchase of Pioneer Natural Resources (1.1% of Fund net assets*), while Chevron (1.0% of Fund net assets*), used a similarly-structured agreement to purchase Hess (0.5% of Fund net assets*). The deals capped off a record spending spree by the industry in 2023.
Renewables & Alternatives
Solar module prices reached a new low in 2023, with supply still vastly outstripping demand. Declining industry costs, as well as government-fueled subsidies, aided with record levels of installed solar capacity, globally.
Despite longer-term optimism, lingering supply-chain issues, project delays and higher borrowing costs pressured shares of renewable and alternative energy companies for a second consecutive year. Some relief came with planned rate cuts in the U.S. as, in the fourth quarter, many companies in the space turned in their best quarterly performances since 2020.
Base & Industrial Metals
Base and industrial metals trended sideways for most of the Period, with China’s weak real estate sector weighing on prices. Disappointing electric vehicle (EV) sales growth in the United States, as well as ongoing supply-chain bottlenecks in clean energy markets, prompted supply overhang concerns for metals such as lithium, nickel, cobalt and graphite. Copper and iron ore were spared before year-end, though, with reported inventory declines and reported disruptions at major production sites around the world.
| 14 |
First Quantum Minerals (0.5% of Fund net assets*) was among those most significantly impacted by disruptions to its mine operations in 2023. In November, Panamanian government officials ordered the closure of First Quantum’s Cobre Panama mine, which accounted for approximately 1.5% of global copper supply in 2022.
Gold & Precious Metals
Gold reached a new all-time high in 2023. Reported strength in central bank purchases, rising global geopolitical tensions and forecasted rate cuts in 2024 outweighed otherwise lackluster investment demand for physical gold through most of the second half of 2023.
Gold miners, who largely underperformed the metal on the year, still had a few notable wins. In November, Newmont (1.7% of Fund net assets*) announced its successful bid for Newcrest (not held at Period end). The acquisition added several attractive, non-core assets to Newmont’s mining portfolio while also ensuring the company’s position as the world’s top gold producer.
Agriculture
The agriculture complex struggled to find firm footing in 2023. Stocks of U.S. wheat and corn ended the Period higher, while usage remained fairly flat on slowing exports and lower demand for animal feed. Fertilizer prices stabilized for much of the Period with European supplies of natural gas (a key input for nitrogen fertilizers) appearing less at risk than a year ago.
Modest share price gains for protein producers were the lone standout among agriculture companies. Companies in the space were predominately supported by gains in U.S. poultry prices, driven by record-high cattle prices and a resurgence of avian flu.
Fund Review
Collectively, positions in Oil & Gas and Gold & Precious Metals were the Fund’s largest contributors, while positions in Renewables & Alternatives and Base & Industrial Metals were the largest detractors.
Top individual contributors included offshore oilfield servicer, TechnipFMC (1.5% of Fund net assets*), gold producer, Kinross (1.6% of Fund net assets*) and poultry producer, JBS (2.1% of Fund net assets*).
Top individual detractors included copper producer, First Quantum Minerals (0.5%, of Fund net assets*), solar inverter manufacturer, Enphase Energy (not held at Period end) and diversified metals miner, Anglo American not held at Period end).
Notable additions to the Fund during the Period included integrated oil companies, Exxon Mobil and BP (1.9%, of Fund net assets*). Other notable changes included the Fund’s exit from oilfield servicer, Liberty Energy (not held at period end), oil and gas producer, Devon Energy (not held at Period end) and refining company Repsol (not held at Period end).
At the end of the Period, the Fund’s largest allocations were to Oil & Gas (approximately 43% of the portfolio) and Base & Industrial Metals (approximately 17% of the portfolio). Agriculture, Gold & Precious Metals and Renewable & Alternative Energy positions made up nearly the entirety of the Fund’s remaining exposure at approximately 12.9%, 11.8% and 8.5% each of the portfolio, respectively.
| 15 |
GLOBAL RESOURCES FUND
MANAGEMENT DISCUSSION (unaudited) (continued)
We very much appreciate your continued investment in the VanEck Global Resources Fund, and we look forward to helping you meet your investment goals in the future.
 |
 |
| Shawn Reynolds Portfolio Manager |
Charles T. Cameron Deputy Portfolio Manager |
Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.
The mention of a specific security is not a recommendation to buy, or solicitation to sell such security.
*All Fund assets referenced are Total Net Assets as of December 31, 2023.
All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
1S&P® North American Natural Resources Sector (SPGINRTR) Index includes mining, energy, paper and forest products, and plantation-owning companies, but excludes the chemicals industry and steel sub-industry.
2S&P® Global Natural Resources Index (SPGNRUT) includes 90 of the largest publicly-traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified and investable equity exposure across three primary commodity-related sectors: agribusiness, energy, and metals & mining.
| 16 |
INTERNATIONAL INVESTORS GOLD FUND
MANAGEMENT DISCUSSION
December 31, 2023 (unaudited)
Summary of the Fund’s Investment Objective and Strategy
The International Investors Gold Fund (the “Fund”) seeks long-term capital appreciation by investing across a broad range of global gold mining companies. The Fund has a nearly 56-year track record of investing in the space, with a seasoned investment team comprising former geologists and engineers. Today, the Fund’s high-conviction portfolio includes a mix of junior developers and junior producers all the way up to more established mid-tier and senior gold miners.
Performance Overview
The Fund gained 9.68% (Class A shares, excluding sales charge) during the twelve months ended December 31, 2023 (the “Period”).
Market Review
The spot gold price set new highs in 2023. Gold recorded a new intraday, all-time high of $2,135 an ounce in early December. The price spike occurred during overseas trading hours. Gold also managed to establish a new at-the-close all-time high of $2,077 on December 27 and ended 2023 at $2,063 per ounce, up 13.1% for the year. The main drivers were:
1) Heightened global financial risk: gold closed at a yearly low of $1,811 at the end of February, bouncing back and trending above $2,000 as markets tried to digest the news and assess the ripple effects of the rapid collapse of Silicon Valley Bank and Signature Bank over the course of a weekend in March. Gold found further support as the risks spread to Europe, with major bank Credit Suisse ultimately needing to be rescued.
2) Record central bank net gold purchases: investment demand, as gauged by the holdings of gold bullion ETFs, persistently declined in the second half of the Period. However, this was offset by strong buying from the official sector, with gold purchases from central banks around the world potentially set to beat the record levels reported for 2022. This kept gold well supported above the $1,900 level throughout most of the year, leading to the highest annual average gold price on record of $1,943 per ounce in 2023.
3) Heightened geopolitical risk globally: most notably as a result of the ongoing war in Ukraine and the tragic developments in the Middle East in early October. Gold closed at $1,820 per ounce on October 5. Gold demonstrated once again its historically proven role as a safe haven, climbing above $2,000 once again, after Hamas’ attacks on Israel.
4) U.S. Federal Reserve policy: changing expectations around the Fed’s monetary policy path were a major driver of gold prices in 2023. The Fed’s projections for rate cuts in 2024, released at the conclusion of its December 13 FOMC (Federal Open Markets Committee) meeting, sent gold prices to record levels at year end.
Gold equities ended the year strongly, outperforming gold bullion in the last two months of the Period, but were not able to fully close the valuation gap against the metal.
Fund Review
The Fund slightly underperformed its benchmark, the NYSE Arca Gold Miners Index1 (GDMNTR), which posted a gain of 10.60% during the Period. The mid-tiers and small-cap gold mining stocks, as represented by the MVIS Global Junior Gold Miners Index2 (MVGDXJTR) recorded a gain of 8.59%.
With gold prices trending to records levels throughout most of 2023, the Fund maintained very low cash positions and nil gold bullion holdings to maximize exposure to the gold equities (94.5% of Fund net assets*), which typically outperform in a rising gold price environment. At the end of December 2023, cash holdings represented 0.8% of net assets* (compared to 3.1% at the end of December 2022) and holdings in gold bullion or gold bullion exchange traded products accounted for nil of net assets (unchanged from the end of December 2022). The balance, 5.0% of the Fund, was invested in silver and other metals and mining equities.
| 17 |
INTERNATIONAL INVESTORS GOLD FUND
MANAGEMENT DISCUSSION (unaudited) (continued)
The Fund had significant exposure (21.4% of Fund net assets* at year-end) in smaller-cap companies. As a group, these junior developers and producers underperformed and this was the largest detractor from the Fund’s performance during the period, both in absolute terms and relative to the benchmark. Junior developer Liberty Gold (1.0% of Fund net assets*) and junior producers Orezone Gold (0.7% of Fund net assets*) and West African Resources (1.2% of Fund net assets*) were significant detractors from the Fund’s performance relative to the benchmark. Among the larger caps, the Fund’s underweight position in Gold Fields (2.4% of Fund net assets*) also pushed down returns relative to the benchmark during the Period. Contributing most significantly to positive performance relative to the benchmark were the Fund’s overweight position in Bellevue Gold (4.1% of Fund net assets*) and underweight position in Newmont (3.6% of Fund net assets*).
Among the Fund’s top holdings, senior producer Kinross Gold (6.6% of Fund net assets*) outperformed, gaining 51.84% during the Period. In 2023, Kinross was able to recover from the selloff of its shares in 2022 due to its exposure to Russia. Following an exit from Russia, the markets seem to finally have rerated this company more in line with its peers. We expect the company’s strong fundamentals and recent record of meeting or beating expectations to lead to continued strong stock price performance in 2024.
Mid-tier producer Alamos Gold (6.0% of Fund net assets*) significantly outperformed (up 34.33%) in 2023, following strong outperformance also in 2022. The company has three established, good-quality assets in North America (Canada and Mexico) which are able to deliver organic growth, most notably through the Island Gold mine expansion and exploration success at the Mulatos mine. We expect the market to continue to reward Alamos’ stock for its high quality (low risk, low cost) growth.
Our top junior position, Bellevue Gold (4.1% of Fund net assets*) was again a very strong outperformer in 2023 (up 48.58%). The market rewarded the company for an on time and on budget start of production at its Bellevue gold mine in Western Australia. So far, the ramp up has been relatively smooth, and the mine achieved first gold pour in October 2023. The company has now graduated from a developer to a producer. Assuming the ramp up to full production continues to progress well, this should lead to improved valuation multiples for the company. Among the juniors, although smaller holdings, Emerald Resources (2.3% of Fund net assets*) and Resolute mining (1.3% of Fund net assets*) deserve a mention after posting spectacular returns of 154.60% and 123.02% respectively during the Period.
Franco-Nevada (3.4% of Fund net assets*) underperformed (down 17.96%) this year, primarily due to its exposure to First Quantum’s Cobre Panama mine, which has now been shut down by Panama’s government. The gold and silver streams Franco-Nevada owns from the production of the Cobre Panama copper mine represented an estimated approx. 20% of the company’s valuation. Recognizing the risks earlier in the year, the Fund significantly reduced its exposure to Franco-Nevada, which at the end of 2002 was the Fund’s second largest holding representing 8.7% of Fund net assets*.
Among the junior companies, Orezone Gold (0.7% of Fund net assets*) and West African Resources (1.2% of Fund net assets*) underperformed (down 31.43% and 19.39% respectively). Although fundamentally, both companies are strong, well run and with attractive growth profiles, the elevated geopolitical risk in West Africa has taken a severe toll on their stock prices. In the third quarter of 2023, the Fund reduced its holdings in those companies with significant exposure to the West African region in order to address these risks.
Access investment and market insights from VanEck’s investment professionals by subscribing to our commentaries. To subscribe to the gold and precious metals update, please visit https://www.vaneck.com/ subscribe to register.
| 18 |
We appreciate your continued investment in the International Investors Gold Fund, and we look forward to helping you meet your investment goals in the future.
Imaru Casanova
Portfolio Manager
Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.
The mention of a specific security is not a recommendation to buy, or solicitation to sell such security.
*All Fund assets referenced are Total Net Assets as of December 31, 2023.
All indices listed are unmanaged indices and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
| 1 | NYSE Arca Gold Miners (GDMNTR) Index is a market capitalization-weighted index comprised of publicly traded companies involved primarily in the mining for gold. |
| 2 | MVIS Global Junior Gold Miners Index (MVGDXJTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of a global universe of publicly traded small- and medium-capitalization companies that generate at least 50% of their revenues from gold and/or silver mining, hold real property that has the potential to produce at least 50% of the company’s revenue from gold or silver mining when developed, or primarily invest in gold or silver. |
| 19 |
MANAGEMENT DISCUSSION
December 31, 2023 (unaudited)
Summary of the Fund’s Investment Objective and Strategy
The VanEck Morningstar Wide Moat Fund (the “Fund”) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® Wide Moat Focus IndexSM (MWMFTR) (the “Index”)1. The Index contains at least 40 attractively priced U.S. companies with sustainable competitive advantages, or “moats” with Morningstar equity analysts using a rigorous proprietary process to determine if a company has an economic moat, which may allow them to earn above average returns on capital over a long period of time. Companies included in the index are also determined to be trading at attractive prices relative to Morningstar’s estimate of fair value.
Performance Overview
The Fund returned 31.76% (Class Z shares) for the 12 month period ended December 31, 2023 (the “Period”). The Fund outperformed the broad U.S. stock market as represented by the S&P 500® Index2 which posted a 26.29% return. For the Period, the Index returned 32.41% and outperformed the S&P 500® Index by 6.12%.
One headwind during the Period was being underweight the “Magnificent 7.”3 This underweight (approximately 17%) to the S&P 500 Index led to a cost of over 3% in relative performance. Another headwind was the Index’s equal weighting methodology. To illustrate this point, consider the Morningstar® Wide Moat IndexSM. It represents a market-capitalization weighted basket of all U.S. wide moat-rated stocks. It comfortably outperformed, by 12.7%, its equal-weighted counterpart, further illustrating the dominance of mega-cap stocks in 2023. However, despite the Index employing an equal-weighting methodology and featuring a persistent underweight to the market-leading Magnificent 7, its high-conviction “focus” on quality and attractive valuations still allowed it to post an excess return of 6.12% relative to the S&P 500 Index.
Fund Review
Information technology was by far the top contributing sector to the Fund’s return, followed by the communication services and financial sectors. Utilities and consumer staples were the only sectors that detracted from the Fund’s return and then only minimally.
The top three individual stock performance contributors were: Meta Platforms Inc. (sold during the Period), Salesforce.com Inc. (2.6% of Fund net assets*) and Amazon.com Inc. (1.3% of Fund net assets*). Meta Platforms Inc. (“Meta”), the leading detractor from Fund performance in 2022, reported strong results in 2023. It exceeded analysts’ expectations in several quarters following a difficult 2022. Meta’s transition to and significant investment in the metaverse was punished by the market in 2022, but its resilience and impressive results reversed its fortunes in 2023. The Fund fully exited its position in Meta in September 2023.
The bottom three performance contributors were: Etsy Inc. (2.7% of Fund net assets*), Pfizer Inc. (2.1% of Fund net assets*) and International Flavors and Fragrances Inc. (2.6% of Fund net assets*). The Fund’s top detractor from performance, Etsy Inc. (“Etsy”), is the operator of a leading e-commerce marketplace serving niche buyers and sellers. The company struggled throughout 2023, in large part due to lofty global inflation, a return to brick-and-mortar shopping post-global pandemic and a shift in consumer spending away from good to services. However, the Morningstar Equity Research Team continues to express its conviction with regard to Etsy’s long-term competitive advantage, or wide moat rating.
Please access investment and market insights from VanEck’s investment professionals by blogs. To learn more about Moat Investing4 and to read our Moat Investing insights5, visit our website and subscribe6 to our Moat Investing updates.
| 20 |
We appreciate your participation in the VanEck Morningstar Wide Moat Fund, and we look forward to helping you meet your investment goals in the future.
 |
 |
| Peter H. Liao Portfolio Manager |
Gregory F. Krenzer Deputy Portfolio Manager |
Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.
All indices listed are unmanaged indices and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. Certain indices may take into account withholding taxes. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
The mention of a specific security is not a recommendation to buy, or solicitation to sell such security.
*All Fund assets referenced are Total Net Assets as of December 31, 2023.
| 1 | Morningstar® Wide Moat Focus IndexSM (MWMFTR) is a rules-based, equal-weighted index intended to offer exposure to companies that Morningstar, Inc. determines have sustainable competitive advantages based on a proprietary methodology that considers quantitative and qualitative factors (“wide moat companies”) (reflects no deduction for fees, expenses or taxes). |
| 2 | S&P 500® Index: consists of 500 widely held common stocks covering the leading industries of the U.S. economy (reflects no deduction for fees, expenses or taxes). |
| 3 | Moat Investing: https://www.vaneck.com/us/en/education/investment-ideas/moat-investing-powered-by-morningstar/ |
| 4 | Moat Investing insights: https://www.vaneck.com/us/en/insights/moat-investing/ |
| 5 | Subscribe: https://www.vaneck.com/us/en/subscribe/ |
| 21 |
December 31, 2023 (unaudited)
| Average Annual Total Return |
Class A Before Sales Charge |
Class A After Maximum Sales Charge |
Class I* | Class Y* | CMCITR | |||||
| One Year | (2.87)% | (8.45)% | (2.63)% | (2.77)% | (1.41)% | |||||
| Five Year | 10.28% | 8.99% | 10.59% | 10.56% | 11.90% | |||||
| Ten Year | 0.60% | 0.01% | 0.89% | 0.84% | 2.04% |
| * | Class is not subject to a sales charge |
Hypothetical Growth of $10,000 (Ten Year: Class A - with sales charge)
This chart shows the value of a hypothetical $10,000 investment in the Fund over the past ten years. The result is compared with the Fund’s benchmark.
Performance of Class I and Class Y shares will vary from that of the Class A shares due to differences in class specific fees and any applicable sales charges.
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.
See “About Fund Performance” on page 29 for more information.
UBS Bloomberg Constant Maturity Commodity Total Return Index (CMCITR) is a rules-based, composite benchmark index diversified across commodity components from various sectors, specifically energy, precious metals, industrial metals, agriculture and livestock (reflects no deduction for fees, expenses or taxes).
| 22 |
PERFORMANCE COMPARISON
December 31, 2023 (unaudited)
| Average Annual Total Return |
Class A Before Sales Charge |
Class A After Maximum Sales Charge |
Class I* | |||
| One Year | 10.91% | 4.53% | 10.97% | |||
| Five Year | 4.14% | 2.92% | 4.46% | |||
| Ten Year | 1.80% | 1.20% | 2.10% |
| Average Annual Total Return |
Class Y* | 50% EMBI 50% GBI-EM |
GBI-EM | EMBI | ||||
| One Year | 11.03% | 11.95% | 12.70% | 11.09% | ||||
| Five Year | 4.39% | 1.46% | 1.14% | 1.67% | ||||
| Ten Year | 2.03% | 1.71% | 0.09% | 3.22% |
| * | Class is not subject to a sales charge |
Hypothetical Growth of $10,000 (Ten Year: Class A – with sales charge)
This chart shows the value of a hypothetical $10,000 investment in the Fund over the past ten years. The result is compared with the Fund’s benchmark, a broad-based market index.
Performance of Class I, and Class Y shares will vary from that of the Class A shares due to differences in class specific fees and any applicable sales charges.
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.
See “About Fund Performance” on page 29 for more information.
The 50/50 benchmark Index (50% EMBI/50% GBI-EM) is a blended index consisting of 50% J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified Index and 50% J.P. Morgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified Index (reflects no deduction for fees, expenses or taxes).
EMBI tracks returns for actively traded external debt instruments in emerging markets, and is also J.P. Morgan’s most liquid U.S-dollar emerging markets debt benchmark (reflects no deduction for fees, expenses or taxes).
GBI-EM tracks local currency bonds issued by Emerging Markets governments (reflects no deduction for fees, expenses or taxes).
| 23 |
PERFORMANCE COMPARISON
December 31, 2023 (unaudited)
| Average Annual Total Return |
Class A Before Sales Charge |
Class A After Maximum Sales Charge |
Class C Before Sales Charge |
Class C After Maximum Sales Charge | ||||
| One Year | 10.62% | 4.26% | 9.55% | 8.55% | ||||
| Five Year | 1.85% | 0.65% | 1.00% | 1.00% | ||||
| Ten Year | 0.80% | 0.21% | (0.02)% | (0.02)% |
| Average Annual Total Return |
Class I* | Class Y* | Class Z* | MSCI EM IMI | ||||
| One Year | 11.26% | 11.17% | 11.34% | 11.67% | ||||
| Five Year | 2.36% | 2.28% | n/a | 4.46% | ||||
| Ten Year | 1.32% | 1.21% | n/a | 3.00% | ||||
| Life^ | n/a | n/a | (1.67)% | 3.36% |
| * | Class is not subject to a sales charge |
| ^ | Class Z since September 16, 2019. |
Hypothetical Growth of $10,000 (Ten Year: Class A – with sales charge)
This chart shows the value of a hypothetical $10,000 investment in the Fund over the past ten years. The result is compared with the Fund’s benchmark.
Performance of Class C, Class I, Class Y and Class Z shares will vary from that of the Class A shares due to differences in class specific fees and any applicable sales charges.
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.
See “About Fund Performance” on page 29 for more information.
The MSCI Emerging Markets Investable Market Index (MSCI EM IMI) captures large, mid and small cap representation across 24 emerging markets countries. The index covers approximately 99% of the free float-adjusted market capitalization in each country.
| 24 |
ENVIRONMENTAL SUSTAINABILITY FUND
PERFORMANCE COMPARISON
December 31, 2023 (unaudited)
| Average Annual Total Return |
Class A Before Sales Charge |
Class A After Maximum Sales Charge |
Class I* | Class Y* | MSCI ACWI | |||||
| One Year | (4.70)% | (10.18)% | (4.41)% | (4.50)% | 22.81% | |||||
| Life^ | (13.53)% | (15.58)% | (13.28)% | (13.36)% | 2.21% |
| * | Class is not subject to a sales charge | |
| ^ | Inception date for the Fund was July 13, 2021 (inception date for all share classes). |
Hypothetical Growth of $10,000 (Since Inception)
This chart shows the value of a hypothetical $10,000 investment in the Fund since inception. The result is compared with the Fund’s benchmark, a broad-based market index.
Performance of Class I and Class Y shares will vary from that of the Class A shares due to differences in class specific fees and any applicable sales charges.
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.
See “About Fund Performance” on 29 for more information.
MSCI AC World Daily TR Gross USD Index (MSCI ACWI) captures large and mid-cap representation across developed and emerging markets and countries and covers approximately 85% of the global investable equity opportunity set. The MSCI benchmark is a Gross Return index which reinvests as much as possible of a company’s gross dividend distributions.
| 25 |
PERFORMANCE COMPARISON
December 31, 2023 (unaudited)
| Average Annual Total Return |
Class A Before Sales Charge |
Class A After Maximum Sales Charge |
Class C Before Sales Charge |
Class C After Maximum Sales Charge | ||||
| One Year | (3.89)% | (9.42)% | (4.67)% | (5.60)% | ||||
| Five Year | 10.23% | 8.93% | 9.33% | 9.33% | ||||
| Ten Year | (1.38)% | (1.97)% | (2.17)% | (2.17)% |
| Average Annual Total Return |
Class I* | Class Y* | SPGNRUT | SPGINRTR | MSCI ACWI | |||||
| One Year | (3.47)% | (3.63)% | 4.08% | 3.66% | 22.81% | |||||
| Five Year | 10.70% | 10.50% | 11.15% | 13.13% | 12.27% | |||||
| Ten Year | (0.98)% | (1.14)% | 5.15% | 2.85% | 8.48% |
| * | Class is not subject to a sales charge |
Hypothetical Growth of $10,000 (Ten Year: Class A – with sales charge)
This chart shows the value of a hypothetical $10,000 investment in the Fund over the past ten years. The result is compared with the Fund’s benchmark, and a broad-based market index.
Performance of Class C, Class I, and Class Y shares will vary from that of the Class A shares due to differences in class specific fees and any applicable sales charges.
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.
See “About Fund Performance” on page 29 for more information.
The S&P® Global Natural Resources Index (SPGNRUT) provides exposure to natural resources across three primary commodity-related sectors: agribusiness, energy, and metals and mining (reflects no deduction for expenses or taxes). Effective May 1, 2023, the SPGNRUT replaced the S&P® North American Natural Resources Sector (SPGINRTR) Index as the Fund’s primary benchmark. The Fund changed its benchmark as it believes the SPGNRUT is more representative of the global resources sector.
SPGINRTR includes mining, energy, paper and forest products, and plantation-owning companies (reflects no deduction for expenses or taxes). MSCI AC World Daily TR Gross USD Index (MSCI ACWI) represents large and mid-cap companies across developed and emerging market countries (reflects no deduction for expenses or taxes).
| 26 |
INTERNATIONAL INVESTORS GOLD FUND
PERFORMANCE COMPARISON
December 31, 2023 (unaudited)
| Average Annual Total Return |
Class A Before Sales Charge |
Class A After Maximum Sales Charge |
Class C Before Sales Charge |
Class C After Maximum Sales Charge | ||||
| One Year | 9.68% | 3.37% | 8.90% | 7.90% | ||||
| Five Year | 9.60% | 8.31% | 8.80% | 8.80% | ||||
| Ten Year | 4.99% | 4.37% | 4.20% | 4.20% |
| Average Annual Total Return |
Class I* | Class Y* | GDMNTR | MSCI ACWI | ||||
| One Year | 10.26% | 10.13% | 10.60% | 22.81% | ||||
| Five Year | 10.05% | 9.95% | 9.80% | 12.27% | ||||
| Ten Year | 5.44% | 5.32% | 5.25% | 8.48% |
| * | Class is not subject to a sales charge |
Hypothetical Growth of $10,000 (Ten Year: Class A - with sales charge)
This chart shows the value of a hypothetical $10,000 investment in the Fund over the past ten years. The result is compared with the Fund’s benchmark, and a broad-based market index.
Performance of Class C, Class I, and Class Y shares will vary from that of the Class A shares due to differences in class specific fees and any applicable sales charges.
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.
See “About Fund Performance” on page 29 for more information.
NYSE Arca Gold Miners (GDMNTR) Index is a market capitalization-weighted index comprised of publicly traded companies involved primarily in the mining for gold (reflects no deduction for fees, expenses or taxes except withholding taxes).
MSCI AC World Daily TR Gross USD Index (MSCI ACWI) captures large- and mid-cap representation across both developed and emerging markets countries (reflects no deduction for fees, expenses or taxes except withholding taxes).
| 27 |
PERFORMANCE COMPARISON
December 31, 2023 (unaudited)
| Average Annual Total Return |
Class I* | Class Z* | MWMFTR | SPTR | ||||
| One Year | 31.66% | 31.76% | 32.41% | 26.29% | ||||
| Five Year | 16.77% | 16.90% | 17.53% | 15.69% | ||||
| Life^ | 14.30% | 14.42% | 15.03% | 12.39% |
| * | Class is not subject to a sales charge | |
| ^ | Inception date for the Fund was November 6, 2017 (inception date for all share classes). |
Hypothetical Growth of $10,000 (Since Inception: Class Z)
This chart shows the value of a hypothetical $10,000 investment in the Fund since inception. The result is compared with the Fund’s benchmark, and a broad-based market index.
Performance of Class I shares will vary from that of the Class Z shares due to differences in class specific fees and any applicable sales charges.
The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted.
See “About Fund Performance” on page 29 for more information.
Morningstar® Wide Moat Focus Index (MWMFTR) is a rules-based index intended to offer exposure to companies that the Index Provider determines have sustainable competitive advantages based on a proprietary methodology that considers quantitative and qualitative factors (“wide moat companies”) (reflects no deduction for fees, expenses or taxes).
S&P 500® Index (SPTR) consists of 500 widely held common stocks, covering four broad sectors (industrials, utilities, financial and transportation).
| 28 |
VANECK FUNDS
(unaudited)
The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for each Fund may reflect temporary waivers of expenses and/or fees. Had each Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of each Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Fund returns reflect reinvestment of dividends and capital gains distributions. Performance current to the most recent month-end is available by calling 800.826.2333 or by visiting vaneck.com.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Certain indices may take into account withholding taxes. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
The CM Commodity Index Fund index is published by Bloomberg Finance L.P (Bloomberg). The Emerging Markets Fund and Environmental Sustainability Fund indexes are published by MSCI Inc. (MSCI). The Global Resources Fund index is published by S&P®. The International Investors Gold Fund index is published by ICE Data Indices, LLC (ICE Data). The Emerging Markets Bond Fund index is published by J.P. Morgan. The Morningstar Wide Moat Fund index is published by Morningstar.
Bloomberg, MSCI, S&P, ICE Data, J.P. Morgan, and Morningstar are referred to herein as the “Index Providers”. The Index Providers do not sponsor, endorse, or promote the Funds and bear no liability with respect to the Funds or any security.
| 29 |
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, July 1, 2023 to December 31, 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.
| 30 |
| Beginning Account Value July 1, 2023 |
Ending Account Value December 31, 2023 |
Annualized Expense Ratio During Period |
Expenses Paid During the Period July 1, 2023 - December 31, 2023(a) | |||||
| CM Commodity Index Fund | ||||||||
| Class A | ||||||||
| Actual | $1,000.00 | $1,022.30 | 0.95% | $4.84 | ||||
| Hypothetical (b) | $1,000.00 | $1,020.42 | 0.95% | $4.84 | ||||
| Class I | ||||||||
| Actual | $1,000.00 | $1,022.80 | 0.65% | $3.31 | ||||
| Hypothetical (b) | $1,000.00 | $1,021.93 | 0.65% | $3.31 | ||||
| Class Y | ||||||||
| Actual | $1,000.00 | $1,021.60 | 0.70% | $3.57 | ||||
| Hypothetical (b) | $1,000.00 | $1,021.68 | 0.70% | $3.57 | ||||
| Emerging Markets Bond Fund | ||||||||
| Class A | ||||||||
| Actual | $1,000.00 | $1,045.10 | 1.21% | $6.24 | ||||
| Hypothetical (b) | $1,000.00 | $1,019.11 | 1.21% | $6.16 | ||||
| Class I | ||||||||
| Actual | $1,000.00 | $1,046.80 | 0.86% | $4.44 | ||||
| Hypothetical (b) | $1,000.00 | $1,020.87 | 0.86% | $4.38 | ||||
| Class Y | ||||||||
| Actual | $1,000.00 | $1,046.20 | 0.96% | $4.95 | ||||
| Hypothetical (b) | $1,000.00 | $1,020.37 | 0.96% | $4.89 | ||||
| Emerging Markets Fund | ||||||||
| Class A | ||||||||
| Actual | $1,000.00 | $1,061.20 | 1.55% | $8.05 | ||||
| Hypothetical (b) | $1,000.00 | $1,017.39 | 1.55% | $7.88 | ||||
| Class C | ||||||||
| Actual | $1,000.00 | $1,056.40 | 2.51% | $13.01 | ||||
| Hypothetical (b) | $1,000.00 | $1,012.55 | 2.51% | $12.73 | ||||
| Class I | ||||||||
| Actual | $1,000.00 | $1,063.80 | 1.01% | $5.25 | ||||
| Hypothetical (b) | $1,000.00 | $1,020.11 | 1.01% | $5.14 | ||||
| Class Y | ||||||||
| Actual | $1,000.00 | $1,064.10 | 1.11% | $5.77 | ||||
| Hypothetical (b) | $1,000.00 | $1,019.61 | 1.11% | $5.65 | ||||
| Class Z | ||||||||
| Actual | $1,000.00 | $1,064.80 | 0.91% | $4.74 | ||||
| Hypothetical (b) | $1,000.00 | $1,020.62 | 0.91% | $4.63 | ||||
| Environmental Sustainability Fund | ||||||||
| Class A | ||||||||
| Actual | $1,000.00 | $894.20 | 1.25% | $5.97 | ||||
| Hypothetical (b) | $1,000.00 | $1,018.90 | 1.25% | $6.36 | ||||
| Class I | ||||||||
| Actual | $1,000.00 | $895.60 | 0.95% | $4.54 | ||||
| Hypothetical (b) | $1,000.00 | $1,020.42 | 0.95% | $4.84 | ||||
| Class Y | ||||||||
| Actual | $1,000.00 | $895.20 | 1.05% | $5.02 | ||||
| Hypothetical (b) | $1,000.00 | $1,019.91 | 1.05% | $5.35 |
| 31 |
VANECK FUNDS
EXPLANATION OF EXPENSES
(unaudited) (continued)
| Beginning Account Value July 1, 2023 |
Ending Account Value December 31, 2023 |
Annualized Expense Ratio During Period |
Expenses Paid During the Period July 1, 2023 - December 31, 2023(a) | |||||
| Global Resources Fund | ||||||||
| Class A | ||||||||
| Actual | $1,000.00 | $1,017.10 | 1.38% | $7.02 | ||||
| Hypothetical (b) | $1,000.00 | $1,018.25 | 1.38% | $7.02 | ||||
| Class C | ||||||||
| Actual | $1,000.00 | $1,013.00 | 2.20% | $11.16 | ||||
| Hypothetical (b) | $1,000.00 | $1,014.12 | 2.20% | $11.17 | ||||
| Class I | ||||||||
| Actual | $1,000.00 | $1,019.20 | 0.95% | $4.84 | ||||
| Hypothetical (b) | $1,000.00 | $1,020.42 | 0.95% | $4.84 | ||||
| Class Y | ||||||||
| Actual | $1,000.00 | $1,018.40 | 1.13% | $5.75 | ||||
| Hypothetical (b) | $1,000.00 | $1,019.51 | 1.13% | $5.75 | ||||
| International Investors Gold Fund | ||||||||
| Class A | ||||||||
| Actual | $1,000.00 | $1,045.00 | 1.43% | $7.37 | ||||
| Hypothetical (b) | $1,000.00 | $1,018.00 | 1.43% | $7.27 | ||||
| Class C | ||||||||
| Actual | $1,000.00 | $1,040.60 | 2.20% | $11.32 | ||||
| Hypothetical (b) | $1,000.00 | $1,014.12 | 2.20% | $11.17 | ||||
| Class I | ||||||||
| Actual | $1,000.00 | $1,047.20 | 1.00% | $5.16 | ||||
| Hypothetical (b) | $1,000.00 | $1,020.16 | 1.00% | $5.09 | ||||
| Class Y | ||||||||
| Actual | $1,000.00 | $1,046.60 | 1.10% | $5.67 | ||||
| Hypothetical (b) | $1,000.00 | $1,019.66 | 1.10% | $5.60 | ||||
| VanEck Morningstar Wide Moat Fund | ||||||||
| Class I | ||||||||
| Actual | $1,000.00 | $1,072.60 | 0.59% | $3.08 | ||||
| Hypothetical (b) | $1,000.00 | $1,022.23 | 0.59% | $3.01 | ||||
| Class Z | ||||||||
| Actual | $1,000.00 | $1,073.10 | 0.49% | $2.56 | ||||
| Hypothetical (b) | $1,000.00 | $1,022.74 | 0.49% | $2.50 |
| (a) | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended December 31, 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 |
| 32 |
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2023
| Par (000’s | ) | Value | ||||||
| Short-Term Investments: 102.9% | ||||||||
| United States Treasury Obligations: 97.5% | ||||||||
| United States Treasury Bills | ||||||||
| 5.30%, 05/09/24 (a) | $ | 50,000 | $ | 49,087,437 | ||||
| 5.30%, 03/21/24 | 6,000 | 5,931,708 | ||||||
| 5.30%, 04/02/24 | 30,000 | 29,605,382 | ||||||
| 5.31%, 03/12/24 (a) | 25,000 | 24,747,562 | ||||||
| 5.32%, 05/02/24 (a) | 55,000 | 54,047,550 | ||||||
| 5.32%, 02/06/24 | 55,000 | 54,706,143 | ||||||
| 5.33%, 01/11/24 (a) | 35,000 | 34,948,910 | ||||||
| 5.33%, 03/07/24 | 30,000 | 29,718,265 | ||||||
| 5.38%, 02/20/24 (a) | 54,000 | 53,602,125 | ||||||
| 5.39%, 03/28/24 (a) | 50,000 | 49,379,874 | ||||||
| 5.41%, 01/23/24 | 22,500 | 22,426,644 | ||||||
| 5.41%, 02/13/24 (a) | 40,000 | 39,744,867 | ||||||
| 5.42%, 01/04/24 (a) † | 35,000 | 34,984,667 | ||||||
| 482,931,134 | ||||||||
| Number of Shares | Value | |||||||
| Money Market Fund: 5.4% | ||||||||
| Invesco Treasury Portfolio - Institutional Class | 26,791,087 | $ | 26,791,087 | |||||
| Total Investments Before Collateral for Securities Loaned: 102.9% (Cost: $509,628,410) | 509,722,221 | |||||||
| Number of Shares | Value | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 3.0% | ||||||||
| Money Market Fund: 3.0% (Cost: $14,688,716) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 14,688,716 | 14,688,716 | ||||||
| Total Short-Term Investments: 105.9% (Cost: $524,317,126) | 524,410,937 | |||||||
| Liabilities in excess of other assets: (5.9)% | (29,244,330) | |||||||
| NET ASSETS: 100.0% | $ | 495,166,607 | ||||||
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 | $515,087,000 | 5.80% | Monthly | 01/03/24 | $(16,972,840) | 3.4% |
Footnotes:
| (a) | All or a portion of these securities are segregated for swap collateral. Total value of securities segregated is $99,089,072. |
| † | Security fully or partially on loan. Total market value of securities on loan is $14,392,775. |
| (b) | The rate shown reflects the rate in effect at the end of the reporting period: Secured Overnight Financing Rate + 0.40%. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Government | 94.7 | % | $ | 482,931,134 | ||||
| Money Market Fund | 5.3 | 26,791,087 | ||||||
| 100.0 | % | $ | 509,722,221 | |||||
The summary of inputs used to value the Fund’s investments as of December 31, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| United States Treasury Obligations | $ | — | $ | 482,931,134 | $ | — | $ | 482,931,134 | ||||||||
| Money Market Funds | 41,479,803 | — | — | 41,479,803 | ||||||||||||
| Total Investments | $ | 41,479,803 | $ | 482,931,134 | $ | — | $ | 524,410,937 | ||||||||
| Other Financial Instruments: | ||||||||||||||||
| Total Return Swap Contracts | $ | — | $ | (16,972,840) | $ | — | $ | (16,972,840) | ||||||||
See Notes to Financial Statements
| 33 |
SCHEDULE OF INVESTMENTS
December 31, 2023
| Par (000’s | ) | Value | ||||||||
| CORPORATE BONDS: 24.1% | ||||||||||
| Brazil: 0.8% | ||||||||||
CSN Inova Ventures Reg S 6.75%, 01/28/28 |
USD | 737 | $ | 720,378 | ||||||
| British Virgin Islands: 0.3% | ||||||||||
Sino-Ocean Land Treasure Finance I Ltd. Reg S 6.00%, 07/30/24 (d) * |
USD | 3,005 | 282,109 | |||||||
| Cayman Islands: 1.9% | ||||||||||
CK Hutchison Europe Finance 21 Ltd. Reg S 1.00%, 11/02/33 |
EUR | 901 | 765,438 | |||||||
EDO Sukuk Ltd. 144A 5.88%, 09/21/33 |
USD | 217 | 224,036 | |||||||
Siam Commercial Bank PCL Reg S 4.40%, 02/11/29 |
USD | 613 | 597,549 | |||||||
| 1,587,023 | ||||||||||
| China: 1.0% | ||||||||||
| Country Garden Holdings Co. Ltd. Reg S | ||||||||||
| 5.12%, 01/17/25 (d) * | USD | 1,298 | 101,504 | |||||||
| 6.50%, 04/08/24 (d) * | USD | 1,386 | 122,661 | |||||||
| Longfor Group Holdings Ltd. Reg S | ||||||||||
| 3.85%, 01/13/32 | USD | 200 | 81,563 | |||||||
| 3.95%, 09/16/29 | USD | 446 | 205,609 | |||||||
| 4.50%, 01/16/28 | USD | 708 | 367,350 | |||||||
| 878,687 | ||||||||||
| Colombia: 1.3% | ||||||||||
Ecopetrol SA 8.88%, 01/13/33 |
USD | 984 | 1,070,429 | |||||||
| Hong Kong: 2.6% | ||||||||||
| Fortune Star BVI Ltd. Reg S | ||||||||||
| 5.00%, 05/18/26 | USD | 333 | 244,272 | |||||||
| 5.05%, 01/27/27 | USD | 456 | 302,184 | |||||||
Huarong Finance 2017 Co. Ltd. Reg S 4.75%, 04/27/27 |
USD | 289 | 269,044 | |||||||
Huarong Finance II Co. Ltd. Reg S 4.88%, 11/22/26 |
USD | 259 | 246,053 | |||||||
| Vanke Real Estate Hong Kong Co. Ltd. Reg S | ||||||||||
| 3.50%, 11/12/29 | USD | 782 | 461,242 | |||||||
| 3.98%, 11/09/27 | USD | 354 | 238,437 | |||||||
Yanlord Land HK Co. Ltd. Reg S 5.12%, 05/20/26 |
USD | 756 | 440,311 | |||||||
| 2,201,543 | ||||||||||
| India: 1.5% | ||||||||||
Adani Renewable Energy RJ Ltd./ Kodangal Solar Parks Pvt Ltd. / Wardha Solar Maharashtra 144A 4.62%, 10/15/39 |
USD | 477 | 374,702 | |||||||
| Par (000’s | ) | Value | ||||||||
| India (continued) | ||||||||||
Adani Renewable Energy RJ Ltd./Kodangal Solar Parks Pvt Ltd/Wardha Solar Maharash Reg S 4.62%, 10/15/39 | USD | 499 | $ | 391,922 | ||||||
JSW Hydro Energy Ltd. Reg S 4.12%, 05/18/31 | USD | 568 | 495,803 | |||||||
| 1,262,427 | ||||||||||
| Indonesia: 0.7% | ||||||||||
Star Energy Geothermal Darajat II / Star Energy Geothermal Salak Reg S 4.85%, 10/14/38 | USD | 325 | 298,053 | |||||||
Star Energy Geothermal Wayang Windu Ltd. Reg S 6.75%, 04/24/33 | USD | 264 | 264,452 | |||||||
| 562,505 | ||||||||||
| Luxembourg: 0.4% | ||||||||||
Minerva Luxembourg SA Reg S 4.38%, 03/18/31 | USD | 408 | 336,761 | |||||||
| Malaysia: 1.1% | ||||||||||
Petronas Capital Ltd. Reg S 4.50%, 03/18/45 | USD | 1,050 | 967,613 | |||||||
| Mauritius: 0.2% | ||||||||||
India Clean Energy Holdings 144A 4.50%, 04/18/27 | USD | 68 | 59,684 | |||||||
India Clean Energy Holdings Reg S 4.50%, 04/18/27 | USD | 91 | 79,872 | |||||||
| 139,556 | ||||||||||
| Mexico: 4.5% | ||||||||||
Corp. GEO SAB de CV Reg S 9.25%, 06/30/20 (d) * | USD | 380 | 1,068 | |||||||
| Petroleos Mexicanos | ||||||||||
| 6.49%, 01/23/27 | USD | 2,014 | 1,891,612 | |||||||
| 6.84%, 01/23/30 | USD | 2,250 | 1,953,761 | |||||||
| 3,846,441 | ||||||||||
| Nigeria: 0.7% | ||||||||||
SEPLAT Energy Plc 144A 7.75%, 04/01/26 | USD | 629 | 579,938 | |||||||
| Qatar: 1.2% | ||||||||||
Nakilat, Inc. Reg S 6.07%, 12/31/33 | USD | 485 | 501,013 | |||||||
QatarEnergy 144A 3.30%, 07/12/51 | USD | 745 | 545,810 | |||||||
| 1,046,823 | ||||||||||
| Singapore: 0.8% | ||||||||||
Continuum Energy Aura Pte Ltd. 144A 9.50%, 02/24/27 | USD | 162 | 165,216 | |||||||
| SingTel Group Treasury Pte Ltd. Reg S | ||||||||||
| 1.88%, 06/10/30 | USD | 277 | 235,313 | |||||||
| 2.38%, 08/28/29 | USD | 290 | 259,728 | |||||||
| 660,257 | ||||||||||
See Notes to Financial Statements
| 34 |
| Par (000’s | ) | Value | ||||||||
| South Korea: 0.7% | ||||||||||
Export-Import Bank of Korea 5.12%, 01/11/33 | USD | 561 | $ | 583,532 | ||||||
| Thailand: 0.7% | ||||||||||
| GC Treasury Center Co. Ltd. Reg S | ||||||||||
| 4.40%, 03/30/32 | USD | 362 | 330,863 | |||||||
| 5.20%, 03/30/52 | USD | 270 | 233,570 | |||||||
| 564,433 | ||||||||||
| United Arab Emirates: 0.7% | ||||||||||
Abu Dhabi National Energy Co. PJSC 144A 4.70%, 04/24/33 | USD | 627 | 636,389 | |||||||
| United Kingdom: 1.6% | ||||||||||
Endeavour Mining Plc Reg S 5.00%, 10/14/26 | USD | 725 | 671,988 | |||||||
WE Soda Investments Holding Plc 144A 9.50%, 10/06/28 † | USD | 705 | 729,534 | |||||||
| 1,401,522 | ||||||||||
| United States: 1.4% | ||||||||||
AES Panama Generation Holdings SRL Reg S 4.38%, 05/31/30 | USD | 664 | 558,635 | |||||||
Kosmos Energy Ltd. Reg S 7.12%, 04/04/26 | USD | 168 | 160,324 | |||||||
Stillwater Mining Co. Reg S 4.50%, 11/16/29 | USD | 590 | 468,557 | |||||||
| 1,187,516 | ||||||||||
| Total Corporate Bonds (Cost: $20,781,831) | 20,515,882 | |||||||||
| GOVERNMENT OBLIGATIONS: 69.6% | ||||||||||
| Bahrain: 0.8% | ||||||||||
Bahrain Government International Bond 144A 7.75%, 04/18/35 | USD | 645 | 674,798 | |||||||
| Brazil: 4.4% | ||||||||||
| Brazil Notas do Tesouro Nacional, Series F | ||||||||||
| 10.00%, 01/01/25 | BRL | 5,362 | 1,104,875 | |||||||
| 10.00%, 01/01/29 | BRL | 2,810 | 577,331 | |||||||
| 10.00%, 01/01/31 | BRL | 9,939 | 2,022,084 | |||||||
| 3,704,290 | ||||||||||
| Chile: 4.0% | ||||||||||
Bonos de la Tesoreria de la Republica de Chile 144A Reg S 5.00%, 10/01/28 | CLP | 685,000 | 763,963 | |||||||
Bonos de la Tesoreria de la Republica en pesos 144A Reg S 5.30%, 11/01/37 | CLP | 760,000 | 868,967 | |||||||
Chile Government International Bond 3.25%, 09/21/71 | USD | 2,691 | 1,813,416 | |||||||
| 3,446,346 | ||||||||||
| Par (000’s | ) | Value | ||||||||
| China: 1.2% | ||||||||||
| Asian Infrastructure Investment Bank Reg S | ||||||||||
| 2.75%, 03/12/24 | PHP | 6,200 | $ | 111,284 | ||||||
| 4.25%, 01/27/27 | PHP | 50,500 | 888,331 | |||||||
| 999,615 | ||||||||||
| Colombia: 3.4% | ||||||||||
| Colombian TES | ||||||||||
| 9.25%, 05/28/42 | COP | 6,380,000 | 1,494,890 | |||||||
| 13.25%, 02/09/33 | COP | 4,538,000 | 1,390,821 | |||||||
| 2,885,711 | ||||||||||
| Costa Rica: 0.4% | ||||||||||
| Costa Rica Government International Bond Reg S | ||||||||||
| 6.12%, 02/19/31 | USD | 160 | 164,362 | |||||||
| 7.00%, 04/04/44 | USD | 207 | 216,936 | |||||||
| 381,298 | ||||||||||
| Czech Republic: 2.6% | ||||||||||
| Czech Republic Government Bond | ||||||||||
| 2.00%, 10/13/33 | CZK | 40,090 | 1,543,412 | |||||||
| 6.00%, 02/26/26 | CZK | 1,600 | 74,821 | |||||||
Czech Republic Government Bond Reg S 2.40%, 09/17/25 | CZK | 14,370 | 621,509 | |||||||
| 2,239,742 | ||||||||||
| Democratic Republic of the Congo: 2.0% | ||||||||||
Congolese International Bond Reg S 6.00%, 06/30/29 (s) | USD | 2,108 | 1,726,167 | |||||||
| Dominican Republic: 1.9% | ||||||||||
Dominican Republic International Bond Reg S 9.75%, 06/05/26 | DOP | 92,491 | 1,594,264 | |||||||
| Egypt: 1.4% | ||||||||||
| Egypt Government International Bond 144A | ||||||||||
| 3.88%, 02/16/26 | USD | 763 | 625,641 | |||||||
| 5.25%, 10/06/25 | USD | 634 | 578,157 | |||||||
| 1,203,798 | ||||||||||
| Gabon: 0.1% | ||||||||||
Gabon Government International Bond 144A 6.95%, 06/16/25 | USD | 66 | 63,116 | |||||||
| Ghana: 0.6% | ||||||||||
Ghana Government International Bond Reg S 8.75%, 03/11/61 (d) * | USD | 1,143 | 496,382 | |||||||
| Hungary: 2.4% | ||||||||||
| Hungary Government Bond | ||||||||||
| 7.00%, 10/24/35 | HUF | 347,000 | 1,057,564 | |||||||
| 9.50%, 10/21/26 | HUF | 326,370 | 1,020,058 | |||||||
| 2,077,622 | ||||||||||
| Indonesia: 4.1% | ||||||||||
| Indonesia Treasury Bond | ||||||||||
| 6.38%, 04/15/32 | IDR | 22,704,000 | 1,459,694 | |||||||
| 7.00%, 09/15/30 | IDR | 3,501,000 | 232,430 | |||||||
See Notes to Financial Statements
| 35 |
EMERGING MARKETS BOND FUND
SCHEDULE OF INVESTMENTS
(continued)
| Par (000’s | ) | Value | ||||||||
| Indonesia (continued) | ||||||||||
| 7.12%, 06/15/43 | IDR | 26,440,000 | $ | 1,783,614 | ||||||
| 3,475,738 | ||||||||||
| Ivory Coast: 0.6% | ||||||||||
| Ivory Coast Government International Bond Reg S | ||||||||||
| 5.75%, 12/31/32 (s) | USD | 86 | 81,110 | |||||||
| 6.12%, 06/15/33 | USD | 462 | 426,269 | |||||||
| 507,379 | ||||||||||
| Jamaica: 0.3% | ||||||||||
Jamaica Government International Bond 7.62%, 07/09/25 | USD | 245 | 250,355 | |||||||
| Kuwait: 0.4% | ||||||||||
Kuwait International Government Bond 144A 3.50%, 03/20/27 | USD | 185 | 180,948 | |||||||
Kuwait International Government Bond Reg S 3.50%, 03/20/27 | USD | 212 | 207,357 | |||||||
| 388,305 | ||||||||||
| Malaysia: 4.5% | ||||||||||
| Malaysia Government Bond | ||||||||||
| 4.46%, 03/31/53 | MYR | 11,464 | 2,580,718 | |||||||
| 4.89%, 06/08/38 | MYR | 5,091 | 1,216,881 | |||||||
| 3,797,599 | ||||||||||
| Mexico: 2.9% | ||||||||||
Mexican Bonos 7.50%, 05/26/33 | MXN | 46,510 | 2,482,688 | |||||||
| Mongolia: 1.4% | ||||||||||
Mongolia Government International Bond 144A 7.88%, 06/05/29 | USD | 474 | 485,372 | |||||||
Mongolia Government International Bond Reg S 4.45%, 07/07/31 | USD | 862 | 724,402 | |||||||
| 1,209,774 | ||||||||||
| Morocco: 0.6% | ||||||||||
Morocco Government International Bond Reg S 2.00%, 09/30/30 | EUR | 500 | 477,671 | |||||||
| Mozambique: 1.8% | ||||||||||
Mozambique International Bond Reg S 9.00%, 09/15/31 (s) | USD | 1,775 | 1,516,365 | |||||||
| Nigeria: 1.5% | ||||||||||
| Nigeria Government International Bond 144A | ||||||||||
| 6.50%, 11/28/27 | USD | 714 | 654,532 | |||||||
| 7.14%, 02/23/30 | USD | 690 | 623,456 | |||||||
| 1,277,988 | ||||||||||
| Oman: 0.9% | ||||||||||
Oman Government International Bond 144A 6.75%, 01/17/48 | USD | 760 | 797,126 | |||||||
| Par (000’s | ) | Value | ||||||||
| Paraguay: 0.6% | ||||||||||
Paraguay Government International Bond Reg S 5.40%, 03/30/50 | USD | 593 | $ | 528,808 | ||||||
| Peru: 3.9% | ||||||||||
| Peru Government Bond | ||||||||||
| 5.35%, 08/12/40 | PEN | 4,738 | 1,098,099 | |||||||
| 5.40%, 08/12/34 | PEN | 8,938 | 2,185,266 | |||||||
| 3,283,365 | ||||||||||
| Philippines: 1.1% | ||||||||||
Philippine Government International Bond 6.25%, 01/14/36 | PHP | 56,539 | 960,340 | |||||||
| Poland: 1.7% | ||||||||||
Republic of Poland Government International Bond 5.50%, 04/04/53 | USD | 1,388 | 1,450,871 | |||||||
| Qatar: 1.6% | ||||||||||
Qatar Government International Bond 144A 5.10%, 04/23/48 | USD | 1,338 | 1,357,572 | |||||||
| Saudi Arabia: 1.6% | ||||||||||
Saudi Government International Bond Reg S 4.62%, 10/04/47 | USD | 1,490 | 1,340,853 | |||||||
| South Africa: 3.9% | ||||||||||
| Republic of South Africa Government Bond | ||||||||||
| 8.50%, 01/31/37 | ZAR | 33,259 | 1,424,633 | |||||||
| 8.88%, 02/28/35 | ZAR | 11,800 | 545,409 | |||||||
Republic of South Africa Government International Bond 7.30%, 04/20/52 | USD | 1,379 | 1,309,920 | |||||||
| 3,279,962 | ||||||||||
| South Korea: 1.0% | ||||||||||
Korea Treasury Bond 3.25%, 03/10/28 | KRW | 1,115,000 | 868,247 | |||||||
| Sri Lanka: 1.5% | ||||||||||
| Sri Lanka Treasury Bills | ||||||||||
| 0.00%, 03/01/24 ^ | LKR | 96,000 | 290,180 | |||||||
| 0.00%, 03/08/24 ^ | LKR | 125,000 | 376,791 | |||||||
| 0.01%, 02/09/24 | LKR | 192,000 | 585,089 | |||||||
| 1,252,060 | ||||||||||
| Suriname: 1.2% | ||||||||||
| Suriname Government International Bond 144A | ||||||||||
| 0.00%, 12/31/50 ^ | USD | 107 | 50,290 | |||||||
| 7.95%, 07/15/33 | USD | 1,086 | 943,517 | |||||||
| 993,807 | ||||||||||
| Turkey: 2.5% | ||||||||||
Istanbul Metropolitan Municipality 144A 10.50%, 12/06/28 | USD | 266 | 282,958 | |||||||
Turkiye Government Bond 1.50%, 06/18/25 | TRY | 20,163 | 719,115 | |||||||
See Notes to Financial Statements
| 36 |
| Par (000’s | ) | Value | ||||||||
| Turkey (continued) | ||||||||||
Turkiye Government International Bond 9.88%, 01/15/28 | USD | 995 | $ | 1,106,557 | ||||||
| 2,108,630 | ||||||||||
| United Arab Emirates: 0.6% | ||||||||||
Abu Dhabi Government International Bond 144A 3.88%, 04/16/50 | USD | 436 | 366,541 | |||||||
Abu Dhabi Government International Bond Reg S 4.12%, 10/11/47 | USD | 200 | 175,203 | |||||||
| 541,744 | ||||||||||
| Uruguay: 2.2% | ||||||||||
Uruguay Government International Bond 9.75%, 07/20/33 | UYU | 8,500 | 220,258 | |||||||
Uruguay Government International Bond Reg S 8.50%, 03/15/28 | UYU | 41,248 | 1,019,443 | |||||||
Uruguay Monetary Regulation Bill 0.00%, 05/31/24 ^ | UYU | 24,131 | 594,881 | |||||||
| 1,834,582 | ||||||||||
| Uzbekistan: 0.2% | ||||||||||
Republic of Uzbekistan International Bond Reg S 3.90%, 10/19/31 | USD | 189 | 159,220 | |||||||
| Zambia: 1.8% | ||||||||||
| Zambia Government Bond | ||||||||||
| Par (000’s | ) | Value | ||||||||
| Zambia (continued) | ||||||||||
| 13.00%, 12/17/28 | ZMW | 8,500 | $ | 237,648 | ||||||
| 13.00%, 01/25/31 | ZMW | 43,644 | 1,096,278 | |||||||
| 13.00%, 12/27/31 | ZMW | 890 | 21,396 | |||||||
| 13.00%, 03/23/32 | ZMW | 7,500 | 175,337 | |||||||
| 1,530,659 | ||||||||||
| Total Government
Obligations (Cost: $55,835,361) | 59,164,857 | |||||||||
| Number of Shares | ||||||||||
| MONEY MARKET FUND: 3.3% (Cost: $2,791,071) | ||||||||||
| Invesco Treasury Portfolio - Institutional Class | 2,791,071 | 2,791,071 | ||||||||
| Total Investments Before Collateral for Securities Loaned: 97.0% (Cost: $79,408,263) | 82,471,810 | |||||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.1% | ||||||||||
| Money Market Fund: 0.1% (Cost: $103,084) | ||||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 103,084 | 103,084 | ||||||||
| Total Investments: 97.1% (Cost: $79,511,347) | 82,574,894 | |||||||||
| Other assets less liabilities: 2.9% | 2,443,890 | |||||||||
| NET ASSETS: 100.0% | $ | 85,018,784 | ||||||||
Definitions:
| BRL | Brazilian Real |
| CLP | Chilean Peso |
| COP | Colombian Peso |
| CZK | Czech Koruna |
| DOP | Dominican Peso |
| EUR | Euro |
| HUF | Hungarian Forint |
| IDR | Indonesian Rupiah |
| KRW | Korean Won |
| LKR | Sri Lanka Rupee |
| MXN | Mexican Peso |
| MYR | Malaysian Ringgit |
| PEN | Peruvian Nuevo Sol |
| PHP | Philippine Peso |
| TRY | Turkish Lira |
| USD | United States Dollar |
| UYU | Uruguayan Peso |
| ZAR | South African Rand |
| ZMW | Zambian Kwacha |
Footnotes:
| * | Non-income producing |
See Notes to Financial Statements
| 37 |
EMERGING MARKETS BOND FUND
SCHEDULE OF INVESTMENTS
(continued)
| (d) | Security in default |
| † | Security fully or partially on loan. Total market value of securities on loan is $97,271. |
| (s) | The rate shown reflects the rate in effect at the end of the reporting period. Coupon adjusts periodically based upon a predetermined schedule |
| ^ | 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. |
| 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. These securities have an aggregate value of $12,632,263, or 14.9% of net assets. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Government | 71.7 | % | $ | 59,164,857 | ||||
| Energy | 9.3 | 7,670,499 | ||||||
| Financials | 4.8 | 3,999,915 | ||||||
| Utilities | 3.7 | 3,026,675 | ||||||
| Basic Materials | 3.3 | 2,686,333 | ||||||
| Real Estate | 2.5 | 2,076,621 | ||||||
| Technology | 0.6 | 495,042 | ||||||
| Consumer Non-Cyclicals | 0.4 | 336,761 | ||||||
| Industrials | 0.3 | 224,036 | ||||||
| Money Market Fund | 3.4 | 2,791,071 | ||||||
| 100.0 | % | $ | 82,471,810 | |||||
The summary of inputs used to value the Fund’s investments as of December 31, 2023 is as follows:
| Level 2 | Level 3 | |||||||||||||||
| Level 1 | Significant | Significant | ||||||||||||||
| Quoted | Observable | Unobservable | ||||||||||||||
| Prices | Inputs | Inputs | Value | |||||||||||||
| Corporate Bonds * | $ | — | $ | 20,515,882 | $ | — | $ | 20,515,882 | ||||||||
| Government Obligations * | — | 59,164,857 | — | 59,164,857 | ||||||||||||
| Money Market Funds | 2,894,155 | — | — | 2,894,155 | ||||||||||||
| Total Investments | $ | 2,894,155 | $ | 79,680,739 | $ | — | $ | 82,574,894 | ||||||||
| * | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
| 38 |
SCHEDULE OF INVESTMENTS
December 31, 2023
| Number of Shares | Value | |||||||
| COMMON STOCKS: 95.9% | ||||||||
| Argentina: 5.3% | ||||||||
| MercadoLibre, Inc. (USD) * | 26,350 | $ | 41,410,079 | |||||
| Brazil: 10.6% | ||||||||
| Arcos Dorados Holdings, Inc. (USD) | 520,000 | 6,598,800 | ||||||
| Clear Sale SA * | 2,342,200 | 1,807,055 | ||||||
| Fleury SA * | 2,266,215 | 8,414,791 | ||||||
| JSL SA | 10,947,600 | 28,079,285 | ||||||
| Movida Participacoes SA | 3,952,800 | 9,663,720 | ||||||
| NU Holdings Ltd. (USD) * | 620,000 | 5,164,600 | ||||||
| Rede D’Or Sao Luiz SA 144A * | 303,900 | 1,800,494 | ||||||
| Vamos Locacao de Caminhoes Maquinas e Equipamentos SA | 10,372,800 | 21,484,888 | ||||||
| 83,013,633 | ||||||||
| China: 21.8% | ||||||||
| Baidu, Inc. (ADR) * | 38,000 | 4,525,420 | ||||||
| BYD Co. Ltd. (HKD) | 80,000 | 2,206,771 | ||||||
| China Education Group Holdings Ltd. (HKD) | 22,588,000 | 14,174,593 | ||||||
| Fu Shou Yuan International Group Ltd. (HKD) | 5,882,000 | 3,992,241 | ||||||
| Full Truck Alliance Co. Ltd. (ADR) * † | 1,135,000 | 7,956,350 | ||||||
| Galaxy Entertainment Group Ltd. (HKD) | 500,000 | 2,800,431 | ||||||
| JD.com, Inc. (HKD) | 365,938 | 5,285,271 | ||||||
| KE Holdings, Inc. (ADR) | 837,900 | 13,582,359 | ||||||
| Meituan (HKD) 144A * | 340,650 | 3,576,408 | ||||||
| MINISO Group Holding Ltd. (ADR) | 451,000 | 9,200,400 | ||||||
| NetEase, Inc. (HKD) | 408,900 | 7,377,202 | ||||||
| Ping An Bank Co. Ltd. | 7,451,969 | 9,821,114 | ||||||
| Prosus NV (EUR) | 1,075,735 | 32,018,495 | ||||||
| Shanghai Baosight Software Co. Ltd. | 952,673 | 6,523,100 | ||||||
| Shenzhen Inovance Technology Co. Ltd. | 623,364 | 5,526,406 | ||||||
| Shenzhou International Group Holdings Ltd. (HKD) | 462,800 | 4,747,800 | ||||||
| Sungrow Power Supply Co. Ltd. | 492,246 | 6,049,122 | ||||||
| SUPCON Technology Co. Ltd. | 366,995 | 2,334,674 | ||||||
| Tencent Holdings Ltd. (HKD) | 196,500 | 7,418,828 | ||||||
| Wuxi Biologics Cayman, Inc. (HKD) 144A * | 1,831,000 | 6,925,306 | ||||||
| Yifeng Pharmacy Chain Co. Ltd. | 993,053 | 5,581,060 | ||||||
| Yum China Holdings, Inc. (HKD) | 124,800 | 5,313,667 | ||||||
| Zai Lab Ltd. (HKD) * | 1,515,700 | 4,102,834 | ||||||
| 171,039,852 | ||||||||
| Egypt: 2.0% | ||||||||
| Cleopatra Hospital * | 27,083,115 | 4,054,691 | ||||||
| Commercial International Bank - Egypt | 4,857,913 | 11,459,707 | ||||||
| 15,514,398 | ||||||||
| Number of Shares | Value | |||||||
| Georgia: 4.4% | ||||||||
| Bank of Georgia Group Plc (GBP) | 574,246 | $ | 29,095,519 | |||||
| Georgia Capital Plc (GBP) * | 414,897 | 5,404,832 | ||||||
| 34,500,351 | ||||||||
| Germany: 0.9% | ||||||||
| Delivery Hero SE 144A * | 262,800 | 7,233,027 | ||||||
| Greece: 0.7% | ||||||||
| Eurobank Ergasias Services and Holdings SA * | 3,200,000 | 5,685,523 | ||||||
| Hungary: 1.9% | ||||||||
| OTP Bank Nyrt | 326,400 | 14,868,282 | ||||||
| India: 17.1% | ||||||||
| Cholamandalam Investment and Finance Co. Ltd. | 618,200 | 9,352,024 | ||||||
| Delhivery Ltd. * | 1,180,757 | 5,514,418 | ||||||
| HDFC Bank Ltd. | 993,022 | 20,326,000 | ||||||
| HDFC Bank Ltd. (ADR) | 280,000 | 18,790,800 | ||||||
| Jio Financial Services Ltd. * | 1,576,581 | 4,407,753 | ||||||
| Oberoi Realty Ltd. | 596,100 | 10,215,692 | ||||||
| Phoenix Mills Ltd. | 572,300 | 15,471,012 | ||||||
| Reliance Industries Ltd. | 1,393,581 | 43,288,193 | ||||||
| Sterling and Wilson Renewable * | 1,282,760 | 6,581,968 | ||||||
| 133,947,860 | ||||||||
| Indonesia: 0.8% | ||||||||
| Bank BTPN Syariah Tbk PT | 38,406,000 | 4,215,274 | ||||||
| Bank Rakyat Indonesia Persero Tbk PT | 6,300,000 | 2,341,506 | ||||||
| 6,556,780 | ||||||||
| Kazakhstan: 2.9% | ||||||||
| Kaspi.kz JSC (USD) (GDR) | 244,658 | 22,508,536 | ||||||
| Mexico: 3.2% | ||||||||
| Qualitas Controladora SAB de CV | 391,558 | 3,964,003 | ||||||
| Regional SAB de CV | 2,208,200 | 21,117,107 | ||||||
| 25,081,110 | ||||||||
| Philippines: 5.0% | ||||||||
| Bloomberry Resorts Corp. * | 75,387,000 | 13,396,082 | ||||||
| International Container Terminal Services, Inc. | 5,877,340 | 26,197,064 | ||||||
| 39,593,146 | ||||||||
| Poland: 1.3% | ||||||||
| InPost SA (EUR) * | 739,300 | 10,235,959 | ||||||
| Russia: 0.0% | ||||||||
| Detsky Mir PJSC 144A *∞ | 11,544,900 | 0 | ||||||
| Sberbank of Russia PJSC ∞ | 5,555,460 | 0 | ||||||
| 0 | ||||||||
| South Korea: 1.5% | ||||||||
| LG Chem Ltd. * | 16,500 | 6,346,284 | ||||||
| Samsung Biologics Co. Ltd. 144A * | 8,750 | 5,147,448 | ||||||
| 11,493,732 | ||||||||
| Taiwan: 10.1% | ||||||||
| Chroma ATE, Inc. | 1,225,000 | 8,481,302 | ||||||
| MediaTek, Inc. | 136,000 | 4,490,707 | ||||||
| Poya International Co. Ltd. | 439,304 | 7,893,517 | ||||||
See Notes to Financial Statements
| 39 |
EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS
(continued)
| Number of Shares | Value | |||||||
| Taiwan (continued) | ||||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 2,911,000 | $ | 55,808,347 | |||||
| Wiwynn Corp. | 50,000 | 2,960,525 | ||||||
| 79,634,398 | ||||||||
| Tanzania: 1.3% | ||||||||
| Helios Towers Plc (GBP) * | 8,770,647 | 9,949,761 | ||||||
| Turkey: 3.6% | ||||||||
| MLP Saglik Hizmetleri AS 144A * | 2,825,148 | 14,284,524 | ||||||
| Sok Marketler Ticaret AS | 5,261,840 | 9,594,731 | ||||||
| Tofas Turk Otomobil Fabrikasi AS | 643,700 | 4,581,988 | ||||||
| 28,461,243 | ||||||||
| United Arab Emirates: 0.6% | ||||||||
| Americana Restaurants International Plc | 5,702,000 | 4,859,372 | ||||||
| United Kingdom: 0.9% | ||||||||
| ReNew Energy Global Plc (USD) * † | 881,000 | 6,748,461 | ||||||
| Total Common Stocks (Cost: $636,068,615) | 752,335,503 | |||||||
| Number of Shares | Value | |||||||
| PREFERRED SECURITIES: 4.8% | ||||||||
| Brazil: 0.1% | ||||||||
| Raizen SA | 1,220,000 | $ | 1,011,842 | |||||
| South Korea: 4.7% | ||||||||
| Samsung Electronics Co. Ltd. | 755,107 | 36,385,966 | ||||||
| Total Preferred Securities (Cost: $42,912,125) | 37,397,808 | |||||||
| Total Investments Before Collateral for Securities Loaned: 100.7% (Cost: $678,980,740) | 789,733,311 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.1% | ||||||||
| Money Market Fund: 0.1% (Cost: $749,359) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 749,359 | 749,359 | ||||||
| Total Investments: 100.8% (Cost: $679,730,099) | 790,482,670 | |||||||
| Liabilities in excess of other assets: (0.8)% | (6,353,770) | |||||||
| NET ASSETS: 100.0% | $ | 784,128,900 | ||||||
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 fully or partially on loan. Total market value of securities on loan is $7,011,192. |
| ∞ | 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. |
| 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. These securities have an aggregate value of $38,967,207, or 5.0% of net assets. |
See Notes to Financial Statements
| 40 |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Financials | 23.9 | % | $ | 188,522,580 | ||||
| Consumer Discretionary | 21.4 | 169,288,941 | ||||||
| Industrials | 16.1 | 127,289,180 | ||||||
| Information Technology | 15.0 | 118,791,676 | ||||||
| Health Care | 5.7 | 44,730,088 | ||||||
| Energy | 5.6 | 44,300,036 | ||||||
| Real Estate | 5.0 | 39,269,063 | ||||||
| Communication Services | 3.7 | 29,271,212 | ||||||
| Consumer Staples | 1.9 | 15,175,791 | ||||||
| Utilities | 0.9 | 6,748,460 | ||||||
| Materials | 0.8 | 6,346,284 | ||||||
| 100.0 | % | $ | 789,733,311 | |||||
The summary of inputs used to value the Fund’s investments as of December 31, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Argentina | $ | 41,410,079 | $ | — | $ | — | $ | 41,410,079 | ||||||||
| Brazil | 11,763,400 | 71,250,233 | — | 83,013,633 | ||||||||||||
| China | 35,264,529 | 135,775,323 | — | 171,039,852 | ||||||||||||
| Egypt | — | 15,514,398 | — | 15,514,398 | ||||||||||||
| Georgia | 34,500,351 | — | — | 34,500,351 | ||||||||||||
| Germany | — | 7,233,027 | — | 7,233,027 | ||||||||||||
| Greece | — | 5,685,523 | — | 5,685,523 | ||||||||||||
| Hungary | — | 14,868,282 | — | 14,868,282 | ||||||||||||
| India | 18,790,800 | 115,157,060 | — | 133,947,860 | ||||||||||||
| Indonesia | — | 6,556,780 | — | 6,556,780 | ||||||||||||
| Kazakhstan | 22,508,536 | — | — | 22,508,536 | ||||||||||||
| Mexico | 25,081,110 | — | — | 25,081,110 | ||||||||||||
| Philippines | 13,396,083 | 26,197,064 | — | 39,593,147 | ||||||||||||
| Poland | — | 10,235,959 | — | 10,235,959 | ||||||||||||
| Russia | — | — | 0 | 0 | ||||||||||||
| South Korea | — | 11,493,732 | — | 11,493,732 | ||||||||||||
| Taiwan | — | 79,634,398 | — | 79,634,398 | ||||||||||||
| Tanzania | 9,949,761 | — | — | 9,949,761 | ||||||||||||
| Turkey | 14,284,524 | 14,176,719 | — | 28,461,243 | ||||||||||||
| United Arab Emirates | 4,859,372 | — | — | 4,859,372 | ||||||||||||
| United Kingdom | 6,748,460 | — | — | 6,748,460 | ||||||||||||
| Preferred Securities * | — | 37,397,808 | — | 37,397,808 | ||||||||||||
| Money Market Fund | 749,359 | — | — | 749,359 | ||||||||||||
| Total Investments | $ | 239,306,364 | $ | 551,176,306 | $ | 0 | $ | 790,482,670 | ||||||||
| * | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
| 41 |
ENVIRONMENTAL SUSTAINABILITY FUND
SCHEDULE OF INVESTMENTS
December 31, 2023
| Number of Shares | Value | |||||||
| COMMON STOCKS: 93.4% | ||||||||
| Australia: 1.1% | ||||||||
| Piedmont Lithium, Inc. (USD) * | 1,460 | $ | 41,216 | |||||
| Brazil: 0.4% | ||||||||
| Yara International ASA (NOK) | 470 | 16,698 | ||||||
| British Virgin Islands: 0.1% | ||||||||
| Talon Metals Corp. (CAD) * | 17,050 | 2,316 | ||||||
| Canada: 0.9% | ||||||||
| Ballard Power Systems, Inc. (USD) * † | 1,900 | 7,030 | ||||||
| Euro Manganese, Inc. (AUD) * | 92,600 | 6,310 | ||||||
| Li-Cycle Holdings Corp. (USD) * † | 2,760 | 1,614 | ||||||
| Maple Leaf Foods, Inc. | 1,040 | 19,810 | ||||||
| 34,764 | ||||||||
| China: 4.8% | ||||||||
| BYD Co. Ltd. (HKD) † | 4,500 | 124,130 | ||||||
| Contemporary Amperex Technology Co. Ltd. | 1,800 | 41,242 | ||||||
| Flat Glass Group Co. Ltd. (HKD) | 12,000 | 20,255 | ||||||
| 185,627 | ||||||||
| Denmark: 5.0% | ||||||||
| Novozymes A/S | 1,030 | 56,623 | ||||||
| Orsted AS 144A | 840 | 46,567 | ||||||
| Vestas Wind Systems A/S * | 2,800 | 88,597 | ||||||
| 191,787 | ||||||||
| Finland: 2.5% | ||||||||
| Neste Oyj | 2,710 | 96,340 | ||||||
| France: 7.0% | ||||||||
| Cie de Saint-Gobain SA | 440 | 32,449 | ||||||
| Engie SA | 6,800 | 119,791 | ||||||
| Legrand SA | 520 | 54,151 | ||||||
| Nexans SA | 730 | 64,044 | ||||||
| 270,435 | ||||||||
| Germany: 4.0% | ||||||||
| Infineon Technologies AG | 3,710 | 154,938 | ||||||
| Ireland: 0.5% | ||||||||
| Kerry Group Plc | 230 | 19,964 | ||||||
| Isle of Man: 0.0% | ||||||||
| Agronomics Ltd. * | 14,600 | 1,768 | ||||||
| Italy: 1.5% | ||||||||
| Enel SpA | 7,600 | 56,543 | ||||||
| Japan: 2.7% | ||||||||
| Keyence Corp. | 240 | 105,446 | ||||||
| Jersey, Channel Islands: 2.4% | ||||||||
| Arcadium Lithium Plc (AUD) * † | 12,411 | 94,809 | ||||||
| Netherlands: 1.3% | ||||||||
| OCI NV | 1,780 | 51,587 | ||||||
| South Korea: 3.6% | ||||||||
| LG Energy Solution Ltd. * | 240 | 79,204 | ||||||
| Number of Shares | Value | |||||||
| South Korea (continued) | ||||||||
| Samsung SDI Co. Ltd. | 160 | $ | 58,254 | |||||
| 137,458 | ||||||||
| Spain: 1.3% | ||||||||
| Avangrid, Inc. (USD) | 950 | 30,790 | ||||||
| Soltec Power Holdings SA * † | 4,800 | 18,262 | ||||||
| 49,052 | ||||||||
| Sweden: 4.2% | ||||||||
| Atlas Copco AB | 8,400 | 144,740 | ||||||
| Oatly Group AB (ADR) * † | 12,650 | 14,927 | ||||||
| 159,667 | ||||||||
| Switzerland: 0.8% | ||||||||
| Givaudan SA | 7 | 29,027 | ||||||
| United States: 49.3% | ||||||||
| Array Technologies, Inc. * | 4,550 | 76,440 | ||||||
| Ball Corp. | 1,100 | 63,272 | ||||||
| Beyond Meat, Inc. * † | 340 | 3,026 | ||||||
| Bloom Energy Corp. * † | 1,900 | 28,120 | ||||||
| Bunge Global SA | 490 | 49,466 | ||||||
| CF Industries Holdings, Inc. | 660 | 52,470 | ||||||
| Clean Harbors, Inc. * | 250 | 43,628 | ||||||
| Corteva, Inc. | 340 | 16,293 | ||||||
| Deere & Co. | 400 | 159,947 | ||||||
| Enphase Energy, Inc. * | 260 | 34,356 | ||||||
| Generac Holdings, Inc. * | 310 | 40,064 | ||||||
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. † | 3,235 | 89,221 | ||||||
| Ingredion, Inc. | 210 | 22,791 | ||||||
| International Flavors & Fragrances, Inc. | 190 | 15,384 | ||||||
| John Bean Technologies Corp. | 110 | 10,940 | ||||||
| Lindsay Corp. | 150 | 19,374 | ||||||
| MP Materials Corp. * † | 3,290 | 65,307 | ||||||
| NextEra Energy Partners LP | 730 | 22,199 | ||||||
| Ormat Technologies, Inc. | 1,150 | 87,159 | ||||||
| Pentair Plc | 990 | 71,983 | ||||||
| Plug Power, Inc. * † | 1,300 | 5,850 | ||||||
| Quanta Services, Inc. | 1,330 | 287,013 | ||||||
| Republic Services, Inc. | 690 | 113,788 | ||||||
| SolarEdge Technologies, Inc. * | 390 | 36,504 | ||||||
| Stem, Inc. * † | 10,020 | 38,878 | ||||||
| Sunnova Energy International, Inc. * † | 4,100 | 62,525 | ||||||
| Teradyne, Inc. | 640 | 69,453 | ||||||
| Tesla, Inc. * | 360 | 89,453 | ||||||
| TPI Composites, Inc. * † | 2,500 | 10,350 | ||||||
| Trimble, Inc. * | 1,800 | 95,760 | ||||||
| Xylem, Inc. | 1,000 | 114,360 | ||||||
| 1,895,374 | ||||||||
| Total Common Stocks (Cost: $4,733,343) | 3,594,816 | |||||||
See Notes to Financial Statements
| 42 |
| Number of Shares | Value | |||||||
| MASTER LIMITED PARTNERSHIP: 0.8% (Cost: $45,048) | ||||||||
| Canada: 0.8% | ||||||||
| Brookfield Renewable Partners LP (USD) | 1,200 | $ | 31,536 | |||||
| MONEY MARKET FUND: 6.5% (Cost: $251,299) | ||||||||
| Invesco Treasury Portfolio - Institutional Class | 251,299 | 251,299 | ||||||
| Total Investments Before Collateral for Securities Loaned: 100.7% (Cost: $5,029,690) | 3,877,651 | |||||||
| Number of Shares | Value | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 4.8% | ||||||||
| Money Market Fund: 4.8% (Cost: $183,829) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 183,829 | $ | 183,829 | |||||
| Total Investments: 105.5% (Cost: $5,213,519) | 4,061,480 | |||||||
| Liabilities in excess of other assets: (5.5)% | (210,378) | |||||||
| NET ASSETS: 100.0% | $ | 3,851,102 | ||||||
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 $472,134. |
| 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. These securities have an aggregate value of $46,567, or 1.2% of net assets. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Renewable Energy | 25.0 | % | $ | 968,433 | ||||
| Smart Resource Management | 24.0 | 932,000 | ||||||
| Advanced Materials | 19.6 | 757,179 | ||||||
| Agriculture Technology | 13.9 | 540,721 | ||||||
| Recycling | 5.7 | 222,302 | ||||||
| Water | 5.3 | 205,717 | ||||||
| Money Market Fund | 6.5 | 251,299 | ||||||
| 100.0 | % | $ | 3,877,651 | |||||
See Notes to Financial Statements
| 43 |
ENVIRONMENTAL SUSTAINABILITY FUND
SCHEDULE OF INVESTMENTS
(continued)
The summary of inputs used to value the Fund’s investments as of December 31, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | 41,216 | $ | — | $ | — | $ | 41,216 | ||||||||
| Brazil | — | 16,698 | — | 16,698 | ||||||||||||
| British Virgin Islands | 2,316 | — | — | 2,316 | ||||||||||||
| Canada | 34,764 | — | — | 34,764 | ||||||||||||
| China | — | 185,627 | — | 185,627 | ||||||||||||
| Denmark | — | 191,787 | — | 191,787 | ||||||||||||
| Finland | — | 96,340 | — | 96,340 | ||||||||||||
| France | — | 270,435 | — | 270,435 | ||||||||||||
| Germany | — | 154,938 | — | 154,938 | ||||||||||||
| Ireland | 19,964 | — | — | 19,964 | ||||||||||||
| Isle of Man | 1,768 | — | — | 1,768 | ||||||||||||
| Italy | — | 56,543 | — | 56,543 | ||||||||||||
| Japan | — | 105,446 | — | 105,446 | ||||||||||||
| Jersey, Channel Islands | 94,809 | — | — | 94,809 | ||||||||||||
| Netherlands | — | 51,587 | — | 51,587 | ||||||||||||
| South Korea | — | 137,458 | — | 137,458 | ||||||||||||
| Spain | 30,790 | 18,262 | — | 49,052 | ||||||||||||
| Sweden | 14,927 | 144,740 | — | 159,667 | ||||||||||||
| Switzerland | 29,027 | — | — | 29,027 | ||||||||||||
| United States | 1,895,374 | — | — | 1,895,374 | ||||||||||||
| Master Limited Partnership * | 31,536 | — | — | 31,536 | ||||||||||||
| Money Market Funds | 435,128 | — | — | 435,128 | ||||||||||||
| Total Investments | $ | 2,631,619 | $ | 1,429,861 | $ | — | $ | 4,061,480 | ||||||||
| * | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
| 44 |
SCHEDULE OF INVESTMENTS
December 31, 2023
| Number of Shares | Value | |||||||
| COMMON STOCKS: 98.4% | ||||||||
| Australia: 5.6% | ||||||||
| Glencore Plc (GBP) | 3,467,400 | $ | 20,842,697 | |||||
| Piedmont Lithium, Inc. (USD) * † | 115,300 | 3,254,919 | ||||||
| Rio Tinto Plc (ADR) † | 180,600 | 13,447,476 | ||||||
| 37,545,092 | ||||||||
| Bermuda: 0.8% | ||||||||
| Valaris Ltd. (USD) * | 74,400 | 5,101,608 | ||||||
| Brazil: 5.3% | ||||||||
| JBS S/A | 2,809,700 | 14,264,968 | ||||||
| Vale SA (ADR) | 1,198,100 | 19,001,866 | ||||||
| Yara International ASA (NOK) | 79,900 | 2,838,576 | ||||||
| 36,105,410 | ||||||||
| British Virgin Islands: 0.1% | ||||||||
| Talon Metals Corp. (CAD) * | 3,125,700 | 424,607 | ||||||
| Canada: 12.1% | ||||||||
| Agnico Eagle Mines Ltd. (USD) | 212,206 | 11,639,499 | ||||||
| Alamos Gold, Inc. (USD) | 572,800 | 7,715,616 | ||||||
| Barrick Gold Corp. (USD) | 758,945 | 13,729,315 | ||||||
| Euro Manganese, Inc. (AUD) * | 1,736,389 | 118,326 | ||||||
| Franco-Nevada Corp. (USD) | 78,000 | 8,643,180 | ||||||
| Ivanhoe Mines Ltd. * † | 1,070,000 | 10,376,590 | ||||||
| Kinross Gold Corp. (USD) | 1,784,700 | 10,797,435 | ||||||
| Nouveau Monde Graphite, Inc. (USD) * † | 145,600 | 380,016 | ||||||
| Nutrien Ltd. (USD) | 198,471 | 11,179,871 | ||||||
| Pan American Silver Corp. (USD) | 427,400 | 6,979,442 | ||||||
| 81,559,290 | ||||||||
| China: 2.0% | ||||||||
| PetroChina Co. Ltd. (HKD) | 20,717,000 | 13,689,585 | ||||||
| Finland: 0.5% | ||||||||
| Neste Oyj | 95,300 | 3,387,897 | ||||||
| France: 3.1% | ||||||||
| Nexans SA | 80,230 | 7,038,721 | ||||||
| TotalEnergies SE | 209,400 | 14,238,986 | ||||||
| 21,277,707 | ||||||||
| Italy: 3.7% | ||||||||
| Eni SpA | 1,005,600 | 17,056,370 | ||||||
| Saipem SpA * | 4,868,800 | 7,914,086 | ||||||
| 24,970,456 | ||||||||
| Jersey, Channel Islands: 1.5% | ||||||||
| Arcadium Lithium Plc (AUD) * † | 1,358,249 | 10,375,739 | ||||||
| Netherlands: 2.1% | ||||||||
| OCI NV | 492,135 | 14,262,752 | ||||||
| Norway: 1.7% | ||||||||
| Equinor ASA (ADR) | 371,600 | 11,757,424 | ||||||
| Spain: 0.1% | ||||||||
| Soltec Power Holdings SA * † | 99,200 | 377,411 | ||||||
| Turkey: 0.8% | ||||||||
| Eldorado Gold Corp. (USD) * | 417,800 | 5,418,866 | ||||||
| Number of Shares | Value | |||||||
| United Kingdom: 7.9% | ||||||||
| BP Plc (ADR) | 369,400 | $ | 13,076,760 | |||||
| Endeavour Mining Plc (CAD) | 365,100 | 8,202,730 | ||||||
| Shell Plc (ADR) | 335,600 | 22,082,480 | ||||||
| TechnipFMC Plc (USD) | 498,100 | 10,031,734 | ||||||
| 53,393,704 | ||||||||
| United States: 50.6% | ||||||||
| 5E Advanced Materials, Inc. * † | 113,400 | 159,894 | ||||||
| Array Technologies, Inc. * † | 431,600 | 7,250,880 | ||||||
| Baker Hughes Co. | 363,500 | 12,424,430 | ||||||
| Bunge Global SA | 90,400 | 9,125,880 | ||||||
| CF Industries Holdings, Inc. | 158,500 | 12,600,750 | ||||||
| ChampionX Corp. | 63,586 | 1,857,347 | ||||||
| Chart Industries, Inc. * † | 83,034 | 11,320,025 | ||||||
| Chesapeake Energy Corp. † | 125,200 | 9,632,888 | ||||||
| Chevron Corp. | 43,900 | 6,548,124 | ||||||
| ConocoPhillips | 142,541 | 16,544,734 | ||||||
| Corteva, Inc. | 265,166 | 12,706,755 | ||||||
| Diamondback Energy, Inc. | 76,868 | 11,920,689 | ||||||
| EQT Corp. † | 323,100 | 12,491,046 | ||||||
| Excelerate Energy, Inc. | 172,300 | 2,663,758 | ||||||
| Exxon Mobil Corp. | 175,014 | 17,497,900 | ||||||
| Freeport-McMoRan, Inc. | 523,400 | 22,281,138 | ||||||
| Graphic Packaging Holding Co. | 77,830 | 1,918,510 | ||||||
| Halliburton Co. | 286,100 | 10,342,515 | ||||||
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. † | 494,777 | 13,645,950 | ||||||
| Hess Corp. | 23,500 | 3,387,760 | ||||||
| Kirby Corp. * | 144,500 | 11,340,360 | ||||||
| Kosmos Energy Ltd. * | 993,200 | 6,664,372 | ||||||
| Marathon Oil Corp. | 302,100 | 7,298,736 | ||||||
| Mosaic Co. | 286,100 | 10,222,353 | ||||||
| MP Materials Corp. * † | 579,400 | 11,501,090 | ||||||
| Newmont Corp. | 272,455 | 11,276,912 | ||||||
| NOV, Inc. | 245,700 | 4,982,796 | ||||||
| Ormat Technologies, Inc. | 131,140 | 9,939,101 | ||||||
| Permian Resources Corp. | 520,774 | 7,082,526 | ||||||
| Pilgrim’s Pride Corp. * | 423,800 | 11,722,308 | ||||||
| Pioneer Natural Resources Co. | 31,588 | 7,103,509 | ||||||
| Schlumberger NV | 242,600 | 12,624,904 | ||||||
| SolarEdge Technologies, Inc. * † | 23,200 | 2,171,520 | ||||||
| Stem, Inc. * ø | 362,000 | 1,404,560 | ||||||
| Stem, Inc. * † | 611,432 | 2,372,356 | ||||||
| Sunnova Energy International, Inc. * † | 561,000 | 8,555,250 | ||||||
| Valero Energy Corp. | 144,200 | 18,746,000 | ||||||
| 341,329,626 | ||||||||
| Zambia: 0.5% | ||||||||
| First Quantum Minerals Ltd. (CAD) | 388,600 | 3,182,001 | ||||||
| Total Common Stocks (Cost: $534,062,519) | 664,159,175 | |||||||
See Notes to Financial Statements
| 45 |
GLOBAL RESOURCES FUND
SCHEDULE OF INVESTMENTS
(continued)
| Number of Shares | Value | |||||||
| MONEY MARKET FUND: 1.0% (Cost: $6,457,202) | ||||||||
| Invesco Treasury Portfolio - Institutional Class | 6,457,202 | $ | 6,457,202 | |||||
| Total Investments Before Collateral for Securities Loaned: 99.4% (Cost: $540,519,721) | 670,616,377 | |||||||
| Number of Shares | Value | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 2.5% |
||||||||
| Money Market Fund: 2.5% (Cost: $16,692,405) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 16,692,405 | $ | 16,692,405 | |||||
| Total Investments: 101.9% (Cost: $557,212,126) | 687,308,782 | |||||||
| Liabilities in excess of other assets: (1.9)% | (12,801,839) | |||||||
| NET ASSETS: 100.0% | $ | 674,506,943 | ||||||
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:
| † | Security fully or partially on loan. Total market value of securities on loan is $111,076,632. |
| * | Non-income producing |
| ø | Restricted Security – the aggregate value of restricted securities is $1,404,560, or 0.2% of net assets |
Restricted securities held by the Fund as of December 31, 2023 are as follows:
| Security | Acquisition Date |
Number of Shares |
Acquisition Cost |
Value | % of Net Assets | |||||
| Stem, Inc. | 04/28/2021 | 362,000 | $3,620,000 | $1,404,560 | 0.2% |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Oil & Gas | 42.5 | % | $ | 284,763,066 | ||||
| Base & Industrial Metals | 17.2 | 115,346,359 | ||||||
| Agriculture | 14.7 | 98,924,213 | ||||||
| Gold & Precious Metals | 12.6 | 84,402,995 | ||||||
| Renewables & Alternatives | 8.3 | 56,143,647 | ||||||
| Industrials & Utilities | 3.7 | 24,578,895 | ||||||
| Money Market Fund | 1.0 | 6,457,202 | ||||||
| 100.0 | % | $ | 670,616,377 | |||||
See Notes to Financial Statements
| 46 |
The summary of inputs used to value the Fund’s investments as of December 31, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | 16,702,395 | $ | 20,842,697 | $ | — | $ | 37,545,092 | ||||||||
| Bermuda | 5,101,608 | — | — | 5,101,608 | ||||||||||||
| Brazil | 19,001,866 | 17,103,544 | — | 36,105,410 | ||||||||||||
| British Virgin Islands | 424,607 | — | — | 424,607 | ||||||||||||
| Canada | 81,559,290 | — | — | 81,559,290 | ||||||||||||
| China | — | 13,689,585 | — | 13,689,585 | ||||||||||||
| Finland | — | 3,387,897 | — | 3,387,897 | ||||||||||||
| France | — | 21,277,707 | — | 21,277,707 | ||||||||||||
| Italy | — | 24,970,456 | — | 24,970,456 | ||||||||||||
| Jersey, Channel Islands | 10,375,739 | — | — | 10,375,739 | ||||||||||||
| Netherlands | — | 14,262,752 | — | 14,262,752 | ||||||||||||
| Norway | 11,757,424 | — | — | 11,757,424 | ||||||||||||
| Spain | — | 377,411 | — | 377,411 | ||||||||||||
| Turkey | 5,418,866 | — | — | 5,418,866 | ||||||||||||
| United Kingdom | 53,393,704 | — | — | 53,393,704 | ||||||||||||
| United States | 341,329,626 | — | — | 341,329,626 | ||||||||||||
| Zambia | 3,182,001 | — | — | 3,182,001 | ||||||||||||
| Money Market Funds | 23,149,607 | — | — | 23,149,607 | ||||||||||||
| Total Investments | $ | 571,396,733 | $ | 115,912,049 | $ | — | $ | 687,308,782 | ||||||||
See Notes to Financial Statements
| 47 |
INTERNATIONAL INVESTORS GOLD FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2023
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.4% | ||||||||
| Australia: 20.3% | ||||||||
| Bellevue Gold Ltd. * | 26,266,077 | $ | 29,918,676 | |||||
| De Grey Mining Ltd. * | 10,771,722 | 9,190,741 | ||||||
| Emerald Resources NL * | 8,103,636 | 16,614,045 | ||||||
| Evolution Mining Ltd. | 8,526,787 | 22,940,080 | ||||||
| Northern Star Resources Ltd. | 3,957,800 | 36,720,869 | ||||||
| Perseus Mining Ltd. | 2,301,900 | 2,895,391 | ||||||
| Predictive Discovery Ltd. * † | 82,421,400 | 11,794,874 | ||||||
| Resolute Mining Ltd. * | 31,428,435 | 9,486,855 | ||||||
| West African Resources Ltd. * | 13,490,984 | 8,676,991 | ||||||
| 148,238,522 | ||||||||
| Brazil: 5.7% | ||||||||
| Wheaton Precious Metals Corp. (USD) | 838,791 | 41,385,948 | ||||||
| Canada: 52.7% | ||||||||
| Agnico Eagle Mines Ltd. (USD) | 970,231 | 53,217,170 | ||||||
| Alamos Gold, Inc. (USD) | 3,249,223 | 43,767,034 | ||||||
| Allied Gold Corp. * | 1,549,068 | 4,103,414 | ||||||
| B2Gold Corp. | 3,342,872 | 10,570,645 | ||||||
| B2Gold Corp. (USD) | 4,034,095 | 12,747,740 | ||||||
| Barrick Gold Corp. (USD) | 2,483,600 | 44,928,324 | ||||||
| Bear Creek Mining Corp. * ø | 948,000 | 128,780 | ||||||
| Franco-Nevada Corp. (USD) | 224,200 | 24,843,602 | ||||||
| G Mining Ventures Corp. * | 10,281,966 | 10,941,151 | ||||||
| G2 Goldfields Inc. (USD) | 3,905,600 | 2,170,147 | ||||||
| G2 Goldfields, Inc. * | 1,127,000 | 620,890 | ||||||
| Galway Metals, Inc. * † ‡ | 5,301,789 | 1,620,486 | ||||||
| Goldsource Mines, Inc. * ‡ | 4,314,354 | 862,838 | ||||||
| Kinross Gold Corp. (USD) | 7,932,418 | 47,991,129 | ||||||
| Liberty Gold Corp. * ø | 10,822,000 | 2,572,680 | ||||||
| Liberty Gold Corp. * ‡ | 21,139,114 | 4,945,568 | ||||||
| Lundin Gold, Inc. | 1,387,218 | 17,316,015 | ||||||
| O3 Mining, Inc. * | 1,807,700 | 2,141,873 | ||||||
| Orezone Gold Corp. * † | 8,012,607 | 5,139,969 | ||||||
| Osisko Gold Royalties Ltd. (USD) | 1,804,800 | 25,772,544 | ||||||
| Osisko Mining, Inc. * | 3,682,160 | 7,419,620 | ||||||
| Pan American Silver Corp. (USD) | 1,591,000 | 25,981,030 | ||||||
| Probe Gold, Inc. * | 3,434,223 | 3,472,970 | ||||||
| Reunion Gold Corp. * | 30,191,820 | 9,683,803 | ||||||
| Silver Tiger Metals, Inc. * | 5,982,500 | 767,537 | ||||||
| Skeena Resources Ltd. * † | 1,264,550 | 6,155,502 | ||||||
| Snowline Gold Corp. * † | 1,933,000 | 7,221,124 | ||||||
| Thesis Gold, Inc. * | 4,024,268 | 1,791,871 | ||||||
| West Red Lake Gold Mines Ltd. * † ‡ | 11,157,000 | 6,904,449 | ||||||
| 385,799,905 | ||||||||
| Mexico: 0.4% | ||||||||
| GoGold Resources, Inc. (CAD) * ø | 2,725,643 | 2,766,680 | ||||||
| South Africa: 4.4% | ||||||||
| Anglogold Ashanti Plc (USD) | 782,000 | 14,615,580 | ||||||
| Gold Fields Ltd. (ADR) | 1,223,208 | 17,687,588 | ||||||
| 32,303,168 | ||||||||
| Number of Shares | Value | |||||||
| Turkey: 1.5% | ||||||||
| Eldorado Gold Corp. (USD) * | 870,033 | $ | 11,284,328 | |||||
| United Kingdom: 4.4% | ||||||||
| Endeavour Mining Plc (CAD) | 1,424,831 | 32,011,787 | ||||||
| United States: 10.0% | ||||||||
| GoGold Resources, Inc. (CAD) * † | 3,120,018 | 3,178,766 | ||||||
| Newmont Corp. | 634,326 | 26,254,753 | ||||||
| Royal Gold, Inc. | 362,600 | 43,860,096 | ||||||
| 73,293,615 | ||||||||
| Total Common
Stocks (Cost: $459,685,872) | 727,083,953 | |||||||
| WARRANTS: 0.1% | ||||||||
| Canada: 0.1% | ||||||||
| Marathon Gold Corp., CAD 1.35, exp. 09/19/24 ∞ | 635,000 | 43,276 | ||||||
| Reunion Gold Corp., CAD 0.39, exp. 07/06/24 ∞ | 3,605,160 | 241,898 | ||||||
| Total Warrants (Cost: $269,205) | 285,174 | |||||||
| MONEY MARKET FUND: 0.8% (Cost: $5,888,117) | ||||||||
| Invesco Treasury Portfolio - Institutional Class | 5,888,117 | 5,888,117 | ||||||
| Total Investments Before Collateral for Securities Loaned: 100.3% (Cost: $465,843,194) |
733,257,244 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES ON LOAN: 0.3% | ||||||||
| Money Market Fund: 0.3% (Cost: $2,301,930) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio | 2,301,930 | 2,301,930 | ||||||
| Total Investments: 100.6% (Cost: $468,145,124) | 735,559,174 | |||||||
| Liabilities in excess of other assets: (0.6)% | (4,239,772) | |||||||
| NET ASSETS: 100.0% | $ | 731,319,402 | ||||||
See Notes to Financial Statements
| 48 |
Definitions:
| ADR | American Depositary Receipt |
| CAD | Canadian Dollar |
| USD | United States Dollar |
Footnotes:
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $5,034,068. |
| ø | Restricted Security – the aggregate value of restricted securities is $5,468,140, or 0.8% of net assets |
| ‡ | Affiliated issuer – as defined under the Investment Company Act of 1940. |
| ∞ | 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 December 31, 2023 are as follows:
| Security | Acquisition Date | Number of Shares | Acquisition Cost | Value | % of Net Assets | |||||||||||
| Bear Creek Mining Corp. | 08/15/2015 | 948,000 | $2,824,202 | $128,780 | 0.0 | % | ||||||||||
| GoGold Resources, Inc. | 08/31/2020 | 2,725,643 | 2,002,864 | 2,766,680 | 0.4 | % | ||||||||||
| Liberty Gold Corp. | 10/04/2021 | 10,822,000 | 5,624,767 | 2,572,680 | 0.4 | % | ||||||||||
| $10,451,833 | $5,468,140 | 0.8 | % | |||||||||||||
| Summary of Investments by Sector Excluding Collateral for Securities Loaned | % of Investments | Value | ||||||
| Gold | 94.4 | % | $ | 691,133,977 | ||||
| Silver | 4.0 | 29,927,333 | ||||||
| Precious Metals & Minerals | 0.6 | 4,687,331 | ||||||
| Diversified Metals & Mining | 0.2 | 1,620,486 | ||||||
| Money Market Fund | 0.8 | 5,888,117 | ||||||
| 100.0 | % | $ | 733,257,244 | |||||
Transactions in securities of affiliates for the period ended December 31, 2023 were as follows:
| Value 12/31/2022 | Purchases | Sales Proceeds | Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | Value 12/31/2023 | Dividend Income | ||||||||||||||||||||||
| Benchmark Metals, Inc. ^ | $3,052,381 | $– | $(9,676,345) | $– | $6,623,964 | $– | $– | |||||||||||||||||||||
| Benchmark Metals, Inc.* ^ | 2,151 | – | – | – | (2,151) | – | – | |||||||||||||||||||||
| Galway Metals, Inc. | 2,643,064 | – | – | – | (1,022,578) | 1,620,486 | – | |||||||||||||||||||||
| Goldsource Mines, Inc. | 1,417,937 | – | – | – | (555,099) | 862,838 | – | |||||||||||||||||||||
| Liberty Gold Corp. | 9,196,827 | – | (384,749) | (545,774) | (3,320,736) | 4,945,568 | – | |||||||||||||||||||||
| Liberty Gold Corp.ø | 4,475,864 | – | – | – | (1,903,184) | –(a) | – | |||||||||||||||||||||
| West Red Lake Gold Mines Ltd. | – | 2,915,338 | – | – | 3,989,111 | 6,904,449 | – | |||||||||||||||||||||
| $20,788,224 | $2,915,338 | $(10,061,094) | $(545,774) | $3,809,327 | $14,333,341 | $– | ||||||||||||||||||||||
Footnotes:
| ^ | During the period, Benchmark Metals, Inc. merged with Thesis Gold, Inc. in a non-taxable corporate event. |
| * | Warrants |
| ø | Restricted Security. |
| (a) | Security held by the Fund, however not classified as an affiliate at the end of the reporting period. |
See Notes to Financial Statements
| 49 |
INTERNATIONAL INVESTORS GOLD FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
(continued)
The summary of inputs used to value the Fund’s investments as of December 31, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks | ||||||||||||||||
| Australia | $ | 11,794,874 | $ | 136,443,648 | $ | — | $ | 148,238,522 | ||||||||
| Brazil | 41,385,948 | — | — | 41,385,948 | ||||||||||||
| Canada | 383,098,445 | 2,701,460 | — | 385,799,905 | ||||||||||||
| Mexico | — | 2,766,680 | — | 2,766,680 | ||||||||||||
| South Africa | 32,303,168 | — | — | 32,303,168 | ||||||||||||
| Turkey | 11,284,328 | — | — | 11,284,328 | ||||||||||||
| United Kingdom | 32,011,787 | — | — | 32,011,787 | ||||||||||||
| United States | 73,293,615 | — | — | 73,293,615 | ||||||||||||
| Warrants * | — | — | 285,174 | 285,174 | ||||||||||||
| Money Market Funds | 8,190,047 | — | — | 8,190,047 | ||||||||||||
| Total Investments | $ | 593,362,212 | $ | 141,911,788 | $ | 285,174 | $ | 735,559,174 | ||||||||
| * | See Schedule of Investments for geographic sector breakouts. |
See Notes to Financial Statements
| 50 |
VANECK MORNINGSTAR WIDE MOAT FUND
SCHEDULE OF INVESTMENTS
December 31, 2023
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.8% | ||||||||
| Banks: 6.6% | ||||||||
| Bank of America Corp. | 9,278 | $ | 312,390 | |||||
| US Bancorp | 15,224 | 658,895 | ||||||
| Wells Fargo & Co. | 12,839 | 631,936 | ||||||
| 1,603,221 | ||||||||
| Capital Goods: 12.9% | ||||||||
| 3M Co. | 2,722 | 297,569 | ||||||
| Allegion plc | 5,335 | 675,891 | ||||||
| Emerson Electric Co. | 3,230 | 314,376 | ||||||
| Honeywell International, Inc. | 1,433 | 300,515 | ||||||
| Huntington Ingalls Industries, Inc. | 1,163 | 301,961 | ||||||
| Masco Corp. | 9,461 | 633,698 | ||||||
| RTX Corp. | 7,093 | 596,805 | ||||||
| 3,120,815 | ||||||||
| Commercial & Professional Services: 5.0% | ||||||||
| Equifax, Inc. | 2,668 | 659,770 | ||||||
| TransUnion | 8,033 | 551,947 | ||||||
| 1,211,717 | ||||||||
| Consumer Discretionary Distribution & Retail: 3.9% | ||||||||
| Amazon.com, Inc. * | 2,013 | 305,855 | ||||||
| Etsy, Inc. * | 7,957 | 644,915 | ||||||
| 950,770 | ||||||||
| Consumer Durables & Apparel: 2.4% | ||||||||
| NIKE, Inc. | 5,310 | 576,507 | ||||||
| Financial Services: 11.8% | ||||||||
| Berkshire Hathaway, Inc. * | 804 | 286,755 | ||||||
| BlackRock, Inc. | 404 | 327,967 | ||||||
| Charles Schwab Corp. | 9,338 | 642,454 | ||||||
| Intercontinental Exchange, Inc. | 4,929 | 633,032 | ||||||
| MarketAxess Holdings, Inc. | 2,268 | 664,184 | ||||||
| The Bank of New York Mellon Corp. | 5,961 | 310,270 | ||||||
| 2,864,662 | ||||||||
| Food, Beverage & Tobacco: 4.4% | ||||||||
| Altria Group, Inc. | 6,849 | 276,289 | ||||||
| Campbell Soup Co. | 12,584 | 544,006 | ||||||
| Kellanova | 4,605 | 257,465 | ||||||
| 1,077,760 | ||||||||
| Health Care Equipment & Services: 7.1% | ||||||||
| Medtronic Plc | 6,974 | 574,518 | ||||||
| Veeva Systems, Inc. * | 2,915 | 561,196 | ||||||
| Zimmer Biomet Holdings, Inc. | 4,725 | 575,032 | ||||||
| 1,710,746 | ||||||||
| Number of Shares | Value | |||||||
| Household & Personal Products: 2.3% | ||||||||
| Estee Lauder Cos, Inc. | 3,894 | $ | 569,497 | |||||
| Materials: 7.4% | ||||||||
| Corteva, Inc. | 11,677 | 559,562 | ||||||
| Ecolab, Inc. | 3,048 | 604,571 | ||||||
| International Flavors & Fragrances, Inc. | 7,753 | 627,760 | ||||||
| 1,791,893 | ||||||||
| Media & Entertainment: 7.1% | ||||||||
| Alphabet, Inc. * | 4,217 | 589,073 | ||||||
| Comcast Corp. | 12,917 | 566,410 | ||||||
| Walt Disney Co. | 6,319 | 570,543 | ||||||
| 1,726,026 | ||||||||
| Pharmaceuticals, Biotechnology & Life Sciences: 13.4% | ||||||||
| Agilent Technologies, Inc. | 4,576 | 636,201 | ||||||
| Biogen, Inc. * | 2,282 | 590,513 | ||||||
| Bristol-Myers Squibb Co. | 5,679 | 291,390 | ||||||
| Gilead Sciences, Inc. | 7,229 | 585,621 | ||||||
| Pfizer, Inc. | 18,084 | 520,638 | ||||||
| Thermo Fisher Scientific, Inc. | 573 | 304,143 | ||||||
| Waters Corp. * | 977 | 321,658 | ||||||
| 3,250,164 | ||||||||
| Semiconductors & Semiconductor Equipment: 4.0% | ||||||||
| Microchip Technology, Inc. | 3,579 | 322,754 | ||||||
| Teradyne, Inc. | 6,017 | 652,965 | ||||||
| 975,719 | ||||||||
| Software & Services: 8.8% | ||||||||
| Fortinet, Inc. * | 4,616 | 270,175 | ||||||
| Microsoft Corp. | 850 | 319,634 | ||||||
| Roper Technologies, Inc. | 561 | 305,840 | ||||||
| Salesforce, Inc. * | 2,442 | 642,588 | ||||||
| Tyler Technologies, Inc. * | 1,452 | 607,110 | ||||||
| 2,145,347 | ||||||||
| Technology Hardware & Equipment: 2.7% | ||||||||
| Keysight Technologies, Inc. * | 4,059 | 645,746 | ||||||
| Total Common Stocks (Cost: $21,626,804) | 24,220,590 | |||||||
| MONEY MARKET FUND: 0.8% (Cost: $183,894) | ||||||||
| Invesco Treasury Portfolio - Institutional Class | 183,894 | 183,894 | ||||||
| Total Investments: 100.6% (Cost: $21,810,698) | 24,404,484 | |||||||
| Liabilities in excess of other assets: (0.6)% | (153,410) | |||||||
| NET ASSETS: 100.0% | $ | 24,251,074 | ||||||
Footnotes:
| * | Non-income producing |
See Notes to Financial Statements
| 51 |
VANECK MORNINGSTAR WIDE MOAT FUND
SCHEDULE OF INVESTMENTS
(continued)
| Summary of Investments by Sector | % of Investments | Value | ||||||
| Health Care | 20.3 | % | $ | 4,960,910 | ||||
| Financials | 18.3 | 4,467,883 | ||||||
| Industrials | 17.8 | 4,332,532 | ||||||
| Information Technology | 15.4 | 3,766,812 | ||||||
| Materials | 7.3 | 1,791,893 | ||||||
| Communication Services | 7.1 | 1,726,026 | ||||||
| Consumer Staples | 6.7 | 1,647,257 | ||||||
| Consumer Discretionary | 6.3 | 1,527,277 | ||||||
| Money Market Fund | 0.8 | 183,894 | ||||||
| 100.0 | % | $ | 24,404,484 | |||||
The summary of inputs used to value the Fund’s investments as of December 31, 2023 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||
| Common Stocks * | $ | 24,220,590 | $ | — | $ | — | $ | 24,220,590 | ||||||||
| Money Market Fund | 183,894 | — | — | 183,894 | ||||||||||||
| Total Investments | $ | 24,404,484 | $ | — | $ | — | $ | 24,404,484 | ||||||||
| * | See Schedule of Investments for industry sector breakouts. |
See Notes to Financial Statements
| 52 |
VANECK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2023
| CM Commodity Index Fund (a) | Emerging Markets Bond Fund | Emerging Markets Fund | Environmental Sustainability Fund | |||||||||||||
| Assets: | ||||||||||||||||
| Investments, at value (1) (2) | $ | 509,722,221 | $ | 82,471,810 | $ | 789,733,311 | $ | 3,877,651 | ||||||||
| Short-term investments held as collateral for securities loaned (3) | 14,688,716 | 103,084 | 749,359 | 183,829 | ||||||||||||
| Cash | 2,769,020 | 1,373,407 | 15,613 | 345 | ||||||||||||
| Cash denominated in foreign currency, at value (4) | — | 61,151 | 1,976,994 | 1,557 | ||||||||||||
| Receivables: | ||||||||||||||||
| Investment securities sold | — | — | 1,699,869 | — | ||||||||||||
| Shares of beneficial interest sold | 3,008,052 | 626,335 | 724,008 | — | ||||||||||||
| Due from Adviser | — | — | — | 14,764 | ||||||||||||
| Dividends and interest | 145,118 | 1,733,288 | 1,147,950 | 6,022 | ||||||||||||
| Prepaid expenses | 16,911 | 7,387 | 27,363 | 2,901 | ||||||||||||
| Total assets | 530,350,038 | 86,376,462 | 796,074,467 | 4,087,069 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Total return swap contracts, at value | 16,972,840 | — | — | — | ||||||||||||
| Payables: | ||||||||||||||||
| Investment securities purchased | — | 1,105,661 | — | — | ||||||||||||
| Shares of beneficial interest redeemed | 2,742,886 | 8,189 | 1,531,171 | — | ||||||||||||
| Collateral for securities loaned | 14,688,716 | 103,084 | 749,359 | 183,829 | ||||||||||||
| Line of credit | — | — | 2,014,745 | — | ||||||||||||
| Due to Adviser | 101,875 | 1,586 | 504,922 | — | ||||||||||||
| Due to Distributor | 9,028 | 2,186 | 24,076 | 169 | ||||||||||||
| Deferred Trustee fees | 379,982 | 17,805 | 1,347,502 | 1,408 | ||||||||||||
| Accrued expenses | 288,104 | 119,167 | 605,317 | 50,561 | ||||||||||||
| Accrued foreign taxes | — | — | 5,168,475 | — | ||||||||||||
| Total liabilities | 35,183,431 | 1,357,678 | 11,945,567 | 235,967 | ||||||||||||
| NET ASSETS | $ | 495,166,607 | $ | 85,018,784 | $ | 784,128,900 | $ | 3,851,102 | ||||||||
| Net Assets consist of: | ||||||||||||||||
| Aggregate paid in capital | $ | 512,222,917 | $ | 116,941,241 | $ | 1,025,782,517 | $ | 5,503,920 | ||||||||
| Total distributable loss | (17,056,310) | (31,922,457) | (241,653,617) | (1,652,818) | ||||||||||||
| NET ASSETS | $ | 495,166,607 | $ | 85,018,784 | $ | 784,128,900 | $ | 3,851,102 | ||||||||
| (1) Value of securities on loan | $ | 14,392,775 | $ | 97,271 | $ | 7,011,192 | $ | 472,134 | ||||||||
| (2) Cost of investments | $ | 509,628,410 | $ | 79,408,263 | $ | 678,980,740 | $ | 5,029,690 | ||||||||
| (3) Cost of short-term investments held as collateral for securities loaned | $ | 14,688,716 | $ | 103,084 | $ | 749,359 | $ | 183,829 | ||||||||
| (4) Cost of cash denominated in foreign currency | $ | — | $ | 60,152 | $ | 1,977,815 | $ | 1,489 | ||||||||
See Notes to Financials
| 53 |
VANECK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2023 (continued)
| CM Commodity Index Fund (a) | Emerging Markets Bond Fund | Emerging Markets Fund | Environmental Sustainability Fund | |||||||||||||
| Class A Shares: | ||||||||||||||||
| Net Assets | $ | 25,713,442 | $ | 8,616,185 | $ | 64,378,733 | $ | 817,164 | ||||||||
| Shares of beneficial interest outstanding | 396,464 | 1,600,160 | 4,806,591 | 47,460 | ||||||||||||
| Net asset value and redemption price per share | $ | 64.86 | $ | 5.38 | $ | 13.39 | $ | 17.22 | ||||||||
| Maximum offering price per share (Net asset value per share ÷ 94.25%) | $ | 68.82 | $ | 5.71 | $ | 14.21 | $ | 18.27 | ||||||||
| Class C Shares: | ||||||||||||||||
| Net Assets | N/A | N/A | $ | 8,619,093 | N/A | |||||||||||
| Shares of beneficial interest outstanding | N/A | N/A | 748,534 | 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 | $ | 11.51 | N/A | |||||||||||
| Class I Shares: | ||||||||||||||||
| Net Assets | $ | 130,826,567 | $ | 29,049,771 | $ | 323,001,949 | $ | 1,595,654 | ||||||||
| Shares of beneficial interest outstanding | 1,940,585 | 5,338,753 | 22,566,277 | 92,758 | ||||||||||||
| Net asset value and redemption price per share | $ | 67.42 | $ | 5.44 | $ | 14.31 | $ | 17.20 | ||||||||
| Class Y Shares: | ||||||||||||||||
| Net Assets | $ | 338,626,598 | $ | 47,352,828 | $ | 317,822,798 | $ | 1,438,284 | ||||||||
| Shares of beneficial interest outstanding | 5,047,199 | 8,686,766 | 23,238,122 | 83,569 | ||||||||||||
| Net asset value and redemption price per share | $ | 67.09 | $ | 5.45 | $ | 13.68 | $ | 17.21 | ||||||||
| Class Z Shares: | ||||||||||||||||
| Net Assets | N/A | N/A | $ | 70,306,327 | N/A | |||||||||||
| Shares of beneficial interest outstanding | N/A | N/A | 4,898,597 | N/A | ||||||||||||
| Net asset value and redemption price per share | N/A | N/A | $ | 14.35 | N/A | |||||||||||
| (a) | Consolidated Statement of Assets and Liabilities |
See Notes to Financials
| 54 |
VANECK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2023
| Global Resources Fund | International Investors Gold Fund (a) | VanEck Morningstar Wide Moat Fund | ||||||||||
| Assets: | ||||||||||||
| Investments, at value (1) | ||||||||||||
| Unaffiliated issuers (2) | $ | 670,616,377 | $ | 718,923,903 | $ | 24,404,484 | ||||||
| Affiliated issuers (3) | — | 14,333,341 | — | |||||||||
| Short-term investments held as collateral for securities loaned (4) | 16,692,405 | 2,301,930 | — | |||||||||
| Cash | 7,686 | 64,417 | 2,252 | |||||||||
| Cash denominated in foreign currency, at value (5) | — | 14,378 | — | |||||||||
| Receivables: | ||||||||||||
| Investment securities sold | 10,111,748 | 2,222,903 | — | |||||||||
| Shares of beneficial interest sold | 493,501 | 471,820 | 18,383 | |||||||||
| Due from Adviser | — | — | 6,281 | |||||||||
| Dividends and interest | 461,933 | 139,346 | 33,460 | |||||||||
| Prepaid expenses | 28,794 | 34,336 | 2,998 | |||||||||
| Total assets | 698,412,444 | 738,506,374 | 24,467,858 | |||||||||
| Liabilities: | ||||||||||||
| Payables: | ||||||||||||
| Investment securities purchased | 3,826,960 | 2,801,176 | 149,468 | |||||||||
| Shares of beneficial interest redeemed | 1,228,685 | 606,848 | — | |||||||||
| Collateral for securities loaned | 16,692,405 | 2,301,930 | — | |||||||||
| Due to Adviser | 513,659 | 431,341 | — | |||||||||
| Due to custodian | 336,221 | — | — | |||||||||
| Due to Distributor | 45,097 | 100,276 | — | |||||||||
| Deferred Trustee fees | 520,150 | 524,257 | 8,777 | |||||||||
| Accrued expenses | 742,324 | 421,144 | 58,539 | |||||||||
| Total liabilities | 23,905,501 | 7,186,972 | 216,784 | |||||||||
| NET ASSETS | $ | 674,506,943 | $ | 731,319,402 | $ | 24,251,074 | ||||||
| Net Assets consist of: | ||||||||||||
| Aggregate paid in capital | $ | 1,502,934,566 | $ | 898,749,106 | $ | 21,887,917 | ||||||
| Total distributable earnings (loss) | (828,427,623) | (167,429,704) | 2,363,157 | |||||||||
| NET ASSETS | $ | 674,506,943 | $ | 731,319,402 | $ | 24,251,074 | ||||||
| (1) Value of securities on loan | $ | 111,076,632 | $ | 5,034,068 | $ | — | ||||||
| (2) Cost of investments - Unaffiliated issuers | $ | 540,519,721 | $ | 445,809,634 | $ | 21,810,698 | ||||||
| (3) Cost of investments - Affiliated issuers | $ | — | $ | 20,033,560 | $ | — | ||||||
| (4) Cost of short-term investments held as collateral for securities loaned | $ | 16,692,405 | $ | 2,301,930 | $ | — | ||||||
| (5) Cost of cash denominated in foreign currency | $ | — | $ | 14,424 | $ | — | ||||||
See Notes to Financials
| 55 |
VANECK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2023 (continued)
| Global Resources Fund | International Investors Gold Fund (a) | VanEck Morningstar Wide Moat Fund | ||||||||||
| Class A Shares: | ||||||||||||
| Net Assets | $ | 117,122,236 | $ | 260,709,644 | N/A | |||||||
| Shares of beneficial interest outstanding | 3,026,153 | 26,756,341 | N/A | |||||||||
| Net asset value and redemption price per share | $ | 38.70 | $ | 9.74 | N/A | |||||||
| Maximum offering price per share (Net asset value per share ÷ 94.25%) | $ | 41.06 | $ | 10.34 | N/A | |||||||
| Class C Shares: | ||||||||||||
| Net Assets | $ | 9,629,485 | $ | 33,277,565 | N/A | |||||||
| Shares of beneficial interest outstanding | 295,572 | 4,186,096 | 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) | $ | 32.58 | $ | 7.95 | N/A | |||||||
| Class I Shares: | ||||||||||||
| Net Assets | $ | 359,539,702 | $ | 164,124,807 | $ | 6,028,114 | ||||||
| Shares of beneficial interest outstanding | 8,828,775 | 12,149,223 | 186,403 | |||||||||
| Net asset value and redemption price per share | $ | 40.72 | $ | 13.51 | $ | 32.34 | ||||||
| Class Y Shares: | ||||||||||||
| Net Assets | $ | 188,215,520 | $ | 273,207,386 | N/A | |||||||
| Shares of beneficial interest outstanding | 4,762,987 | 27,102,228 | N/A | |||||||||
| Net asset value and redemption price per share | $ | 39.52 | $ | 10.08 | N/A | |||||||
| Class Z Shares: | ||||||||||||
| Net Assets | N/A | N/A | $ | 18,222,960 | ||||||||
| Shares of beneficial interest outstanding | N/A | N/A | 573,603 | |||||||||
| Net asset value and redemption price per share | N/A | N/A | $ | 31.77 | ||||||||
| (a) | Consolidated Statement of Assets and Liabilities |
See Notes to Financials
| 56 |
VANECK FUNDS
For the Year Ended December 31, 2023
| CM Commodity Index Fund(a) | Emerging Markets Bond Fund | Emerging Markets Fund | Environmental Sustainability Fund | |||||||||||||
| Income: | ||||||||||||||||
| Dividends - unaffiliated issuers | $ | 1,274,465 | $ | 165,599 | $ | 19,393,668 | $ | 67,821 | ||||||||
| Interest | 26,280,092 | 4,622,744 | — | — | ||||||||||||
| Securities lending income | 203,202 | 5,442 | 108,823 | 21,383 | ||||||||||||
| Foreign taxes withheld | — | (88,029 | ) | (1,799,474 | ) | (6,288 | ) | |||||||||
| Total income | 27,757,759 | 4,705,756 | 17,703,017 | 82,916 | ||||||||||||
| Expenses: | ||||||||||||||||
| Management fees | 3,664,535 | 465,161 | 6,519,555 | 29,566 | ||||||||||||
| Administration fees | — | — | 2,173,185 | — | ||||||||||||
| Distribution fees – Class A | 67,003 | 17,212 | 160,779 | 1,979 | ||||||||||||
| Distribution fees – Class C | — | — | 101,791 | — | ||||||||||||
| Transfer agent fees – Class A | 66,263 | 24,311 | 98,852 | 13,963 | ||||||||||||
| Transfer agent fees – Class C | — | — | 28,649 | — | ||||||||||||
| Transfer agent fees – Class I | 270,825 | 33,507 | 305,796 | 14,098 | ||||||||||||
| Transfer agent fees – Class Y | 619,690 | 42,408 | 327,676 | 13,852 | ||||||||||||
| Transfer agent fees – Class Z | — | — | 14,513 | — | ||||||||||||
| Custodian fees | 24,679 | 41,084 | 264,133 | 22,614 | ||||||||||||
| Professional fees | 100,602 | 87,834 | 91,427 | 74,044 | ||||||||||||
| Registration fees – Class A | 23,022 | 20,249 | 31,136 | 16,686 | ||||||||||||
| Registration fees – Class C | — | — | 15,703 | — | ||||||||||||
| Registration fees – Class I | 23,077 | 20,884 | 18,563 | 16,685 | ||||||||||||
| Registration fees – Class Y | 32,784 | 29,256 | 20,379 | 16,686 | ||||||||||||
| Registration fees – Class Z | — | — | 15,990 | — | ||||||||||||
| Reports to shareholders | 78,792 | 6,360 | 64,224 | 7,001 | ||||||||||||
| Insurance | 37,516 | 10,831 | 69,983 | 6,553 | ||||||||||||
| Trustees’ fees and expenses | 225,050 | 17,296 | 570,991 | 1,089 | ||||||||||||
| Interest | 2,198 | 6,221 | 128,448 | — | ||||||||||||
| Taxes | 58 | 58 | 58 | 30 | ||||||||||||
| Other | 13,764 | 8,899 | 13,390 | 2,717 | ||||||||||||
| Total expenses | 5,249,858 | 831,571 | 11,035,221 | 237,563 | ||||||||||||
| Expenses assumed by the Adviser | (1,331,993 | ) | (268,801 | ) | (1,397,165 | ) | (196,242 | ) | ||||||||
| Net expenses | 3,917,865 | 562,770 | 9,638,056 | 41,321 | ||||||||||||
| Net investment income | 23,839,894 | 4,142,986 | 8,064,961 | 41,595 | ||||||||||||
| Net realized gain (loss) on: | ||||||||||||||||
| Investments - unaffiliated issuers (1) | (6,529 | ) | (1,312,627 | ) | (120,018,385 | ) | (303,052 | ) | ||||||||
| Swap contracts | (14,940,527 | ) | — | — | — | |||||||||||
| Forward foreign currency contracts | — | (174,826 | ) | 43 | — | |||||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | 0 | (122,579 | ) | (359,799 | ) | (31 | ) | |||||||||
| Net realized loss | (14,947,056 | ) | (1,610,032 | ) | (120,378,141 | ) | (303,083 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Investments - unaffiliated issuers (2) | 35,502 | 3,331,607 | 211,305,193 | 89,460 | ||||||||||||
| Investments - affiliated issuers | — | — | (9,899,239 | ) | — | |||||||||||
| Swap contracts | (22,067,736 | ) | — | — | — | |||||||||||
| Forward foreign currency contracts | — | — | — | — | ||||||||||||
| Foreign currency translations and foreign denominated assets and liabilities | — | 8,523 | (356,827 | ) | (122 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) | (22,032,234 | ) | 3,340,130 | 201,049,127 | 89,338 | |||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (13,139,396 | ) | $ | 5,873,084 | $ | 88,735,947 | $ | (172,150 | ) | ||||||
| (1) Net of foreign taxes | $ | — | $ | 10,140 | $ | 925,752 | $ | — | ||||||||
| (2) Net of foreign taxes | $ | — | $ | (890 | ) | $ | (1,864,477 | ) | $ | — | ||||||
| (a) | Consolidated Statement of Operations |
See Notes to Financial Statements
| 57 |
VANECK FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 2023
| Global Resources Fund | International Investors Gold Fund(a) | VanEck Morningstar Wide Moat Fund | ||||||||||
| Income: | ||||||||||||
| Dividends - unaffiliated issuers | $ | 28,797,911 | $ | 11,637,916 | $ | 313,733 | ||||||
| Interest | 4,800 | 169 | — | |||||||||
| Securities lending income | 1,249,901 | 85,028 | — | |||||||||
| Foreign taxes withheld | (1,724,933 | ) | (1,144,615 | ) | — | |||||||
| Total income | 28,327,679 | 10,578,498 | 313,733 | |||||||||
| Expenses: | ||||||||||||
| Management fees | 8,373,950 | 5,150,544 | 85,801 | |||||||||
| Administration fees | — | 1,789,320 | — | |||||||||
| Distribution fees – Class A | 313,488 | 640,350 | — | |||||||||
| Distribution fees – Class C | 113,848 | 351,006 | — | |||||||||
| Transfer agent fees – Class A | 239,018 | 327,398 | — | |||||||||
| Transfer agent fees – Class C | 33,994 | 57,474 | — | |||||||||
| Transfer agent fees – Class I | 351,770 | 104,524 | 14,477 | |||||||||
| Transfer agent fees – Class Y | 282,806 | 214,205 | — | |||||||||
| Transfer agent fees – Class Z | — | — | 14,065 | |||||||||
| Custodian fees | 42,849 | 40,753 | 16,813 | |||||||||
| Professional fees | 91,829 | 72,046 | 77,803 | |||||||||
| Registration fees – Class A | 18,394 | 29,274 | — | |||||||||
| Registration fees – Class C | 17,992 | 14,530 | — | |||||||||
| Registration fees – Class I | 17,931 | 22,894 | 16,003 | |||||||||
| Registration fees – Class Y | 13,508 | 31,830 | — | |||||||||
| Registration fees – Class Z | — | — | 15,704 | |||||||||
| Reports to shareholders | 49,637 | 55,224 | 8,948 | |||||||||
| Insurance | 44,704 | 44,886 | 6,746 | |||||||||
| Trustees’ fees and expenses | 121,494 | 304,213 | 5,503 | |||||||||
| Interest | 3,409 | 3,711 | 1,212 | |||||||||
| Taxes | 25 | 51 | 58 | |||||||||
| Other | 26,457 | 15,037 | 2,247 | |||||||||
| Total expenses | 10,157,103 | 9,269,270 | 265,380 | |||||||||
| Expenses assumed by the Adviser | (1,062,790 | ) | (300,843 | ) | (167,345 | ) | ||||||
| Net expenses | 9,094,313 | 8,968,427 | 98,035 | |||||||||
| Net investment income | 19,233,366 | 1,610,071 | 215,698 | |||||||||
| Net realized gain (loss) on: | ||||||||||||
| Investments - unaffiliated issuers | 64,360,722 | 13,226,991 | 1,502,869 | |||||||||
| Investments - affiliated issuers | — | (545,774 | ) | — | ||||||||
| In-kind redemptions | 1,123,961 | — | — | |||||||||
| Forward foreign currency contracts | — | (3,727 | ) | — | ||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | (24,362 | ) | (20,356 | ) | — | |||||||
| Net realized gain | 65,460,321 | 12,657,134 | 1,502,869 | |||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||
| Investments - unaffiliated issuers | (127,667,939 | ) | 48,979,753 | 3,374,542 | ||||||||
| Investments - affiliated issuers | — | 3,809,327 | — | |||||||||
| Foreign currency translations and foreign denominated assets and liabilities | 9,318 | (2,087 | ) | — | ||||||||
| Net change in unrealized appreciation (depreciation) | (127,658,621 | ) | 52,786,993 | 3,374,542 | ||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (42,964,934 | ) | $ | 67,054,198 | $ | 5,093,109 | |||||
| (a) | Consolidated Statement of Operations |
See Notes to Financial Statements
| 58 |
VANECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
| CM Commodity Index Fund (a) | Emerging Markets Bond Fund | |||||||||||||||
| Year Ended December 31, 2023 |
Year Ended December 31, 2022 |
Year Ended December 31, 2023 |
Year Ended December 31, 2022 |
|||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 23,839,894 | $ | 5,085,215 | $ | 4,142,986 | $ | 914,709 | ||||||||
| Net realized gain (loss) | (14,947,056) | 93,844,392 | (1,610,032) | (2,271,973) | ||||||||||||
| Net change in unrealized appreciation (depreciation) | (22,032,234) | (933,907) | 3,340,130 | 59,659 | ||||||||||||
| Net increase (decrease) in net assets resulting from operations | (13,139,396) | 97,995,700 | 5,873,084 | (1,297,605) | ||||||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | ||||||||||||||||
| Class A | (906,235) | (4,828,828) | (339,047) | (184,430) | ||||||||||||
| Class I | (4,894,664) | (55,538,881) | (1,182,324) | (171,838) | ||||||||||||
| Class Y | (12,449,594) | (68,337,110) | (1,408,544) | (91,975) | ||||||||||||
| (18,250,493) | (128,704,819) | (2,929,915) | (448,243) | |||||||||||||
| Return of capital | ||||||||||||||||
| Class A | — | — | (171,175) | (208,178) | ||||||||||||
| Class I | — | — | (596,580) | (154,015) | ||||||||||||
| Class Y | — | — | (711,118) | (101,846) | ||||||||||||
| — | — | (1,478,873) | (464,039) | |||||||||||||
| Total distributions | (18,250,493) | (128,704,819) | (4,408,788) | (912,282) | ||||||||||||
| Share transactions: | ||||||||||||||||
| Proceeds from sale of shares | ||||||||||||||||
| Class A | 18,105,631 | 25,110,916 | 9,688,303 | 545,660 | ||||||||||||
| Class I | 72,884,419 | 99,368,090 | 34,840,981 | 192,609 | ||||||||||||
| Class Y | 166,563,103 | 237,710,663 | 50,415,663 | 297,140 | ||||||||||||
| 257,553,153 | 362,189,669 | 94,944,947 | 1,035,409 | |||||||||||||
| Reinvestment of distributions | ||||||||||||||||
| Class A | 870,928 | 4,065,494 | 419,733 | 308,832 | ||||||||||||
| Class I | 2,597,941 | 24,121,495 | 1,725,107 | 263,798 | ||||||||||||
| Class Y | 12,071,878 | 66,044,100 | 2,065,108 | 190,797 | ||||||||||||
| 15,540,747 | 94,231,089 | 4,209,948 | 763,427 | |||||||||||||
| Cost of shares redeemed | ||||||||||||||||
| Class A | (14,180,913) | (36,999,214) | (6,819,882) | (1,068,136) | ||||||||||||
| Class I | (170,940,313) | (175,781,555) | (9,980,347) | (2,948,136) | ||||||||||||
| Class Y | (140,405,599) | (290,311,209) | (8,284,813) | (1,322,466) | ||||||||||||
| (325,526,825) | (503,091,978) | (25,085,042) | (5,338,738) | |||||||||||||
| Increase (decrease) in net assets resulting from share transactions | (52,432,925) | (46,671,220) | 74,069,853 | (3,539,902) | ||||||||||||
| Total increase (decrease) in net assets | (83,822,814) | (77,380,339) | 75,534,149 | (5,749,789) | ||||||||||||
| Net Assets, beginning of year | 578,989,421 | 656,369,760 | 9,484,635 | 15,234,424 | ||||||||||||
| Net Assets, end of year | $ | 495,166,607 | $ | 578,989,421 | $ | 85,018,784 | $ | 9,484,635 | ||||||||
| (a) | Consolidated Statement of Changes in Net Assets |
See Notes to Financial Statements
| 59 |
VANECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
| Emerging Markets Fund | Environmental Sustainability Fund | |||||||||||||||
| Year Ended December 31, 2023 |
Year Ended December 31, 2022 |
Year Ended December 31, 2023 |
Year Ended December 31, 2022 |
|||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 8,064,961 | $ | 14,927,751 | $ | 41,595 | $ | 17,425 | ||||||||
| Net realized loss | (120,378,141) | (180,663,741) | (303,083) | (165,973) | ||||||||||||
| Net change in unrealized appreciation (depreciation) | 201,049,127 | (386,053,063) | 89,338 | (1,100,244) | ||||||||||||
| Net increase (decrease) in net assets resulting from operations | 88,735,947 | (551,789,053) | (172,150) | (1,248,792) | ||||||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | ||||||||||||||||
| Class A | (755,540) | (2,319,726) | (474) | (10,771) | ||||||||||||
| Class C | (27,106) | (399,998) | — | — | ||||||||||||
| Class I | (5,353,048) | (16,864,626) | (9,164) | (28,426) | ||||||||||||
| Class Y | (5,148,735) | (17,221,674) | (5,369) | (23,653) | ||||||||||||
| Class Z | (1,217,706) | (3,195,238) | — | — | ||||||||||||
| Total distributions | (12,502,135) | (40,001,262) | (15,007) | (62,850) | ||||||||||||
| Share transactions: | ||||||||||||||||
| Proceeds from sale of shares | ||||||||||||||||
| Class A | 15,737,452 | 31,447,033 | 68,063 | 83,343 | ||||||||||||
| Class C | 544,282 | 1,152,871 | — | — | ||||||||||||
| Class I | 23,354,312 | 71,644,900 | 38,526 | 69,278 | ||||||||||||
| Class Y | 72,086,635 | 257,934,890 | 27,500 | 22,397 | ||||||||||||
| Class Z | 11,356,023 | 50,961,781 | — | — | ||||||||||||
| 123,078,704 | 413,141,475 | 134,089 | 175,018 | |||||||||||||
| Reinvestment of distributions | ||||||||||||||||
| Class A | 669,809 | 1,955,661 | 474 | 10,771 | ||||||||||||
| Class C | 23,486 | 337,551 | — | — | ||||||||||||
| Class I | 4,673,774 | 13,935,606 | 9,164 | 28,425 | ||||||||||||
| Class Y | 4,345,429 | 12,566,128 | 5,369 | 23,653 | ||||||||||||
| Class Z | 297,253 | 845,967 | — | — | ||||||||||||
| 10,009,751 | 29,640,913 | 15,007 | 62,849 | |||||||||||||
| Cost of shares redeemed | ||||||||||||||||
| Class A | (18,102,659) | (65,968,668) | (7,657) | (36,635) | ||||||||||||
| Class C | (4,201,670) | (7,689,042) | — | — | ||||||||||||
| Class I | (126,209,869) | (362,791,632) | (51,802) | (5,663) | ||||||||||||
| Class Y | (177,705,112) | (670,947,332) | (7,266) | (8,755) | ||||||||||||
| Class Z | (21,086,538) | (23,739,288) | — | — | ||||||||||||
| (347,305,848) | (1,131,135,962) | (66,725) | (51,053) | |||||||||||||
| Increase (decrease) in net assets resulting from share transactions | (214,217,393) | (688,353,574) | 82,371 | 186,814 | ||||||||||||
| Total decrease in net assets | (137,983,581) | (1,280,143,889) | (104,786) | (1,124,828) | ||||||||||||
| Net Assets, beginning of year | 922,112,481 | 2,202,256,370 | 3,955,888 | 5,080,716 | ||||||||||||
| Net Assets, end of year | $ | 784,128,900 | $ | 922,112,481 | $ | 3,851,102 | $ | 3,955,888 | ||||||||
See Notes to Financial Statements
| 60 |
VANECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
| Global Resources Fund | International Investors Gold Fund (a) | |||||||||||||||
| Year Ended December 31, 2023 |
Year Ended December 31, 2022 |
Year Ended December 31, 2023 |
Year Ended December 31, 2022 |
|||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 19,233,366 | $ | 23,344,178 | $ | 1,610,071 | $ | 3,435,525 | ||||||||
| Net realized gain (loss) | 65,460,321 | 52,153,544 | 12,657,134 | (4,715,400) | ||||||||||||
| Net change in unrealized appreciation (depreciation) | (127,658,621) | (23,452,096) | 52,786,993 | (126,323,652) | ||||||||||||
| Net increase (decrease) in net assets resulting from operations | (42,964,934) | 52,045,626 | 67,054,198 | (127,603,527) | ||||||||||||
| Distributions to shareholders from: | ||||||||||||||||
| Distributable earnings | ||||||||||||||||
| Class A | (2,692,002) | (3,442,432) | (275,896) | — | ||||||||||||
| Class C | (175,824) | (290,916) | — | — | ||||||||||||
| Class I | (9,665,478) | (14,127,324) | (623,495) | — | ||||||||||||
| Class Y | (4,718,199) | (8,140,878) | (1,102,243) | — | ||||||||||||
| Total distributions | (17,251,503) | (26,001,550) | (2,001,634) | — | ||||||||||||
| Share transactions: | ||||||||||||||||
| Proceeds from sale of shares | ||||||||||||||||
| Class A | 13,539,936 | 35,153,850 | 47,499,852 | 49,069,654 | ||||||||||||
| Class C | 681,294 | 4,128,658 | 2,515,008 | 5,527,125 | ||||||||||||
| Class I | 77,899,751 | 202,012,496 | 20,730,423 | 65,767,172 | ||||||||||||
| Class Y | 50,961,597 | 163,313,291 | 73,267,629 | 128,188,288 | ||||||||||||
| 143,082,578 | 404,608,295 | 144,012,912 | 248,552,239 | |||||||||||||
| Reinvestment of distributions | ||||||||||||||||
| Class A | 2,480,488 | 3,013,538 | 241,220 | — | ||||||||||||
| Class C | 148,352 | 250,771 | — | — | ||||||||||||
| Class I | 5,386,485 | 8,275,196 | 616,953 | — | ||||||||||||
| Class Y | 3,892,023 | 6,440,327 | 989,392 | — | ||||||||||||
| 11,907,348 | 17,979,832 | 1,847,565 | — | |||||||||||||
| Cost of shares redeemed | ||||||||||||||||
| Class A | (30,398,516) | (57,756,948) | (53,093,312) | (64,178,507) | ||||||||||||
| Class C | (3,808,824) | (5,367,146) | (7,813,427) | (11,531,051) | ||||||||||||
| Class I | (193,640,890) | (106,744,231) | (28,277,328) | (89,152,154) | ||||||||||||
| Class Y | (151,500,336) | (103,339,965) | (66,204,246) | (140,237,775) | ||||||||||||
| (379,348,566) | (273,208,290) | (155,388,313) | (305,099,487) | |||||||||||||
| Increase (decrease) in net assets resulting from share transactions | (224,358,640) | 149,379,837 | (9,527,836) | (56,547,248) | ||||||||||||
| Total increase (decrease) in net assets | (284,575,077) | 175,423,913 | 55,524,728 | (184,150,775) | ||||||||||||
| Net Assets, beginning of year | 959,082,020 | 783,658,107 | 675,794,674 | 859,945,449 | ||||||||||||
| Net Assets, end of year | $ | 674,506,943 | $ | 959,082,020 | $ | 731,319,402 | $ | 675,794,674 | ||||||||
| (a) | Consolidated Statement of Changes in Net Assets |
See Notes to Financial Statements
| 61 |
VANECK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
| VanEck Morningstar Wide Moat Fund | ||||||||
| Year Ended December 31, 2023 |
Year Ended December 31, 2022 |
|||||||
| Operations: | ||||||||
| Net investment income | $ | 215,698 | $ | 188,951 | ||||
| Net realized gain | 1,502,869 | 661,455 | ||||||
| Net change in unrealized appreciation (depreciation) | 3,374,542 | (3,344,544) | ||||||
| Net increase (decrease) in net assets resulting from operations | 5,093,109 | (2,494,138) | ||||||
| Distributions to shareholders: | ||||||||
| Distributable earnings | ||||||||
| Class I | (329,521) | (317,856) | ||||||
| Class Z | (1,058,435) | (1,392,066) | ||||||
| Total distributions | (1,387,956) | (1,709,922) | ||||||
| Share transactions: | ||||||||
| Proceeds from sale of shares | ||||||||
| Class I | 3,786,240 | 3,076 | ||||||
| Class Z | 1,941,335 | 1,704,261 | ||||||
| 5,727,575 | 1,707,337 | |||||||
| Reinvestment of distributions | ||||||||
| Class I | 329,521 | 317,856 | ||||||
| Class Z | 1,058,435 | 1,392,066 | ||||||
| 1,387,956 | 1,709,922 | |||||||
| Cost of shares redeemed | ||||||||
| Class I | (473,013) | (1,325,225) | ||||||
| Class Z | (1,291,095) | (1,009,650) | ||||||
| (1,764,108) | (2,334,875) | |||||||
| Increase in net assets resulting from share transactions | 5,351,423 | 1,082,384 | ||||||
| Total increase (decrease) in net assets | 9,056,576 | (3,121,676) | ||||||
| Net Assets, beginning of year | 15,194,498 | 18,316,174 | ||||||
| Net Assets, end of year | $ | 24,251,074 | $ | 15,194,498 | ||||
See Notes to Financial Statements
| 62 |
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class A(a) | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $ | 69.15 | $75.75 | $69.90 | $ | 69.15 | $ | 64.35 | |||||||||||||
| Net investment income (loss) (b) | 2.73 | 0.30 | (0.75 | ) | (0.15 | ) | 0.90 | ||||||||||||||
| Net realized and unrealized gain (loss) on investments | (4.70 | ) | 11.10 | 23.55 | 0.92 | (c) | 4.50 | ||||||||||||||
| Total from investment operations | (1.97 | ) | 11.40 | 22.80 | 0.77 | 5.40 | |||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (2.32 | ) | (18.00 | ) | (16.95 | ) | (0.02 | ) | (0.60 | ) | |||||||||||
| Net asset value, end of year | $ | 64.86 | $69.15 | $75.75 | $ | 69.90 | $ | 69.15 | |||||||||||||
| Total return (d) | (2.87 | )% | 15.29 | % | 32.96 | % | 1.11 | % | 8.37 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 1.32 | % | 1.36 | % | 1.38 | % | 1.41 | % | 1.43 | % | |||||||||||
| Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | |||||||||||
| Net investment income (loss) | 4.00 | % | 0.39 | % | (0.91 | )% | (0.28 | )% | 1.24 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $26 | $22 | $31 | $22 | $27 | ||||||||||||||||
| Portfolio turnover rate | — | % | — | % | — | % | — | % | — | % | |||||||||||
| (a) | On September 11, 2023, the Fund effected a 1 for 15 reverse share split (See Note 12). Per share data has been adjusted to reflect the reverse share split. |
| (b) | Calculated based upon average shares outstanding |
| (c) | 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. |
| (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. |
See Notes to Financial Statements
| 63 |
CM COMMODITY INDEX FUND
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class I(a) | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $ | 71.85 | $78.00 | $71.70 | $ | 70.65 | $ | 65.85 | |||||||||||||
| Net investment income (loss) (b) | 3.00 | 0.60 | (0.60 | ) | — | 1.05 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments | (4.88 | ) | 11.55 | 24.15 | 1.07 | (c) | 4.50 | ||||||||||||||
| Total from investment operations | (1.88 | ) | 12.15 | 23.55 | 1.07 | 5.55 | |||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (2.55 | ) | (18.30 | ) | (17.25 | ) | (0.02 | ) | (0.75 | ) | |||||||||||
| Net asset value, end of year | $ | 67.42 | $71.85 | $78.00 | $ | 71.70 | $ | 70.65 | |||||||||||||
| Total return (d) | (2.63 | )% | 15.87 | % | 33.07 | % | 1.51 | % | 8.55 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 0.89 | % | 0.92 | % | 0.90 | % | 0.93 | % | 0.97 | % | |||||||||||
| Net expenses | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | |||||||||||
| Net investment income (loss) | 4.24 | % | 0.72 | % | (0.61 | )% | (0.10 | )% | 1.50 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $131 | $234 | $295 | $193 | $195 | ||||||||||||||||
| Portfolio turnover rate | — | % | — | % | — | % | — | % | — | % | |||||||||||
| (a) | On September 11, 2023, the Fund effected a 1 for 15 reverse share split (See Note 12). Per share data has been adjusted to reflect the reverse share split. |
| (b) | Calculated based upon average shares outstanding |
| (c) | 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. |
| (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. |
See Notes to Financial Statements
| 64 |
CM COMMODITY INDEX FUND
CONSOLIDATED FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class Y(a) | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $ | 71.55 | $77.70 | $71.40 | $ | 70.50 | $ | 65.55 | |||||||||||||
| Net investment income (loss) (b) | 2.99 | 0.60 | (0.60 | ) | — | 1.05 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments | (4.96 | ) | 11.55 | 24.15 | 0.92 | (c) | 4.65 | ||||||||||||||
| Total from investment operations | (1.97 | ) | 12.15 | 23.55 | 0.92 | 5.70 | |||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (2.49 | ) | (18.30 | ) | (17.25 | ) | (0.02 | ) | (0.75 | ) | |||||||||||
| Net asset value, end of year | $ | 67.09 | $71.55 | $77.70 | $ | 71.40 | $ | 70.50 | |||||||||||||
| Total return (d) | (2.77 | )% | 15.87 | % | 33.14 | % | 1.30 | % | 8.73 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 0.93 | % | 1.00 | % | 0.98 | % | 1.03 | % | 1.04 | % | |||||||||||
| Net expenses | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | |||||||||||
| Net investment income (loss) | 4.24 | % | 0.70 | % | (0.64 | )% | — | % | 1.53 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $339 | $323 | $330 | $209 | $247 | ||||||||||||||||
| Portfolio turnover rate | — | % | — | % | — | % | — | % | — | % | |||||||||||
| (a) | On September 11, 2023, the Fund effected a 1 for 15 reverse share split (See Note 12). Per share data has been adjusted to reflect the reverse share split. |
| (b) | Calculated based upon average shares outstanding |
| (c) | 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. |
| (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. |
See Notes to Financial Statements
| 65 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class A | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $5.21 | $6.07 | $6.67 | $6.44 | $6.15 | ||||||||||||||||
| Net investment income (a) | 0.36 | 0.39 | 0.31 | 0.39 | 0.47 | ||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.18 | (0.87 | ) | (0.60 | ) | 0.26 | 0.28 | ||||||||||||||
| Total from investment operations | 0.54 | (0.48 | ) | (0.29 | ) | 0.65 | 0.75 | ||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (0.25 | ) | (0.19 | ) | (0.23 | ) | (0.31 | ) | (0.40 | ) | |||||||||||
| Return of capital | (0.12 | ) | (0.19 | ) | (0.08 | ) | (0.11 | ) | (0.06 | ) | |||||||||||
| Total distributions | (0.37 | ) | (0.38 | ) | (0.31 | ) | (0.42 | ) | (0.46 | ) | |||||||||||
| Net asset value, end of year | $5.38 | $5.21 | $6.07 | $6.67 | $6.44 | ||||||||||||||||
| Total return (b) | 10.70 | % | (7.73 | )% | (4.43 | )% | 11.24 | % | 12.61 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 2.08 | % | 2.55 | % | 2.33 | % | 2.30 | % | 2.69 | % | |||||||||||
| Net expenses | 1.23 | % | 1.27 | % | 1.28 | % | 1.25 | % | 1.26 | % | |||||||||||
| Net expenses excluding interest and taxes | 1.22 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | |||||||||||
| Net investment income | 6.85 | % | 7.32 | % | 4.81 | % | 6.40 | % | 7.37 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $9 | $5 | $6 | $7 | $5 | ||||||||||||||||
| Portfolio turnover rate | 238 | % | 322 | % | 218 | % | 253 | % | 302 | % | |||||||||||
| (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. |
See Notes to Financial Statements
| 66 |
EMERGING MARKETS BOND FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class I | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $5.26 | $6.15 | $6.77 | $6.53 | $6.25 | ||||||||||||||||
| Net investment income (a) | 0.38 | 0.42 | 0.33 | 0.45 | 0.53 | ||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.17 | (0.88 | ) | (0.61 | ) | 0.23 | 0.27 | ||||||||||||||
| Total from investment operations | 0.55 | (0.46 | ) | (0.28 | ) | 0.68 | 0.80 | ||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (0.24 | ) | (0.21 | ) | (0.25 | ) | (0.32 | ) | (0.45 | ) | |||||||||||
| Return of capital | (0.13 | ) | (0.22 | ) | (0.09 | ) | (0.12 | ) | (0.07 | ) | |||||||||||
| Total distributions | (0.37 | ) | (0.43 | ) | (0.34 | ) | (0.44 | ) | (0.52 | ) | |||||||||||
| Net asset value, end of year | $5.44 | $5.26 | $6.15 | $6.77 | $6.53 | ||||||||||||||||
| Total return (b) | 10.97 | % | (7.21 | )% | (4.30 | )% | 11.60 | % | 13.09 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 1.34 | % | 2.51 | % | 1.74 | % | 1.73 | % | 2.18 | % | |||||||||||
| Net expenses | 0.88 | % | 0.97 | % | 0.96 | % | 0.95 | % | 0.96 | % | |||||||||||
| Net expenses excluding interest and taxes | 0.88 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | |||||||||||
| Net investment income | 7.22 | % | 7.69 | % | 5.01 | % | 7.31 | % | 8.27 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $29 | $2 | $6 | $16 | $18 | ||||||||||||||||
| Portfolio turnover rate | 238 | % | 322 | % | 218 | % | 253 | % | 302 | % | |||||||||||
| (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. |
See Notes to Financial Statements
| 67 |
EMERGING MARKETS BOND FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class Y | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $5.26 | $6.12 | $6.73 | $6.49 | $6.23 | ||||||||||||||||
| Net investment income (a) | 0.38 | 0.40 | 0.32 | 0.46 | 0.47 | ||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.18 | (0.87 | ) | (0.60 | ) | 0.22 | 0.32 | ||||||||||||||
| Total from investment operations | 0.56 | (0.47 | ) | (0.28 | ) | 0.68 | 0.79 | ||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (0.25 | ) | (0.19 | ) | (0.25 | ) | (0.32 | ) | (0.46 | ) | |||||||||||
| Return of capital | (0.12 | ) | (0.20 | ) | (0.08 | ) | (0.12 | ) | (0.07 | ) | |||||||||||
| Total distributions | (0.37 | ) | (0.39 | ) | (0.33 | ) | (0.44 | ) | (0.53 | ) | |||||||||||
| Net asset value, end of year | $5.45 | $5.26 | $6.12 | $6.73 | $6.49 | ||||||||||||||||
| Total return (b) | 11.03 | % | (7.44 | )% | (4.33 | )% | 11.59 | % | 13.05 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 1.35 | % | 2.91 | % | 2.51 | % | 2.78 | % | 2.60 | % | |||||||||||
| Net expenses | 0.97 | % | 1.02 | % | 1.03 | % | 1.00 | % | 1.02 | % | |||||||||||
| Net expenses excluding interest and taxes | 0.96 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | |||||||||||
| Net investment income | 7.12 | % | 7.51 | % | 4.99 | % | 7.42 | % | 7.34 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $47 | $2 | $3 | $3 | $3 | ||||||||||||||||
| Portfolio turnover rate | 238 | % | 322 | % | 218 | % | 253 | % | 302 | % | |||||||||||
| (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. |
See Notes to Financial Statements
| 68 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class A | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $ | 12.25 | $17.02 | $20.96 | $18.03 | $14.14 | |||||||||||||||
| Net investment income (loss) (a) | 0.06 | 0.09 | (0.04 | ) | (0.08 | ) | 0.31 | ||||||||||||||
| Net realized and unrealized gain (loss) on investments | 1.24 | (4.39 | ) | (2.52 | ) | 3.04 | 3.86 | ||||||||||||||
| Total from investment operations | 1.30 | (4.30 | ) | (2.56 | ) | 2.96 | 4.17 | ||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (0.16 | ) | (0.47 | ) | — | (0.03 | ) | (0.28 | ) | ||||||||||||
| Net realized capital gains | — | — | (1.38 | ) | — | — | |||||||||||||||
| Total distributions | (0.16 | ) | (0.47 | ) | (1.38 | ) | (0.03 | ) | (0.28 | ) | |||||||||||
| Net asset value, end of year | $ | 13.39 | $12.25 | $17.02 | $20.96 | $18.03 | |||||||||||||||
| Total return (b) | 10.62 | % | (25.23 | )% | (12.15 | )% | 16.43 | % | 29.52 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 1.59 | % | 1.54 | % | 1.45 | % | 1.47 | % | 1.53 | % | |||||||||||
| Net expenses | 1.59 | % | 1.54 | % | N/A | N/A | N/A | ||||||||||||||
| Expenses excluding interest and taxes | 1.57 | % | 1.53 | % | N/A | N/A | N/A | ||||||||||||||
| Net investment income (loss) | 0.47 | % | 0.65 | % | (0.19 | )% | (0.47 | )% | 1.86 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $64 | $60 | $130 | $157 | $138 | ||||||||||||||||
| Portfolio turnover rate | 11 | % | 11 | % | 38 | % | 30 | % | 24 | % | |||||||||||
| (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. |
See Notes to Financial Statements
| 69 |
EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class C | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $ | 10.54 | $14.70 | $18.47 | $ | 16.02 | $ | 12.60 | |||||||||||||
| Net investment income (loss) (a) | (0.05 | ) | (0.03 | ) | (0.18 | ) | (0.19 | ) | 0.16 | ||||||||||||
| Net realized and unrealized gain (loss) on investments | 1.06 | (3.77 | ) | (2.21 | ) | 2.67 | 3.43 | ||||||||||||||
| Total from investment operations | 1.01 | (3.80 | ) | (2.39 | ) | 2.48 | 3.59 | ||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (0.04 | ) | (0.36 | ) | — | (0.03 | ) | (0.17 | ) | ||||||||||||
| Net realized capital gains | — | — | (1.38 | ) | — | — | |||||||||||||||
| Total distributions | (0.04 | ) | (0.36 | ) | (1.38 | ) | (0.03 | ) | (0.17 | ) | |||||||||||
| Net asset value, end of year | $ | 11.51 | $10.54 | $14.70 | $ | 18.47 | $ | 16.02 | |||||||||||||
| Total return (b) | 9.55 | % | (25.82 | )% | (12.87 | )% | 15.49 | % | 28.51 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 2.58 | % | 2.43 | % | 2.25 | % | 2.27 | % | 2.32 | % | |||||||||||
| Net expenses | 2.52 | % | 2.43 | % | N/A | N/A | N/A | ||||||||||||||
| Net expenses excluding interest and taxes | 2.50 | % | 2.42 | % | N/A | N/A | N/A | ||||||||||||||
| Net investment income (loss) | (0.49 | )% | (0.25 | )% | (0.98 | )% | (1.25 | )% | 1.12 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $9 | $11 | $24 | $33 | $37 | ||||||||||||||||
| Portfolio turnover rate | 11 | % | 11 | % | 38 | % | 30 | % | 24 | % | |||||||||||
| (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. |
See Notes to Financial Statements
| 70 |
EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class I | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $ | 13.08 | $18.16 | $22.21 | $19.01 | $ | 14.90 | ||||||||||||||
| Net investment income (a) | 0.14 | 0.17 | 0.06 | — | (b) | 0.43 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments | 1.33 | (4.68 | ) | (2.69 | ) | 3.23 | 4.05 | ||||||||||||||
| Total from investment operations | 1.47 | (4.51 | ) | (2.63 | ) | 3.23 | 4.48 | ||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (0.24 | ) | (0.57 | ) | (0.04 | ) | (0.03 | ) | (0.37 | ) | |||||||||||
| Net realized capital gains | — | — | (1.38 | ) | — | — | |||||||||||||||
| Total distributions | (0.24 | ) | (0.57 | ) | (1.42 | ) | (0.03 | ) | (0.37 | ) | |||||||||||
| Net asset value, end of year | $ | 14.31 | $13.08 | $18.16 | $22.21 | $ | 19.01 | ||||||||||||||
| Total return (c) | 11.26 | % | (24.81 | )% | (11.76 | )% | 17.00 | % | 30.11 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 1.23 | % | 1.19 | % | 1.14 | % | 1.12 | % | 1.16 | % | |||||||||||
| Net expenses | 1.01 | % | 1.01 | % | 1.00 | % | 1.00 | % | 1.00 | % | |||||||||||
| Net expenses excluding interest and taxes | 1.00 | % | 1.00 | % | N/A | N/A | N/A | ||||||||||||||
| Net investment income (loss) | 1.02 | % | 1.17 | % | 0.28 | % | (0.02 | )% | 2.46 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $323 | $387 | $900 | $1,158 | $804 | ||||||||||||||||
| Portfolio turnover rate | 11 | % | 11 | % | 38 | % | 30 | % | 24 | % | |||||||||||
| (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. |
See Notes to Financial Statements
| 71 |
EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class Y | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||
| Net asset value, beginning of year | $ | 12.51 | $17.39 | $21.33 | $18.28 | $14.33 | |||||||||||||||
| Net investment income (loss) (a) | 0.12 | 0.15 | 0.03 | (0.02 | ) | 0.39 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments | 1.27 | (4.48 | ) | (2.57 | ) | 3.10 | 3.92 | ||||||||||||||
| Total from investment operations | 1.39 | (4.33 | ) | (2.54 | ) | 3.08 | 4.31 | ||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (0.22 | ) | (0.55 | ) | (0.02 | ) | (0.03 | ) | (0.36 | ) | |||||||||||
| Net realized capital gains | — | — | (1.38 | ) | — | — | |||||||||||||||
| Total distributions | (0.22 | ) | (0.55 | ) | (1.40 | ) | (0.03 | ) | (0.36 | ) | |||||||||||
| Net asset value, end of year | $ | 13.68 | $12.51 | $17.39 | $21.33 | $18.28 | |||||||||||||||
| Total return (b) | 11.17 | % | (24.87 | )% | (11.84 | )% | 16.86 | % | 30.07 | % | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 1.23 | % | 1.21 | % | 1.13 | % | 1.14 | % | 1.18 | % | |||||||||||
| Net expenses | 1.11 | % | 1.11 | % | 1.10 | % | 1.10 | % | 1.10 | % | |||||||||||
| Net expenses excluding interest and taxes | 1.10 | % | 1.10 | % | N/A | N/A | N/A | ||||||||||||||
| Net investment income (loss) | 0.92 | % | 1.10 | % | 0.16 | % | (0.10 | )% | 2.32 | % | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of year (in millions) | $318 | $390 | $1,086 | $1,350 | $1,287 | ||||||||||||||||
| Portfolio turnover rate | 11 | % | 11 | % | 38 | % | 30 | % | 24 | % | |||||||||||
| (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. |
See Notes to Financial Statements
| 72 |
EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| Class Z | |||||||||||||||||||||
| Year Ended December 31, | Period Ended December |
||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 31, 2019(a) | |||||||||||||||||
| Net asset value, beginning of period | $ | 13.12 | $18.19 | $22.25 | $19.03 | $18.08 | |||||||||||||||
| Net investment income (loss) (b) | 0.16 | 0.17 | 0.07 | (0.02 | ) | (0.02 | ) | ||||||||||||||
| Net realized and unrealized gain (loss) on investments | 1.32 | (4.67 | ) | (2.69 | ) | 3.27 | 1.34 | ||||||||||||||
| Total from investment operations | 1.48 | (4.50 | ) | (2.62 | ) | 3.25 | 1.32 | ||||||||||||||
| Distributions from: | |||||||||||||||||||||
| Net investment income | (0.25 | ) | (0.57 | ) | (0.06 | ) | (0.03 | ) | (0.37 | ) | |||||||||||
| Net realized capital gains | — | — | (1.38 | ) | — | — | |||||||||||||||
| Total distributions | (0.25 | ) | (0.57 | ) | (1.44 | ) | (0.03 | ) | (0.37 | ) | |||||||||||
| Net asset value, end of period | $ | 14.35 | $13.12 | $18.19 | $22.25 | $19.03 | |||||||||||||||
| Total return (c) | 11.34 | % | (24.69 | )% | (11.71 | )% | 17.09 | % | 7.29 | %(d) | |||||||||||
| Ratios to average net assets | |||||||||||||||||||||
| Gross expenses | 1.18 | % | 1.17 | % | 1.08 | % | 1.13 | % | 1.31 | %(e) | |||||||||||
| Net expenses | 0.91 | % | 0.91 | % | 0.90 | % | 0.90 | % | 0.90 | %(e) | |||||||||||
| Net expenses excluding interest and taxes | 0.90 | % | 0.90 | % | N/A | N/A | N/A | (e) | |||||||||||||
| Net investment income (loss) | 1.14 | % | 1.26 | % | 0.33 | % | (0.12 | )% | (0.27 | )%(e) | |||||||||||
| Supplemental data | |||||||||||||||||||||
| Net assets, end of period (in millions) | $70 | $73 | $63 | $74 | $6 | ||||||||||||||||
| Portfolio turnover rate | 11 | % | 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
| 73 |
ENVIRONMENTAL SUSTAINABILITY FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| Class A | |||||||||||||
Year Ended December 31, | Period Ended December 31, 2021(a) |
||||||||||||
| 2023 | 2022 | ||||||||||||
| Net asset value, beginning of period | $ | 18.08 | $24.24 | $ | 25.00 | ||||||||
| Net investment income (loss) (b) | 0.15 | 0.04 | (0.09 | ) | |||||||||
| Net realized and unrealized (loss) on investments | (1.00 | ) | (5.95 | ) | (0.67 | ) | |||||||
| Total from investment operations | (0.85 | ) | (5.91 | ) | (0.76 | ) | |||||||
| Distributions from: | |||||||||||||
| Net investment income | (0.01 | ) | (0.25 | ) | — | ||||||||
| Net realized capital gains | — | — | (c) | — | |||||||||
| Total distributions | (0.01 | ) | (0.25 | ) | — | ||||||||
| Net asset value, end of period | $ | 17.22 | $18.08 | $ | 24.24 | ||||||||
| Total return (d) | (4.70 | )% | (24.42 | )% | (3.04 | )%(e) | |||||||
| Ratios to average net assets | |||||||||||||
| Gross expenses | 7.77 | % | 5.79 | % | 6.68 | %(f) | |||||||
| Net expenses | 1.25 | % | 1.25 | % | 1.26 | %(f) | |||||||
| Net expenses excluding interest and taxes | 1.25 | % | 1.25 | % | 1.25 | %(f) | |||||||
| Net investment income (loss) | 0.85 | % | 0.20 | % | (0.76 | )%(f) | |||||||
| Supplemental data | |||||||||||||
| Net assets, end of period (in millions) | $1 | $1 | $1 | ||||||||||
| Portfolio turnover rate | 13 | % | 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
| 74 |
ENVIRONMENTAL SUSTAINABILITY FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| Class I | |||||||||||||
Year Ended December 31, | Period Ended December 31, 2021(a) |
||||||||||||
| 2023 | 2022 | ||||||||||||
| Net asset value, beginning of period | $ | 18.10 | $24.28 | $ | 25.00 | ||||||||
| Net investment income (loss) (b) | 0.21 | 0.10 | (0.05 | ) | |||||||||
| Net realized and unrealized (loss) on investments | (1.01 | ) | (5.97 | ) | (0.67 | ) | |||||||
| Total from investment operations | (0.80 | ) | (5.87 | ) | (0.72 | ) | |||||||
| Distributions from: | |||||||||||||
| Net investment income | (0.10 | ) | (0.31 | ) | — | ||||||||
| Net realized capital gains | — | — | (c) | — | |||||||||
| Total distributions | (0.10 | ) | (0.31 | ) | — | ||||||||
| Net asset value, end of period | $ | 17.20 | $18.10 | $ | 24.28 | ||||||||
| Total return (d) | (4.41 | )% | (24.23 | )% | (2.88 | )%(e) | |||||||
| Ratios to average net assets | |||||||||||||
| Gross expenses | 5.47 | % | 4.29 | % | 5.45 | %(f) | |||||||
| Net expenses | 0.95 | % | 0.95 | % | 0.96 | %(f) | |||||||
| Net expenses excluding interest and taxes | 0.95 | % | 0.95 | % | 0.95 | %(f) | |||||||
| Net investment income (loss) | 1.16 | % | 0.50 | % | (0.46 | )%(f) | |||||||
| Supplemental data | |||||||||||||
| Net assets, end of period (in millions) | $2 | $2 | $2 | ||||||||||
| Portfolio turnover rate | 13 | % | 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
| 75 |
ENVIRONMENTAL SUSTAINABILITY FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| Class Y | |||||||||||||
Year Ended December 31, | Period Ended December 31, 2021(a) |
||||||||||||
| 2023 | 2022 | ||||||||||||
| Net asset value, beginning of period | $ | 18.09 | $24.27 | $25.00 | |||||||||
| Net investment income (loss) (b) | 0.19 | 0.08 | (0.07 | ) | |||||||||
| Net realized and unrealized (loss) on investments | (1.01 | ) | (5.97 | ) | (0.66 | ) | |||||||
| Total from investment operations | (0.82 | ) | (5.89 | ) | (0.73 | ) | |||||||
| Distributions from: | |||||||||||||
| Net investment income | (0.06 | ) | (0.29 | ) | — | ||||||||
| Net realized capital gains | — | — | (c) | — | |||||||||
| Total distributions | (0.06 | ) | (0.29 | ) | — | ||||||||
| Net asset value, end of period | $ | 17.21 | $18.09 | $24.27 | |||||||||
| Total return (d) | (4.50 | )% | (24.30 | )% | (2.92 | )%(e) | |||||||
| Ratios to average net assets | |||||||||||||
| Gross expenses | 5.73 | % | 4.42 | % | 5.45 | %(f) | |||||||
| Net expenses | 1.05 | % | 1.05 | % | 1.06 | %(f) | |||||||
| Net expenses excluding interest and taxes | 1.05 | % | 1.05 | % | 1.05 | %(f) | |||||||
| Net investment income (loss) | 1.05 | % | 0.40 | % | (0.56 | )%(f) | |||||||
| Supplemental data | |||||||||||||
| Net assets, end of period (in millions) | $1 | $1 | $2 | ||||||||||
| Portfolio turnover rate | 13 | % | 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
| 76 |
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class A | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $ | 41.22 | $ | 39.21 | $ | 33.51 | $ | 28.39 | $ | 25.66 | ||||||||||||
| Net investment income (a) | 0.78 | 0.89 | 0.50 | 0.13 | 0.17 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (2.40 | ) | 2.16 | 5.73 | 5.17 | 2.81 | ||||||||||||||||
| Total from investment operations | (1.62 | ) | 3.05 | 6.23 | 5.30 | 2.98 | ||||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | (0.90 | ) | (1.04 | ) | (0.53 | ) | (0.18 | ) | (0.25 | ) | ||||||||||||
| Net asset value, end of year | $ | 38.70 | $ | 41.22 | $ | 39.21 | $ | 33.51 | $ | 28.39 | ||||||||||||
| Total return (b) | (3.89 | )% | 7.74 | % | 18.61 | % | 18.68 | % | 11.64 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 1.50 | % | 1.47 | % | 1.48 | % | 1.62 | % | 1.60 | % | ||||||||||||
| Net expenses | 1.38 | % | 1.38 | % | 1.38 | % | 1.38 | % | 1.38 | % | ||||||||||||
| Net investment income | 1.97 | % | 2.08 | % | 1.29 | % | 0.53 | % | 0.63 | % | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $117 | $140 | $152 | $106 | $118 | |||||||||||||||||
| Portfolio turnover rate | 44 | %(c) | 34 | % | 28 | % | 37 | % | 33 | % | ||||||||||||
| (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) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 77 |
GLOBAL RESOURCES FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class C | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $ | 34.81 | $ | 33.28 | $ | 28.57 | $ | 24.27 | $ | 21.93 | ||||||||||||
| Net investment income (loss) (a) | 0.39 | 0.46 | 0.15 | (0.06 | ) | (0.05 | ) | |||||||||||||||
| Net realized and unrealized gain (loss) on investments | (2.02 | ) | 1.84 | 4.90 | 4.36 | 2.39 | ||||||||||||||||
| Total from investment operations | (1.63 | ) | 2.30 | 5.05 | 4.30 | 2.34 | ||||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | (0.60 | ) | (0.77 | ) | (0.34 | ) | — | — | ||||||||||||||
| Net asset value, end of year | $ | 32.58 | $ | 34.81 | $ | 33.28 | $ | 28.57 | $ | 24.27 | ||||||||||||
| Total return (b) | (4.67 | )% | 6.88 | % | 17.67 | % | 17.72 | % | 10.67 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 2.50 | % | 2.39 | % | 2.52 | % | 2.65 | % | 2.44 | % | ||||||||||||
| Net expenses | 2.20 | % | 2.20 | % | 2.20 | % | 2.20 | % | 2.20 | % | ||||||||||||
| Net investment income (loss) | 1.16 | % | 1.28 | % | 0.45 | % | (0.27 | )% | (0.19 | )% | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $10 | $13 | $14 | $11 | $13 | |||||||||||||||||
| Portfolio turnover rate | 44 | %(c) | 34 | % | 28 | % | 37 | % | 33 | % | ||||||||||||
| (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) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 78 |
GLOBAL RESOURCES FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class I | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $ | 43.33 | $ | 41.17 | $ | 35.15 | $ | 29.74 | $ | 26.94 | ||||||||||||
| Net investment income (a) | 1.02 | 1.17 | 0.67 | 0.26 | 0.30 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (2.54 | ) | 2.23 | 6.04 | 5.45 | 2.94 | ||||||||||||||||
| Total from investment operations | (1.52 | ) | 3.40 | 6.71 | 5.71 | 3.24 | ||||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | (1.09 | ) | (1.24 | ) | (0.69 | ) | (0.30 | ) | (0.44 | ) | ||||||||||||
| Net asset value, end of year | $ | 40.72 | $ | 43.33 | $ | 41.17 | $ | 35.15 | $ | 29.74 | ||||||||||||
| Total return (b) | (3.47 | )% | 8.19 | % | 19.12 | % | 19.23 | % | 12.06 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 1.13 | % | 1.10 | % | 1.11 | % | 1.14 | % | 1.09 | % | ||||||||||||
| Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||
| Net investment income | 2.44 | % | 2.60 | % | 1.66 | % | 0.98 | % | 1.05 | % | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $360 | $503 | $386 | $358 | $460 | |||||||||||||||||
| Portfolio turnover rate | 44 | %(c) | 34 | % | 28 | % | 37 | % | 33 | % | ||||||||||||
| (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) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 79 |
GLOBAL RESOURCES FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class Y | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $ | 42.06 | $ | 40.00 | $ | 34.17 | $ | 28.93 | $ | 26.19 | ||||||||||||
| Net investment income (a) | 0.91 | 1.05 | 0.62 | 0.20 | 0.24 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (2.45 | ) | 2.17 | 5.83 | 5.29 | 2.87 | ||||||||||||||||
| Total from investment operations | (1.54 | ) | 3.22 | 6.45 | 5.49 | 3.11 | ||||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | (1.00 | ) | (1.16 | ) | (0.62 | ) | (0.25 | ) | (0.37 | ) | ||||||||||||
| Net asset value, end of year | $ | 39.52 | $ | 42.06 | $ | 40.00 | $ | 34.17 | $ | 28.93 | ||||||||||||
| Total return (b) | (3.63 | )% | 7.99 | % | 18.92 | % | 18.99 | % | 11.88 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 1.16 | % | 1.14 | % | 1.18 | % | 1.29 | % | 1.24 | % | ||||||||||||
| Net expenses | 1.13 | % | 1.13 | % | 1.13 | % | 1.13 | % | 1.13 | % | ||||||||||||
| Net investment income | 2.25 | % | 2.41 | % | 1.56 | % | 0.76 | % | 0.85 | % | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $188 | $302 | $231 | $122 | $115 | |||||||||||||||||
| Portfolio turnover rate | 44 | %(c) | 34 | % | 28 | % | 37 | % | 33 | % | ||||||||||||
| (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) | Portfolio turnover rate excludes in-kind transactions. |
See Notes to Financial Statements
| 80 |
INTERNATIONAL INVESTORS GOLD FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class A | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $8.89 | $10.32 | $12.82 | $10.16 | $7.65 | |||||||||||||||||
| Net investment income (loss) (a) | — | (b) | 0.03 | — | (b) | (0.06 | ) | (0.06 | ) | |||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.86 | (1.46 | ) | (1.84 | ) | 4.22 | 2.94 | |||||||||||||||
| Total from investment operations | 0.86 | (1.43 | ) | (1.84 | ) | 4.16 | 2.88 | |||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | (0.01 | ) | — | (0.66 | ) | (1.50 | ) | (0.37 | ) | |||||||||||||
| Net asset value, end of year | $9.74 | $8.89 | $10.32 | $12.82 | $ | 10.16 | ||||||||||||||||
| Total return (c) | 9.68 | % | (13.86 | )% | (14.22 | )% | 41.39 | % | 38.03 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 1.43 | % | 1.42 | %(d) | 1.34 | %(d) | 1.34 | % | 1.49 | % | ||||||||||||
| Net expenses | 1.43 | % | 1.42 | %(d) | 1.34 | %(d) | 1.34 | % | 1.45 | % | ||||||||||||
| Net investment income (loss) | 0.04 | % | 0.28 | %(d) | — | %(d) | (0.45 | )% | (0.63 | )% | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $261 | $243 | $302 | $378 | $277 | |||||||||||||||||
| Portfolio turnover rate | 25 | % | 39 | % | 23 | % | 32 | % | 21 | % | ||||||||||||
| (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) | 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
| 81 |
INTERNATIONAL INVESTORS GOLD FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class C | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $7.30 | $8.54 | $10.83 | $8.77 | $6.64 | |||||||||||||||||
| Net investment loss (a) | (0.06 | ) | (0.04 | ) | (0.08 | ) | (0.13 | ) | (0.11 | ) | ||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.71 | (1.20 | ) | (1.55 | ) | 3.62 | 2.55 | |||||||||||||||
| Total from investment operations | 0.65 | (1.24 | ) | (1.63 | ) | 3.49 | 2.44 | |||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | — | — | (0.66 | ) | (1.43 | ) | (0.31 | ) | ||||||||||||||
| Net asset value, end of year | $7.95 | $7.30 | $8.54 | $10.83 | $8.77 | |||||||||||||||||
| Total return (b) | 8.90 | % | (14.52 | )% | (14.89 | )% | 40.31 | % | 37.12 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 2.25 | % | 2.21 | %(c) | 2.13 | %(c) | 2.12 | % | 2.31 | % | ||||||||||||
| Net expenses | 2.20 | % | 2.20 | %(c) | 2.13 | %(c) | 2.12 | % | 2.20 | % | ||||||||||||
| Net investment loss | (0.73 | )% | (0.51 | )%(c) | (0.79 | )%(c) | (1.21 | )% | (1.36 | )% | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $33 | $36 | $49 | $63 | $38 | |||||||||||||||||
| Portfolio turnover rate | 25 | % | 39 | % | 23 | % | 32 | % | 21 | % | ||||||||||||
| (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) | 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
| 82 |
INTERNATIONAL INVESTORS GOLD FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class I | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $ | 12.30 | $14.22 | $17.31 | $ | 13.32 | $9.93 | |||||||||||||||
| Net investment income (loss) (a) | 0.06 | 0.09 | 0.05 | (0.02 | ) | (0.02 | ) | |||||||||||||||
| Net realized and unrealized gain (loss) on investments | 1.20 | (2.01 | ) | (2.48 | ) | 5.55 | 3.82 | |||||||||||||||
| Total from investment operations | 1.26 | (1.92 | ) | (2.43 | ) | 5.53 | 3.80 | |||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | (0.05 | ) | — | (0.66 | ) | (1.54 | ) | (0.41 | ) | |||||||||||||
| Net asset value, end of year | $ | 13.51 | $12.30 | $14.22 | $ | 17.31 | $13.32 | |||||||||||||||
| Total return (b) | 10.26 | % | (13.50 | )% | (13.94 | )% | 41.88 | % | 38.61 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 1.12 | % | 1.09 | %(c) | 1.03 | %(c) | 1.02 | % | 1.09 | % | ||||||||||||
| Net expenses | 1.00 | % | 1.00 | %(c) | 1.00 | %(c) | 1.00 | % | 1.00 | % | ||||||||||||
| Net investment income (loss) | 0.47 | % | 0.70 | %(c) | 0.34 | %(c) | (0.12 | )% | (0.16 | )% | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $164 | $156 | $203 | $244 | $236 | |||||||||||||||||
| Portfolio turnover rate | 25 | % | 39 | % | 23 | % | 32 | % | 21 | % | ||||||||||||
| (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) | 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
| 83 |
INTERNATIONAL INVESTORS GOLD FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class Y | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $9.19 | $10.64 | $13.15 | $ | 10.40 | $7.82 | ||||||||||||||||
| Net investment income (loss) (a) | 0.04 | 0.06 | 0.03 | (0.02 | ) | (0.03 | ) | |||||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.89 | (1.51 | ) | (1.88 | ) | 4.31 | 3.01 | |||||||||||||||
| Total from investment operations | 0.93 | (1.45 | ) | (1.85 | ) | 4.29 | 2.98 | |||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | (0.04 | ) | — | (0.66 | ) | (1.54 | ) | (0.40 | ) | |||||||||||||
| Net asset value, end of year | $10.08 | $9.19 | $10.64 | $ | 13.15 | $10.40 | ||||||||||||||||
| Total return (b) | 10.13 | % | (13.63 | )% | (13.94 | )% | 41.68 | % | 38.52 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 1.13 | % | 1.11 | %(c) | 1.06 | %(c) | 1.05 | % | 1.17 | % | ||||||||||||
| Net expenses | 1.10 | % | 1.10 | %(c) | 1.06 | %(c) | 1.05 | % | 1.10 | % | ||||||||||||
| Net investment income (loss) | 0.38 | % | 0.59 | %(c) | 0.29 | %(c) | (0.12 | )% | (0.29 | )% | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $273 | $241 | $306 | $375 | $176 | |||||||||||||||||
| Portfolio turnover rate | 25 | % | 39 | % | 23 | % | 32 | % | 21 | % | ||||||||||||
| (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) | 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
| 84 |
VANECK MORNINGSTAR WIDE MOAT FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class I | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $ | 26.02 | $33.51 | $ | 30.70 | $ | 29.13 | $ | 23.94 | |||||||||||||
| Net investment income (a) | 0.36 | 0.31 | 0.40 | 0.47 | 0.49 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 7.85 | (4.82 | ) | 6.92 | 3.63 | 7.86 | ||||||||||||||||
| Total from investment operations | 8.21 | (4.51 | ) | 7.32 | 4.10 | 8.35 | ||||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | (0.25 | ) | (0.30 | ) | (0.38 | ) | (0.48 | ) | (0.46 | ) | ||||||||||||
| Net realized capital gains | (1.64 | ) | (2.68 | ) | (4.13 | ) | (2.05 | ) | (2.70 | ) | ||||||||||||
| Total distributions | (1.89 | ) | (2.98 | ) | (4.51 | ) | (2.53 | ) | (3.16 | ) | ||||||||||||
| Net asset value, end of year | $ | 32.34 | $26.02 | $ | 33.51 | $ | 30.70 | $ | 29.13 | |||||||||||||
| Total return (b) | 31.66 | % | (13.63 | )% | 24.04 | % | 14.18 | % | 34.80 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 1.96 | % | 2.04 | % | 2.26 | % | 4.28 | % | 5.21 | % | ||||||||||||
| Net expenses | 0.60 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
| Net expenses excluding interest and taxes | 0.59 | % | 0.59 | % | N/A | N/A | N/A | |||||||||||||||
| Net investment income | 1.18 | % | 1.03 | % | 1.13 | % | 1.65 | % | 1.72 | % | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $6 | $2 | $4 | $3 | $1 | |||||||||||||||||
| Portfolio turnover rate | 73 | % | 72 | % | 59 | % | 64 | % | 108 | % | ||||||||||||
| (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. |
See Notes to Financial Statements
| 85 |
VANECK MORNINGSTAR WIDE MOAT FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year:
| Class Z | ||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
| Net asset value, beginning of year | $ | 25.63 | $33.04 | $ | 30.32 | $ | 28.76 | $ | 23.95 | |||||||||||||
| Net investment income (a) | 0.34 | 0.34 | 0.44 | 0.49 | 0.52 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 7.77 | (4.75 | ) | 6.82 | 3.59 | 7.89 | ||||||||||||||||
| Total from investment operations | 8.11 | (4.41 | ) | 7.26 | 4.08 | 8.41 | ||||||||||||||||
| Distributions from: | ||||||||||||||||||||||
| Net investment income | (0.33 | ) | (0.32 | ) | (0.41 | ) | (0.47 | ) | (0.90 | ) | ||||||||||||
| Net realized capital gains | (1.64 | ) | (2.68 | ) | (4.13 | ) | (2.05 | ) | (2.70 | ) | ||||||||||||
| Total distributions | (1.97 | ) | (3.00 | ) | (4.54 | ) | (2.52 | ) | (3.60 | ) | ||||||||||||
| Net asset value, end of year | $ | 31.77 | $25.63 | $ | 33.04 | $ | 30.32 | $ | 28.76 | |||||||||||||
| Total return (b) | 31.76 | % | (13.52 | )% | 24.15 | % | 14.31 | % | 35.02 | % | ||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||
| Gross expenses | 1.27 | % | 1.28 | % | 1.59 | % | 2.48 | % | 3.02 | % | ||||||||||||
| Net expenses | 0.50 | % | 0.49 | % | 0.49 | % | 0.49 | % | 0.49 | % | ||||||||||||
| Net expenses excluding interest and taxes | 0.49 | % | 0.49 | % | N/A | N/A | N/A | |||||||||||||||
| Net investment income | 1.12 | % | 1.14 | % | 1.23 | % | 1.74 | % | 1.83 | % | ||||||||||||
| Supplemental data | ||||||||||||||||||||||
| Net assets, end of year (in millions) | $18 | $13 | $15 | $10 | $8 | |||||||||||||||||
| Portfolio turnover rate | 73 | % | 72 | % | 59 | % | 64 | % | 108 | % | ||||||||||||
| (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. |
See Notes to Financial Statements
| 86 |
VANECK FUNDS
December 31, 2023
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 |
| 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 seeks 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. | |
| Level 2 — Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
| 87 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(continued)
| 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. | |
| 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 |
| 88 |
| 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 December 31, 2023, the CM Commodity Index Fund and International Investors Gold Fund held $105,605,050 and $51,086 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 forward foreign currency contracts, 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 December 31, 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-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 |
| 89 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(continued)
| 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 December 31, 2023 is reflected in the Fund’s Consolidated Schedule of Investments. | |
| During the year ending in December 31, 2023, the CM Commodity Index Fund held swap contracts for twelve months with an average monthly notional amount of $559,392,750. | |
| 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 year ending in December 31, 2023, the Emerging Market Bond Fund held forward foreign currency contracts for eight months. The average amount purchased and sold (in U.S. dollars) was $686,594 and $601,863, respectively. The Emerging Markets Fund held forward foreign currency contracts for one month during the year, and the average amount purchased and sold (in U.S. dollars) was $0 and $120,968, respectively. The International Investors Gold Fund held forward foreign currency contracts for one month during the year, and the average amount purchased and sold (in U.S. dollars) was $2,915,121 and $0, respectively. There were no open forward foreign currency contracts held at December 31, 2023. | |
| At December 31, 2023, the following Funds held derivatives (not designated as hedging instruments under GAAP): |
| Liabilities Derivatives | |||||
| Commodities Futures Risk | |||||
| CM Commodity Index Fund | |||||
| Swap contracts1 | $ | 16,972,840 | |||
| 1 | Statements of Assets and Liabilities location: Total return swap contracts, at value |
| 90 |
| The impact of transactions in derivative instruments during the year ended December 31, 2023, was as follows: |
| Commodities Futures Risk | Foreign Currency Risk | ||||||||
| CM Commodity Index Fund | |||||||||
| Realized gain (loss): | |||||||||
| Swap contracts1 | $ | (14,940,527 | ) | $ | — | ||||
| Net change in unrealized appreciation (depreciation): | |||||||||
| Swap contracts2 | (22,067,736 | ) | — | ||||||
| Emerging Markets Bond Fund | |||||||||
| Realized gain (loss): | |||||||||
| Forward foreign currency contracts3 | — | (174,826 | ) | ||||||
| Emerging Markets Fund | |||||||||
| Realized gain (loss): | |||||||||
| Forward foreign currency contracts3 | — | 43 | |||||||
| International Investors Gold Fund | |||||||||
| Realized gain (loss): | |||||||||
| Forward foreign currency contracts3 | — | (3,727 | ) | ||||||
| 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 |
| 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 December 31, 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 December 31, 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. |
| Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statements of Assets and Liabilities | Financial Instruments and Cash Collateral Pledged | Net Amount | ||||||
| CM Commodity Index Fund | ||||||||||
| Total return swap contracts | $16,972,840 | $— | $16,972,840 | $— | $16,972,840 |
| 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 |
| 91 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(continued)
| discounts, is accrued as earned. 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, 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% |
| 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 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 following table.
| 92 |
The current expense limitations and the amounts waived/assumed by the Adviser for the year ending in December 31, 2023, are as follows:
| Fund | Expense Limitations | Expenses Assumed by the Adviser | ||||||
| CM Commodity Index Fund | ||||||||
| Class A | 0.95 | % | $ | 98,405 | ||||
| Class I | 0.65 | 460,621 | ||||||
| Class Y | 0.70 | 772,967 | ||||||
| Emerging Markets Bond Fund* | ||||||||
| Class A | 1.20 | 58,009 | ||||||
| Class I | 0.85 | 106,316 | ||||||
| Class Y | 0.95 | 104,476 | ||||||
| Emerging Markets Fund | ||||||||
| Class A | 1.60 | — | ||||||
| Class C | 2.50 | 6,152 | ||||||
| Class I | 1.00 | 754,201 | ||||||
| Class Y | 1.10 | 441,448 | ||||||
| Class Z | 0.90 | 195,364 | ||||||
| Environmental Sustainability Fund | ||||||||
| Class A | 1.25 | 51,597 | ||||||
| Class I | 0.95 | 76,148 | ||||||
| Class Y | 1.05 | 68,497 | ||||||
| Global Resources Fund | ||||||||
| Class A | 1.38 | 151,694 | ||||||
| Class C | 2.20 | 34,338 | ||||||
| Class I | 0.95 | 795,902 | ||||||
| Class Y | 1.13 | 80,856 | ||||||
| International Investors Gold Fund | ||||||||
| Class A | 1.45 | — | ||||||
| Class C | 2.20 | 16,293 | ||||||
| Class I | 1.00 | 194,068 | ||||||
| Class Y | 1.10 | 90,482 | ||||||
| VanEck Morningstar Wide Moat Fund | ||||||||
| Class I | 0.59 | 45,627 | ||||||
| Class Z | 0.49 | 121,718 | ||||||
| * | Prior to June 16, 2023, the expense limitations were 1.25%, 0.95%, and 1.00% for Class A, I, and Y, respectively. |
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 year ended December 31, 2023, Van Eck Securities Corporation (the “Distributor”), and affiliate of the Adviser, received a total of $529,683 in sales loads relating to the sale of shares of the Funds, of which $487,868 was reallowed to broker/dealers and the remaining $41,815 was retained by the Distributor.
Certain officers of the Trust are officers, directors or stockholders of the Adviser and the Distributor.
At December 31, 2023, the Adviser owned approximately 85% of Class A, 88% of Class I and 98% Class Y of VanEck Environmental Sustainability Fund and the Distributor owned approximately 38% of Class I and 50% of Class Z of VanEck Morningstar Wide Moat Fund.
| 93 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(continued)
Note 4—Investments—For the year ending in December 31, 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 | $ | 187,410,065 | $ | 122,537,852 | ||||
| Emerging Markets Fund | 91,855,639 | 310,991,331 | ||||||
| Environmental Sustainability Fund | 498,856 | 486,949 | ||||||
| Global Resources Fund | 360,038,383 | 517,318,181 | * | |||||
| International Investors Gold Fund | 178,330,144 | 176,306,733 | ||||||
| VanEck Morningstar Wide Moat Fund | 17,856,189 | 13,692,021 | ||||||
| * | Amount excludes an in-kind redemption of $35,102,835. |
Note 5—Income Taxes—As of December 31, 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 | $463,076,047 | $50,292,256 | $(3,175,788) | $47,116,468 | ||||||||||||
| Emerging Markets Bond Fund | 79,732,512 | 5,070,682 | (2,228,300) | 2,842,382 | ||||||||||||
| Emerging Markets Fund | 701,939,407 | 213,737,981 | (125,194,718) | 88,543,263 | ||||||||||||
| Environmental Sustainability Fund | 5,212,831 | 375,857 | (1,527,208) | (1,151,351) | ||||||||||||
| Global Resources Fund | 567,156,659 | 163,872,052 | (43,719,929) | 120,152,123 | ||||||||||||
| International Investors Gold Fund | 557,452,682 | 235,304,846 | (57,147,268) | 178,157,578 | ||||||||||||
| VanEck Morningstar Wide Moat Fund | 22,222,355 | 3,299,142 | (1,117,013) | 2,182,129 | ||||||||||||
At December 31, 2023, the components of accumulated distributable earnings (loss) on a tax basis, for each Fund were as follows:
| Fund | Undistributed Ordinary Income | (Accumulated Capital Losses)/ Undistributed Capital Gains | Qualified Late-Year Losses* | Other Temporary Differences | Unrealized Appreciation (Depreciation) | Total Distributable Earnings (Loss) | ||||||||||||||||||
| CM Commodity Index Fund | $225,463 | $(22,762) | $– | $(379,981) | $(16,879,030) | $(17,056,310) | ||||||||||||||||||
| Emerging Markets Bond Fund | – | (34,817,992) | (329) | 48,644 | 2,847,220 | (31,922,457) | ||||||||||||||||||
| Emerging Markets Fund | 6,120,583 | (329,809,678) | – | (1,347,502) | 83,382,980 | (241,653,617) | ||||||||||||||||||
| Environmental Sustainability Fund | – | (500,129) | – | (1,408) | (1,151,281) | (1,652,818) | ||||||||||||||||||
| Global Resources Fund | 1,356,414 | (949,417,820) | – | (520,150) | 120,153,933 | (828,427,623) | ||||||||||||||||||
| International Investors Gold Fund | 22,094,952 | (367,169,235) | – | (524,256) | 178,168,835 | (167,429,704) | ||||||||||||||||||
| VanEck Morningstar Wide Moat Fund | 189,806 | – | – | (8,778) | 2,182,129 | 2,363,157 | ||||||||||||||||||
| * | Qualified late year losses incurred after October 31, 2023 are deemed to arise on January 1, 2024. |
| 94 |
The tax character of dividends paid to shareholders were as follows:
| December 31, 2023 | December 31, 2022 | |||||||||||||||||||
| Fund | Ordinary Income* | Return of Capital | Ordinary Income* | Long-Term Capital Gains | Return of Capital | |||||||||||||||
| CM Commodity Index Fund | $18,250,493 | $– | $128,704,819 | $– | $– | |||||||||||||||
| Emerging Markets Bond Fund | 2,929,915 | 1,478,873 | 448,243 | – | 464,039 | |||||||||||||||
| Emerging Markets Fund | 12,502,135 | – | 40,001,262 | – | – | |||||||||||||||
| Environmental Sustainability Fund | 15,007 | – | 62,509 | 340 | – | |||||||||||||||
| Global Resources Fund | 17,251,503 | – | 26,001,550 | – | – | |||||||||||||||
| International Investors Gold Fund | 2,001,634 | – | – | – | – | |||||||||||||||
| VanEck Morningstar Wide Moat Fund | 1,387,956 | – | 606,197 | 1,103,725 | – | |||||||||||||||
| * | Includes distributions from short-term capital gains, if any. |
At December 31, 2023, 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 | $ | (22,762 | ) | $ | – | $ | (22,762 | ) | ||||
| Emerging Markets Bond Fund | (33,053,213 | ) | (1,764,779 | ) | (34,817,992 | ) | ||||||
| Emerging Markets Fund | (102,750,031 | ) | (227,059,647 | ) | (329,809,678 | ) | ||||||
| Environmental Sustainability Fund | (103,823 | ) | (396,306 | ) | (500,129 | ) | ||||||
| Global Resources Fund | (130,698,252 | ) | (818,719,568 | ) | (949,417,820 | ) | ||||||
| International Investors Gold Fund | (115,159,600 | ) | (252,009,635 | ) | (367,169,235 | ) | ||||||
Additionally, Global Resources Fund utilized $59,387,360 of its capital loss carryover available from prior years.
During the year ended December 31, 2023, as a result of permanent book to tax differences primarily due to the tax treatment of gains/(losses) from securities redeemed in-kind, tax net operating losses and differences in the treatment of income and realized gains from controlled foreign corporation subsidiaries, the Funds incurred differences that affected distributable earnings and aggregate paid in capital by the amounts in the table below. Net assets were not affected by these reclassifications.
| Fund | Increase (Decrease) in Total Distributable Earnings (Loss) | Increase (Decrease) in Aggregate Paid in Capital | ||||||
| CM Commodity Index Fund | $ | 143,162,224 | $ | (143,162,224 | ) | |||
| Environmental Sustainability Fund | 1,114 | (1,114 | ) | |||||
| Global Resources Fund | (1,108,239 | ) | 1,108,239 | |||||
| International Investors Gold Fund | (5,830,551 | ) | 5,830,551 | |||||
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.
| 95 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(continued)
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the year ending in December 31, 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.
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.
Monetary policies put in place by the Egyptian government and its agencies, has limited the ability of the Emerging Markets Fund to convert assets and liabilities denominated in the Egyptian pounds into US dollars
| 96 |
using the quoted prices for such currencies. As a result, opportunities to repatriate the Egyptian pound into US dollars has been limited and subject to delays. Quoted prices for the Egyptian pound are currently materially disconnected from market settlement rates and the Fund has not been able to access transactions at market settlement rates. As a result, the values of the assets and liabilities denominated in Egyptian pounds which may ultimately be realized could be materially different from those reported in these Fund’s statements of assets and liabilities.
Following Russia’s large-scale invasion of Ukraine, governments of the United States and many other countries imposed economic sanctions on certain Russian individuals and Russian governmental, corporate and banking entities. A number of jurisdictions also instituted broad sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. In response, the government of Russia 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 experienced significant declines. 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 (a) | Emerging Markets Bond Fund | |||||||||||||||
| Year
Ended December 31, 2023 | Year
Ended December 31, 2022 | Year
Ended December 31, 2023 | Year
Ended December 31, 2022 | |||||||||||||
| Class A: | ||||||||||||||||
| Shares sold | 266,670 | 300,707 | 1,874,672 | 102,514 | ||||||||||||
| Shares reinvested | 13,342 | 56,702 | 80,228 | 59,131 | ||||||||||||
| Shares redeemed | (207,510 | ) | (442,612 | ) | (1,341,810 | ) | (199,923 | ) | ||||||||
| Net increase (decrease) | 72,502 | (85,203 | ) | 613,090 | (38,278 | ) | ||||||||||
| Class I: | ||||||||||||||||
| Shares sold | 1,024,023 | 1,202,548 | 6,466,225 | 34,142 | ||||||||||||
| Shares reinvested | 38,289 | 323,561 | 327,044 | 49,145 | ||||||||||||
| Shares redeemed | (2,378,167 | ) | (2,054,212 | ) | (1,859,433 | ) | (575,360 | ) | ||||||||
| Net increase (decrease) | (1,315,855 | ) | (528,103 | ) | 4,933,836 | (492,073 | ) | |||||||||
| Class Y: | ||||||||||||||||
| Shares sold | 2,356,445 | 2,860,680 | 9,449,809 | 56,930 | ||||||||||||
| Shares reinvested | 178,790 | 891,283 | 390,553 | 35,991 | ||||||||||||
| Shares redeemed | (2,002,710 | ) | (3,480,323 | ) | (1,573,420 | ) | (245,107 | ) | ||||||||
| Net increase (decrease) | 532,525 | 271,640 | 8,266,942 | (152,186 | ) | |||||||||||
| (a) | Share activity has been adjusted to reflect the 1-for-15 reverse share split which took place on September 11, 2023. |
| 97 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(continued)
| Emerging Markets Fund | Environmental Sustainability Fund | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| Class A: | ||||||||||||||||
| Shares sold | 1,247,586 | 2,359,073 | 4,351 | 4,017 | ||||||||||||
| Shares reinvested | 51,366 | 161,358 | 28 | 572 | ||||||||||||
| Shares redeemed | (1,422,378 | ) | (5,213,246 | ) | (485 | ) | (1,886 | ) | ||||||||
| Net increase (decrease) | (123,426 | ) | (2,692,815 | ) | 3,894 | 2,703 | ||||||||||
| Class C: | ||||||||||||||||
| Shares sold | 49,619 | 99,247 | N/A | N/A | ||||||||||||
| Shares reinvested | 2,093 | 32,364 | N/A | N/A | ||||||||||||
| Shares redeemed | (384,663 | ) | (690,783 | ) | N/A | N/A | ||||||||||
| Net decrease | (332,951 | ) | (559,172 | ) | N/A | N/A | ||||||||||
| Class I: | ||||||||||||||||
| Shares sold | 1,704,044 | 5,063,622 | 2,071 | 3,462 | ||||||||||||
| Shares reinvested | 335,278 | 1,076,940 | 549 | 1,508 | ||||||||||||
| Shares redeemed | (9,079,468 | ) | (26,086,189 | ) | (3,051 | ) | (278 | ) | ||||||||
| Net increase (decrease) | (7,040,146 | ) | (19,945,627 | ) | (431 | ) | 4,692 | |||||||||
| Class Y: | ||||||||||||||||
| Shares sold | 5,428,038 | 18,584,481 | 1,747 | 1,056 | ||||||||||||
| Shares reinvested | 326,234 | 1,015,855 | 321 | 1,255 | ||||||||||||
| Shares redeemed | (13,689,581 | ) | (50,867,718 | ) | (372 | ) | (438 | ) | ||||||||
| Net increase (decrease) | (7,935,309 | ) | (31,267,382 | ) | 1,696 | 1,873 | ||||||||||
| Class Z: | ||||||||||||||||
| Shares sold | 829,341 | 3,810,153 | N/A | N/A | ||||||||||||
| Shares reinvested | 21,278 | 65,175 | N/A | N/A | ||||||||||||
| Shares redeemed | (1,530,356 | ) | (1,755,844 | ) | N/A | N/A | ||||||||||
| Net increase (decrease) | (679,737 | ) | 2,119,484 | N/A | N/A | |||||||||||
| Global Resources Fund | International Investors Gold Fund | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| Class A: | ||||||||||||||||
| Shares sold | 340,011 | 797,985 | 4,981,133 | 5,344,934 | ||||||||||||
| Shares reinvested | 65,139 | 71,837 | 24,877 | — | ||||||||||||
| Shares redeemed | (771,397 | ) | (1,357,182 | ) | (5,631,778 | ) | (7,254,119 | ) | ||||||||
| Net decrease | (366,247 | ) | (487,360 | ) | (625,768 | ) | (1,909,185 | ) | ||||||||
| Class C: | ||||||||||||||||
| Shares sold | 20,116 | 111,858 | 328,193 | 721,667 | ||||||||||||
| Shares reinvested | 4,627 | 7,078 | N/A | N/A | ||||||||||||
| Shares redeemed | (114,671 | ) | (151,880 | ) | (1,019,802 | ) | (1,581,591 | ) | ||||||||
| Net decrease | (89,928 | ) | (32,944 | ) | (691,609 | ) | (859,924 | ) | ||||||||
| Class I: | ||||||||||||||||
| Shares sold | 1,827,924 | 4,414,516 | 1,602,589 | 5,262,895 | ||||||||||||
| Shares reinvested | 134,461 | 187,646 | 46,041 | N/A | ||||||||||||
| Shares redeemed | (4,752,657 | ) | (2,369,457 | ) | (2,156,209 | ) | (6,876,123 | ) | ||||||||
| Net increase (decrease) | (2,790,272 | ) | 2,232,705 | (507,579 | ) | (1,613,228 | ) | |||||||||
| Class Y: | ||||||||||||||||
| Shares sold | 1,225,485 | 3,678,908 | 7,583,925 | 12,831,492 | ||||||||||||
| Shares reinvested | 100,129 | 150,475 | 98,939 | N/A | ||||||||||||
| Shares redeemed | (3,750,701 | ) | (2,420,085 | ) | (6,832,269 | ) | (15,337,967 | ) | ||||||||
| Net increase (decrease) | (2,425,087 | ) | 1,409,298 | 850,595 | (2,506,475 | ) | ||||||||||
| 98 |
| VanEck Morningstar Wide Moat Fund | ||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||
| Class I: | ||||||||
| Shares sold | 118,121 | 102 | ||||||
| Shares reinvested | 10,378 | 12,004 | ||||||
| Shares redeemed | (15,241 | ) | (50,212 | ) | ||||
| Net increase (decrease) | 113,258 | (38,106 | ) | |||||
| Class Z: | ||||||||
| Shares sold | 65,691 | 56,010 | ||||||
| Shares reinvested | 33,935 | 53,377 | ||||||
| Shares redeemed | (44,632 | ) | (32,334 | ) | ||||
| Net increase | 54,994 | 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 December 31, 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 December 31, 2023:
| Fund | Market Value of Securities on Loan | Cash Collateral | Non-Cash Collateral | Total Collateral | ||||||||||||
| CM Commodity Index Fund | $ | 14,392,775 | $ | 14,688,716 | $ | – | $ | 14,688,716 | ||||||||
| Emerging Markets Bond Fund | 97,271 | 103,084 | – | 103,084 | ||||||||||||
| Emerging Markets Fund | 7,011,192 | 749,359 | 6,527,883 | 7,277,242 | ||||||||||||
| Environmental Sustainability Fund | 472,134 | 183,829 | 321,218 | 505,047 | ||||||||||||
| Global Resources Fund | 111,076,632 | 16,692,405 | 99,508,960 | 116,201,365 | ||||||||||||
| International Investors Gold Fund | 5,034,068 | 2,301,930 | 3,118,372 | 5,420,302 | ||||||||||||
| 99 |
VANECK FUNDS
NOTES TO FINANCIAL STATEMENTS
(continued)
The following table presents money market fund investments held as collateral by type of security on loan as of December 31, 2023:
| Gross Amount of Recognized Liabilities for Securities Lending Transactions* in the Statements of Assets and Liabilities | ||||||||||||
| Fund | Corporate Bonds | Equity Securities | Government Obligations | |||||||||
| CM Commodity Index Fund | $ | – | $ | – | $ | 14,688,716 | ||||||
| Emerging Markets Bond Fund | 103,084 | – | – | |||||||||
| Emerging Markets Fund | – | 749,359 | – | |||||||||
| Environmental Sustainability Fund | – | 183,829 | – | |||||||||
| Global Resources Fund | – | 16,692,405 | – | |||||||||
| International Investors Gold Fund | – | 2,301,930 | – | |||||||||
| * | 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 year ending in December 31, 2023, the following Funds borrowed under this Facility:
| Fund | Days Outstanding | Average Daily Loan Balance | Average Interest Rate | |||||||||
| CM Commodity Index Fund | 1 | $4,457,524 | 6.68 | % | ||||||||
| Emerging Markets Bond Fund | 13 | 1,470,364 | 6.45 | |||||||||
| Emerging Markets Fund | 115 | 4,525,857 | 6.40 | |||||||||
| Global Resources Fund | 5 | 798,373 | 6.48 | |||||||||
| International Investors Gold Fund | 1 | 167,444 | 6.68 | |||||||||
| VanEck Morningstar Wide Moat Fund | 10 | 234,396 | 6.48 | |||||||||
Outstanding loan balances as of December 31, 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.
Note 12—Share Split—Each class of the CM Commodity Index Fund executed a 1-for-15 reverse share split for shareholders of record before the open of markets on September 11, 2023. The impact of the share split has been retroactively applied to each of the prior years presented in the financial highlights.
Note 13—New Regulatory Requirements— On October 26, 2022, the Securities and Exchange Commission (SEC) adopted rule and form amendments that require mutual funds and exchange-traded funds (ETFs) that are registered on Form N-1A to prepare and transmit tailored unaudited annual and semi-annual shareholder reports (TSRs), that highlight key information to investors, within 60 days of period-end. The new TSRs will be prepared separately for each fund (or for each share class if a fund has multiple share classes).
| 100 |
In connection with these amendments, certain information that was previously disclosed in fund shareholder reports will instead be made available online, delivered free of charge upon request, and filed on a semi-annual basis on Form N-CSR.
The SEC also amended Rule 30e-3 under the Investment Company Act, to require mutual funds and ETFs to provide TSRs directly to investors by mail (unless an investor elects electronic delivery).
These rules are effective January 24, 2023, and the compliance date is July 24, 2024.
| 101 |
VANECK ETF TRUST
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of VanEck Funds and Shareholders of each of the funds listed in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, (the consolidated statements of assets and liabilities, including the consolidated schedules of investments, for CM Commodity Index Fund and International Investors Gold Fund) of each of the funds listed in the table below (seven of the funds constituting VanEck Funds, hereafter collectively referred to as the “Funds”) as of December 31, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds listed in the table below as of December 31, 2023, the results of each of their operations, the changes in each of their net assets and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.
| Funds | ||
| CM Commodity Index Fund (2) | Global Resources Fund (1) | |
| Emerging Markets Bond Fund (1) | International Investors Gold Fund (2) | |
| Emerging Markets Fund (1) | VanEck Morningstar Wide Moat Fund (1) | |
| Environmental Sustainability Fund (1) |
(1) Statement of operations for the year ended December 31, 2023 and statement of changes in net assets and financial highlights for the years ended December 31, 2023 and 2022.
(2) Consolidated statement of operations for the year ended December 31, 2023 and consolidated statement of changes in net assets and consolidated financial highlights for the years ended December 31, 2023 and 2022.
The financial statements of the Funds as of and for the year or period ended December 31, 2021 and the financial highlights for each of the periods ended on or prior to December 31, 2021 (not presented herein, other than the financial highlights) were audited by other auditors whose reports dated February 22, 2022, except for the 1-for-15 reverse share split described in Note 12, as to which the date is February 27, 2024, expressed an unqualified opinion on those financial statements and financial highlights.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with
| 102 |
the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
New York, New York
February 27, 2024
We have served as the auditor of one or more investment companies in the VanEck Funds complex since 2022.
| 103 |
VANECK ETF TRUST
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of CM Commodity Index Fund and the Board of Trustees of VanEck Funds
Opinion on the Financial Statements
We have audited the accompanying financial highlights of CM Commodity Index Fund (the “Fund”) (one of the series constituting VanEck Funds (the “Trust”)) for each of the three years in the period ended December 31, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial highlights of the Fund for each of the three years in the period ended December 31, 2021, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2021, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We served as the auditor of one or more of the VanEck investment companies from 1999 to 2022.
New York, New York
February 28, 2022
except for the 1-for-15 reverse share split described in Note 12, as to which the date is
February 27, 2024
| 104 |
VANECK FUNDS
(unaudited)
The following information is provided with respect to the distributions paid during the taxable year ended December 31, 2023. Please consult your tax advisor for proper treatment of this information.
| Fund | Ordinary Income Amount Paid Per Share | Return of Capital Per Share (a) | Qualified Dividend Income for Individuals (b) | Dividends Qualifying for the Dividend Received Deduction for Corporations (b) | ||||||||||||
| CM Commodity Index Fund | ||||||||||||||||
| Class A | $ | 2.3213 | $ | - | - | % | - | % | ||||||||
| Class I | 2.5547 | - | - | - | ||||||||||||
| Class Y | 2.4938 | - | - | - | ||||||||||||
| Emerging Markets Bond Fund | ||||||||||||||||
| Class A | 0.2517 | 0.1229 | - | - | ||||||||||||
| Class I | 0.2572 | 0.1256 | - | - | ||||||||||||
| Class Y | 0.2528 | 0.1235 | - | - | ||||||||||||
| Emerging Markets Fund | ||||||||||||||||
| Class A | 0.2056 | - | 57.88 | 0.32 | ||||||||||||
| Class C | 0.0837 | - | 57.88 | 0.32 | ||||||||||||
| Class I | 0.2849 | - | 57.88 | 0.32 | ||||||||||||
| Class Y | 0.2669 | - | 57.88 | 0.32 | ||||||||||||
| Class Z | 0.3000 | - | 57.88 | 0.32 | ||||||||||||
| Environmental Sustainability Fund | ||||||||||||||||
| Class A | 0.0100 | - | 100.00 | 60.05 | ||||||||||||
| Class I | 0.0994 | - | 100.00 | 60.05 | ||||||||||||
| Class Y | 0.0645 | - | 100.00 | 60.05 | ||||||||||||
| Global Resources Fund | ||||||||||||||||
| Class A | 0.9010 | - | 100.00 | 40.44 | ||||||||||||
| Class C | 0.5960 | - | 100.00 | 40.44 | ||||||||||||
| Class I | 1.0889 | - | 100.00 | 40.44 | ||||||||||||
| Class Y | 0.9953 | - | 100.00 | 40.44 | ||||||||||||
| International Investors Gold Fund | ||||||||||||||||
| Class A | 0.0261 | - | 41.31 | 6.13 | ||||||||||||
| Class I | 0.0673 | - | 41.31 | 6.13 | ||||||||||||
| Class Y | 0.0565 | - | 41.31 | 6.13 | ||||||||||||
| Morningstar Wide Moat Fund | ||||||||||||||||
| Class I | 1.8829 | - | 19.81 | 18.48 | ||||||||||||
| Class Z | 1.9629 | - | 19.81 | 18.48 | ||||||||||||
(a) A return of capital is not considered taxable income to shareholders. Shareholders who received these distributions should not include these amounts in taxable income and should treat them as a reduction of the cost basis of the applicable shares upon which these distributions were paid. In order to compute the required adjustment to cost basis, a shareholder should use the more detailed information provided on Form 8937 - Organizational Actions Affecting Basis provided on the funds’ website at www.vaneck.com.
(b) Expressed as a percentage of the cash distribution grossed up for foreign taxes.
Additionally, Morningstar Wide Moat Fund paid short-term capital gains of $1.635200 per share that represents Qualified Short-Term Capital Gains (“QSTG”) which may be exempt from United States withholding tax when distributed to non-U.S. shareholders with proper documentation.
| 105 |
VANECK FUNDS
TAX INFORMATION
(unaudited) (continued)
| Fund | Foreign Source Income (a) | Foreign Taxes Paid Per Share (b) | Federal Obligation Interest (c) | |||||||||
| CM Commodity Index Fund | ||||||||||||
| Class A | - | % | $ | - | 95.09 | % | ||||||
| Class I | - | - | 95.09 | |||||||||
| Class Y | - | - | 95.09 | |||||||||
| Emerging Markets Bond Fund | ||||||||||||
| Class A | 100.00 | 0.0082 | - | |||||||||
| Class I | 100.00 | 0.0082 | - | |||||||||
| Class Y | 100.00 | 0.0082 | - | |||||||||
| Emerging Markets Fund | ||||||||||||
| Class A | 65.64 | 0.0484 | 0.13 | |||||||||
| Class C | 65.64 | 0.0484 | 0.13 | |||||||||
| Class I | 65.64 | 0.0484 | 0.13 | |||||||||
| Class Y | 65.64 | 0.0484 | 0.13 | |||||||||
| Class Z | 65.64 | 0.0484 | 0.13 | |||||||||
| Environmental Sustainability Fund | ||||||||||||
| Class A | - | - | 4.23 | |||||||||
| Class I | - | - | 4.23 | |||||||||
| Class Y | - | - | 4.23 | |||||||||
| Global Resources Fund | ||||||||||||
| Class A | - | - | 1.22 | |||||||||
| Class C | - | - | 1.22 | |||||||||
| Class I | - | - | 1.22 | |||||||||
| Class Y | - | - | 1.22 | |||||||||
| International Investors Gold Fund | ||||||||||||
| Class A | 27.85 | 0.0159 | 0.43 | |||||||||
| Class I | 27.85 | 0.0159 | 0.43 | |||||||||
| Class Y | 27.85 | 0.0159 | 0.43 | |||||||||
(a) Expressed as a percentage of the cash distribution grossed up for foreign taxes.
(b) The foreign taxes paid represent taxes incurred by the Fund on income received by the Fund from foreign sources. Foreign taxes paid may be included in taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments.
(c) The interest from Federal obligations represents income derived from assets backed by the full faith and credit of the U.S. Government. State law varies as to what percentage of this dividend is exempt from state income tax.
| 106 |
VANECK FUNDS
BOARD OF TRUSTEES AND OFFICERS
December 31, 2023 (unaudited)
| Trustee’s
Name, Address1 and Year of Birth |
Position(s) Held with the Trust |
Term of Office2 and Length of Time Served |
Principal
Occupation(s) During the Past Five Years |
Number
of Portfolios in Fund Complex3 Overseen by Trustee |
Other
Directorships Held Outside the Fund Complex3 During the Past Five Years | |||||
| Independent Trustees |
||||||||||
| Jayesh Bhansali 1964 (A)(G)(I) |
Trustee | Since 2022 | Chief Investment Officer, IRIQIV LLC (a multi-family office). Formerly, Managing Director and Lead Portfolio Manager, Nuveen, a TIAA company. | 11 | Trustee of Judge Baker Children’s Center; Director of Under One Roof. | |||||
| Jon Lukomnik 1956 (A)(G)(I) |
Trustee Chairperson of the Audit Committee | Since 2006 Since 2021 |
Managing Partner, Sinclair Capital LLC (consulting firm). Adjunct Professor, School of International and Public Affairs, Columbia University. Formerly, Pembroke Visiting Professor of International Finance, Judge Business School, Cambridge. | 11 | Member of the Deloitte Audit Quality Advisory Committee; Director, The Shareholder Commons; Director of VanEck ICAV (an Irish UCITS); VanEck Vectors UCITS ETF plc (an Irish UCITS). Formerly, Director of VanEck (a Luxembourg UCITS); Member of the Standards and Emerging Issues Advisory Group to the Public Company Accounting Oversight Board. | |||||
| Jane DiRenzo Pigott 1957(A)(G)(I) |
Trustee Chairperson of the Board | Since 2007 Since 2020 |
Managing Director, R3 Group LLC (consulting firm). | 11 | Board member for Gratitude Railroad LLC and Impact Engine Management, PBC; Trustee of Northwestern University, Lyric Opera of Chicago and the Chicago Symphony Orchestra. Formerly, Director and Chair of Audit Committee of 3E Company (services relating to hazardous material safety); Director of MetLife Investment Funds, Inc. | |||||
| R. Alastair Short 1953 (A)(G)(I) |
Trustee | Since 2004 | President, Apex Capital Corporation (personal investment vehicle). | 83 | Chairman and Independent Director, EULAV Asset Management; Lead Independent Director, Total Fund Solution; Independent Director, Contingency Capital, LLC; Trustee, Kenyon Review; Trustee, Children’s Village. Formerly, Independent Director, Tremont offshore funds. | |||||
| Richard D. Stamberger 1959 (A)(G)(I) |
Trustee Chairperson of the Governance Committee | Since 1995 Since 2022 |
Senior Vice President, B2B, Future Plc (a global media company), July 2020 to August 2022; President, CEO and co-founder, SmartBrief, Inc., 1999 to 2020. | 83 | Director, Food and Friends, Inc.; Board Member, The Arc Foundation of the US; Chairman, Lifetime Care Services, LLC. |
| 107 |
VANECK FUNDS
BOARD OF TRUSTEES AND OFFICERS
(unaudited) (continued)
| Interested Trustee | ||||||||||
| Jan F. van Eck(4) 1963 (I) |
Trustee Chairperson of the Investment Oversight Committee Chief Executive Officer and President |
Since 2019
Since 2010 |
Director, President and Chief Executive Officer of Van Eck Associates Corporation (VEAC), Van Eck Absolute Return Advisers Corporation (VEARA) and Van Eck Securities Corporation (VESC); Officer and/or Director of other companies affiliated with VEAC and/or the Trust. | 83 | Director, National Committee on US-China Relations. |
(1) The address for each Trustee and officer is 666 Third Avenue, 9th Floor, New York, New York 10017.
(2) Trustee serves until resignation, death, retirement or removal.
(3) The Fund Complex consists of VanEck Funds, VanEck VIP Trust and VanEck ETF Trust.
(4) “Interested person” of the Trust within the meaning of the Investment Company Act of 1940, as amended. Mr. van Eck is an officer of VEAC, VEARA and VESC. In addition, Mr. van Eck and members of his family own 100% of the voting stock of VEAC, which in turns owns 100% of the voting stock of each of VEARA and VESC.
(A) Member of the Audit Committee.
(G) Member of the Governance Committee.
(I) Member of the Investment Oversight Committee.
| Officer’s
Name, Address1 and Year of Birth |
Position(s) Held with the Trust |
Term
of Office2 And Length of Time Served |
Principal Occupation(s) During Past Five Years | |||
| Officer Information | ||||||
| Matthew A. Babinsky, 1983 | Vice President and Assistant Secretary | Vice President (Since 2023); Assistant Secretary (Since 2016) | Vice President, Associate General Counsel and Assistant Secretary of VEAC, VEARA and VESC; Officer of other investment companies advised by VEAC and VEARA. Formerly, Assistant Vice President of VEAC, VEARA and VESC. | |||
| Russell G. Brennan, 1964 | Assistant Vice President and Assistant Treasurer | Since 2008 | Assistant Vice President of VEAC; Officer of other investment companies advised by VEAC and VEARA. | |||
| Charles T. Cameron, 1960 | Vice President | Since 1996 | Portfolio Manager of VEAC; Officer and/or Portfolio Manager of other investment companies advised by VEAC and VEARA. Formerly, Director of Trading of VEAC. | |||
| John J. Crimmins, 1957 | Vice President, Treasurer, Chief Financial Officer and Principal Accounting Officer | Vice President, Chief Financial Officer and Principal Accounting Officer (Since 2012); Treasurer (Since 2009) | Vice President of VEAC and VEARA; Officer of other investment companies advised by VEAC and VEARA. Formerly, Vice President of VESC. | |||
| Susan Curry, 1966 | Assistant Vice President | Since 2022 | Assistant Vice President of VEAC, VEARA and VESC; Formerly, Managing Director, Legg Mason, Inc. | |||
| F. Michael Gozzillo, 1965 | Chief Compliance Officer | Since 2018 | Vice President and Chief Compliance Officer of VEAC and VEARA; Chief Compliance Officer of VESC; Officer of other investment companies advised by VEAC and VEARA. Formerly, Chief Compliance Officer of City National Rochdale, LLC and City National Rochdale Funds. | |||
| Laura Hamilton, 1977 | Vice President | Since 2019 | Assistant Vice President of VEAC and VESC; Officer of other investment companies advised by VEAC and VEARA. Formerly, Operations Manager of Royce & Associates. | |||
| Laura I. Martínez, 1980 | Vice President and Assistant Secretary | Vice President (Since 2016); Assistant Secretary (Since 2008) |
Vice President, Associate General Counsel and Assistant Secretary of VEAC, VEARA and VESC; Officer of other investment companies advised by VEAC and VEARA. |
| 108 |
| Lisa A. Moss, 1965 | Assistant Vice President and Assistant Secretary | Since 2022 | Assistant Vice President of VEAC, VEARA and VESC; Formerly, Senior Counsel, Perkins Coie LLP. | |||
| James Parker, 1969 | Assistant Treasurer | Since 2014 | Assistant Vice President of VEAC and VEARA; Manager, Portfolio Administration of VEAC and VEARA; Officer of other investment companies advised by VEAC and VEARA. | |||
| Jonathan R. Simon, 1974 | Senior Vice President, Secretary and Chief Legal Officer | Senior Vice President (Since 2016); Secretary and Chief Legal Officer (Since 2014) |
Senior Vice President, General Counsel and Secretary of VEAC, VEARA and VESC; Officer and/or Director of other companies affiliated with VEAC and/or the Trust. | |||
| Andrew Tilzer, 1972 | Assistant Vice President | Since 2021 | Vice President of VEAC and VEARA; Vice President of Portfolio Administration of VEAC. Formerly, Assistant Vice President, Portfolio Operations of VEAC. |
(1) The address for each Officer is 666 Third Avenue, 9th Floor, New York, NY 10017.
(2) Officers are elected yearly by the Board.
| 109 |
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the Funds’ 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 Funds 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 | VEFUNDAR |
| Item 2. | CODE OF ETHICS. |
| (a) | The Registrant has adopted a code of ethics (the “Code of Ethics”) that applies to the principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. |
| (b) | The Registrant’s code of ethics is reasonably described in this Form N-CSR. |
| (c) | The Registrant has not amended its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto. |
| (d) | The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto. |
| (e) | Not applicable. |
| (f) | The Registrant’s Code of Ethics is attached as an Exhibit hereto. |
| Item 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
The Registrant’s Board of Trustees has determined that Jane Pigott and Jon Lukomnik, members of the Audit Committee, are “audit committee financial experts” and “independent” as such terms are defined in the instructions to Form N-CSR Item 3(a)(2).
| Item 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
The principal accountant fees disclosed in Item 4(a), 4(b), 4(c), 4(d) and 4(g) are for the Funds of the Registrant for which the fiscal year end is December 31.
| (a) | Audit Fees. The aggregate Audit Fees of PricewaterhouseCoopers LLP for professional services billed for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for the fiscal years ended December 31, 2023 and December 31, 2022, were $190,350 and $209,880, respectively. |
| (b) | Audit-Related Fees. Not applicable. |
| (c) | Tax Fees. The aggregate Tax Fees of PricewaterhouseCoopers LLP for professional services billed for the review of Federal, state and excise tax returns and other tax compliance consultations for the fiscal years ended December 31, 2023 and December 31, 2022, were $87,050 and $90,600, respectively. |
| (d) | All Other Fees |
| None. | |
| (e) | The Audit Committee will pre-approve all audit and non-audit services, to be provided to the Funds, by the independent accountants as required by Section 10A of the Securities Exchange Act of 1934. The Audit Committee has authorized the Chairman of the Audit Committee to approve, between meeting dates, appropriate non-audit services. |
| The Audit Committee after considering all factors, including a review of independence issues, will recommend to the Board of Trustees the independent auditors to be selected to audit the financial statements of the Funds. |
| (f) | Not applicable. |
| (g) | Non-audit fees. The aggregate non-audit fees of PricewaterhouseCoopers LLP for professional services rendered and billed to the registrant’s investment adviser, and entities controlled by, or under common control with the adviser that provide ongoing services to the registrant for the fiscal years ended December 31, 2023 and December 31, 2022, were $47,365 and $0 respectively. |
| (h) | The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to the Registrant's investment adviser, and any entities controlled by, or under common control with the investment adviser that provide ongoing services to the Registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. |
| Item 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
The Registrant’s Board has an Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)) consisting of five Independent Trustees. Jayesh Bhansali, Jon Lukomnik, Jane Pigott, R. Alastair Short and Richard D. Stamberger currently serve as members of the Audit Committee. Mr. Lukomnik is the Chairman of the Audit Committee.
| 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. |
| None. |
| 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(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. |
| (b) | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is furnished as Exhibit99.906CERT. |
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 and CFO |
Date March 7, 2024
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, CEO |
Date March 7, 2024
| By (Signature and Title) | /s/ John J. Crimmins, Treasurer and CFO |
Date March 7, 2024