Notes To Financial Statements
Note 3–Investment Management and Other Agreements– Van Eck Associates Corporation (the “Adviser”) is the
investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly
based on an annual rate of 0.50% of each Fund’s average daily net assets. The Adviser has agreed, at least until May
1, 2008, to voluntarily waive or limit its fees and to assume as its own expense certain expenses otherwise payable
by the Funds so that each Fund’s total annual operating expenses do not exceed the expense caps listed in the table
The expense caps and the amounts assumed by the Adviser for the year ended December 31, 2007, are as follows:
In addition, Van Eck Securities Corporation, an affiliate of the Adviser, acts as the Funds’ Distributor. Certain officers
and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.
Note 4–Investments – For the year ended December 31, 2007, the cost of purchases and proceeds from sales of
investments other than U.S. government obligations and short-term obligations (excluding capital share transactions
described in Note 6) were as follows:
other causes. Options purchased are recorded as an asset and written options are recorded as liabilities to the
extent of premiums paid or received. Gains or losses are realized when the option transaction expires or closes.
When an option is exercised, the cost of a security for a purchased put or call option is adjusted by the amount
of the premium received or paid. There were no options outstanding at December 31, 2007.
Forward Foreign Currency Contracts –Each Fund may enter into forward foreign currency contracts as
hedges against either specific transactions or portfolio positions. All commitments are “marked-to-market” daily
at the closing prices of such currencies and any resulting unrealized gains or losses are recorded currently. A
Fund realizes gains or losses at the time the forwar