Market Vectors Announces Investment Agreement with Australian Idx Investments (Aii), Plans Expansion of ETF Distribution in A...
June 19 2012 - 9:05AM
Business Wire
Market Vectors ETFs today announced that its investment adviser,
Van Eck Associates Corporation, had entered into an Investment
Agreement with Australian Index Investments (Aii) on June 7, 2012.
The resulting company is a majority-owned subsidiary of Van Eck
Associates Corporation and will be renamed Market Vectors
Australia Pty Ltd.
Market Vectors Australia will market and distribute
exchange-traded funds (ETFs), including six existing Aii ETFs, to
the Australian marketplace. The company currently oversees
approximately AUD $30 million in investor assets. The current Aii
staff will be retained and led by CEO Annmaree Varelas.
“We are pleased to have entered into this agreement,” said Ms.
Varelas. “We are in a unique position to grow our ETF business by
partnering with the very successful U.S-based Market Vectors ETFs.
We hope to increase and improve investment choices available to
Australian investors by building a full product line over time.”
Ms. Varelas has served as CEO at Aii for two years. She also has
extensive experience as Manager of Funds, Warrants & Structured
Products at the Australian Securities Exchange and was instrumental
in establishing the AQUA Market for ETFs in Australia.
Australia’s $1.8 trillion managed fund market is the
fourth-largest in the world and is largely dominated by the
superannuation and rollover segments (which gained $14 billion in
net inflows during 2011)1. The Australian ETF market remains in its
infancy with indications of growth to come. There are currently
approximately 70 funds and $5 billion in assets under
management2.
“The launch of Market Vectors Australia is an important
milestone,” said Lars Hamich, Managing Director of International
Business Development at Market Vectors. “We look forward to
expanding our global presence in a marketplace ripe with growth
opportunity.” Market Vectors is a key player in the
well-established U.S. ETF market. It currently totals $25.1 billion
in assets under management, ranking as fifth largest ETP provider
in the United States and eighth largest worldwide as of March 31,
2012. Headquartered in New York City, the firm has a presence in
other cities worldwide, including Shanghai (China), Frankfurt
(Germany), Madrid (Spain) and Pfaeffikon (Switzerland).
About Market Vectors ETFs
The Market Vectors family of exchange-traded funds has been
offered in the U.S. since 2006 and currently comprises 49 ETFs
spanning international, hard assets, industry-specific,
income-oriented, and broad-based asset classes. Market Vectors ETFs
are sponsored by Van Eck Global. Founded in 1955, Van Eck Global
was among the first U.S. money managers helping investors achieve
greater diversification through global investing. Today, the firm
continues this tradition by offering innovative, actively managed
investment choices in hard assets, emerging markets, precious
metals including gold, and other alternative asset classes.
Including its ETF business, the firm manages an aggregate $34.8
billion in investor assets as of March 31, 2012.
About Australian Index Investments (Aii)
Australian Index Investments is a provider of Australian
sector-specific exchange-traded funds (ETFs) listed on the
Australian Securities Exchange (ASX). Australian Index Investments’
existing offerings include six passively managed ETFs that track
the performance of S&P/ASX indices:
Existing Aii ETF ASX Code Aii S&P/ASX 200
Financials FIN Aii S&P/ASX 200 Financials x-A-REIT FIX Aii
S&P/ASX 200 Resources RSR Aii S&P/ASX 200 Industrials IDD
Aii S&P/ASX 200 Energy ENY Aii S&P/ASX 300 Metals and
Mining MAM
Additional Information
Sydney Capital Partners and Right Wall Capital served as
advisors to Aii and Van Eck Associates Corporation,
respectively.
Sources: 1Strategic Insights, May 2012; 2ETF Trends, June 6,
2012.
The Aii Sector ETFs are issued by Valuestream Investment
Management (ACN 099 107 034) (AFSL No 246621) (‘VIML’) under a
Product Disclosure Statement (‘PDS’) for the Aii Sector ETFs.
Copies of the PDS are available on the Aii website
www.australianindexinvestments.com.au or by contacting Aii on 1800
256 267. The PDS contains information on how to trade the Aii
Sector ETFs. Please read the entire PDS before making any
investment decision.
This information has been prepared for promotional purposes only
and is not intended to amount to advice or a recommendation to
invest in the Aii Sector ETFs and does not constitute an offer or
an invitation to purchase or subscribe for the Aii Sector ETFs. It
does not take into account your investment objectives, financial
situation or particular needs. You should seek professional advice
on these matters before making an investment decision.
“S&P” is a trademark of Standard & Poor’s Financial
Services LLC and “ASX” is a trademark of ASX Operations Pty Ltd.
These trademarks have been licensed for use by Australian Index
Investments Pty Ltd. The Aii S&P/ASX 200 Financials ETF, the
Aii S&P/ASX 200 Financials x-A-REIT ETF, the Aii S&P/ASX
200 Industrials ETF, the Aii S&P/ASX 200 Resources ETF, the Aii
S&P/ASX 200 Energy ETF and the Aii S&P/ASX 300 Metals and
Mining ETF are not sponsored, endorsed, sold or promoted by
Standard & Poor’s or ASX Operations Pty Ltd. Standard &
Poor’s and ASX Operations Pty Ltd make no recommendation as to the
advisability of investing in the Aii S&P/ASX 200 Financials
ETF, the Aii S&P/ASX 200 Financials x-A-REIT ETF, the Aii
S&P/ASX 200 Industrials ETF, the Aii S&P/ASX 200 Resources
ETF, the Aii S&P/ASX 200 Energy ETF and the Aii
S&P/ASX 300 Metals and Mining ETF. Various sector ETFs are
referred to in this press release. Such references should not be
construed as an express or implied endorsement of the sector ETFs
by Aii or VIML. Returns on the Aii Sector ETFs are not
guaranteed.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded
fund (ETF) is determined at the close of each business day, and
represents the dollar value of one share of the fund; it is
calculated by taking the total assets of the fund, subtracting
total liabilities, and dividing by the total number of shares
outstanding. The NAV is not necessarily the same as the ETF’s
intraday trading value. Market Vectors ETF investors should not
expect to buy or sell shares at NAV.
Fund shares are not individually redeemable and will be issued
and redeemed at their NAV only through certain authorized
broker-dealers in large, specified blocks of shares called
“creation units” and otherwise can be bought and sold only through
exchange trading. Creation units are issued and redeemed
principally in kind. Shares may trade at a premium or discount to
their NAV in the secondary market.
Investing involves substantial risk and high volatility,
including possible loss of principal. An investor should consider
the investment objective, risks, charges and expenses of the Fund
carefully before investing. To obtain a prospectus
and summary prospectus, which contains this and
other information, call 888.MKT.VCTR or visit
marketvectorsetfs.com. Please read the prospectus
and summary prospectus carefully before
investing.
Van Eck Securities Corporation, Distributor,
335 Madison Avenue, New York, NY 10017
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