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||(ASX:FIN)|
|Aii S&P/ASX 200 Financials x-A-REIT||(ASX:FIX)|
|Aii S&P/ASX 200 Resources||(ASX:RSR)|
|Aii S&P/ASX 200 Industrials||(ASX:IDD)|
|Aii S&P/ASX 200 Energy||(ASX:ENY)|
|Aii S&P/ASX 300 Metals and Mining||(ASX:MAM)|
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