Market Vectors China ETF (NYSE Arca: PEK) now has the ability to enter into sub-advisory agreements with the approval of the Fund’s Board of Trustees, it was announced today.
At a Special Meeting of the shareholders of the Fund on July 31, 2012, the shareholders approved reliance upon an order from the Securities and Exchange Commission exempting the Market Vectors ETF Trust and Van Eck Associates Corporation, the Fund’s Adviser, (the “Adviser”) from certain provisions of the Investment Company Act of 1940, as amended and rules thereunder that would permit the Adviser to enter into new sub-advisory agreements with unaffiliated sub-advisers with the approval of the Board of Trustees, but without the approval of shareholders.
“We’re very pleased that PEK now has the option of entering into sub-advisory arrangements with unaffiliated managers,” said Adam Phillips, Chief Operating Officer at Market Vectors. “This option provides the Fund another investment tool to replicate the returns of the CSI 300 Index.”
PEK seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the CSI 300 Index (CSIR0300), a diversified index that consists of 300 A-Share stocks listed on the Shenzen or Shanghai Stock Exchange. PEK does not invest directly in A-Shares; rather it invests in swaps and other types of derivative instruments that have economic characteristics substantially identical to those of China A-Share stocks.
PEK was launched on October 13, 2010, and has a gross and net expense ratio of 1.71 and 0.72 percent respectively.*
About Market Vectors
Market Vectors exchange-traded products have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets. The Market Vectors family currently totals $23.6 billion in assets under management, making it the fifth largest ETF family in the U.S. and the eighth largest worldwide as of June 30, 2012.