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BNY Mellon to provide ETF services for six Market Vectors funds

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BNY Mellon has been selected to provide exchange-traded fund (ETF) services, custody, fund accounting and securities lending for the six new Market Vector Industry ETFs which launched on 20 December, 2011.

The six new ETFs were offered to existing investors in the corresponding six Merrill Lynch-sponsored HOLDRS through separate exchange offers. All six exchange offers were successful, and the HOLDRS were terminated. This exchange offered participating investors the opportunity for uninterrupted exposure to the target industries: oil services (OIH), semiconductors (SMH), pharmaceuticals (PPH), biotech (BBH), retail (RTH) and regional banks (RKH). The new ETFs, distributed by Van Eck Global, retained the corresponding HOLDRS’ ticker symbols.

“The ETF structure provides a more dynamic, diversified investment vehicle as it better reflects changes in the composition of industry sectors that inevitably occur over time,” says John Crimmins, vice president, portfolio administration, at Van Eck. “This was a unique transaction, and we are pleased that BNY Mellon had the expertise and depth of service required to assist investors who transitioned from the HOLDRS to the ETFs.”

BNY Mellon’s Depositary Receipts group has acted as the trustee for the HOLDRS baskets since the inception of the product in the late 1990s. BNY Mellon Shareowner Services was the exchange agent for the six exchange offers.

“We remain committed to developing the technology and client services that have enabled BNY Mellon to deliver the type of innovation demanded by the constantly evolving ETF industry,” says Joseph Keenan (pictured), managing director and global head of exchange-traded fund services at BNY Mellon Asset Servicing. “This exchange offer, another first for the ETF industry, illustrates the continuing changes in this investment segment.”

 

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