Market Vectors China ETF (PEK) now has the ability to enter into sub-advisory agreements with the approval of the fund’s board of trustees.
At a special meeting of the shareholders of the fund on 31 July 2012, the shareholders approved reliance upon an order from the Securities and Exchange Commission exempting the Market Vectors ETF Trust and Van Eck Associates, the fund’s adviser, from certain provisions of the Investment Company Act of 1940, which 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,” says 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, 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 13 October 2010 and has a gross and net expense ratio of 1.71 and 0.72 per cent respectively.