Market Vectors, Global X plan new Chinese renminbi-denominated funds

By Toni Weeks

San Luis Obispo, Calif., July 8 – Two new China-focused funds have announced in N-1A filings with the Securities and Exchange Commission their plans to launch.

Market Vectors ETF Trust’s Market Vectors China Bond ETF and Global X Funds’ Global X GF China Bond ETF have both been registered via N-1A forms with the Securities and Exchange Commission.

The Market Vectors exchange-traded fund will seek to replicate as closely as possible, before fees and expenses, the price and yield performance of the ChinaBond index. It will normally invest at least 80% of its total assets in securities that comprise the index, which is comprised of fixed-rate, renminbi-denominated bonds issued in the People’s Republic of China by Chinese corporate, governmental, quasi-governmental, supranational or other issuers.

The portfolio management team has not yet been determined.

The fund will trade on the NYSE Arca. The ticker symbol has not yet been set.

The filing said there will be no shareholder fees. Management fees and total annual fund operating expenses have not yet been set.

New York-based Van Eck Associates Corp. will be the investment adviser.

Global X’s fund will seek to provide investment results that correspond generally to the price and yield performance, before fees and expense, of the China Onshore Bond index. It will normally invest at least 80% of its total assets in securities that comprise its benchmark index, which is comprised of Chinese renminbi-denominated bonds issued or distributed within mainland People’s Republic of China.

Bruno del Ama, Jose C. Gonzalez, Luis Berruga, Chang Kim and Wang Yuke have been names as the portfolio managers.

The ticker symbol and stock exchange have not yet been selected.

Management fees and total annual fund operating expenses have not yet been set. There was no mention of shareholder fees in the filing.

New York-based Global X Management Co. will serve as the fund’s investment adviser, with GF International Investment Management Ltd. as subadviser.

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