Tuesday, February 01, 2011
Van Eck Suspends Creation Orders of its Egypt ETF
News summary by MFWire's editors
Since the Egyptian stock exchange is shut down during the protests, Van Eck
] isn't creating new shares of
its Market Vectors Egypt Index ETF
, yet that isn't stopping investors from
clamoring for the fund. InvestmentNews
' Jessica Toonkel reports
even though the ETF's returns 13.47 percent between January 26 and 28, its assets had
climbed from $11.65 million on the 28 (Friday) to $24 million yesterday.
research director Dave Nadig
told INews that the ETF is
investors' only access to the Egyptian market right now, which could explain the jump
Company Press Release
NEW YORK, NY (January 31, 2011) – Due to events in Egypt which have forced its stock
exchange to close for an undetermined period, New York-based asset manager Van Eck
Global will exercise its right to suspend creation orders of Market Vectors Egypt
Index ETF (Ticker: EGPT). This follows the firm’s normal policy of suspending
creation orders when the underlying market is closed for an extended period thereby
helping to prevent the costs of creation activity to be borne by existing
Redemption orders for the Market Vectors Egypt Index ETF will continue to be accepted
as described in the prospectus.
The Fund expects to resume normal operations once the Egyptian Stock Exchange
More About Van Eck Global
Founded in 1955, Van Eck Associates Corporation was among the first U.S. money
managers helping investors achieve greater diversification through global investing.
Today the firm continues this 50+ year tradition by offering global investment
choices in hard assets, emerging markets, precious metals including gold, and other
specialized asset classes.
Market Vectors exchange-traded products have been offered by Van Eck Global since
2006 when the firm launched the nation’s first gold mining ETF. It also offers mutual
funds, insurance trust funds, separate accounts and alternative investments. Designed
for investors seeking innovative choices for portfolio diversification, Van Eck
Global’s investment products are often categorized in asset classes having returns
with lower correlations than to those of more traditional U.S. equity and fixed
The Market Vectors Egypt Index ETF is subject to a high degree of risk, including
those associated with less reliable financial information, higher costs, taxation,
decreased liquidity, less stringent reporting, and foreign currency risks. Special
risks particular to Egypt investments include expropriation, political instability,
economic impacts of armed conflict, civil war and severe social instability, less
developed capital markets, lower market capitalization, lower trading volume,
illiquidity, inflation, greater price fluctuations, uncertainty regarding the
existence of trading markets, politically controlled access to trading markets,
unsettled securities laws, and trade barriers. Investors should be willing to accept
a high degree of volatility and the potential of significant loss. The Fund may loan
its securities, which may subject it to additional credit and counterparty risk.
The Market Vectors Egypt Index (the “Index”) is the exclusive property of 4asset-
management GmbH, which has contracted with Structured Solutions AG to maintain and
calculate the Index. Structured Solutions AG uses its best efforts to ensure that the
Index is calculated correctly. Irrespective of its obligations towards 4asset-
management GmbH, Structured Solutions AG has no obligation to point out errors in the
Index to third parties. Market Vectors Egypt Index ETF is not sponsored, endorsed,
sold or promoted by 4asset-management GmbH and 4asset-management GmbH makes no
representation regarding the advisability of investing in the Fund.
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 risk, including possible loss of principal. Investors may call
1.888.MKT.VCTR or visit vaneck.com/egpt for a free prospectus. They should consider
the investment objective, risks, and charges and expenses of Market Vectors Egypt
Index ETF carefully before investing. The prospectus contains this and other
information. Please read the prospectus carefully before investing.
Van Eck Securities Corporation, Distributor, 335 Madison Avenue, New York, NY 10017
Neil Anderson, Managing Editor
Stay ahead of the news ... Sign up for our email alerts now
Do You Recommend This Story?