Market Vectors ETFs, the fifth largest provider of exchange-traded products (ETPs) in the US and the eighth largest provider globally, has signalled its global ambitions by partnering with Australian Index Investments (Aii) to launch Market Vectors Australia.
Market Vectors looks to Australia and Mexico for growth.
The firm will market and distribute ETFs, including six existing Aii ETFs, to the Australian marketplace. The current Aii staff will be retained and led by CEO Annmaree Varelas.
“We are pleased to have entered into this agreement,” said Ms Varelas. “We are in a unique position to grow our ETF business by partnering with the very successful US-based Market Vectors ETFs. We hope to increase and improve investment choices available to Australian investors by building a full product line over time.”
Australia’s $1.8 trillion managed fund market is the fourth-largest in the world and is largely dominated by the superannuation and rollover segments (which gained $14 billion in net inflows during 2011). The Australian ETF market remains in its infancy with indications of growth to come. There are currently approximately 70 funds and $5 billion in assets under management.
“The launch of Market Vectors Australia is an important milestone,” said Lars Hamich, Managing Director of International Business Development at Market Vectors. “We look forward to expanding our global presence in a marketplace ripe with growth opportunity.”
Headquartered in New York City, Market Vectors already has a presence in other cities worldwide, including Shanghai, Frankfurt, Madrid and Pfaeffikon.
Meanwhile, in a further demonstration of Market Vectors’ international expansion ambitions, the firm has added five NYSE Arca-traded ETFs to the growing list of Market Vectors ETFs currently available to Qualified Investors in Mexico.
The five funds are the Market Vectors Oil Services ETF (OIH), the Market Vectors Semiconductor ETF (SMH), the Market Vectors Pharmaceutical ETF (PPH), the Market Vectors Biotech ETF (BBH) and the Market Vectors Retail ETF (RTH). Deutsche Securities Casa de Bolsa in Mexico will act as local sponsor and filing agent.