Source: IndexUniverse                 Date: 25 May, 2011

Van Eck Global, the New York-based fund sponsor known for its natural resources investments, has filed paperwork with the Securities and Exchange Commission to market an equities fund of companies in Mongolia. The Market Vectors Mongolia ETF will hold at least 80 percent of its assets in companies either based in or listed in Mongolia, or based elsewhere but derive at least half their revenues from business activities in Mongolia, according to the filing. Van Eck said that as of the filing, the basic materials, energy and industrials represent a significant portion of the index, which it did not name.

Van Eck, which warned of risks of investing in a country that does not have a long history of capital markets as they exist in the developed world, said in the filing the fund will be able to use derivative instruments such as swaps to carry out its investment strategy. The fund company did not name the fund’s ticker or say what the ETF’s annual expense ratio might be.