NEW YORK--(BUSINESS WIRE)--VanEck today announced the launch of the VanEck Morningstar Wide Moat Fund (Class I shares: MWMIX; Class Z shares: MWMZX), an open-end mutual fund version of Morningstar’s “wide moat”-focused strategy that VanEck originally launched in 2012 through the VanEck Vectors Morningstar Wide Moat ETF (NYSE Arca: MOAT®). The popularity and success of the “wide moat” strategy prompted VanEck to expand the strategy’s application, particularly to key institutional clients.
Like MOAT, which has total net assets of approximately $1.3 billion as of October 31, 2017, the VanEck Morningstar Wide Moat Fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® Wide Moat Focus Index SM (MWMFTR). The Index targets U.S. companies with sustainable competitive advantages, i.e. “moats,” and attractive valuations in the view of Morningstar’s team of more than 100 equity analysts.1 According to Morningstar’s Equity Research group, companies with moats have the potential to create value and generate returns for longer periods of time.
Through October 31, the Morningstar Wide Moat Focus Index has outperformed the S&P 500® Index over the 1-year, 3-year, 5-year, and 10-year periods. Over the 10-year period, the Index has outperformed the S&P 500 Index by over 4% annually.2
“MOAT has stood out from the time it was introduced to the market in early 2012 and has experienced a great deal of acceptance across different investor types,” said Kristen Capuano, Vice President and Head of Active Products with VanEck. “There are investors from various important institutional categories that have indicated interest in traditional mutual fund exposure. By launching this mutual fund with both I and Z shares, we’re now making the ‘wide moat’ strategy available more broadly.”
The launch of the Morningstar Wide Moat Fund is the first time VanEck has offered a Class Z share specifically tailored for the retirement channel. Expenses for the Fund are in line with MOAT and a management fee of 0.45% is offered across both types of investments. Total expenses for the Fund will be capped at 0.59% for Class I shares and 0.49% for Class Z shares.3
VanEck’s mission is to offer investors forward-looking, intelligently designed investment strategies that take advantage of targeted market opportunities. Founded in 1955, the firm is a pioneer in global investing with a history of placing clients’ interests first in all market environments. Today, VanEck continues this tradition by offering active and passive investment portfolios in hard assets, emerging markets equity and debt, precious metals, fixed income, and other alternative asset classes. VanEck Vectors exchange-traded products are one of the largest ETP families in the world, managing more than 70 funds that span a range of sectors, asset classes, and geographies. As of September 30, 2017, VanEck managed approximately $42.1 billion in assets, including mutual funds, ETFs, and institutional accounts.
1Equity analysts referred to are part of Morningstar’s Equity Research group which consists of various wholly-owned subsidiaries of Morningstar, Inc., including but not limited to, Morningstar Research Services LLC.
2Index performance is not representative of fund performance and does not reflect any management fees or brokerage expenses. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and capital gains, if any. Investors cannot invest directly in an index. Fund performance current to the most recent month-end can be found at www.vaneck.com. Prior to November 6, 2017, the Fund had no operating history.
3Expenses are capped contractually until May 1, 2019. Cap excludes acquired fund fees and expenses, interest expense, trading expenses, dividends and interest payments on securities sold short, taxes and extraordinary expenses.
The Morningstar® Wide Moat Focus Index℠ consists of U.S. companies identified as having sustainable, competitive advantages and whose stocks are attractively priced, according to Morningstar.
The S&P 500® Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.
Effective June 20, 2016, Morningstar implemented several changes to the Morningstar Wide Moat Focus Index construction rules. Among other changes, the index increased its constituent count from 20 stocks to at least 40 stocks and modified its rebalance and reconstitution methodology. These changes may result in more diversified exposure, lower turnover, and longer holding periods for index constituents than under the rules in effect prior to this date. Past performance is no guarantee of future results.
The Morningstar® Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat Fund or VanEck Vectors Morningstar Wide Moat ETF and bears no liability with respect to that mutual fund, ETF, or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM is a service mark of Morningstar, Inc.
You can lose money by investing in the VanEck Morningstar Wide Moat Fund (the “Fund”). Any investment in the Fund should be part of an overall investment program rather than a complete program. All mutual funds are subject to market risk, including possible loss of principal. An investment in the Fund may be subject to risks which include, among others, investing in the health care, consumer discretionary, industrials, information technology and financial services sectors, medium-capitalization companies, equity securities, market, operational, high portfolio turnover, index tracking, replication management, non-diversified, and concentration risks, which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks. The Fund's assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors. For a description of these and other risk considerations, please refer to the Fund’s prospectus, which should be read carefully before you invest.
An investment in VanEck Vectors® Morningstar Wide Moat ETF (MOAT®) may be subject to risks which include, among others, investing in the health care, consumer discretionary, industrials, information technology and financial services sectors, medium-capitalization companies, equity securities, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, replication management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and concentration risks, which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks. The Fund's assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
The S&P 500® Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Van Eck Associates Corporation. Copyright © 2017 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
Fund shares are not individually redeemable and will be issued and redeemed at their Net Asset Value (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. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading fund shares in the secondary market. Past performance is no guarantee of future results. Returns for actual fund investments may differ from what is shown because of differences in timing, the amount invested, and fees and expenses.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund’s investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck Funds and VanEck Vectors ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck Funds and VanEck Vectors ETFs carefully before investing.
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