Faraday rotation (FR) and magnetic circular dichroism (MCD) of nanocomposite structures based on potassium-aluminum-germanium-boron glasses co-doped with Fe and rare earth (RE) or Y+Bi oxides have been studied. Formation of magnetic nanoparticles as a result of the glass heat treatment ensures them magnetic and magneto-optical properties typical of magnetically ordered substances. At the same time, glasses keep transparence in visual spectral range owing to low paramagnetic oxides concentration. FR and MCD spectra of the heat treated glasses are shown to be very close to those of γ-Fe2O3 and practically independent of the RE element nature for the light wave energies lower than 22000 cm-1. For higher energies, the MCD spectrum shape depends strongly on RE what evidences the different origin of magneto-optical effects in two spectral ranges.