Product innovation and commodities demand drive growth at ETF Securities

Dec 19th, 2012 | By | Category: Commodities

ETF Securities, one of the world’s leading providers of Exchange-Traded Commodities (ETCs), has seen its global assets under management appreciate by more than 22% between January and November 2012 to reach $30.2 billion.

Product innovation and commodities demand drive growth at ETF Securities

Matt Johnson, Head of EMEA Distribution, ETF Securities.

Net new inflows accounted for half of the $5.5 billion increase, as investor demand for commodity exposure remained strong.

During the year the commodities specialist listed 52 new exchange-traded products (ETPs), including three precious metal ETFs in Hong Kong; four Brent crude oil ETCs in Europe; ten commodity ETCs on the Australian Securities Exchange; and 35 commodity ETCs designed to hedge out US dollar exposure against the British pound or the euro.

The London-headquartered issuer also completed 70 cross-listings of its ETCs, in an effort to make commodity investing more accessible on local stock exchanges around the world.

Aside from new products and listings, ETF Securities continued to expand its presence by opening a new office in Hong Kong, in response to growing commodity ETP demand in Asia, and increasing headcount globally by nearly 15%.

Over the year ETF Securities also made further investments in its events and investor education programmes in a continued effort to raise awareness of commodity and ETP investing. The company’s conferences, conference calls and briefings, which are currently offered to professional investors only, are now fully CPD accredited.

Commenting, Matt Johnson, Head of Distribution for EMEA, ETF Securities, said: “In this period of market volatility, our independence has enabled us to quickly adapt to market changes and take advantage of opportunities that arose. We have a solid strategy in place for next year which will enable us to continue to build on this year’s achievements.”

Resilient commodities demand has also boosted assets at Source, ETF Securities’ nearest rival in Europe. London-based Source captured the second highest net new assets in Europe year to date, adding $4 billion, to take total assets under management to $12.8 billion. The provider’s flagship gold product, Source Physical Gold P-ETC (SGLD), led the way with inflows of over $1.5 billion. Source is now the second-largest commodity ETC provider in Europe.

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