Source enjoys strong year of ETC inflows

Feb 3rd, 2012 | By | Category: Commodities

Source topped the table of European ETC issuers in net new assets in 2011 with $1.26 billion of net inflows, according to a statement released by the company.

Source enjoys strong year of ETC inflows

Sources’s flagship ETC, Source Physical Gold, captured a large share of the company's inflows, taking assets in the product to over $2.3bn.

The London-based company’s flagship ETC, Source Physical Gold, captured a large share of these inflows, taking assets in the product to over $2.3 billion.

Overall, Source received nearly 20% of total commodity ETP net new assets in Europe, doubling its total commodity assets under management to $2.5 billion.

Stefan Garcia, head of commodity sales at Source commented, “I think that focusing on clients and providing them with commodity products that satisfy their multiple needs has put us in a very strong position in the commodity segment of the ETP market.

“In addition, with innovative new products, such as the new LGIM Commodity Composite Source ETF, we continue to provide clients with a number of tailored solutions in a segment of the market into which they are focused and continuing to allocate assets.”

Besides registering strong net inflows, Source marked new high points in the commodity segment in 2011 as the total trading volume on the London Stock Exchange (LSE) in Source Physical Gold crossed $4 billion, a 400% increase on 2010.

These volumes were reflected in the average bid/offer spread on Source Physical Gold dropping to below 10 basis points on the LSE.

Source’s progress in commodities comes on top of ranking third by net new assets gathered across all ETP products in Europe, trailing only Blackrock (iShares) and UBS.

Ted Hood, CEO of Source, said, “Clients are embracing our model and its focus on transparency, quality, efficient risk management.  We made a significant effort in 2011 to go out and speak to our clients in great detail on all of these topics; our message is resonating well with investors, as reflected in the numbers for 2011.

“In 2012, we will continue to focus on our clients’ needs and addressing the issues they face. The numbers and rankings will take care of themselves.”

Source entered the European ETP market in 2009 and is owned by BofA Merrill Lynch, Goldman Sachs, JP Morgan, Morgan Stanley and Nomura.

As well as its own product range, the company has launched a number of ETFs in partnership with fund management houses Man Group, PIMCO and, most recently, L&G.

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