Source’s diverse ETP range proves popular with European investors

Oct 24th, 2012 | By | Category: Alternatives / Multi-Asset

Source, a leading provider of exchange-traded products (ETP), captured $1.2 billion or 24% of European net new ETP assets in September 2012, the highest share of assets of any European manager. Year to date, the provider ranks second for net new assets.

Source’s diverse ETP range proves popular with European investors

Assets under management at Source surged in September, as investors piled into the firm’s varied exchange-trade products.

Source’s commodities business now has total assets in excess of $4 billion across a suite of products, led by its flagship product, the Source Physical Gold ETC (SGLD).

The Source Physical Gold ETC, which is listed on the London Stock Exchange, Xetra and SIX Swiss Exchange, has pulled in upwards of $1.14 billion year to date and traded over $4.5 billion, making it the most liquid exchange-traded gold product in Europe. [See Source’s physical gold ETC (SGLD) surpasses $3 billion in assets].

Stefan Garcia, head of commodities at Source, said: “Source continues to see healthy demand for gold from a broad spectrum of clients as loose monetary policy shows no sign of abating, with private banks in particular showing renewed interest.”

Elsewhere in the commodities space, the LGIM Commodity Composite Source ETF (LGCU), which Source launched in conjunction with UK investment giant Legal & General, has accumulated in excess of $170 million year to date, as investors favour the balanced, broad-based commodity exposure offered by its unique composite index of indices. [See Legal & General teams up with Source to launch commodity ETF].

However, while Source is perhaps best known for its gold and commodities products, which continue to bring in assets and are the firm’s ‘bread and butter’, its entire product range has proved popular, with a number of other non-commodities-based products gaining significant traction this year.

Flows into the provider’s market-leading volatility products, the JP Morgan Macro Hedge Dual TR Source ETF (MHDU) and the Nomura Voltage Mid-Term Source ETF (VOLT), accounted for more than $410 million or 12% of Source’s net new assets in the year to date. [See Source sees sustained ETP inflows; maintains lead in volatility ETFs].

The firm’s broad-based equity beta products, such as the STOXX Europe 600 Source ETF (SDJ600) and MSCI Europe Source ETF (SMSEUR), have also done well, adding $1.1 billion.

Other highlights include the Pimco-managed money market alternative, the PIMCO US Dollar Short Maturity Source ETF (MINT), which has attracted $480 million year to date as the search for yield continues, and the Man GLG Europe Plus Source ETF (MPFE), an active equity fund designed by Man GLG’s AHL team, which has raised over $800 million in assets following strong relative performance. [See Negative real rates and high cash levels bring short-maturity ETFs into focus and Man Group’s European active-strategy ETF enjoys record inflows].

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