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Source and Man Group in second joint venture with double active ETF launch
by Elsa Buchanan on Sep 20, 2013 at 14:47
Exchange traded fund (ETF) provider Source has joined forces with Man Group to launch their second ETF joint venture with two new long-only, total return equity ETFs focusing on continental Europe and Asia Pacific equities.
In January 2011, Source and GLG Partners, which is part of Man Group, launched their first active ETF, the €700 million (£589.7 million) Man GLG Europe Plus Index ETF, which includes investment in UK-listed companies.
The Source Man GLG Continental Europe Plus ETF and the Source Man GLG Asia Plus ETF, which will be US dollar-deominated, will be launched on 23 September.
Management fees for the Europe and Asia-focused ETFs will be 0.75% and 0.95% per annum, respectively.
The new ETFs are based on two existing long-only total return equity strategies, the Man GLG Continental Europe Plus and Man GLG Asia Plus Strategies, which take a systematic approach.
Khalil Mohammed, Man Group's co-head of equities, explained the firm has run a Continental European fund since 2009, 'using the same strategy' and 'with good results'. He added: 'In Asia, our research shows that broker ideas could generate outperformance of between 3% and 8% per annum over the broader Asian equity market.'
‘There is clear and growing demand for this kind of ‘Beta Plus’ strategy,’ said Ted Hood, chief executive at Source. ‘The Man GLG Europe Plus Source ETF has struck a chord with investors, so we are delighted to be offering the same strategy in these two focused regions.’