Source captured USD1.2bn or 24 per cent of European net new assets (NNA) in September 2012, the highest share of assets of any European exchange-traded product manager.
Investors poured over USD5bn of NNA into ETPs in September, representing growth of five per cent month on month. This inflow increases total net new assets in European ETPs in 2012 year to date to USD21bn. Source retains second rank for NNA year to date.
Source’s commodities business now has total assets outstanding (TAO) in excess of USD4bn across a suite of commodity products. The flagship product, Source Physical Gold (SGLD), has raised NNA in excess of USD1.14bn year to date, and traded over USD4.5bn. SGLD is listed on the LSE, Xetra and SIX and is the most liquid exchange traded gold product in Europe.
Stefan Garcia, head of commodities at Source, says: “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. Source is proving to be investors’ first choice when looking for a vehicle that is physically backed, has tight spreads, is liquid and is efficiently priced.”
As investors consider “smart passive” strategies, content from specialist asset managers are growing in favour. Source’s outperformance products have been gaining significant traction, with flows into volatility accounting for more than USD410m or 12 per cent of Source NNA in the year to date, while broad based beta products added USD1.1bn or 30 per cent of Source NNA.
The Pimco short maturity ETF (MINT) has attracted USD480m year to date as the search for yield continues to drive flows into fixed income ETFs. The Man GLG Europe Plus index has delivered 334bp in excess returns over the MSCI Europe Net TR and the fund has raised over USD800m in assets. The LGIM Commodity Composite ETF has raised in excess of USD172m year to date as investors favour the balanced, broad-based commodity exposure offered by Legal & General’s composite index.