Source announce the launch of an innovative ETF which aims to match the returns of investing in private equity buyout funds through exposure to listed, public-market instruments. ……..
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Source CEO Ted Hood
The Source Nomura Modelled PERI UCITS ETF has a lower minimum investment than traditional private equity funds and can be bought and sold on exchange, throughout the trading day.
The ETF tracks the performance of the Nomura QES Modelled Private Equity Returns Index (Net) (“PERI”). PERI targets returns similar to the global buyout fund universe, on a committed capital basis, using a combination of equity sector indices and cash in major currencies. To determine its weekly sector and currency exposures, PERI uses a proprietary model developed by Quantitative Equity Strategies, LLC, a specialist in liquid alternative investments, which utilises fund data and deal intelligence from leading private equity provider PreqinLtd.
“Private equity has consistently delivered greater returns than many other asset classes. However, certain characteristics of the market, including long lock-up periods, a lack of transparency and large minimum investments are drawbacks for many investors. PERI targets private equity-type returns, but in a transparent, liquid and cost efficient manner,” says Matthew Peakman, Managing Director, Head of Fund Derivatives Trading at Nomura, the index sponsor. “Nomura has brought together the market leader in private equity data and an expert in financial modelling to create and offer this unique, liquid and investible index.”
“For many investors, private equity is interesting but inaccessible,” says Source CEO Ted Hood. “This product is the first to provide exposure to PERI – an accessible alternative to private equity – in a robust, transparent ETF wrapper.”
The Nomura Modelled PERI Source ETF is traded on the London Stock Exchange in USD. The minimum investment is 1 share (approximately USD 12,000 on launch date).
PRODUCT SUMMARY
Product name :Source Nomura Modelled PERI UCITS ETF
Management fee : 0.30% p.a.
Benchmark index : Nomura QES Modelled Private Equity Returns Index (Net) (PERI)
Index fee : 1% p.a. plus implementation costs (0.05% on notional equity sector transactions and 0.40% p.a. on the portion of the Reference Index allocated to equity sectors), included in index calculation
Exchange :London Stock Exchange
ISIN : IE00B988TC33
Trading currency : USD
Bloomberg (ticker): PERI LN
Bloomberg (iNAV): PERIIN
Reuters (ticker): PERI.L
WKN A1T7D1
Domicile: Ireland
Source: ETFWorld.co.uk
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