Source and Man Group expand successful Etf range

Following the success of their first ETF joint venture based on the Man GLG Europe Plus Index, Source, a leading ETP provider, and GLG Partners LP (“GLG”), part of Man Group plc. (“Man”) have launched two new ETFs focusing on continental Europe (ex UK) and Asia (ex Japan)….

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Khalil Mohammed, de Man

The Source Man GLG Continental Europe Plus UCITS ETF and the Source Man GLG Asia Plus UCITS ETF offer exposure based on a proveninvestment strategy, the Man GLG Europe Plus Index. These long-only, total return equity strategies are designed to capture outperformance from brokerideas provided specifically for GLG. They use high quality ideas from the leading brokers to create liquid, highly diversified equity portfolios. Thestrategies aim to further improve the returns from the idea contributors by using a variety of algorithms that detect patterns in the ideas received.
Since 2005, GLG has used a systematic process to capture broker ideas and construct a diversified equity portfolio. The new ETFs apply this process to continental Europe (ex UK) and Asia (ex Japan). Both ETFs aim to outperform their respective regional equity markets, while limiting active risk.
The existing Man GLG Europe Plus Index, which includes investment in UK listed companies, has outperformed MSCI Europe for four of the past five years*. The Man GLG Europe Plus Source ETF, with current assets of EUR700 million, is one of the largest European equity ETFs that does notfollow a traditional benchmark.
“We believe our strategy has the potential to generate outperformance in both these regions,” says Khalil Mohammed of Man. “We have run a Continental European fund since 2009, using the same strategy and with good results. 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,” says Source CEO Ted Hood. “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.”
The Source Man GLG Continental Europe Plus UCITS ETF will be traded on the London Stock Exchange in GBP (from Monday 23rd September). The Source Man GLG Asia Plus UCITS ETF will be traded on the London Stock Exchange in USD (from Monday 23rd September). Both ETFs are actively managed, with GLG Partners LP as Strategy Manager.

* Source: Man GLG, the period is from 2008 to 2012 is based in EUR, performance is net of product fees. Past performance is not indicative of the future returns.

Source: ETFWorld.co.uk – Source

PRODUCT SUMMARY

Source: ETFWorld – Source