Source, a London-based provider of exchange-traded products, has partnered with GLG Partners, a subsidiary of Man Group, to launch two new active strategy ETFs on the London Stock Exchange.
The two new long-only, total return equity ETFs, Source Man GLG Continental Europe plus UCITS ETF (MPCE) and Source Man GLG Asia plus UCITS ETF (MPAS) will focus on continental Europe and Asia Pacific equities.
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Management fees for the Europe and Asia-focused ETFs will be 0.75% and 0.95% per annum, respectively.
The Continental Europe fund is traded in GBP while the Asia fund is traded in USD.
The aim of both the funds is to outperform their respective regional equity markets while limiting active risk.
In January 2011, Source and GLG Partners have launched their first active ETF, the 700 million (£589.7 million) Man GLG Europe Plus Index ETF, which includes investment in UK-listed companies.
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By GlobalDataThese equity strategies are developed to capture value from their investment recommendations specifically sent by GLG and aim at further improving the returns resulting from the recommendations of the broker using a variety of algorithms that identify trends within the received ideas.
Khalil Mohammed, portfolio manager and co-head of equities at Man Group, said: "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."
Ted Hood, CEO of Source, said: "There is clear and growing demand for this kind of ‘Beta Plus’ strategy. 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."
