Source gains highest European ETP assets in September

Source, a leading provider of Exchange Traded Products (ETP), captured US$1.2bn or 24% of European net new assets (NNA) in September 2012, the highest share of assets of any European ETP manager.….

Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy

Source’s commodities business now has total assets outstanding (TAO) in excess of $4bn across a suite of commodity products. The flagship product, Source Physical Gold (SGLD), has raised NNA in excess of $1.14bn year to date, and traded over $4.5bn³. SGLD is listed on the LSE, XETRA and SIX and is the most liquid exchange traded gold product in Europe³.

Stefan Garcia, head of commodities at Source said, “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 US$410m or 12% of Source NNA in the year to date, while broad based beta products added US$1.1bn or 30% of Source NNA.

The PIMCO short maturity ETF (MINT) has attracted US$480m 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 US$800m in assets. The LGIM Commodity Composite ETF has raised in excess of US$172m year to date as investors favour the balanced, broad-based commodity exposure offered by Legal & General’s composite index.

1. Note¹: ETFGI figures
2. Note²: ETFGI and Deutsche Bank figures
3. Note³: London stock exchange figures

Source ETPs: Top ten products by net new assets, year to date 2012

	UBS gives investors a new and interesting access to Gold Listed today on the SIX Swiss Exchange Gold is expected to be the biggest beneficiary of the latest round of liquidity measures launched by the central banks. Therefore, UBS has listed a new Gold ETF on the Swiss stock exchange which gives UCITS compliant investors the possibility to invest in Gold. The UBS-IS Gold ETF (USD) IX is tradeable in US dollars and euros as of now. The newly-launched UBS-IS Gold ETF (USD) IX, while not allowing the option of redemption in kind, offers cost-effective access to gold for those investors who are obliged to invest in accordance with the European UCITS directives. To enable them to invest in gold while complying with the restrictions imposed on them, the new asset class “IX” has been created, with – in contrast to the other UBS Gold ETFs – the physical delivery of gold being deliberately prohibited. The new ETF’s total annual costs (TER), at 0.3%, are impressive, and make it the best-value ETF of this type on the Swiss market. Where tradeability is concerned, too, UBS has taken account of investors’ needs: Although performance, as before, is based on the London Gold Fixing afternoon price in US dollars, the new Gold ETF can be traded not only in US dollars but also in euros. As Thomas Merz, UBS Head of ETF Switzerland and Liechtenstein comments: “Many investors have again become interested in gold as a component in their portfolios. They expect the price of the precious metal to make it especially profitable in a market environment like today’s, with its low real interest rates and high liquidity. The UBS ETF now offers investors subject to UCITS, too, the opportunity to participate directly and simply in the performance of the price for physical gold.“ The new UBS ETF on the SIX: Fund name TER Valor/ ISIN Trading currency Bloomberg ticker UBS-IS Gold ETF (USD) IX 0,30% 19 049 528 CH0190495280 CHF,EUR AUUSX SW AUUSXE SW UBS already offers ETFs on gold in US dollars and in currency-hedged versions in Swiss francs and euros, which can be traded on the SIX Swiss Exchange. There are two share classes available: the “A” share class is geared toward private clients, while the “I” share class addresses the needs of institutional investors and high net worth individuals.