Source, the 14 month old provider of exchange-traded products, says its assets have now reached over USD6bn.

This 86 per cent increase since the beginning of the year is the result of significant inflows into a number of Source products including the Source Emerging Markets and Euro Stoxx 50 ETFs as well as in the Source Physical Gold P-ETC.  
 
The Euro Stoxx 50 Source ETF gathered over EUR575m since the beginning of June alone, taking its total assets under management to over EUR1bn. This significant growth in AUM represents a 150 per cent increase since the beginning of the year, despite strong market headwinds in most leading equity indices. The fund is now one of the largest Euro Stoxx 50 funds in Europe.
 
In addition, both Source emerging markets ETFs saw growth in assets since May. Launched at the beginning of May, the MSCI Emerging Markets Source ETF has already grown to USD869m whilst the RDX (Russia) Source ETF, has risen to USD272m. This takes Source total emerging market assets to over USD1.1bn.

Ted Hood, chief executive of Source, says: “We have been saying from the start that the European ETF market could be reaching an inflection point, but that it would take dedicated focus on liquidity, transparency and reduced counterparty risk to bring about true change. Our results for the past year suggest that investors agree with us, and we will continue to focus on delivering these critical features.”

The levels of trading liquidity seen in Source products have shown that Source products are gaining momentum across the various segments of the European institutional investment community.

Source Optimisied Supersector ETFs continued to dominate secondary trading volumes in May, with a total of EUR7.3bn total turnover, according to Cascade, Clearstream’s German settlement system. This represented 76 per cent of Cascade’s reported European sector activity, dwarfing the turnover on competing products.

Furthermore, Source has also seen a significant increase in on-exchange turnover in its Euro Stoxx 50 ETF. Source’s Euro Stoxx 50 total turnover (both on-exchange and OTC) in the first three weeks of June reached EUR1.01bn and it has been the most highly traded Euro Stoxx 50 ETF in five of the last eight trading days.