Source is a leading European Exchange Traded Fund (ETF) provider founded in 2008 and owned by Warburg Pincus and five of the world’s largest trading houses, namely Bank of America Merrill Lynch, Goldman Sachs, J.P. Morgan, Morgan Stanley and Nomura, since June 2014 .Today, Source has 90 staff and manages over USD 20 billion in assets.
Source believes in providing a range of ETFs (and P-ETCs) that meet the ever-changing needs of investors. Each ETF is created based on the replication method that is (a) most efficient to deliver the performance and (b) demanded by investors. The replication method may be influenced by the characteristics of the underlying securities, for instance it may be more appropriate to use swaps to replicate an index where the securities are illiquid or numerous. As a result of this development process, around 40% of Source's assets are currently in physically replicated products while the vast majority of the rest make use of Source's innovative multi-counterparty swap approach, which aims to reduce the impact on the portfolio that a default by any counterparty may have. Irrespective of the method, Source aims to minimise tracking error. In addition to offering a range of relatively low cost "plain vanilla" beta products, Source works with other investment firms that have expertise in particular areas of the market that can be harnessed in an ETF format. Some of these "smart beta" products are only available via Source ETFs.
Source is one of Europe’s leading ETF providers with a unique approach and deep roots in the trading community. Source works with Ashmore, CSOP Asset Management, Goldman Sachs, Legal & General Investment Management, MAN GLG, Morningstar, PIMCO and Research Affiliates in order to deliver innovative products designed specifically to respond to the challenges investors face over the coming years.