The fund, which tracks the LGIM Commodity Composite Index, is designed to offer exposure to commodities through a Ucits-compliant ETF.
Similarly to other Source products and partnerships, the firm has worked on creating a bespoke benchmark offering exposure to a selection of "best of breed" commodity indices.
The sub-indices which make up the LGIM Commodity Composite Index are from Barclays, Citigroup, JP Morgan and UBS. These banks will also be swap counterparties for the product.
Graeme Dewar, head of strategy implementation at LGIM, said: "We are seeing increasing demand from clients looking for access to this asset class. Their primary requirements are for an efficient dynamic product with a diversification of counterparty risk.
"Our solution has been to develop an innovative type of benchmark index that includes a minimum of three constituent sub-indices."
The four sub-indices that currently make up the LGIM Commodity Composite Index will be reviewed at least annually to make sure it captures developments in commodity indexation, according to the group.
A spokesperson for LGIM said the launch did not signal plans for a large-scale move into exchange traded products, but added the firm would not rule out further launches at some stage.
The partnership represents the third fund management group Source has paired up with, following launches with Pimco and Man GLG.
Source said further partnerships were not out of the question and hinted property was one asset class it was yet to get its teeth into.
The LGI Commodity Composite Source ETF is listed on the London Stock Exchange and trades in sterling and dollars.
It is registered for sale in the UK and Ireland and is in the process of registering across Europe. The management fee is 0.40% per annum.
