The Source Man GLG Continental Europe Plus Ucits ETF and the Source Man GLG Asia Plus Ucits ETF follow the proven joint venture strategy, the Man GLG Europe Plus Index.
The pair of funds offer long-only, total return equity strategies based on a systematic process that GLG – which is part of the Man Group – has designed to capture bespoke investment ideas from brokers, which are then used to construct a diversified equity portfolio, rather than just tracking an existing index.
Both products are designed to outperform their regional markets while limiting active risk.
Referring to the funds as having a ‘beta plus’ strategy, Source said the first launch – the Man GLG Europe Plus Source ETF – has gathered €700m, making it one of the largest European equity ETFs that does not follow a traditional benchmark.
The European vehicle will have an AMC of 0.75% while the Asian fund will charge 0.95%. Both vehicles will be listed on the London Stock Exchange from September 23.
The European ETF will be available in sterling, while the Asian ETF will be in USD.
Khalil Mohammed, co-head of equities at Man, said: “We believe our strategy has the potential to generate outperformance in both these regions. 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.”