Exchange-traded Funds  

Source quits ETF Forum after less than a year

Source quits ETF Forum after less than a year

Exchange-traded fund (ETF) manager Source has left the ETF Forum, the provider-led initiative aimed at promoting the products' attributes to intermediaries, less than a year after its creation.

Source said it would now focus on using "digital content" to help explain ETFs to advisers and wealth managers, rather than the conference events run by the partnership.

“Source remains fully committed to delivering educational content to the IFA market but will now be doing this more through digital content," the company said.

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A spokesperson for the ETF Forum said it would not comment beyond Source's statement.

The partnership was established in May 2016 by BMO Asset Management, ETF Securities, WisdomTree and Source, with the aim of educating intermediaries about the use of ETFs as well as related topics such as trading costs and liquidity issues.

The exit comes at a time when ETF usage is rising sharply across Europe. Not all have been able to participate in that growth, however. Vanguard and iShares enjoyed significant net inflows last year, but economies of scale leveraged by the biggest players have made life more difficult for other providers.

In a sign of the tougher environment, Source itself is understood to have been put up for sale late last year by private equity backer Warburg Pincus.

However, the company achieved a notable success last month with the launch of a Commodity Ucits ETF that took in more than $900m (£720m) in assets in its first three weeks. Source said the product had grown at a quicker rate than any other seen in Europe over the past five years.