Invesco to expand its ability to meet client needs in Europe and globally by acquiring Source, a leading independent provider of ETFs.
April 27, 2017 - Invesco Ltd has entered into a definitive agreement to acquire Source, a leading, independent specialist provider of exchange traded funds (ETFs).
With approximately $18 billion in Source-managed AUM, plus approximately $7 billion in externally managed AUM (as of March 31, 2017), Source has established a reputation as one of Europe’s most innovative ETF providers. The acquisition brings additional talent and a broad array of funds that expands the choices clients have for Invesco’s active, passive and alternative capabilities. Our aim is to enhance the Invesco’s ability to help clients achieve their investment objectives. In particular we are focussed on delivering the following benefits from this acquisition:
Expanding the depth and breadth of factor-based strategies and ETFs, adding to the comprehensive range of investment capabilities Invesco offers in Europe and across the globe;
Enhancing Invesco’s expertise and ability to meet the needs of institutional and retail clients in Europe with the addition of dedicated ETF specialists spanning sales, marketing, capital markets, and product development; and
Strengthening Invesco’s position in the European market while achieving additional scale and relevance in the growing ETF market globally.
Martin L. Flanagan, President and CEO of Invesco, said:
“We’re excited about this opportunity to build on Invesco’s 40 years of factor investing experience and our existing PowerShares ETF business, which will significantly enhance our ability to deliver meaningful solutions to institutional and retail clients in Europe and around the world. The addition of Source will help us meet increasing demands from clients who want to work with investment organizations that can deliver across the full range of investment capabilities and provide the outcomes they seek.”
Mike Paul, Executive Chairman of Source, said:
"Invesco and Source are extremely complementary, and the combined business will be a true leader in the ETF market across Europe. We are very proud to have built Source into one of Europe's most competitive and innovative ETF providers with some of the most compelling products in the market. Our drive for new product excellence will remain at the heart of the combined business.”
Subject to regulatory approval, the acquisition is expected to close in the third quarter of 2017.
Source is an investment firm and one of Europe’s leading Exchange Traded Product (ETP) providers. Since launch in April 2009, Source has focused on delivering incremental value to European ETP investors through a combination of enhanced indices, strong partnerships, improved structuring and active trading. Its range of products gives investors the ability to gain exposure to equities, commodities, fixed income and alternative assets, through ETF and ETC structures with deep liquidity, increased transparency and reduced counterparty risk. Further information about Source is available at www.SourceETF.com.