Invesco is to acquire independent exchange traded fund (ETF) provider Source, it announced today.
The asset manager said it had agreed to take on Source’s $18bn (£14bn) of in-house and $7bn of externally managed assets, for an undisclosed sum, to broaden its talent base and range of funds available to clients.
It will combine Source’s assets with its ETF offering, Invesco PowerShares which had $110bn under management as at 31 December 2016.
Invesco said in a statement that the aim of the acquisition was to increase its factor-based strategies and ETF offering and enhance its ability to meet institutional and retail clients’ needs in Europe.
The deal will also give the manager a boost through the addition of ETF specialists across sales, marketing, capital markets and product development, it added.
Invesco president and chief executive Martin Flanagan said the acquisition will “significantly enhance” the firm’s ability to deliver solutions to institutional and retail clients in Europe and around the world.
He added: “The addition of Source will help us meet increasing demands from clients who want to work with investment organisations that can deliver across the full range of investment capabilities and provide the outcomes they seek.”
Source executive chairman Mike Paul described the two firms as “extremely complimentary”, adding he believed the combined business would become a “true leader” in the European ETF market.
“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,” he said. “Our drive for new product excellence will remain at the heart of the combined business.”
PowerShares was founded in the US in 2003 before becoming part of Invesco in January 2006. Source was launched in April 2009.
