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Source ETF Partners With BoA Merrill Lynch For Emerging EMEA Fund
Devina Shah
29 June 2011
Source ETF, a provider of European exchange-traded products, has partnered with Bank of America Merrill Lynch in creating a fund, called the FTSE Emerging EMEA 40 Source ETF, aiming to offer efficient and liquid exposure to the emerging EMEA region. By the firm's classification, the emerging EMEA region includes Russia, South Africa and Poland as well as the Middle East and North Africa. Source currently offers exposure to this region via the FTSE Emerging EMEA 40 Index which was launched in April 2011 and is calculated and managed by FTSE. It comprises 40 stocks in the region; currently the largest weightings are to South Africa (29 per cent), Russia (28 per cent), Poland (16 per cent), Turkey (11 per cent), Hungary (7 per cent) and the Czech Republic (7 per cent). Other countries eligible for inclusion are said to be Egypt, Israel, Morocco and the United Arab Emirates. “This is a region that’s changing incredibly fast,” said Ted Hood, chief executive of Source. “The aim was to devise a product that gives investors liquid and cost-efficient access to a new, carefully constructed benchmark that correlates closely to other broad-based indices," said Jonathan Beebe, head of EMEA Equity Cash and Flow Derivatives Trading at BofA Merrill Lynch. The FTSE Emerging EMEA 40 Source ETF has a management fee of 0.60 per cent per annum and is listed on the London Stock Exchange.