Man Group plans European passport for first ETF

Man Group is to passport its first exchange traded fund across Europe after it begins trading on Deutsche Börse this week.

The fund, called Man GLG Europe Plus Source ETF, will track an index of what Man regards as the best analyst recommendations on European shares.

Ideas that about 60 brokers provide to Man GLG will be analysed by a system developed by Man Systematic Strategies (MSS), a quantitative research effort within Man, in selecting the best ideas for inclusion in the portfolio.

GLG has used a systematic process since 2005 to identify what it regards as the highest quality ideas from brokers, to create a liquid, diversified portfolio.

It is not the only hedge fund group to do so. Rivals, and notably Marshall Wace, have made their name, and wealth, largely from constructing portfolios using what theyjudge to be the best broker tips available.

The list of broker ideas that the GLG ETF will track has a similar spread across company sizes to that of the broad European equity market.

Sandy Rattray, head of MSS at Man, said the product would also have “a high level of transparency”.

The ETF is domiciled in Ireland, traded in euro, and charges its investors a 0.75% annual management fee.

David Walker

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