'A sign of the maturity within the ETF market': Industry reacts to Invesco's takeover of Source

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Industry commentators have said Invesco's proposed takeover of ETF specialist Source is further proof the M&A trend is gathering pace across the asset management industry, although this may not necessarily lead to fewer players in the passives space in the future.

At the end of last month, Invesco announced it was adding to its PowerShares business, which has $110bn assets under management (AUM) as at 31 December 2016, with the planned acquisition of Source.  The transaction includes approximately $18bn in Source-managed AUM, plus approximately $7bn in externally-managed AUM, and is expected to complete in Q3. Invesco said the reason for the acquisition is to accelerate growth in its European offering, while continuing to meet "increasing demands from clients who want to work with investment organisations that can deliver across the full range ...