Exchange-traded Funds  

Multi-asset ETF aiming for 3% yield launches

Multi-asset ETF aiming for 3% yield launches

Progeny Asset Management has launched a multi-asset ETF solution for investors seeking efficient upside exposure and yield.

The Optimised Passive Income 60/40 has been designed for investors who want exposure to a range of global asset classes and has a target yield of 3 per cent a year.

This is with a modelled annual drawdown in any 12-month period, and is not expected to exceed 7 per cent.

Optimised Passive Income 60/40 is expected to allocate around 60 per cent globally to equities, private equity, property, and around 40 per cent to global fixed income.

The solution will only be available through financial advisers and will be implemented via exposure to up to 14 iShares ETFs.

Ian Hooper, director of Progeny Asset Management, said that with an all-in fee of less than 1 per cent, Optimised Passive Income 60/40 offers a straightforward growth and yield solution that investors can tuck away for the long term, knowing that if they should need their money it can be raised quickly.

He said: "The whole Progeny ethos is customer-led and this is an example of that.

"We know investors and their advisers need diversified upside exposure and yield, but also wish to understand the downside risks. They expect this in a modern cost-effective and transparent structure.

"We worked closely with key industry players to design this solution based on a diversified range of ETFs that give efficient exposure to assets across the globe. 

"Progeny looks after the fund selection and the market exposure is provided via a suite of iShares. Winterflood Business Services provides custody and trading services.”

Based on expected demand, Mr Hooper said Progeny is likely launch a suite of similar solutions in the future.

Mel Kenny, chartered financial planner at London-based Radcliffe & Newlands, said: "The challenge for the multi-asset world has been to get tighter on costs and therefore solutions like this are welcome."

aamina.zafar@ft.com