It will be the first multi-asset exchange-traded fund to list on the London Stock Exchange, and follows db X-trackers’ launch of Europe’s first fund of ETFs in Germany last year.
The asset allocation will follow that of the SCM Absolute Return portfolio which currently has 38% in UK equities and 22.3% in corporate bonds with between 7% and 8% in each of global equities, emerging markets, emerging market bonds and cash or short-term bonds. It currently has 1.4% in commodities.
The asset allocation will be, with minor differences, the same across both propositions though the db X-trackers SCM Multi-Asset ETF will invest purely in db X-trackers products, both ETFs and ETCs.
The Multi-Asset ETF will also have a fixed charge of 0.89% as what is described as an “all-in” fee which includes an annual charge, custody expenses and the costs of underlying funds. Miller is quick to compare these costs to the 2.5% variable fee of traditional multi-asset funds-of-funds, adding there is no performance fee, not any initial, exit or platform charges.
This launch expands a fairly small range of actively managed ETFs, of which there are 126 worldwide and just ten in Europe. This is the first to be listed in London.