london gets first actively managed etf

db X-trackers and SCM Private have combined forces to list the first actively managed ETF on the London Stock Exchange.

london gets first actively managed etf


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.