Progeny Asset Management has launched a multi-asset ETF solution for investors seeking efficient upside exposure and yield.
The Optimised Passive Income 60/40 is designed for investors who wish to have exposure to a range of global asset classes and a target yield of 3 per cent a year but with modelled annual drawdown in any 12-month period, not expected to exceed 7 per cent.
Progeny writes that this will be implemented via exposure to up to 14 industry-leading iShares ETFs. The solution will be available via financial advisers only, not direct to clients.
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.
Ian Hooper, Director of Progeny Asset Management, says: “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, the market exposure is provided via a suite of iShares. Winterflood Business Services provides custody and trading services.
“With an all-in fee of below 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, as the ETF’s are liquid and traded on exchange.”
Based on expected demand, Progeny are likely to launch a suite of similar solutions in the future.