Deutsche Bank’s exchange traded fund platform db X-trackers and investment manager SCM Private have partnered to launch a fund of ETFs.
The db X-trackers SCM multi asset ETF provides exposure to a portfolio of ETFs and exchange-traded commodities, with the goal of using asset allocation to accumulate returns over inflation.
Allocation will be determined on at least a monthly basis by SCM Private and will be made based on a total return strategy with the majority of Deutsche Bank’s ETFs and ETCs available for inclusion.
The ETF has an ‘all-in’ fee, which does not include portfolio rebalancing costs, of 0.89 per cent per annum. This is inclusive of the management fee of the underlying ETFs and ETCs invested in.
UK head of db X-trackers Manooj Mistry says: “Active asset allocation via passive instruments is set to be a growing trend. At a more fundamental level, it will appeal to investors looking for a straight forward and cost effective way to add an active element to their portfolio.”