LONDON: Investment platform Lightyear has launched three high-yield money-market funds for UK retail investors, in collaboration with BlackRock, according to international-adviser.
Highlights:
· The funds are designed to be a low-risk investment, with a target net asset value of $/€/£ 1 per share.
· The funds are open to all UK retail investors, regardless of their investment experience or size of portfolio.
· The funds are managed by BlackRock, one of the world’s largest asset managers.
· The funds are expected to generate a higher yield than traditional savings accounts or cash ISAs.
The funds are denominated in US dollars, sterling, and euros, and have fees starting at 0.09% and going up to a maximum of 0.3%.
Lightyear said that the funds aim to maintain a net asset value of $/€/£ 1 per share, and that any excess earnings generated through interest on the portfolio holdings will be distributed to investors as dividend payments.
Taavet Hinrikus, co-founder of Lightyear, said: “We’re giving retail investors across major European countries access to a low-risk, high-yield product that’s previously been something only those with $1m or more could get their hands on.”
Martin Sokk, co-founder and chief executive of Lightyear, added: “We wanted to build something low-cost where you have easy access to your money. This is a ‘no-brainer’: a low-cost way for our customers to diversify their portfolio and earn a steady, high yield.”
The platform was founded in 2020 and has offices in London and Estonia. Investors in the company include Sir Richard Branson.