Investing platform Public today announced the launch of music royalties on its alternative asset platform.

Starting with a catalog of 768 composition tracks from the “Shrek” film franchise composed by Harry Gregson-Williams, investors may be able to further diversify their portfolios with a cash-flow-producing asset that can pay quarterly dividends. While royalties, like all investments, carry some degree of risk, these assets have a low correlation with stocks, bonds, and other traditional investments, which means they can help reduce portfolio volatility and increase risk-adjusted returns.

Launching with the franchise, a music library spanning hundreds of songs across multiple media properties, means earnings for retail investors are not reliant on a single song. After 20 years, the film has broad cross-generational appeal and still plays a role in popular culture, potentially making it a timeless asset class.

The asset generates royalties when Shrek films (Shrek, Shrek 2, Shrek the Third, and Shrek Forever After, and the TV special Shrek The Halls) air on television, are streamed, or are used in other broadcast programming, or anytime the music plays on a Shrek theme park ride. Investors will receive royalties as quarterly dividend payments.

The initial offering for shares in the entity holding the Shrek royalty interest is $889,700, with 88,970 shares available at $10 per share. Retail investors can invest on the October 5, 2023 mini IPO date, at 10 am ET. After investing, shareholders can earn dividends from the royalties generated by the consumption of the content. While dividend payments are not guaranteed, will fluctuate based on content consumption, and may not be paid at all, the asset generated an 8.5% dividend yield from 2022 royalties and an 8.33% dividend yield from 2021 royalties.

“Investors are increasingly looking to diversify across asset classes, from stocks to collectibles to royalties,” said Keith Marshall, GM of Alternatives at Public. “By launching royalties, we are excited to give investors another asset class to build a multi-asset portfolio that can generate passive income.”