Volatility

The approach initiated by Ossiam’s research and management team intends to obtain an optimized portfolio that includes a selection of stocks where volatility is among the lowest in the investment universe

Two years ago, Ossiam entered the European market with ETFs based on two innovative investment strategies offering an alternative to traditional equity market cap-weighted indices: The Ossiam Equal Weight ETFs and The Ossiam Minimum Variance ETFs. Back to smart beta concept at Ossiam…

An increasing number of pension funds are opting to invest in ‘alternative’ or ‘smart beta’ indices to supplement their passive management activities. Several competing methods currently exist, each with their own objectives. Analysing the risk contribution of each factor by type of approach gives investors a clearer picture of the various competing smart beta methodologies.

The Fund BNP Paribas L1 Equity World Low Volatility seeks to outperform the MSCI World Index over a full market cycle with risk reduction objective and limiting tracking error risk level. Absolute volatility is targeted to be lower than the MSCI World Index.

In research published two weeks ago entitled, “Smart Beta 2.0,” EDHEC-Risk Institute is seeking to draw the attention of investors to the risks of traditional smart beta equity indices and propose a new approach to smart beta investing to take account of these risks.