OSSIAM

Commodities exhibit unique characteristics including low correlations with bonds and equities and inflation-hedging abilities. These have made commodities an attractive addition to diversified portfolios and have generated growing interest in commodity indexing.

Using its expertise in systematic asset management, in 2013, Ossiam has set up an ETF offering a long only exposure to a risk weighted enhanced commodity index, based on S&P Goldman Sachs Commodity Index constituents, excluding grains.

Global ETF assets - these index products emerged in the asset management industry in the early 2000s - have reached the record level of 2 400 billion at the end of 2013, reaching global hedge fund assets...

Ossiam’s added value lies in the development of non-discretionary management styles, based on quantitative and fundamental analysis and the availability of these management strategies through Collective Investment Schemes to meet the various allocation and risk management requirements of investors.

One may reasonably argue that the recent flows into the Low Volatility strategies might affect their future performance because of the flow pressure on the prices of the companies that generally are selected by this investment approach. More recently, some market participants have even referred to Low Volatility investing as “a bubble”.