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Ossiam adds Global Equities to Minimum Variance strategies

Ossiam, the smart beta [1] and exchange-traded funds (ETFs) investment manager and affiliate of Natixis Global Asset Management (NGAM), has today announced the launch of its latest ETF which offers access to its minimum variance strategy applied to global developed equity markets.

Article also available in : English EN | français FR

The new fund, Ossiam ETF World Minimum Variance NR, replicates the performance of the Ossiam World Minimum Variance Index NR. The aim of the index is to deliver the net total return performance of a selection of the most liquid stocks from the S&P Global 1200® Index NR [2], weighted to minimize the risk of the total portfolio. The index is calculated and published on a real time and end-of-day basis by Standard & Poor’s [3]. It has a total expense ratio of 0.65% per annum.

The fund will be listed on October 22nd 2012 on NYSE Euronext Paris, Borsa Italiana in Milan, Deutsche Börse in Frankfurt and on October 29th 2012 on the London Stock Exchange.

In the UK, the new ETFs will be listed in GBP and USD and distributed and marketed through NGAM UK Limited.

The robust framework of Ossiam’s minimum variance investment strategy used in Ossiam’s other investment products has enabled them to achieve their objective of volatility reduction (as shown on the next page).

Bruno Poulin, CEO of Ossiam, said, “Following the success of its minimum variance strategy in other products, Ossiam recognised the opportunity to make available to investors a means of investing in a global equities portfolio that aims to reduce volatility. Ossiam’s Minimum Variance ETFs offer access to diversified portfolios - exposed to equity markets with on average a 30% [4] reduction in volatility and drawdowns in a systematic framework.”

This success has encouraged investors – institutional, wholesale and retail - to continue to steadily allocate to Ossiam’s strategies and ETFs since their launch in June 2011. As of September 30th, 2012, Ossiam’s AUM was €525.5 million including $264.4 million in Ossiam ETF US Minimum Variance NR; €137.3 million in the Ossiam ETF iSTOXX Europe Minimum Variance NR; £13 million in the Ossiam ETF FTSE 100 Minimum Variance; and $64.1 million in the Ossiam ETF Emerging Markets Minimum Variance NR.

Hervé Guinamant, President and Chief Executive Officer of NGAM International Distribution, said: “Volatility is here to stay and so are strategies to address it. Our recent global survey [5] demonstrated that the vast majority of institutional investors are finding it difficult to mitigate the impact of market volatility on portfolios. But an even greater proportion view market volatility as an investment opportunity. Ossiam’s strategies and funds are designed to both stand up to today’s volatile markets and help investors reach their return objectives, making them a key component in building more durable portfolios.”

Next Finance October 2012

Article also available in : English EN | français FR


[1] « Smart beta » refers to systematically-managed, non-market-cap-weighted strategies covering any asset class.

[2] The S&P Global 1200® Index NR is a market capitalisation-weighted index covering 31 countries and approximately 70% of global stock market capitalisation.

[3] In order to minimize any potential for conflicts caused by the fact that Ossiam determines the weight of the index components at each rebalancing date and acts as asset manager, Ossiam has retained an unaffiliated third party to calculate and publish the index, namely S&P.

[4] According to calculations performed by Ossiam on 28/09/12 based on backtest data provided by STOXX Ltd (for data before 14/06/2011 for iSTOXX™ Europe Minimum Variance NR index), Standard & Poor’s (for data before 06/06/2011 for Ossiam US Minimum Variance NR index). Backtested performance results are purely hypothetical and do not represent the performance of actual trading using client assets, but are achieved by means of the retroactive application of a model. This model assumes reinvestment of net dividends. Past performance is not a reliable indicator of future performance.

[5] The survey of U.K.-based institutional investors by Natixis Global Asset Management (NGAM), one of the 15 largest asset managers in the world based on assets under management, was released on September 25, 2012 by NGAM’s Durable Portfolio Construction Research Center. The online survey of 30 institutional investors in the United Kingdom was conducted by OnResearch in June-July, 2012. Institutional investors surveyed manage or oversee corporate pensions, public/government pensions, fund of funds, sovereign wealth funds, insurance reserves/liabilities, and/or endowments/foundations. The median asset level managed by U.K.-based respondents was approximately £75billion. The U.K. survey is part of a larger global study of 482 institutional investors in 13 countries in Asia, Europe and the Middle East, as well as the U.S. A copy of the global survey highlights is available at



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