Ossiam expands low-volatility range with launch of Emerging Markets Minimum Variance ETF

Mar 19th, 2012 | By | Category: Alternatives / Multi-Asset

Ossiam, a specialist ETF provider and an affiliate of Natixis Global Asset Management, has announced the launch of the Ossiam Emerging Markets Minimum Variance NR ETF. The fund will list on the London, Frankfurt, Milan and Paris stock exchanges.

Ossiam expands low-volatility range with Emerging Markets Minimum Variance ETF

Ossiam has expanded its low-volatility suite of ETFs with the launch of the Ossiam Emerging Markets Minimum Variance ETF. The fund provides exposure to a range of emerging markets, including China (pictured), but aims to do so with lower volatility.

Bruno Poulin, CEO of Ossiam, commented: “With the launch of our latest fund, Ossiam is providing an additional solution for investors seeking to build a global equity allocation. This new fund is targeted at investors who want exposure to emerging markets growth as part of their portfolio, but are wary of high volatility and risk.”

The fund will track a new index initiated by the Ossiam research team, the Ossiam Emerging Markets Minimum Variance Index (Bloomberg: OEMMVNR), calculated and published in real time by S&P.

The index includes a dynamic selection of emerging market stocks, selected among the 400 most liquid stocks from the S&P IFCI Index.  The S&P/IFCI Index is a market capitalisation index which tracks the performance of major companies (over 1800 stocks and ADRs) in 20 global emerging market countries.

The Ossiam Emerging Markets Minimum Variance Index is weighted with the intention to minimise the volatility of the total portfolio. On average, the volatility of the Ossiam Emerging Markets Minimum Variance Index has proved at least 30% lower than the S&P IFCI index, with a significant reduction in drawdowns.

The launch adds to Ossiam’s existing range of minimum variance products designed to deliver equity exposure while reducing overall portfolio risk. The new ETF will offer access to a key market segment, emerging markets, with reduced risk and the aim of providing investors with further diversification opportunities.

Hervé Guinamant, President and CEO of NGAM  international  distribution, the fund’s distributor, said: “We are launching the latest Ossiam ETF  in a context of growing interest among investors for emerging markets, which have experienced more than $14bn of net new assets so far in 2012.”

The fund has a Total Expense Ratio (TER) of 0.75% per annum. Regular dividends received on a stock present in the index are reinvested in the index on a net basis

The fund will be listed on the Frankfurt, Milan, Paris and London stock exchanges in the following order:

– 19 March, 2012 on Xetra in Frankfurt

– 19 March, 2012 on Borsa Italiana in Milan

– 22 March, 2012 on NYSE Euronext Paris

– 26 March, 2012 on the London Stock Exchange

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