Ossiam, the smart beta specialist and affiliate of Natixis Global Asset Management, has announced today changes to the benchmark of its Ossiam US Minimum Variance NR ETF to include ESG screening....
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Bruno Poulin, CEO of Ossiam
As a result, the name of the ETF will change to Ossiam US Minimum Variance ESG NR. In addition to the change in the index methodology, the fund also switches from synthetic to physical replication. The fund now replicates the US ESG Minimum Variance NR index. This index is a combination of a minimum variance strategy applied to US equities with an ESG filter to select the best-rated stocks according to ESG* criteria.
The US ESG Minimum Variance index reflects the performance of a dynamic selection of 90% of the most liquid stocks satisfying ESG criteria from the Solactive US Large Cap Index, weighted with the objective of minimising the risk of the total portfolio. The Solactive US Large Cap Index tracks the performance of approximately 500 leading companies in major industries in the United States of America. The ESG data are provided by Sustainalytics and the US ESG Minimum Variance Index NR is calculated and published by Solactive, the index provider, on a real-time and end-of-day basis.
Bruno Poulin, CEO of Ossiam, commented on the change, saying, “We have adapted our already successful fund to take into account preferences of existing and new investors. We are pleased to see the investment market moving to a point where accounting for ESG factors will be the standard for long-term investment. This is consistent with our ethos of high ethical standards in the funds we develop and how we conduct business.”
Ossiam has made the appropriate regulatory notification for this change. The trading codes for the UCITS ETF 1C (USD) share class listed on the London Stock Exchange (ISIN: LU0599612412; Ticker: USMV) as well as the TER (0.65% per annum) remain as before.
By end of May 2017, the total assets under management of the Ossiam US Minimum Variance NR ETF were €328m (GBP285m).
Ossiam is a signatory of the UN-backed Principles for Responsible Investment (PRI).