The Ossiam ETF Emerging Markets Minimum Variance NR Fund will track a new index initiated by the Ossiam research team, which includes a dynamic selection of EM stocks selected from the 400 most liquid stocks from the S&P IFCI Index.
The index used is weighted with the intention of minimising the volatility of the total portfolio and on average is at least 30% lower than the S&P IFCI index, which is a market cap index that tracks the performance of major companies in 20 EM countries.
Ossiam’s minimum variance product suite currently has three other funds, based on European, US and UK indices.
All the products are designed to optimise investors’ global asset allocation while reducing overall portfolio risk.
The first listings of the EM offering will be in Frankfurt and Milan on 19 March, with Paris and London listings following later that week.
Herve Guinamant, president and CEO of Natixis Global Asset Management, said: "We are launching the latest OSSIAM ETF in a context of growing interest among investors for emerging markets, which have experienced more than USD 14bn of net new assets so far in 2012. This makes the new product an excellent addition to our wide range of specialist investment solutions."
