Ossiam has announced the launch of its latest actively-managed ETF, the Ossiam ESG Shiller Barclays CAPE Global Sector UCITS ETF, which has been listed on Xetra and is set to be listed on other European stock exchanges shortly.
Ossiam writes that like its non-ESG counterpart launched in January – the Ossiam Shiller Barclays CAPE Global Sector UCITS ETF – the new fund aims to outperform global equity markets through a selection of developed market equities drawn from an initial universe of the MSCI World index; primarily large and mid-cap companies that are part of the Shiller Barclays CAPE Global Sector Net TR Index. The index is constructed on the basis of the cyclically-adjusted price/earnings ratio (CAPE), developed by Professor Robert Shiller.
In addition, the strategy includes an ESG filter stage that involves a combination of selection of best-in-class ESG-rated companies and exclusion of companies in breach of UN Global Compact principles, or involved in controversial weapons, tobacco or the coal industry.
Ossiam writes that it has already achieved success in combining the Ossiam Shiller Barclays CAPE Sector Value strategy with an ESG stage as demonstrated by the Ossiam ESG Low Carbon Shiller Barclays CAPE US Sector UCITS ETF, which passed its five-year anniversary on April 5th and had AUM of USD1.4 billion as of end of May 2023. The entire Ossiam Shiller Barclays range managed USD4.6 billion in US, European and global equities as of 31st May.
Bruno Poulin, CEO of Ossiam, says: “By launching an ESG version of the global equities fund, we aim to offer investors with a responsible investment mandate the proven advantages of the Shiller strategy. It combines an investment roadmap to dynamically select attractive sectors with ESG filters to invest in companies with the highest sustainable profile.”
The ETF is a sub-fund of an Ireland-domiciled ICAV using physical replication and is regulated by the Central Bank of Ireland. It has a total expense ratio (TER) of 0.75 per cent and is available in two accumulating share classes denominated in EUR and USD.
