{"id":28106,"date":"2013-04-04T23:53:05","date_gmt":"2013-04-04T21:53:05","guid":{"rendered":"http:\/\/beta.next-finance.net\/produit\/istoxx-europe-minimum-variance-2\/"},"modified":"2019-12-30T22:35:03","modified_gmt":"2019-12-30T21:35:03","slug":"istoxx-europe-minimum-variance-2","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/produit\/istoxx-europe-minimum-variance-2\/","title":{"rendered":"iSTOXX\u2122 Europe Minimum Variance"},"content":{"rendered":"

Ossiam Minimum Variance strategy aims to provide investors exposure to a well-diversi?ed portfolio. The approach initiated by Ossiam\u2019s
\nresearch and management team intends to obtain an optimized portfolio that includes a selection of stocks where volatility is among
\nthe lowest in the investment universe, and historical correlations are moderate enough to allow for risk reduction. <\/p>\n

The Fund tracks the performance of the Ossiam Minimum Variance strategy applied to a portfolio of European stocks.
\nThe investment process is embedded in the iSTOXX\u2122 Europe Minimum Variance Index NR (\u201cthe Index\u201d[[iSTOXX\u2122 Europe Minimum Variance Index NR is calculated and published on a real time and end-of-day basis by STOXX]]). Due to its exposure to equity markets, the Fund may experience significant volatility<\/p>\n

The approach is systematic (not discretionary)<\/strong> \u2013 It concentrates on the risk pro?le \u2013 shares are selected when the following risks have been measured: volatility, correlations, liquidity, portfolio concentration (individual stocks and sectors)<\/p>\n

The strategy captures the equity market performance while mitigating risk \u2013 low volatility (at least 30% lower than the Base Index)<\/strong>[[
\n For data before 14\/06\/2011 (launch date of the index), performance for the iSTOXX\u2122 Europe Minimum Variance Index reflects calculations performed by Ossiam based on backtest data provided by STOXX
\nLtd. Backtested performance results do not represent the performance of actual trading using client assets, but are achieved by means
\nof the retroactive application of a model. This model assumes reinvestment of net dividends. OSSIAM ETF iSTOXX\u00ae EUROPE MINIMUM VARIANCE NR is the investment vehicle that aims at replicating the iSTOXX\u2122 Europe Minimum Variance Index NR. OSSIAM ETF iSTOXX\u2122 EUROPE MINIMUM VARIANCE NR and vehicles replicating the STOXX\u00ae Europe 600 Index NR bear a total expense ratio (TER, composed for instance of management fees and other account expenses) and transaction costs that are not taken into account in the calculation of index performances. Due to differences of Total Expense Ratios, transaction costs and of tracking errors, actual performances of iSTOXX\u2122 Europe Minimum Variance Index NR and vehicles replicating the STOXX\u00ae Europe 600 Index Net Return might differ from those of their respective underlying indexes. Past performance is no guarantee for future returns and does not take into consideration any commissions charged for purchase, redemption or conversion of shares.]] and drawdown signi?cantly reduced in comparison to the Base Index<\/p>\n

Portfolio constituents are selected and weighted by a two-stage procedure<\/strong> that includes a liquidity ?lter and an optimization
\nprocess.<\/p>\n

\"shemas_armin.jpg\"<\/p>\n

On a monthly basis, the portfolio is adjusted (as described in the graph below) following the evolution of volatilities and correlations among the most liquid stocks of a determined investment universe, and the application of a set of risk management constraints. Those
\nconstraints include
\n– maximum exposures to a single stock (maximum weight per stock shall not exceed 4.5% of the value of the portfolio) and industrial sectors (maximum exposure to an industry sector shall not exceed 20% of the value of the portfolio).
\n– keeping the portfolio 100% invested in stocks (with no short positions)
\n– a diversi?cation target of no less than 50 constituents in the portfolio at all times<\/p>\n

Fund characteristics<\/h2>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Inception date<\/td>\n 21\/06\/2011<\/td>\n<\/tr>\n
ETF ISIN <\/td>\n LU0599612842 <\/td>\n<\/tr>\n
ETF ISIN <\/td>\n Equity <\/td>\n<\/tr>\n
Exposition <\/td>\n Europe <\/td>\n<\/tr>\n
TER[[Total Expense Ratio]] <\/td>\n 0,65% per year<\/td>\n<\/tr>\n
Investment policy \u2013 replication
\nmethodology <\/td>\n		 Swap based with a minimum of 75% in equities securities or rights issued by companies having their registered office
\nin the European Economic Area, excluding Liechtenstein.<\/td>\n<\/tr>\n
Minimum Investment <\/td>\n 1 unit <\/td>\n<\/tr>\n
NAV (15\/03\/2013) <\/td>\n 116,56 EUR <\/td>\n<\/tr>\n
AUM (15\/03\/2013) <\/td>\n 164,29M d\u2019EUR <\/td>\n<\/tr>\n
Dividend policy <\/td>\n Accumulating <\/td>\n<\/tr>\n
Eligible <\/td>\n PEA et assurance vie <\/td>\n<\/tr>\n
Management Company <\/td>\n NGAM S.A.<\/td>\n<\/tr>\n
Investment Manager <\/td>\n Ossiam <\/td>\n<\/tr>\n
Depositary and Administrative Agent <\/td>\n State Street Bank Luxembourg S.A.<\/td>\n<\/tr>\n
Custodian <\/td>\n State Street Bank Luxembourg S.A.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

RISK AND REWARD PROFILE OF OSSIAM ETF iSTOXX\u2122 EUROPE MINIMUM VARIANCE NR<\/h2>\n

\"minvar_risk.jpg\"
\nBased on the reconstituted history of the index, the Fund is ranked 6 on the synthetic risk and reward indicator scale. Due to its exposure to equity markets, the Fund may experience significant volatility, as expressed by its rank on the above scale. <\/p>\n

Historical data may not be a reliable indication for the future. The risk category shown is not guaranteed and may shift over time. There is no capital guarantee or protection on the value of the Fund. The lowest category does not mean \u201crisk free\u201d.<\/p>\n

Index Risk : The value of the Fund\u2019s Shares is linked to the Index, the value of which may rise or fall. Hence, investors should note that the value of their investment could fall as well as rise and they should accept that there is no guarantee that the underlying methodology
\nof the Index will indeed result in a return above any comparable investment strategy or that they will recover their initial investment.<\/p>\n

Derivative and counterparty risk : As a result of entering into swap(s) transaction(s), the Fund is subject to potential counterparty and issuer risk. In the event of insolvency or default of the counterparty or issuer, the Fund could suffer a loss. The value of the swap(s) transaction(s) may vary according to several factors such as (but not limited to) the level of the Index, the level of interest rates and the liquidity of the equity market.<\/p>\n

Further information regarding the
\nproducts is available on the Ossiam website www.ossiam.com.<\/em>