Find here the latest KIIDs and prospectus as well as annual and semi-annual reports.

Voting policy

Ossiam's Voting Policy is available at the bottom of this page. This policy describes the conditions under which Ossiam plans to exercise the voting rights granted by the holding of the securities in the funds it manages. The 2019 Annual Report on Voting Rights is also available on this page.

Download the voting policy

Download the 2019 annual report on voting rights

Compensation policy

Ossiam has designed and implemented a compensation policy that is consistent with, and promotes, sound and effective risk management, based on its business model that by its nature does not encourage excessive risk taking which would be inconsistent with the risk profile of the UCITS managed by Ossiam. If and where Ossiam identifies those of its staff members whose professional activity has a material impact on the risk profiles of the Funds, it ensures that these staff members comply with the compensation policy. The compensation policy integrates governance, a pay structure that is balanced between fixed and variable components, and risk and long-term performance alignment rules. These alignment rules are designed to be consistent with the interests of Ossiam, the UCITS it manages and the investors, with respect to such considerations as business strategy, objectives, values and interests, and include measures to avoid conflicts of interest. Ossiam ensures that the calculation of a part of the performance-based compensation may be differed over a three year period and subject to the compliance with the risk taking policy of the company. The details of the current compensation policy is available below.

Download the compensation policy

Personal data protection policy

The policy defines the terms and conditions for the processing of personal data by Ossiam.

In case of question/inquiry, you can contact Ossiam Data Protection Officer (DPO) (dpo@ossiam.com)

Download the personal data protection policy

Responsible investment and stewardship policy

Ossiam is committed to being a responsible investor and considering environmental, social and governance (ESG) matters within its investment process. Our responsible investment approach encompasses the beliefs, standards, procedures and activities through which we fulfil our responsibility to our clients as an integral part of managing their assets. Our investment approach and the business processes which put it into operation prioritise high standards of stewardship, clear accountability, striving for best practice and compliance with regulatory standards.

Downloand the responsible and stewardship policy

Complaints management policy

General principles

Ossiam has established a complaints management system to deal with customer complaints in an efficient, transparent, and harmonised manner, in accordance with applicable regulations.

Access to the Complaints Service is free of charge and customers may file their complaint in either (i) French, English or (ii) the official language or one of the official languages of the Member State in which the UCITS is marketed or in which the service is provided.

Definition

The customer complaint is the expression (or manifestation) of a dissatisfaction  that a customer attributes to an organisation (company, ...) and which he asks for treatment (and non-recurrence). It presents financial consequences (potential or proven) or a risk of image or reputation, a claim for compensation or consequent payment for non-compliance with a legal or regulatory obligation. A claim is made with Ossiam when:

• The shareholder dissatisfied with a product managed by Ossiam appeals a decision made by the management company;
• The client directly refers the matter to a person with whom he is not in direct operational contact (Chairman, Chief Executive Officer, Risk Director, Compliance Officer, etc.).

Handling of complaints through Ossiam

The complaint can be made by mail, telephone or e-mail, or with the customer's usual contact person. Complaints by mail should be addressed to: Ossiam - Commercial Department, 80 Avenue de la Grande Armée - 75017 Paris. Complaints made by telephone are recorded on the telephone extensions of the members of the sales team. Complaints by e-mail should be sent to the following address: info@ossiam.com.

Complaints processing times

Ossiam is committed to:

• Acknowledging receipt of all claims it receives within a maximum period of 10 days, except in cases where the response can be made within this period;
• Responding to complaints within a maximum period of 2 months from the date of receipt by Ossiam;
• Keeping the Client informed if this deadline cannot be met due to special circumstances affecting the processing of the complaint and justifying the failure to meet the specified deadline.

Commission de Surveillance du Secteur Financier

The Commission de Surveillance du Secteur Financier is competent to receive complaints from customers (natural or legal persons) of the professionals subject to its supervision and to act as an intermediary in order to seek an amicable settlement of these complaints.

The opening of a complaint resolution procedure with the CSSF is subject to prerequisite that you can find on the following link : https://www.cssf.lu/en/customer-complaints/

You can contact the Commission de Surveillance du Secteur Financier by mail at the following address :

Commission de Surveillance du Secteur Financier

Département Juridique CC
283, route d’Arlon
L-2991 Luxembourg

You can access an online form on the website of CSSF https://reclamations.apps.cssf.lu/index.html?language=en

In the below table, you will find the latest rebalancing reports of the indices/strategy that Ossiam ETFs replicate.

The below reports detail the Brinson's performance attribution of the indices/strategies replicated by Ossiam ETF versus their benchmark over several periods of time.

Alpha: A measure of performance on a risk-adjusted basis. Percentage by which the portfolio or smart beta index outperforms (adjusted for risk) the comparable market capitalization weighted index from which the stocks are picked.

Asset allocation: The breakdown of the investments of a portfolio among various asset classes (such as equities, bonds, money market instruments, etc.), built in order to optimize the risk/return ratio of the investor's portfolio, in light of his or her financial situation, investment objective, investment horizon and appetite for risk.

Benchmark: A reference used as a comparison to determine the returns and risk of a portfolio. The benchmark may be an index or a combination of several reference indices.

Beta: The Beta of an investment indicates whether it tends to evolve in the same direction as the market, and in what proportion. Thus, the beta coefficient measures the sensitivity of a portfolio or share to market movements or an index.

Bid/Ask: Bid - Purchase price given or displayed by a market maker on an exchange (or over-the-counter), which corresponds to the sale price for the end investor. Ask - Sale price given or displayed by a market maker on an exchange (or over-the-counter), which corresponds to the purchase price for the end investor. There is usually a difference between the bid price and the ask price for an asset on the order book. This difference is called the spread and varies from one ETF to another. It tends to increase when the volumes being traded are low. One of its drivers is the liquidity of the underlying.

CAPE: CAPE - Cyclically Adjusted Price Earnings. The CAPE ratio is the PER adjusted for cyclical factors. It relates the share price to corporate earnings over the past ten years. Compared to the standard PER, it eliminates short-term fluctuations in earnings, which can distort the picture. Relative CAPE - CAPE standardized to make individual sectors comparable. It is defined as the CAPE® ratio divided by its median in past years. A Relative CAPE® ratio of 1 shows that the current valuation is in line with the long-term average, while figures lower (resp. higher) than 1 point to the sector’s possible undervaluation (resp. overvaluation).

Correlation: Measure for the dependence of the performance of two securities, indices or asset classes on each other. The correlation can be between -1 and 1, whereby 1 means they perform exactly in parallel, -1 that they perform in exactly opposite directions. The closer to 0 the correlation, the more independent the two performances are.

CPPI: Constance Proportion Portfolio Insurance, a method of portfolio insurance in which the investor sets a floor on the currency value of his or her portfolio, then structures asset allocation around that decision. The two asset classes used in CPPI are a risky asset (usually equities or mutual funds), and a riskless asset of either cash, equivalents or Treasury bonds. The percentage allocated to each depends on the "cushion" value, defined as (current portfolio value – floor value), and a multiplier coefficient, where a higher number denotes a more aggressive strategy.

Diversification: Portfolio constrction reducing the exposure to the risk of capital loss by investing in uncorrelated assets at the same time. Diversification therefore consists in distributing an investment among different business sectors, asset classes, geographic regions, etc.

Diversification indices: Indices that focus on broader diversification by an alternative weighting of the securities in the index, for example by weighting all the securities equally.

Gain: Gain generated on the difference between the purchase price of an asset and its subsequent sale price (exclusive of charges and fees paid in connection with the purchase and sale of an asset).

ESG:  ESG integration consists of integrating Environmental, Social and Governance (ESG) criteria into the management of investments.

ETF: Exchange Traded Fund that tracks an index. ETFs passively mirror an index, without any active management being involved. Units of ETFs are traded on the exchanges like equities.

Fundamental indices: Indices weighted by fundamental criteria such as dividend yield, price/earnings ratio or other value criteria.

Hedging: Strategy whose objective is to totally or partially offset the risk associated with an investment by making a second transaction that combines long and/or short positions in transferable securities, precisely in order to reduce the risk of the first position. For example, the risk of a long-term position in equities may be offset by the purchase of put options. Thus, investors may limit the impact of a decline in the prices in their portfolio.

Index: Instrument to measure capital markets’ performance. Indices exist for various asset classes (shares, bonds, commodities), countries and regions, and sectors. An index brings together the securities representative of the market to be tracked in line with fixed rules.

Index based on market capitalization: Traditional stock indices where weightings of the individual shares are proportional to their market capitalizations, meaning the share prices multiplied by the number of shares issued, adjusted for free-float. Most of the main stock market indices are compiled using this method.

ISIN (International Securities Identification Number): This unique international identifier is used to distinguish financial instruments, such as shares, bonds, funds, etc. The ISIN code is a unique international alphanumeric code of 12 characters (of which the first two letters identify the country of issue of the security, e.g. FR for France). Shares always keep the same ISIN codes, even if they are traded in different currencies or listed on different markets. Each ETF has its own ISIN code.

KIID (Key Investor Information Document): The KIID is a regulatory document, standardized on a European level, providing investors with key information on a fund in terms of its objectives, risks, performance and costs, so that, when making investment decisions, investors are in a position to understand the nature of the fund and the risks associated with it. This document must be provided to the investor prior to any subscription. Introduced by the European Directive 2009/65/EC of 13 July 2009, this document replaces the simplified prospectus.

Loss: Loss resulting from the difference between the original acquisition price of an asset and its subsequent sale price.

Market Maker or Liquidity provider: A financial institution whose role is to facilitate the trading of financial instruments, including ETFs. During trading hours, the market maker provides quotations for the product on the relevant stock exchange and places bid/offer orders continuously, so that investors can trade their financial instruments (such as ETFs) at any time.

Maximum Drawdown: The maximum drawdown, or "maximum successive loss", is an indicator of the risk of a portfolio chosen on the basis of a certain strategy. The maximum drawdown measures the largest decrease in the value of a portfolio. Precisely, it corresponds to the historical maximum loss incurred by an investor who bought the highest and resold at the lowest, for a fixed period.

NAV / NAV per Share: The Net Asset Value corresponds to the total value of the fund assets. The NAV per Share is the NAV divided by the number of shares in the fund.

OTC – Over-the-counter: A trade which takes place off the exchange directly between two identified parties (counterparties). On an OTC market, market makers seek to provide liquidity for the various assets for which they propose bid and offer prices.

PER (Price/Earnings Ratio) : The PER divides the share price of a company to its earnings per share. The PER serves as a key indicator for how shares are valued. The lower the PER, the more favorably the share is priced on the stock market.

Physical replication: Physical replication consists in holding the securities comprising the replicated index. This replication may be “perfect”, in this case the fund holds all the securities of the index and in the same proportions as in the index. It may also be done through "sampling", in this case the fund holds only part of the securities of the index selected in order to offer performance as close as possible to the performance of the index.

Price return: A “Price Return” index tracks the evolution of prices of its component equities or bonds, without including dividends that may be paid by such equities or coupons in the case of bonds.

Risk-based indices: Indices that use risk measures, such as volatility, to allocate the stocks. In general, risk-based indices seek to systematically reduce volatility compared to a classic index. Examples of risk based indices are minimum variance or risk parity indices.

Share class: Some funds and ETFs have multiple share classes. These may differ by the currency in which they are denominated, the distribution or capitalization of dividends, their costs or minimum tradeable size. Each share class has a unique specific ISIN code.

Sharpe ratio: Indicator for the portfolio’s profitability in relation to the risk taken. Developed by US economist William F. Sharpe, the figure presents the return in excess of a risk-free interest rate divided by the portfolio’s volatility.

Smart beta: Rule-based investment strategies that use an alternative weighting for the securities covered by an index to deliver better risk-adjusted results than the underlying traditional index.

Spread: The difference between the Bid and Ask price of an asset. The spread generally varies depending on supply and demand for a particular asset and on the volume traded (liquidity).

Stock market price: The price of an asset as determined by levels of supply and demand on the stock market. Please note that the stock market price of an ETF may differ from its net asset value (NAV). It will, however, fall within a range based on the indicative Net Asset Value.

Swap (forward swap agreement): An OTC swap agreement between two parties in relation to an exchange to be executed at a future date and at a pre-determined or determinable price. The expiry dates, delivery dates, quantities and contractual terms and conditions for each agreement are standardized. ETFs using synthetic replication methods use swaps: they swap with a counterparty the performance of the assets they hold for the performance of the benchmark index. The mark-to-market value of a swap is equivalent to the amount owed to the ETF by the counterparty (if the value is positive) or owed to the counterparty by the ETF (if the value is negative). In the absence of collateral, the mark-to-market value of the swap represents the counterparty risk. For ETFs, the level of exposure to the swap is subject to regulations, and limited to 10% of the assets per counterparty in the case of UCITS ETFs.

Swap counterparty: Entity with which the Total Return Swap is entered into.

Synthetic replication: For ETFs managed in synthetic replication, the replication of the index is generated by a Total Return Swap, i.e., a swap under which an investment bank (the counterparty) exchanges the performance of the index for another performance. In synthetic replication, there are two types of structures: - Unfunded structures, in which the fund uses its liquidity (generated for subscriptions in the fund) to purchase a basket of securities that it owns and whose performance is exchanged for the performance of the index in accordance with the provisions of the Total Return Swap; - Funded structures in which the fund transfers its cash to the counterparty, in exchange for the final value of the index at swap maturity, in accordance with the provisions of the Total Return Swap.

TER: The TER (Total Expense Ratio) is the sum of annual total management and operating fees billed to a fund relative to its net assets. For OSSIAM ETF funds (the “Funds”), the TER corresponds to the ongoing fees mentioned in the KIID. The ongoing fees represent the expenses deducted from the fund during the course of a year.

Total Return: In the case of “Total Return” indices, dividends paid by the equities (or coupons in the case of bonds) comprising the index are reinvested into the index, unlike a “Price Return” index. In general, an expression referring to the total profitability of an investment that may be expected, i.e., the sum of the capital gain related to selling the securities, and the dividends (or coupons) collected.

Tracking error: A measure of how closely an ETF follows the index to which it is benchmarked. The tracking error shows how the ETF mirrors the index. The lower the figure, the more exact the tracking.

UCITS (Undertakings for Collective Investment in Transferable Securities): European directive aimed at further harmonizing the European financial markets. It proposes a harmonized regulatory framework for European funds and particularly with respect to: 

- rules relating to the organization of management companies managing funds,

- eligibility and composition of assets, risk diversification

- disclosures

- authorization for marketing within EU territory, etc.

Various directives have been successively implemented in the European Union.

Value trap: A well known challenge when investing in a value strategy. It refers to the risk taken by investors who opt for ostensibly favorably priced equities or sectors that then take a very long time to bounce back, if they do so at all.

Volatility: A measure of the magnitude of the fluctuations for a security or index across a certain period of time, measured as the standard deviation of returns. It serves as a measure of an investment’s risk.