Industry Updates

Ossiam shuts two ETFs on declining assets

Machine learning and commodity ETFs set to close

Theo Andrew

a close-up of a blue and red circuit board

Ossiam is closing its machine learning and risk-weighted enhanced commodity ETFs due to declining assets.

In separate shareholder notices, the firm said the Ossiam Risk Weighted Enhanced Commodity Ex Grains UCITS ETF (CRWE) was liquidating on 20 April and that it was seeking board approval to close the Ossiam World ESG Machine Learning UCITS ETF (OWLE).

The ETFs have been suffering from low or declining assets under management, Ossiam said.

OWLE has $30.5m assets under management while CRWE housed $12.2m.

Tristan Perret, co-head of investment management and research at Ossiam, said “a meaningful pipeline for OWLE was not expected in the future”.

He added Ossiam is looking to launch a new sub-fund “with a similar global exposure”.

Meanwhile, the firm’s board said CRWE has also seen low levels of demand.

“The board notes that the sub-fund has demonstrated small levels of demand and assets under management,” it said.

“Furthermore, the company is focusing on key areas of growth with the intention of bringing its sub-funds in line with the current and future investor demand with a view to better serving the need of shareholders.”

It is the latest set of closures by the French asset manager since it shut its low volatility FTSE 100 and emerging market ESG ETFs in June 2022.

In January, Ossiam expanded its Shiller range of ETFs with the launch of a global equity strategy. The synthetically-replicated Ossiam Shiller Barclays Cape Global Sector Value UCITS ETF (EUPA) listed across Europe with a total expense ratio (TER) of 0.65%.

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