Industry Updates

Ossiam shutters FTSE 100 and emerging markets ESG ETFs on low demand

Low assets and investor demand were blamed for the closure

Theo Andrew

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Smart beta specialist Ossiam has liquidated its low volatility FTSE 100 and emerging market ESG ETFs on low investor demand.

In a shareholder notice, the firm said both the £2m Ossiam FTSE 100 Minimum Variance UCITS ETF (UKMV) and the £10m Ossiam Emerging Markets ESG Low Carbon UCITS ETF (DEMV) will be shuttered on 22 June.

The last trading date of the ETFs on the primary market will take place on 15 June, the firm added.

DEMV is currently listed on Deutsche Boerse, SIX Swiss Exchange, Borsa Italiana, London Stock Exchange (LSE) and the Luxembourg Stock Exchange, while UKMV is currently listed on the LSE and the Luxembourg Stock Exchange.

“The ETFs have demonstrated small levels of demand and assets under management, while focusing on key areas of growth with the intention of bringing the sub-funds of the company in line with current and future investor demand for better serving the needs of shareholders,” Ossiam wrote.

DEMV, which tracks the Ossiam index of the same name, has a total expense ratio (TER) of 0.75% and has returned -9.5% over three years.

The ETF aims to reduce the volatility and the drawdown of the portfolio while promoting environmental and social characteristics.

Meanwhile, UKMV tracks the FTSE 100 Minimum Variance index and has a TER of 0.15% and has returned 4.3% over three years.

Earlier this year, the firm made a raft of senior hires across the business as it looks to integrate ESG further into its investment solutions.

In January it also added an ESG filter to its European equity equal weight ETF to reflect investor demand.

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