DJ OSSIAM EMERGING MARKETS MINIMUM VARIANCE NR: Notice to shareholders
OSSIAM EMERGING MARKETS MINIMUM VARIANCE NR UCITS ETF (DEMV)
OSSIAM EMERGING MARKETS MINIMUM VARIANCE NR: Notice to shareholders
26-Jul-2021 / 07:12 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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OSSIAM LUX
Société Anonyme qualifying as a Société d'Investissement à Capital Variable
Registered Office: 49 Avenue J.F. Kennedy - L-1855 Luxembourg
R.C.S. Luxembourg B 160071
(the "Company")
Luxembourg, 26 July 2021
Notice to shareholders of the Company
Dear Shareholder,
The board of directors of the Company (the "Board") would like to inform you that the following amendments will be made
to the prospectus of the Company:
1. Amendment to the investment objective and policy of OSSIAM EMERGING MARKETS MINIMUM VARIANCE NR (the "Sub-Fund")
Please note that the Sub-Fund, which is currently a passively managed index tracking ETF sub-fund will become an
actively managed ETF sub-fund promoting ESG characteristics in relation to the investments with effect as from 27
August 2021 (the "Effective Date").
Please find below a table setting out the current investment policy section and the updated investment policy of the
Sub-Fund:
Current investment objective and policy (effective until 26 August New investment objective policy (effective as from
2021) 27 August 2021) (the "New Investment Objective and
Policy")
Investment objective:
The objective of the Fund is to deliver the net
total return of a selection of equities which are
listed on emerging markets while consistently
integrating environmental, social and governance
("ESG") matters.
The Fund is an actively managed UCITS ETF.
Investment policy:
In order to achieve its investment objective, the
Fund will primarily invest in all or part of the
equity securities and depositary receipts which
are selected by applying the investment strategy
described below. Alternatively, the Management
Investment objective: Company may choose an adequate proxy, including
but not limited to depositary receipts, futures,
The investment objective of OSSIAM EMERGING MARKETS MINIMUM VARIANCE depositary receipts, UCIs compliant with Article
NR fund (the "Fund") is to replicate, before the Fund's fees and 41(1)(e) of the Law of 17 December 2010 relating
expenses, the performance of the Ossiam Emerging Markets Minimum to undertakings for collective investment, as
Variance Index Net Return USD closing level. amended from time to time (up to 10%).
The Ossiam Emerging Markets Minimum Variance Index Net Return USD The Fund will be invested for a minimum of 60% in
(the "Index") is a total return index (net dividends reinvested) equities or rights issued by companies which are
expressed in USD, calculated and published by S&P Dow Jones Indices listed in emerging markets (including China and
LLC (the "Index Provider") specifically for Ossiam as a customiszed Russia). The Fund will also invest in Depositary
index. For a detailed description of the Index, see section Receipts.
"Description of the Index".
The anticipated level of tracking error in normal conditions is 1%
over a one-year period. In addition, and on an ancillary basis, the Fund
may use other derivatives for hedging and
investment purposes, as described under "Use of
Derivatives, Special Investment and Hedging
Investment policy: Techniques" in the Prospectus.
In order to achieve its investment objective, the Fund will
primarily use Index swaps with the objective of gaining exposure to
the Index through synthetic replication. In that case, the Fund will The Reference Currency of the Fund is the US
invest in a portfolio of assets, the performance of which will be Dollar.
exchanged against the performance of the Index through swap
agreements with a swap counterparty. This method implies a
counterparty risk as described in the below Risk and Reward Profile.
The portfolio of assets held by the Fund shall be permanently The Fund is actively managed and uses its
invested for a minimum of 60% in equities or rights issued by benchmark, the Solactive GBS Emerging Markets (the
companies having their registered office in OECD countries. The net "Benchmark") for asset allocation and performance
asset value per Share of the Fund will therefore increase (or comparison purposes.
decrease) according to the evolution of the Index. The counterparty
to the swaps will be a first- class financial institution that
specializses in this type of transaction. The Fund may also enter
into multiple swap agreements with multiple swap counterparties with It is foreseen that a significant portion of the
the same characteristics as previously described. In case of Fund's portfolio will be components of the
synthetic replication, an index license contract may exist between Benchmark. However, the portfolio's weightings may
the swap counterparty (ies) and the index provider; therefore, deviate significantly from those of the Benchmark.
licensing fees may be included in the swap costs.
Investment strategy:
Alternatively, the Fund may invest in all or part of the equity
securities comprised in the Index. The Fund's investment universe consists of the
securities from the Benchmark (the "Investment
Universe").
The Fund may, with due regard to the best interest of its
Shareholders, decide to switch partially or totally from one of the
above- described policies to the other (i.e. synthetic replication In order to achieve its investment objective, the
vs. physical replication). Management Company uses its proprietary
quantitative model which implements a rules-based
approach that aims to assess the securities from
the Investment Universe.
In addition, and on an ancillary basis, the Fund may use other
derivatives for hedging and investment purposes and enter into
securities lending and borrowing transactions as well as repurchase
agreement transactions, as described under "Use of Derivatives, The model uses ESG data provided by leading data
Special Investment and Hedging Techniques" in the Prospectus. providers, such as Sustainalytics or Trucost (the
"ESG Providers") as raw input to the "Normative
and Exclusion filter" to exclude securities that
are not aligned with the ESG and human rights
The investment objective of the Fund is to replicate an index which objectives of the Fund (as further detailed in the
is based on a quantitative model implementing a rules-based Transparency Code available on the Management
approach. As a result, the Management Company does not undertake any Company's website www.ossiam.com):
assessment of investments and, in particular, does not consider the
adverse impact of investment decisions on sustainability factors as - Are involved in the controversial weapon
defined in Regulation (EU) 2019/2088 of the European Parliament and business (eg, cluster munitions or chemical
of the Council of 27 November 2019 on sustainability-related weapons);
disclosures in the financial services sector (the "SFDR").
- Undergo high-risk controversies;
- Are not compliant with the Ten Principles of the
The Reference Currency of the Fund is the US Dollar. UN Global Compact;
- Have significant operations in the Tobacco or
Thermal Coal industries; or
Description of the Index:
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