Paris-based ETF provider and smart beta solutions specialist Ossiam, an affiliate of Natixis Global Asset Management (NGAM), has signed a cooperation agreement with China Securities Index Company (CSI).
Ossiam will provide expertise in minimum variance index construction to CSI, the largest Chinese index provider, which is developing a minimum variance index based on CSI’s own CSI 300 benchmark.
CSI 300 aims to reflect the price fluctuation and performance of the China A shares market. It is widely used as a performance benchmark and a basis for indexing and derivative products. The first index future contract in mainland China is based on CSI 300.
CSI has selected Ossiam to provide guidance and research in the design of the new CSI minimum variance index.
The Ossiam research team has extensive experience in the design and management of rule-based, transparent minimum variance portfolios based on various equity investment universes, including those in Europe, the US, global and emerging markets.
Ossiam manages more than USD1.29 billion in minimum variance strategies in exchange-traded funds (ETFs) and segregated mandates.
Ma Zhigang, chief executive officer of CSI, says: “CSI calculates nearly 2000 end of day and real time indices covering equity, fixed income, commodities and other alternative assets in mainland China, greater China and other global markets. The cooperation with Ossiam helps to provide more valuable solutions to market participants.”
Bruno Poulin, chief executive of Ossiam, says: “We are delighted to work with CSI on this exciting project. As the first asset manager in the world to launch minimum variance ETFs in 2011, we have a track record that strongly backs our approach. We believe rigour, consistency and transparency of our own minimum variance process were the reasons why CSI selected Ossiam as a partner to assist in the construction of their minimum variance index. This cooperation also shows our ability to innovate and partner on the global stage, sharing our strengths and capabilities through cooperation with a leading index provider in Asia.”