Ossiam, an affiliate of Natixis Investment Managers that specialises in quantitative asset management, has won the innovation award at the L’Agefi European ETF Awards for its new machine learning approach to ESG investing. The event took place on 15 March 2019 in Paris.

L’Agefi is one of France’s leading financial trade publications and has worked with ETF analysis platform TrackInsight on the awards and methodology. The innovation awards recognise the best offerings of listed index funds in Europe in terms of both the product’s innovation and the value that innovation adds for the investor. Two prizes were awarded: Ossiam won in equities; Invesco in bonds.

Ossiam developed its ‘innovative’ ESG machine learning strategy in 2018. It makes use of the latest machine learning techniques to screen out companies that do not comply with state-of-the-art ESG policies. It’s a strategy that may help to create a portfolio of stocks that scores better than the benchmark from an ESG standpoint, and may have a higher probability of financial outperformance, with no controversial activities and a low carbon footprint.

Discussing the reasons behind adding the element of machine learning to ESG investing, Carmine De Franco, Head of Fundamental Research at Ossiam, explained: “At Ossiam, we’re deeply convinced that there is a link between ESG and overall performance of companies. The point is that this link is quite difficult to capture because it's very complex – and there’s a huge amount of ESG data to sift through, which, like all data, is growing at pace.

You can’t just sort companies on the ESG ratings and say that the best-rated company will perform the best. So, you need something much more powerful that is able to extract information from the data, something that is very useful to assess the strengths and the weaknesses of each company.

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Reference to a ranking and/or a price does not indicate the future performance of the strategy or the fund manager.
Past performance is not a reliable indicator of current or future performance.

About Ossiam

Ossiam is a specialist asset manager that targets investment solutions tailored to clients' specific needs. It uses rule-based strategies, developed and managed in-house, which make use of transparent and liquid vehicles, including exchange-traded funds (ETFs). Ossiam funds use alternatively weighted indexes, also known as smart beta, applied to a range of financial asset classes.

Ossiam
An affiliate of Natixis Investment Managers
French société anonyme governed by an executive
board and a supervisory board 
with a share capital of 261 240 €
RCS Paris – 512 855 958
6 place de la Madeleine, 75008 Paris
www.ossiam.com

Natixis Investment Managers 
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
75013 Paris
www.im.natixis.com

This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.