Ossiam Shiller Barclays CAPE Global Sector Value UCITS ETF 1A-USD

Issuer: Ossiam

Asset Class: Equity

TER: 70bps

Trading Currency: USD

Pays Income: False

Listing Date: 16 Feb 2023

Ticker: 5OGU

ISIN: LU2555926372

This fund offers a systematic, value-driven approach to global equity investing by focusing on undervalued market sectors. It employs the well-regarded CAPE® (Cyclically Adjusted Price-to-Earnings) ratio, pioneered by Nobel laureate Robert Shiller, to identify sectors that are attractively priced relative to their long-term earnings. The strategy systematically selects the five most undervalued sectors from a universe of global developed market equities. This disciplined methodology aims to harness the long-term potential of the value premium by investing in areas of the market that may be temporarily out of favor but possess solid underlying fundamentals, offering a distinct alternative to conventional market-capitalization-weighted strategies.

The portfolio construction involves more than just a simple value screen. After identifying the most undervalued sectors, the strategy incorporates a momentum filter to avoid potential 'value traps'—sectors that appear cheap but continue to underperform due to persistent negative trends. By excluding the sector with the worst 12-month momentum from the selected value basket, the methodology adds a layer of risk management. The resulting portfolio is then typically equally weighted across the chosen sectors and is rebalanced on a monthly basis. This dynamic allocation allows the fund to adapt to evolving market conditions and consistently capture the most compelling sector-level value opportunities across the globe.

This investment is suitable for those seeking to enhance their portfolio with a rules-based, factor-oriented global equity allocation. It appeals to investors who believe in the principle of mean reversion and the long-term outperformance potential of value investing. By providing exposure to a basket of globally diversified, undervalued sectors, it can serve as a core strategic holding or a tactical satellite position. Its unique combination of value and momentum factors aims to deliver long-term capital growth by systematically rotating into the most promising segments of the international stock market.