Ossiam, an ETF fund manager known for its emphasis on quantitative investment strategies, has launched the Ossiam Serenity USD Fund in response to investor demand for innovative cash management solutions.
Building on the success of the Ossiam Serenity Euro ETF launched in December 2024 and driven by increasing investor demand, Ossiam is expanding its Serenity range with the introduction of a USD fund.
This new ETF is designed to provide enhanced exposure to the Secured Overnight Financing Rate (SOFR) through synthetic replication, offering an alternative to traditional cash strategies by eliminating duration and credit risks while maintaining a similar liquidity profile.
The Secured Overnight Financing Rate (SOFR) is crucial because it serves as a key benchmark interest rate for the U.S. dollar, replacing the widely used but flawed LIBOR. SOFR is based on actual transactions in the U.S. Treasury repurchase market, making it a more transparent and reliable indicator of borrowing costs than LIBOR, which relied on bank submissions and was susceptible to manipulation.
SOFR has become the preferred alternative to LIBOR for U.S. dollar-denominated financial products. This transition is crucial for maintaining stability and confidence in financial markets.
Enhanced and diversified exposure to short term rates
Bruno Poulin, Chief Executive Officer at Ossiam, said: “Building on the initial interest in the Ossiam Serenity Euro Fund, the launch of the USD version is a natural extension of our product range. This new offering responds to strong investor interest in enhanced and diversified exposure to short term rates, leveraging our expertise in synthetic replication.”
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The introduction of the Serenity USD Fund reinforces Ossiam’s position as a leader in innovative, rules-based investment solutions, offering investors a differentiated approach to cash management with enhanced efficiency and transparency.
Ossiam said it will continue to expand its suite of systematic investment solutions, integrating research and portfolio construction techniques to address evolving market conditions and investor needs.
Advanced research is fundamental to Ossiam’s offering
The Ossiam team has extensive experience in fund management, quantitative research, data and technology, financial product design, trading and risk management. Ossiam believes that advanced research is fundamental to moving the quantitative investment industry forward and providing investors with systematic strategies that are understandable, transparent and repeatable.
Ossiam’s expertise spans indexation, enhanced beta and absolute return strategies in equities and fixed income through active and passive ETFs, mutual funds, dedicated funds or bespoke solutions.
As a signatory of UNPRI since 2016, Ossiam incorporates ESG data into some of its systematic investment process and implements a proxy-voting and engagement policy reflective of firm beliefs.
