The Natixis Global Asset Management subsidiary has launched a new US sector value-focused fund.

Ossiam, the Paris-headquartered smart beta investment manager, has launched its second exchange-traded fund based on the Shiller Barclays CAPE Sector indices.

The launch of the Ossiam Shiller Barclays CAPE US Sector Value TR UCITS ETF 1C (USD) follows February's launch of the Ossiam Shiller Barclays CAPE® Europe Sector Value TR UCITS ETF 1 C (EUR).

The Shiller Barclays CAPE Sector indices, developed jointly by Barclays and Professor Robert Shiller, use a sector rotational strategy based on a cyclically adjusted price-to-earnings ratio. 

The ratio seeks to identify long-term investment opportunities by providing a view on equities being over or undervalued. It does this by comparing the current value of a portfolio to inflation-adjusted aggregated earnings of its constituents averaged over ten years, therefore removing the effects of business cycles.

The new $5.6 million ETF is traded on the London Stock Exchange in dollars and in pence, with a total expense ratio of 0.65 per cent per year.

As of the end of June, Ossiam had $2.41 billion in assets under management, consisting of ETFs and institutional mandates.