For investors interested in cost-efficient sustainable investing, enhanced indexing could provide the answer. Enhanced indexing attempts to generate modest excess returns compared to traditional index funds and other passive management techniques.
• Passive investment funds are unable to deliver a comprehensive sustainable investment solution
• We believe that a low-cost enhanced indexing approach could be the sustainable investment sweet spot
• The approach targets outperformance retains the market’s risk profile, and significantly improves the sustainable footprint
• Identification of a successful alpha signal is key, but a challenge solved by only a few in the ESG space
• Osmosis has successfully identified Resource Efficiency as a persistent environmental performance driver