6 Years - Resource Efficient Core Equity Fund*
Managing Environmental and Active Risk in Low Tracking Error Equity Portfolios
*Please note this Fund is not available for US investors. Separate accounts are available for US investors using the same model and investment objective of the Fund.
A Smarter Sustainable Solution for Passive Investors
Osmosis launched the Resource Efficient Core Equity Fund in May 2017. The Fund was developed as a core replacement product which would target better risk-adjusted returns while significantly reducing the environmental impact of an investor’s passive exposure. All portfolios targeting a sustainable outcome will naturally bring in active risk relative to a market cap-weighted benchmark. The Osmosis program is unique in that the active risk is controlled and targeted towards an uncorrelated sustainable alpha signal: the proprietary factor of Resource Efficiency.
Environmental Risk to Environmental Reward
The Osmosis program is unique in that we control this active risk and target it towards our sustainable alpha signal. The Osmosis Resource Efficiency signal, the core of our portfolio construction, has demonstrated consistently better risk-adjusted returns while simultaneously delivering significant environmental savings. As at 31 July 2023, the Core Equity Fund delivered an average reduction of -61% in carbon, -67% in water and -65% in waste relative to the MSCI World benchmark while being invested across the broader economy.
Targets superior risk-adjusted returns
Low tracking error to benchmark
Globally diversified - sector neutral
-61% carbon, -67% water, -65% waste
UNGC screened and ex-tobacco
Low cost and liquid
The Model of Resource Efficiency
Osmosis uses only proprietary, in-house, manually standardised environmental data, which is statistically reliable and well understood. The Osmosis factor of Resource Efficiency (RE) is the product of 12 years of dedicated research and commitment to the field of sustainable finance.
Utilising publicly disclosed corporate environmental data from 2005 onwards, our in-house research team standardises carbon, water and waste data to sector-specific frameworks. A sector-specific RE factor score ensures comparability to the environmental balance sheets of similar companies.
In contrast to the majority of company sustainability ratings, Osmosis only evaluates a company on its sustainable actions. It firmly believes that those companies that have effectively monetised sustainability to the balance sheet will outperform their sector peers over the long term.
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2023 Winner - Best Global Equity Fund
The Osmosis Core Equity Fund was awarded by ESG Investing the Best Global Equity Fund in the ESG Investing Awards 2023. This award was free to applicants and open to all organisations globally and was given in February 2023. The award relates to the annual periods Dec 21 – Dec 22.