Enhanced Indexing: The sustainable sweet spot

For investors interested in cost-efficient sustainable investing, enhanced indexing could provide the answer.

September 6, 2020 1 min read
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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.


Summary


• 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

September 6th, 2020
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