Supporting the next stage of development
I am writing to you from Australia, where over the course of last week and this coming week I have been meeting many of our longstanding clients, as well as a broad range of institutional investors, and introducing newer members of the Osmosis team. We seem to have brought a little of the British weather with us. After weeks of extreme heat, temperatures have moderated a little since our arrival.
Across a full schedule of meetings, what stands out is that, despite being geographically distant from the centre of much of the current geopolitical volatility, Australian allocators are anything but detached from it. There is a consistent and acute focus on risk, not in theory, but in how risk budgets are being set and deployed. Australian investors are not alone in this respect. We are seeing the same discipline and scrutiny across other major markets.
Across institutions, the discussion is increasingly framed around total portfolio risk. Where is active risk being deployed. Where is it being withdrawn. How much tracking error is genuinely earning its keep. How much risk is allocated to impact strategies, and what return profile is expected in exchange. In a more volatile and less predictable return environment, risk budgets are being scrutinised carefully.
There is also greater selectivity around truly active managers. Allocators are asking harder questions about conviction, differentiation, and portfolio construction discipline. More risk aware, transparent, and repeatable approaches are rising up the agenda, particularly where they can demonstrate how environmental risk and financial risk are integrated rather than treated separately.
This environment plays directly to the work we have been doing. Our newly integrated team, combining deep sustainable expertise with multi factor and portfolio construction experience, allows us to engage in more substantive discussions around risk allocation, factor exposure, and capital resilience. We are not simply offering a sustainability lens. We are helping investors think through how environmental risk, financial risk, and active risk interact within a total portfolio. That positions Osmosis well in a market where risk budgets must be justified.
A related theme that has come through strongly is diversification. There is increasing discussion, and in some cases early action, around reducing concentration in US equities. After a prolonged period of US exceptionalism, allocators are reassessing geographic balance within portfolios.
It is therefore timely that over the past year we have researched, designed, and launched two Emerging Markets strategies. Interest in the asset class is moving higher up the agenda, yet it remains a region that is poorly served by the sustainable asset management community. Investors are often forced to choose between environmental integrity and robust portfolio construction. We believe that trade-off is unnecessary.
Our Emerging Markets platform applies the same disciplined environmental and quantitative framework that underpins our Developed Market Strategies, adapted for the distinct structural characteristics of Emerging economies. In a world where diversification, risk control, and environmental awareness are converging priorities, we believe this capability is particularly relevant.
Against this backdrop, I am pleased to share news of a significant strategic growth capital commitment from our long term shareholders, led by Amova Asset Management, Capricorn Investment Group’s Sustainable Investors Fund and Oxford Endowment Fund.
Their decision to increase their investment reflects deep alignment and long term conviction in our research platform, our integrated investment capability, and the structural relevance of environmental risk within global portfolios.
This capital accelerates the next phase of Osmosis. We are strengthening our research and technology infrastructure, deepening our quantitative and environmental capabilities, and further integrating our equities and credit expertise. We surpassed $17 billion in assets across eleven strategies (as of end January 2026), and our ambition is to build a more resilient, more scalable, and more intellectually differentiated platform for the decade ahead.
As always, thank you for your continued partnership.
Best regards,
Ben Dear
CEO, Osmosis Investment Management
Important Information
Global Investors (ex US and AUS). This report is issued in the UK by Osmosis Investment Management UK Limited (“Osmosis UK”). Osmosis is authorised and regulated by the Financial Conduct Authority “FCA” with FRN 765056. This document is a “financial promotion” within the scope of the rules of the FCA. In the United Kingdom, the issue or distribution of this document is being made only to and directed only at professional clients (as defined in the rules of the FCA) (“Professional Clients”). This document must not be acted or relied upon by persons who are not Professional Clients. Any investment or investment activity to which this document relates is available only to Professional Clients and will be engaged in only with Professional Clients.
Australia Investors: This document is issued in Australia by Osmosis Investment Management (Australia) Pty Ltd (ABN 80 670 854 798, CAR No. 001305635) (“Osmosis AUS”) is a corporate authorised representative of Eminence Global Asset Management Pty Ltd which is the holder of an Australian Financial Services Licence (AFS Licence No. 305573).
US Investors. This document is issued by Osmosis Investment Management US LLC (“Osmosis US”). Osmosis US is an affiliate of Osmosis UK and Osmosis AUS. Osmosis UK, Osmosis US and Osmosis AUS are wholly owned subsidiaries of Osmosis (Holdings) Limited (“OHL”) and are collectively.
AUM includes discretionary assets under management of Osmosis US, Osmosis AUS, Osmosis NL and Osmosis UK and assets invested in model programs provided by Osmosis US, Osmosis AUS and Osmosis UK.