The growing disconnect between climate risks and market pricing
It has been an exciting start to the year at Osmosis. In December, we successfully launched the Emerging Markets Core Transition Fund UCITS*, an important milestone for the firm and a clear signal of how we are continuing to evolve our investment offering. Alongside the launch, we are now scheduling client roadshows across Europe, Asia, and Australia during the first quarter, and we very much look forward to seeing many of you in person over the coming months.
This progress is taking place against a complex market backdrop. Equity markets continue to push to new highs, even as geopolitical risks intensify. To borrow a familiar line, there now seem to be three certainties in life: death, taxes, and heightened market volatility – driven by an increasingly provocative US administration. Navigating this environment requires discipline, adaptability, and a willingness to challenge established approaches.
Against this backdrop, we are investing deliberately in the next phase of our development. Our new quantitative team members have now fully joined the firm and are working closely with our existing investment and sustainability teams. Together, they are focused on tackling more complex challenges and developing more sophisticated solutions to meet the evolving needs of our investors. This marks the beginning of an important new chapter for Osmosis, as we continue to broaden our capabilities while staying true to our core purpose. There is more to come, but this momentum gives us confidence as we look ahead to the year.
At the same time, the frequency and severity of climate-related disasters continue to escalate, with increasingly visible impacts on supply chains, infrastructure, insurance markets, and company fundamentals. Yet a growing disconnect remains between these risks and current market pricing, particularly as US political rhetoric pushes further toward an anti-science and anti-climate agenda. This divergence matters. It creates both hidden risks for investors who ignore these signals and opportunities for those prepared to take a disciplined, evidence-based view of how environmental realities will ultimately reassert themselves in economic and financial outcomes.
Best Regards,
Ben Dear
CEO, Osmosis Investment Management
*This Fund is not available for US investors.
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).
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