Osmosis Global High Yield Strategy
Capture the Transition – Sustainable Investing drives Alpha
Our Global High Yield Strategy aims to outperform the benchmark through a disciplined, research-driven approach. We combine rigorous credit analysis with active portfolio management to deliver consistent returns across market cycles. Our investment process is grounded in fundamental research, supported by advanced technology and proprietary models.
The strategy has a quality bias executed by being structurally underweight the lowest part of the universe since these speculative credits underperform over time. At the same time we invest in so-called special situations creating upside returns. These are investment opportunities of profitable companies involved in M&A transactions, a restructuring or otherwise a situation that creates upside return. These positions are more research intensive.
The other distinguishing element of the strategy is that the Transition into a more sustainable economy is very relevant. High Yield is somewhat an ‘old economy’ asset class for which investing into a sustainable future is relevant and the strategy can have positive impact.
For all investments we ensure that every decision is informed, incorporates sustainability, and is aligned with client objectives. The strategy can hold up to 20% off benchmark positions.
Sustainability Drives Performance
We believe sustainability is not a constraint – it is a source of opportunity and performance. The global transition toward a sustainable economy is reshaping markets, creating new risks and rewards. Companies that adapt will thrive; those that ignore sustainability will face mounting challenges. Our vision is clear: sustainability drives alpha. By integrating sustainability science into financial analysis, we ensure that our Global Credit Strategy is both future-fit and performance-driven.
The Transition Investment Framework
Our Global High Yield Strategy aims to consistently outperform the global high yield corporate benchmark across market cycles. The Strategy has the flexibility to add off-benchmark exposure in investment grade credit. Our disciplined top-down and bottom-up credit selection has a strong emphasis on capital protection and capturing credit anomalies. Our sustainable investment philosophy is central to our investment process, which directly targets alpha through financially healthy companies which are preparing for the transition to a more sustainable economy.
Our proprietary Transition Investment Framework allows us to integrate sustainability into our Global Credit Strategy. We evaluate companies across three dimensions:
- Current Impact: How a company’s products and operations affect sustainability today.
- Future Impact: Whether the company is credibly transitioning through green investments, innovation, and revenue shifts.
- Financial Health Impact: How the transition affects the company’s financial resilience and creditworthiness.
The outcomes of the framework guide portfolio construction and enable transparent sustainability reporting. Our forward-looking approach ensures that sustainability drives alpha and pursues positive impact as described in our Whitepaper about our Transition Investment Framework.
Investment Approach
Our investment approach, refined over two decades and explored in Verberk’s 2024 book “Bias”, balances global-macro economic analysis with detailed bottom up company research. We seek companies that are better prepared for the future by embedding negative externalities, inevitable policy responses, and corporate strategies. The general sustainability and research philosophy applied in these strategies is described in the ESG Policy document on this website.
For this High Yield strategy is especially important that we do not do harm to the Transition into a more sustainable economy and we take care of the Current impact as described above. Secondly, the Future impact pillar is relevant since we actively search for companies that do the right thing in terms of Transition, despite maybe sometimes having a somewhat worse footprint currently. So, instead of exclusions we maximize alpha and forward looking Transition elements.
Capital at risk. The value of investments and the income from them can fall as well as rise, and investors may not get back the amount originally invested. Past performance provides no guarantee for the future.
Reasons to Invest
Our team has been advancing the frontier of sustainable investing for years, renowned for pioneering SDG scoring, climate related investing and science-based approaches. We invite clients to join us in this new endeavor, building portfolios that deliver returns while accelerating the global transition.
Process
Our approach combines a “winning by not losing” philosophy and market cycle research. We believe sustainability directly drives performance results – not through simple exclusions, but by identifying meaningful forward-looking green capital investments and pricing negative externalities.
Parent
Osmosis IM NL operates alongside Osmosis IM UK, a €18bn sustainable equity specialist. Both companies share operational excellence, sustainability insights, and distribution capabilities while maintaining distinct investment focuses.
People
Our team brings over 20 years of experience per professional, combining long-term perspective with passion for sustainable investing and credit management. All team members have equity participation, aligning our interests with long-term client outcomes.
Proprietary Data
We leverage proprietary data frameworks and advanced reporting capabilities while dramatically enhancing productivity. Our technology-driven approach enables two concrete client benefits: lower fees and better research.
Performance
The team is known for several business cycles without credit defaults or distressed sales. Performance is focused on credit risk and no other performance drivers are relevant. The team embraces AI for deeper, faster and non-linear research embedded in traditional research.