Building for What Comes Next
Markets remain buoyant, but the foundations are showing strain. Gold sits at record highs, equity valuations imply perfection, and investors continue to debate whether artificial intelligence represents durable progress or speculative excess. Beneath the surface, fiscal imbalances, persistent inflation, and intensifying climate impacts are testing resilience. At Osmosis, we remain focused on substance over sentiment. We are investing in the capabilities required for the next phase of the market cycle. This month, our Netherlands-based affiliate, Osmosis NL, announced three senior appointments to strengthen our fixed income platform: Jan Anton van Zanten, Reinout Schapers, and Taeke Wiersma. Collectively they bring extensive expertise in SDG-aligned investment, global credit markets, and sustainable finance. The latest Credit Market Outlook examines the maturing rate environment, stretched valuations, and the renewed importance of patience as a differentiating asset.
In London, preparations are underway for the launch of the Osmosis Emerging Markets UCITS Fund*, the outcome of three years of proprietary research into the quality and depth of emerging market data. The strategy seeks to address climate risk where both exposure and opportunity are greatest. Emerging markets are not only engines of growth but are essential to global decarbonisation.
Our latest Emerging Markets Insight highlights how supply chain emissions are often transferred to developing economies, allowing many companies in advanced markets to appear cleaner than they are. For example, while Tesla’s reported footprint looks modest, nearly half its suppliers operate in emerging markets, some with environmental intensities up to 1,800 times higher than Tesla’s own disclosures. Correcting these distortions is essential if capital is to drive genuine climate progress.
This quarter’s floods, fires, and heatwaves underline that climate risk is not a distant concern. It is already influencing earnings, balance sheets, and asset values.
While equity markets continue to advance, often indifferent to these underlying pressures, our role as fiduciaries is to remain guided by evidence rather than emotion. The Osmosis Resource Efficiency process continues to allocate capital systematically toward companies demonstrating measurable improvements in carbon, water, and waste productivity. These drivers of both sustainability and profitability underpin our approach to long-term value creation. This disciplined, data-led process avoids market timing and thematic bias, focusing instead on tangible efficiency gains that support resilience and performance through the cycle.
Sincerely,
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).
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.
Netherlands-based Osmosis Investment Management NL B.V. (“Osmosis NL”) is an affiliate of Osmosis UK and a member of the Osmosis Group of Companies. Osmosis NL is licensed as a manager of alternative investment funds and authorised to provide discretionary portfolio management services. It is subject to supervision by the Netherlands Authority for the Financial Markets (AFM) under registration number 15006165).
Our research identifies companies from the MSCI World Index that report sufficiently on at least 2 of the following 3 metrics: carbon, water, and waste, to calculate a resource efficiency score for each reporting company – the Model of Resource Efficiency. Our strategies overweight efficient companies and underweight inefficient companies within each Osmosis defined sector, to remain sector neutral to each benchmark. Companies in the Financials or REIT sectors are not given Resource Efficiency Scores due to their relatively minimal carbon emissions, water consumption and waste generation relative to other types of companies. Our strategies may select Financials/REITs for inclusion in the portfolio to maintain the portfolio’s overall factor weightings. All strategies exclude tobacco and companies that breach the UN Global Compact on social and governance safeguarding.