Launch brings quantitative rigour to the world’s most climate critical economies.
Osmosis Investment Management (Osmosis) launches the Osmosis Emerging Markets Core Equity Transition Fund, a new UCITS Fund designed to bring its Resource Efficiency approach to regions that account for the majority of global emissions and energy demand growth. The Fund will launch on December 10th with USD 80 million of seed capital provided by the IMAS Foundation*.
The launch arrives at a time when global equity fund issuance is at its lowest level in years and sustainable equity launches have slowed dramatically. For investors seeking diversified sustainable exposure, emerging markets remain one of the most underserved segments of the global market, constrained by perceived limited data quality and a lack of credible solutions.
Three-year research programme transforms emerging markets data landscape
The Fund is the result of a three-year programme to research and standardise publicly available environmental data across emerging markets. Osmosis hired a dedicated team of analysts to collect, extrapolate, clean, and standardise publicly reported carbon, water, and waste data across all major sectors. This work revealed that EM environmental data – long regarded as patchy and unreliable – now has the depth, breadth, and consistency required for robust, quantitative portfolio construction.
A proven methodology extended to the world’s most climate critical regions
The systematically run Fund will seek to deliver superior risk-adjusted returns versus the MSCI Emerging Markets benchmark by allocating to companies that are demonstrably more Resource Efficient than their sector peers. Osmosis’ research shows that such companies are typically better managed, more consistently profitable, and operate with lower leverage. The approach extends the same methodology that underpins the firm’s USD 15 billion developed markets core equity strategy. Osmosis research shows that resource efficient companies tend to be better managed, more consistently profitable, and operate with lower leverage.
A more advanced alternative to simplistic low carbon approaches
The Fund responds to growing investor demand for a sustainable core strategy that maintains low tracking error while achieving meaningful environmental progress. Many exclusion-based approaches reduce headline carbon exposure but fail to support transition pathways, manage active risk effectively, or capture underlying market inefficiencies. By contrast, the Osmosis strategy reduces ownership of Carbon, Water, and Waste by approximately 60 percent while maintaining diversified exposure across the economy.
Why emerging markets matter for real world impact
Emerging and developing economies account for more than two thirds of global CO₂ emissions and most incremental energy demand. For investors seeking long term growth and measurable environmental impact, these markets represent one of the most consequential regions in the world.
Osmosis CEO and Founder, Ben Dear, said:
“Emerging markets sit at the centre of the climate challenge, yet investors are too often reliant on limited third party data and simplistic negative screens that lead to sub optimal portfolios and, in some cases, entirely inaccurate environmental profiles. By applying our Resource Efficiency process here, we can offer investors disciplined portfolio construction with environmental insight that is grounded in genuine data and genuine research.”
Osmosis Head of Emerging Markets Research, Jamie Padkin, said:
“Data is the decisive factor in quantitative emerging markets investing. Our mandate was to replicate our developed markets methodology while adapting to the complexity of these economies. I am delighted that this research effort now results in a fully investable strategy that challenges outdated assumptions about sustainability data in emerging markets.”
About the Osmosis Group
Osmosis’ mission since 2009 has been to become the world’s leading dedicated sustainable asset manager, delivering transition-focused investment solutions across multiple asset classes. Building on our strong foundation in systematic equity, we have recently expanded our expertise to include fixed income and credit through our team in the Netherlands (Osmosis NL), strengthening our ability to support clients in every market environment.
As a cross-asset sustainability specialist, Osmosis leads with innovation, responsible stewardship, and an unwavering commitment to supporting the transition, empowering investors to build a resilient and sustainable future.
Osmosis currently manages ~ $16.6bn (as of 31 October 2025) * in sustainable assets and counts over 50 employees across its teams in the UK, the Netherlands and the US. The firm is backed by institutional shareholders including the Oxford Endowment Fund, Capricorn Investment Group and Amova Asset Management.
About IMAS Foundation*
IMAS Foundation is a Netherlands-based, purpose-driven foundation that manages long-term financial assets to support charitable activities. IMAS focuses on generating sustainable returns with responsibility and impact at its core, investing with a multi-asset, long-horizon mindset, embedding environmental and social criteria into its decisions. IMAS Foundation is a sister foundation to the INGKA Foundation—the owner of INGKA Group, which in turn owns the majority of IKEA’s department stores globally.
Important Information
This press release is issued by Osmosis (Holdings) Limited, a London-based investment management group. Osmosis Investment Management UK Ltd (“Osmosis UK”), Osmosis Investment Management US LLC (“Osmosis US”) and Osmosis Investment management (Australia) Pty Ltd (“Osmosis AUS”) are wholly owned subsidiaries of Osmosis (Holdings) Limited (“OHL”). Osmosis UK is regulated in the UK by the FCA. Osmosis US is a registered investor advisor with the SEC in the US and Osmosis AUS is a corporate authorised representative of Eminence Global Asset Management Pty Ltd (AFSL 305573). Registration with the SEC does not imply any level of skill or training.
Osmosis Investment Management NL B.V. (“Osmosis IM NL”) is a Netherlands-based entity that has obtained a license from the Dutch Authority for the Financial Markets as an independent regulated alternative investment fund manager and provider of discretionary portfolio management services. Osmosis IM NL is an affiliate of Osmosis UK.
Osmosis UK, Osmosis US, Osmosis AUS, and Osmosis IM NL are collectively referred to throughout as “Osmosis”.
*AUM as of 31 October 2025 includes discretionary assets under management of Osmosis, and assets invested in model program provided by Osmosis US, Osmosis AUS, and Osmosis UK.
For more information, please contact Lisa Harrison on +44 7716 912832 [email protected]