First Canadian appointment is latest in a series of client wins for Osmosis
- The systematically run long only Fund seeks to identify companies that are more resource efficient than their same sector peers and set to benefit from the transition to a more sustainable global economy
- Since inception the Fund has outperformed the MSCI World Index by an annualised 0.8% within a tight tracking error of 0.7%
- The strategy delivers significant reductions in ownership of Carbon (56%) Water (64%) and Waste (54%) relative to the benchmark while remaining invested across the broader economy
The Ivey Foundation, one of Canada’s oldest private family foundations, has selected sustainable investment manager Osmosis, to manage a long only sustainable global equity portfolio. The foundation will invest in the Osmosis Resource Efficient Core Equity Fund which has attracted forward thinking sustainable investors from around the globe since its launch four years ago. Assets managed against the Osmosis enhanced index range of strategies now total over $1bn. The Ivey Foundation marks Osmosis’ first Canadian client and is the latest in a series of significant milestones for the firm.
The Toronto-based Foundation’s Economy and Environment program supports Canada’s transition to a sustainable economy by identifying opportunities to enhance resource efficiency, foster innovation and advance the field of sustainable finance. The Foundation shares Osmosis’ vision that the most climate resilient and efficient business models will benefit from a lower cost of capital and stronger growth fundamentals in the long term.
Ben Dear, CEO Osmosis says
“The Foundation’s mandate and our investment philosophy are well aligned so we are excited to welcome them to the client roster as our first Canadian investor. We are seeing increased demand from sophisticated investors globally who seek to identify investments which address environmental issues in a pragmatic and objective fashion, while simultaneously targeting and delivering better risk adjusted returns.”
Rosamond Ivey, Chair, commented
“The Ivey Foundation has a long track record of applying a sustainable lens to its investment portfolio. Bringing Osmosis on as a global manager of companies seeking to advance the transition of the world economy to a low carbon, more resource efficient status, while continuing to be prosperous, supports our goals. We look forward to building a long-term relationship with Osmosis and the UK team. “
About the Osmosis Resource Efficient Core Equity Fund
The Osmosis Resource Efficient Core Equity Fund targets better risk-adjusted returns while reducing exposure to carbon, water, and waste – resulting in a significantly lower environmental footprint relative to the benchmark. The Fund is constructed utilising Osmosis’ proprietary environmental research, which identifies companies that are more resource efficient in creating economic value than their same sector peers. Developed as a core equity replacement product, the underlying portfolio replicates the style and risk exposures of the benchmark while maximising the sustainable, Resource Efficiency exposure within an ex-ante 70bps tracking error target.
The Resource Efficient Core Equity Fund can be accessed by investors in Europe and Canada via an Ireland UCITS fund.
The Model of Resource Efficiency
Through the development of its proprietary Model of Resource Efficiency, Osmosis is able to link corporate Resource Efficiency to economic value generation and financial performance, identifying a sustainable alpha signal. The Osmosis Resource Efficiency Factor is derived from an objectively driven research program and the unique approach focuses on reducing portfolio ownership of three key environmental metrics, Carbon, Water and Waste while targeting better risk-adjusted returns than the parent index.
*This Fund is currently not available to US Investors