Osmosis Investment Strategies
Launched 19 February 2021
Resource Efficient Core Equity (ex-fossil fuels)
The Osmosis Resource Efficient Core Equity (ex-fossil fuel) Strategy targets maximum resource efficiency exposure while maintaining a tight tracking error to the MSCI World. The strategy excludes companies with a material involvement in (i.e. deriving greater than 5% of their revenues from) the fossil fuels industry or nuclear power generation, as well as companies with material involvement with nuclear and controversial weapons, civilian firearms, tobacco companies and companies in breach of any of the UN Global Compact Principles. Excluded transitioning companies in the utility sector are subject to the possibility of re-inclusion. The portfolio seeks to deliver better risk-adjusted returns relative to the benchmark while simultaneously delivering a significant reduction in the ownership of carbon, water and waste.
Style Category: Large Cap Core
STRATEGIES
Resource Efficient Core Equity
The Osmosis Resource Efficient Core Equity Strategy seeks superior risk-adjusted returns by targeting maximum resource efficiency exposure while maintaining a tight tracking error to the MSCI World. The Strategy excludes tobacco and any companies that breach the UN Global Compact’s social and governance safeguards. The resulting portfolio demonstrates significantly less ownership of Carbon, Water and Waste than the respective benchmark.
Style Category: Large Cap Core
STRATEGIES
Resource Efficient Emerging Markets
The Osmosis Resource Efficient Emerging Markets Strategy seeks superior risk-adjusted returns by targeting maximum resource efficiency exposure relative to the MSCI Emerging Markets Index. The portfolio has tight risk controls whereby the country and GICS sector exposures are capped to +/-1% to the benchmark whilst non-complementary style factors are also controlled. Financials are included on a completion basis and are given exposures which best complement the common factors that Resource Efficiency naturally exhibits. The Strategy excludes tobacco and any companies that breach the UN Global Compact’s social and governance safeguards. The resulting portfolio demonstrates significantly less ownership of Carbon, Water and Waste than the respective benchmark.
Style Category: Large Cap Blend
STRATEGIES
Resource Efficient Core Equity (Ex Japan)
The Osmosis Resource Efficient Core Equity (Ex Japan) Strategy seeks superior risk-adjusted returns by targeting maximum resource efficiency exposure while maintaining a tight tracking error to the MSCI World ex Japan. The Strategy excludes tobacco and any companies that breach the UN Global Compact’s social and governance safeguards. The resulting portfolio demonstrates significantly less ownership of Carbon, Water and Waste than the respective benchmark.
Style Category: Large Cap Blend
STRATEGIES
Resource Efficient Core Equity (ex Aus)
The Osmosis Resource Efficient Core Equity (ex Aus) Strategy seeks superior risk-adjusted returns by targeting maximum resource efficiency exposure while maintaining a tight tracking error to the MSCI World ex Australia. The strategy excludes tobacco and any companies that breach the UN Global Compact’s social and governance safeguards. The resulting portfolio demonstrates significantly less ownership of Carbon, Water and Waste than the respective benchmark.
Style Category: Large Cap Blend
STRATEGIES
Resource Efficient World Equity Model
The Osmosis Resource Efficient World Equity Model Strategy is designed to outperform the MSCI Developed World Index by systematically selecting the most resource efficient (RE) companies across 34 industry sectors. The portfolio excludes tobacco, financials, REITS and any companies that breach the UN Global Compact’s social and governance safeguards. The strategy demonstrates significantly less ownership of Carbon, Water and Waste than the respective benchmark.
Style Category: Large Cap Blend
STRATEGIES
Resource Efficient Low Volatility
The Osmosis Resource Efficient Low Volatility Strategy seeks superior risk-adjusted returns relative to the MSCI World Index, by delivering a minimum variance portfolio of resource efficient stocks. The strategy excludes financials and REITs, tobacco, energy, aerospace & defence and companies that breach the UN Global Compact on social and governance safeguarding. The resulting portfolio demonstrates significantly less ownership of Carbon, Water and Waste than the respective benchmark.
Style Category: Large Cap Low Volatility
STRATEGIES
Resource Efficient Equity Market Neutral
The Resource Efficient Equity Market Neutral Strategy seeks absolute risk-adjusted returns by targeting maximum resource efficiency exposure on the long side and maximum resource intensity on the short side. The strategy excludes financials and REITs, tobacco and companies that breach the UN Global Compact on social and governance safeguarding. The Resource Efficiency Alpha Signal generates a significant reduction in the ownership of Carbon, Water and Waste when comparing the long book to the short book.
Style Category: MoRE World Sustainable Market Neutral
Launched 3 January 2022
Resource Efficient
World (ex-US) Value
The Osmosis Resource Efficient World (ex-US) Value Strategy seeks to identify environmental leaders that trade at a lower price to fundamentals in every sector across the economy. The Strategy is designed to outperform the MSCI ex-US Value Index by systematically selecting those companies that lead their sector peers in Resource Efficiency. The portfolio excludes tobacco and any companies that breach the UN Global Compact’s social and governance safeguards. The strategy demonstrates significantly less ownership of Carbon, Water and Waste than the respective benchmark.
Style Category: Large Cap Blend
STRATEGIES
Resource Efficient
International
The Osmosis Resource Efficient International Strategy is designed to outperform the MSCI World Ex USA Index by systematically selecting the most Resource Efficient companies across 34 industry sectors. The portfolio excludes tobacco and any companies that breach the UN Global Compact’s social and governance safeguards. The strategy demonstrates significantly less ownership of Carbon, Water and Waste than the respective benchmark.
Style Category: Large Cap Blend
STRATEGIES
Resource Efficient International ADR
The Osmosis Resource Efficient ADR Strategy is designed to outperform the MSCI EAFE Index by systematically selecting the most Resource Efficient companies across 34 industry sectors. Only stocks with an ADR and a positive Resource Efficiency score are eligible for selection. The portfolio excludes tobacco, financials, REITs and any companies that breach the UN Global Compact’s social and governance safeguards. The strategy demonstrates significantly less ownership of Carbon, Water and Waste than the respective benchmark.
Style Category: Large Cap Blend