Osmosis adds emerging markets transition fund

Osmosis has added the Emerging Markets Core Equity Transition fund to its range, seeded with $80m from the IMAS Foundation.

The fund is a result of a three-year research project where Osmosis hired a dedicated team of analysts to collect, analyse and standardise publicly available data on carbon, water and waste across major sectors.

On its launch on 10 December, the fund will target regions that are responsible for the majority of global emissions and energy demand growth and invest in companies that are more resource efficient than their sector peers. According to Osmosis research, these are typically better managed, more consistently profitable and operate with lower leverage. The approach also underpins the group’s developed markets core equity strategy.

See also: Osmosis adds first credit funds

Osmosis CEO and founder, Ben Dear (pictured), 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, added: “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 I am delighted that this research effort now results in a fully investable strategy that challenges outdated assumptions about sustainability data in emerging markets.”

Last month, Osmosis announced it had made five senior hires from Legal & General, including the former head of index solutions and head of LGIM index for EMEA, for its systematic fund capabilities.

This article first appeared on Portfolio Adviser