The Osmosis fund aims to provide risk-adjusted returns over the MSCI World benchmark and is specifically designed for environmentally-conscious investors seeking competitive financial gains. Osmosis CEO Ben Dear highlighted the fund's relevance for those looking to outperform benchmark returns while prioritizing sustainability.
Perpetual believes that investing in this fund positions its clients to benefit from the ongoing global shift toward more sustainable economic practices. The fund, launched in 2017, has delivered impressive results, boasting a 30.69% return over the last three years, closely trailing the MSCI World benchmark by 3.2%.
Osmosis identifies resource-efficient companies by evaluating their carbon emissions, water usage, and waste production. The firm’s Core Equity portfolio leverages a strategy that reduces carbon, water, and waste impact by over 60%, without deviating significantly from market indices. Additionally, the fund excludes companies involved in tobacco and those violating the UN Global Compact’s sustainability principles.
An in-house team of environmental data specialists at Osmosis scrutinizes large corporations based on their sustainable practices rather than merely their stated goals. This method aligns with Perpetual's commitment to integrating responsible investment strategies and catering to clients seeking performance coupled with environmental, social, and governance (ESG) considerations.
Greg Kynoch, Perpetual Private's senior research analyst, expressed enthusiasm about including Osmosis’ strategy in their investment suite, citing its alignment with Perpetual's goal of partnering with specialist asset managers who prioritize ESG factors.
This investment raises Osmosis’ Australian assets under management to approximately US$2.4 billion (AU$3.8 billion). The Core Equity fund has garnered over US$17 billion (AU$24 billion) since its inception. Perpetual Private, a division of Perpetual Limited, supports this expansion in responsible investment strategies.
