Osmosis partners with Nikko Asset Management, takes investment

Osmosis, founded in 2009 and headquartered in London, is a research-based, quantitative investment manager focused on delivering better risk-adjusted investment returns with better environmental outcomes. Its investment philosophy is based on the view that companies that are more resource efficient are more likely to outperform their peers over the long term. The Osmosis portfolios overweight resource efficient companies and underweight, or short, inefficient companies as identified by the Osmosis Model of Resource Efficiency.

Nikko Asset Management (Nikko AM), a consolidated subsidiary of Sumitomo Mitsui Trust Holdings (SuMi Trust) together with Osmosis have entered into a non-binding agreement for Nikko AM group to gain the exclusive distribution rights in the Asia-Pacific region (excluding Australia) and non-exclusive distribution rights elsewhere for Osmosis investment products and strategies, including its flagship Osmosis Resource Efficient Core Equity Strategy. The approach targets excess returns through the identification of Resource Efficiency in listed companies. Osmosis defines Resource Efficiency as the carbon emitted, waste generated, and water consumed, relative to value creation. Resource efficient companies are, therefore, those that most efficiently use limited resources to create economic value. In addition, Nikko AM Group intends to acquire a minority stake in Osmosis.

Nikko AM, like Osmosis, believes a positive environmental impact should not come at the cost of portfolio performance. Nikko AM group launched Japan’s first SRI fund in 1999, and continues to expand its Global Sustainable Investment Team, with a team hub in Singapore. The firm is also one of the first Asia-based managers to qualify globally as a signatory to the UK Stewardship Code, recognised by many as the highest global standard of stewardship.

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