Resource Efficient Companies Outperform Market Average According to Osmosis Investment Management

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Oxford University Endowment Fund allocates capital using Osmosis Investment Management's MoRE strategy

Osmosis Investment Managment

Osmosis Investment Management

There is an impression that sustainable investment strategies lack returns but our model of resource efficiency identifies higher public market returns using a sustainability strategy."
says Gerrit Heyns, partner at Osmosis

Featured yesterday in the Financial Times, Osmosis Investment Management announces the launch of their Model of Resource Efficiency (MoRE), a uniquely insightful approach to valuing publicly listed companies. It is based on Osmosis's research that shows companies that are more resource efficient provide greater returns to shareholders.

MoRE draws from a proprietary database comprising thousands of data points across the largest companies in the world to identify those organizations that create more from less.

Ben Dear, a Partner at Osmosis says, “The concept is intuitive, but our concentration on resource consumption and waste creation data is distinctive. It has enabled us to create a new measure of relative company value and from that systematically build solid investment strategies.”

Oxford University Endowment Management (OUEM) is the latest institution to invest money using the Osmosis MoRE strategy.

Mr Dear added, “We are delighted to have portfolio investment from a £1 billion global investor like OUEM. It is a significant endorsement of the MoRE investment philosophy and of our business generally.”

Companies in the MoRE strategies tend to have higher productivity, measured by return on assets and return on equity, than their reference benchmarks. They also tend to have better asset yields and show the characteristics of strong management teams.

Mr Dear added, “Resource efficiency is a topic of increasing scrutiny. Our MoRE strategies provide a way for investors of all types to gain exposure to the most resource efficient companies in the world”.

“We’re working hard to get our ideas and products into the investment community. The validation that OUEM adds to our thesis is extremely rewarding, particularly in the current market environment”, concluded Mr Dear.

About Osmosis Investment Management LLP
Osmosis, established in 2009, is a London based Investment Management firm focused on identifying long term returns in a resource constrained world. Our products and strategies reflect an innovative, yet considered approach to contemporary investment challenges.


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Gerrit Heyns
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