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ESG Investing / Asset Management
Nikko AM takes stake in ESG-focused Osmosis
Firms target better risk-adjusted returns, positive environmental results in Asia
Tom King 14 Nov 2023

One of Asia’s largest asset managers Nikko Asset Management (Nikko AM) has agreed to take a minority stake in the London-based sustainable investment firm Osmosis and will also acquire exclusive distribution rights in Asia-Pacific for Osmosis investment products and strategies.

Founded in 2009 and headquartered in London, Osmosis, is a research-based, quantitative investment manager that focuses on delivering enhanced risk-adjusted investment returns while also producing positive environmental results.

Its portfolios, the firm says, are overweight on resource efficient companies and underweight, or short, on inefficient companies as identified by its in-house Osmosis model of resource efficiency.

For Nikko AM, with US$209.4 billion assets under management as of March 31 2023, the deal fits with its momentum of integrating environmental, social and governance (ESG) principles across its business.

Nikko AM recently expanded its global sustainable investment team in Singapore and was one of the first Asia-based managers to qualify globally as a signatory to the UK Stewardship Code, recognized by many as the highest global standard of stewardship.

Under the terms of the agreement, the companies 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.

“Osmosis is truly unique, with an innovative approach that has proven itself over the years,” says Nikko AM president Stefanie Drews. “In addition, Osmosis makes for a strong cultural fit and, therefore, a perfect partner with whom we look to grow together.“

Osmosis CEO Ben Dear adds: “Through Nikko AM’s established distribution networks, we look forward to raising awareness of our unique investment approach, which targets better risk-adjusted returns while significantly reducing the ownership of carbon and waste in the Asia region.“

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