Uni of Adelaide commits to Osmosis’ ex-Fossil | Australian Markets
The University of Adelaide endowment fund has dedicated to invest in Osmosis’s Resource Efficient ex-Fossil Fuels Fund.
The strategy is a in style selection amongst a quantity of distinguished tertiary training suppliers, together with the University of NSW and the UK’s Oxford University Endowment Management (OUem), who seeded its ICAV fund launch in September 2023.
The strategy, developed in 2020 and opened to Australian wholesale buyers in 2023, is designed to each shield buyers from reflation in fossil fuel commodity costs in addition to worth destruction related to growing regulation and societal headwinds of carbon-intensive industries.
Osmosis touts the fund’s considerably decrease carbon footprint than the benchmark MSCI World, delivering notable reductions in carbon (-65%), water (-62%), and waste (-64%) possession relative to the MSCI World.
“The portfolio uniquely addresses both the supply side of fossil fuel energy generation through fossil fuel divestment and the demand side of fossil fuel energy consumption by reallocating the active divestment risk to the most highly correlated resource-efficient companies across the economy,” Osmosis notes.
Employing “strict environmental screens”, the strategy prohibits investment in corporations that derive more than 5% of their revenues from fossil fuels or nuclear energy. It additionally excludes corporations with any income from controversial weapons, civilian firearms, and tobacco manufacturing and people corporations in breach of the UN Global Compact Principles.
Since its launch in 2021, the fund has returned 47.6% to buyers – 0.67% shy of the benchmark – and 14.4% return within the 12 months to finish of February 2025.
Welcoming the University of Adelaide’s investment, Osmosis chief govt Ben Dear recognised the educator’s environmental management.
He added: “It is crucial when seeking to remove exposure to fossil fuels, that additional mitigation is undertaken to deal with demand as well as supply. Our Core Equity Ex-Fossil Fuels strategy achieves this while also reducing the portfolio’s exposure to water and waste.”
As of the tip of February 2025, the ex-Fossil Fuels Fund manages US$1.75 billion (AU$2.7 billion).
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