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Osmosis Investment Management to launch climate solutions ETF


Osmosis Investment Management has launched the Osmosis Climate Solutions ETF. 

The exchange-traded fund will give investors access to a broad range of global companies whose primary business is to create technologies, products and solutions that help the world move towards a more sustainable, low carbon economy.

June Aitken, partner at Osmosis Investment Management, says: “Transition towards a low carbon economy is inevitable. Climate change will be a significant driver of economic growth in future years. This is a global issue from which global investment opportunities are arising.” 

The ETF will track the Osmosis Climate Solutions Index, which was developed with the assistance of HSBC’s quantitative techniques business. The index comprises 100 companies with more than 50 per cent of earnings derived from products or services focused on the efficient use of natural resources and the mitigation of climate change. The universe is further screened for liquidity, and weighted to provide diversified global exposure to climate solution technologies. 

Ben Dear, partner at Osmosis Investment Management, adds: “Existing ETFs either offer insufficient exposure to pure-play climate solutions or are focused too heavily on energy production. Climate change technology is not only about sustainable energy production. Energy efficiency, resource management, pollution control and low carbon financing all play significant roles in both the size and breadth of investment opportunities.”

The ETF is subject to the regulation of the Irish Financial Services Regulatory Authority and is expected to be quoted initially on the Irish Stock Exchange in early January, followed shortly by the London Stock Exchange.

The current geographic breakdown of the index is Asia Pacific (37 per cent) North America (31 per cent) and Europe (26 per cent).

The breakdown by sector is waste (16 per cent), water (15 per cent), transport efficiency (12 per cent), building efficiency (ten per cent), energy storage (eight per cent), industrial efficiency (seven per cent), solar (nine per cent), wind (six per cent), integrated power (six per cent), hydro geothermal/marine four per cent, bio-energy (three per cent), nuclear w.m. (two per cent), pollution (two per cent), and carbon trading (one per cent).

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