Australian investment fund Perpetual has invested AU$60 million ($38.4 million) in the Osmosis Resource Efficient Core Equity Fund as part of its responsible investment multi-manager programme. The fund, managed by UK-based Osmosis Investment Management, focuses on companies that demonstrate greater resource efficiency compared to their sector peers.
The fund aims to deliver risk-adjusted returns above the MSCI World benchmark, using environmental data to select companies based on actual performance in areas such as carbon emissions, water usage, and waste generation.
Since its launch in 2017, the fund has returned 30.69% over three years to February 2025, and 13.5% over the past year, compared to the benchmark’s respective figures of 33.9% and 15.7%.
The investment strategy reduces carbon, water, and waste exposure by more than 60% while maintaining exposure across the broader equity market. The fund excludes companies involved in tobacco and those that breach the UN Global Compact’s social and governance principles.
Perpetual stated that the fund is aligned with efforts to support the transition to a more sustainable global economy. The decision follows growing interest in strategies that integrate environmental considerations while seeking competitive financial returns.
Greg Kynoch, Senior Research Analyst at Perpetual Private, said the inclusion of the Osmosis fund reflects a broader approach to selecting asset managers that incorporate responsible investment practices within a benchmark-aware framework.
Osmosis uses a proprietary research team to assess listed companies based on quantifiable sustainability outcomes, rather than stated targets or ambitions.
This latest allocation brings Osmosis’ total Australian assets under management to approximately US$2.4 billion (AU$3.8 billion). Globally, its Core Equity Range has attracted over US$17 billion (AU$24 billion) since 2017.
Perpetual Private is the wealth management arm of Perpetual Limited.