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Osmosis Investment Management

PRI reporting framework 2018

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the roles present in your organisation and for each, indicate whether they have oversight and/or implementation responsibilities for responsible investment.

Roles present in your organisation

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

Osmosis investment & research team consists of experienced portfolio management & environmental research specialists who are at the forefront of integrating sustainability data into investment portfolios. Osmosis environmental research team has extensive experience in understanding corporate environmental performance and how it pertains to the balance sheet of a business. They are supported by a senior management team with decades of experience.

 Osmosis has two Portfolio Managers who not only share responsibilities for all the portfolio management, but have significant levels of expertise in utilising the Resource Efficiency signal generated from the MoRE model in portfolio construction.  Saad Rashid has been working at Osmosis since 2011 and was previously Head of Research at Trucost, a leading environmental data provider.  Robbie Parker, CFA has been at Osmosis since 2012 and has been working with the Resource Efficiency signal and its relationship with other Factor signals. 

The Osmosis environmental research process is headed up by Stefano Dell’aringa.  Stefano was former Head of Research at Trucost and joined Osmosis at the beginning of 2014 to enhance the environmental database research.  Whilst Stefano’s speciality is within the disclosure and standardisation of the environmental data, the PMs are actively involved in work involving the enhancement of the signal to strengthen its explanatory power in justifying forward looking firm value.  This understanding of how the Resource Efficiency factor signal is implemented within the portfolios is key to driving forward the research process. There are three research analysts who specialise across their respective industries, collecting and standardising the respective environmental disclosures of energy and water consumption and waste creation.

The collation of data is a manual process whereby the individual reports are reviewed and the data standardised by the analysts prior to acceptance by Stefano before inclusion within the database.  Environmental data does not have a disclosing standard such as GAAP or IFRS and thus requires significant amount of work to standardise the data to the proprietary economic framework developed by Osmosis.

The underlying environmental data is annually observed; however, the data is disclosed at multiple points during the year due to the different reporting cycles each company adopts. 

At the start of each month, the anticipated work load for the updates is calculated and the work is normally complete within the first 2 weeks of the month.  This does, however, vary from month to month based upon the disclosure levels as there are naturally some months where there are greater amounts of raw data points to analyse. 

Once the companies updates are completed, the remaining time of the analysts is allocated to perform additional research projects of this vary from case study analysis, company engagement and the enhancement of the “economic value created” numerator within the Resource Efficiency signal.

Often the PMs are working on additional projects in tandem with our underlying clients and projects have included:

- Analysing dividend resilience of Resource Efficiency low volatility portfolio vs low volatility benchmark
- Implication of Resource Efficiency & Quality
- Resource Efficiency in the Low Volatility signal
- Resource Efficiency and correlation of other long-term drivers of return

 

Finally, as the firm continues to grow the management and board recognise the requirement for continued investment into the research function. Reinvestment is continuous and includes investment into staff, data and infrastructure.

All functions report into the CEO , who has overall responsibility for the strategic direction of the firm and oversight of all responsible investment activities.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

6 Number

07.4. Additional information. [Optional]

All Osmosis strategies are driven by the outcome of the Model of Resource Efficiency.  From the definition above, all staff apart from compliance and finance have been included as all dedicated to responsible investment.


SG 07 CC. Climate-issues roles and responsibilities (Not Applicable)


SG 08. RI in performance management, reward and/or personal development (Private)


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