Osmosis Investment Management today announced the launch of an exchange traded fund (ETF) designed to give investors access to global companies whose primary business is to create technologies, products and solutions that help the world move towards a more sustainable, low carbon economy.
The Osmosis Climate Solutions 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% of earnings derived
from products or services focused on the efficient use of natural
resources and the mitigation of climate change. Companies are
further screened for liquidity, and weighted to provide diversified
global exposure to climate solution technologies.
“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,” June Aitken, Partner at Osmosis Investment Management, said.
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.
Ben Dear, Partner at Osmosis Investment Management, added, “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 current geographic breakdown of the index is Asia Pacific (37%)
North America (31%), Europe (26%). The breakdown by sector is Waste
(16%), Water (15%), Transport Efficiency (12%), Building Efficiency
(10%), Energy Storage (8%), Industrial Efficiency (7%), Solar (9%),
Wind (6%), Integrated Power (6%), Hydro Geothermal/Marine 4%,
Bio-Energy (3%), Nuclear W.M. (2%), Pollution (2%), and Carbon Trading
(1%)
Osmosis said it plans to bring additional, related investment products to market in 2010.
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