Northern Trust named fund administrator of Osmosis’ fossil fuel free CCF
03 March 2021 UK
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Northern Trust has been selected by Osmosis Investment Management to provide fund administration, global custody and depositary services for the Osmosis Resource Efficient Core Equity (ex-fossil fuels) fund in a UCITS common contractual fund (CCF).
The appointment extends the relationship between both organisations as Northern Trust already supports several Osmosis funds, including the Osmosis Resource Efficient Equity Market Neutral Fund, which launched in 2018.
The strategy, which Osmosis developed amid growing investor appetite to remove carbon risk from investor portfolios, will allow institutional investors to target an uncorrelated source of sustainable alpha from their core equity exposure, with a positive environmental focus.
The CCF is a tax-transparent fund vehicle, allowing its underlying investors to benefit from double taxation treaties to reduce withholding taxes in markets that recognise transparency as if they held the assets directly.
Ben Dear, CEO at Osmosis Investment Management, says: “As we further expand our fund range to meet client demand for sustainable investment strategies, we need to partner with organisations able to deliver flexible, efficient servicing solutions for our investors.”
Dear continues: “Northern Trust’s expertise in supporting tax-transparent fund structures, allied with its ability to deliver pan-European servicing solutions, aligned strongly with our plans for the launch and development of this fund.”
Clive Bellows, head of global fund services Europe Middle East Africa at Northern Trust, adds: “We are delighted to extend our relationship with Osmosis and support them in executing this fund launch. In this case, the use of a CCF supports our client’s growth and distribution strategy – allowing them to draw on the benefits of tax-transparency for their investors and help bring this fund efficiently to market.”
The appointment extends the relationship between both organisations as Northern Trust already supports several Osmosis funds, including the Osmosis Resource Efficient Equity Market Neutral Fund, which launched in 2018.
The strategy, which Osmosis developed amid growing investor appetite to remove carbon risk from investor portfolios, will allow institutional investors to target an uncorrelated source of sustainable alpha from their core equity exposure, with a positive environmental focus.
The CCF is a tax-transparent fund vehicle, allowing its underlying investors to benefit from double taxation treaties to reduce withholding taxes in markets that recognise transparency as if they held the assets directly.
Ben Dear, CEO at Osmosis Investment Management, says: “As we further expand our fund range to meet client demand for sustainable investment strategies, we need to partner with organisations able to deliver flexible, efficient servicing solutions for our investors.”
Dear continues: “Northern Trust’s expertise in supporting tax-transparent fund structures, allied with its ability to deliver pan-European servicing solutions, aligned strongly with our plans for the launch and development of this fund.”
Clive Bellows, head of global fund services Europe Middle East Africa at Northern Trust, adds: “We are delighted to extend our relationship with Osmosis and support them in executing this fund launch. In this case, the use of a CCF supports our client’s growth and distribution strategy – allowing them to draw on the benefits of tax-transparency for their investors and help bring this fund efficiently to market.”
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