Osmosis Investment Management US LLC (“Osmosis” or the “Firm”), established April 17, 2015,
provides asset management services in connection with the development of model portfolios.
Osmosis is wholly owned by Osmosis US LLC, which is wholly owned by Osmosis (Holdings)
Limited (“OHL”). OHL does not have members that have the right to receive upon dissolution,
or have contributed, 25% or more of the capital.
All research and development is conducted by an affiliate of Osmosis, Osmosis Investment
Research Solutions Limited (“OIRS”). OIRS is a wholly owned subsidiary of OHL. OHL provides
Osmosis with certain back-office services. OHL handles certain key operational tasks for
Osmosis and Osmosis’s clients.
We recognize that each client presents a unique set of circumstances and therefore our
services are tailored to match the particular needs of each client. Before any discretionary
account is created for a client, Osmosis requires a formal investment management agreement
which grants the necessary discretionary authority and details any and all constraints and
limitations that the client may place on such discretionary authority.
All services can be tailored to client requests. Due to the systematic nature of the Osmosis
investment process, clients can provide exclusionary lists, country exposures and industry
exposures, as well as fundamental exposures (as examples), to tailor services for each client’s
requirements.
Osmosis specializes in the quantitative analysis of corporate sustainability (or environmental)
disclosures. Osmosis has created a proprietary model which exploits market inefficiencies, the
Model of Resource Efficiency. Osmosis targets excess returns through the identification of
Resource Efficiency in listed companies. We define Resource Efficiency as the Carbon emitted,
Waste generated, and Water consumed, relative to value creation. Our portfolios overweight
efficient companies and underweight, or short in certain circumstances, inefficient companies
as identified by the Osmosis Model of Resource Efficiency.
Derived from the Model of Resource Efficiency database, customized investment strategies are
offered to clients as separately managed accounts (“SMAs”), pooled investment vehicles, and
model programs (together, the “clients”).
Separately Managed Accounts
Osmosis provides discretionary investment advisory services to SMA clients, primarily through
financial intermediaries (such as registered investment advisors). SMA clients select an
investment strategy after consultation with the client’s primary financial advisor.
Pooled Investment Vehicles
Osmosis is the investment manager to pooled investment vehicles organized in a master feeder
structure: Osmosis Resource Efficient Equity Market Neutral US Fund LP, a Delaware
limited
partnership (the “Onshore Feeder”) and Osmosis Resource Efficient Equity Market Neutral
Offshore Fund Ltd (the “Offshore Feeder”) which invest through Osmosis REEMN Master Fund
LP, a Cayman Islands exempted limited partnership (the “Master Fund”). The Onshore Feeder,
Offshore Feeder, and Master Fund are referred to collectively as the “Funds”. Osmosis GP LLC
is the general partner of the Onshore Feeder and Master Fund (the “General Partner”). Any
reference to the Funds within this Form ADV Part 2A shall not constitute an offer to sell or the
solicitation of an offer to buy interests in the Funds. A private placement of securities may only
be made in conjunction with the Funds’ offering documents. Osmosis manages the Funds in a
manner consistent with the investment strategy described in the Funds’ offering documents.
Investment advice is provided directly to the Funds, subject to the discretion and control of the
General Partner or the board of directors of each Fund, as applicable. Osmosis does not
provide specifically tailored advice to investors in the Funds.
Model Only Programs
Osmosis participates in model only programs (“Model Programs”). In these programs, we
provide an investment model to a registered investment adviser (“Program Sponsor”) to be
provided to a designated third party. For these programs, our primary responsibilities are to
create a non-client specific, representative model portfolio based on a specified investment
strategy and to communicate periodic model changes to the designated party. The Program
Sponsors have sole discretion with respect to implementing a model, in whole or in part, for
any client account. Any such implementation is effected through trading arrangements entered
into by the Program Sponsor, and Osmosis therefore does not affect any trades in connection
with its Model Programs. Osmosis does not have an advisory relationship with the end-
investor. Osmosis is not responsible for making investment decisions for the end-investors, or
for determining if adherence to the model recommendations is appropriate for the individual
end-investor. Typically, the Program Sponsor has sole authority and responsibility for
implementing the model portfolios for its client accounts. The Program Sponsor is responsible
for understanding and evaluating each investor’s identity, circumstances, financial condition,
portfolio holdings, tax situation, regulatory status, financial needs and goals, making
determinations as to whether a model portfolio provided by Osmosis is appropriate for each
potential investor, and reporting and communicating with the investors as to their investments.
As of March 31, 2023 Osmosis Investment Management US LLC SMA and Funds’ discretionary
assets under management were $ $648,601,006.