Lombard Odier Investment Managers expands impact investment offering with a global responsible equities fund

Lombard Odier Investment Managers (‘Lombard Odier IM’) has expanded its impact investment offering with the launch of the LO Funds – Global Responsible Equity (the Fund), which aims to deliver quantifiable social and environmental impact hand-in-hand with excess financial performance.

The Fund combines Lombard Odier’s deep heritage in responsible investing with its proprietary factor-based approach to target robust risk-adjusted returns. Underpinning the process is a proprietary ESG measurement approach that focuses on tangible results aiming to identify truly sustainable businesses. The fund also targets a smaller carbon footprint than the broader market. Lombard Odier manages more than CHF 1 billion in responsible factor-based portfolios (as at 31 January 2017).

The Fund which launches with USD 83million assets under management, is managed by Alexandre Déruaz, Head of Systematic Equities, and Nicolas Mieszkalski, Co-Portfolio Manager. Robert de Guigné, Head of ESG Solutions, is responsible for the ESG Advisory function that is fully integrated in the investment process.

The Fund aims to avoid companies that are engaged in non-ethical businesses; exposed to structural regulatory risks; and/or the subject of severe controversies. Using the proprietary ESG measurement approach the Fund excludes the worst companies in each sector and seeks to identify truly sustainable businesses. The Fund then seeks to minimise its carbon footprint by focusing on the lowest carbon emitters in each sector and it employs a proprietary factor-based approach to systematically screen for the strongest financial and business fundamentals with potential for future growth and for the most attractive valuations and market trends.

Carolina Minio-Paluello, Global Head of Sales and Solutions at Lombard Odier IM, comments: “Lombard Odier IM has not just witnessed the evolution of the impact space over the last 20 years, it has been at the forefront of this movement towards deeper and broader impact solutions. The solutions we have designed for our clients have always tried to push the limits of a true impact focus, integrating it into the heart of our investment processes. We believe investments should deliver not only strong financial performance but also solutions to the world’s most pressing social and environmental challenges. The new Global Responsible Equities fund follows the launch of our Global Climate Bond Fund, as our latest solution to help investors create impact without compromising returns.”

Robert de Guigné, comments: “Our investment approach has been designed to integrate ESG impact together with target excess financial performance at every level of our process. By systematically screening for factor exposures, we aim to identify sustainable companies with strong financial and business financials at attractive valuations. This is combined with our approach to ESG that places the emphasis on results, seeking companies that are achieving positive outcomes, not simply making promises. Incorporating non-financial considerations into the investment process helps investors to make a positive impact and acts as a risk-protection mechanism that we believe can enhance returns over the long-term.”

The Fund has a management fee of 0.60%. It is UCITS compliant and available to investors in USD, EUR, CHF and GBP share classes in Austria, Belgium, France, Finland, Germany, Italy, Liechtenstein, the Netherlands, Norway, Spain, Sweden, Switzerland and the UK.

About Lombard Odier IM
Lombard Odier Investment Managers is the asset management business of the Lombard Odier Group, which has been wholly owned and funded by its partners since its establishment in 1796.

Our independent structure and our partners’ involvement in the day-to-day management of the firm allow us to focus entirely on our clients’ needs, fostering trust and alignment of interest. Throughout our history, we have been rethinking the old and embracing the new in our efforts to help our clients achieve their objectives in a changing world.

We provide a range of investment solutions to a group of clients that are all long-term oriented in their many and diverse ways. Our heritage, and our combination of the best of conservatism and innovation, keeps us well-positioned to create lasting value for our clients. Our investment capabilities span Fixed Income, Convertibles, Equities, Multi-Asset, Alternatives and Impact Investing.

With 128 investment professionals, we are a global business with a network of 13 offices across Europe, Asia and North America and assets under management of 45 billion CHF (as at 31 December 2016).

Important Information:
This document has been prepared by Lombard Odier Funds (Europe) S.A. and is issued by Lombard Odier Asset Management (Europe) Limited, authorised and regulated by the Financial Conduct Authority (the “FCA”), and entered on the FCA register with registration number 515393.
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