global climate bond fund: a dedicated impact solution

global climate bond fund: a dedicated impact solution

 

in partnership with.


AIM-Logo.jpg

 

Once occupying a niche space in investors’ portfolios, climate bonds form a fast-growing market1 that offers investment-grade bond investors the potential to add real impact.

The size and diversity of this market today makes it possible to design an investment strategy that is well-diversified in terms of credit rating, duration, region and sector.

 

sub-fund information.

Click here to access the sub-fund information.

 

a pressing need.

 

1 Climate-disasters.png 3-Crop-yields.png
23 million people
Displaced every year since 2008 by climate disasters2
-10% to -25%
Crop yields decrease in 30 years if nothing is done3 
    2 Climate-change.png  
  250,000 people
Estimated to die every year between 2030 and 2050 due to climate change4
 

 

 

2017 impact highlights

 

We invest in 17/17 of the UN Sustainable development goals.

 

Click here to discover the positive outcomes we were able to create through the underlying investments of LO Funds – Global Climate Bond.

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why invest?

Targeting yields in excess of the broad investment-grade bond market, with comparable credit quality, as well as measurable environment impact​.5

  • Climate bonds provide capital for projects that have a verifiable impact in mitigating and helping the world adapt to the effects of climate change.
  • An additional estimated USD 700 billion of annual investment is needed to meet international commitments to limit climate change to 2°C above pre-industrial levels.6
  • Highly-rated issuers such as the World Bank are active in this field, as are many well-known organisations across the globe.7
  • The Sub-Fund taps into a growing investment universe which includes labelled green bonds and non-labelled climate-aligned bonds, both of which can help meet a pressing need for impact capital. 

the partnership.

 

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Stephen Fitzgerald 
Managing Partner, AIM

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Stuart Kinnersley 
Managing Partner, AIM

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Dr Judith Moore 
Partner, Verification & Impact, AIM

LOcom-AuthorsAM-Minio-Paluello.png Dr Carolina Minio-Paluello
Global Head of Solutions, Limited Partner, LOIM

 

investment philosophy.

 

Lombard Odier Investment Managers has partnered with Affirmative Investment Management (AIM), the first asset manager dedicated to fixed income impact strategies, to create this exciting opportunity to finance positive climate and social impact. 

At Lombard Odier Investment Managers, we believe sustainability will drive future return potential 8

 ♦

A distinct approach 
Our proprietary climate bond investment universe, SPECTRUM Bonds® 9  looks at the financial robustness of issuers, their ESG practices and how the use of bond proceeds contribute to preserving our environment in the long term.

 ♦ Specialist expertise 
AIM performs independent verification and monitoring to expand the invest¬ment universe to include non-labelled bonds. This deep analysis and engagement allows for enhanced market insight, credit analysis and risk management processes.
 ♦ Impact reporting 
We believe it is important to evidence the environmental and social out¬comes arising from the Sub-Fund’s underlying investments. The portfolio is aligned to the UN Sustainable Development Goals and Paris Climate Change agreement. AIM’s reporting capability provides measurable insight into the aggregated positive impact of investors’ investments. 
 ♦ The end result 
The result is a diversified bond portfolio that seeks to create a positive en¬vironmental and social impact, while aiming to provide a higher yield and lower turnover than a typical investment-grade portfolio8.

 

 

sub-fund information.

Click here to access the sub-fund information.

sources.

Source: Climate Bonds Initiative, January 2018.

2 Source: Internal Displacement Monitoring Center (IDMC), 2015. 

3 Source: Working Group II Report, IPCC, 2014.

4 Source: Climate change and health, World Health Organisation, February 2018.

There can be no assurance that the Sub-Fund’s investment objective will be achieved or that there will be a return on capital or that a substantial loss will not be incurred.

6 Source: World Economic Forum, COP 21.

7 The portfolio information provided in this document is for illustrative purposes only and does not purport to be a recommendation of an investment in, or a comprehensive statement of all of the factors or considerations which may be relevant to an investment in, the referenced securities.

8 There can be no assurance that the Sub-Fund’s investment objective will be achieved, that there will be a return on capital or that a substantial loss will not be incurred.

9 Aligned to the UN Sustainable Development Goals and Paris Climate Change agreement.

 

important information.
Lombard Odier Funds (hereinafter the “Fund”) is a Luxembourg investment company with variable capital (SICAV). The Fund is authorised and regulated by the Luxembourg Supervisory Authority of the Financial Sector (CSSF) as an Undertaking for Collective Investments in Transferable Securities UCITS under Part I of the Luxembourg law of the 17 December 2010 implementing the European directive 2009/65/EC, as amended (“UCITS Directive”). The Management Company of the Fund is Lombard Odier Funds (Europe) S.A. (hereinafter the “Management Company”), a Luxembourg based public limited company (SA), having its registered office at 291, route d’Arlon, 1150 Luxembourg, Grand Duchy of Luxembourg, authorised and regulated by the CSSF as a Management Company within the meaning of EU Directive 2009/65/EC, as amended. This marketing document relates to “LO Funds–Global Climate Bond,” a Sub-Fund of Lombard Odier Funds (hereinafter the “Sub-Fund”). 
This marketing communication was prepared by Lombard Odier Asset Management (Europe) Limited. 
The prospectus, the articles of incorporation, the Key Investor Information Documents, the subscription form and the most recent annual and semi-annual reports are the only official offering documents of the Sub-Fund’s shares (the “Offering Documents”). The Offering Documents are available in English, French, German and Italian at www.loim.com and can be requested free of charge at the registered office of the Sub-Fund in Luxembourg: 291 route d’Arlon, 1150 Luxembourg, Grand Duchy of Luxembourg. 
The information contained in this marketing communication does not take into account any individual’s specific circumstances, objectives or needs and does not constitute research or that any investment strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes a personal investment advice to any investor. This marketing communication is not intended to substitute any professional advice on investment in financial products. Before making an investment in the Sub-Fund, an investor should read the entire Offering Documents, and in particular the risk factors pertaining to an investment in the Sub- Fund. We would like to draw the investor’s attention toward the long-term nature of delivering returns across the economic cycle and the use of financial derivative instruments as part of the investment strategy may result in a higher level of leverage and increase the overall risk exposure of the Sub-Fund and the volatility of its Net Asset Value. Investors should take care to assess the suitability of such investment to his/her particular risk profile and circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. There can be no assurance that the Sub-Fund’s investment objective will be achieved or that there will be a return on capital. Past performance is not a reliable indicator of future results. Where the Sub-Fund is denominated in a currency other than an investor’s base currency, changes in the rate of exchange may have an adverse effect on price and income. Please take note of the risk factors. 
Any benchmarks/indices cited herein are provided for information purposes only. No benchmark/ index is directly comparable to the investment objectives, strategy or universe of a Sub-Fund. The performance of a benchmark shall not be indicative of past or future performance of any Sub-Fund. It should not be assumed that the relevant Sub-Fund will invest in any specific securities that comprise any index, nor should it be understood to mean that there is a correlation between such Sub-Fund’s returns and any index returns. Target performance/risk represents a portfolio construction goal. It does not represent past performance/risk and may not be representative of actual future performance/ risk. 
The information and analysis contained herein are based on sources considered to be reliable. Lombard Odier makes its best efforts to ensure the timeliness, accuracy, and completeness of the information contained in this marketing communication.