Fund Management
What's New In Investments, Funds? Lombard Odier Investment Managers
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The latest offerings in investments, such as funds and structured products, and other notable developments.
Lombard Odier Investment Managers
Lombard
Odier Investment Managers has launched four ‘TargetNetZero’
strategies in fixed income and equities aimed at putting
portfolios and companies in high-emitting sectors on a faster
track to debcarbonisation.
Its TargetNetZero Global Equity and TargetNetZero European Equities strategies will tilt the MSCI World and MSCI Europe indices towards companies in climate-relevant sectors that are aligning to the Paris Agreement and demonstrating rapid decarbonisation plans.
“Carbon footprints alone do not tell us the full picture of climate risks in a portfolio. We believe that maintaining a diversified portfolio that identifies companies on a strong decarbonisation path, irrespective of sector, will help accelerate the transition to net zero and provide compelling returns for investors,” Hubert Keller, managing partner of Lombard Odier explained of the strategic approach.
The group has developed a four-step decarbonisation process which, it says, will be more forward-looking and nuanced on the climate transition and form “the backbone” of the four strategies.
Firms are increasingly signing up to the Net Zero Asset Managers initiative, including LOIM, in order to be more accountable on climate disclosure and speed up allocation into low-carbon solutions amid a proliferation of net-zero pledges.
"Nearly 80 per cent of the global economy is now subject to a net-zero target - a stunning acceleration from 16 per cent last year," Dr Christopher Kaminker, head of sustainable investment research, strategy and stewardship at Lombard Odier, said. "This requires diversified strategies that are able to distinguish the leaders from the laggards, and redeploy capital accordingly. And, equally, "tilt away from those that remain poorly aligned to the transition ahead."