Lombard Odier Investment Managers has launched a Ucits-compliant global responsible equities fund to complement its existing range of impact investment funds.
The LO Funds – Global Responsible Equity fund launches with $83 million of assets under management and has a process built on a proprietary ESG measurement approach that aims to identify sustainable businesses.
This is while head of ESG solutions Robert de Guigné is responsible for the ESG advisory function, which is fully integrated in the investment process.
The fund targets a smaller carbon footprint than the broader market as it avoids companies that are engaged in ‘non-ethical’ businesses, exposed to structural regulatory risk or the subject of severe controversies.
Commenting on the launch, Robert de Guigné said: ‘By systematically screening for factor exposures, we aim to identify sustainable companies with strong financial and business financials at attractive valuations.
‘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 is the latest addition to its impact investment fund range as Lombard Odier manages more than CHF1 billion in responsible factor-based portfolios as of 31 January 2017.
In January 2017, Lombard Odier IM announced a deal with UK boutique specialised in climate change bonds Affirmative Investment Management, furthering its push into impact-focused investing.
Speaking to Citywire Switzerland in December in connection with this, Bertrand Gacon head of impact investing at the firm revealed plans to launch a new climate bond strategy.