The following risks may be materially relevant but may not always be adequately captured by the summary risk indicator and may cause additional loss: Credit risk and Operational risk and risks related to asset safekeeping.

BBB-BB Fundamental “Crossover”:

An investment grade strategy enhanced by crossover.

Our crossover Sub-Funds aim to build a corporate credit portfolio with an average investment grade rating. We enhance yield by prudently selecting crossover bonds rated BBB to BB. We believe the crossover space can provide attractive returns in relation to investment grade, while seeking to avoid the more pronounced risk of lower-rated high yield.1


sub-fund information.

Click here for more information on LO Funds - Global BBB-BB Fundamental

Click here for more information on LO Funds - Euro BBB-BB Fundamental


Crossover: a strategic market segment.

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USD 6.5 trillion market 
The crossover segment is large, diverse and growing, forming a stable and key part of the corporate bond universe2.
Higher risk-adjusted returns over time 
Global crossover credit has provided higher returns compared to investment grade bonds over the past 20 years3.
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Improving fundamentals
BBB to BB issuers tend to improve their credit quality relative to other rating categories4.  

Lower risk than high yield 
Historically, the crossover segment has shown lower drawdown risk than equities or high yield credit5.



Why invest?

A continuous search for sustainable bond opportunities.

We believe adding crossover bonds to an investment grade portfolio offers the best of both worlds: improved returns with limited risks.


Focus on quality: We research both financial and extra-financial metrics when assessing fundamental credit quality, and allocate issuers’ weights accordingly. 

High conviction: The portfolio is managed actively across the crossover space, aiming to generate higher risk-adjusted return potential compared to traditional investment grade benchmarks. 

A pioneer since 2010: A seasoned team of 12 fixed income specialists support an innovative investment approach that separates alpha generation from benchmark replication.


Adding crossover bonds

Rising stars are improving credits that are likely to be upgraded from high yield to investment grade. 

Fallen angels arise when investment grade bonds are first downgraded. Forced sales can push prices below market value, resulting in higher yields with less credit risk than lower-rated bonds. 

Incorporating crossover bonds in an investment grade credit portfolio could therefore improve its overall risk-return profile and increase exposure to issuers with improving fundamentals.6

investment team.

LOcom-AuthorsAM-Zufferey.png Yannik Zufferey, PHD
CIO Fixed Income
LOcom-AuthorsAM-Sita.png Leslie Leigh
Client Portfolio Manager

Alpha Generation

Ashton Parker Portfolio Manager/Head of Credit Research 
Denise Yung, CFA Portfolio Manager/Credit Analyst 
Philipp Burckhardt, CFA Portfolio Manager/Credit Analyst 
Anando Maitra, CFA Portfolio Manager 
David Perez, CFA Portfolio Manager/Credit Analyst 
Caroline Reffell, Credit Analyst 
Giuseppe Setzi, Credit Analyst

Fundamental Beta

Jérôme Collet Senior Portfolio Manager 
Raphael Kull, CFA Junior Portfolio Manager

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sub-fund information.

Click here for more information on LO Funds - Global BBB-BB Fundamental

Click here for more information on LO Funds - Euro BBB-BB Fundamental



1 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.
2 Source: LOIM, Barclays POINT, Bloomberg Barclays Indices, market value as at 31 December 2019. 
3 Source: Bloomberg Barclays indices, gross of fees in EUR. Average returns p.a. differential of Global Corporate BBB-BB over Global Investment Grade between 31 December 2000 and 31 December 2019. Past performance is not a reliable indicator or a guarantee of future results. There can be no assurance that the investment objective will be achieved or that there will be a return on capital or that a substantial loss will not be incurred. 
4 Source: LOIM calculations, Moody’s Annual Default Study: Corporate Default and Recovery Rates, 1920-2018. Measured as annual upgrade rate less downgrade rate from Moody’s. 
5 Source: Barclays POINT, Bloomberg Barclays Indices, LOIM calculations, 31 December 1988 to 31 December 2019. These calculations are indicative and based on past performance of certain products. They do not constitute a reliable indicator of future performance of the Sub-Funds.

6 There can be no assurance that investment objectives will be achieved or that there will be a return on capital or that a substantial loss will not be incurred. Source: Morningstar, 31 December 2019. LO Funds – Euro BBB-BB Fundamental and LO Funds – Global BBB-BB Fundamental (Class EUR NA). See here for more information about the methodology. Awards and ratings may vary without notice. Past performance is not a guarantee or a reliable indicator of future results

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 and within the meaning of the EU Directive 2011/ 61/EU on Alternative Investment Fund Managers(AIFMD). The purpose of the Management Company is the creation, promotion, administration, management and the marketing of Luxembourg and foreign UCITS, alternative investment funds(“AIFs”) and other regulated funds, collective investment vehicles or other investment vehicles, as well as the offering of portfolio management and investment advisory services. This marketing document relates to “Global BBB-BB Fundamental” and “Euro BBB-BB Fundamental,” each 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 isk 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. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates( collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays is affiliated with Lombard Odier, and neither approves, endorses, reviews or recommends the Sub-Funds. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Sub-Funds, and neither shall be liable in any way to the investors.
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.
© 2020 Morningstar, Inc. All rights reserved. The information contained herein:
(1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee reliable indicator of future results.
Nevertheless, all information and opinions as well as the prices, market valuations and calculations indicated herein may change without notice. Source of the figures: Unless otherwise stated, figures are prepared by Lombard Odier Asset Management (Europe) Limited. The tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Lombard Odier does not provide tax advice and it is up to each investor to consult with its own tax advisors. 
Austria – Paying agent: Erste Bank der österreichischen Sparkassen AG.
Belgium – Financial services provider: CACEIS Belgium S.A. The Sub-Fund is not appropriate for Belgian retail investors unless the investment subscription is more than EUR 250,000. Please contact your tax advisor to identify the impacts of the Belgian tax “TOB” (“Taxe sur les Operations Boursières”) on your transactions, as well as the impacts of the withholding tax(“Précomptes mobiliers”). Lombard Odier has an internal Complaints Management Service. You can lodge a claim via your Relationship Manager or directly to Lombard Odier (Europe) S.A. Luxembourg, Belgium Branch, Claim Management Service, Avenue Louise 81, Box 12, 1050 Brussels, Fax: (+32) 2 543 08. Alternatively you can address your complaint free of charge to the national complaint service in Belgium, OMBUDSMAN: North Gate II, Boulevard du Roi Albert II, n°8 Boîte 2 2, 1000 Brussels, Tel : (+32) 2 545 77 70,
Fax : (+32) 2 545 77 79, Email: Ombudsman@Ombusfin.be.
France – Centralising agent: CACEIS Bank.
Germany – German Information and Paying agent: DekaBank Deutsche Girozentrale. Italy – Paying agents: Société Générale Securities Services S.p.A., State Street Bank International GmbH – Succursale Italia, Banca Sella Holding S.p.A., Allfunds Bank S.A.U., Milan Branch, BNP Paribas Securities Services, CACEIS Bank, Italy Branch. Liechtenstein – Paying agent: LGT Bank AG.
Luxembourg – Depositary, central administration agent, registrar, transfer Agent, paying agent and listing agent: CACEIS Bank, Luxembourg Branch.
Netherlands – Paying agent: Lombard Odier Asset Management (Europe) Ltd, Netherlands Branch.
Spain – Paying agent: Allfunds Bank S.A.U. – CNMV Number: 498.
Sweden – Paying agent: Skandinaviska Enskilda Banken AB (publ).
Switzerland – The Sub-Fund is registered with the Swiss Federal Financial Market Supervisory Authority (FINMA). The Offering Documents together with the other Shareholders’ information are available free of charge at the Swiss Representative: Lombard Odier Asset Management (Switzerland) S.A., 6, avenue des Morgines, 1213 Petit-Lancy, Switzerland. Swiss Paying Agent: Banque Lombard Odier & Co Ltd. 11, rue de la Corraterie 1204 Genève, Switzerland. Publications about the Sub-Fund: www.fundinfo.com. The issue and redemption prices and / or the net asset value (with the mention “excluding commissions”) of the Share classes distributed in Switzerland: www.swissfunddata.ch andwww.fundinfo.com. Bank Lombard Odier & Co Ltd is a bank and securities dealer authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA).
United Kingdom – This document is a financial promotion and has been approved for the purposes of Section 21 of the Financial Services and Markets Act 2000, by Lombard Odier Asset Management (Europe) Limited. It is approved for distribution by Lombard Odier (Europe) S.A., London Branch for Retail Clients in the United Kingdom. The Sub-Fund is a Recognised scheme in the United Kingdom under the Financial Services and Markets Act 2000. UK regulation for the protection of retail clients in the UK and the compensation available under the UK Financial Services Compensation scheme does not apply in respect of any investment or services provided by an overseas person. UK facilities agent: Lombard Odier Asset Management (Europe) Limited. Lombard Odier (Europe) S.A. UK Branch is a credit institution regulated in the UK by the Prudential Regulation Authority (PRA) and subject to limited regulation by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). Details of the extent of our authorization and regulation by the PRA and regulation by the FCA are available from us on request. Chile – The Sub-Funds have been approved by the Comision Clasificadora de Riesgo (CCR) in Chile for distribution to Chilean Pension Funds under Agreement Nr 32 of the CCR.
Singapore – The Sub-Funds are not authorised or recognised by the Monetary Authority of Singapore (“MAS”) and the Shares are not allowed to be offered to the retail public in Singapore. Each Sub-Fund is a restricted scheme under the Sixth Schedule to the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations of Singapore. This document can be transmitted only (i) to “institutional investors” pursuant to Section 304 of the Securities and Futures Act, Chapter 289 of Singapore(the“Act”),(ii) to“relevant persons” pursuant to Section 305(1) of the Act, (iii) to persons who meet the requirements of an offer made pursuant to Section 305(2) of the Act, or (iv) pursuant to, and in accordance with the conditions of, other applicable exemption provisions of the Act.
European Union Members: This marketing communication has been approved for issue by Lombard Odier (Europe) S.A. The entity is a credit institution authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. Lombard Odier (Europe) S.A. branches are operating in the following territories: France: Lombard Odier (Europe). S.A. Succursale en France, a credit institution under limited supervision in France by the Autorité decontrôle prudentiel et de résolution (ACPR) and by the Autorité des marchés financiers(AMF) in respect of its investment services activities; Italy: Lombard Odier (Europe) S.A. Succursale in Italia, Regulated in Italy by the Commissione Nazionale per la Società e la Borsa (CONSOB) and la Banca d’Italia under National Identification Number 09514880963; Netherlands: Lombard Odier (Europe) S.A. Netherlands Branch, Credit institution regulated by the De Nederlandsche Bank (DNB) and Autoriteit Financiële Markten; Spain: Lombard Odier (Europe) S.A. Sucursal en España, Lombard Odier Gestión (España) S.G.I.I.C., S.A.U., credit institutions under limited supervision in Spain by the Bancode España and the Comisión Nacional del Mercado de Valores (CNMV).
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