TargetNetZero Global & Europe Equity
Net Zero is about investing in the transition.
At Lombard Odier, we believe that investors need to re-think their approach to net zero.
Although the industry has started to understand the urgency around decarbonisation, many of the solutions available in the market are simplistic, do not sufficiently address the problem and, in some cases, significantly increase the risks and biases within portfolios.
Our TargetNetZero equity funds have a wide range of climate objectives covering the risk of transition, the opportunities and the physical risks associated with climate change.
Portfolios include companies already targeting net zero CO2 emissions by 2050, as well as those without such targets but who may be brought into line through regulatory action, investor engagement and market changes.
TargetNetZero: A focus on the reduction in emissions across the economy
1. Investors need to act now | |
2. The numbers are staggering1 | |
3. Exclusions lead to missed investment opportunities |
Source: LOIM. For illustrative purposes only. 1World Resources Institute; excludes land use change.
Why invest?
Aligning to the climate transition, our equities funds are aimed at accelerating the transition to net zero.
~ Hubert Keller, Senior Managing Partner of Lombard Odier
A holistic approach from LOIM spanning the widest opportunity set:
i. Reduce carbon footprints
ii. Reduce climate transition risk
iii.Offer a viable route for investing across the entire economy
iv. Accelerate climate transition
v. Maintain portfolio diversification
vi. Target climate growth opportunities
Seeking greater climate impact while decarbonising at a faster rate.
The sustainability lens provides greater confidence in the assessment of issuers to separate the winners and losers and capture long-term opportunities in decarbonisation.
• Benchmark: MSCI World/Europe2
• Integrate ESG scores: targeting to be in line or better than the benchmark2
• Controlled: factor/style, sector, country bias
• Low tracking-error: 0.5%-1% ex-ante
Compared to our peers, at Lombard Odier Investment Managers, we aim to deliver on three parameters:
Redeployment of capital | Rising awareness | Market forces |
---|---|---|
Reducing the transition risk for investors. Thus generating risk-adjusted returns as our global economy shifts from WILD to CLICTM 3. | Offering an investment opportunity in line with the climate goal to limit greenhouses gases and consumer demand. | New targets and regulations are increasingly focused on circularity, nature, equality and net zero. Technological innovation and economies of scale are driving down the costs of CLICTM solutions.3 |
1Source: For illustrative purposes only. 2 MSCI World for the sub-fund TargetNetZero Global Equity & MSCI Europe for for the sub-fund TargetNetZero Europe Equity respectively. No benchmark/index is directly comparable to the investment objectives, strategy or universe of a fund. 3 ‘WILD’: Wasteful, Idle, Lopsided, Dirty. CLICTM: Circular, Lean, Inclusive, Clean economic model.
Investment philosophy and process.
At Lombard Odier Investment Managers, we incorporate proprietary sustainability tools and expert intelligence to align temperature target.
Our investment philosophy: a flexible, disciplined, and transparent approach to deliver sustainable returns.
Source: LOIM analysis. For illustrative purpose only. Sustainable Investment Research Strategy & Stewardship (SIRSS) and Environment, Social and Governance (ESG) are LOIM's transversal sustainability teams. 1 “Ice cubes” that are significantly reducing global warming. 2 “Burning logs” that are significantly increasing global warming. 3 Coal power, coal mining, unconventional oil and gas. There can be no assurance that investment objectives will be achieved or that there will be a return on capital.
Investment team.
Laurent Joué | |
Nicolas Mieszkalski Portfolio Manager – Systematic Equities | |
Alexey Medvedev, PhD | |
+1 Portfolio Manager and 1 analyst |
Sustainable Investment Research, Strategy & Stewardship team (SIRSS)
Maxime Perrin Head of Sustainable Investment | |
Dr Thomas Hohne-Sparborth, PhD
| |
+17 sustainability experts and sector analyst |