investment viewpoints

LOIM appointed by Touchstone Investments for Climate Transition ETF

LOIM launches Global Carbon Opportunity Strategy




LOIM to serve as sub-advisory partner for HEAT; outsourced solution for cutting edge sustainable transition.


Lombard Odier Investment Managers (‘LOIM’) has been appointed by Touchstone Investments, as sub-adviser for its newly launched Climate Transition ETF (HEAT: Cboe BZX).

The mandate was awarded following a competitive tender process, in line with Touchstone’s pursuit of best-in-breed asset management partnerships across its global product suite.

HEAT is an actively managed ETF that aims to invest in companies that are leading the development of solutions for, or that will benefit from, the accelerating transition away from a climate-damaged, carbon-constrained economy.

HEAT will leverage LOIM’s expertise in sustainable investing to drive performance for Touchstone’s clients and help them meet their long-term climate and investment goals. Through the partnership, Touchstone will also benefit from LOIM’s sustainable investment research capabilities to provide an investment framework for the ETF and further reinforce its ability to identify strong investment opportunities amid the climate transition.

Paul Udall, Portfolio Manager for HEAT at LOIM, said: “The transition to a net-zero and climate resilient world is one of the greatest challenges – and investment opportunities – of our time. We are thrilled to have been selected by Touchstone as the sub-advisory partner of choice to expand their capability in this space. We have a shared prioritisation of actively managed strategies that pursue meaningful progress against climate goals and robust performance for clients.”

Matthew Barry, Vice President of Product Management and Head of Capital Markets for Touchstone, continued: “Touchstone is committed to providing access to world-class institutional asset management strategies that capitalise on the pre-eminent themes shaping the global economy. With interest in sustainable investment remaining high, the Climate Transition ETF provides advisors and the investors they serve with an opportunity to better position investment portfolios and meet long-term goals, while driving the climate transition forward.”

HEAT is Touchstone’s fifth active ETF and first thematic ETF offering. It will complement Touchstone’s broader suite of institutional asset management strategies – including mutual funds and ETFs – available as part its Distinctively Active™ range.

About Lombard Odier IM

At Lombard Odier Investment Managers, we are rethinkers with one goal in mind. To provide our clients with outstanding investment solutions that meet their needs for the long term and evolve to thrive in the challenging world in which we all live. 

We are focused investment specialists, seeking out investment opportunities that lie on less trodden paths, where our diverse and talented team can add genuine, persistent, value to our clients. We constantly rethink what we know and do, innovating to create new strategies and develop new ways of investing. 

We believe that the next economic revolution has already begun, and that sustainability will be a major driver of returns for the foreseeable future and beyond. For those with the skills to adapt to this new reality, sustainability would create new sources of alpha, open up new investment opportunities and lead to enhanced return and reduced portfolio risk.

Our team of sustainability experts combine sophisticated data sources, academic rigour, and technical innovation to create leading-edge, science-based tools that provide unique insights that are available to all our investment professionals. 

These unique insights are reflected directly in our growing range of dedicated sustainable investment strategies that are aligned to this core belief, that our economic model must move from being Wasteful, Idle, Lopsided and Dirty to become Circular, Lean, Inclusive and Clean. We call this The CLIC® Economy.

With more than 180 investment professionals, we are a global business with a network of 13 offices across Europe, Asia and North America and have assets under management of 63 billion CHF (as of 31 December 2022).



Celeste Herriger
Head of PR, Lombard Odier Investment Managers
Tel.: +44 20 3206 6167

important information.

This document has been issued by Lombard Odier Funds (Europe) S.A. a Luxembourg based public limited company (SA), having its registered office at 291, route d’Arlon, 1150 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.
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Sources of the figures: 

EPA (2020) Global Greenhouse Gas Emissions Data
FAO (2021) COP26: Agricultural expansion drives almost 90 percent of global deforestation
Semenchuk et al. (2022) Relative effects of land conversion and land-use intensity on terrestrial vertebrate diversity
UNEP (2021) UN calls on countries to meet commitments to restore one billion hectares of land
PBL Netherlands Environmental Assessment Agency (2022) The Global Potential for Land Restoration
LOIM analysis

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Views and opinions expressed are for informational purposes only and do not constitute a recommendation by LOIM to buy, sell or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change. They should not be construed as investment advice.

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