our use of cookies.

We use cookies that are necessary to make our site work as well as analytics cookie and third-party cookies to monitor our traffic and to personalise content and ads.

Please click “Cookies Settings” for details on how to withdraw your consent and how to block cookies. For more detailed information about the cookies we use and of who we work this see our cookies policy

Necessary cookies:

Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website and cannot be switched off in our systems. You can set your browser to block or alert you about these cookies, but some parts of the site will then not work. The website cannot function properly without these cookies.

Statistic and marketing cookies:

Statistic cookies help website owners to understand how visitors interact with websites by collecting and reporting information

Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers. We work with third parties and make use of third party cookies to make advertising messaging more relevant to you both on and off this website.

Manage cookiesAccept & continue
Accept allSave settings
English
      • lombardodier.com
      close
      insights.
      insights.insights
      sustainable investment

      For net-zero investors, is Europe the most investable economy?

      July 24, 2025
      Is Europe leading the net-zero race? With a legally binding target, strong industrial base and clear policy, we believe it’s a highly investable, long-term allocation.
      sustainable investment

      For net-zero investors, is Europe the most investable economy?

      convertibles

      With multiple sources of return, convertible bonds are well-suited for uncertainty in today’s markets

      July 23, 2025
      The asset class offers equity upside, yield, credit and volatility-driven return potential – plus downside protection – and this adaptability makes them a strategic tool.
      convertibles

      With multiple sources of return, convertible bonds are well-suited for uncertainty in today’s markets

      fixed income

      Positive macroeconomic drivers for Asia bonds are in play

      July 16, 2025
      Supportive macroeconomic trends – including expected US rate cuts, regional growth and policy momentum – support Asia fixed income. We share our H2 outlook.
      fixed income

      Positive macroeconomic drivers for Asia bonds are in play

      All insightsrethinking through the noiseSpecial ReportsInvestor survey: The Next DecadeSharpe thinkingQ3 2024: The value of a contrarian mindsetQ4 2024: Our 2025 investment outlooks Q1 2025: exploiting divergence for investor advantageglossary
      sustainability.
      sustainability.sustainability
      sustainability.
      a sustainable economy through systems changeour stewardship frameworkour place within the European SFDR
      an overview of EU regulationsustainability at Lombard Odier
      TargetNetZero SimulatorWhy nature?
      investment strategies.
      investment strategies.investment strategies
      EquitiesSustainableRegionalThematic
      Fixed incomeSustainableGlobalRegionalMoney Market
      Alternatives DataEdge Market Neutral DOM Global MacroGlobal Carbon OpportunityLombard Odier Private AssetsPlastic Circularity StrategySustainable Private Credit Transition Materials
      Multi-asset All Roads
      Convertibles Global Convertible Bonds
      investment funds.
      about us.
      about us.about uslombardodier.com
      about us.
      presscareerscontactour clientsinstitutionalwholesale clients
      lombardodier.com
      • investment funds.
      • Fixed Income.
      • LO Funds - Asia Value Bond, Syst. NAV Hdg, X1, (EUR) I D

      LO Funds
      Asia Value Bond

      Syst. NAV Hdg, X1, (EUR) I D
        ISINLU1766724980

        LO Funds - Asia Value Bond, Syst. NAV Hdg, X1, (EUR) I D

        ISINLU1766724980
        funds listsustainability report

        General information

        Asset ClassFixed Income
        CategoryCredit
        StrategyRegional Fixed Income
        Fund base currencyUSD
        Share Class reference currencyEUR Hedged
        BenchmarkJP Morgan Asia Credit Index EUR Hdg.
        Dividend Policydistribution
        Total Assets (all classes) in mnEUR 1617.2130.06.2025
        Assets (share class) in mnEUR 434.8230.06.2025
        Number of positions19030.06.2025
        TER0.36%30.09.2024
        Swinging Single PricingYes

        Documents

        Key Information Document
        English (pdf)
          Prospectus
          English (pdf)
            Fact Sheet (marketing document)
            English (pdf)
              Newsletter IM - Professional
              English (pdf)
                Sustainability-related disclosures
                English (pdf)

                  Risk rating

                  Lower riskHigher risk
                  1
                  1
                  2
                  2
                  3
                  3
                  4
                  4
                  5
                  5
                  6
                  6
                  7
                  7
                  Typically lower rewardTypically higher reward
                  Past performance is not a guarantee of future results. If the funds are denominated in a currency other than that in which the majority of the investor's assets are held, the investor should be aware that changes in rates of exchange may affect the value of the funds' underlying assets. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.
                  • Performance & Statistics
                  • Highlights
                  • Breakdowns
                  • Managers
                  • Legal information
                  • Dealing
                  • Security Numbers
                  • Prices
                  • Documents
                  • Newsletter

                  Performance & Statistics

                  Rolling 12 months Performance (%)Cumulative performance (%)Annualised performance (%)
                  Loading...
                  As of 
                  Share Class (Net)
                  Benchmark
                  Sorry, we could not retrieve the data for this share class.
                  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 fund.
                  Loading...
                  As of 
                  Share Class (Net)
                  Benchmark
                  Sorry, we could not retrieve the data for this share class.
                  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 fund.
                  Loading...
                  As of 
                  Share Class (Net)
                  Benchmark
                  Sorry, we could not retrieve the data for this share class.
                  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 fund.
                  Since launch
                  • 1 month
                  • 3 months
                  • 6 months
                  • 1 year
                  • 3 years
                  • 5 years
                  • 2025 YTD
                  • 2024 YTD
                  • 2023 YTD
                  • 2022 YTD
                  • 2021 YTD
                  • 2020 YTD
                  • 2019 YTD
                  • 2018 YTD
                  • Since launch
                  • Custom
                  Export
                  pdfjpgpngsvg
                  csvxls
                  FundBenchmark
                  Total Return10.73%5.25%
                  Annualized Return1.39%0.70%
                  Annualized Volatility11.47%5.37%
                  Sharpe Ratio0.05-0.03
                  Downside Deviation8.54%4.04%
                  Positive Months56.18%59.55%
                  Maximum Drawdown-34.87%-21.17%
                  *  Risk-Free Rate 0.87%Target Rate 0.87%
                  Calculations based on monthly time series
                  Earliest Date: 21.03.2018, Latest date: 25.07.2025
                  Fund vs Benchmark
                  Correlation0.942
                  R20.888
                  Alpha0.03%
                  Beta2.011
                  Tracking Error6.66%
                  Information Ratio0.149

                  Key risks

                  The following risks may be materially relevant

                  but may not always be adequately captured by the synthetic risk indicator and may cause additional loss:


                   
                  Credit risk: A significant level of investment in debt securities or risky securities implies that the risk of, or actual, default may have a material impact on performance. The likelihood of this depends on the credit-worthiness of the issuers.
                   
                  Liquidity risk: Where a significant level of investment is made in financial instruments that may under certain circumstances have a relatively low level of liquidity, there is a material risk that the fund will not be able to transact at advantageous times or prices. This could reduce the fund's returns.
                   
                  Emerging market risk: Significant investment in emerging markets may expose to difficulties when buying and selling investments. Emerging markets are also more likely to experience political uncertainty and investments held in these countries may not have the same protection as those held in more developed countries.
                   

                   

                  Highlights

                  LO Funds - Asia Value Bond is an actively managed long-only bond fund focusing on Asia-Pacific issuers predominantly in USD. The Fund adopts a strong total return philosophy and generates returns from both interest accrued as well as capital appreciation from yield and credit spread compression. In addition, it follows an unconstrained allocation approach and value-orientation in security selection. The Fund invests across the debt capital structure (senior, subordinate) and debt classes (sovereigns, corporates, financials). To provide flexibility and opportunity, the Fund has allowable limits for High Yield and non-Asian issuers.

                   

                  ${cond.op,${str.eq,monthly,${dealing,DIVIDENDFREQUENCY}}, The dividend frequency of this share class is monthly.,}

                  Breakdowns

                  June 2025

                    Credit Ratings (in %)

                    AAA0.00% 0.00%
                    AA0.00% 3.41%
                    A0.00% 12.50%
                    BBB0.00% 44.36%
                    BB0.00% 16.58%
                    B0.00% 20.20%
                    CCC+ & Below0.00% 2.96%

                    Maturities (in %)

                    Less than 1 year0.00% 1.90%
                    1 to 3 years0.00% 12.00%
                    3 to 5 years0.00% 20.93%
                    5 to 7 years0.00% 14.65%
                    7 to 10 years0.00% 10.44%
                    10 to 20 years0.00% 11.11%
                    More than 20 years0.00% 14.44%
                    Perpetual0.00% 14.54%

                    Countries (in %)

                    Others0.00% 23.20%
                    India0.00% 22.06%
                    China0.00% 10.23%
                    Hong Kong0.00% 10.20%
                    Japan0.00% 8.91%
                    UK0.00% 6.16%
                    Saudi Arabia0.00% 5.56%
                    Indonesia0.00% 5.51%
                    Macau0.00% 4.33%
                    Australia0.00% 3.85%

                    Currencies (in %)

                    USD0.00% 99.22%
                    EUR0.00% 0.78%
                    CNY0.00% 0.00%

                    Managers

                    Dhiraj BajajPrivate Clients (Asia Investment Team)
                    Read more
                    Dhiraj is the head of Asia fixed income at Lombard Odier. He joined Lombard Odier in 2012, and is responsible for the Fixed Income team in Asia, focusing on Asia Pacific and emerging debt markets. Prior to joining Lombard Odier, Dhiraj was a portfolio manager with Cairn Capital in London, a full-service credit asset management firm, from 2006 to 2012. There he managed investment grade and high yield portfolios and traded credits in both long-only and long/short portfolios. Dhiraj also gained experience in JP Morgan & Chase in their European credit & rates research department in London, in 2006. Dhiraj started his career at Singapore Airlines and from 2000 to 2005, he did corporate strategy. Dhiraj has a B.Eng (Honours) in mechanical engineering and a minor in business from the National University of Singapore, and a masters of business administration from the University of Cambridge, UK (IIT), Roorkee.
                    Nivedita SunilPrivate Clients (Asia Investment Team)
                    Read more
                    Nivedita Sunil, Senior Emerging Credit Analyst Nivedita is an Emerging Market analyst within the LOIM Fixed Income team in Singapore. She covers Emerging Markets & Asian Sovereigns and Financials for the firm. Prior to joining Lombard Odier, Nivedita worked at Citigroup in London for 7 years. In her last role, she was a vice president in the Emerging Market Fixed Income and FX strategy team within Citigroup Global Markets where she formulated fundamental and tactical views on Emerging Markets for investors. Nivedita holds an MBA from Harvard Business School where she graduated in the top 5% of her class as a Baker scholar. She also holds a Masters in Finance with distinction from the London School of Economics and a bachelor’s degree in electronics engineering from Anna University in India.

                    Legal information

                    General information

                    DomicileLuxembourg
                    Legal FormSICAV
                    Regulatory StatusUCITS
                    Registered inCH, LU, NL
                    Class launch date21.03.2018
                    Close of financial year30 September
                    Dividend Policydistribution
                    - Distribution dateJan/April/Jul/Nov
                    - Last dividend paid  (24.07.2025) EUR 0.98

                    Fiscal Information

                    DE Investmentsteuergesetz (InvStG)Other Funds
                    AT Investmentfondsgesetz (InvFG)Declared Fund
                    UK Reporting StatusNo

                    Management Company & Agents

                    Management CompanyLombard Odier Funds (Europe) S.A.
                    CustodianCACEIS Bank, Luxembourg Branch
                    AuditorPricewaterhouseCoopers
                    Portfolio valuationCACEIS Bank, Luxembourg Branch

                    Dealing

                    Dealing

                    Subscriptions and redemptions frequency daily
                    Subscriptions and redemptions cut-off dayT-1
                    Subscriptions and redemptions cut-off time15:00 CET
                    Subscriptions and redemptions settlement dateT+2
                    NAV valuation pointT
                    NAV calculation dayT+1
                    NAV calculation frequencydaily
                    Minimum InvestmentCHF 1'000'000 or eq
                    Management Fee0.28%
                    Distribution Fee0.00%

                    Security Numbers

                    BLOOMBERGLOAVEX1 LX
                    ISINLU1766724980
                    SEDOLBG00M50
                    TELEKURS40043900

                    Prices

                    Since launch
                    • 1 month
                    • 3 months
                    • 6 months
                    • 1 year
                    • 3 years
                    • 5 years
                    • 2025 YTD
                    • 2024 YTD
                    • 2023 YTD
                    • 2022 YTD
                    • 2021 YTD
                    • 2020 YTD
                    • 2019 YTD
                    • 2018 YTD
                    • Since launch
                    • Custom
                    Export

                    Prices over selected period

                    LastEUR0.0073.4425.07.2025
                    FirstEUR0.0066.3221.03.2018
                    HighestEUR0.0079.2610.09.2021
                    LowestEUR0.0051.0003.11.2022
                    * Earliest Date: 21.03.2018, Latest date: 25.07.2025

                    Documents

                    Professional investors only

                    Newsletter IM - Professional
                    30.06.2025
                    English (pdf)

                      Reporting

                      Performance Review
                      30.06.2025
                      English (pdf)
                        Fact Sheet (marketing document)
                        30.06.2025
                        English (pdf)

                          Legal Documents

                          Prospectus
                          21.05.2025
                          English (pdf)
                            Notice to Shareholders
                            17.04.2025
                            Français (pdf)
                              19.07.2024
                              Français (pdf)
                                17.05.2024
                                Français (pdf)
                                  24.01.2024
                                  Français (pdf)
                                    30.06.2005
                                    Français (pdf)
                                      Semi-Annual Report
                                      31.03.2025
                                      English (pdf)
                                        Key Information Document
                                        28.01.2025
                                        English (pdf)
                                          Annual Report
                                          30.09.2024
                                          English (pdf)
                                            Articles of incorporation
                                            21.03.2019
                                            English (pdf)

                                              Sustainability-related disclosures

                                              Sustainability-related disclosures
                                              20.05.2025
                                              English (pdf)

                                                Newsletter

                                                The fund closed 1H 2025 at +4.58% (N Accumulating USD share class) vs the JACI index return of +4.02% for the same six-month period.

                                                As we enter 2H25, we believe the market environment remains very conducive towards the Asia-EM USD higher yielding universe owing to (1) growing market expectations of a Fed rate cut during its upcoming Sep-Oct FOMC meetings, (2) lower domestic rates in various Asian countries, (3) weakening USD, (4) fund inflows into broader EM debt asset classes, (5) overall stable macroeconomic environment (i.e. growth-inflation mix) for Asia-EM, and (6) drop in front-end UST yields. The 2Y to 5Y UST yields are now all firmly below 4%, incentivising investors to reach out for higher all-in yields for short to mid duration assets. Against this backdrop, comparable US IG and HY spreads have narrowed dramatically since the April market volatility to 79 bps and 274 bps respectively, at the time of writing (8th July). We remain constructive on the Asia-EM macro backdrop and share our thesis as well as top picks in the attached 2H 2025 Asia Credit Outlook.

                                                Over the past month, we took profit on various outperforming names and continued to optimise the portfolio for added diversity and new alpha sources.

                                                Within IG financials, we added new positions within the Tier II capital space for new alpha generation going forward. We trimmed our long-held positions in Tier II ranked bonds in Bangkok Bank at ~180 bps, HSBC 10-year bullet bonds at 125-130 bps and Macquarie Bank Tier II bonds at 130-155 bps. Instead, we added to new Core holdings in Saudi National Bank 10NC5 Tier II at 6.0% or 200 bps and Qatar Insurance Corp at 230 bps (5-year callable instrument), which provide higher carry and greater potential for spread tightening. We also added tactically to the new Sumitomo Bank 20-year Tier II bonds at 102 bps, as we view fair value tighter on a spread perspective. We also tactically added to Resolution Life 2035 Tier II bonds at around 230 bps, as it is currently being wholly acquired by Japan’s Nippon Life (trades at 150-160 bps for high quality A- paper). Resolution Life is currently rated at Baa3/BB+ by Moody’s/Fitch and is on Positive Ratings Watch by both agencies. A successful regulatory approval, which we expect in 2H, will lead to rating upgrades and credit tightening towards Nippon Life levels.

                                                Elsewhere in the insurance sector, we added to South Korea’s Tongyang Life and Taiwan’s Shin Kong Life as both firms, which are small insurers within their countries, are undergoing corporate transformations which are strengthening the quality of their respective parents. Tongyang Life is being acquired by Woori Bank (75% and possibly more), whilst the parent of Shin Kong Life in Taiwan is merging with Taishin Financial. This provides strong parent shareholding structure for future capital infusions when and if necessary, including potential growth purposes. All else being equal, we see these developments as positive to drive spreads tighter for these two small insurance firms.

                                                Within IG corporates, we added to our holdings in South Korean battery giant LG Energy Solutions across its 2030 and 2035 bonds. LG Energy Solutions has guided for strong 2Q 2025 results, aided by US tax breaks and greater cost efficiency. We continue to believe the long-term secular battery demand for both EVs and energy storage solutions (to time-shift renewable energy generated) as well as its new product development. We have thus increased this as a Conviction position to ~1.5% in weight. We also continued to increase our holdings in Australia’s LNG giant Woodside 2054s.

                                                Within HY, our key special situations holding West China Cement 2026 appreciated by 8-9 points since May, on the back of a sale of one of its non-core assets (cement plant) in China, as it continues to expand in Africa and other EM countries. This was in line with our thesis, and we have taken the opportunity to take profits and considerably reduce our position there from 1% to 0.3%.

                                                In Hong Kong, New World Development (NWD) successfully completed its large bank loan refinancing exercise in June. It rolled over HKD 87bn of all bank debt that was coming due 2025, 2026 and 2027. It achieved low borrowing costs (in terms of bank loan spread) on this large and early refinancing exercise, as it provided investment properties as asset collateral to achieve this. NWD’s borrowing costs will be further aided by low HIBOR rates, as all its bank debt is floating in nature. HIBOR rates have collapsed lately, with 3-month rates now at a paltry 1.8%. This will further aid NWD and various other HK corporates’ aggregate borrowing cost going forward, whilst driving consumer and business demand for residential and other real estate. NWD has achieved strong contracted sales in 1H25 (HKD 26bn or USD 3.3bn), almost completing all its full year target based on strong pent-up demand as the property cycle stabilises and likely turns higher in HK.

                                                With this successful loan refinancing exercise, NWD has achieved a clear repayment liquidity runway until 2027. It now has the added flexibility to conduct non-core asset sales, optimise its asset portfolio, and enhance rental streams from new assets coming online. This includes the K11 East Coast (Shenzhen) waterfront cultural and retail complex which has just open its doors to visitors. During early June, NWD deferred the coupons of its senior ranked perpetuals, which caused an equal drop in its senior bullet bonds. We used the volatility to switch our perpetual holdings to senior bullets, and we currently hold only senior bullet bonds with the largest holding being the 2028 bonds. We believe these bonds are very attractive given the high coupon generation and clear liquidity runway for the company for the next two years, and we remain overweight with ~2% portfolio weight in the issuer.

                                                Elsewhere, we added to new Softbank Group 2031 (6.875% YTM) and 2035 (7.5% YTM) bonds back to the portfolio. Japan’s Softbank (rated BB+) is raising capital for its investment into OpenAI and US AI data centres, and hence is willing to pay up for the bond issuance given the sheer supply of new bonds coming to the market. Softbank raised over USD 4bn in this multi-tranche USD and EUR denominated bond issuance exercise. We expect them to return to the bond markets once more before year end for their growth needs. Despite the growth needs of Softbank, we believe the credit is very strong fundamentally based on its 87% ownership in ARM (USD 160bn market cap), majority stake in Japan leading telco Softbank Corp, and various other global assets. Softbank Group currently only has a portfolio LTV of up to 30% (on an adjusted basis).

                                                We also added additional holdings to the fund to increase its diversity. This includes new Development Bank of Mongolia 2028 bonds at 9.25%, Saudi real estate development solutions provider Dar Al Alkan new 2030s at 7.375%, and Pakistan 2027 sovereign bonds at around ~10% yield. We also added to high quality and defensive HY holdings from India’s Greenko 7.25% 2028. To allow for this diversification, we took profits on partial holdings from front-end Nigeria and Egypt (2029-2030 paper), and utilised the proceeds from our sales in West China Cement 2026.

                                                The fund currently stands at ~7.6% yield to worst, with a duration of 5.4 years and average rating of BBB-.

                                                We appreciate your support, and please do not hesitate to reach us with your queries and feedback.

                                                 

                                                DHIRAJ BAJAJ

                                                On behalf of LOIM Asia Fixed Income team

                                                insights.

                                                Positive macroeconomic drivers for Asia bonds are in play
                                                fixed incomeAsia value bonds
                                                fixed incomeAsia value bondsAsia Diversified High YieldAsia Investment grade

                                                Positive macroeconomic drivers for Asia bonds are in play

                                                July 16, 2025
                                                Supportive macroeconomic trends – including expected US rate cuts, regional growth and policy momentum – support Asia fixed income. We share our H2 outlook.
                                                Fixed income: is geopolitics now trumping rates as the dominant force in markets?
                                                fixed income

                                                Fixed income: is geopolitics now trumping rates as the dominant force in markets?

                                                July 10, 2025
                                                As geopolitics increasingly trumps rate-moves in fixed-income markets, how should investors respond?
                                                Think high-yield bonds, but with better liquidity – 3 advantages of a more efficient approach
                                                fixed incomeLiquid Global High Yield
                                                fixed incomeLiquid Global High Yield

                                                Think high-yield bonds, but with better liquidity – 3 advantages of a more efficient approach

                                                July 1, 2025
                                                Lower trading costs, better volumes and reduced turnover are three liquidity advantages available to high-yield investors willing to take a more efficient approach. 
                                                What does the cautious Swiss interest rate cut mean for investors?
                                                fixed incomeSwiss Franc bonds
                                                fixed incomeSwiss Franc bonds

                                                What does the cautious Swiss interest rate cut mean for investors?

                                                June 24, 2025
                                                At its June policy meeting, the Swiss central bank responded to currency strength and inflation weakness by taking key interest rates to zero.
                                                more insights
                                                • © 2025 Lombard Odier
                                                • Privacy policy
                                                • Asset Management legal information
                                                • Asset Management regulatory disclosures
                                                • Modern slavery statement
                                                • Cookies