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, Operational risk and risks related to asset safekeeping and Model risk. Sustainability risks may lead to a significant deterioration in the financial profile, profitability or reputation of an underlying investment and may therefore have a significant impact on its market price or liquidity. The environmental, social, and governance (“ESG”) considerations discussed herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process.

TargetNetZero Fixed Income 

Decarbonise, diversify and drive the transition forward


Market forces are in action with 140 countries (accounting for 91 percent of greenhouse gas emissions) being subject to climate targets and unprecedented policy support for green technologies. 

Our TargetNetZero Fixed Income strategies enable clients to capture the opportunities and mitigate the risks being generated by economy-wide decarbonisation.

Source: BCG (2021) Unlocking the Potential of Carbon Markets to Achieve Global Net Zero, Credit Suisse, Caixa Bank, Bloomberg Green.

assessing climate exposure.

Climate change is altering the investment universe as we transition towards net-zero emissions. But assessing the climate exposure of a company is complex: the data are incomplete and there are no industry standards. 

At LOIM, we have developed an emissions-analysis tool to measure how well aligned a company is with the goals of the Paris Agreement to limit global warming to well below 2°C. The forward-looking temperature alignment metric, called Implied Temperature Rise (‘ITR’), assesses how a company’s (or portfolio’s) emissions are expected to evolve. It considers whether emissions are increasing, flat or decreasing and, if so, whether they are falling quickly enough. We translate this into a proprietary temperature alignment (‘LOPTA’) score that tells us what level of global warming would result if every actor in the economy were to be managing its emissions with the same level of ambition.

Our goal is simple: to design TargetNetZero strategies in different asset classes that maximise opportunities and reduce climate risk in a global economy in the transition to net zero. 

magnitude of the climate challenge.

Companies across all industries and regions need to wean themselves off fossil fuels during a multi-decade transition to meet net zero climate objectives. 

Source: LOIM analysis as at 31 March 2022; ClimateActionTracker. For illustrative purposes only. Values are approximate. Not drawn to scale.

This transition has already begun and is gaining speed, driven by powerful forces – policy and regulation, market forces, consumer demand, and the redeployment of capital.  

However, the decarbonisation imperative is yet to be fully reflected in credit markets, creating an opportunity for investors.

why invest?

Carbon footprints alone do not tell us the full picture of climate risks in a portfolio. We believe that maintaining a diversified portfolio that identifies companies on strong decarbonisation trajectories, irrespective of sector, will help accelerate the transition to net zero and potentially provide compelling returns for investors.

  • The net-zero transition will influence bond issuers and investors.
    Some sectors will find this shift easier than others. Companies committed to meeting the Paris Agreement already have a reduced transition risk, but high-emission companies with a clear decarbonisation strategy potentially offer return and diversification opportunities.
  • Access to potentially higher yielding opportunities.
    Forward-looking climate analysis provides us with greater confidence in our credit assessment of issuers, enabling us to identify potentially higher yielding bonds.
    Issuers with ambitious and credible decarbonisation strategies – Irrespective of their current carbon footprints – are more likely to retain access to capital markets and be favoured by investors, in our view.

our TargetNetZero approach.

We aim to decarbonise, diversify and drive the transition forward through the four steps of our TargetNetZero approach:


Baseline footprint. Assessing the current level of carbon emissions and carbon risk in portfolios, factoring in direct and indirect emissions


Emissions trajectory. Plotting expected emissions trajectories and the necessary level of decarbonisation to align with the Paris Agreement


Potential for acceleration. Considering internal, industry and regulatory developments that may accelerate decarbonisation


Leverage new information. Recalibrating our conviction by integrating new data, corporate and policy commitments

Source: LOIM. For illustrative purposes only. 

why us?

our strategy.

investment process.

investment team.


Yannik Zufferey
Head of Fixed Income

Ashton Parker
Head of Fundamental Fixed Income Credit Research and Senior Portfolio Manager

Jérôme Collet
Head of Beta Portfolio Manager


Erika Wrangeård
Portfolio Manager Sustainability Specialist


Dr Thomas Hohne-Sparborth, PhD
Head of Sustainability Research



more about our funds.

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.

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Managing liquidity risk in Swiss bond portfolios
investment viewpoints Fixed Income
investment viewpoints Fixed Income Regional Swiss Franc bonds

Managing liquidity risk in Swiss bond portfolios

Swiss bond portfolios are always exposed to a certain amount of liquidity risk, even though the market trades daily. We outline how to adequately manage these risks.

3 years of TargetNetZero investment-grade credit
investment viewpoints TNZ Fixed Income

3 years of TargetNetZero investment-grade credit

Three years since launching our high-conviction, net-zero-focused credit strategies, we assess the progress made towards their financial and climate objectives.

Fallen angels radar: busy quarter for new entrants
investment viewpoints Institutional
investment viewpoints Institutional Fallen Angels Wholesale

Fallen angels radar: busy quarter for new entrants

Which corporate bonds were downgraded to high yield last quarter? Fallen angels radar monitors entrants to the universe and explains rating trends.

Fixed income: our medium-term playbook
investment viewpoints Asset Management
investment viewpoints Asset Management Fixed Income GFIO Investment strategies DC DB Banks Wholesale Official institutions Third party asset managers Geronne Independants Institutional Consultants Insurance Fund of funds Endowments

Fixed income: our medium-term playbook

In the Q2 issue of Alphorum, we focus on duration and spread opportunities in anticipation of the rate-cutting cycle and debt maturity wall ahead.

Why the unexpected Swiss interest-rate cut?
investment viewpoints Institutional
investment viewpoints Institutional Wholesale Fixed Income Swiss Franc bonds

Why the unexpected Swiss interest-rate cut?

The Swiss National Bank surprised with an interest rate cut at its March meeting. What drove monetary policy and how does it impact fixed income investors?

Swiss bonds: how important are credit ratings?
investment viewpoints Institutional
investment viewpoints Institutional Wholesale Fixed Income Swiss Franc bonds

Swiss bonds: how important are credit ratings?

Credit ratings are an important indicator, but they are just one piece of the puzzle for bond investors. We explain the shortcomings and why investment decisions should not be based on ratings alone. 

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”). This marketing document particularly relates to Climate Transition, a Sub-Fund of LO-Funds (hereinafter the “Sub-Fund”). The Management Company of the Fund is Lombard Odier Funds (Europe) S.A. 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