Lombard Odier Investment Managers is linking with an independent manager to offer a fusion of mainstream portfolio management with sustainability principles.

Lombard Odier Investment Managers (Lombard Odier IM) is launching a new Global Climate Bond investment strategy to help combat climate change.

This follows a strategic partnership with Affirmative Investment Management (AIM) the fixed income manager dedicated to impact strategies, the companies said in a statement.

Climate bonds are debts issued by governments, supranational entities, municipalities, corporations and other borrowers to finance activities and projects designed to help the world mitigate or adapt to climate change and its effects.

Positive Climate-Related Outcomes

«The new Fund enables our investors to mobilise their capital with a clear understanding of how their assets will be deployed, while generating the same returns for the same risk as a conventional bond portfolio,» said Carolina Minio-Paluello, Global Head of Sales and Solutions at Lombard Odier IM.

The LO Funds–Global Climate Bond Fund (Fund) is a diversified investment grade portfolio seeking to simultaneously deliver a low carbon and climate resilient economy, or mitigate some of the effects of climate change whilst targeting a higher yield than a typical investment grade portfolio with lower turnover.

The managers of the Fund will identify investments that provide positive climate-related outcomes such as renewable energy, resource efficiency, land management, water resources, physical infrastructure and marine environment.