Lombard Odier offers Ucits sustainable market neutral fund

Swiss manager expands alternatives range with launch global equity sustainability focused market neutral fund


David Robinson

Swiss asset manager Lombard Odier Investment Managers has expanded its alternatives investment range with the launch of a Ucits vehicle within its “TerreNeuve” strategy.

The fund will offer onshore investors access to the market neutral equity long/short strategy, with a focus on sustainable investing.

LO Funds – TerreNeuve is managed by Arnaud Langlois, who joined Lombard Odier IM in February 2018 to launch the offshore domiciled 1798 TerreNeuve fund. Lombard said the fund has delivered 7% net returns since launch in April 2018. LO Funds – TerreNeuve will follow the same investment process as the offshore version.

“The TerreNeuve strategy is underpinned by a bottom up, sector specialist approach, with a focus on sectors including global consumer, agriculture, chemicals, environmental and medical technologies,” the group said in a statement.

“The investment team seek to identify and measure significant long-term drivers of company valuation, including less tangible environmental, social and/or governance factors. The team also utilises a proprietary sustainability rating system they have developed which acts as an extensive company due diligence process and helps them analyse powerful ESG themes in their sectors.

The Ucits Fund will target high single digit net returns, with a volatility of approximately 6-7%.

Arnaud Langlois, Portfolio Manager of TerreNeuve, said: “In a world where growth is scarce and often overestimated, we think true growth companies will be increasingly rewarded by the market, and companies strategically positioned to address key environmental and social opportunities or challenges should be amongst the biggest beneficiaries.”

Lombard Odier Investment Managers is the asset management business of the Lombard Odier Group and has assets under management of CHF49bn (€43.4bn).

– This article first appeared on ESG Clarity‘s sister site, Expert Investor.


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