Lombard Odier Investment Managers (LOIM) has launched its LO Funds-Global Climate Bond Fund in partnership with Affirmative Investment Management, a fixed income manager specialising in impact strategies.
Climate bonds are debt issued by governments, supranational entities, municipalities and corporations to finance activities designed to help the world mitigate or adapt to climate change and its effects.
A more common name for these debt instruments are green bonds, a market that has grown 159% year-on-year since 2013, according to Lombard.
The fund uses a diversified investment grade portfolio, which seeks to invest in organisations working for a low carbon and climate resilient economy, whilst targeting a higher yield than a typical investment grade portfolio.
Lombard said this type of product is increasingly attractive to investors who want to make a positive impact on the environment but not lose returns.
Lombard had 223 billion Swiss francs (€209 billion) under management, as of the end of June last year.
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