Lombard Odier Investment Managers

Are mainstream climate-change scenarios fit for use by financial institutions? Not without additional analysis, says Mark Cliffe, Visiting Fellow with the Global Systems Institute at the University of Exeter. As scenarios typically focus on financial stability at a systemic level, they do not address the materiality of climate risks for individual institutions. What can be done? The VUCA concept – which recognises volatility, ambiguity, complexity and ambiguity – can help institutions adapt models. How could the US election influence climate policy? What would happen if insurers stopped covering climate-related damages? Recognising these sources of VUCA could help institutions integrate reasonable assumptions into their climate-risk scenarios. Mark delivered the keynote at our annual Transition Investment Summit in London. Read more about the event: http://spkl.io/60444Cnzk #climate #risk #loimsummit <Marketing Communication>

Investment funds are increasingly using artificial intelligence to analyse data and even select stocks, though most agree it is essential humans retain oversight. Laurent Joué David Wright Pawel Skrzypek and Mike Conover speak to Ali Al-Enazi https://on.ft.com/3zQ0MKD

Should multi-asset investors be rethinking their duration exposure? This week in Simply put, Aurèle Storno, CIO, Multi Asset and Florian Ielpo, Head of Macro, consider why investors have been hesitant about fixed income exposure. They weight up factors fuelling this reluctance – from yields to government debt to monetary policy outlook – and venture that change is in the air. Read more: http://spkl.io/60494CVh3 #fixedincome #duration #multiasset #bondallocations <Marketing communication>

With corporate spreads tight and rate cuts anticipated or in play, how should fixed-income investors position their portfolios? Sandro Croce, CIO of Fixed Income, and Philipp Burckhardt, CFA, Fixed Income Strategist and Senior Portfolio Manager, explain their appetite for duration and credit risk in the Q3 issue of Alphorum. Since the diversifying impact of US Treasuries is limited to growth shocks, Anando Maitra, PhD, CFA and Jamie Salt, CFA from our Systematic Research team investigate an alternative, low-cost hedge to defend fixed-income portfolios in a range of adverse scenarios. More here: http://spkl.io/60404CyS8 #duration #credit #fixedincome <Marketing communication>

What does a blueprint for success in asset management look like? Our Co-CEO, Bettina Ducat, took the stage at IMpower Incorporating FundForum in Monaco to share her convictions. To succeed, an active manager must add value against hard benchmarks – and sustainability provides three distinct ways of achieving this, she said. ✔️First, by enabling large investors to meet net-zero commitments by decarbonising the bulk of their portfolios through low-tracking-error equity and fixed-income solutions. ✔️Second, by anticipating how the capex and innovations for the environmental transition are rewiring the economy, and responding with high-conviction strategies. ✔️Third, harnessing private capital to scale-up solutions that are advancing circularity, renewables, or regenerating value chains in an entirely new asset class: nature. This is why LOIM has built a sustainability research team of more than 40 experts and aligned fundamental analysis with system changes rather than sectors, Ducat said. Read more about our approach: http://spkl.io/604347hE7 #impower #fundforum #assetmanagement <Marketing Communication>

This decade, nature will be recognised by financial markets and provide first-mover opportunities for investors who understand this shift. This was a key message from Morten Rossé, Head of Nature and Climate at holistiQ Investment Partners, LOIM, at the recent LAPF Strategic Investment Forum convened by DG Publishing in Hertfordshire, the UK. Nature can be placed at the heart of value chains for select soft commodities, such as coffee, enabling farms degraded by monoculture to be restored as agroforests that boost biodiversity, crop yields and climate resilience while producing a premium product. “The value chain of coffee is its biggest weakness. It’s highly unbalanced, highly inefficient, highly emitting,” Rossé said. “Sales are already being disrupted by specialty markets that use coffee beans grown using agroforestry and regenerative farming practices.” He described how such projects can be integrated into a real-assets strategy viable for long-term institutional investment. “Markets are starting to see this value, and that’s why we believe this is the decade for nature.” Read more: http://spkl.io/604547fpc #nature #pensions #sustainableinvestment <Marketing Communication>

Data surrounds us. Some of this information is useful, some less so. How can investors filter out what’s irrelevant? Across asset classes, our CIOs explore different approaches to prioritising information to form convictions and capture alpha potential. Read more: http://spkl.io/604047Lps #data #assetmanagement #investing #information <Marketing communication> Sandro Croce, Anando Maitra, Dhiraj Bajaj, Yannik Zufferey, Nicolas Mieszkalski, Alexey Medvedev, Christophe Khaw, Laurent Joué, Aurèle Storno, Arnaud Gernath

Nous sommes heureux de lancer DataEdge Market Neutral – une stratégie Actions qui s’appuie sur le Big Data et dont l’objectif est d’anticiper les prévisions de bénéfices des entreprises. Cette stratégie, fondée sur des ensembles de données à la pointe de l’information, utilise des techniques d’avant-garde afin de repérer les tendances de consommation ainsi que leurs répercussions potentielles sur les bénéfices des entreprises avant la publication de leurs résultats trimestriels. Gérée en interne depuis trois ans, DataEdge est à présent proposée aux investisseurs externes pour la première fois. Combinant 36 ans d’expérience, Laurent Joué, Head of Systematic Alternatives et Lead Portfolio Manager, et Marc Pellaud, PhD et Lead Portfolio manager, co-gèrent ce fonds. En savoir plus : http://spkl.io/604647abm #investissementalternatif #hedgefunds #BigData <Communication marketing>

Wir freuen uns, die Lancierung der marktneutralen DataEdge-Strategie bekannt geben zu können. Diese Aktienstrategie nutzt Big Data, um für externe Anlegerinnen und Anleger Unternehmensergebnisse zu prognostizieren. Die Strategie strebt einen kontinuierlichen Informationsvorsprung an und macht sich dazu fortschrittliche Verfahren der Datenwissenschaft zunutze. So ermitteln wir Verbrauchertrends und deren mögliche Auswirkungen auf die Unternehmensergebnisse, bevor die Quartalsergebnisse veröffentlicht werden. DataEdge wird seit drei Jahren intern verwaltet und steht nun erstmals externen Anlegerinnen und Anlegern zur Verfügung. Laurent Joué, Head of Systematic Alternatives, und Marc Pellaud, PhD, Lead Portfolio Manager, bringen 36 Jahre Anlageerfahrung in die Strategie ein. Erfahren Sie mehr: http://spkl.io/604047ab0 #alternativeinvestment #hedgefunds #bigdata <Marketingmitteilung>