Lombard Odier Investment Managers (LOIM) and ETF Securities have listed a range of transparent, cost-effective and UCITS-compliant fundamentally-weighted fixed income ETFs on the London Stock Exchange (LSE).
Until now, Lombard Odier IM’s fundamental fixed income strategies were only available to mutual fund investors, however these products look to offer smart beta bond opportunities to a wider base of investors through wealth managers, financial advisers and investment platforms. They are available in Sterling, Euro and US Dollar denominations and are both ISA and SIPP eligible.
The three new ETFs are: the ETFS Lombard Odier IM Euro Corporate Bond Fundamental GO UCITS ETF; the ETFS Lombard Odier IM Global Corporate Bond Fundamental GO UCITS ETF; and the ETFS Lombard Odier IM Global Government Bond Fundamental GO UCITS ETF.
Jan Straatman, Global CIO, Lombard Odier IM, says: “We are extremely pleased to introduce our three fundamentally-weighted, smart beta government and corporate fixed income ETFs to the European market. Lombard Odier IM have over five-years of experience in fundamentally-weighted fixed income investing, and our partnership with ETF Securities enables us to offer a wide range of investors what we believe to be a cost effective and common sense approach to fixed income investing focusing on an issuer’s ability to repay debt rather than the capacity to borrow.”
Mark Weeks, Chief Executive Officer, ETF Securities, adds: “The announcement of our partnership with Lombard Odier IM to offer fundamentally-weighted, smart beta government and corporate fixed income ETFs has been extremely well received by the market. It offers a systematic rules-based analysis of a country’s or company’s fundamentals to create an index that gives investors an efficient exposure to fixed income. We look forward to working with Lombard Odier IM as we continue to develop further investment solutions that are truly innovative. This will include the launch of our emerging market local bond ETF in early May.”
