The latest developments in the sustainability space.

Lombard Odier Investment Managers
Switzerland’s Lombard Odier Investment Managers (LOIM) has expanded its TargetNetZero Franchise with the launch of two new US and Japanese equities strategies.

As the TargetNetZero (TNZ) franchise marks its fifth anniversary, the platform has gathered over $6.8 billion in assets under management across 11 pooled funds and a number of solutions in equities, fixed income, and cash solutions. Underpinned by LOIM's proprietary Implied Temperature Rise (ITR) methodology, the strategies identify “transition leaders” across all sectors, including hard-to-abate industries, within a transparent portfolio construction framework designed to deliver low tracking error and diversification.

The strategies apply the proprietary expertise of LOIM’s TNZ investment philosophy to build portfolios engineered to maintain temperature alignment below 2°C, while materially reducing greenhouse gas emissions relative to the benchmark. Designed as scalable building blocks across asset classes and regions, the strategies can serve as core allocations within investors' long-term portfolios, the firm said in a statement.

Building on the growth of the TNZ franchise, LOIM has expanded the platform to meet increasing investor demand for regional building blocks and forward-looking decarbonization solutions.

The new TNZ US Equity strategy reflects growing demand for climate-aligned exposure to US equities. The strategy combines LOIM’s sustainability research expertise with its established equity investment capabilities to deliver benchmark-aware US equity exposure aligned with net-zero objectives, while maintaining traditional risk-return characteristics. The strategy is benchmarked to the MSCI USA Index and can hold between 300 and 350 companies in the portfolio.

The new TNZ Japan Equity strategy reflects growing demand for climate-aligned exposure to Japanese equities. The strategy is benchmarked to the MSCI Japan Index and can hold between 100 and 150 companies in the portfolio.

“The transition to net zero will not be driven by exclusions, but by directing capital towards companies that are credibly transforming,” Yannik Zufferey, chief investment officer, Core Business at LOIM said. “The growth of our TargetNetZero franchise reflects the increasing demand for solutions that support this transition without compromising diversification. By combining deep sustainability research with our investment expertise, we deliver scalable, benchmark-aware portfolios designed to help investors navigate the transition to a net-zero economy.”