Lombard Odier Investment Managers

2025 is likely to bring shifts in equity markets and US climate policy. How is our target net zero team preparing? In the outlook edition of Sharpe thinking, Portfolio Managers Nicolas Mieszkalski and Alexey Medvedev explain how they are working to enhance their approach to achieving diversified equity exposure to companies in all sectors that are genuinely decarbonising in alignment with a net-zero economy by 2050. Read more: http://spkl.io/6046fbiBY #netzero #decarbonisation #equities #outlook <Marketing communication>

What does the large interest rate cut in Switzerland mean for investors? Markus Thöny, Head of Swiss Fixed Income and Philipp Burckhardt, CFA, Fixed Income Strategist and Senior Portfolio Manager review the latest meeting of the Swiss National Bank, discussing how the central bank uses surprise, if negative rates are back on the agenda and why the bank chose to act decisively. More here: http://spkl.io/6042fbUPQ #switzerland #monetarypolicy #interestrates #inflation #swissfranc #swissnationalbank <Marketing communication>

Having reached a “tipping point in human history” after 100 years of fossil-driven economic activity, how can we regenerate nature, our keystone asset? The solution, said Marc Palahí, Chief Nature Officer at Lombard Odier Investment Managers while delivering the keynote at the UK launch of the Circular Bioeconomy Alliance (CBA) last month, is to shift from an extractive to regenerative economy. The CBA’s UK launch was hosted by His Majesty King Charles III, Founder of the Alliance, at St James’s Palace. At the event, 100 business, science and indigenous leaders participated in discussions championing nature-first financial and business innovations for industries including agriculture, pharmaceuticals and fashion. “Our environment can no longer absorb the shocks that our economy generates, which means our economy must absorb its own shocks,” said Palahí, who is also CEO of the CBA. “The good news is that we have the knowledge and technology to build a ‘nature-first’ economy where nature is the true engine to transform our economy.” As a case study, he pointed to regenerative coffee production. Compared to monocultures, nature-based approaches harness biological inputs and crop diversity while support ecosystem services like insect pollination and nutrient cycling. This sustains output while net absorbing carbon on a net basis and embedding resilience against climate change. “You go from net-negative coffee to nature- and climate-positive coffee production.” Read more: http://spkl.io/6044fbXto #nature #bioeconomy #rethinkeverything #rethinksustainability <Marketing communication>

Does Donald Trump’s return to the White House mark an end to free trade? This week in Simply put, Aurèle Storno, CIO Multi asset, and Florian Ielpo, Head of Macro, Multi asset, consider the wider implications of Trump’s tariff agenda. Irrespective of whether tariffs are merely a negotiation tool, they signal that the era of free trade has come to an end. In this scenario, what is the impact on global markets and how should multi-asset investors position their portfolios? Read more: http://spkl.io/6045fwUNl #FreeTrade #Tariffs #Macroeconomy #multiasset #assetallocations <Marketing communication>

What’s the outlook for multi-asset investors in 2025? Aurèle Storno, CIO, Multi Asset, explores how risk-focused strategies could find opportunities down the road in fixed income that aid diversification: http://spkl.io/6048fwbFK #multiasset #investmentoutlook #rates #bonds #publicdeficits #diversification <Marketing communication>

Do you believe in Santa (rallies)? Florian Ielpo, Head of Macro, Multi Asset, analyses December equity performance globally to test if year-end returns really are stronger on average. In uncovering the answer, he also finds interesting trends across regions, sectors, styles – and the strong influence of US elections. What can investors expect this year? Read more: http://spkl.io/6049fZdRD #equities #USelection #multiasset #assetallocation <Marketing communication>

What if we could combat climate change by consuming more, not less? Using coffee production as a case study, this was the question that Morten Rossé, Head of Nature and Climate at Lombard Odier Investment Managers, posed to delegates at the DG Publishing Private and Public Pensions Summit in Surrey last week. Deforestation and chemical use see monoculture coffee crops generate an average of 14.6 CO2 equivalent per kilogram of product*. And this model is vulnerable to increasing temperatures, with a 35% drop in production is expected by 2050 on current trends. But monocultures can be transformed into net absorbers of carbon through a nature-based approach. By integrating tree species to provide cooling and protective canopy layers, supporting insects that function as natural pesticides, improving soil health by removing chemical inputs, and increasing biodiversity by attracting native animals, these crops help restore the climate and nature, one cup at a time. By securing corporate offtakers and managing coffee production, distribution and retail in a regenerative value chain, an attractive real-asset opportunity can be structured for investors. To learn more about this approach, click here: http://spkl.io/6045fZ5BX *Source: Grüter et al., 2022. #nature #naturebasedsolutions #naturebasedinvesting #coffee #netzero #realassets <Marketing communication>

What’s the investment outlook in 2025? Our portfolio managers give their views across asset classes for the latest edition of Sharpe thinking. Read more: http://spkl.io/6046fZuf8 #Sharpethinking #outlook2025 #multiasset #fixedincome #equities #convertiblebonds <Marketing communication>

What’s the investment outlook in 2025? Our portfolio managers give their views across asset classes for the latest edition of Sharpe thinking. Read more: http://spkl.io/6046fZuf8 #Sharpethinking #outlook2025 #multiasset #fixedincome #equities #convertiblebonds <Marketing communication>