Investors will be offered a ‘range of fundamentally-weighted, smart beta government and corporate fixed income ETFs’ as a result of the partnership.
The companies claim the partnership will take advantage of Lombard Odier IM’s ‘fundamental investment expertise’ and ETF Securities’ ‘product management credentials and secondary market coverage.’
Lombard Odier IM’s fundamental fixed income strategies have only available to mutual fund investors until now. This offering will bring them wider base of investors through wealth managers, financial advisers and investment platforms, the firm said.
The initial government and corporate bond product listings on the London Stock Exchange are planned for mid-April, with an emerging market local bond ETF scheduled to be launched in early May.
“We’re pleased to be working with ETF Securities, a forerunner in ETP expertise,” said Lombard Odier CEO Hubert Keller. “In fixed income markets, a traditional passive approach lends money to the most indebted. If someone already owes you a lot of money, is it a good idea to lend them more?”
“We strive to offer bond investors greater diversification by lending based on issuers’ ability to repay rather than their ability to borrow. We use fundamental factors, based on the real economy, to determine the most appropriate allocation,” he added.
“This dynamic partnership is built on the complementary skills and expertise of two industry leaders and we are pleased to be joining forces with them,” said Mark Weeks, ETF Securities CEO.
