Lombard Odier Investment Management and ETF Securities are hoping to capitalise on the market’s appetite for alternatively-weighted exchange traded funds (ETFs), with the launch of a fundamentally-weighted fixed income range.
The new product set includes smart beta government and corporate fixed income ETFs.
Mark Weeks, chief executive officer of ETF Securities, said by delivering Lombard Odier’s fundamental fixed income strategy in ETF form, the company is further building on its reputation as a pioneer in specialist investment solutions.
He added: “Extending our investor proposition has been at the centre of our strategy: adding fixed income solutions to our already strong franchise across commodities, currency, specialist equity and short & leveraged ETPs is another milestone in delivering intelligent alternatives for investors.”
The initial product listing on the London Stock Exchange, planned for mid-April, will see the launch of ETFs providing fundamentally-weighted global government bonds, global corporate bonds and European corporate bonds. An emerging market local bond ETF is scheduled to be launched in early May.
In a statement, the company said these ETFs aim to capture the “increasing shift towards more cost-effective investment solutions”.
Hubert Keller, chief executive officer at Lombard Odier Investment Managers, added: “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."