Lombard Odier Investment Managers' new strategy is part of the firm’s drive to expand its footprint and broaden its product offering in Asia.

Lombard Odier Investment Managers (LOIM), the privately-owned asset management arm of global wealth and asset manager Lombard Odier, has just launched its Fallen Angels Recovery strategy in Taiwan.

LOIM’s Fallen Angels Recovery is a differentiated high yield strategy that aims to invest in bonds that have been downgraded from investment grade to high yield within the global fixed income universe. Since inception in 2021, the strategy has gained interest from investors. Currently, it holds assets under management of $360 million, the firm said in a statement. The portfolio has about 270 holdings which are selected based on fundamental analysis of the issuer, with sustainability embedded throughout the investment process.

The launch of the strategy in Taiwan, follows the launch of the Asia Value Bond (AVB) strategy last year. The AVB strategy has resonated well with clients in Taiwan who want to increase their fixed income allocation, the firm added. LOIM also continues to work with Navigate Investment Consultant as Master Agent to distribute the firm’s investment strategies to institutional, wholesale and individual clients in Taiwan.

Looking ahead to the second half of 2024, Lombard Odier expects the impact of high interest rates and lower disposable incomes to have an adverse effect on companies’ credit quality, particularly those in the consumer cyclical sectors. This could lead to increased supply of fallen angels that could be a catalyst of performance for investors, the firm said. 

“We are excited for the Fallen Angels Recovery strategy to enter Taiwan as we continue to broaden our offering for clients in the region. This will be the second strategy that we are launching in this important market, following a very successful introduction of our inaugural fixed income strategy in Taiwan last year,” Vincent Magnenat (pictured), limited partner, Asia regional head and global head of strategic alliances at Lombard Odier, said.