SEDCO Capital and Lombard Odier launch unique ESG-focused and Shariah-compliant fund

The Fund's composition reflects a convergence of SEDCO Capital's Prudent Ethical Investment (PEI) approach with Lombard Odier's investment expertise in the sustainability revolution

  
Samer Abu Aker, CEO of SEDCO Capital

Samer Abu Aker, CEO of SEDCO Capital

SEDCO Capital, a global Shariah-compliant and ethically led asset management and investment advisory firm, and Lombard Odier, the Swiss private banking and asset management group, have jointly launched the SC LO Global ESG Equities Fund (“the Fund”), an ESG-focused and Shariah-compliant UCITS strategy focused on developed market equities. 

The Fund’s composition reflects a convergence of SEDCO Capital’s Prudent Ethical Investment (PEI) approach with Lombard Odier’s investment expertise in the sustainability revolution.  As such, it will employ a pragmatic, systematic, and multi-factor approach that aligns Shariah-compliant, responsible investment, and sustainability principles to construct a portfolio with a high ESG score. The Fund aims to deliver capital growth through an active asset allocation strategy and careful risk management, with the goal of outperforming the Dow Jones Islamic Market World Developed Total Return Index. 

The Fund will be managed by Saudi-based SEDCO Capital, a global asset management and investment advisory firm, the first Saudi company and the world’s first Shariah-compliant asset manager to have become a signatory to the UN Principles of Responsible Investing (UNPRI) in 2014.  The investment adviser will be Lombard Odier. Lombard Odier is a B Corp certified group[1] with more than twenty years’ experience developing and refining sustainable investment solutions, and half a century’s commitment to clients in the Middle East.

The Fund will combine SEDCO Capital’s roots of almost 40 years of Islamic finance expertise and its Shariah board with Lombard Odier’s long-established sustainable investment expertise. The alliance of these two prestigious financial institutions with a shared, long-term vision and complementary expertise gives the fund an exceptional platform for success.

Samer Abu Aker, CEO of SEDCO Capital, said: “In today’s global investment climate, characterized by an uneven recovery from the COVID-19 pandemic, significantly heightened risks from climate change, rapidly evolving technologies, and unpredictable market cycles, our clients want the confidence that their capital is being deployed into high-performing, stable, ethical, and sustainable assets.  The SC LO Global ESG Equities Fund convenes SEDCO Capital’s emphasis on Shariah-compliance and responsible investment principles with Lombard Odier’s time-tested heritage of pioneering sustainable investment solutions. At SEDCO Capital, partnership has always been a fundamental enabler of our go-to-market strategy across all our offerings. I am confident that our aligned interests will speak clearly to investors who sit at the intersection of strong risk-adjusted performance and ethical decision-making.” 

Arnaud Leclercq, Partner Holding Privé and Head of New Markets, Lombard Odier, said: “We’ve been wealth management specialists for over two centuries, and social responsibility is in our DNA. It was natural for us to work with SEDCO Capital as they share our values. Their multi-asset investment expertise and deep roots in the region are a good fit with our innovative solutions and strong global team of 130 investment professionals. Together we are responding to rising client demand and seeking to offer clients the best of both worlds: sustainable investing combined with Islamic finance principles. We expect the new fund to successfully appeal to the rapidly growing number of Shariah-compliant and conscientious investors in the Middle East, South Asia, Europe and elsewhere”.

SEDCO Capital has a successful track record managing ESG-focused funds and similar strategies. For instance, as of August 2021, the SC Europe Equities Fund and SC Global Sustainable Equity Fund have outperformed the MSCI Europe Index and MSCI World Index by 6.16% and 5.47%, respectively. In 2020, SEDCO Capital was awarded the highest possible rating by the UN-supported Principles for Responsible Investment (PRI) in recognition of the Firm's approach to responsible investing and integrating ESG factors into its investment solutions. The Firm also received top ratings in three successive years for its approach to the selection, appointment, and monitoring of managers in both listed equities and private equity.

The Luxembourg-registered UCITS fund will use the constituents of the Dow Jones Islamic Developed Index as investment universe. It will then exclude the least sustainable, riskiest companies such as those implicated in severe controversies and those not complying with LO SRI policy. It then favours businesses with best-in-class ESG scores using a proprietary ESG materiality framework. It also integrates impact metrics (carbon emissions) to improve the footprint of the strategy. It will then favour the companies that are most financially attractive, using balanced exposure to five financial factors believed to contribute to stock outperformance.  The end result is an optimized, Shariah-compliant, more sustainable equities portfolio.

Lombard Odier has been a socially responsible firm since 1796. Independently owned, with family business roots over seven generations, the Group developed its own ESG analysis in 1997 and was an early signatory of the UN Principles of Responsible Investing in 2007. In March 2019, it became the first global wealth and asset manager to be awarded B Corp certification, one of the world’s leading corporate sustainability ratings. Furthermore, at the One Planet Summit in January this year, Lombard Odier announced its Natural Capital Investment Alliance with His Royal Highness the Prince of Wales, which marked a significant milestone following the launch of the Group's Natural Capital Strategy in November 2020.

-Ends- 

About SEDCO Capital

SEDCO Capital is a global, Shariah-compliant, and ethically driven asset management and investment advisory firm. Our investment philosophy is built on three pillars: Principles, Partnership, and Performance. We provide clients with responsible investment solutions through a dynamic asset allocation process across diversified asset classes that deliver strong risk-adjusted returns. By adopting a global view to investing while looking through the lens of our proprietary Prudent Ethical Investment (PEI) approach, an integration of Shariah-compliant and Responsible Investment principles, we provide our clients with unparalleled global access to investments across developed and emerging markets, including Saudi Arabia, in alignment with their investment objectives.

We currently oversee more than US$ 5 billion in total assets under management (AUM) built on the back of a long successful track record. In 2014 we proudly became the first Saudi company and the world’s first Shariah-compliant asset manager to become signatory to the UN Principles of Responsible Investment (UNPRI). We remain steadfast in our pledge to ethical investing, delivered by our team of world class professionals whose interests are aligned with those of our clients. The Firm is headquartered in Jeddah with offices in London, Luxembourg, Riyadh, and Dubai. 

For more information: www.sedcocapital.com

Media contacts:
SEDCO Capital
Maha Abul-Ola
Phone: +966 126906864
Email: mahaa@sedcocapital.com
Brunswick Group
Jamil Fahmy
Phone: +971 569940847
Email: sedcocapital@brunswickgroup.com

About Lombard Odier

Lombard Odier is a leading global wealth and asset manager. For 225 years and through more than 40 financial crises the Group has combined innovation and prudence to align itself with the long-term interests of private and institutional clients. The Group is solely owned by its Managing Partners and has a strong, liquid and conservatively invested balance sheet with a CET1 ratio of 29.1% and a Fitch rating of AA-.

Lombard Odier provides a complete offering of wealth services, including succession planning, discretionary and advisory portfolio management, and custody. Asset management services are offered through Lombard Odier Investment Managers (LOIM). The Group has created cutting-edge banking technology, which is also leveraged by other Swiss and European based private banks and financial institutions.

The Group had total client assets of USD 381 billion at 30 June 2021. Headquartered in Geneva since 1796, at end-June the Group had 28 offices in 23 jurisdictions and employed 2,620 people.

For more information: www.lombardodier.com 

Lombard Odier Group 
Rue de la Corraterie 11
1204 Geneva – Switzerland
www.lombardodier.com 
Andreas Kessler
Media relations
an.kessler@lombardodier.com
Sabina Krauz
Media relations
s.krauz@lombardodier.com 

[1] One of the world’s leading corporate sustainability ratings, see www.bcorporation.net 

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