investment viewpoints

The next economic revolution

The next economic revolution
Hubert Keller - Managing Partner

Hubert Keller

Managing Partner

The next economic revolution is already underway. At Lombard Odier Investment Managers, we believe it will drive returns in the next three to five years and beyond.

The notion of 'sustainability' has most commonly been associated with climate change, but this current revolution goes way beyond that single, albeit very important, issue. It is transforming our economies and the companies that drive them. We believe it will affect every corner of the globe and every asset class in every investment portfolio.

Our current economic, social and governance models are unsustainable, in our view. We are facing some significant long-term structural trends, which are already changing aspects of the ecosystem within which companies exist.

These include, but are by no means limited to:

  • Changes in our physical environment caused by climate change;
  • Human demographics as our population expands, gets older and becomes more mobile;
  • The depletion of natural resources in the face of a growing population;
  • Increasing digitalisation and connectivity, which is disrupting traditional governance, social and consumption models;
  • Rising inequality, in all its forms, which is already undermining our post-World War II geopolitical stability.

Our operating model has been under pressure for some time, but now we believe it simply has to change.

We have to more fundamentally rethink our approach to many established norms, such as transport, food systems, healthcare, education, data management, infrastructure and on and on. No country, sector, company, or asset class will be untouched.

This is the Sustainability Revolution, and, we believe, it is the largest investment opportunity in history.

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important information.

For professional investor use only.
This document is issued by Lombard Odier Asset Management (Europe) Limited, authorised and regulated by the Financial Conduct Authority (the “FCA”), and entered on the FCA register with registration number 515393.
Lombard Odier Investment Managers (“LOIM”) is a trade name.
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