investment viewpoints

    In bloom: the 1st year of LO Funds-Natural Capital

    In bloom: the 1st year of LO Funds-Natural Capital

    Need to know

    •    Launched one year ago, our Natural Capital fund has convincingly outperformed its reference index.
    •    It focuses on companies that both preserve and harness nature’s powerful regenerative capabilities – which drive more than 50% of global economic output.
    •    As a founding member of the Natural Capital Investment Alliance, LOIM is a leader in this market.

     

    Some beginnings are worth recounting – in life and in investment. The first year of our Natural Capital fund is one of them.

    Launched in November 2020, the fund is beginning to bloom: with USD 937 mn in assets, it has returned 36.2% versus the reference index 29.5%1, providing early validation of our philosophy and approach to investing in companies preserving or leveraging the regenerative power of nature.

     

    Nature is at the heart of the economy – and our portfolio

    More than 50% of the global economy is moderately or heavily dependent on nature. It is the world’s most productive asset. Yet it is overexploited and undervalued due to the linear and wasteful economic model that is dominant.

    But we believe a powerful transition to a CLIC™ economy – one that is Circular, Lean, Inclusive and Clean – is underway and that companies at the forefront of this shift should thrive as policy, market and technological forces reward sustainable businesses. Our Natural Capital fund focuses on several of its themes: the bio-economy, resource efficiency, zero waste and the outcome-oriented economy.

     

    A leader in natural-capital investment

    Launching our Natural Capital fund was a natural move for LOIM. As a founding member of the Natural Capital Investment Alliance and part of the Sustainable Markets Initiative, we believe that increasing investment in natural capital requires simpler access to clear opportunities.

    Despite launching the fund in uncertain market conditions as second waves of covid-19 weighed on the global economic outlook, our investment process, diversification and risk management approaches have yielded positive results.

    In this video, Alina Donets, Portfolio Manager, unpacks natural-capital growth sectors and her outlook for the market.

     

    Discover more about our Natural Capital fund here.

     

     

    Sources

    [1] Source: LOIM provisional performance for IA share class of LO Funds-Natural Capital. Returns as on November 16, 2021. Past performance is not a guarantee of future results. No reference index is directly comparable in terms of universe and composition to a given Sub-Fund. However, the Sub-fund uses the MSCI World SMID Cap TR ND index for performance and internal risk indicators comparison.

    important information.

    This marketing document is issued by Lombard Odier Funds (Europe) S.A. a Luxembourg based public limited company (SA), having its registered office at 291, route d’Arlon, 1150 Luxembourg, authorised and regulated by the CSSF as a Management Company within the meaning of EU Directive 2009/65/EC, as amended; and within the meaning of the EU Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD). The purpose of the Management Company is the creation, promotion, administration, management and the marketing of Luxembourg and foreign UCITS, alternative investment funds ("AIFs") and other regulated funds, collective investment vehicles or other investment vehicles, as well as the offering of portfolio management and investment advisory services.
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    NOTICE TO RESIDENTS OF THE UNITED KINGDOM The Fund is a Recognised Scheme in the United Kingdom under the Financial Services & Markets Act 2000. Potential investors in the United Kingdom are advised that none of the protections afforded by the United Kingdom regulatory system will apply to an investment in Lombard Odier Funds and that compensation will not generally be available under the Financial Services Compensation Scheme. This document does not itself constitute an offer to provide discretionary or non-discretionary investment management or advisory services, otherwise than pursuant to an agreement in compliance with applicable laws, rules and regulations.

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    Important information on performance 
    Past performance is not a guarantee of future results. 
    Where the fund is denominated in a currency other than an investor's base currency, changes in the rate of exchange may have an adverse effect on price and income. All performance figures reflect the reinvestment of interest and dividends and do not take account the commissions and costs incurred on the issue and redemption of shares/units; performance figures are estimated and unaudited. Net performance shows the performance net of fees and expenses for the relevant fund/share class over the reference period. Source of the figures: Unless otherwise stated, figures are prepared by LOIM.
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    Any benchmarks/indices cited herein are provided for information purposes only. No benchmark/index is directly comparable to the investment objectives, strategy or universe of a fund. The performance of a benchmark shall not be indicative of past or future performance of any fund. It should not be assumed that the relevant fund will invest in any specific securities that comprise any index, nor should it be understood to mean that there is a correlation between such fund’s returns and any index returns.
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    it should be understood that they will not of themselves be sufficient to give a clear and balanced view of the investment process undertaken by the manager or of the composition of the investment portfolio of the Fund.                                                         
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