Lombard Odier Investment Managers launches China High Conviction strategy

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Lombard Odier Investment Managers launches China High Conviction strategy

Strategy targets opportunities arising from the continuing shift towards high quality, domestically driven growth in China.

Lombard Odier Investment Managers (“LOIM”) has expanded its global high conviction equity offering with the launch of a new China strategy, which aims to capitalise on the compelling opportunities emerging within the Chinese market.

China has experienced strong growth over the past two decades, mainly driven by globalisation. Yet today’s Chinese economy is rapidly diversifying into services, supported by a growing highly educated workforce. The economy is underpinned by excellent research and development facilities, with a notable shift towards the rapid adoption of efficient technology. These foundations, combined with a comprehensive societal shift motivated by millennials and their unique consumption patterns, create a highly desirable investment environment.

LOIM’s China High Conviction strategy invests in high quality companies with sustainable business models that have the potential to deliver attractive economic returns over the long term. The strategy captures several investment themes across a diversified portfolio of 30 to 50 stocks, balanced across three buckets (quality value, high growth and corporate events) to navigate through different market cycles.

The strategy identifies companies based on a disciplined approach involving fundamental research and forward-looking analysis of business models and valuation. The resulting concentrated portfolio is strongly linked to the growing Chinese domestic demand where the future growth potential is.

The strategy is managed by LOIM’s Asia investment team – comprised of Portfolio Managers Zhikai Chen, Roxy Wong, Odile Lange-Broussy and Jinwen Ouyang. The team has a proven track record managing LOIM’s Asia High Conviction strategy, which has consistently outperformed its benchmark and peers.

Didier Rabattu, Head of Equities at LOIM, commented: “The opportunity in China is unparalleled in our view. Traditional equity indices have consistently under-represented Chinese companies and we believe it is still an untapped and high-potential market. China’s prolonged growth and extensive diversification into domestically-driven sectors will continue to transform the investment universe and this strategy is perfectly placed to capture these opportunities.”

Zhikai Chen, Portfolio Manager & Head of Asia Ex-Japan Equities at LOIM, added: “The nature of economic growth in China is changing, which is creating compelling investment opportunities in the region. Millennials and the middle class are transforming China’s society and its consumption patterns. This, together with a move to transform China into higher value added industries with a focus on sustainability, continues to drive the substantial transformation of the Chinese economy over the past decade. As Chinese equity markets continue to perform, we believe this strategy is well positioned to help investors capture the associated benefits.”

 

About Lombard Odier IM

Lombard Odier Investment Managers is the asset management business of the Lombard Odier Group, which has been wholly owned and funded by its partners since its establishment in 1796.

Our independent structure and our partners’ involvement in the day-to-day management of the firm allows us to focus entirely on our clients’ needs, fostering trust and alignment of interest. Throughout our history, we have been rethinking the old and embracing the new in our efforts to help our clients achieve their objectives in a changing world.

We provide a range of investment solutions to a group of clients that are all long-term oriented in their many and diverse ways. Our heritage, and our combination of the best of conservatism and innovation, keeps us well-positioned to create lasting value for our clients. Our investment capabilities span Fixed Income, Convertible Bonds, Equities, Multi-Asset and Alternatives.

Sustainability is absolutely central to our investment philosophy; we believe it is the founding principle of economic outcomes, and will drive investment returns over the long term.

With more than 140 investment professionals, we are a global business with a network of 13 offices across Europe, Asia and North America and have assets under management of 56 billion CHF (as at 30 June 2020).

 

For more information: www.lombardodier.com

 

Contacts

Celeste Herriger
Head of PR, Lombard Odier Investment Managers
Tel.: +44 20 3206 6167
 

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