World Brands
investing in the world’s most valuable brands.
We believe that megatrends and mega-challenges will have a transformative effect on economies and the brands that drive them.
These long-term trends and challenges are awakening new high profile brands while others may fail to adapt.
LO Funds – World Brands aims to identify those high quality companies, which display sustainable attractive long-term growth potential, and a best in class brand.1
sub-fund details:
brands 2030: We believe that a long-term shift in behaviour will have a large impact on brands.
 | Go Sustainability We see a transformation already underway, one that brings a CLICTM economy: Circular, Lean, Inclusive, and Clean. This mindset will become standard among consumers. Responsible spending will grow exponentially with brands leading the transition. |
 | Go Asia The world will have 1bn more people by 2030 and 2bn more in the middle class. This rising middle class and the Millennials and Generation Z represents the largest opportunity for leading and new brands, especially in Asia. |
 | Go Digital Digital and connected consumption will become bigger than brick and mortar. Artificial Intelligence, Sharing Platforms and Social Commerce will reinvent the shopping experience, creating new avenues of revenues for brands. |
why invest?
Investing in the world’s most valuable brands, with the aim to generate capital growth over the long term.
Harnessing the power of brand
Brand power: the investment universe is built by identifying companies with hard-to-replicate intangible assets (brand or platform value) and pricing power.
Capturing new markets: we aim to access the significant growth opportunities for leading and new brands that are emerging through large new consumer groups, including the Emerging Markets middle class and the new digital generations.
Digital consumption: we invest in digital brands that are likely to benefit as digital consumption overtakes offline consumption and artificial intelligence, sharing platforms and social commerce reinvent the shopping experience.
Sustainability: we aim to invest in brands with the sustainable mindset necessary to transform sustainable challenges into opportunities.
Balanced approach: we seek to build a resilient portfolio by diversifying across three categories: global brands, upcoming brands and digital brands.
Disciplined: bottom-up selection is based on a combination of disciplined and fundamental analysis, company visits and meetings with industry experts.
Secular forces are driving long-term societal change for brands.
| Go Sustainability – Electric vehicles | Go Asia – China’s beauty market | Go Digital – reinventing the shopping experience |
 |  |  |
| Global sales of electric vehicles are set to drastically increase in the coming years. By 2030, 50% of the new vehicles sold in China will be EV. The future of electric cars will help drive the CLIC economy and will be a significant investment opportunity in our view.3 | China is leading the world’s luxury market and will account for 40% of luxury sales by 2025. The Chinese Millennial and Gen-Z population will grow to a sizeable consumer of luxury brands. This will be replicated in other Asian countries.4 | From ground coffee to luxury fashion, few brands can ignore the digital race, paving the way for e-commerce solutions. In addition, brands are now using the digital world to reach customers in more mediums than ever before. For example, over 1 billion people follow brands on the social media platform Instagram.5 |
investment team.
 | Juan Mendoza Lead Portfolio Manager |
 | Andrew Gowen |
investment approach.
At Lombard Odier Investment Managers, we believe sustainability will drive future return potential
A strong and clear philosophy
We adopt a rigorous and disciplined investment approach, seeking to navigate through global consumer cycles.
Strict risk management and focused fundamental research sit at the core of our process, ensuring transparency and accountability in every investment decision.
A well-defined investment process
In the first step, we create our world brands universe, which includes companies that have strong brand or platform value and exposure to our ‘2030 trends for brands’.
Next, we analyse companies’ financials and business practices to select the most attractive stocks to include in our ‘sustainable investment universe’.
Lastly, the portfolio manager conducts fundamental, forward-looking analysis to build a high conviction portfolio of 30-60 companies that we believe will generate sustainable growth over the long term.
Source: LOIM. Minimum USD 1 billion market cap, minimum USD 5 million average daily liquidity, listed in developed markets. Allocations are subject to change. It illustrates the investment process undertaken by the manager in respect of a certain type of investment, but may not be representative of the Fund’s past or future portfolio of investments. For illustrative purposes only. There can be no assurance that the Sub-Fund’s investment objective will be achieved or that there will be a return on capital or that a substantial loss will not be incurred. Holdings/allocations are subject to change. Past performance and forecasts are not a reliable indicator of future returns of the Sub-Fund. Awards and ratings subject to change without notice.
sub-fund details:
sources.
4 Source: China Luxury Report 2019.
5 Source: McKinsey, 2021.
contact us.
important information
UCITS have no guaranteed return and past performance does not guarantee the future ones.
Lombard Odier Funds (hereinafter the“Fund”) is a Luxembourg investment company with variable capital (SICAV).The Fund is authorised and regulated by the Luxembourg Supervisory Authority of the Financial Sector (CSSF) as an Undertaking for Collective Investments in Transferable Securities UCITS under Part I of the Luxembourg law of the 17 December 2010 implementing the European directive 2009/65/EC, as amended (“UCITS Directive”). The Management Company of the Fund is Lombard Odier Funds (Europe) S.A.(hereinafter the“Management Company”), a Luxembourg based public limited company (SA), having its registered office at 291, route d’Arlon, 1150 Luxembourg, Grand Duchy of Luxembourg, authorised and regulated by the CSSF as a Management Company within the meaning of EU Directive 2009/65/EC, as amended. This marketing document relates to “World Brands”, a Sub-Fund of Lombard Odier Funds (hereinafter the “Sub-Fund”).
This marketing communication was prepared by Lombard Odier Asset Management
(Europe) Limited.
The prospectus, the articles of incorporation, the Key Investor Information Documents, the subscription form and the most recent annual and semi-annual reports are the only official offering documents of the Sub-Fund’s shares (the “Offering Documents”). The Offering Documents are available in English, French, German and Italian at www. loim. com and can be requested free of charge at the registered office of the Sub-Fund in Luxembourg: 291 route d’Arlon, 1150 Luxembourg, Grand Duchy of Luxembourg. The information contained in this marketing communication does not take into account any individual’s specific circumstances, objectives or needs and does not constitute research or that any investment strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes a personal investment advice to any investor. This marketing communication is not intended to substitute any professional advice on investment in financial products. Before making an investment in the Sub-Fund, an investor should read the entire Offering Documents, and in particular the risk factors pertaining to an investment in the Sub- Fund. We would like to draw the investor’s attention toward the long-term nature of delivering returns across the economic cycle and the use of financial derivative instruments as part of the investment strategy may result in a higher level of leverage and increase the overall risk exposure of the Sub-Fund and the volatility of its Net Asset Value. Investors should take care to assess the suitability of such investment to his/her particular risk profile and circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. There can be no assurance that the Sub-Fund’s investment objective will be achieved or that there will be a return on capital. Past performance is not a reliable indicator of future results. Where the Sub-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. Please take note of the risk factors.
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Nevertheless, all information and opinions as well as the prices, market valuations and calculations indicated herein may change without notice. Source of the figures: Unless otherwise stated, figures are prepared by Lombard Odier Asset Management (Europe) Limited. The tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Lombard Odier does not provide tax advice and it is up to each investor to consult with its own tax advisors. The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.
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