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    Lombard Odier Investment Managers launches China High Conviction strategy

    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
     

    important information.

    This document has been 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.
    Lombard Odier Investment Managers (“LOIM”) is a trade name.
    This document is provided for information purposes only and does not constitute an offer or a recommendation to purchase or sell any security or service. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful. This material does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. Before entering into any transaction, an investor should consider carefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. This document is the property of LOIM and is addressed to its recipient exclusively for their personal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose without the prior written permission of LOIM. This material contains the opinions of LOIM, as at the date of issue.
    Neither this document nor any copy thereof may be sent, taken into, or distributed in the United States of America, any of its territories or possessions or areas subject to its jurisdiction, or to or for the benefit of a United States Person. For this purpose, the term "United States Person" shall mean any citizen, national or resident of the United States of America, partnership organized or existing in any state, territory or possession of the United States of America, a corporation organized under the laws of the United States or of any state, territory or possession thereof, or any estate or trust that is subject to United States Federal income tax regardless of the source of its income.
    Source of the figures: Unless otherwise stated, figures are prepared by LOIM.
    Although certain information has been obtained from public sources believed to be reliable, without independent verification, we cannot guarantee its accuracy or the completeness of all information available from public sources.
    Views and opinions expressed are for informational purposes only and do not constitute a recommendation by LOIM to buy, sell or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change. They should not be construed as investment advice.
    No part of this material may be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorised agent of the recipient, without Lombard Odier Funds (Europe) S.A prior consent. ©2020 Lombard Odier IM. All rights reserved.

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