risks.

The following risks may be materially relevant but may not always be adequately captured by the summary  risk indicator and may cause additional loss: Concentration risk, Emerging market risk and Active management risk.

Future Electrification 

one of the greatest opportunities in the history of capitalism?

 

Electrification is becoming one of the biggest system changes in the history of capitalism – and potentially one of the most significant investment opportunities of our time. Free-falling costs, massive efficiency gains and widespread applications will drive shifts in profit pools across sectors focused on energy demand, supply and enabling solutions.

Source: LOIM Research projections.

a large opportunity set.

LO Funds – Future Electrification aims to invest in companies that are at the forefront of rewiring the global economy. To identify opportunities, we focus on three themes that we believe are crucial growth drivers for mass electrification to develop a highly pure, global thematic universe for research-driven, active stock selection.

rewiring our economies.

There is broad and robust scientific consensus on the actions required to restore the ability of our planet to sustain life and economic activity. Championed by powerful institutions around the globe, governments, businesses and consumers, it underpins the CLIC® transition. Electrification is fundamental to this rewiring, and is accelerating at scale.

 

Source: Making Clean Electrification Possible (2021), Energy Transition Commission.
2019 – IEA Report.
2050 – Supplyside + energy productivity

 

Electrification is transforming the economy, and will generate key outcomes:

  • Outcompete the fossil-fuel economy
  • Unlock efficiency gains and support carbon neutrality
  • Offer the potential for major financial upside for investors
  • We have seen it many times before, yet it still surprises us. Technology-driven transitions tend to follow an ‘S-shaped’ curve.

    At first, change is almost imperceptible. Innovations progress from concept to proven solution. Supportive policies, and the prospect of new sources of profit compel companies to deploy resources and investors to commit capital. As production capacity builds, costs fall, and the winning solution approaches the tipping point of mass-market adoption.

    The transition, which started slowly at first, now happens all at once. Equity markets are generally forward-looking but still often fail to appreciate the scale and speed of change as the S-curve steepens. Electrification is at this stage, as three prerequisites for unlocking green growth coincide: affordability, functionality and accessibility.

    • Affordability: costs for wind, solar and batteries have plummeted by 60-80% in the last 10 years
    • Functionality: the efficiency of solutions such as heat pumps, electric-vehicle (EV) motors and LEDs now beat their incumbents by a factor of 3-5x
    • Accessibility: favourable economics and better performance are seeing these solutions become ubiquitous

    Source: LOIM Research.

    Source: LOIM Research. For illustrative purposes only. There is no guarantee that a target objective will be reached (not an accurate indicator).

electrification investment themes.

portfolio characteristics.

investment team and process.

research.

  LOcom_AuthorsAM-Hohne-Sparborth.png  
  Thomas HÖHNE SPARBORTH, PhD
Head of Sustainability Research
 
 
4 Tried and tested.png 4 Tried and tested.png 4 Tried and tested.png
Systematic 
10 Analysts
Roadmaps
20 Analysts
Fundamental
18 Analysts 

SystemIQ-blue.svg

investment.

LOcom_AuthorsAM-Udall.png   LOcom-AuthorsAM-Burke-Smith.png
Paul UDALL
Lead PM Electrification
 
  Peter BURKE-SMITH
Junior PM Electrification
  4 Tried and tested.png  
  Other Equities PMs
6 Investment Professionals 
 

 

LOcom_AuthorsAM-Rabattu.png
Didier RABATTU 
Equities CIO
Michael-Urban-round-author.png
Michael URBAN, PhD
Chief Sustainability Strategist 

 

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more about our funds.

LO Funds - Future Electrification

Asset Class Equities
Strategy Sustainable Equities
Category Thematic/Sectorial
Share class name ISIN Currency Date NAV
Past performance is not a guarantee of future results. If the funds are denominated in a currency other than that in which the majority of the investor's assets are held, the investor should be aware that changes in rates of exchange may affect the value of the funds' underlying assets. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

insights.

Clear all
COP28: delivering on food, nature and energy
investment viewpoints Institutional
investment viewpoints Institutional Planetary Transition Sustainable Circular Economy Future Electrification New Food Systems TNZ equities

COP28: delivering on food, nature and energy

Our key takeaways from COP28 include significant agreements on nature, food and energy systems, plus insights from Lombard Odier’s re-NATURE hub.

Debunking 10 myths about electric vehicles
investment viewpoints Institutional
investment viewpoints Institutional Wholesale Future Electrification Planetary Transition Transition materials

Debunking 10 myths about electric vehicles

Misconceptions persist about electric vehicles. We debunk 10 of the most common myths using analysis based on science, engineering, and market research.

Transition investing for today’s economic revolution
investment viewpoints Asset Management
investment viewpoints Asset Management Investment strategies DC DB Banks Wholesale Official institutions Third party asset managers Geronne Independants Institutional Consultants Insurance Fund of funds Endowments Equities Circular Economy Future Electrification Planetary Transition New Food Systems

Transition investing for today’s economic revolution

Energy, land and oceans, and materials systems are being revolutionised, bringing sustainable solutions to mass markets. Forward-thinking investors should assess the potential opportunities.

Green Series Webinar – Future Electrification
investment viewpoints Institutional
investment viewpoints Institutional Wholesale Future Electrification

Green Series Webinar–Future Electrification

Green Series Webinar replay: Future Electrification

LOIM launches Future Electrification Strategy
investment viewpoints Institutional
investment viewpoints Institutional Future Electrification Corporate/brand Wholesale electrification HolistiQ

LOIM launches Future Electrification Strategy

Capturing opportunities as the energy system transitions to an electrified model.

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