Asia high conviction equities
As it grows, Asia is transforming – creating potential opportunities for discerning investors.
Driven by a rising middle class and an economic shift from manufacturing to services, business models and consumption patterns are changing. Some companies may prosper, others may fade away.
Lombard Odier Investment Managers takes a highly selective approach, focusing on the sectors and companies it expects to benefit most from Asia’s evolution.
Investing for the long-term, we put sustainability at the heart of our process.1
Asia: growth and transformation-
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Growth engine
Asia ex-Japan could contribute 30% of global consumption growth from 2015-2030.2
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Structural change
Driven by a rising middle class, business models and consumer demand trends are changing.
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Winners and losers
As Asian economies shift towards services, select sectors and companies may prosper.
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Under-represented Asia ex-Japan is under-represented in global equity indices, relative to its share of the overall market.3 |
why invest?
Asia is growing and evolving. We believe a focused approach is key to seizing the opportunities and managing risks.
Asia ex-Japan is driving worldwide growth and the rise of the global middle classes.4
Fast growth, profound change
Asia ex-Japan is forecast to grow faster than the rest of the world5, creating diverse opportunities for investors. However, global equity indices offer limited exposure to the region.6
Asia is also changing. We believe the financials, technology and consumer sectors are likely to be key beneficiaries of Asia’s transformation. Other sectors face structural headwinds as business models, lifestyles and demand patterns change.
We believe a highly-selective investment approach centred on sustainability is vital.
Selective and diverse
We target attractively-priced companies generating excess economic returns7 – and aim to avoid structurally-challenged business models.
To navigate economic cycles, we diversify across three themes:
- Highly profitable businesses with dominant, defensible market positions
- Businesses with high growth potential
- Corporate event candidates, such as businesses that may be acquired or merged
investment team.
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Dhiraj Bajaj CIO, Asia Fixed Income and Equity |
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Wee Jia Low |
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Ashley Chung Co-Portfolio Manager |
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Faye Gao Co-Portfolio Manager |
investment strategy and philosophy.
We believe a highly-selective investment approach centred on sustainability is vital for investors in Asia ex-Japan.
At Lombard Odier Investment Managers, we believe sustainability will drive future return potential.8
We adopt a three-pillar approach to finding sustainable businesses, looking for those with sustainable financial models, sustainable business practices and sustainable business models.
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Financial models
We look to identify excess economic returns, focusing on companies with capital efficiency, cash generation and limited dependency on external capital.
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| 2 | Business practices The team also considers extra-financial information (Environmental, Social and Governance criteria) aimed at avoiding the worst corporate practices and controversies which can be damaging both to society and to investment returns. |
| 3 | Business model We believe that companies with business models that are well-positioned for long-term trends – such as the transformation taking place across Asia – will have staying power through economic cycles. |
The end result
The result is a high conviction portfolio of 30-50 stocks that seeks to invest in attractively priced companies set to benefit from Asia’s growth and evolution, with the potential to achieve above-market growth and navigate economic cycles.
Sustainability-accredited
The strategy was accredited by the ‘Towards Sustainability’ quality standard in November 2020 / February 2021, in recognition of our robust sustainability framework, analysis and stewardship approach.
Source: www.towardssustainability.be. The quality standard is developed on the initiative of Febelfin. Awards and ratings subject to change without notice. The Central Labelling Agency (CLA) assumes no responsibility and shall not be liable for the noncompliance with applicable rules and regulations regarding, among others but not limited to, the marketing of financial instruments by a product provider, a financial institution or any other market participant or party who uses the ‘Towards Sustainability’ label.
contact us.
sources.
1 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.
2 Source: McKinsey Global Institute estimates, April 2016. Includes Asia and Australasia cities but excludes Central Asia.
3 Source: Bloomberg, 30 November 2017. MSCI World Index market capitalisation in USD split by geographies.
4 Source: LOIM.
5 Source: OECD Data 2015.
6 Source: Bloomberg, 30 November 2017. MSCI World Index market capitalisation in USD split by geographies.
7 There can be no assurance that the Sub-Fund’s investment objective will be achieved or that there will be a return on capital.
8 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. For illustrative purposes only. Holdings/allocations are subject to change. Past performance and forecasts are not a reliable indicator of future returns of the Sub-Fund.
more about our funds.
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.
important information
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 “Asia High Conviction,” 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.
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 Sub-Fund. The performance of a benchmark shall not be indicative of past or future performance of any Sub-Fund. It should not be assumed that the relevant Sub-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 Sub-Fund’s returns and any index returns. Target performance/risk represents a portfolio construction goal. It does not represent past performance/risk and may not be representative of actual future performance/ risk.
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NOTICE TO RESIDENTS IN THE FOLLOWING COUNTRIES:
Austria – Paying agent: Erste Bank der österreichischen Sparkassen AG.
Belgium – Financial services provider: CACEIS Belgium S.A. The Sub-Fund is not appropriate for Belgian retail investors unless the investment subscription is more than EUR 250,000. Please contact your tax advisor to identify the impacts of the Belgian tax “TOB” (“Taxe sur les Operations Boursières”) on your transactions, as well as the impacts of the withholding tax (“Précomptes mobiliers”). Lombard Odier has an internal Complaints Management Service. You can lodge a claim via your Relationship Manager or directly to Lombard Odier (Europe) S.A. Luxembourg, Belgium Branch, Claim Management Service, Avenue Louise 81, Box 12, 1050 Brussels, Fax: (+32) 2 543 08. Alternatively you can address your complaint free of charge to the national complaint service in Belgium, OMBUDSMAN: North Gate II, Boulevard du Roi Albert II, n°8 Boîte 2 2, 1000 Brussels, Tel : (+32) 2 545 77 70, Fax : (+32) 2 545 77 79, Email: Ombudsman@Ombusfin.be.
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Liechtenstein – Paying agent: LGT Bank AG.
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Netherlands – Paying agent: Lombard Odier Asset Management (Europe) Ltd, Netherlands Branch.
Spain – Paying agent: Allfunds Bank S.A.U. – CNMV Number: 498.
Sweden – Paying agent: Skandinaviska Enskilda Banken AB (publ).
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