harnessing the power of brand prestige in a world of slower growth.

harnessing the power of brand prestige in a world of slower growth.

Companies with a prestigious brand may enjoy competitive advantages. A number of long-term trends are reshaping the global landscape, awakening new high profile brands - while others may fail to adapt.

In a world of slower growth, this Sub-Fund aims to identify companies with sustainable financials, sustainable business practices and sustainable business models which can benefit from these long-term trends. We believe these attributes may lead to a sustainable investment opportunity.1

 

sub-fund details:

LO Funds - Global Prestige

 

five forces for brands: competing in a new era.

 

1 Healthy Living.png 2 Leisure.png
Healthy living
A global market for wellness has emerged, ranging from fitness to organic foods2
Leisure
Travel is now one of the largest and fastest growing sectors in the world, outpacing the demand for goods3
3 Emerging-middle-class.png 4 Aspirational-consumption.png
Emerging middle class
Asia’s expanding middle class is trading up to prestigious brands, driving new phases of consumption4
Aspirational consumption
Luxury markets are moving online as they look to target millennials5
    5 Disruptive-technology.png  
  Disruptive technology
Digitally-driven services, from streaming media to online marketplaces, are replacing traditional channels6
 

 

why invest?

A thematic global portfolio of sustainable companies with a prestigious brand or portfolio of brands, aimed at maximising long-term capital growth.

Companies with a prestigious brand are well-placed to create experiences and products that customers place a premium on.7

 

Harnessing the power of brand

Competitive edge: firms with a prestigious brand potentially enjoy advantages such as pricing and bargaining power.

Global marketplace: recognised brands may better capture growing markets or customer segments, such as Asian or millennial spending

Secular forces: in a slower growth world, brands able to cater for changing tastes and to leverage digital innovations are likely to serve their customers better

Diversified: while concentrated inthe consumer and technology sectors,well-known brands can be found inmany fields, including healthcare, industrials and financials.

Balanced approach: we seek to build a resilient portfolio by allocating all potential investments across three distinct categories: best-in-class, growth and corporate events. 

Disciplined: the team’s bottom-up selection is based on a combination of disciplined and fundamental analysis, and company visits and meetings with industry experts.

 

investment team.

Juan-Mendoza.png Juan Mendoza
Lead Portfolio Manager
Jinwen-Ouyang.png Jinwen Ouyang
Analyst

 

investment strategy and philosophy.

At Lombard Odier Investment Managers, we believe sustainability will drive future return potential7

We adopt a three-pillar approach to finding sustainable businesses, looking for those with sustainable financial models, sustainable business practices and sustainable business models. 

1

Sustainable financial models 
We use disciplined financial analysis with the aim to identify excess economic returns. The team looks at companies’ capital efficiency, cash generation and capital dependency as well as comparing their valuations to the economic returns they generate.

2 Sustainable business practices 
The team also considers proprietary extra-financial information (Environmental, Social and Governance) aimed at avoiding the worst corporate practices and controversies which can be damaging both to society and to investment returns.
3 Sustainable business model 
We tap into consumer-led structural trends that encompass demographic shifts and the digital revolution. We believe companies that can harness the power of brand and ride those trends have better staying power through economic or market cycles.

The end result 

The result is an actively managed portfolio of 30-40 stocks that aims to invest in companies able to generate sustainable economic returns through their brand proposition – which we believe enables strong market positions, high pricing power and promising growth prospects..

 

Global e-commerce growth is mindboggling. From USD 2.3 trillion in 2017, it is expected to reach USD 4.5 trillion in 2021.8

 

sub-fund details:

LO Funds - Global Prestige

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: Global Wellness Institute, 2015.

3 Source: 2018 Travel and Hospitality Industry Outlook, Deloitte.

4 Source: Jefferies Asia Expert Summit.

5 Source: How Luxury Brands re-define the customer experience of millennials, McKinsey, 2016.

6 Sources: e-Concessions growth, Goldman Sachs Investment Research, March 2018; Global Entertainment & Media Outlook 2018-2022, PwC.

7 Source: LOIM.

8 Source: Statista, March 2018

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). 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 “Global Prestige”, 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.

The information and analysis contained herein are based on sources considered to be reliable. Lombard Odier makes its best efforts to ensure the timeliness, accuracy, and completeness of the information contained in this marketing communication. 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. © 2018  orningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee reliable indicator of future results.

Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. As a result, you should not make an investment decision on the basis of this information. Rather, you should use the Lipper ratings for informational purposes only. Certain information provided by Lipper may relate to securities that may not be offered, sold or delivered within the United States (or any State thereof) or to, or for
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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. 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.
France – Centralising agent: CACEIS Bank.
Germany – Paying agent: DekaBank Deutsche Girozentrale.
Gibraltar – Information agent: Lombard Odier & Cie (Gibraltar) Limited.
Greece – Paying agent: PIRAEUS BANK S.A.
Italy – Paying agents: Société Générale Securities Services S.p.A., State Street Bank
International GmbH – Succursale Italia, Banca Sella Holding S.p.A., Allfunds Bank
S.A., Italian Branch, BNP Paribas Securities Services, CACEIS Bank Italy Branch.
Liechtenstein – Paying agent: LGT Bank AG.
Luxembourg – Custodian, central administration agent, registrar, transfer Agent,
paying agent and listing agent: CACEIS Bank, Luxembourg Branch.
Netherlands – Paying agent: Lombard Odier Asset Management (Europe) Ltd,
Netherlands Branch.
Spain – Paying agent: Allfunds Bank S.A. – CNMV Number: 498.
Sweden – Paying agent: Skandinaviska Enskilda Banken AB (publ).
Switzerland – The Sub-Fund is registered with the Swiss Federal Financial Market Supervisory Authority (FINMA). The Offering Documents together with the other Shareholders’ information are available free of charge at the Swiss Representative: Lombard Odier Asset Management (Switzerland) S.A., 6, avenue des Morgines, 1213 Petit-Lancy, Switzerland. Swiss Paying Agent: Banque Lombard Odier & Cie SA. 11, rue de la Corraterie 1204 Genève, Switzerland. Publications about the Sub-Fund: www.fundinfo.com. The issue and redemption prices and / or the net asset value (with the mention “excluding commissions”) of the Share classes distributed in Switzerland: www.swissfunddata.ch and www.fundinfo.com. Bank Lombard Odier & Co Ltd is a bank and securities dealer authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA).
United Kingdom – This document is a financial promotion and has been approved for the purposes of Section 21 of the Financial Services and Markets Act 2000, by Lombard Odier Asset Management (Europe) Limited. It is approved for distribution by Lombard
Odier (Europe) S.A., London Branch for Retail Clients in the United Kingdom. The Sub-Fund is a Recognised scheme in the United Kingdom under the Financial Services and Markets Act 2000. UK regulation for the protection of retail clients in the UK and the compensation available under the UK Financial Services Compensation scheme does not apply in respect of any investment or services provided by an overseas person. UK facilities agent: Lombard Odier Asset Management (Europe) Limited. Lombard Odier (Europe) S.A. UK Branch is a credit institution regulated in the UK by the Prudential Regulation Authority (PRA) and subject to limited regulation by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). Details of the extent of our authorisation and regulation by the PRA and regulation by the FCA are available from us on request.
Singapore – The Sub-Funds are not authorised or recognised by the Monetary Authority of Singapore (“MAS”) and the Shares are not allowed to be offered to the retail public in Singapore. Each Sub-Fund is a restricted scheme under the Sixth Schedule to the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations of Singapore. This document can be transmitted only (i) to “institutional investors” pursuant to Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the “Act”), (ii) to “relevant persons” pursuant to Section 305(1) of the Act, (iii) to persons who meet the requirements of an offer made pursuant to Section 305(2) of the Act, or (iv) pursuant to, and in accordance with the conditions of, other applicable exemption provisions of the Act.

European Union Members: This marketing communication has been approved for issue by Lombard Odier (Europe) S.A. The entity is a credit institution authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. Lombard Odier (Europe) S.A. branches are operating in the following territories: France: Lombard Odier (Europe). S.A. Succursale en France, a credit institution under limited supervision in France by the Autorité de contrôle prudentiel et de résolution (ACPR) and by the Autorité des marchés financiers(AMF) in respect of its investment services activities; Spain: Lombard Odier (Europe) S.A. Sucursal en España, Lombard Odier Gestión (España) S.G.I.I.C., S.A.U., credit institutions under limited supervision in Spain by the Banco de España and the Comisión Nacional del Mercado de Valores (CNMV). United States: Neither this document nor any copy thereof may be sent, taken into, or distributed in the United States or given to any US person.

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