climate transition: the greatest challenge and opportunity of our times.

Increasing physical manifestations of an already damaged climate draw stark attention to the scale, scope and urgency of a climate transition. The world needs to decarbonise – and needs to do it quickly. At the same time, pressure from consumers, regulators and innovation is rapidly changing the business landscape. This situation creates an attractive opportunity to invest in companies that may benefit from a global transition to net-zero emissions and a climate-resilient economy.1

 

sub-fund informazioni.

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the challenges and the opportunities.

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There is an urgent need for greater climate action. Current levels and trends in global greenhouse gases could force temperatures to rise by 3°C or higher this century.2

The world must rapidly transition to a net-zero economy. To stabilise Earth’s temperature, we must reduce emissions by 50% by 2030 and transition to net-zero CO2 by 2050.3

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Economic growth and decarbonisation requires investment to surge. Annual investment needs to almost double to USD 5.5 trillion this decade to remain below the 2°C increase. Capital must be reallocated to both decarbonise and adapt to a carbon-damaged world.3

This creates a significant investment opportunity across all sectors. We believe that companies that embrace the transition to a climate-resilient economy will be well positioned to generate growth.1

 

Perché investire?

The Sub-Fund invests in companies across all sectors that we believe may benefit from the transition to a carbon-constrained world and the adaptation to a carbon-damaged world.

The transition to a low-carbon and climate-resilient economy will require innovation, commitment and significant investment. Regulation, consumer behaviours, investor pressure and technological innovations are emerging as strong drivers of this change.

 

1

A carbon–constrained world

The global economy must decarbonise and bring greenhouse gases to net-zero. Carbon most likely will be heavily regulated and repriced substantially.

This creates growth opportunities for solution providers that are developing technologies to reduce, avoid and capture carbon. For example, companies offering energy efficiency improvement and renewable energy projects.

At the same time, companies within carbon-intensive industries that are transitioning to ‘greener’ practices will benefit from a competitive advantage and enhanced profitability avenues.

2

A carbon–damaged world

The world must quickly adapt to environmental pressures from climate change, pressures that are already evident today and will accelerate dramatically.

Companies that base their business models on a reshaping environment, may offer growth opportunities for investors. Such as companies focused on building a more resilient infrastructure, those that monitor physical and financial risks related to climate exposure, or companies that enable risk diffusion through insurance or green investment.

Preparing our cities and infrastructure for a reshaped environment will be one of the most important tasks for humans in the next decade.

investment strategy and philosophy.

from core themes to climate transition.

Our investment process is a multi-team effort involving specialists in sustainability research, investment strategy, sector analysis and portfolio management.

Detailed sustainability reporting is provided to inform investors of their investment’s impact.
 

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Source: LOIM. 1 MSCI WORLD ND TR (USD). For illustrative purposes only. No benchmark is directly comparable in terms of universe and composition to a given Sub-Fund. There can be no assurance that the investment objective will be achieved or that there will be a return on capital or that a substantial loss will not be incurred. LOIM is an active member of Climate Action 100+: an investor initiative to ensure the world’s largest corporate GHG emitters take necessary action on climate change. For more information on the LOIM ESG process please refer to the following link: https://am.lombardodier.com/home/the-sustainability-revolution-wi.html.

 

a knowledge powerhouse in sustainable and thematic investing.

The strategy draws on the expertise of our Sustainable Investment Research, Strategy and Stewardship (SIRSS) team, who identifies the key sustainable risks and opportunities across all investment sectors. This enables our analysts and portfolio managers to make informed decisions when assessing whether companies could be well positioned to thrive through sustainability challenges. SIRSS has developed research which analyses the scientific, technological and regulatory forces underpinning the investment proposition.

 

stewardship.

The SIRSS team also works alongside the portfolio managers and analysts to exercise active ownership, engagement and stewardship. Companies are encouraged to set clear, measurable objectives addressing financially material ESG issues and align with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
 

Il team di investimento.

LOcom_AuthorsAM-Rabattu.png Didier Rabattu
Lead Portfolio Manager, Head of Equities, Limited Partner
LOcom_AuthorsAM-Meunier.png François Meunier
Portfolio Manager
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Paul Udall
Portfolio Manager

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Dr Christopher Kaminker
Head of Sustainable Investment Research, Strategy & Stewardship

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Pascal Menges
Client Portfolio Manager, Head of Investment Process for Equities

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Rebeca Coriat
Head of Stewardship

 

sub-fund informazioni.

Cliccare qui per accedere alle informazioni sul sub-fund.

 

sources.

1 There can be no assurance that the investment objective will be achieved or that there will be a return on capital or that a substantial loss will not be incurred.
2 Sources: Watson and Le Quéré (2018); Aon Benfield (2019).
3 Source: IPCC Special Report: Global Warming of 1.5°C. 

 

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”). This marketing document particularly relates to Climate Transition, a Sub-Fund of LO-Funds (hereinafter the “Sub-Fund”). 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, 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. LO Funds – Climate Transition has not yet been launched. The information contained herein is subject to completion and amendment. This marketing communication was prepared and issued by Lombard Odier Asset Management (Europe) Limited. Lombard Odier Investment Managers (“LOIM”) is a trade name. 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/will become 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. MSCI information may only be used for internal purposes, may not be reproduced or disseminated in any form whatsoever and may not be used as the basis or constituent element of any financial instruments, products or indices. MSCI information should not be construed as investment advice or recommendations to you to make (or refrain from making) any investment decision and cannot, as such, be considered reliable. Historical data and analyses should not be considered as any indication or guarantee in any analysis, forecast or prediction of future performance. 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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. 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