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    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. Sustainability risks may lead to a significant deterioration in the financial profile, profitability or reputation of an underlying investment and may therefore have a significant impact on its market price or liquidity. The environmental, social, and governance (“ESG”) considerations discussed herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process.

    glossary.

    Planetary Transition

    Decarbonising and electrifying to reach a net-zero economy

     

    The Planetary Transition strategy invests in undervalued companies embracing system changes linked to the decarbonisation and electrification of industry, transport and the built environment, including transition leaders in carbon-intensive industries.

    Please note before 1 May 2023, the fund was named LO Funds – Climate Transition.

    $2.75 trn

    to be invested in 
    greening of supply 
    by 2030

    74 %

    of final energy supply to be 
    provided by electricity by 20501

    €500 bn

    German infrastructure fund,
    20% of which is directed to
    the climate transition2

    Source: LOIM research projections. (1) International Energy Agency ‘World Energy Outlook’ (2023). (2) Clean Energy Wire.

    investing in net-zero disruption
    investing in net-zero disruption·investment philosophy and strategy·why us?·our approach·investment team ·performance and data·insights

    investing in net-zero disruption.

    We believe the disruption caused by the transition to net-zero emissions creates significant investment opportunities. The shift from an energy system based on fossil fuels to one that is more efficient, decentralised and flexible will be uneven and complex, presenting stock picking opportunities.

    The rise in temperature and the escalating cost of climate change create pain points which act as catalysts for systems change. In turn, these shift profit pools and re-shape equity markets. We see decarbonisation transitioners and electrification solutions gaining market share and creating economic value, driving the move to a net-zero and digitally enabled economy.

    The Planetary Transition strategy aims to identify opportunities in the equity market and deliver superior returns by:

    1

    Informing our stock selection with analysis of disruptive system changes in the companies leading the transition to net zero and those providing electrification solutions; embedding key enabling technology in our investable universe 

    2

    Seeking companies that we identify as being mispriced, able to defy the consensus with resilient growth and avoiding multiple compression

    3

    Constructing a portfolio that balances risk with return.

    investment philosophy and strategy.

    System-change investing asks where trends are leading to inescapable pain points, triggering inflection points towards superior economic systems that can economically outcompete existing ones while restructuring value chains, profit pools and equity markets. The pain point of the cost of rising temperature is a key catalyst for systems change, driving the economic transformation to a net-zero economy and creating investment opportunities. The Planetary Transition strategy invests in the disruptive forces of system changes taking shape around decarbonisation transitioners and electrification solutions.

    our assumptions around the energy transition

    future energy consumption

    more than 70% to be in the form of power

    flexibility and decentralisation

    to emerge as key characteristics

    low-carbon sources of energy and energy efficiency

     to lead the way, aiding higher productivity

    carbon pricing and other regulatory mechanisms

    will lay bare the costs of emissions

    climate adaptation

    will climb up the political and economic agenda

    We translate our assumptions around the energy transition into investment opportunities in segments including industrials, utilities, automotives and mobility and metals.

    Our strategy seeks:

    • Companies that provide products and services fuelling the transition and can translate this into earnings growth and resilient valuations
    • Players with strong capital discipline, operating in supportive policy environments and with a track record of good risk management
    • Names employing digitalisation as an enabling technology, including semiconductors, cloud services, cybersecurity and software.

    why us?

    In contrast with competitors, the Planetary Transition strategy embraces net-zero opportunities beyond clean-tech and also invests in financial services and the food value chain. We do not shy away from carbon-intensive industries (such as metals, cement, utilities and transport) that we identify as benefitting from the transition. The strategy includes key enabling technology and focuses on idiosyncratic active risk. Forming part of our holistiQ range of solutions, the Planetary Transition strategy is a key pillar in our Global Systems Change strategy.

    The depth and quality of research from our holistiQ sustainability research team about system changes also sets us apart. The research and investment teams are dedicated to translating our science-based, quantitative and qualitative research on system changes into potentially superior returns for our clients.

    Our research partnerships5 include:

    our approach.5

    Key characteristics

    • A high conviction portfolio comprised of about 45-75 companies
    • Expected tracking error of 5 to 7%
    • Invests in mispriced stock opportunities to find players that will beat the consensus growth fade

    investment team. 6

    locom/_legacy/images/experts/LOcom_AuthorsAM-Rabattu

    Didier Rabattu
    Co-Lead Portfolio Manager, Planetary Transition,
    Co-CIO Equities (retiring)
    LOcom_AuthorsAM-Udall.png
    Paul Udall
    Co-Lead PM,
    Planetary Transition
    LOcom-AuthorsAM-Burke-Smith.png
    Peter Burke-Smith
    Co-PM
    Planetary Transition

     

    supported by.

    LOcom-AuthorsAM-Menges.png

    Pascal Menges
    Client Portfolio Manager

    Find out more about our Planetary Transition fund, including share classes.

    more information

    sources

    3 Source: NAOO Centers for Environmental Information (2025), LOIM analysis. For illustrative purposes only.
    4 Source: NAOO Centers for Environmental Information (2025) , LOIM analysis. For illustrative purposes only
    5 Source: LOIM. For illustrative purposes only.
    6 Source: LOIM. Data as of 21 May 2025. Teams are subject to change

    insights.

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    The equity market is ripe for a broadening

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    LOIM appointed by Wiltshire Pension Fund for sustainable equity mandate

    What if the Inflation Reduction Act were repealed?
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    What if the Inflation Reduction Act were repealed?

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    COP28: delivering on food, nature and energy

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    Sustainability shortfall: cyclical or structural?

    Debunking 10 myths about electric vehicles
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    Debunking 10 myths about electric vehicles

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    Nuclear energy: still dividing opinions

    Do biofuels have a role in a sustainable world?
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    Do biofuels have a role in a sustainable world?

    more insights

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    important information.

    This document is a Corporate Communication and is intended for Professional Investors only. This document is a Corporate Communication for Professional Investors only and is not a marketing communication related to a fund, an investment product or investment services in your country. This document is not intended to provide investment, tax, accounting, professional or legal advice. This document is issued by Lombard Odier Asset Management (Europe) Limited (hereinafter the “Company”).

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