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.

glossary.

Global FinTech

Embracing the digitalisation of finance
 

Fintech has profoundly disrupted the financial services industry since its emergence in the aftermath of the 2008 global financial crisis. As it continues to transform the financial landscape over the next decade and beyond, our Global FinTech strategy seeks to help investors tap into this sustainable long-term trend.

*Source: Fintech Market Size, Share, Price, Growth, Report 2023-2028 (expertmarketresearch.com)

the future is FinTech.

Fintech is revolutionising financial services and looks set to shape the future trajectory of the industry. Just think of how much payments and mobile banking have changed in the past 10 years, and then imagine more changes of a similar magnitude occurring over the next decade.

Fintech, or financial technology, is the broad term applied to technologies that either enhance existing financial services or enable the creation of new products. It both disrupts legacy services and sustains innovation within them. 

Within certain areas, fintech solutions equip traditional providers with the tools to retaliate and defend their market position.

We believe fintech will eventually evolve into a new financial service sector comprised of very different players. The winners and losers are being determined as we speak and are mostly characterised by their ability to transform legacy business and offer relevant services at competitive prices.

five FinTech themes.

Financial services and companies are changing rapidly by embracing digital technologies. In general, we believe five core areas will drive investment opportunities in the industry over the next two decades:  

FinTech universe of opportunities.

  • An increasingly sophisticated digital payments infrastructure is enabling this transformation. Singapore and the Netherlands currently lead with digital payments, while Italy, Greece and most emerging markets remain largely cash-based societies.

    Snapshot of key digital payments companies:
     

  • A significant number of people across the world lack exposure to financial services. For example, almost a quarter of US households – or 34 million – are either unbanked or underbanked1.

    Key companies supporting digital infrastructure include:
     

    1 Source: Federal Deposit Insurance Corporation (FDIC) 2022 American Banker.

  • Digitisation involves unbundling services traditionally provided by banks (payments, lending, insurance and wealth management). This boosts efficiency and fosters the emergence of new banking and fintech services.

    Examples of providers who are enhancing efficiency through digitisation include:
     

  • The rise of technology ecosystems is increasing the need for fintech. This refers to companies (e.g., PayPal, Uber)** that build up large customer bases and then lock them in with additional services. With the Banking as a Service (BaaS) model, traditional banks can integrate digital services directly into the products of non-bank businesses. These tech-ecosystem companies need fintech expertise, creating a large B2B opportunity.

    Examples of tech-ecosystem companies include:
     

  • Cyber security is a necessity for providers of digital financial services, which are particularly vulnerable to hackers. Regulations aimed at preventing cyber-attacks are strengthening, with higher fines for businesses that lack protection. Cybercrime insurance is an example of an area that is growing steadily.

    Key providers of cyber security:
     

**Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document

why us?

Successful trends investing involves the ability to monetise behavioural inefficiencies in the market, where the impact and pace of change are underestimated in the long run. With fintech, new technologies are both transforming legacy financial services providers and enabling new types of services.

The market is constantly changing, requiring bespoke, dual expertise that includes a comprehensive understanding of both financial services and technology. 

At LOIM, the expertise of our dedicated FinTech investment team is uniquely adapted to this sector. The strategy is led by Henk Grootveld, who joined LOIM in January 2020 from Robeco and brings over 20 years of expertise in thematic investment, and managed by Jeroen van Oerle and Christian Vondenbusch, who both joined LOIM with Henk. Jeroen has a specialisation in technology and was previously Portfolio Manager of Robeco’s Global FinTech Equities strategy. Christian is a highly experienced Senior Portfolio Manager with a demonstrated track record in thematic investing and a specialisation in financials.

Together the team have demonstrated an ability to separate short-term hype from the companies making real earnings driven by long-term trends.

our strategy.

Our Global FinTech strategy focuses on capturing value from the technological and digital transformation of the financial services sector.

The strategy follows a high conviction stock-picking process, founded in the continuous fundamental analysis of global markets, as fintech continues to drive the uptake of digital technologies across financial services industries. An active portfolio of around 50 well-diversified stocks is selected, following a disciplined analysis focused on their financial track record and business practices, and a forward-looking assessment of the sustainability of their business models and valuation.

Holdings are diversified across three categories:
 

investment philosophy and process.

We believe sustainability will drive future return potential.

At Lombard Odier Investment Managers, our conviction in sustainability is integrated into our processes, driving everything we do.

Our approach to implementation is rigorous and disciplined thanks to a transversal platform across strategies. This ensures maximum efficiency. 

Our fundamental research is highly focused and benefits from the sharing of best practices and ideas.

Our disciplined approach facilitates strict risk management by ensuring transparency and accountability at every step of the process.
 

Source: LOIM analysis. For illustrative purposes only. 

investment team.

LOcom_AuthorsAM-VanOeorle.png

Jeroen van  Oerle
Co-Portfolio Manager

LOcom_AuthorsAM-Vondenbusch.png

Christian Vondenbusch
Co-Portfolio Manager

LOcom_AuthorsAM-Grootveld.png

Henk Grootveld
Global Trends

Please enter your first name.

Please enter your last name.

Please enter your Company Name.

Please enter your job title.

Please enter a valid professional email address.

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.

Global FinTech: trends to watch in 2024
equitiesAsset Management
equitiesAsset ManagementequitiesDCDBBanksWholesaleOfficial institutionsThird party asset managersGeronne IndependantsInstitutionalConsultantsInsuranceFund of fundsFinTechEndowmentsThemes

Global FinTech: trends to watch in 2024

We believe that our universe of FinTech companies is attractively valued and well-placed to benefit from a broadening of the market in 2024. How will trends like AI and M&A play out in this space? 

AI in financial services
equitiesAsset Management
equitiesAsset ManagementequitiesDCDBBanksWholesaleOfficial institutionsThird party asset managersGeronne IndependantsInstitutionalConsultantsInsuranceFund of fundsFinTechEndowmentsThemes

AI in financial services

There is a great deal of Artificial intelligence (AI) within financial services, but it is not disruptive. Rather, AI is sustaining innovation and improving efficiency. 

Fintech has changed finance forever. What comes next?
equitiesAsset Management
equitiesAsset ManagementFinTech

Fintech has changed finance forever. What comes next?

The disruption caused by fintech has been profound. How will digitalisation continue to alter the financial services landscape?  

FinTech: 3 years of pure-play, high-quality investing
equitiesAsset Management
equitiesAsset ManagementInstitutionalConsultantsDBDCInsuranceOfficial institutionsFinTechWholesaleBanksEndowmentsFund of fundsGeronne IndependantsThird party asset managers

FinTech: 3 years of pure-play, high-quality investing

Since we launched our Global FinTech strategy three years ago, we have maintained a focus on quality growth at a reasonable price. 

Fintech equities: are investors neglecting cybersecurity risk?
equitiesAsset Management
equitiesAsset ManagementInstitutionalConsultantsDBDCInsuranceOfficial institutionsFinTechWholesaleBanksEndowmentsFund of fundsGeronne IndependantsThird party asset managers

Fintech equities: are investors neglecting cybersecurity risk?

Cyberattacks exact significant financial costs on companies – but are these being priced-in to equity valuations?

FinTech trends to watch in 2023
equitiesAsset Management
equitiesAsset ManagementInstitutionalConsultantsDBDCInsuranceOfficial institutionsFinTechWholesaleBanksEndowmentsFund of fundsGeronne IndependantsThird party asset managers

FinTech equities: trends to watch in 2023

Excessive valuations in our FinTech universe are now largely gone, contributing to a positive 2023 outlook, in our view. 

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. 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. MSCI information is provided “as is” and the user of this information assumes full responsibility for the use that is made of this information. MSCI, each of its affiliates and others involved in or concerned with the compilation, calculation or creation of MSCI information (collectively the “MSCI Parties”) expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, noninfringement, market value and fitness for a specific purpose) with respect to such information. Without limiting the foregoing, in no event shall the MSCI Parties be liable for any direct, indirect, specific, incidental, punitive, consequential (including, without limitation, lost profits) or other damages. (www.msci.com). 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. 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 financial 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 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) 254308. Alternatively, you can address your complaint free of charge to the national complaint service in Belgium, OMBUDSMAN: Noth Gate II, Boulevard du Roi Albert II, no 8, Boite 2 2, 1000 Brussels, Tel: (+32) 2 545 77 70, Fax: (+32) 2 545 77 79, Email: Ombudsman@ Ombudsfin.be. Germany: German Information and Paying agent: DekaBank Deutsche Girozentrale 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 Funds (Europe) S.A. Dutch branch Singapore: This marketing communication has been approved for use by Lombard Odier (Singapore) Ltd for the general information of accredited investors and other persons in accordance with the conditions specified in Sections 275 and 305 of the Securities and Futures Act (Chapter 289). Recipients in Singapore should contact Lombard Odier (Singapore) Ltd, an exempt financial adviser under the Financial Advisers Act (Chapter 110) and a merchant bank regulated and supervised by the Monetary Authority of Singapore, in respect of any matters arising from, or in connection with this marketing communication. The recipients of this marketing communication represent and warrant that they are accredited investors and other persons as defined in the Securities and Futures Act (Chapter 289). This advertisement has not been reviewed by the Monetary Authority of Singapore. 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/will become available free of charge at the Swiss Representative: Lombard Odier Asset Management (Switzerland) SA., 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) SA, London Branch for Retail Clients in the United Kingdom. The SubFund 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, 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 – This marketing communication has been approved for use by Lombard Odier (Singapore) Ltd. for the general information of accredited investors and other persons in accordance with the conditions specified in Sections 275 and 305 of the Securities and Futures Act (Chapter 289). Recipients in Singapore should contact Lombard Odier (Singapore) Ltd., an exempt financial adviser under the Financial Advisers Act (Chapter 110) and a merchant bank regulated and supervised by the Monetary Authority of Singapore, in respect of any mattersarising from, or in connection with this marketing communication. The recipients of this marketing communication represent and warrant that they are accredited investors and other persons as defined in the Securities and Futures Act (Chapter 289). This advertisement has not been reviewed by the Monetary Authority of Singapore. European Union Members: This marketing communication has been approved for use 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: Belgium. Supervisory Authority: Autorité des services et marches financiers (FSMA), Representative: CACEIS Belgium S.A.,Avenue du Port 86C, b320, 1000 Brussels - 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; Italy: Lombard Odier (Europe) S.A. Succursale in Italia, enrolled in the Milan Companies Register No. 09514880963, R.E.A. No. MI – 2095300. Regulated in Italy by the Commissione Nazionale per la Società e la Borsa (CONSOB) and la Banca d’Italia; 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. This marketing communication may not be reproduced (in whole or in part), transmitted, modified, or used for any public or commercial purpose without the prior written permission of Lombard Odier.
©2023 Lombard Odier IM. All rights reserved.