Lombard Odier IM capitalises on the move towards a clean energy system to fight climate change. 

Lombard Odier Investment Managers has launched its Future Electrification Strategy, to capture opportunities linked to the new electrification revenue pools, as the global energy system transitions to an electrified, clean and efficient model.

Paul Udall, lead portfolio manager, said: “Electrification is now more than an emerging trend in the climate change race. The growing prominence of the electric vehicle, solar power and heat pumps, illustrate how it has taken hold across global industries.” 

“With electrification expected to be the most immediate and impactful solution to climate and energy security crises, our dedicated Future Electrification Strategy will harness rising policy and industry-level support for the energy system’s transition to an electrified model, while capitalising on the profit pools emerging as a result,” he continued.

According to the firm, a great number of assets and products in the energy system are reaching or have already reached a tipping point, as innovation and policy have led cost-efficient and functional solutions such as electric vehicles, heat pumps or renewable energy. While there have been other technology-led transitions in history, markets still seem not to price the upcoming “green alpha” opportunity. 

LOIM’s Future Electrification strategy seeks to harness the momentum behind widespread efforts of economy-wide electrification, capitalising on growing levels of policy support and increasing cost advantages of targeting strong returns for clients and meaningful progress in the net zero transition.

The Future Electrification strategy follows a high conviction stock selection process, to create a global equity portfolio of 40 to 50 holdings with a bias towards high quality companies with sustainable financial models, business practices and business models, the firm continued.  

Future Electrification is the latest addition to Lombard Odier’s CLIC® franchise, supporting progress towards net zero while fostering regenerative and nature-positive economic foundations, focused on a circular, lean, inclusive and clean economy.

The strategy is managed by Udall who brings over two decades of experience managing high-conviction sustainability strategies. He is supported by Peter Burke-Smith, junior portfolio manager, together with LOIM’s sustainability research and investment teams who provide science-based forecasting and analysis.

Didier Rabattu, global head of equities at Lombard Odier, said: “We believe that electrification is set to be one of the biggest system changes in the history of capitalism, with exciting, forward-looking investment opportunities to be found.” 

“At Lombard Odier, sustainability is a core investment conviction and this strategy seeks to capture market opportunities, accelerating the current shift towards electrified global energy systems, while targeting robust sustainability-linked returns for our clients,” he added.