As the global energy system transitions to an electrified, decentralized, clean and efficient model, Lombard Odier Investment Managers (LOIM) has launched its actively managed Future Electrification strategy designed to capture opportunities associated with new and shifting electrification revenue pools.
The strategy seeks to harness the momentum behind widespread efforts of economy-wide electrification, capitalizing on growing levels of policy support and increasing cost advantages to target strong returns for clients and meaningful progress in the net-zero transition.
Managed by lead portfolio manager Paul Udall, the 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 and business practices that support:
- demand, including the clean electrification and enhanced efficiency of buildings, transport and industry and production processes alongside changing consumption patterns
- supply, recognizing that global energy supply needs to be completely decarbonized by switching from fossil fuels to renewable sources
- enablers, including hardware, software and raw materials needed to further enable and accelerate the pace of the net-zero transition.
“Electrification is now more than an emerging trend in the climate change race,” Udall says. “The growing prominence of electric vehicles (EVs), solar power and heat pumps, illustrate how electrification has taken hold across global industries and is expected to be the most immediate and impactful solution to climate and energy security crises.”