Credit Suisse AM transfers luxury goods equity fund to LOIM

Credit Suisse AM transfers luxury goods equity fund to LOIM

Lombard Odier Investment Managers (LOIM) has reached an agreement with Credit Suisse Asset Management for the transfer to Lombard Odier IM of a global equity strategy investing in companies offering luxury or prestige products and services with premium brands.

According to the terms of the deal, Lombard Odier IM will launch LO Funds – Global Prestige on 26 June 2018 and the €236m AUM Credit Suisse (Lux) Global Prestige Equity Fund will be transferred into this fund.

Global Prestige will consist of a concentrated portfolio of 30 to 40 stocks of companies able to generate sustainable excess economic returns with strong market positions, high pricing power and promising growth prospects. The fund will seek to exploit structural long-term growth trends such as emerging consumers, millennials spending and other consumer-related trends.

Juan Mendoza will join Lombard Odier IM as senior portfolio manager to run the fund, effective 26 June. He will run the fund with similar investment objective, policy, and approach to that applied since 2009 at Credit Suisse Asset Management.

Mendoza will be supported by Ingrid Nouhaud, analyst in Lombard Odier IM’s high conviction equity team.

Didier Rabattu, head of Equities at Lombard Odier IM, said: “We are delighted to add the Global Prestige strategy to our high conviction equity offering. The strategy is well aligned with our Discounted Excess Economic Return (DEER) investment philosophy. Global Prestige is a strong complement to our well-established expertise in thematic investing, which includes capabilities in the brand, luxury and consumer-related sectors. Juan is a top-ranked portfolio manager with a strong track record in running the investment strategy behind Global Prestige during his tenure at Credit Suisse Asset Management.”

Michel Degen, head of Credit Suisse Asset Management Switzerland and EMEA, commented: “Our industry is continuously evolving. Partnering with other firms is crucial if we are to meet the needs of clients and thrive as an industry. We are pleased to join forces with Lombard Odier IM to achieve this fund merger.”

LOIM had assets under management of CHF49bn (€41.2bn) as at 31 December 2017.