Lombard Odier Investment Managers today launched a global fintech equity fund as the latest addition to its $2bn series of global thematic strategies.
The Global Fintech fund, which will be co-managed by Jeroen van Oerle and Christian Vondenbusch, will consist of a portfolio of 50 stocks that have been chosen on a bottom-up basis with a focus on firms with sustainable business models, strong financial track records and valuations.
Lombard Odier's said its global fintech strategy offers investors comprehensive access to firms across the fintech spectrum; from established companies with a global reputation, to those enabling financial and technological transformation in the industry, as well as future disruptors.
The rate of growth that fintech companies have experienced in recent years has been an area of great focus for investors."
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.
Didier Rabattu, head of global equities, said: "Lombard Odier continues to demonstrate its commitment to focus on those sectors that provide sustainable growth opportunities for investors. We are pleased to introduce the Global Fintech strategy, led by a team with unrivalled expertise and strong track record.
"The rate of growth that fintech companies have experienced in recent years has been an area of great focus for investors. Their appetite to tap into the speed of fintech expansion, its rate of adoption by financial services firms globally and its impact on global markets has only increased with time, and as fintech strategies continue to filter into developing markets, the opportunities will be significant."
Henk Grootveld, portfolio manager, global trends at Lombard Odier, said: "For the last few years fintech has enjoyed a particularly strong rally as a result of the revolutionary role it has played in bringing traditionally physical finance activities, such as payments, transfers, security and financial management, online. In our view, covid-19 has actually accelerated the digitalisation of financials services. The combination of an increased penetration of e-commerce, countries wanting to reduce the black economy and the hygiene factor are now driving us towards a cashless society even faster than before.
Grootveld added: "The global transition to a cashless society, greater financial inclusion through digital finance, the emergence of new financial services through lowered barriers to entry, the rise of technology ecosystems and cybersecurity are key features of financial services businesses we will aim to capture through this strategy."