LO Transition Materials
Alternative · Global · Commodities
Figures refer to the share class ISIN LU0640921382, currency USD, retail share class.
Key facts
- Management company
- Lombard Odier Funds (Europe) SA
- Asset class
- Alternative
- Geography
- Global
- Strategy
- Commodities
- Share class currency
- USD
- Share class inception
- 06.07.2011
- Fund size
- 218 million (as at 14.09.2026)
- Management fee
- 0.75%
- Performance fee
- No
- Liquidity
- Not available in this publication
- UCITS
- Yes
- Risk grade (SRRI)
- Not available in this publication
- Registered in Switzerland
- Yes
Price history
Fund and benchmark rebased to 100 at 30.09.2021.
Table view
| Period | From | Fund (100 at start) | Benchmark (100 at start) |
|---|---|---|---|
| 1Y | 03.10.2025 | 122.5 | 140.2 |
| 3Y | 29.09.2023 | 162.0 | 155.3 |
| 5Y | 30.09.2021 | 178.3 | 171.3 |
| Since 2012 | 31.07.2017 | 224.9 | 201.3 |
Total return: distributions reinvested.
In USD, the currency of the share class shown.
Fund history to 28.09.2026.
Benchmark history to 28.09.2026.
Past performance is not a reliable indicator of future results, and the value of investments can fall as well as rise.
Performance against the benchmark
| 1M | 3M | 6M | YTD | 2025 | 2024 | 2023 | 1Y | 3Y | 5Y | Volatility | Sharpe R. | Max DD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FundISIN LU0640921382, currency USD, retail share class | 3.38 | -3.18 | -0.44 | 10.36 | 39.83 | 2.48 | -1.15 | 34.44 | 17.24 | 13.10 | 13.35 | 0.92 | -8.73 |
| BenchmarkBloomberg Commodity TR USD | 7.39 | 5.63 | 18.36 | 32.06 | 15.77 | 5.38 | -7.91 | 42.79 | 15.13 | 12.22 | 13.98 | 0.75 | -11.79 |
| Differencefund minus benchmark, in percentage points | -4.01 | -8.80 | -18.79 | -21.70 | 24.06 | -2.90 | 6.76 | -8.35 | 2.11 | 0.88 | – | – | – |
Within the list: OpenList — Real Assets
Compared with the alternative funds on OpenList — Real Assets (6 funds), each in the share class and currency its list shows. Returns are in each share class's own currency and are not converted.
| This fund | Group median | Position | |
|---|---|---|---|
| Return 1Y | 34.44 | 40.41 | 5 of 6 |
| Return 3Y p.a. | 17.24 | 16.42 | 3 of 6 |
| 3Y p.a. over its own benchmark | 2.11 | 1.29 | 3 of 6 |
| Volatility 3Y | 13.35 | 14.49 | 3 of 6 |
| Sharpe ratio 3Y | 0.92 | 0.95 | 4 of 6 |
| Max drawdown 3Y | -8.73 | -9.27 | 3 of 6 |
| Management fee | 0.75% | 0.78% | 2 of 6 |
Position 1 is the highest value, except for volatility and the management fee, where 1 is the lowest; for max drawdown, 1 is the smallest fall.
Return against risk, 3 years
WSP report
Ask WSP which research is available for this fund and what it covers.
Enquire about WSP researchBack to the list: OpenList — Real Assets
Performance: in %, in the currency of the share class shown. 3Y and 5Y are annualised. Volatility and Sharpe ratio are over three years; Max DD is the largest fall over three years.
– means not applicable. "Not available in this publication" means no value is shown here; it does not mean zero.
Period figures as of 31.08.2026.
This page is advertising within the meaning of the Swiss Financial Services Act. It is not an offer, a recommendation or investment advice. The prospectus and key information document for any fund shown may be obtained free of charge from its management company or Swiss representative
WSP commentary
Draft commentary, machine-generated from the fund's monthly factsheet dated 31.08.2026; key information document (PRIIPs), not yet reviewed by WSP.
Investment rationale
LO Funds - Transition Materials is a long-only commodity fund designed to give investors exposure to supply/demand opportunities linked to the transition to a low-carbon economy. The product is classified as UCITS and SFDR Article 8, has daily dealing, a summary risk indicator of 5 out of 7, and a recommended holding period of 5 years. It is intended for eligible investors with sufficient experience or professional advice, a long-term investment horizon, and the capacity to bear losses up to the full amount invested. Based on its narrow thematic commodity exposure and rule-based design, it is better described as a distinct satellite allocation rather than a broad core portfolio holding.
Investment strategy
The Sub-Fund’s objective is to replicate the performance of a proprietary UCITS-compliant index made up of securities linked to commodity supply/demand chains expected to benefit from the low-carbon transition. It is actively managed, while the Bloomberg Commodity Total Return index is used for performance comparison and internal risk indicators, and the Bloomberg Industrial Metals Subindex Total Return may also be used for performance comparison and internal risk monitoring. The strategy focuses on commodity-heavy themes such as electrification, green mobility, materials substitution and recycled materials, and it does not invest in commodities adversely exposed to the transition such as fossil energy. The investment universe mostly includes technology-related metals and bio-based materials, some of which are outside traditional benchmarks; the share class is in USD, income is accumulated, redemptions are available daily, and the recommended holding period is 5 years. The expected leverage under the sum of notionals approach is around 175% of NAV.
Investment philosophy
• The strategy is rule-based and long-only, with the objective of replicating a proprietary UCITS-compliant index focused on commodity supply/demand chains expected to benefit from the transition to a low-carbon economy.
• The investment universe mostly includes technology-related metals and bio-based materials, including some commodities not part of traditional benchmarks; stated themes include electrification, green mobility, materials substitution and recycled materials, while fossil energy is excluded.
• Current portfolio weights are concentrated in industrial and transition-related metals, with the largest exposures in zinc (19.66%), copper (17.91%), aluminium (17.35%) and nickel (9.48%), followed by ethanol (5.25%), silver (5.15%), tin (4.83%) and lumber (4.67%).
• The portfolio also holds gold (4.52%), platinum (3.31%), lithium (2.06%), steel scrap (2.01%), HRC steel (1.99%) and cobalt (1.82%), showing exposure to both benchmark and ex-benchmark transition materials.
• Risk management is performed at portfolio level, with an independent team overseeing investment and operational risks; the expected leverage under the sum of notional derivatives approach is around 175% of NAV.
Management team
The named fund managers are M. Pellaud (Ph.D.) and L. Joué. Apart from the Ph.D. qualification for M. The documents do state that an independent team oversees investment and operational risks.
The asset manager
The fund is LO Funds - Transition Materials, a sub-fund of Lombard Odier Funds, a Luxembourg SICAV structured as a UCITS. The management company is Lombard Odier Funds (Europe) S.A., authorised in Luxembourg and regulated by the CSSF, with its registered office at 291, Route d’Arlon, L-1150 Luxembourg. The management company is part of the Lombard Odier Group and is clustered within the Lombard Odier Investment Management Division (LOIM). The documents describe LOIM as the trade name used by the Lombard Odier Investment Management Division and note that LOIM entities support the preparation of the document.
Performance analysis
Source: manager factsheet dated 31 August 2026. Over the reported contribution period, the largest positive contributors were zinc, copper, silver, gold, aluminium, ethanol and platinum, while lumber, nickel, cobalt and tin detracted. Relative to the Bloomberg Commodity Index, industrial metals added the most, followed by live commodities, while energy and soft commodities detracted the most; precious metals, bio-based materials and ex-benchmark metals were also negative relative contributors. Current positioning is tilted toward industrial metals through large weights in zinc, copper, aluminium and nickel, with additional exposure to bio-based materials and selected precious and ex-benchmark metals.
Strengths
The fund is differentiated by its dedicated focus on commodities tied to the low-carbon transition rather than broad commodity exposure. It combines a rule-based long-only approach with access to technology-related metals and bio-based materials, including exposures outside traditional commodity benchmarks such as tin, lithium, cobalt, HRC steel and steel scrap. The strategy explicitly excludes fossil energy and is offered in a UCITS format with daily liquidity. Costs stated for the share class include no entry or exit fees, a 0.75% management fee, and an ongoing charge of 1.01% as of 31 July 2026.
Risks
The product has a summary risk indicator of 5 out of 7, described as medium-high risk, and it offers no capital protection, so investors could lose some or all of their investment. The documents specifically name counterparty risk, concentration risk and model risk as materially relevant additional risks, and note that sustainability risks may significantly affect the market price or liquidity of underlying investments. Concentration risk is relevant because the fund is focused on a specific commodity theme linked to the low-carbon transition and has large weights in a relatively small set of materials such as zinc, copper and aluminium. The fund also uses financial derivative instruments, with expected leverage around 175% of NAV under the sum of notionals approach, and exchange-rate movements may affect returns where an investor’s base currency differs from the fund currency.