Omega argues case for global bond fund product


Specialist investment manager Omega Global Investors has produced new research supporting its global bond fund product.
According to Omega, the research shows that the outcomes of sovereign investing need not be as uncertain as some investors fear, with its proprietary risk-controlled methodology acting as a reliable indicator of the likely performance of sovereign bonds issued by a range of nations.
The company claimed the research was particularly significant because it provided guidance for investors in the face of the dramatic shift in the status of sovereign investing since the global financial crisis and the European debt crisis.
Explaining the research, Omega joint head of investment Matthew McCrum said that it was not that long ago that sovereign debt from major developed nations was considered about as low-risk as you could get.
“But post the global financial crisis, experience shows us that some of those assumptions no longer apply,” he said.
McCrum said the challenge for investors was making decisions in line with information that was accurate and relevant in the new environment.
He claimed the Omega system assessed both the financial strength and political risks associated with the country it was rating, with the financial strength measures focusing on a government’s ability to repay debt, based on the net debt to GDP ratio.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.