Omega wins two global mandates

Omega Global Investors has been awarded global mandates from Medibank and Telstra Super, with the manager signalling a return to favour of global bonds.

Medibank selected Omega to manage a $50 million global mandate due to the management team’s flexibility in providing a solution tailored to the health services group’s exact needs, according to Medibank treasurer Graeme Sala.

“We were looking for an investment team experienced in managing global bonds. The pedigree of the Omega team, together with their philosophy of managing risk first and foremost, was very attractive,” he said.

Omega has also signed a deal with Telstra Super to invest in Omega’s Global Corporate Bond Fund, bringing the fund’s assets to over $80 million with a yield of 8.7 per cent as at 30 June, 2010.

Telstra Super selected Omega due to the manager’s commitment to first controlling risk then maximising available upside, according to Omega’s managing director, George Vassos.

Many institutions are looking to diversify away from the Australian market, which is highly concentrated and represents a risk in the current market, Vassos said.

“Diversifying to other global opportunities provides access to growth while also reducing downside risk,” he said.

“Asia is looking particularly good at the moment, as many corporations in the region have much healthier balance sheets than their counterparts elsewhere in the world. Our confidence in Asia is reflected in our allocation of over 30 per cent of the fund,” he said.