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Omega and LGS invest in global bond fund
Senior Omega investment executives, Mathew McCrum and Andrew Gruskin will lead the investment team for a new fund seeded by Local Government Super with $170 million.
The Sustainable Global Bond Fund was co-developed by Omega Global Investments and LGS over nine months and is an Australian first among a handful of global competitors, according to McCrum.
He said the fund targets countries with sound governance and environmental standards and integrates with Omega's risk-controlled approach to fixed income investing.
"Our aim is to choose global government bonds derived from financially robust and politically stable nations, but which also pass meaningful ESG filters," he said.
LGS chief investment officer Craig Turnbull said the partnership would lead to innovative approaches that allow LGS to continue to invest responsibly.
He said investment and operational risk minimisation had become an important part of effective asset allocation.
"We are looking to develop innovative strategies that manage or mitigate our ESG exposure, and to capitalise on investment opportunities across all asset classes to achieve solid returns for our members," he said.
Turnbull said the fund was an example of the superannuation fund's principles in action. LGS have $3.3 billion invested in responsible investment strategies across a number of asset classes.
The $6 billion superannuation fund is a signatory to the United Nations Principles of Responsible Investment and a host of environmental industry groups.
McCrum said the fund builds upon Omega's existing health rating filters. Based on Omega's track record, he was optimistic they would produce a high quality, diversified bond portfolio that delivered an above benchmark sustainability dividend.
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