Understanding the risks within our investments is the core of our philosophy. We want investors to take comfort that their investments will perform in a manner in line with their expectations.
Our strategies are designed to ensure transparency of the risks underlying our investments, providing a controlled way to access financial market returns.
When constructing any of our portfolios Omega assesses and controls exposure to the following risk categories:
- Specific Company or Government Risk. Omega conducts a thorough examination of the financial health of a company or Government. Our analysis also takes into account political and regulatory risk factors.
- Fundamental Analysis. Omega selects and assesses specific fundamental measures for each security to determine the financial health of each investment.
- Country and Currency. We manage the levels of country exposure and the level of currency hedging tightly as together they are a large determinant of total risk for global portfolios.
- Interest Rate Risk. Overall interest rate risk is controlled through targeting low volatility. Optimal duration of our portfolios is governed by the shape of the yield curve.
- Liquidity Risk. Part of Omegas investment process is to measure liquidity, we choose to invest in securities that the market is prepared to trade. Liquid securities are cost effective to implement and are readily bought and sold
- Concentration Risk. We construct diversified portfolios to minimise the overall portfolio risk of a security experiencing a credit downgrade or default.
