The long-only Portfolio will be managed by GSAM’s Emerging Market (EM) Equity team. The 30 person team has an average of 15 years of investment experience and currently manages $3.5bn GS Emerging Markets Equity Portfolio, which ranks in the top decile of its peer group over the last five years. The portfolio will incorporate ESG criteria as part of a fundamental, bottom-up financial analysis.
Luke Barrs, Head of GSAM Fundamental Equity Client Portfolio Management in EMEA, said: “By leveraging proprietary research and insight on companies’ ESG practices, and by engaging directly with management on areas of material risk, the team is able to build a deeper knowledge of businesses they invest in. These ESG considerations go hand-in-hand with our proven investment philosophy and alpha-generating capabilities. Strong performance on ESG can often indicate that a company is well managed and takes a holistic approach to risk – qualities that indicate strong fundamental performance, not just the ability to tick boxes on ESG scorecards.”
Nick Phillips, Head of GSAM’s International Retail Business, said: “Our clients are increasingly seeking investment solutions which place a real emphasis on ESG considerations. This launch represents GSAM’s second ESG-focused offshore mutual fund and we are believe our EM team is perfectly placed to deliver this solution for our clients.”
The Portfolio is a new sub-fund of the UCITS-qualifying Luxembourg-domiciled Goldman Sachs Funds SICAV. The Portfolio is offered to both institutional and retail clients and is registered for sale across a range of European countries.
