Goldman Sachs Asset Management (“GSAM”) has announced the launch of the Goldman Sachs Emerging Markets Equity ESG Portfolio (the “Portfolio”). The Portfolio seeks to provide investors exposure to emerging market companies which GSAM believes demonstrate strong environmental, social and governance (ESG) credentials.
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.