Goldman Sachs Asset Management (GSAM) has launched an emerging markets fund, which will tap companies with strong environmental, social and governance (ESG) credentials.
The new Goldman Sachs Asset Management Emerging Markets Equity ESG Portfolio is a new sub-fund of the UCITS Luxembourg-domiciled Goldman Sachs Funds SICAV.
The company will use its internal research and assessments of companies’ ESG practices for the long-only fund.
The vehicle will be managed by the emerging markets equity team at Goldman Sachs.
GSAM EMEA fundamental equity client portfolio management head Luke Barrs 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.
“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.”
The launch of the new fund is said to have been triggered by the growing client demand for ESG solutions.
GSAM international retail business head Nick Phillips said: “This launch represents GSAM’s second ESG-focussed offshore mutual fund and we believe our EM team is perfectly placed to deliver this solution for our clients.”