Goldman Sachs Asset Management has announced the launch of the Goldman Sachs Global Impact Corporate Bond Fund and the Goldman Sachs USD Green Bond Fund, which aim to enable fixed income investors to enhance the sustainability profile of their portfolios through an allocation to green, social and sustainability bonds.
The funds are both managed by a dedicated Green, Social and Impact bonds team within Goldman Sachs Asset Management, who joined the firm following the acquisition of NN Investment Partners in 2022. The team is part of Goldman Sachs Asset Management’s global fixed income team, which manages over $1 trillion on behalf of investors. Recently, the firm passed $9bn in dedicated green bond assets under management.
The Goldman Sachs Global Impact Corporate Bond Fund and Goldman Sachs USD Green Bond Funds draw on Goldman Sachs Asset Management’s proprietary green and impact bonds assessment methodology, to select bonds that finance impactful environmental, social or sustainability projects.
The Goldman Sachs Global Impact Corporate Bond Fund seeks to invest in green, social and sustainable bonds across the corporate credit spectrum that have clearly defined social or environmental objectives and impact. The bonds included in the portfolio target a broad range of UN Sustainable Development Goals (SDGs). It will invest globally in investment grade and high yield bonds.
The Goldman Sachs USD Green Bond Fund invests globally in both corporate and government bonds and investment grade credit. It builds on Goldman Sachs Asset Management’s existing green bonds range by offering a global alternative for clients seeking USD-denominated exposure.
Both funds’ impact will be monitored closely and published in an annual report. The funds will make disclosures under Article 9 of the Sustainable Finance Disclosure Regulation.
Bram Bos, Global Head of Green, Social & Impact Bonds at Goldman Sachs Asset Management, comments:
“Both corporate issuance and investor appetite for social and sustainability bonds continue to grow, making it an increasingly important segment for fixed income, alongside the burgeoning green bonds market.
“The global bond market is a key source of investment to drive the climate transition and address topics such as inclusive growth. We are pleased to continue to provide new ways for our clients to access these opportunities.”
Hilary Lopez, Head of EMEA Third Party Wealth at Goldman Sachs Asset Management, said:
“An increasingly wide range of investors would like to direct their capital towards companies solving clear social and environmental challenges. These two funds enable investors to tap into growing areas of opportunity and diversify their fixed income portfolios, while helping to finance impactful environmental, social and sustainability projects.”
“We look forward to continuing to widen the range of products available to clients to support their investment and sustainability objectives.”
The funds are registered for sale in Austria, Belgium, Denmark, Germany, Spain, Finland, France, Italy, Netherlands, Norway, Sweden, Switzerland and the UK.