Goldman Sachs Asset Management Expands Sustainable Investment Offerings

Goldman Sachs Asset Management has recently unveiled the Goldman Sachs Global Green Bond UCITS ETF. This groundbreaking ETF, developed in collaboration with Solactive, pioneers as one of the premier passive green bond funds in the financial industry, promising heightened disclosures in accordance with Article 9 of SFDR.

The introduction of this Fund marks a pivotal moment for Goldman Sachs Asset Management as it aims to extend its footprint in the realm of green investments. Leveraging the Solactive Global Green Bond Select Index, the Fund capitalises on the escalating demand for sustainable investment vehicles, emblematic of the global financial sector’s conscientious pivot towards environmental stewardship.

Renowned for its proficiency in an array of financial services including investment management, asset management, and liquidity solutions, Goldman Sachs Asset Management has emerged as a frontrunner in sustainable investing. Evidenced by its notable assets under supervision and remarkable net flows in 2023, the firm has solidified its position as the leading active Green Bond open-ended fund manager in the UCITS space.

The newly launched Goldman Sachs Global Green Bond UCITS ETF is meticulously crafted to grant investors access to the global G10 green bond market, empowering them to seamlessly integrate sustainable investment screens into their fixed income portfolios. This initiative underscores Goldman Sachs Asset Management’s unwavering commitment to delivering innovative solutions tailored to meet investors’ burgeoning emphasis on environmental, social, and governance (ESG) criteria.

Furthermore, the Fund seamlessly integrates into Goldman Sachs Asset Management’s expansive global fixed income and liquidity solutions portfolio, boasting an impressive $822 million in assets under supervision as of December 29, 2023. With the firm’s green, social, and impact bonds assets under supervision surpassing the $10 billion mark, of which $5.5 billion are allocated to open-ended funds, the Goldman Sachs Global Green Bond UCITS ETF represents a significant milestone in the proliferation and accessibility of green investment options.

Bram Bos, the Global Head of Green, Social & Impact Bonds at Goldman Sachs Asset Management, emphasised the pivotal role of green bonds in propelling the climate transition forward. He underscored the diverse array of issuers and the burgeoning interest from traditional fixed income investors. Echoing Bos’s sentiments, Hilary Lopez, the Head of EMEA Third Party Wealth, expressed profound enthusiasm for the ETF’s launch, highlighting the burgeoning opportunities in the green bond market and the firm’s strategic plans to expand its sustainable product range further.

“Green bonds constitute a vital source of investment driving the climate transition, as evidenced by record issuance last year. The broadening range of issuers, encompassing companies and governments globally, underscores the pressing need for investment to underpin efforts aimed at reducing greenhouse gas emissions and mitigating physical climate risks,” remarked Bram Bos. Hilary Lopez echoed his sentiments, adding, “The global green bond market represents a burgeoning opportunity for investors seeking to augment their fixed income exposure with dedicated green, social, and impact bonds. We are thrilled to introduce this innovative product, which encapsulates the expertise of our green bonds team in an ETF format for the very first time.”

With the launch of the Goldman Sachs Global Green Bond UCITS ETF, Goldman Sachs Asset Management reaffirms its commitment to sustainable investing, paving the way for a more environmentally conscious and socially responsible financial landscape.

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