Goldman Sachs unveils growth and emerging market debt fund

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Goldman Sachs Asset Management has launched a fund offering exposure to a blend of growth and emerging markets bonds.

The Goldman Sachs Growth and Emerging Markets Debt Blend Portfolio will be managed by the Goldman Sachs emerging markets and fixed income team and will invest in a blend of bonds issued by growth and emerging market governments and corporates.

The fund is a long-only portfolio investing in fixed income securities denominated in US dollar and the local currencies of growth and emerging markets.

GSAM global head of macro strategies and chief investment officer of emerging market debt Sam Finkelstein believes some of the most compelling opportunities in fixed income are in emerging markets as debt sustainability is less of a concern.

Finkelstein says: “As investor familiarity with EMD increases, we are already seeing investors add local sovereign mandates. This approach reflects the changing opportunity set within EMD as the asset class continues to evolve.”

Meanwhile, GSAM has soft-closed its N-11 Equity Portfolio – which invests Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam – after its assets under management rose to $1.7bn in the 2.5 years after launch.

The asset manager closed the fund to new investors in order to maintain liquidity in the interests of existing investors.