The portfolio, managed by the emerging markets fixed income team, enables clients to gain exposure to multiple EMD asset classes in a single solution, including local currency government bonds, US dollar-denominated government bonds, and US dollar-denominated corporate debt.
GSAM already offers a range of EMD products, including the GS Growth and EM Corporate Bond Portfolio, the GS Growth and EMD Local Portfolio and the GS Growth and EMD Portfolio.
The performance of the latter two vehicles is shown in the graph below.
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The largest proportion of assets held by the GS Growth and EMD Local Portfolio is invested in Europe (33%), followed by the Americas (27.2%). The two regions switch places in the Growth and EMD Portfolio with the Americas accounting for 36.4% of assets and Europe 30.8%.
Sam Finkelstein, global head of macro strategies and CIO of EMD at GSAM, said: “In our view, some of the most compelling investment opportunities in fixed income today are in emerging markets as debt suitability is currently less of a concern, yields are more elevated and economies look healthier compared to developed markets.
“In addition, as investor familiarity with EMD increases we are already seeing investors add local sovereign and corporate debt to their external sovereign mandates. This approach reflects the changing opportunity set within EMD as the asset class continues to evolve.”
Last month we reported the departure of 19 ING EMD staff to US rival Neuberger Berman.
