The Goldman Sachs Income Builder Portfolio is domiciled in Luxembourg and is a sub-fund of Goldman Sachs Fund SICAV. The fund aims to access income opportunities through a broad set of asset classes, said Nick Phillips, GSAM’s EMEA head of third party distribution.
“While the fund is focused on high-quality stocks and higher-yielding bonds in industries that may be less susceptible to market cycles, its flexible mandate allows it to invest in non-traditional asset classes.”
These include convertible bonds, bank loans, preference shares, real estate investment trusts (REITs) and energy infrastructure stocks.
Fixed income holdings make up 60% of the portfolio, with the remaining 40% in equity securities. The managers do, though, have the flexibility to tilt the allocation above or below this baseline. The fund is available in a number of currency share classes, with a minimum investment of $5,000.
Andrew Wilson, chief executive officer for Europe, Middle East and Africa and co-head of global fixed income at GSAM, said in an interview with Bloomberg TV this week that he sees opportunities in the corporate debt market, in particular high yield.
“There are low default rates there. Companies have done an excellent job in terms of terming out their debt so they’re not under pressure even if rates rise. I see reasonable returns over the next 12 to 24 months.”
He is much less positive on US Treasuries and government bonds in European countries such as France.
