Goldman Sachs Asset Management Launches Global Green Bond ETF
15 February, 2024 – Goldman Sachs Asset Management today announced the launch of the Goldman Sachs Global Green Bond UCITS ETF (“the Fund”), an ETF tracking an index developed with Solactive. The Fund is amongst the first passive green bond funds in the industry to track a bespoke index and will make disclosures under Article 9 of SFDR.
The Fund builds on the firm’s active green bond offering and provides exposure to the Solactive Global Green Bond Select Index. The index has been developed in partnership with Goldman Sachs Asset Management’s dedicated Green, Social and Impact Bonds team, who have helped Goldman Sachs Asset Management grow to be the largest active Green Bond open-ended fund manager in the UCITS space, by both assets under supervision and 2023 net flows1.
As part of the index methodology, the Green, Social and Impact Bonds team applies their enhanced sustainable investment screening at both the issuer and bond level. As a result of this, the index seeks to include companies with a lower climate risk than comparable passive benchmarks.
The Fund aims to track global G10 green bond issuance and enables investors to replace a portion of their existing global fixed income portfolios with bonds that meet certain sustainable investment screens, including controversy exclusion, project and sector exclusions and an analysis of issuers’ climate transition policies.
The Fund forms part of Goldman Sach Asset Management's global fixed income and liquidity solutions offering, which represents over $822 billion in assets under supervision as of December 29, 2023. The firm recently surpassed $10 billion in dedicated Green, Social and Impact bonds assets under supervision, from which $5.5bn is in open-ended funds.
The Fund is available under the ticker GSGR on the London Stock Exchange in EUR & GBP, the SIX Swiss Exchange in EUR, Xetra in EUR, and the Borsa Italiana in EUR.
Bram Bos, Global Head of Green, Social & Impact Bonds at Goldman Sachs Asset Management, commented:
"The latest addition to our growing green bonds fund range demonstrates our continued commitment to offer investors a plethora of ways to access the green bonds markets. Today's green bond investors include a growing number of traditional fixed income clients, not just those focused primarily on impact and environmental, social and governance criteria.”
“Green bonds are an important source of investment to drive the climate transition, reflected in record issuance last year. The widening range of issuers include companies and governments around the world, seeking investment to drive their plans to reduce greenhouse gas emissions and guard against physical climate risks.”
Hilary Lopez, Head of EMEA Third Party Wealth at Goldman Sachs Asset Management, commented:
“The global green bond market is an increasing source of opportunity for investors as they look to complement their fixed income exposure with dedicated green, social and impact bonds. We are delighted to be launching this innovative product which brings the expertise of our green bonds team to an ETF format for the first time."
“We plan to continue expanding our product range to support our clients’ investment and sustainability objectives.”
About Goldman Sachs Asset Management
Goldman Sachs Asset Management is the primary investing area within Goldman Sachs (NYSE: GS), delivering investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
Goldman Sachs Asset Management is a leading investor across fixed income, liquidity, equity, alternatives and multi-asset solutions. Goldman Sachs oversees more than $2.8 trillion in assets under supervision as of December 31, 2023. Follow us on LinkedIn.
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About Solactive
Solactive is a leading provider of indexing, benchmarking, and calculation solutions for the global investment and trading community. Headquartered in Frankfurt and, with offices in Hong Kong, Toronto, Berlin, Dresden, and Amsterdam, we innovate and disrupt the status quo as the partner of choice for our clients.
The unique blend of our 300 staff’s expertise in data, data science, financial markets, and technology enables our clients’ continued success through the delivery of a superior experience, unique customization capabilities, and the best value for money available in the industry. With more than 26,000 indices calculated daily, we offer a full suite of solutions, including market-leading ESG and thematic indices.
As at January 2024, Solactive served approximately 500 clients across the world, with approximately US$300 billion invested in products linked to our indices. Solactive is registered with ESMA as a benchmark administrator and is supervised by the BaFin.
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The information in this document does not constitute tax, legal or investment advice and is not intended as a recommendation for buying or selling securities. Solactive AG and all other companies mentioned in this document are not responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.
1 Source: Morningstar Direct, 31st December 2023: European-domiciled local and Cross-Border UCITS Bond funds branded Green, Social, Impact, Climate, Inclusion or Transition. Sustainable and ESG-only branded funds excluded. Includes ETFs and mutual funds which make Article 8 or 9 disclosures under SFDR. This is a marketing communication. Please refer to the Prospectus of the Fund/s and the Key Information Document (KID) or UK Key Investor Information Document (KIID) (as applicable) before making any final investment decisions. For the purposes of the European Union Sustainable Finance Disclosure Regulation (“SFDR”), the Fund makes Article 9 disclosures and has a sustainable investment objective under SFDR. Further information in relation to the sustainability-related aspects of the Fund can be found at https://www.gsam.com/content/gsam/uk/en/advisers/literature-and-forms/literature.html. Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not have full discretion. Your capital is at risk and you may lose some or all of the capital you invest.