Goldman Sachs Asset Management has expanded its sustainable investment offerings with the launch of the Goldman Sachs Global Green Bond UCITS ETF.
This innovative ETF, tracking a bespoke index developed in partnership with Solactive, stands out as one of the first passive green bond funds in the industry, set to enhance disclosures under Article 9 of SFDR.
The Fund’s introduction is a strategic move by Goldman Sachs Asset Management to build upon its active green bond offering. By providing exposure to the Solactive Global Green Bond Select Index, the Fund taps into a growing market demand for sustainable investment options, reflecting a conscientious shift in global finance towards environmental stewardship.
Goldman Sachs Asset Management specializes in a broad spectrum of financial services, including investment management, asset management, and liquidity solutions. With a strong commitment to sustainable investing, the firm has become the largest active Green Bond open-ended fund manager in the UCITS space, as evidenced by both assets under supervision and remarkable net flows in 2023.
The newly launched product is designed to give investors access to global G10 green bond issuance, enabling them to integrate sustainable investment screens into their fixed income portfolios. This initiative underscores Goldman Sachs Asset Management’s dedication to providing innovative solutions that align with investors’ growing emphasis on environmental, social, and governance (ESG) criteria.
Moreover, the Fund is part of Goldman Sachs Asset Management’s extensive global fixed income and liquidity solutions portfolio, which boasts over $822m in assets under supervision as of December 29, 2023. The firm’s green, social, and impact bonds assets under supervision recently exceeded $10bn, with $5.5bn allocated to open-ended funds. Available on multiple exchanges in Europe, the Fund represents a significant milestone in the availability and accessibility of green investment options.
Bram Bos, Global Head of Green, Social & Impact Bonds at Goldman Sachs Asset Management, emphasized the importance of green bonds in driving the climate transition, highlighting the diverse range of issuers and the increasing interest from traditional fixed income investors. Hilary Lopez, Head of EMEA Third Party Wealth, expressed enthusiasm for the ETF’s launch, pointing out the growing opportunities in the green bond market and the firm’s plans to expand its sustainable product range further.
“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,” Bram Bos stated. Hilary Lopez added, “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.”
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