GSAM opens Strategic Income Bond to UK retail market

Goldman Sachs Asset Management has made its unconstrained Goldman Sachs Strategic Income Bond portfolio available to UK investors.

Manager Jason Singer takes an unconstrained global approach to investing across credit, debt, FX and duration, drawing on the best ideas of 200 members of GSAM’s global fixed income team.

He will be able to invest across the fixed income spectrum, including investment grade, high yield, developing market paper denominated in local currencies, US dollar or euro, covered bonds and asset-backed instruments.

In normal economic and liquidity conditions, he anticipates allocating about two-thirds to credit and one-third to macro.

GSAM's fund is targeting volatility of 5%-10%, and it will run a duration of between four years and negative two years - achieving the latter, when appropriate, by selling futures or engaging in interest rate swaps.

Singer, also a managing director in GSAM’s fixed income team, said: “Investors are not paying us to replicate a benchmark. This fund is a way for us to have our best convictions free of a benchmark, and employ both macro and bottom-up selection to navigate through different liquidity conditions.

“The strategy we are now making available in the UK allows the portfolio management team to flexibly adjust allocations in response to the multitude of challenges that investors face.”

In the UK, GSAM is distributing the fund through its partners including private banks.

GSAM's global fixed income team already runs $338bn, including in a US-based version of the fund which has raised $2bn since inception in June 2010.