Goldman Sachs Asset Management (GSAM) has launched an Emerging Markets Equity ESG portfolio, following client demand for ESG solutions.
The long-only fund is a new sub-fund of the UCITS-qualifying Luxembourg-domiciled Goldman Sachs Funds SICAV and will give investors exposure to emerging market companies with strong ESG credentials.
It will be managed by GSAM's 30-strong emerging markets equity team, which currently manages the $3.5bn GS Emerging Markets Equity portfolio.
Following the acquisition of Imprint Capital in 2015, GSAM manages more than $15bn in ESG and impact assets, managed by 30 investment professionals.
Nick Phillips, head of GSAM's international retail business, said the firm was seeing an uptick in client demand for ESG vehicles.
"Our clients are increasingly seeking investment solutions that place a real emphasis on ESG considerations. This launch represents GSAM's second ESG-focused offshore mutual fund and we believe our EM team is perfectly placed to deliver this solution for our clients."
GSAM also runs a $7.7m Global Equity Partners ESG portfolio, which launched in 2008.
Luke Barrs, head of GSAM fundamental equity client portfolio management in EMEA, said strong ESG credentials were a good indicator of a well-managed company.
"By leveraging proprietary research and insight on companies' ESG practices, and by engaging directly with management on areas of material risk, the team is able to build a deeper knowledge of businesses they invest in.
"These ESG considerations go hand-in-hand with our proven investment philosophy and alpha-generating capabilities. Strong performance on ESG can often indicate that a company is well managed and takes a holistic approach to risk - qualities that indicate strong fundamental performance, not just the ability to tick boxes on ESG scorecards."
Earlier this year, Mobius Capital Partners announced it would be launching an open-ended emerging markets fund focused on ESG while BlackRock has launched four ESG-focused emerging market debt funds.
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