GSAM adds EMD to portfolios following sharp sell-off

Goldman Sachs Asset Management (GSAM)'s fixed income team has been adding to emerging market debt following a sharp sell-off in the asset class, in the view valuations are at attractive levels.

Speaking at Investment Week’s Bond Focus event held in London in July, Sean Reynolds, lead portfolio manager on GSAM’s global fixed income team, said the EMD component of the group’s bond portfolios caused performance to suffer as investors dumped the bonds.  However, this has driven prices down and created new opportunities, he added.  As a result, the team has recently added to positions in emerging market debt. Local rate exposures the team likes are Mexico, which has recently cut rates and could unleash further stimulus measures, Russia, and Brazil. In June, the GSAM team signi...