Goldman Sachs Asset Management (GSAM) announced today the launch of two new sustainable bond funds, the Goldman Sachs Global Impact Corporate Bond Fund and the Goldman Sachs USD Green Bond Fund, which the firm said are aimed at enabling investors to enhance their portfolios’ sustainability profiles through an allocation to green, social and sustainability bonds.
The launch of the new funds follows several years of significant growth in the sustainable bond market, as companies and governments have turned to sustainable bonds to help finance their climate, environmental and social commitments and initiatives. Last year, according to Moody’s Investor Services, green, social, sustainability and sustainability-linked claimed a record 13% share of global bond issuance.
Bram Bos, Global Head of Green, Social & Impact Bonds at Goldman Sachs Asset Management, comments:
“The global bond market is a key source of investment to drive the climate transition and address topics such as inclusive growth. We are pleased to continue to provide new ways for our clients to access these opportunities.”
The Impact Corporate Bond Fund will invest globally in corporate high yield and investment grade green, social and sustainable bonds that have clearly defined social or environmental objectives and impact, with a focus on bonds that target a broad range of UN Sustainable Development Goals (SDGs). The USD Green Bond Fund will invest in USD-denominated green corporate and government bonds and investment grade credit.
The funds will be managed by a dedicated Green, Social and Impact bonds team within GSAM, who joined the firm following Goldman Sachs’ acquisition of sustainable investment-focused asset manager NN Investment Partners last year. The funds will utilize GSAM’s proprietary green and impact bonds assessment methodology, to select bonds that finance impactful environmental, social or sustainability projects.
Both funds will make disclosures under Article 9 of the Sustainable Finance Disclosure Regulation (SFDR).
Hilary Lopez, Head of EMEA Third Party Wealth at Goldman Sachs Asset Management, said:
“An increasingly wide range of investors would like to direct their capital towards companies solving clear social and environmental challenges. These two funds enable investors to tap into growing areas of opportunity and diversify their fixed income portfolios, while helping to finance impactful environmental, social and sustainability projects.”