Goldman Sachs Asset Management announced the launch of the Goldman Sachs Emerging Markets Ex-China Equity Portfolio.
For those investors that have accepted that the size, breadth and complexity of China’s equity market merits a standalone exposure, the launch of the Portfolio seeks to offer a complementary solution that can allow them to continue to build holistic emerging markets exposure, accessing the compelling investment opportunities that exist beyond China across the emerging market landscape.
There are over 1,000 companies in emerging markets ex-China with a market capitalization of more than $2bn each. The MSCI EM ex-China Index, which the Portfolio will be managed against, has a distinct sector composition compared with China’s equity markets, with diverse opportunities across technology, semiconductors and financial services.
The Portfolio will be managed by Goldman Sachs Asset Management’s 80-person Fundamental Equity team, using a rigorous, bottom-up investment approach.
Luke Barrs, Managing Director in the Fundamental Equity team at Goldman Sachs Asset Management, said: “The continued growth and complexity of the Chinese equity market means more and more investors are seeking to build dedicated allocations. To complement this, we believe an emerging markets ex-China exposure can allow investors to access the compelling investment opportunities in EM beyond China, better reflect the diversity of this opportunity set in their portfolios and continue to construct sound overall emerging markets equity exposures. Our global investment teams continue to identify attractive companies across the emerging markets complex and we believe that through solid fundamental analysis, active stewardship and a disciplined investment process, we can generate strong returns for clients.”
The Portfolio is a new sub-fund of the UCITS-qualifying Luxembourg-domiciled Goldman Sachs Funds SICAV. The Portfolio is offered to both institutional and retail clients and is registered for sale across a range of European countries.