Goldman Sachs Asset Management (GSAM) has announced the launch of an emerging markets debt blend fund which will invest both in US dollar and local currency-denominated bonds.
The Goldman Sachs Growth and Emerging Markets Debt Blend Portfolio which focus on bonds issued by growth and emerging market governments and corporates.
It will aim to provide investors with access to multiple EMD asset classes, including local currency government bonds, US dollar-denominated government bonds, and U.S. dollar-denominated corporate debt.
The fund will be managed by GSAM's emerging markets fixed income team and will complement the group's existing EMD fund range which includes: GS Growth and Emerging Markets Debt Local Portfolio; GS Growth and Emerging Markets Debt Portfolio; and GS Growth and Emerging Markets Corporate Bond Portfolio.
Commenting on the launch Sam Finkelstein, global head of macro strategies and CIO of EMD at GSAM, said: 'In our view, some of the most compelling investment opportunities in fixed income today are in emerging markets as debt sustainability is currently less of a concern, yields are more elevated and economies looking healthier compared to developed markets.'
'In addition, as investor familiarity with EMD increases, we are already seeing investors add local sovereign and corporate debt to their external sovereign mandates. This approach reflects the changing opportunity set within EMD as the asset class continues to evolve.'