Goldman Sachs Asset Management Launches Global Green Bond ETF

Goldman Sachs Asset Management today announced the launch of the Goldman Sachs Global Green Bond UCITS ETF, an ETF tracking an index developed with Solactive.

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Bram Bos, Global Head of Green, Social & Impact Bonds at Goldman Sachs Asset Management

The Fund is amongst the first passive green bond funds in the industry to track a bespoke index and will make disclosures under Article 9 of SFDR.

The Fund builds on the firm’s active green bond offering and provides exposure to the Solactive Global Green Bond Select Index. The index has been developed in partnership with Goldman Sachs Asset Management’s dedicated Green, Social and Impact Bonds team, who have helped Goldman Sachs Asset Management grow to be the largest active Green Bond open-ended fund manager in the UCITS space, by both assets under supervision and 2023 net flows .

As part of the index methodology, the Green, Social and Impact Bonds team applies their enhanced sustainable investment screening at both the issuer and bond level. As a result of this, the index seeks to include companies with a lower climate risk than comparable passive benchmarks.

The Fund aims to track global G10 green bond issuance and enables investors to replace a portion of their existing global fixed income portfolios with bonds that meet certain sustainable investment screens, including controversy exclusion, project and sector exclusions and an analysis of issuers’ climate transition policies.

The Fund forms part of Goldman Sach Asset Management’s global fixed income and liquidity solutions offering, which represents over $822 billion in assets under supervision as of December 29, 2023. The firm recently surpassed $10 billion in dedicated Green, Social and Impact bonds assets under supervision, from which $5.5bn is in open-ended funds.

The Fund is available under the ticker GSGR on the London Stock Exchange in EUR & GBP, the SIX Swiss Exchange in EUR, Xetra in EUR, and the Borsa Italiana in EUR.

Bram Bos, Global Head of Green, Social & Impact Bonds at Goldman Sachs Asset Management, commented:

“The latest addition to our growing green bonds fund range demonstrates our continued commitment to offer investors a plethora of ways to access the green bonds markets. Today’s green bond investors include a growing number of traditional fixed income clients, not just those focused primarily on impact and environmental, social and governance criteria.”

“Green bonds are an important source of investment to drive the climate transition, reflected in record issuance last year. The widening range of issuers include companies and governments around the world, seeking investment to drive their plans to reduce greenhouse gas emissions and guard against physical climate risks.”

Hilary Lopez, Head of EMEA Third Party Wealth at Goldman Sachs Asset Management, commented:

“The global green bond market is an increasing source of opportunity for investors as they look to complement their fixed income exposure with dedicated green, social and impact bonds. We are delighted to be launching this innovative product which brings the expertise of our green bonds team to an ETF format for the first time.”

“We plan to continue expanding our product range to support our clients’ investment and sustainability objectives.”

Source: ETFWorld.co.uk