Goldman Sachs AM Lists Two Actively Managed Global Government Bond ETFs on LSE

Goldman Sachs AM (GSAM) has listed two new actively managed bond exchange-traded funds (ETFs) on the London Stock Exchange.

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Hilary Lopez, head of the EMEA Third Party Wealth Business at Goldman Sachs Asset Management

ETFs provide exposure to global government debt while incorporating environmental, social, and governance (ESG) criteria into their investment process.

The funds launched as investors continue to allocate significant capital to bond ETFs in 2025, a segment seeing substantial growth and product innovation. However, they enter a market where many government bond indices have posted negative returns for the year.

Fund Objectives and Structure

Both sub-funds share the same core objective: to achieve a long-term return by actively investing primarily in investment-grade fixed-income securities issued by governments and government-related issuers worldwide. Each fund will invest at least two-thirds of its net assets in such securities.

A central feature is their active management strategy. While they use the J.P. Morgan Global Government Bond Index (USD) as a performance comparator, portfolio managers have full discretion over asset composition. This means the funds can hold securities not in the benchmark and weight components differently, leading to returns that may deviate materially from the index.

Both ETFs also promote environmental and/or social characteristics. The investment manager implements a proprietary ESG approach, applying minimum inclusion criteria based on internal ESG ratings to select bonds. This launch aligns with GSAM’s recent expansion of its sustainable fixed-income offerings, which includes dedicated green, social, and biodiversity bond funds.

Key Differences Between the Two Share Classes

The two listings are distinct share classes of the same fund, catering to different investor needs for currency exposure and income treatment.

Market Context and Competitive Landscape

Goldman Sachs has an existing track record in this space. The firm manages the Goldman Sachs Access Emerging Markets USD Bond ETF (GEMD), a passive fund tracking emerging market sovereign debt. The newly listed active global government bond ETFs represent a strategic expansion into a different segment of the fixed-income market.

The funds are structured as UCITS and are listed on the London Stock Exchange, with shares traded daily through intermediaries.

Source: ETFWorld.co.uk