Goldman Sachs Asset Management announced the listing of its first three ETFs at the Swiss Stock Exchange.
They listed an ActiveBeta U.S. Large Cap Equity UCITS ETF, anGoldman ActiveBeta Emerging Markets Equity ETF and an Access China Government Bond ETF.
The Goldman Sachs Access China Government Bond UCITS ETF aims to simplify access to the Chinese government bond market by leveraging Bond Connect – the new market access scheme – for investors seeking to gain exposure to China’s bond market. As of 1 April 2019, Chinese government and policy bank bonds were included in the Bloomberg Barclays Global Aggregate Index and will be phased into the major global bond index up to a weighting of 6% over a 20-month period. In September, JPMorgan announced its intention to phase in China bonds to the JPMorgan Government Bond Index-Emerging Markets indices from February 2020, amid expectation that FTSE Russell will take similar action.
As a result, funds benchmarked to these indices will need to invest in Chinese bonds to avoid an increase in tracking error. The Goldman Sachs Access China Government Bond UCITS ETF provides investors with cost-efficient exposure to Chinese bonds via an ETF, which can also provide additional liquidity and enhanced transparency relative to holding the underlying bonds.
Over the next six months, GSAM is planning to launch a range of ETFs providing access to a number of markets, asset classes and investment styles. Many of these investment strategies have been developed in-house using the expertise and experience of GSAM. The ETFs are designed to be complementary to GSAM’s active fund range and are intended to be combined together or used as part of broader, diversified portfolios to help clients optimise and simplify their existing investments.
Pascal Mischler, Head of GSAM’s Client Business in Switzerland, said:
“Our clients are demanding more choice in their portfolios and we are excited to complement our existing fund range with ETFs that we believe can help simplify portfolio construction and contribute to superior risk-adjusted returns. The funds will be relevant to both retail and institutional clients. This is a significant addition to our Swiss product offering and we are tremendously excited to enter the fast-growing European ETF market.”
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