Multi-asset  

Product review: Goldman Sachs’ dynamic strategy funds

True Potential has launched new funds that distribute Goldman Sachs’ dynamic strategy funds in the UK for the first time.

The Goldman Sachs Multi-Asset Dynamic Strategy Portfolio (GS Dynamic) and the GSQuartix Multi-Asset Dynamic Protection Strategy Portfolio (GS Protector) are available exclusively on the True Potential Wealth platform.

The GS Protector aims to maximise potential returns while providing the protection that on any day, the net asset value of the relevant share class does not drop below 80 per cent of the highest net asset value prior to that day. The GS Dynamic fund carries annual charges of 0.95 per cent, and the GS Protector fund charges are 1.25 per cent per annum. There is no minimum investment.

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Comment

The buzz around this product hinges on the fact the funds are available in the UK for the first time; a testament to the reputation of Goldman Sachs.

The name is a major asset to these funds, but they cannot rest on their laurels. It is a good selling point that will need to be backed up in practice.

The funds are not widely available, and can only be accessed through the True Potential platform. The well-known brand of Goldman Sachs could be enough to encourage confidence in new investors – the fact there is no minimum investment makes these funds more accessible .

The diverse asset mix of the funds works in line with the aim to provide additional diversification to more traditional, static funds.

Multi-asset strategies are becoming increasingly popular with investors, so presenting this strategy captures the growing enthusiasm. The strategy’s asset allocation has low exposure to fixed income in the form of UK government bonds, which would be attractive to investors who are cautious about the current state of the bond market.

The diverse asset allocation under the eye of a big-name company like Goldman Sachs could end up being a big draw for those new to investment.

There is enough here to make the funds an attractive prospect to the untrained eye, and this appears to be backed up by a sound strategy.