Goldman Sachs will launch an emerging markets fund focusing on companies it feels have strong ethical credentials.
The Goldman Sachs Asset Management Emerging Markets Equity ESG Portfolio will be managed by the emerging markets equity team at Goldman Sachs.
Luke Barrs, head of GSAM fundamental equity client portfolio management in EMEA, said a focus on environmental, social and governance (ESG) issues didn't necessarily have to sacrifice returns.
He said: "By leveraging proprietary research and insight on companies’ ESG practices, and by engaging directly with management on areas of material risk, the team is able to build a deeper knowledge of businesses they invest in.
"These ESG considerations go hand-in-hand with our proven investment philosophy and alpha-generating capabilities.
"Strong performance on ESG can often indicate that a company is well managed and takes a holistic approach to risk – qualities that indicate strong fundamental performance, not just the ability to tick boxes on ESG scorecards."
Tom Sparke, investment manager at GDIM, a discretionary fund management firm in Cambridge, said: "We see an increasing demand for ESG amongst investors and the supply from fund house seems to be rising to meet it.
"GSAM has a highly successful EM fund and excellent individual country funds so the launch of an emerging markets fund run with ESG in mind is very welcome.
"Emerging markets is a sector where there is a lack of ESG funds and as a large, international firm I think GSAM are well placed to offer one."
david.thorpe@ft.com
