Goldman Sachs Asset Management has launched three UCITS funds based upon the S&P's GIVI indices concept, which combines low volatility and alternative weighting schemes to weight stocks.
Goldman Sachs Asset Management has launched three UCITS funds based upon the S&P’s GIVI indices concept, which combines low volatility and alternative weighting schemes to weight stocks.
Goldman Sachs GIVI Growth and Emerging Markets Equity Portfolio; Goldman Sachs GIVI Europe Equity Portfolio and Goldman Sachs GIVI Global Equity – Growth Markets Tilt Portfolio are available to investors in Belgium, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Singapore, Spain Sweden and UK.
Jim O’Neill, chairman of GSAM, said more investors are looking beyond classic market beta for factors that influence performance and risk.
“There are several factors behind this development, not least the volatility that we have seen in recent years but also the rise and importance of the Growth Markets. In our view, it’s time that new and innovative ways of managing money against differently constructed benchmarks are considered,” he said.
The GIVI concept eliminates 30% of the stocks with the greatest historical volatility, and weights the remaining stocks by their estimated economic worth rather than on the basis of market cap.
He added: “At GSAM, we believe this approach to constructing equity portfolios could help generate higher returns at a lower level of volatility and risk, than market cap weighted indices. We believe that this concept works across different asset classes and regions, and I’m delighted that from today investors can begin accessing this strategy through a range of global equity portfolios.”