Best Fund Provider – Emerging Market Equity
Goldman Sachs Asset Management
GSAM has been managing dedicated emerging markets equity strategies since 1995, recognizing the tremendous growth potential of this asset class. The GS Emerging Markets Equity Portfolio’s investment philosophy is based on the belief that sustainable excess returns can be generated through in-depth fundamental research, alongside a thorough understanding of local markets. This has enabled us to have a strong track record of alpha generation.
Our investment team, composed of 25 dedicated investment experts, is based in five different locations across the globe, and its profound experience and knowledge allow us to find high or improving quality companies with strong management teams and sustainable returns profiles that are available at attractive valuations.
This expertise has driven the team’s success in investing across a range of sectors and market capitalisations. The portfolio maintains a meaningful exposure to small and mid-caps, as well as off-benchmark names to take advantage of these less efficient parts of the market.
Finally, our rigorous approach to risk management – which aims to drive risk from our stock-level decisions and focuses on maintaining a balanced portfolio at all times – has been the key driver of our consistent performance across different market environments.
It isn’t easy to stand out in a fiercely competitive category. But Goldman Sachs Asset Management managed to do that, thanks to a consistent ability to deliver returns despite volatile market conditions.GSAM follows a fundamental driven, bottom-up approach to building a high quality portfolio, considering material ESG factors into every aspect of its decision making process, where relevant.
The asset manager has two critical elements to its investment philosophy: business and valuation. It puts that to use by seeking out sound businesses that are trading at a substantial discount to intrinsic value.
A majority of GSAM’s alpha is achieved by proven stock selection decisions, drawing on the strength of the investment experience and expertise of co-portfolio managers’ Hiren Dasani and Basak Yavuz in combination with a 25-member strong Emerging Markets Equity Research team with an average investment experience of 13 years, and based in Hong Kong, Singapore, Mumbai, Sao Paulo and New York. While the magnitude of GSAM’s alpha was due to strong stock selection, the consistency was a function of the asset manager’s disciplined risk focused and portfolio construction approach.
It is no surprise that GSAM’s portfolio finds itself widely accepted on private banking platforms globally and in the region. GSAM has been managing portfolios for Institutional Investors and Private Banks in Asia for more than 25 years. Over the last 10 years, that coverage has been solidified with private banks in the region. With over US$1.9 trillion in assets under supervision globally, GSAM currently has over 30 existing private bank relationships in Asia where a distribution agreement is in place.
And investors have taken notice.
Over the trailing 12-month period as of 31 August 2020, the Goldman Sachs Emerging Markets Equity Portfolio had grown in size by about US$430 million, an increase of 188% vis-à-vis the preceding 12-month period ending August 2019.
While the period witnessed significant inflows of about US$550 million across diverse channels, the difference was driven by market appetite for the asset class as a result of volatilities caused by heightened trade tensions in 2019 and the economic impact of the COVID-19 pandemic in 2020.
One of the key differentiators GSAM offers to a select group of focus clients is access to its Strategic Advisory Solutions (SAS) resources. The SAS team provides a comprehensive suite of integrated solutions designed to help clients grow and enhance their businesses via market strategy and business practices. Add to that, the eponymous global market and economic research from Goldman Sachs, including thematic, global equity and fixed income research.
For the consistency of its performance and its resilience in a highly testing market environment, GSAM wins the Asian Private Banker’s wins Best Fund Provider – Emerging Market Equity.