Goldman Sachs Global High Yield Portfolio Capitalisation EUR (Hedged III) (O935)

Overview

Goldman Sachs Global High Yield Portfolio Capitalisation EUR (Hedged III) is a specialized fixed income investment fund that aims to provide euro-based investors a robust entry point into the global high yield corporate bond market while effectively managing currency risk. The fund primarily focuses on a well-diversified array of below investment grade, or high yield, corporate bonds sourced from companies located in North America and Europe.

This investment strategy is designed to capitalize on the higher interest rates typically associated with these bonds, as they offer increased returns in exchange for greater credit risk. Consequently, this fund is particularly appealing to investors looking to enhance their income generation within the fixed income arena.

One of the standout features of this portfolio is its systematic approach to currency hedging. This strategy aims to mitigate the impacts of fluctuations in foreign exchange rates, specifically for investors holding assets in euros. The fund's investment universe extends beyond its primary benchmark, engaging in a selection of additional bonds that promise favorable risk-adjusted returns. The benchmark itself is a carefully constructed mix that allocates 70% to the Bloomberg US High Yield index and 30% to the Bloomberg Pan-European High Yield index, thereby providing a broad perspective on the high yield debt market. Furthermore, the portfolio enjoys an Article 8 classification under the EU's Sustainable Finance Disclosure Regulation (SFDR), reflecting a commitment to integrate sustainability principles into its investment framework.

In summary, this fund serves as a vital vehicle for both institutional and individual euro-based investors, providing diverse, actively managed exposure to the global high yield sector while simultaneously addressing currency volatility concerns.

Products and Services

• Global High Yield Corporate Bonds:

  The portfolio predominantly invests in a diversified selection of below investment grade corporate bonds. These bonds are issued by companies from North America and Europe, presenting an opportunity for higher yields in the fixed income market.

• Currency Hedging:

  The fund employs systematic currency hedging techniques to reduce the potential impact of exchange rate fluctuations on returns. This feature is particularly valuable for euro-based investors seeking to preserve their investment value in volatile currency conditions.

• Broad Investment Universe:

  This fund goes beyond its benchmark, allowing for investments in additional bonds that could provide attractive risk-adjusted returns. This broad investment scope enables the portfolio to adapt to changing market conditions and capitalize on various opportunities.

• Benchmark Index:

  The portfolio’s performance is measured against a blended benchmark comprising 70% Bloomberg US High Yield and 30% Bloomberg Pan-European High Yield indices, thus ensuring a comprehensive evaluation of the high yield landscape.

• Sustainability Commitment:

  With an Article 8 classification under the EU's Sustainable Finance Disclosure Regulation (SFDR), the fund incorporates sustainability factors into its investment decisions, appealing to socially conscious investors who prioritize ethical investing.