Goldman Sachs launches Future Planet Equity ETF
Goldman Sachs Asset Management has launched the Goldman Sachs Future Planet Equity ETF (GSFP), described as the first transparent, actively managed equity ETF launched by Goldman Sachs.
The new fund expands the firm’s existing suite of thematic ETFs designed to help investors position their portfolios on the right side of disruption by providing focused exposure to long-term secular growth trends. Goldman Sachs intends to invest in the fund alongside its clients.
“Rapid change is disrupting the status quo across industries and around the world. We believe we are on the cusp of a sustainability revolution that could have the scale of the industrial revolution and the speed of the digital revolution. In our view, this may give rise to a unique wealth creation opportunity for investors over the next decade,” says Katie Koch, co-head of the Fundamental Equity business within Goldman Sachs Asset Management. “The fund will invest in companies that are on the right side of the climate transition and have a positive impact on our future planet.”
“Climate transition is not only a central issue for markets and economies but is also having a greater real-time impact on individuals, families, and communities around the world,” says Margaret Anadu, global head of sustainability and impact for Goldman Sachs Asset Management. “This ETF creates an opportunity for a broader set of investors to align their portfolio with this key trend.”
The fund intends to invest in companies that seek to provide solutions to environmental problems aligned with five key themes: clean energy, resource efficiency, sustainable consumption, the circular economy and water sustainability. GSFP will conduct active, bottom-up security selection to target companies with the potential to drive more sustainable practices and deliver strong returns across various sectors, geographies and market capitalisations.
“We believe we’re at a key inflection point: for the first time ever, governments, corporates and consumers are all aligned in driving a global sustainability revolution, but the scale of the challenge is so large that a holistic approach is necessary,” says Alexis Deladerrière, portfolio manager of GSFP and head of international developed equity markets for Goldman Sachs Asset Management’s Fundamental Equity team. “GSFP will seek to invest in companies providing solutions to a variety of environmental challenges that are critical to supporting our planet for future generations.”
GSAM writes that the fund also provides the benefits of fully transparent, active management and will be managed by experienced fundamental investors with a disciplined valuation framework.
Goldman Sachs Asset Management’s Fundamental Equity business manages USD19 billion in thematic equity strategies. Both GSFP and the GS Innovate Equity ETF (GINN), a rules-based thematic equity ETF, make the firm’s thematic equity strategies accessible to US-based investors in an innovative wrapper.
“By combining the expertise of our fundamental equity investors with the benefits of the ETF wrapper, we are able to provide our clients with an innovative, tax-efficient investment solution,” says Mike Crinieri, global head of ETFs within Goldman Sachs Asset Management. “ETFs seek to provide greater tax efficiency, transparency and trading flexibility than traditional mutual funds.”