Fund Rationale: Goldman Sachs Emerging Markets Corporate Bond Portfolio Fund

Goldman Sachs Emerging Markets Corporate Bond Portfolio Fund (the “Fund”)
SGD Hedged Class Stable Monthly Distribution Shares (ISIN: LU1574459795)
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Endowus has selected the Fund as it offers:

  • Structured and holistic investment process focusing on bottom-up credit selection;
  • Deep bench of Emerging Market Corporate Debt investment experts  that also leverages firm-wide resources for decision making;
  • Track record that has outperformed the benchmark in most of the calendar years since inception;
  • Stable distribution that is generated mostly from coupons of the underlying assets; and
  • Retail share class with 100% trailer fee rebated back to Endowus investors to achieve lower cost of access.

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Key Information

Fund Objective: The Fund aims to provide income with some capital appreciation by investing primarily in investment and sub-investment grade corporate bonds issued by companies based in or earning most of their revenues from emerging markets.

Suitability: Investors who seek income with some capital appreciation, and seek exposure to a portfolio of primarily investment and sub-investment grade corporate bonds issued by companies based in or earning most of their revenues from emerging markets, denominated in developed or emerging market currencies.

Cost: 
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  1. Total Fund-level Fees include fund management fee of 1.25%.
  2. This is a retail share class with 100% trailer fee rebated back to Endowus investors to lower the cost of access.
  3. Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 17 May 2011
Share Class Inception: 13 April 2017
Benchmark: JP Morgan CEMBI Broad Diversified Index 

Fund AUM: SGD 5.63bn
Source: MorningStar as of  24 June 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

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Sector Allocation:

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Source: MorningStar as of 30 April 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown. 

Selection Criteria

Endowus have selected the GSAM Emerging Markets Corporate Bond Portfolio Fund because firstly, it has a structured and holistic investment process that focuses bottom-up credit selection. Over the years, the Fund’s performance has been driven predominantly by credit selection. We think that GSAM’s credit analysis process is thorough and leads to a robust portfolio construction process with defined risk budgets. 

The Emerging Market Corporate Debt team consists of a 12-person corporate analyst team and 2 portfolio managers. The portfolio managers, Sam Finkelstein and Kay Haigh, both have more than 20 years of experience investing in emerging market debt. The team is part of the larger Emerging Market Debt team and the Global Credit Platform, and the corporate analysts leverage these firm-wide resources to establish sector and country outlook which help to reinforce their conviction on individual issuers’ attractiveness. They have a team-based approach that encourages a lot of healthy dialogues and debates. 

The Fund, since its inception in 2011, has outperformed the benchmark in most of the calendar years within its defined tracking error. 

Finally, the Fund’s monthly stable distribution share class targets a stable payout that is consistent with the fund’s current yield. Over the past 12 months, it has been able to achieve a 5% annualised distribution. This level is subject to quarterly review in order to make sure the payout level can be sustained without paying out from capital. 

The Fund primarily invests in hard currency emerging markets debt and has minimal exposure in other currencies. 

Investors should take note that solely investing in this Fund involves taking on specific risks in emerging markets, and should consider diversifying their portfolio across other geographies.

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Updated by Endowus: June 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.