Goldman Sachs unveils sustainable bond funds

Using the firm’s green and impact bonds assessment methodology

Goldman Sachs Asset Management has launched two sustainable fixed income funds.

The Goldman Sachs Global Impact Corporate Bond Fund and USD Green Bond Fund will select bonds that finance impactful environmental, social or sustainability projects across the corporate credit spectrum, according to the firm.

“Both corporate issuance and investor appetite for social and sustainability bonds continue to grow, making it an increasingly important segment for fixed income, alongside the burgeoning green bonds market,” said Bram Bos, global head of green, social and impact bonds at Goldman Sachs Asset Management.  

“The global bond market is a key source of investment to drive the climate transition and address topics such as inclusive growth.”

The bonds included in the Global Impact Corporate Bond Fund will be selected based on having clearly defined social or environmental objectives and impact, targeting a broad range of UN Sustainable Development Goals.

Meanwhile, the USD Green Bond Fund is designed to invest globally in both corporate and government bonds and investment grade credit, building on Goldman Sachs’ existing bond range by offering a global alternative for clients seeking USD-denominated exposure.

“An increasingly wide range of investors would like to direct their capital towards companies solving clear social and environmental challenges,” commented Hilary Lopez, head of EMEA third-party wealth at Goldman Sachs Asset Management.

“These two funds enable investors to tap into growing areas of opportunity and diversify their fixed income portfolios, while helping to finance impactful environmental, social and sustainability projects.”