Citywire Selector - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Goldman Sachs launches tracker funds targeting alternative beta

Goldman Sachs launches tracker funds targeting alternative beta

Goldman Sachs Asset Management has launched a range of Ucits funds based on alternative weighted benchmarks that enable investors to gain market exposure while limiting volatility.

The funds will be based on a set of S&P Dow Jones indexes, the Global Intrinsic Value Index (GIVI) range, which are based on an alternative weighting scheme rather than the traditional market cap-weighted method.

The S&P GIVI Global Growth Markets Tilt index is designed to combine growth and value characteristics. The index is a combination of the S&P GIVI indexes, which are based on low volatility and alternative weighting schemes, with the S&P GIVI GDP weighted indexes.

While the S&P GIVI indexes’ method weights stocks by their intrinsic value, rather than market capitalisation, the S&P GIVI GDP Weighted indexes apply alternate country weights derived from their gross domestic product.

Jim O’Neill (pictured), chairman of GSAM, said: ‘We see more and more investors looking beyond classic market beta for factors that influence performance and risk.

‘There are several factors behind this development – not least the volatility that we have seen in recent years but also the rise and importance of the growth markets.'

‘In our view, it’s time that new and innovative ways of managing money against differently constructed benchmarks are considered.’

He said the GIVI concept removes 30% of the stocks with the greatest historical volatility, and weights the remaining stocks by their estimated economic worth rather than on the basis of market cap.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Alternative Ucits Retreat 2017

    Citywire Alternative Ucits Retreat 2017

  • Citywire Milan 2017

    Citywire Milan 2017

  • Citywire Paris 2017

    Citywire Paris 2017

  • Citywire Deutschland 2017

    Citywire Deutschland 2017

  • Citywire DACH 2017

    Citywire DACH 2017

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016

  • Citywire Berlin 2016

    Citywire Berlin 2016

  • Citywire Switzerland 2017

    Citywire Switzerland 2017

  • Citywire Amsterdam 2016

    Citywire Amsterdam 2016

  • Citywire Montreux 2016

    Citywire Montreux 2016

  • Citywire Deutschland 2016

    Citywire Deutschland 2016

  • Citywire Latin America 2016

    Citywire Latin America 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Munich 2016

    Citywire Munich 2016

  • Citywire Paris Alt Ucits 2016

    Citywire Paris Alt Ucits 2016

  • Citywire Zurich Alt Ucits 2016

    Citywire Zurich Alt Ucits 2016