Goldman Sachs AM repositions Global Energy Equity fund to focus on environmental transition
The fund is focused on five key-themes: extraction, power generation, manufacturing, transportation, and consumption.
Originally launched in 1997, the Article 8-classified fund was recently repositioned and rebranded to Goldman Sachs Global Environmental Transition Equity.
The fund, which promotes environmental or social characteristics but does not have a sustainable investment objective, focuses on companies with a heavy environmental footprint that are seeking to improve their business models and sustainability profiles.
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Using the firm's proprietary internal tools and systems, the managers will qualitatively and quantitatively assess the environmental impact and transition plans of the companies they invest in.
This will be coupled with ongoing stewardship and engagement that will seek to monitor progress and promote sustainable and shareholder-friendly practices.
The fund is focused on five key-themes: extraction, power generation, manufacturing, transportation, and consumption. It invests across a range of sectors, predominantly in high quality, mature, value-oriented companies, which exhibit strong free-cash-flow yields and potentially attractive valuations.
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According to GSAM, the strategy can «provide balance» to broader sustainable equity allocations, which can often be growth-oriented, and can be interesting to investors seeking to reduce the environmental impact of their investment portfolio.
Alexis Deladerrière, head of international developed market equities at GSAM, said: «The companies that have a heavy environmental footprint today will play the biggest role in
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