GLOBAL - Goldman Sachs Asset Management (GSAM) is one the verge of unveiling its first actively managed commodity fund for global clients.
Ruud Hendriks, head of institutional business development Continental Europe, Middle East and Africa, said: “We believe there is a strong appetite for this asset class. People who are familiar with this asset class know that it is volatile but uncorrelated to the more traditional asset classes and there may be potential to get alpha out of this on a long term view.
“We believe there is a strategic long term case for commodities in a portfolio. It provides good diversification benefits and because of its low correlation with the more traditional asset classes, it can in some cases reduce the overall risk of a total portfolio whilst potentially increasing total portfolio returns.”
Hendriks said that there would be two versions of the fund - one for the non- US clients and one for US clients.
GSAM already has a commodity fund tracking the GSCI index.
Hendriks added: “For some clients who have been invested in commodities on a passive basis for sometime, for example via the GSCI (Goldman Sachs Commodity Index) they have become comfortable with it as an asset class in general, they have a better understanding of the asset class and the role it plays in their portfolio and they are now ready to step up a gear and invest more actively. In other words they are seeking make their assets work.”
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