July 1, 2010

Goldman Sachs Rolls Out New Global Fixed Income Fund

Untied to a benchmark, the fund can take advantage of dynamic market conditions.

Goldman Sachs Asset Management, L.P. (GSAM) launched the Goldman Sachs Strategic Income Fund on Thursday, July 1. The fund, a broadly diversified portfolio of U.S. and foreign fixed income securities, is designed to uncover higher yielding income opportunities in the global fixed income market, the firm said in announcing the new product. The fund's investment objective is to provide investors with a diversified source of attractive income without the traditional constraints of a benchmark.

GSAM's global fixed income team, which oversees some $284 billion in assets as of March 31, will manage the new fund, incorporating the best investment ideas generated by its portfolio managers and nine strategy teams, according to the statement. It noted that because the fund is not tied to a benchmark, the portfolio managers will be able to adjust sector allocations to provide attractive return potential and better manage overall portfolio risk.

"The fund's dynamic nature should enable it to adapt to rapidly changing market conditions and proactively manage risks such as those posed by ballooning sovereign debt or a volatile interest rate environment," Mike Swell, lead portfolio manager of the fund and co-head of U.S. fixed income for GSAM, said in the statement.

GSAM offers the fund in A and C shares, both with $1,000 minimum initial investments. The fund is also available in Institutional and R & IR Class Shares.

GSAM is the asset management arm of The Goldman Sachs Group, Inc., which manages $841 billion as of March 31.

Michael S. Fischer (msf7@columbia.edu) is a New York-based financial writer and editor and a frequent contributor to WealthManagerWeb.com.

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