GS EM HARD CCY BOND ACTIVE ETF (ACC)
| Issuer: Goldman Sachs |
| Asset Class: Fixed Income |
| TER: 55bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 15 Dec 2025 |
| Ticker: GEMG |
| ISIN: IE000M3UHD88 |
This actively managed fund seeks to provide total return by investing primarily in hard currency-denominated debt securities from emerging market issuers. It focuses on government and quasi-sovereign bonds but can also include corporate debt. The active management approach allows the portfolio managers to dynamically adjust the portfolio based on their macroeconomic views, credit research, and assessment of market opportunities and risks. This flexibility aims to outperform traditional passive emerging market debt strategies by actively selecting securities and managing duration and country allocations.
A key aspect of the strategy is its focus on "hard currency" bonds, typically issued in U.S. dollars. This helps mitigate the direct currency fluctuation risks associated with investing in local emerging market currencies, which can be a significant source of volatility. The investment process integrates a top-down macroeconomic analysis with bottom-up security selection, leveraging a dedicated team of emerging markets specialists. This dual approach helps in identifying countries with strong fundamentals and companies with sound credit profiles.
This investment is designed for investors seeking higher yields than those typically available in developed market bonds and who are willing to accept the higher risks associated with emerging economies. It can serve as a core holding within an investor's emerging market debt allocation or as a diversifying component in a broader global fixed-income portfolio. The active management aims to navigate the complexities and volatility inherent in emerging markets, potentially enhancing risk-adjusted returns compared to a passive index-tracking product. The accumulating share class structure makes it suitable for long-term investors focused on capital growth, as all income is automatically reinvested.
