Goldman Sachs Asset Management is to become the latest fund group to offer a short-duration Euro bond product with the launch of a new fund.
The Goldman Sachs Euro Short Duration Bond Portfolio will invest its assets primarily in investment-grade short-term fixed and floating-rate debt securities denominated in Euros.
The fund’s management fees are expected to range from 0.4% to 0.8% depending on the share class bought. The lowest minimum investment amount has been set at £1,500.
Goldman Sachs already runs a Euro Fixed Income fund, a first quartile performer over the past one, three and five years. On a five-year view it has produced an annualised return of 6.07% compared with 4.33% from its peer group and 5.09% from its benchmark Barclays Euro Aggregate Bond index.
The launch follows a year in which money has flown into fixed income funds that offer some protection against interest rate rises. According to the most recent data from Lipper, in November short-duration Euro bond funds pulled in £1.8 billion, making it the month’s fifth most popular sector.
Earlier this month Standard Life converted its Select Income fund into a short-duration credit fund for its recent hire Daniel McKernan, who joined the firm from Swip in September.