NEW YORK – Goldman Sachs Asset Management, L.P. (GSAM) today announced the launch of the Goldman Sachs High Yield Floating Rate Fund (Class A Shares: GFRAX) (the Fund), a portfolio of non-investment grade floating-rate loans and other variable-rate securities issued by US and foreign companies. The Fund’s investment objective is to seek a high level of current income.
“We believe floating-rate loans are appealing to investors because they combine relatively moderate price volatility with attractive income that rises along with interest rates,” said Rachel Golder, co-head of the High Yield and Bank Loan team and head of Corporate Credit Research for GSAM. “The Goldman Sachs High Yield Floating Rate Fund seeks to help investors navigate a changing interest rate environment by seeking to uncover what our team believes are the most attractive income opportunities relative to their risk within the non-investment grade loan market.”
Michael Goldstein, CFA, Lead Portfolio Manager of the Fund and co-head of the High Yield and Bank Loan team added, “The Fund is potentially a portfolio and fixed income diversifier, as floating-rate loans have historically posted lower correlations to other asset classes. Additionally, they rank as more senior in an issuer’s capital structure and tend to be higher in quality, implying lower default risk and higher recovery rates.”
GSAM’s Global Corporate Credit team, part of GSAM’s Global Fixed Income team, will manage the Fund. The Global Corporate Credit team will employ industry-leading research and risk management capabilities and incorporate the best investment ideas across the senior bank loan market.
With more than 40 investment professionals, the Global Corporate Credit team oversees $81.7 billion in credit assets as of December 31, 2010. The Global Fixed Income team, which oversees $299.6 billion in assets as of December 31, 2010, has more than 200 investment professionals located across the globe.
The Fund is offered in Class A and Class C shares, both with $1,000 minimum initial investments. The Fund also offers Institutional and Class R & Class IR Shares.
Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages $840 billion as of December 31, 2010. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1989 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global financial services firm providing investment banking, securities and investment management services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
