PrivilEdge
Goldman Sachs Euro Credit

The fund seeks to consistently outperform the Bloomberg Barclays Euro Aggregate Corporate TR EUR Index and to deliver an average annualised information ratio of 0.5 over three years (gross of fees). The team’s investment approach seeks to leverage multiple sources of alpha (such as beta positioning, sector allocation, and security selection) and market inefficiencies. It uses top-down views that rely on fundamental credit research and a collaborative and research-intensive investment process. The portfolio’s top-down allocation is based on four dimensions (such as macroeconomic scenarios, fundamental outlook, technical, and valuations) and eleven key factors that are translated into appropriate risk budgets in terms of duration time spread. Subsequently, the team uses the research’s output to populate the various buckets and build a diversified portfolio of about 300 bonds from more than 150 issuers. The fund does not exhibit currency risk (maximum 20% invested in non-EUR credit bonds hedged back to EUR) and limits its active duration to +/- 1 year versus the benchmark. Goldman Sachs Asset Management acquired NN Investment Partners, the original manager of this PrivilEdge fund, in 2022, and currently manages over +800 USD bn in fixed income and currencies.