UK – Goldman Sachs Asset Management is launching a range of global sector funds on March 30, categorising all industries into five main sectors.
The company has divided the industries into consumer growth, financial services, health sciences, infrastructure and resources, and technology sectors.
According to the companies global strategy team, global sector influences now account for 20% of stock performance in the developed countries of the FTSE world index, while local market effects only explain 10%.
“Over the past few years, equity markets have seen a shift towards a global economy. “Development in communication, both technological and political, have made it possible for businesses to operate globally, and consequently sectors have increased in importance,” says Susan Noble, head of global equity product management at Goldman Sachs.
The company suggests that two factors continue to favour strong sector influences: rising international sales as a proportion of total sales in the 1990s, and the synchronised global industrial production across Europe, Japan and the US.
The funds, Luxembourg based SICAVs, will be sold through third party distributors. According to Goldman, the funds will typically invest in 30-70 stocks, with no minimum market capitalisation and without geographical restraints - forming a concentrated portfolio through a bottom-up approach.
The funds are authorised for public sale in Austria, Belgium, France, Germany, Greece, Hong Kong, Luxembourg, Norway, Spain, Sweden, Switzerland and the UK.
Goldman Sachs Asset Management, currently, manages some US$258bn for institutional and retail clients.