Goldman Sachs's
"Rapid change is disrupting the status quo across industries and around the world. We believe we are on the cusp of a sustainability revolution that could have the scale of the industrial revolution and the speed of the digital revolution," said Katie Koch, co-head of the Fundamental Equity business within Goldman Sachs Asset Management, in a press statement. "In our view, this may give rise to a unique wealth creation opportunity for investors over the next decade."
Koch says that GSFP will invest in companies that are "on the right side of the climate transition," meaning they are actively adapting their business models and strategies to benefit from a more sustainable future.
The fund is structured to invest in companies that "seek to provide solutions to environmental problems" within five key theme: clean energy, resource efficiency, sustainable consumption, the circular economy, and water sustainability. GSFP will also actively select companies with the potential to drive more sustainable business practices and deliver strong returns across an array of sectors, geographies, and market capitalizations.
"We believe we're at a key inflection point: for the first time ever, governments, corporates and consumers are all aligned in driving a global sustainability revolution, but the scale of the challenge is so large that a holistic approach is necessary," said Alexis Deladerrière, portfolio manager of GSFP and head of international developed equity markets for Goldman Sachs Asset Management's Fundamental Equity team, in a press statement. "GSFP will seek to invest in companies providing solutions to a variety of environmental challenges that are critical to supporting our planet for future generations."
While the ESG ETF field is becoming overpopulated, especially with U.S. large-cap ETF offered by big names like BlackRock
Instead, GSFP's top five holdings are Enel SpA (OTC) ENLY), Ecolab
GSFP has an expense ratio of 0.75% and offers a concentrated portfolio of 40 to 60 companies at a time.