Goldman Sachs' asset management is going mainstream by launching seven investment funds for retail investors in Hong Kong. Previously, these funds were available only to private banking and institutional investors.

Goldman Sachs Asset Management, or GSAM, said it will be making seven of its investment funds available to retail investors in Hong Kong, once it receives approval from the Securities and Futures Commission. 

«Hong Kong is an important market for GSAM and the launch marks our expansion into one of the largest mutual fund markets in Asia. We are pleased to be offering retail investors a range of world-class investment solutions,» said Jessica Jones, head of GSAM’s retail client business in Asia Pacific ex-Japan.

Access to Quant Strategies

Three funds - Goldman Sachs Emerging Markets CORE Equity Portfolio, Goldman Sachs Europe CORE Equity Portfolio, and Goldman Sachs Global CORE Equity Portfolio - are managed using in-house quantitative investment strategies (QIS), which combines fundamental insights with technology that can analyse over 13,000 stocks daily.

«We offer a differentiated approach by incorporating big data into our investment process. We use traditional and alternative data sources, underpinned by human judgment, to identity investment opportunities for our clients,» said Alison Lau, head of the QIS team in Asia Pacific ex-Japan.

Fund Exposure

Of the seven funds being made available to retail investors, four of them focus on emerging markets, where the region have seen significant outflows in the middle of the year.

«The longer term outlook for emerging markets remains positive, despite near-term uncertainties. In our view, the question is not when to invest in emerging markets, but how,» said Jones. 

Huge Outflows in Second Quarter

Global investors have pulled billions of dollars from emerging market stock and bond funds during May and June this year, reflecting anxieties over the asset class as global trade tensions escalated.

Emerging markets bond funds faced the 10th consecutive week of outflows in the period to June 27, according to Jefferies calculations using EPFR data, as reported in «Financial Times» (behind paywall). During the streak of outflows, the funds have faced US$14.1 billion in net redemptions.

The situation is equally gloomy in equities, where redemptions have hit $8.7 billion during a three-week run of outflows.