Whether investors are looking to preserve, enhance or create wealth, we believe the GS Wealthbuilder Multi-Asset Portfolios can help achieve these goals in a single multi-asset investment.
The GS Wealthbuilder Multi-Asset Portfolios are a suite of risk-targeted, multi-asset funds that provide global exposure to a wide range of asset classes, while seeking capital appreciation and income over the medium to long-term. The suite consists of three funds which cater to investors' varying objectives and appetite for risk.
The funds are designed to meet three long-term levels of volatility: 6% for Conservative, 9% for Balanced and 12% for Growth investors, or roughly 40%, 60% and 80% of global equity risk. That said, we do not target a constant level of volatility as this could result in us taking a short-term view and changing positioning at the wrong time. 2016 was a case in point. As negative market reactions to the UK referendum and US election caused an initial spike in volatility, this quickly dissipated. Markets were then left above where they were leading up to these events.
Since their inception over three years ago, the retail share class (GBP) for the funds has generated net returns of 3.9% (Conservative), 5.7% (Balanced) and 7.4% (Growth) respectively2.
What makes us different?
For over 20 years, our 135-strong team has been dedicated to providing multi-asset solutions for clients. We have built the Wealthbuilder portfolios to be resilient across a business cycle. By incorporating exposure to alternatives and active strategies, we aim to be less reliant on the performance of equities. An integral risk-based framework helps us get a deeper understanding of key risk drivers when constructing our portfolios. We then reduce or hedge risks which we do not believe we will be sufficiently rewarded for and monitor these on a daily basis. Our team of experienced economists helps us to interpret macroeconomic data and position the portfolios for the prevailing stage of the business cycle.
The themes we're watching
We continue to emphasise three macro themes for 2018. Global growth will continue to run above trend but the pace is likely to moderate from the brisk momentum seen in the middle of last year. We favour Emerging Market assets as we see growth momentum in these economies as accelerating and having more room to run. Monetary tightening in the US may start to become a headwind to market returns and growth. In 2017, we saw a hawkish policy surprise being undone as disappointing inflation data led to continued easing of financial conditions and a fall in bond yields. We have seen this starting to change as rising commodity prices and tight labour supply start to lift inflation. While we expect the continued expansion to lead equity markets to new peaks, we think the path will continue to have more potholes (short-term pull backs). This environment should favour a dynamic approach to allocation for equities, corporate credit and commodities.
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Past performance does not guarantee future results, which may vary. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur.
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Views and opinions expressed are for informational purposes only and do not constitute a recommendation by GSAM to buy, sell, or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change, they should not be construed as investment advice. The economic and market forecasts presented herein are for informational purposes as of the date of this presentation. There can be no assurance that the forecasts will be achieved. Please see additional disclosures at the end of this presentation. There is no guarantee that these objectives will be met.
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- For illustrative purposes only. Performance results vary depending on the client’s investment goals, objectives, and constraints. There can be no assurance that the same or similar results to those presented above can or will be achieved.
- Inception date: 30-Jun, 2014. Performance as of 31-Mar, 2018. Conservative – GS Wealthbuilder Conservative Portfolio, Balanced – GS Wealthbuilder Balanced Portfolio, Growth – GS Wealthbuilder Growth Portfolio. Returns less than 12 months are cumulative, not annualized. Returns stated are net of fees. Past performance does not guarantee future results, which may vary. There is no guarantee that these objectives will be met.