GSAM bets on financial sector
Credit Suisse and Crédit Agricole top Goldman’s specialist fund holdings.
The financial services industry constitutes one of the most attractive sectors to invest in, according to new research from Goldman Sachs Asset Management (GSAM).
GSAM ’s research shows financial services companies have consistently grown their earnings faster than their non-financial peers.
There are two key factors behind this growth. As the world’s population is getting older and wealthier, spending on financial products is increasing. Financial providers are also reducing costs due to consolidation.
“Usually people don’t see the financial sector as a growth area,” said Suneil Mahindru, manager of the Goldman Sachs Global Financial Services fund. “But in the UK, the amount of money spent on financial products has doubled in the last 10 years.”
The fund, launched three years ago, invests in a portfolio of companies likely to benefit from current sector trends. GSAM claims to have delivered net returns of 31.67 per cent over this period, making it the second best performer in the sector.
The fund invests 45 per cent of assets in Europe and 46 per cent in North America. Crédit Agricole and Credit Suisse are the two top holdings.
