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GSAM partners with Citic Bank for distribution

The firm has launched an income-generating mixed-asset product in Hong Kong.

Goldman Sachs Asset Management has launched the Global Multi-Asset Income Portfolio (GMAI) to retail investors in Hong Kong, according to a statement from the firm. The launch follows after the fund received regulatory approval in May for it to be made available to the public.

The portfolio was incepted in 2015 and has around $88m in assets, according to data from Morningstar.

The offering is a mixed-asset product that invests in global equities and bonds, as well as other non-traditional asset classes, according to its fund factsheet. It aims to provide an income stream with some possibility of capital appreciation, it added.

The Goldman Sachs Global Multi-Asset Income Portfolio, as of end-June 2020

Source: Fund factsheet

“The addition of GMAI to our product offering reflects investors’ search for income as the low-yield environment is set to continue,” Gladys Chan, head of GSAM’s retail client business in Hong Kong, said in the statement.

New retail partnership

Goldman Sachs Asset Management has partnered with China Citic Bank International for the first time to distribute the product. It is also the first bank in the SAR to distribute the fund, the statement said.

China Citic Bank’s funds platform include at least 1,500 investment funds managed by 23 asset managers, according to the bank’s website.

The bank joins a growing list of retail distributors operating in Hong Kong that GSAM has partnered with. They include Citibank, which became a retail partner in May, and HSBC, DBS and Standard Chartered Bank.

While the firm has been working with private banking distributors in Hong Kong for decades, it was only in 2018 when it made its first foray into the territory’s retail market. At the time, made seven mutual funds available to retail investors in Hong Kong.

In total, GSAM has made 11 strategies available to retail investors in the SAR, four of which were approved by the Securities and Futures Commission in May. Besides GMAI, the other funds that received approval earlier this year are the Emerging Markets Multi-Asset Portfolio, the Global Millennials Equity Portfolio and the US Core Equity Portfolio.

While the three funds have been made available to HNWIs via the private banking channel, they haven’t been launched to retail investors in the territory yet, the firm said.

The Goldman Sachs Multi Asset Income Portfolio versus its sector in Hong Kong

Source: FE Fundinfo. In US dollars.

Part of the Mark Allen Group.