Goldman Sachs Asset Management
Liquidity management is a core capability within Goldman Sachs and has remained a strategic focus since the inception of the firm’s asset management business. Leadership in cash management dates back to 1981, when the Fixed Income Division acquired management responsibilities for $2bn in two institutional money market portfolios. In 1988, Goldman Sachs Asset Management (GSAM) was formally established around this small but growing business.
Today, Global Liquidity Management encompasses GSAM’s money market and short-duration fixed income businesses and approximately 35% of GSAM’s total assets under management1. Our liquidity solutions encompass commercial and government securities as well as multicurrency options including US$, GBP, euro, AUD and yen. Reflecting the strength of our capabilities and investing ability, GSAM is one of the top five institutional money market fund managers globally(2).
Kathleen Hughes, Co-head of Global Liquidity Sales commented: “We are delighted to receive the TMI Awards for the Best Money Market Funds in Europe and in North America. We remain committed to our conservative approach, focusing on effectively managing portfolios by seeking to preserve capital and maintain a high degree of liquidity. As we celebrate 30 years of Global Liquidity Management in 2011, with a 15 year anniversary for our offshore business, we believe these awards are testimony to our expertise.”
We aim to meet our clients’ need for preservation of capital, liquidity and competitive yields through: liquidity solutions which we believe are high quality; support in navigating the financial markets and expertise in expanding organisational resources.
A strong team and proven investment process
Liquidity solutions at GSAM begin with a mission to provide preservation of capital and daily liquidity. We seek to accomplish this mission through the strength of our portfolio management team and investment process.
GSAM investment professionals, for example, actively participate in numerous industry working groups, providing feedback that helps shape policy and money market industry regulation. “Working with the relevant industry bodies I’ve found that clear, insightful and engaged discussions at the highest level with senior policy makers, can help to shape regulation for the benefit of investors” said Kathleen, an IMMFA Board Member. Senior GSAM professionals have helped shape best practices in risk management, developing risk analysis tools adopted widely by the industry. Our senior portfolio managers offer an average of 14 years’ industry experience and the team has experienced historically low turnover, adding organisational continuity to the advantage of experience.
Our investment process benefits from years of continuous evolution as well as firm wide expertise. Combined inputs from the Goldman, Sachs & Co. Credit Department and GSAM, for example, seek to mitigate risk within our money market portfolios. In addition, weekly meetings between senior Goldman, Sachs & Co. economists and Goldman Sachs Asset Management portfolio management ensure that our strategy across all portfolios is consistent with current economic policy.