Investment Products and Services Launches

Goldman Sachs Launches High Yield Corporate Bond ETF

Goldman Sachs Asset Management (GSAM) has updated its Access suite of exchange-traded funds (ETFs) with the addition of the Goldman Sachs Access High Yield Corporate Bond ETF (GHYB).

The fund seeks to track the Citi Goldman Sachs High Yield Corporate Bond Index, which measures the performance of high yield corporate bonds denominated in U.S. dollars that meet certain liquidity and fundamental screening criteria. It uses a rules-based methodology that aims to exclude bonds with the greatest potential to default or deteriorate in price. It is priced to investors at 34 basis points and will begin trading on the NYSE Arca on September 7 with $50 million in assets.

The Index is owned and calculated by FTSE Fixed Income LLC using concepts developed with GSAM.

“High yield corporate bonds are a natural choice for investors seeking ways to generate yield in their portfolios,” says Jason Singer, portfolio manager for GHYB. “GHYB aims to address concerns surrounding high yield bonds, particularly that they can be less liquid and more prone to default, when compared to other sectors. GHYB seeks to offer a more thoughtful way to access the high yield market in a low-cost, transparent ETF wrapper.”

The GHYB will be passively managed by GSAM’s Global Fixed Income team. The fund is the second ETF in GSAM’s Access ETF line-up, following Goldman’s Access Investment Grade Corporate Bond ETF.

Sage Advisory Introduces Custom Laddered Strategy

Sage Advisory Services, a fixed income investment management firm, has launched a new Customized Laddered Strategy (C.L.I.M.B.) designed to offer high liquidity, optimal risk/reward characteristics and favorable tax status.

Sage’s C.L.I.M.B strategy enables clients to set a maximum maturity range and realize consistent cash flows from maturity and coupon payments. In an effort to enhance return potential relative to traditional laddered strategies, Sage actively manages state, sector, and credit weightings within each maturity bucket. Additionally, Sage can provide a higher degree of liquidity to clients that encounter unexpected cash flow needs or would like to reallocate to a different asset class, the firm says.

Sage’s portfolio management team can adjust portfolio characteristics to maximize return opportunities for both institutional and retail clients, while reducing risk exposure when necessary.

C.L.I.M.B. offers an actively managed municipal ladder approach with a competitive fee structure, the ability to customize based on client’s unique investment objectives, and access to municipal bond inventory across all broker/dealers.

“Investment goals of both institutions and individuals have evolved as a result of changing market structure and regulatory oversight,” says Robert Smith, president and Chief Investment Officer at Sage. “Our goal with our new Customized Laddered Municipal Strategy was to offer a flexible investment solution that not only reflects changing investor needs, but also a simpler approach to traditional fixed income investing.”