Goldman Sachs launches fund that invests in corporate-credit asset classes

Goldman Sachs Asset Management, a unit of The Goldman Sachs Group Inc., has launched a fund designed to help investors take advantage of the fast-changing credit markets. The Goldman Sachs Credit Strategies Fund (XGCRX) will invest across various corporate-credit asset classes to pursue a total-return objective, comprising income and capital appreciation. “In this volatile environment, we believe active management and a flexible mandate should enable us to achieve strong risk-adjusted returns, benefiting from the current high-credit-spread environment,” said Gregg Felton, a managing director and global head of corporate credit at New York-based Goldman Sachs. The fund’s strategy, described as “unconstrained,” will involve allocating capital to the most attractive segments of corporate credit, including investment-grade, high-yield and convertible bonds. The closed-end interval fund, which is managed by an investment team, has a $25,000 minimum investment. Because the credit market includes securities that at times can be illiquid, the fund will limit redemptions. To provide liquidity to shareholders, the fund will make quarterly offers to repurchase between 5% and 25% of its outstanding shares at net asset value.