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Liquidity Solutions: AMX offers all clients new access to a range of GSAM Money Market Funds

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Liquidity Solutions: AMX offers all clients new access to a range of GSAM Money Market Funds

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We discuss with Graham Whitworth from Goldman Sachs Asset Management (GSAM) how AMX has entered an innovative partnership with GSAM to offer clients access to a range of GSAM’s Money Market Funds (MMFs) at pre-negotiated rates.

 

AMX’s open-architecture investment platform has built a reputation with institutional investors for streamlining investment processes and delivering operational efficiencies. As well as seeking to improve transparency and strengthen governance, we are committed to helping investors control costs and enhance returns. Now we are in a position to offer clients liquidity solutions, at competitive rates, through an innovative partnership with Goldman Sachs Asset Management (GSAM). Cash balances are often an overlooked element of efficient portfolio management. For instance, as the recent FCA governance review concluded, insurers don’t think broadly enough about value and that includes failing to maximise the value of their cash balances. The default for many institutional investors is to leave cash with their custodians rather than seeking an alternative.

Cash balances are often an overlooked element of efficient portfolio management.

That may be a mistake because, in a low interest rate environment, some custodians are now charging a fee for balances over a set limit or in certain currencies. Yet negotiating and managing a new relationship to use a money market fund (MMF) can still seem like too much work for no real gain. It may even complicate reporting by adding another source of data to existing treasury management software.

 

The AMX alternative

 

At AMX, we are determined to change that perception and offer clients a real alternative. One that delivers market rates of return by investing in a diversified portfolio of high quality, short-term assets. To do that, we have entered an innovative partnership with GSAM to offer a range of their Money Market Funds to our clients at pre-negotiated rates through the AMX platform. GSAM is one of largest providers of liquidity solutions in the world, with more than $532bn in money market and short duration assets, including $134bn in EU MMFs1. AMX has worked with them since 2017, when they became one of the first MMF providers for our hedge fund clients. We are now pleased to have made a range of GSAM MMFs available for all our clients at pre-negotiated rates. The attraction for AMX of using the GSAM solution is not solely their global scale and ability to handle large cash flows in volatile markets. They also offer market leading credit analysis capabilities at a corporate level that aims to reduce counter-party risks. At the same time, their purchasing power helps to diversify portfolios across assets, regions and currencies. GSAM’s liquidity solutions, like AMX’s platform, are technology-driven to offer increased speed and efficiency of execution while avoiding manual errors. By using their MMFs with our automated cash-sweeping service, AMX clients can optimise the return on their cash balances. At the same time, they can maintain sufficient liquidity to comply with regulations (such as Solvency II), meet margin calls on a sameday basis and maximise trading opportunities.

GSAM’s liquidity solutions, like AMX’s platform, are technology-driven to offer increased speed and efficiency of execution while avoiding manual errors.

Meeting the growing ESG needs of our clients

 

An added benefit to using GSAM, in our view, is that they have applied ESG enhancements to their EUR, USD and GBP denominated LVNAV funds. The ESG enhancements are a combination of exclusionary screens, an engagement process for corporate issuers which is focused on board diversity, and integration of ESG factors within the investment process, including the incorporation of GSAM’s proprietary ESG scores as an element of portfolio construction. We believe this supports our aim of helping clients tasked with improving their own ESG credentials to meet their targets.

 

Summary of benefits

 

Here are five benefits for AMX clients who use our new range of GSAM MMFs through our platform:

  1. Capital preservation – GSAM and AMX share a common purpose when helping clients to manage their cash balances: that is, to keep them as safe as possible at all times.
  2. Liquidity – the GSAM MMF range maintains sufficient short-term liquidity to meet clients’ demands throughout the trading day, while avoiding regulatory breaches, even in volatile markets. No GSAM MMF has ever failed to satisfy a redemption request.
  3. Diversification – GSAM’s MMF range has the scale to maximise diversification across assets, regions and currencies, and so minimise risks.
  4. Yield – GSAM’s execution policies (combined with AMX’s pre-negotiated competitive fees) deliver returns that reflect market rates.
  5. Operational ease – by using technology to provide a seamless service and standardised reporting, GSAM and AMX reduce client costs while improving capital efficiency.

For more information please get in touch. 1 Firmwide AUM includes assets managed by GSAM and its investment advisory affiliates. Source: GSAM, 31 Dec 2020.    

 

GSAM MMF disclaimers

 

This material is provided at your request solely for your use.

The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

This document has been issued by Goldman Sachs International, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

 

Offering Documents


This material is provided at your request for informational purposes only and does not constitute a solicitation in any jurisdiction in which such a solicitation is unlawful or to any person to whom it is unlawful. It only contains selected information with regards to the fund and does not constitute an offer to buy shares in the fund. Prior to an investment, prospective investors should carefully read the latest Key Investor Information Document (KIID) as well as the offering documentation, including but not limited to the fund’s prospectus which contains inter alia a comprehensive disclosure of applicable risks. The relevant articles of association, prospectus, supplement, KIID and latest annual/semi-annual report are available free of charge from the fund’s paying and information agent and/or from your financial adviser.

 

Distribution of Shares


Shares of the fund may not have been registered or will not be registered for public distribution in a number of jurisdictions (including but not limited to any Latin American, African or Asian countries). Therefore, the shares of the fund must not be marketed or offered in or to residents of any such jurisdictions unless such marketing or offering is made in compliance with applicable exemptions for the private placement of collective investment schemes and other applicable jurisdictional rules and regulations.

 

Investment Advice and Potential Loss


Financial advisers generally suggest a diversified portfolio of investments. The fund described herein does not represent a diversified investment by itself. This material must not be construed as investment or tax advice. Prospective investors should consult their financial and tax adviser before investing in order to determine whether an investment would be suitable for them.
An investor should only invest if he/she has the necessary financial resources to bear a complete loss of this investment.

Investment Not Insured
Investment into the fund is not insured or guaranteed by any Government agency, including the Federal Deposit Insurance Company, and is not the same as placing funds on deposit with a bank or deposit-taking company. Although the Goldman Sachs money market funds seek to preserve a stable net asset value per share, it is possible to lose money by investing in the funds.

 

Public Debt CNAV funds:
Money Market Funds: The Funds are short-term public debt CNAV money market funds and investors should note (a) that a money market fund is not a guaranteed investment; (b) that an investment in a money market fund is different from an investment in deposits, including in particular because of the risk that the principal invested in a money market fund is capable of fluctuation; (c) that a money market fund does not rely on external support for guaranteeing liquidity or stabilising the Net Asset Value per Share; and (d) that the risk of loss of the principal is borne by the investor.

 

LVNAV Funds:
Money Market Funds: The Funds are short-term LVNAV money market funds and investors should note (a) that a money market fund is not a guaranteed investment; (b) that an investment in a money market fund is different from an investment in deposits, including in particular because of the risk that the principal invested in a money market fund is capable of fluctuation; (c) that a money market fund does not rely on external support for guaranteeing liquidity or stabilising the Net Asset Value per Share; and (d) that the risk of loss of the principal is borne by the investor.

 

Standard VNAV funds:
Money Market Funds: The Funds are standard VNAV money market funds and investors should note (a) that a money market fund is not a guaranteed investment; (b) that an investment in a money market fund is different from an investment in deposits, including in particular because of the risk that the principal invested in a money market fund is capable of fluctuation; (c) that a money market fund does not rely on external support for guaranteeing liquidity or stabilising the Net Asset Value per Share; and (d) that the risk of loss of the principal is borne by the investor.

 

Environmental, Social, and Governance (“ESG”) strategies may take risks or eliminate exposures found in other strategies or broad market benchmarks that may cause performance to diverge from the performance of these other strategies or market benchmarks. ESG strategies will be subject to the risks associated with their underlying investments’ asset classes. Further, the demand within certain markets or sectors that an ESG strategy targets may not develop as forecasted or may develop more slowly than anticipated.

 

This material is a financial promotion disseminated by Goldman Sachs Bank Europe SE, including through its authorised branches (“GSBE”). GSBE is a credit institution incorporated in Germany and, within the Single Supervisory Mechanism established between those Member States of the European Union whose official currency is the Euro, subject to direct prudential supervision by the European Central Bank and in other respects supervised by German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and Deutsche Bundesbank.

 

In the United Kingdom, this material is a financial promotion and has been approved by Goldman Sachs International, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

 

233703-OTU-1374275

 


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