Following The Adviser Centre Monthly Review Meeting held on 21^st August 2019, we have added Goldman Sachs Emerging Markets Equity Portfolio to our Recommended list.

The co-portfolio managers of the fund, Basak Yavuz and Hiren Dasani, seek growth opportunities in emerging markets using a stock-driven process that considers opportunities from across the market cap spectrum.  Philosophically, they believe that opportunities are best captured using a valuation-focused approach and therefore they look for businesses with strong fundamentals that are trading at a discount to their view of intrinsic values.

In doing this, they work closely with their research teams, who are based in Goldman Sachs Asset Management offices around the world.  This local presence facilitates direct contact with company management, as well as supporting their research of less well-covered mid/small-cap stocks and off-benchmark stocks.  Their cash-flow focused stock analysis helps them to avoid overvalued stocks, as well as potential value traps.

The fund has distinct growth and quality characteristics and is most likely to thrive when company fundamentals are being appropriately rewarded.  By the same token, it is more likely to struggle when markets are driven by value/cyclical stocks and sectors.  As such, the fund is suited to investors with a long-term mindset who accept the vagaries of the market cycle and are content to allow the stock-picking credentials of the approach to shine through over time.