GOLDMAN SACHS ASSET MANAGEMENT
A Commitment to Sustainability or a Missed Opportunity?
Goldman Sachs Asset Management has positioned itself as a leader in sustainable investing, emphasising its commitment to environmental, social, and governance (ESG) principles. However, recent regulatory actions have raised concerns about the authenticity of these claims.
In November 2022, the U.S. Securities and Exchange Commission (SEC) charged GSAM with failures in policies and procedures relating to two mutual funds and one separately managed account strategy marketed as ESG investments. To settle the charges, GSAM agreed to pay a $4 million penalty.
The SEC’s order found that, from April 2017 until February 2020, GSAM had several failures in policies and procedures regarding the ESG research its investment teams used to select and monitor securities. Specifically:
- Goldman Sachs International Equity ESG Fund: Launched on 28 February 2018, this fund was found to lack written policies and procedures for ESG research from its inception until June 2018. Even after establishing such policies, GSAM failed to consistently follow them before February 2020.
- Goldman Sachs Emerging Markets Equity ESG Fund: Launched on 31 May 2018, this fund faced similar issues concerning the absence and inconsistent application of ESG research policies and procedures.
- US Equity ESG Strategy: A separately managed account strategy that also suffered from the same deficiencies in ESG research policies and procedures during the specified period.
At Claim My Loss, we believe that if a firm markets its funds as sustainable, it has a duty to ensure that these claims are accurate and substantiated. Investors often accept higher fees and potentially lower returns to support ethical investments. If these funds fail to meet regulatory expectations, fund managers owe it to their clients to justify their sustainability credentials.
Why Should Investors Be Concerned?
- Transparency Issues: The SEC’s findings suggest that GSAM may have provided misleading information about its ESG investment processes, raising questions about the firm’s transparency.
- Potential Greenwashing: Misstatements about ESG practices could indicate greenwashing, where firms exaggerate or misrepresent their sustainability efforts to attract investors.
- Accountability to Investors: Investors who believed they were supporting sustainable goals may feel misled if their investments fail to align with these promises.
- Underwhelming Returns: If you accepted lower returns in good faith, believing your investment supported sustainable practices, you may feel that GSAM has a duty to justify its approach.
Have Goldman Sachs Asset Management’s Funds Changed?
Following the SEC’s action, GSAM has faced increased scrutiny over its ESG practices. While the firm has not publicly announced any rebranding or renaming of its funds, the regulatory actions have prompted a reassessment of its sustainability claims. Investors should remain informed about these developments and seek clarity on the genuine sustainability of these funds.
Your Rights as an Investor
If you invested in GSAM’s funds and believe the firm’s sustainability claims were misleading, you may have grounds for a claim. Key legal grounds include:
- Misrepresentation: If GSAM marketed funds as sustainable without substantiating these claims, this could fall under the Misrepresentation Act 1967.
- Breach of Contract: If fund documentation promised ESG compliance or sustainability metrics that were not delivered, this could constitute a breach of contract.
- Financial Losses: Many investors choose sustainable funds with the expectation of meaningful contributions to ESG goals. If these expectations were not met, you may have experienced financial and ethical losses.
How Claim My Loss Can Help
- Expertise: We specialise in mis-sold financial products and investment claims.
- Personalised Support: Our team provides tailored guidance throughout your claim.
- No Win, No Fee: You won’t pay us unless we win your case.
Start Your Claim Today
If you’ve invested with Goldman Sachs Asset Management and believe they have a duty to disclose their sustainability standards, don’t hesitate to act. Contact Claim My Loss today for a free consultation and take the first step towards reclaiming what’s rightfully yours.
Claim My Loss: Fighting for Financial Justice.
Company background (public record)
The company was incorporated at Companies House on 25 July 1996 under company number 03231764. Its status at Companies House is recorded as dissolved.
Registered office: Peterborough Court, 133 Fleet Street London, EC4A 2BB.
Nature of business (SIC): 6523.
Company timeline (public record)
Key dated events for this firm, drawn from public records. Each entry shows its source.
| Date | Event | Source |
|---|---|---|
| 25 Jul 1996 | Company incorporated | Companies House |
| 25 Jul 1996 | William David Lowndes appointed secretary | Companies House |
| 25 Jul 1996 | Paul Clive Deighton appointed director | Companies House |
| 25 Jul 1996 | Peter Savitz appointed director | Companies House |
| 09 Aug 1996 | Theodore Thomas Sotir appointed director | Companies House |
| 09 Aug 1996 | David Barker Ford appointed director | Companies House |
| 09 Aug 1996 | Gregory Kenneth Palm appointed director | Companies House |
| 12 Dec 1997 | William Anthony Jones appointed secretary | Companies House |
| 12 Dec 1997 | William David Lowndes resigned as secretary | Companies House |
| 27 Apr 1998 | Patrick Edmond Mulvihill appointed director | Companies House |
| 27 Apr 1998 | Peter Savitz resigned as director | Companies House |
| 18 Jan 1999 | Gregory Kenneth Palm resigned as director | Companies House |
| 23 Jul 1999 | Patrick Edmond Mulvihill resigned as director | Companies House |
| 18 Aug 1999 | David Wayland Blood appointed director | Companies House |
| 18 Aug 1999 | Stephen Charles Fitzgerald appointed director | Companies House |
| 15 May 2000 | Alexander Macintyre Marshall appointed secretary | Companies House |
| 15 May 2000 | William Anthony Jones resigned as secretary | Companies House |
| 04 Aug 2000 | Stephen Charles Fitzgerald resigned as director | Companies House |
| 19 Nov 2001 | David Barker Ford resigned as director | Companies House |
| 15 Jan 2003 | Paul Clive Deighton resigned as director | Companies House |
| 24 Jan 2003 | Stephen Davies appointed director | Companies House |
| 28 Nov 2003 | David Wayland Blood resigned as director | Companies House |
| 31 Oct 2004 | Michael Adam Goldman approved by the FCA at the firm | FCA Register |
| 15 Jan 2009 | Stephen Davies resigned as director | Companies House |
| 20 Feb 2009 | Shaun Anthony, Mr. Collins appointed director | Companies House |
| 05 Feb 2010 | FCA status recorded as: No longer authorised | FCA Register |
| 06 Jul 2010 | Company dissolved | Companies House |
| 05 Nov 2013 | Declared in default by the FSCS | FSCS |
Who was involved?
The following individuals are listed on public records in connection with the firm. These are matters of public record only and their inclusion does not imply any wrongdoing by any named person.
- Michael Adam Goldman. Listed on the FCA Register as having held Responsible for Insurance Mediation (14/01/2005 to 05/02/2010), CF29 Significant management (01/11/2007 to 05/02/2010), CF28 Systems and controls (01/11/2007 to 05/02/2010), CF11 Money Laundering Reporting (31/10/2004 to 05/02/2010) at the firm.
- Alexander Macintyre Marshall. Listed at Companies House as Active | secretary (appointed 2000-05-15).
- Shaun Anthony, Mr. Collins. Listed at Companies House as Active | director (appointed 2009-02-20).
- Theodore Thomas Sotir. Listed at Companies House as Active | director (appointed 1996-08-09).
- William Anthony Jones. Listed at Companies House as Resigned | secretary (appointed 1997-12-12, resigned 2000-05-15).
- William David Lowndes. Listed at Companies House as Resigned | secretary (appointed 1996-07-25, resigned 1997-12-12).
- David Wayland Blood. Listed at Companies House as Resigned | director (appointed 1999-08-18, resigned 2003-11-28).
- Stephen Davies. Listed at Companies House as Resigned | director (appointed 2003-01-24, resigned 2009-01-15).
- Paul Clive Deighton. Listed at Companies House as Resigned | director (appointed 1996-07-25, resigned 2003-01-15).
- Stephen Charles Fitzgerald. Listed at Companies House as Resigned | director (appointed 1999-08-18, resigned 2000-08-04).
Review page sources: FCA Register (FRN 313632) · Companies House (03231764) · FSCS. Public records, provided for transparency.
