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Goldman Sachs Investment Management Thrives on Performance

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Investment management

Goldman Sachs (GS) provides wealth and investment advisory services to help clients grow and preserve their financial assets. The company markets its products to institutions, high-net-worth individuals, and retail clients either directly or through a network of third-party distributors around the world.

The division generated 17.5% of the company’s total revenues, which stood at $6.0 billion in 2014 compared to $5.2 billion in 2012.

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Alternative offerings

Goldman Sachs manages client assets across a broad range of asset classes and investment strategies, including equity, fixed income, and alternative investments. The company’s alternative investments offerings include private equity, real estate, hedge funds, separately managed accounts, credit funds, currencies, commodities, and asset allocation strategies. The division’s other investment offerings include those managed on a fiduciary basis by portfolio managers, as well as strategies managed by third-party managers.

Product offerings of investments are in a variety of structures, mutual funds, private partnerships including separately managed accounts, and other commingled vehicles. The company’s solutions include identifying clients’ objectives, right fund allocation, portfolio construction, ongoing asset allocation, risk management, and investment realization. The company supplements investment advisory solutions for high-net-worth clients with wealth advisory services. The services include trust and estate planning, income and liability management, philanthropic giving, and tax planning.

Goldman Sachs’ assets under management stood at $757 billion of client assets as of June 30, 2015.

Below is a comparison of the company’s peers in asset management:

  • The Carlyle Group (CG): $193 billion
  • KKR & Co. (KKR): $98 billion
  • BlackRock (BLK): $4.72 trillion
  • Apollo Global Management (APO): $163 billion

Together, these companies form 1.36% of the Financial Select Sector SPDR ETF (XLF).

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