Core investments provide a broad foundation comprising U.S. stocks, large cap international equities and global investment grade fixed income, while satellite investments such as emerging markets equity, high yield debt, and commodities provide diversification1 and the potential for higher return.
Combining satellite and core asset classes helps diversify your clients' investments. This can lead to potentially less volatility for your overall portfolio over time.
Historically, investors have been well-rewarded for participating in satellite asset classes over the long-term. As a result, we believe satellite investments are critical as investors seek to improve the probability of reaching specific financial goals.
What is the right combination of core and satellite investments? You can help make a determination based on your clients' financial goals, challenges and opportunities. Goldman Sachs Asset Management is here to assist with insights on core and satellite asset classes as well as implementation strategies, portfolio construction, and risk management.