Bestinvest says
This fund is designed for non-US investors who want to gain exposure to US dollars by investing in a money market fund. It has a maximum Weighted Average Maturity of 60 days, although this typically ranges at lower levels to ensure daily liquidity, and will only invest in individual securities with a maximum duration of 397 days. These maximum duration restrictions, coupled with other constraints on the fund, mean it qualifies as an Institutional Money Market Funds Association (IMMFA) member fund. It benefits from management of yield curve exposure and credit risk analysis by Goldman’s credit department.
The investment process for this fund is based on five stages. The first accounts for the core of the process and incorporates credit risk analysis conducted by the Goldman Sachs Credit Department, interest rate risk analysis and liquidity analysis. The next step in the process involves a weekly management team discussion on the strategy and portfolio composition of the fund as well as consideration of macroeconomic themes. At the third stage the optimum yield curve exposure is sought, incorporating liquidity issues and the strategic view. The Credit department then compiles an approved list of money market instruments that is continually monitored. Finally, the portfolio is constructed subject to credit and market liquidity constraints and will have a weighted average maturity of no more than 60 days although it will usually range between 30-50 days. The fund may invest in first tier government securities, commercial paper and floating and variable rate obligations, all of which will be denominated in US dollars. This will include debt issued by US companies, US Treasuries and US dollar denominated debt of non-US companies.