Goldman Sachs shut a Fund BRIC

Moscow. November 9. One of the world’s largest investment banks-Goldman Sachs had stopped in October, the Fund BRIC that have invested in Russia, Brazil, India and China.

The BRIC Fund is now included in the broader Fund that invests in stocks of emerging markets (Emerging Markets Equity Fund) in the framework of the efforts of Goldman Sachs portfolio optimization and “eliminating overlapping products,” according to the document sent to the Commission on securities and stock exchanges (SEC).

It notes that the Bank has taken the decision because it does not expect “significant growth in assets in the foreseeable future”.

In the opinion of management, Goldman Sachs, Union funds should attract investors because it expands the number of countries and investments.

The BRIC Fund has lost 21% since 2010 to 23 October, the last trading day prior to its inclusion in the broader Fund. Its assets at the end of September was $98 million versus a peak of $842 million, according to calculations made by Bloomberg.

Fourteen years later, after the ex-Goldman Sachs economist Jim O’neill invented the abbreviation BRIC, uniting Brazil, Russia, India and China and turned into a popular concept of investment, the largest emerging markets do not promise such a bright future. In Russia and Brazil went into recession, the economic growth of the PRC may be reduced to the lowest level since 1990, while India has significantly slowed down the speed of reforms.