Pushing the performing products

With a humility not generally credited to Goldman Sachs – at least one continental bank is reluctant to go into deeper partnership with GSAM, because its representatives always claim to have the “perfect products” in every asset class – Mr Sotir admits that fixed income and quantitative equity products are currently being distributed because they are performing well. Other asset classes, such as global fundamental equities, where performance has suffered, need closer attention. “Our distribution teams are sizable and they need products to sell,” says Mr Sotir. This means diverting distributors whose clients are invested in poor performing funds into other products in the GSAM range. So salesmen need at least 10 product categories in the suitcase. “We will shift the distribution focus as the performance of our products naturally changes. The sales force will naturally move to those products demanded by the clients,” says Mr Sotir, whose key focus is to maintain upper quartile performance. “Fund managers are the artists of our business. A thoughtful and balanced approach is needed to give these artists space and time, but we need to be clear in terms of our goals and objectives. If these are not met over a certain time, then we need to take action,” says Mr Sotir. But staff at GSAM know that although Mr Sotir expects results, he is by no means a ruthless operator, and will listen to lower ranking colleagues at all times. Although there were concerns about productivity, Mr Sotir decided to leave it to the discretion of all workers as to which World Cup matches they watch during working hours, rather than making any blanket announcements, so as not to dampen morale.