Goldman to Close BRIC Fund

BRIC investing has officially fallen out of favour.

Goldman Sachs (GS)’ asset management business has killed off its BRIC fund, concluding that it would not “experience significant asset growth in the foreseeable future.”

The powerful investment bank was the original champion of investing in Brazil, Russia, India and China, which became known as BRIC nations.

Goldman’s former chairman Jim O’Neill coined the “BRIC” acronym in 2001 and brought the world’s attention to strong growth potential in these large emerging markets. The acronym was later expanded to BRICS to include South Africa.

However, the promise of BRIC countries has faded as Brazil’s economy slumps, Russia struggles with low oil prices and international sanctions, and China’s economy slows after previously posting double-digit growth figures.

Goldman’s BRIC fund was created in June 2006 and experienced wild swings during the financial crisis in 2008 and 2009.

via CNN

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