Goldman Sachs Asset Management Launches GS Absolute Return Multi-Asset Fund

NEW YORK--()--Today, Goldman Sachs Asset Management (“GSAM”) announced the launch of the Goldman Sachs Absolute Return Multi-Asset Fund (Class A Shares: GARDX) (“The Fund”), which seeks to generate consistent, attractive returns that are less dependent on the direction of traditional markets. The Fund invests across multiple asset classes accessing investment ideas from across GSAM with a dynamic asset allocation approach to navigate changing markets.

“We aim to achieve consistent, attractive returns in all market conditions within an accessible mutual fund format”

“In a period of increased market volatility and uncertainty, investors are looking for ways to generate differentiated returns while managing portfolio losses. By leveraging the full breadth of the GSAM’s global expertise and experience, our Absolute Return Multi-Asset Fund seeks to provide investors with a powerful tool for navigating a changing market environment,” says Jim McNamara, Head of Global Third Party Distribution for Goldman Sachs Asset Management.

“We aim to achieve consistent, attractive returns in all market conditions within an accessible mutual fund format,” said Neill Nuttall, the Fund’s Co-Portfolio Manager. “We are focused on offering investors the opportunity to diversify into alternative sources of return while remaining nimble to capture investment opportunities. GSAM’s global presence, with over 700 investment professionals based in 33 locations worldwide, enables us to benefit from global perspectives and local market insights.”1

The Fund is managed by GSAM’s Global Portfolio Solutions group, the dedicated multi-asset investing team within the division. The team, which consists of over 95 professionals around the globe, has provided multi-asset class investment solutions to clients for more than 20 years and currently manages over $35 billion.2

The Fund is offered in Class A and Class C Shares, both with $1,000 minimum initial investments. It also offers Institutional, Class R, Class IR and Class R6 Shares.

GSAM’s Liquid Alternatives Center (www.gsamfunds.com/lac) provides advisors and investors with educational materials and tools that were specifically designed to help them effectively manage portfolios with allocations to liquid alternatives.

About Goldman Sachs Asset Management

Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages over $1 trillion as of June 30, 2015.3 Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

1 Assets under supervision (AUS) and members of team as of June 2015.
2 Global Portfolio Solutions AUS and tenure as of June 2015.
3 AUS includes assets under management and other client assets for which Goldman Sachs does not have full discretion.

A summary prospectus, if available, or a Prospectus for the Fund containing more information may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling 1-800-526-7384. Please read the summary prospectus, if available, and the Prospectus, which contains a fund’s objectives, risks, charges and expenses, and other information about the Fund, carefully before investing.

The Goldman Sachs Absolute Return Multi-Asset Fund seeks to achieve long-term absolute return through investment in different asset classes, geographic regions, and security selection strategies. The Investment Adviser employs global macro investment views in order to dynamically reallocate across asset classes, regions and strategies in response to changing market conditions. The percentage of the Fund’s portfolio exposed to any asset class or geographic region will vary from time to time, and the Fund may not be invested in each asset class at all times. At times the Fund may be heavily invested in certain asset classes or geographic regions, depending on the asset allocation of the strategy. Different investment styles (e.g., “growth”, “value” or “quantitative”) tend to shift in and out of favor, and at times the Fund may underperform other funds that invest in similar asset classes.

The Fund’s equity investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular sectors and/or general economic conditions. The securities of mid- and small-capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. The Fund’s investments in fixed income securities and loans are subject to the risks associated with debt securities generally, including credit, interest rate, liquidity, call and extension risk. The Fund may invest in non-investment grade securities, which involve greater price volatility and present greater risks than higher rated fixed income securities. Any guarantee on U.S. government securities applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund’s shares. Foreign and emerging market investments may be more volatile and less liquid than investments in U.S. securities and will be subject to the risks of currency fluctuations and adverse economic or political developments. At times, the Fund may be unable to sell certain of its illiquid investments without a substantial drop in price, if at all.

The Fund’s investments in pooled investment vehicles (including other investment companies, exchange-traded funds, master limited partnerships and publicly traded partnerships) subject it to additional expenses. The Fund also gains exposure to the commodities markets by investing in commodity index-linked structured notes and in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands (the “Subsidiary”). The Subsidiary primarily obtains its commodity exposure by investing in commodity-linked derivative instruments (which may include total return swaps, commodity (U.S. or foreign) futures and commodity-linked notes). The Subsidiary may also invest in other instruments, including fixed income securities, either as investments or to serve as margin or collateral for its swap positions. The Fund is subject to the risk that exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities. The Fund is subject to tax risk as a result of its investments in the Subsidiary and in commodity index-linked structured notes, as the Fund has not received a private letter ruling from the Internal Revenue Service (“IRS”) concluding that income and gains from such investments are “qualifying income.” The IRS has suspended granting such private letter rulings, and the Fund cannot rely on private letter rulings granted to other taxpayers. The tax treatment of investments in the Subsidiary and in commodity index-linked structured notes may be adversely affected by future legislation and/or IRS guidance. While the Fund has obtained an opinion of counsel regarding such investments, if the IRS were to successfully assert that the Fund’s income from such investments was not “qualifying income,” in which case the Fund would fail to qualify as a regulated investment company, the Fund would be subject to federal and state income tax on all of its taxable income at regular corporate tax rates with no deduction for any distributions paid to shareholders, which would significantly adversely affect the returns to Fund shareholders.

Derivative instruments may involve a high degree of financial risk, including the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument; the risk of default by a counterparty; and liquidity risk. The Fund may invest in derivatives (including foreign currency transactions) for hedging and non-hedging purposes. The Fund is also subject to the risks associated with short selling of securities, which involves leverage of the Fund’s assets and presents various other risks.

The investment program of the Fund is speculative, entails substantial risks and includes asset classes and investment techniques not employed by more traditional mutual funds. The Fund should not be relied upon as a complete investment program. There can be no assurance that the investment objective of the Fund will be achieved.

General Disclosures

Diversification does not protect an investor from market risk and does not ensure a profit.

Goldman, Sachs & Co., distributor of the Fund(s), is not a bank, and Fund shares distributed by Goldman, Sachs & Co. are neither deposits nor obligations of, nor endorsed, nor guaranteed by any bank or other insured depository institution, nor are they insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in the Funds involves risks, including possible loss of the principal amount invested. Compliance Code: 169179.MF.MED.OTU

Contacts

Media:
Goldman Sachs
Andrew Williams, 212-357-0005

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