February 27, 2012
NEW YORK, February 27, 2012 – Goldman Sachs Asset Management, L.P. (GSAM) today announced that it has launched the Goldman Sachs Rising Dividend Growth Fund (Class A Shares: GSRAX) following the completion of the acquisition of the mutual fund management business of Dividend Assets Capital, LLC (formerly Dividend Growth Advisors, LLC). The new offering broadens GSAM’s mutual fund platform to include a rising dividend equity strategy.
“In today’s markets, many investors are looking for ways to increase income and build long-term wealth,” said Glen Casey, Managing Director and Head of Product Strategy and Development at Goldman Sachs Asset Management. “The Goldman Sachs Rising Dividend Growth Fund seeks to address these needs by owning companies that have the potential to grow dividends and also investing in energy Master Limited Partnerships (MLPs) that can provide a differentiated income stream.”
Dividend Assets Capital is the sub-adviser of the Goldman Sachs Rising Dividend Growth Fund. The investment objective of the Fund is to seek long-term growth of capital and current income. The Fund seeks to achieve its objective by investing in companies that pay consistent and increasing dividends, and through an allocation to MLPs.
“We believe good companies pay dividends, but great companies grow dividends,” added Troy Shaver, Portfolio Manager of the Goldman Sachs Rising Dividend Growth Fund. “To us, this means the companies that consistently grow and distribute profits to shareholders demonstrate their ability to generate earnings, manage risk and appreciate in value over time.”
The Fund employs a proprietary “10/10 test” designed to identify companies that pay dividends at an increasing rate that averages approximately 10% per year over a ten-year trailing period. The Fund seeks to generate additional income through an approximate 20% allocation to MLPs, which are typically energy or infrastructure companies. Investment in energy MLPs provides capital for funding energy infrastructure development projects and may allow the Fund to capitalize on the growing US demand and discovery of energy sources and supporting infrastructure.
The Fund is sub-advised by Dividend Assets Capital’s portfolio management team, which has over six decades of dividend investing experience. The integration of the $182 million Rising Dividend Growth Fund, which had a Four-Star Overall Morningstar rating as of 1/31/12 into the Goldman Sachs fund family was approved by Dividend Assets Capital Rising Dividend Growth Fund shareholders during a shareholder meeting on February 23, 2012. The Fund is now offered in Class A and Class C shares, both with $1,000 minimum initial investments, as well as Institutional, Class R and Class IR Shares.
Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages $821 billion as of December 31, 2011. 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.
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Andrea Raphael Tel: 212-357-0025
Jason Weinzimer Tel: 212-445-8245
The Goldman Sachs Rising Dividend Growth Fund invests primarily in equity investments of dividend-paying U.S. and foreign companies with market capitalizations of at least $500 million. 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 industry sectors and/or general economic conditions. Different investment styles tend to shift in and out of favor, and the Fund’s emphasis on companies with rising dividend payments could cause the Fund to underperform other funds that invest in similar asset classes but employ different investment styles. Investments in master limited partnerships (“MLPs”) are subject to certain risks, including risks related to limited control and limited rights to vote, potential conflicts of interest, cash flow risks, dilution risks, limited liquidity and risks related to the general partner’s right to force sales at undesirable times or prices. The securities of REITs and 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 (in the case of REITs, because of interest rate changes, economic conditions and other factors). REITs whose underlying properties are concentrated in a particular industry or region are also subject to risks affecting such industries and regions. The Fund may also invest in fixed income securities, which are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. Foreign securities and emerging country securities may be more volatile and less liquid than investments in U.S. securities and are subject to the risks of currency fluctuations and adverse economic and political developments. The Fund’s investments in other investment companies (including ETFs) subject it to additional expenses. The Fund is “non-diversified” and may invest more of its assets in fewer issuers than “diversified” funds. Accordingly, the Fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio and to greater losses resulting from these developments.
Dividends are not guaranteed and company’s future ability to pay dividends may be limited.
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 consider a fund's objectives, risks, and charges and expenses, and read the summary prospectus, if available, and the Prospectus carefully before investing. The summary prospectus, if available, and the Prospectus contains this and other information about the Fund. To learn more, visit gsam.com.
1As of 1/31/2012. Morningstar Risk-Adjusted Ratings: Large Blend Category - Class A Shares - Overall 4 stars out of 1576 funds, 3 Year 3 stars out of 1576 funds and 5 Year 5 stars out of 1385 funds. Morningstar Risk-Adjusted Ratings - The Overall Rating is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating Metrics. Morningstar, Inc. is an independent publisher of mutual fund research and ratings. Ratings reflect a fund’s risk-adjusted 3-, 5, and 10-year total returns, including any sales charge. A Fund is rated against all other funds in its category. 5 stars are assigned to the top 10%; 4 stars to the next 22.5%; 3 stars to the next 35%; 2 stars to the next 22.5%; and 1 star to the bottom 10%. Morningstar only rates funds with at least a 3-year history.
The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.gsam.com to obtain the most recent month-end returns.
Goldman, Sachs & Co. is distributor of the Goldman Sachs Funds.
Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may, without GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient.