Goldman Sachs Asset Management launches N-11 Equity Fund in the US
February 28, 2011
NEW YORK, February 28, 2011 – Goldman Sachs Asset Management International today announced the US launch of the Goldman Sachs N-11 Equity Fund (Class A shares: GSYAX), a long-only US mutual fund that invests in equity securities in the “Next Eleven” (N-11) countries including Bangladesh, Egypt, Indonesia, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam.1
“The Goldman Sachs N-11 Equity Fund allows US investors to access markets that together constitute the next set of large-population countries beyond the BRICs through a single equity investment,” said Jim O’Neill, Chairman of GSAM. “Driven by attractive demographics, rising income and increased domestic consumption, the N-11 countries could become significant contributors to global growth in the next decade and beyond.”
The “Next Eleven” (N-11) concept was established by Jim O’Neill and the Goldman Sachs Global Economics, Commodities, and Strategy Research Team in 2005 to identify fast-growing countries that could potentially follow the BRIC economies in having a major impact on the world. The N-11 already account for 19% of the world’s population, according to United Nations data from November 2010, and many of the countries also benefit from young populations.
The Goldman Sachs N-11 Equity Fund utilizes the MSCI GDP Weighted N-11 ex Iran Index to benchmark the Fund’s performance. This new benchmark is based on the current GDP of the N-11 countries.2
GSAM’s Global Emerging Markets Equity team, which consists of 27 investment professionals and is located in 7 key growth market locations, will manage the Fund. This team is part of the Fundamental Equity team, which has over 140 investment professionals located in ten global offices and oversees $68.63 billion in assets as of December 31, 2010.
In addition to Class A shares, the Fund is also offering Class C shares, both with $1,000 minimum initial investments. The Fund also offers Institutional Shares and Class IR shares.
Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages $840 billion as of December 31, 2010. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1989 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 financial services firm providing investment banking, securities and investment management services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
1 The N-11 countries are Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam. The Fund will not invest in issuers organized under the laws of Iran, or domiciled in Iran, or in certain other issuers as necessary to comply with U.S. economic sanctions against Iran. Only securities open to foreign ownership by U.S. investors are eligible for investment by the Fund.
2 The Fund’s performance benchmark is a MSCI custom index which is intended to be named the MSCI GDP Weighted N-11 ex Iran Index.
Goldman Sachs N-11 Equity Fund Risk Considerations
The Goldman Sachs N-11 Equity Fund invests primarily in a portfolio of equity investments that are tied economically to the “N-11 countries” or in issuers that participate in the markets of the N-11 countries: Bangladesh, Egypt, Indonesia, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam. The Fund will not invest in issuers organized under the laws of Iran, or domiciled in Iran, or in certain other issuers as necessary to comply with U.S. economic sanctions against Iran. The Fund is 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. Foreign and emerging market securities may be more volatile than investments in US securities and will be subject to the risks of currency fluctuations and sudden economic or political developments. Because the Fund will invest primarily in the N-11 countries, the Fund is subject to greater risk of loss as a result of adverse securities markets, exchange rates and social, political, regulatory or economic events which may occur in those countries. The N-11 countries generally have smaller economies or less developed capital markets than traditional emerging markets countries, and, as a result, the risks of investing in emerging market countries are magnified in these countries. The Fund may invest in equity swaps, equity index swaps, futures, participation notes, options, and other derivatives and structured securities to gain broad access to markets that may be difficult to access via direct investment in equity securities. Derivative instruments may involve a high degree of financial risk. These risks include the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, favorable or unfavorable, in the price of the derivative instrument; risk of default by a counterparty; and liquidity risk. 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. Securities of issuers held by the Fund may lack sufficient market liquidity to enable the Fund to sell the securities at an advantageous time or without a substantial drop in price. The Fund is “non-diversified” and may invest more of its assets in fewer issuers than “diversified” mutual 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.
To learn more about Goldman Sachs Funds, visit www.goldmansachsfunds.com. 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.
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.
© 2011 Goldman Sachs All Rights Reserved. Date of First Use: February 28, 2011 48487.MF.MED.OTU
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