October 11, 2012
NEW YORK, October 11, 2012 – Defined contribution plan sponsors face a daunting task in an uncertain economic environment: to help employees accumulate enough money for a secure retirement. A new fund from Goldman Sachs Asset Management, L.P. (“GSAM”) seeks to help sponsors meet this challenge. The Goldman Sachs Retirement Portfolio Completion Fund (Class A Shares: GRPOX) (“RPC” or the “Fund”) offers defined contribution plan sponsors and investors access to the diversifying non-traditional asset classes used by pension plans, in a single, daily valued mutual fund.
“Market volatility and low interest rates make it challenging for DC participants to establish a risk-managed investment portfolio,” said Phil Callahan, Managing Director, GSAM’s Retirement Services Group. “Goldman Sachs RPC shows that broader diversification and less crowded plan menus are not mutually exclusive. By combining a number of asset classes, RPC may also carry less risk and volatility than a number of its individual underlying asset classes.”
The Fund intends to gain exposure to inflation-linked government bonds, global real estate investment trusts, commodities, emerging markets equity, emerging markets sovereign credit, North American high yield corporate credit, and hedge fund industry beta (i.e., the component of hedge fund returns that is attributable to market risk exposure, rather than manager skill).
Fred Conley, Vice President and Head of Institutional Defined Contribution Sales, added, “The plan sponsors we talked to as we developed this fund were concerned about market volatility, low interest rates and potential inflation. They want to offer participants access to the same investments that many defined benefit plans use to address these risks. RPC is a solution that offers plan participants exposure to these non-traditional asset classes through one convenient investment option.”
Within the Fund, GSAM determines the allocation to each asset class and then employs a passive investment approach with respect to achieving exposure to most asset classes for efficiency and to reduce transaction costs. It is managed by the Quantitative Investment Strategies team of more than 60 investment professionals and 60-plus professionals dedicated to trading, information technology and the development of analytical tools.
The Fund’s performance benchmark is a composite of the S&P 500 Index (60%) and the Barclays US Aggregate Bond Index (40%). Additionally, GSAM created a proprietary Retirement Portfolio Completion Benchmark.
The Fund is offered in Class A and Class C Shares, both with $1,000 minimum initial investments. The Fund also offers 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 $836 billion as of June 30, 2012. 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.
Andrea Raphael Tel: 212-357-0025
Jason Weinzimer Tel: 212-445-8245
The Goldman Sachs Retirement Portfolio Completion Fund is designed to provide retirement investors of all ages with access to the following asset classes that are typically underrepresented in retirement savings portfolios (the “Underlying Asset Classes”): U.S. inflation linked government bonds, global real estate investment trusts (“global REITs”), commodities, emerging markets equity, emerging markets sovereign credit, North American high yield corporate credit and Hedge Fund Industry Beta (i.e., the component of hedge fund returns that is attributable to market risk exposure, rather than manager skill). Derivative investments are subject to the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement in the price of the derivative instrument; risk of default by a counterparty; and liquidity risk. The Fund’s over-the-counter transactions are subject to less government regulation and supervision than transactions entered into on organized exchanges. The market value of the Fund’s equity investments 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 fixed income investments are subject to credit, liquidity and interest rate risk, which may be heightened depending on the nature and credit quality of the instrument. The Fund’s inflation protected securities may become less valuable in response to decreased inflationary concerns. Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs whose underlying properties are concentrated in a particular industry or geographic region are also subject to risks affecting such industries and regions. The securities of REITs involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements because of interest rate changes, economic conditions and other factors. Exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities, and additional forms of regulation by the Commodity Futures Trading Commission. The Fund’s investments in other investment companies (including exchange-traded funds and money market funds) and publicly-traded partnerships (“PTPs”) subject it to additional expenses and risks, including dependence on manager skill. Risks of PTPs may include potential lack of liquidity and limitations on voting and distribution rights. The Fund may also invest in foreign and emerging market securities, which 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 or political developments. At times, the Fund may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all. The Fund is “non-diversified” and may be more susceptible than “diversified” funds to adverse developments affecting any single issuer held in its portfolio and to greater losses because of these developments.
The summary prospectus and prospectus for the Fund containing more information may be obtained from your financial advisor. Please consider the Fund’s objectives, risks, charges and expenses, and read the summary prospectus and/or the prospectus carefully before investing. The summary prospectus and the prospectus contain this and other information about the Fund. To learn more, visit www.gsam.com.
Goldman, Sachs & Co. is distributor of the Goldman Sachs Funds.
The Barclays US Aggregate Bond Index is owned by Barclays Capital and is used under license by Goldman Sachs Asset Management. The Goldman Sachs Retirement Portfolio Completion Benchmark is not sponsored, endorsed, sold, or promoted by Barclays Capital.
Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by Goldman Sachs Asset management. The "S&P 500®" is a product of S&P Dow Jones Indices LLC, and has been licensed for use by Goldman Sachs Asset Management. The Goldman Sachs Retirement Portfolio Completion Benchmark is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates.
The Goldman Sachs Retirement Portfolio Completion Benchmark is the property of Goldman Sachs Asset Management, which has contracted with S&P Dow Jones Indices LLC or its affiliates (“S&P Dow Jones”) to independently maintain and calculate the benchmark based on objective pre-agreed methodology. S&P Dow Jones shall have no liability for any errors or omissions in calculating the benchmark.
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.
Opinions expressed are current opinions as of the date appearing in this material only.
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