April 4, 2011
NEW YORK, April 4, 2011 – Goldman Sachs Asset Management, L.P. (GSAM) today announced the launch of the Goldman Sachs High Yield Floating Rate Fund (Class A Shares: GFRAX) (the Fund), a portfolio of non-investment grade floating-rate loans and other variable-rate securities issued by US and foreign companies. The Fund’s investment objective is to seek a high level of current income.
“We believe floating-rate loans are appealing to investors because they combine relatively moderate price volatility with attractive income that rises along with interest rates,” said Rachel Golder, co-head of the High Yield and Bank Loan team and head of Corporate Credit Research for GSAM. “The Goldman Sachs High Yield Floating Rate Fund seeks to help investors navigate a changing interest rate environment by seeking to uncover what our team believes are the most attractive income opportunities relative to their risk within the non-investment grade loan market.”
Michael Goldstein, CFA, Lead Portfolio Manager of the Fund and co-head of the High Yield and Bank Loan team added, “The Fund is potentially a portfolio and fixed income diversifier, as floating-rate loans have historically posted lower correlations to other asset classes. Additionally, they rank as more senior in an issuer’s capital structure and tend to be higher in quality, implying lower default risk and higher recovery rates.”
GSAM’s Global Corporate Credit team, part of GSAM’s Global Fixed Income team, will manage the Fund. The Global Corporate Credit team will employ industry-leading research and risk management capabilities and incorporate the best investment ideas across the senior bank loan market.
With more than 40 investment professionals, the Global Corporate Credit team oversees $81.7 billion in credit assets as of December 31, 2010. The Global Fixed Income team, which oversees $299.6 billion in assets as of December 31, 2010, has more than 200 investment professionals located across the globe.
The Fund is offered in Class A and Class C shares, both with $1,000 minimum initial investments. The Fund also offers Institutional and Class R & 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.
The High Yield Floating Rate Fund invests primarily in domestic or foreign floating rate loans and other floating or variable rate obligations rated below investment grade. High yield, lower rated instruments involve greater price volatility and present greater risks than higher rated securities. The Fund may invest in loans directly or indirectly, by purchasing participations or sub-participations from financial institutions. Indirect purchases may subject the Fund to greater delays, expenses and risks than direct obligations in the case that a borrower fails to pay scheduled principal and interest. The Fund may also invest in fixed income instruments, regardless of rating. The Fund’s investments in loans and fixed income instruments are subject to the risks associated with debt instruments generally, including credit, liquidity and interest rate risk. The Fund may invest in securities of foreign issuers denominated in currencies other than the U.S. dollar and in securities of issuers located in emerging countries. The Fund’s foreign and emerging market investments may be more volatile and less liquid than its investments in U.S. securities and will be subject to the risks of currency fluctuations and sudden 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 may also engage in foreign currency transactions for hedging purposes (including cross-hedging) or for speculative purposes. Forward foreign currency exchange contracts are subject to the risk that the counterparty to the contract will default on its obligations. The Fund may make substantial investments in derivative instruments, including options, financial futures, swaps, options on swaps, structured securities and other derivative instruments. 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, unfavorable or favorable, in the price of the derivative instrument; risks of default by a counterparty; and the risks that transactions may not be liquid.
Diversification does not protect an investor from market risk and does not ensure a profit.
Summary prospectuses or prospectuses for the funds containing more information may be obtained from your financial advisor. Please consider a fund’s objectives, risks, charges and expenses, and read the summary prospectus and the prospectus carefully before investing. The summary prospectus and the prospectus contain this and other information about the fund. To learn more, visit gsam.com
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.
Copyright © 2011 Goldman Sachs. All Rights Reserved. Date of First Use: April 4, 2011 50199.MF.OTU
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