August 22, 2012
NEW YORK, August 22, 2012 – Goldman Sachs Asset Management, L.P. (GSAM) today announced the renaming and the repositioning of the Goldman Sachs Balanced Fund as the Goldman Sachs Income Builder Fund (Class A Shares: GSBFX). The Fund’s new investment objective is to provide income and capital appreciation. The Fund seeks to meet this investment objective by investing in higher yielding bonds and higher dividend-paying stocks.
“Today’s low interest rate environment is driving investors to seek investments that offer attractive, consistent monthly income,” said Glen Casey, Global Head of Global Product Strategy and Development for GSAM. “Goldman Sachs Income Builder Fund is designed to access income opportunities across a broad set of asset classes. While the Fund is focused on high-quality stocks and high-yield bonds in industries that may be less susceptible to market cycles, its flexible mandate allows it to invest in non-traditional asset classes, including non-U.S. securities, convertible bonds, preferred stock, REITs, and MLPs.”
The Fund employs a baseline allocation of 50% to fixed income securities and 50% to equity securities, with the flexibility to opportunistically tilt allocation up to 15% above or below the baseline toward either asset class. The Fund will now pay dividend and interest income monthly, and the Fund’s new benchmarks are the Russell 1000 Value and the BofA Merrill Lynch U.S. High Yield BB-B Rated Constrained Index.
The fixed income portion of the Fund’s portfolio continues to be managed by GSAM’s Fixed Income team. The management of the equity portion has transitioned from the Quantitative Investment Strategies team to the Fundamental Equity team, which employs an active, bottom-up stock selection process.
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 Income Builder Fund seeks to provide income through investments in fixed income securities (bonds) and high dividend paying equities, preferred equities and other similar securities (stocks), and seeks to provide capital appreciation primarily through equity investments. The Fund’s investments in fixed income securities are subject to the risks associated with debt securities generally, including credit/default risk, interest rate risk, call risk, and extension risk. High yield, lower rated securities involve greater price volatility and present greater risks, including greater liquidity risk, than higher rated fixed income securities. The Fund’s equity investments will be 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 U.S. securities and will be subject to the risks of currency fluctuations and adverse economic or political developments. 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; the risk of default by a counterparty; and liquidity risk. Different investment styles tend to shift in and out of favor, and at times the Fund may underperform other funds that invest in similar asset classes. 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. 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 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.
Opinions expressed are current opinions as of the date appearing in this material only.
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