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MF Global Holdings Ltd. Exposure in Mutual Funds

November 3, 2011

Executive Summary 

  • On October 31, 2011, MF Global Holdings Ltd. (“MF Global”) filed for bankruptcy.
  • GSAM currently does not have any counter-party exposure to MF Global.
  • GSAM had minimal market exposure to MF Global. Below please find a summary of our current exposure across the GSAM mutual funds.

GSAM Fundamental Equity

  • As of September 30, 2011, we held a 25 basis point (bps) position in MF Global in our Goldman Sachs Small Cap Value Fund (“Fund”),1 a slight overweight relative to the Russell 2000 Value.2
  • By October 26, 2011, we sold our entire position in MF Global in this Fund. The impact on the portfolio’s performance was minimal.
  • We currently have no market exposure to MF Global in any of our other mutual funds.
     

GSAM Fixed Income

  • We currently have no market exposure to MF Global in our mutual funds.

GSAM Quantitative Investment Strategies

  • We currently have no market exposure to MF Global in our mutual funds.
     

 All information in this release is as of the date specified above unless otherwise noted.

 

 1 The Goldman Sachs Small Cap Value Fund is a US registered mutual fund. This should not be construed as an offering for this fund.

 2 FactSet. As of September 30, 2011. MF Global was a 14 basis point position in the Russell 2000 Value index.


Risk Considerations
All investing involves some degree of risk, whether it is associated with market volatility, purchasing power or a specific security. The equity markets are volatile, but not all stocks are equally volatile. Small and mid-size company stocks typically involve greater risk, particularly in the short term, than those of larger, more established companies.

Disclosures
This information is provided for informational purposes only. It is not an offer or solicitation to buy or sell any securities. Information is current as of the date of this material and may be subject to change.

Confidentiality
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.

For Non-US investors:
Please note that neither Goldman Sachs Asset Management International nor any other entities involved in the Goldman Sachs Asset Management (GSAM) business maintain any licenses, authorisations or registrations in Asia (other than Japan), except that it conducts businesses (subject to applicable local regulations) in and from the following jurisdictions: Hong Kong, Singapore, Malaysia, Korea, and India. This material has been issued or approved by Goldman Sachs Asset Management, L.P. (GSAM LP), in connection with its distribution in Canada. GSAM LP is registered as a portfolio manager under securities legislation in certain provinces of Canada, as a non-resident commodity trading manager under the commodity futures legislation of Ontario and as a portfolio manager under the derivatives legislation of Quebec. In other provinces, GSAM LP conducts its activities under exemptions from the adviser registration requirements. In certain provinces, GSAM LP is not registered to provide investment advisory or portfolio management services in respect of exchange-traded futures or options contracts and is not offering to provide such investment advisory or portfolio management services in such provinces by delivery of this material. This material has been issued for use in or from Hong Kong by Goldman Sachs (Asia) L.L.C, in or from Singapore by Goldman Sachs (Singapore) Pte. (Company Number: 198602165W), and in or from Korea by Goldman Sachs Asset Management Korea Co. Ltd. This material has been issued or approved in Japan for the use of professional investors defined in Article 2 paragraph (31) of the Financial Instruments and Exchange Law by Goldman Sachs Asset Management Co., Ltd. In the United Kingdom, this material is a financial promotion and has been approved by Goldman Sachs International, which is authorized and regulated in the United Kingdom by the Financial Services Authority. In Germany and Austria this document is presented to you by Goldman Sachs AG, regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). In France this document is presented to you by Goldman Sachs Paris Inc. et Cie, regulated by the Autorité de Marchés Financiers (AMF). In Switzerland this document is presented to you by Goldman Sachs Bank AG, regulated by the Eidgenössische Finanzmarktaufsicht (FINMA). In Ireland this document is presented to you by Goldman Sachs Bank (Europe) plc, regulated by the Central Bank of Ireland. In Italy this document is presented to you by Goldman Sachs International, Italian Branch, regulated by the Commissione Nazionale per le Società e la Borsa (CONSOB). In Spain this document is presented to you by Goldman Sachs International, Spanish Branch, with the address at Calle Maria de Molina, 6, planta 5, regulated and registered at Comision Nacional Del Mercado de Valores (CNMV) with number 28.


For US Investors:
The Russell 2000 Value Index is an unmanaged index of common stock prices that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The Index is unmanaged and the figures for the Index do not include any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.

 

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 (retail - 1-800-526-7384) (institutional – 1-800-621-2550). 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 the distributor of the Goldman Sachs Funds.
© 2011 Goldman Sachs. All Rights Reserved. 62324.STR.MED.OTU
Date of first use: November 3, 2011