Goldman Sachs Asset Management Launches Dynamic Allocation Fund
New Fund Aims to Take Asset Allocation to the Next Level by Dynamically Adapting to Evolving Markets
NEW YORK, February 2, 2010 – Goldman Sachs Asset Management, L.P. (GSAM) today announced the launch of the Goldman Sachs Dynamic Allocation Fund (Class A Shares: GDAFX) (the Fund). The Dynamic Allocation Fund is a risk-managed, global opportunities fund designed to help investors build wealth by seeking long-term capital appreciation, dynamic diversification across multiple asset classes, and the flexibility to reduce exposure during periods of extreme market disruption.
The Fund is managed by GSAM’s Quantitative Investment Strategies Group, the same portfolio management team that oversees the Goldman Sachs Asset Allocation Portfolios, the Goldman Sachs Absolute Return Tracker Fund and the Goldman Sachs Satellite Strategies Portfolio, all totaling $7.2 billion as of September 30, 2009. The Fund seeks to achieve its investment objective by investing primarily in underlying exchange traded funds (ETFs) as well as derivatives to access a more diversified set of asset classes, including global equities and fixed income, credit, emerging market debt and equity, TIPS and commodities.
“We developed the Fund as a flexible and diversified investment alternative to address investors’ concerns in these increasingly volatile markets,” said Katinka Domotorffy, CIO and Head of Quantitative Investment Strategies for GSAM. “Although traditionally diversified portfolios are a good start, we believe there is additional opportunity in today’s markets to manage portfolio volatility and enhance returns. Dynamic allocation is the next step in building better, more efficient portfolios that can help investors meet their goals.”
The Fund provides a multifaceted investment strategy that offers the following key features:
• Broad opportunity set — Less constrained than most funds, the Fund can access a highly diversified set of asset classes from which it can generate return potential.
• Dynamic risk management — The Fund seeks to manage the portfolio’s level of volatility more actively than is common in a traditional 60% equity / 40% fixed income fund. Adaptive to extreme market conditions, the Dynamic Allocation Fund can potentially move to less risky assets during periods of significant financial disruption with the ultimate goal of improving overall portfolio performance.
• Opportunistic approach — Global tactical asset allocation decisions based on our current market outlook are made at least monthly.
Designed to be an attractive addition to many different types of investment portfolios, the Fund can offer risk and capital diversification for portfolios heavily concentrated in equities with high risk profiles; attractive return potential for portfolios heavily concentrated in fixed income with low return profiles; and dynamic risk management for balanced portfolios that, while diversified, may have volatile risk outcomes. Ultimately, GSAM believes the addition of the Fund to an existing portfolio can potentially reduce risk and enhance returns of the overall portfolio.
The Fund is offered in A and C Shares, both with $1,000 minimum initial investments. The Fund also offers Institutional and R & IR Class Shares.
Goldman Sachs Funds, the mutual fund family of GSAM, offers individual and institutional investors a wide range of long-term investment choices among over 80 equity, fixed income, money market and hybrid funds. The family’s global line of offerings provides both core and satellite investments across different asset classes, investment styles, investment approaches and geographical regions.
Goldman Sachs Asset Management, L.P. is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages $871 billion as of December 31, 2009. Goldman Sachs Asset Management, L.P. 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 & Co. 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.
Andrea Raphael Goldman Sachs 212-357-0025
Melissa Daly Goldman Sachs 212-357-5296
Sergio Morales Weber Shandwick 212-445-8018
Goldman Sachs Dynamic Allocation Fund Risk Considerations
The Fund invests primarily in exchange-traded funds (“ETFs”), futures, swaps and other derivatives that provide exposure to a broad spectrum of asset classes, including but not limited to equities (both in U.S. and non-U.S. companies), fixed income (U.S. and non-U.S., investment grade and high yield) and commodities. 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; risk of default by a counterparty; and liquidity risk. The Fund’s equity investments are subject to market risk, which means that the value of its investments may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. The Fund’s fixed income investments are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. High yield, lower rated securities involve greater price volatility and present greater risks than higher rated fixed income securities. The Fund is subject to the risk that exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities. The Fund may also invest in foreign securities, including emerging markets 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 sudden economic or political developments. The Fund is non-diversified and may invest more of its assets in fewer issuers than diversified 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. Prospectuses containing more information are available online and may also be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling 800-526-7384. Please consider a Fund's objectives, risks, and charges and expenses, and read the prospectus carefully before investing. The prospectuses contain this and other information about the Funds.
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 © 2010 Goldman, Sachs & Co. All Rights Reserved. Date of First Use: January 21, 2010 30963.MF.OTU