GSAM Wins Lipper Fund Awards for the Second Consecutive Year
GSAM Wins Lipper Fund Awards for the Second Consecutive Year:
Best Mixed Asset-Large Overall Fund Family
Best Emerging Markets Debt Fund
New York, April 10, 2008 – For the second consecutive year, the mutual fund family of Goldman Sachs Asset Management (GSAM) is the recipient of U.S. Lipper Fund Awards in the categories of Best Mixed Asset - Large Overall Fund Family and Best Emerging Markets Debt Fund. There were 32 large fund groups and 46 emerging markets debt funds eligible for the respective awards, which are based on performance for the three-year period ended December 31, 2007. GSAM received the awards at the 2008 Lipper Fund Awards’ ceremony, an event that recognizes mutual funds that consistently deliver strong risk adjusted performance relative to peers.
“We are again honored to receive this recognition from Lipper for the long-term success of our Asset Allocation Portfolios, and the expertise of our Fixed Income and Quantitative Investment Strategies teams who have guided our Balanced Fund for over ten years,” said James McNamara, Managing Director and Head of U.S. Third Party Distribution. ”We also recognize our Fixed Income team for it’s expertise in managing our Emerging Markets Debt Fund. These six funds, part of more than 65 funds offered in the Goldman Sachs Family of Funds, represent the skill and dedication of all our managers in building better portfolios for our mutual fund clients.”
GSAM received the 2008 Best Emerging Markets Debt Fund Award based on the institutional share class performance of the Goldman Sachs Emerging Markets Debt Fund. GSAM received the 2008 Best Mixed Asset-Large Overall Fund Family award = based on the institutional share class performance of four risk-based Asset Allocation Portfolios: the Goldman Sachs Balanced Strategy Portfolio, the Goldman Sachs Equity Growth Strategy Portfolio, the Goldman Sachs Growth and Income Strategy Portfolio, and the Goldman Sachs Growth Strategy Portfolio, along with a fifth fund, the Goldman Sachs Balanced Fund, which is part of GSAM’s Specialty Funds group.
“With one of the longest track records in the lifestyle funds’ arena, our Asset Allocation Portfolios offer investors a complete, long-term investment strategy in one simple step,” McNamara commented.
The Goldman Sachs Asset Allocation Portfolios seek to deliver a comprehensive investment strategy, including diversification and risk management, forward-looking, quarterly rebalancing, simplicity and efficiency. Each portfolio is comprised of nine to sixteen underlying Goldman Sachs Funds managed by GSAM’s Quantitative Investment Strategies team, allowing retail investors access to the same quantitative asset allocation models that are available to institutional investors.
The ability of the Asset Allocation Portfolios to meet their objectives is directly related to the ability of the underlying funds to meet their objectives as well as the allocation among the Portfolios by the Investment Manager. An investment in the Asset Allocation Portfolios will involve not only the expenses of a Portfolio itself but a proportionate share of the expenses of the underlying funds (including operating costs and investment management fees).
The Goldman Sachs Balanced Fund, which combines the exposure of wealth-building opportunities found in stocks with the income preservation benefits of bonds, invests between 50% and 70% in equities that are considered to have capital appreciation and/or dividend paying ability, and at least 25% in fixed income, thereby potentially reducing the volatility associated with investing in a single market. The portfolio ranges may change over time and the strategy ranges and investments in each underlying fund may be changed from time to time.
The Balanced Fund invests in equity investments considered to have capital appreciation and/or dividend-paying ability and invests in fixed income securities. The Fund’s equity investments will be subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. Investments in fixed income securities are subject to the risks associated with debt securities including credit and interest rate risk. The Fund's balanced objective seeks to reduce the volatility associated with investing in a single market. There is no guarantee however, that market cycles will move in opposition to one another or that a balanced investment program will successfully reduce volatility.
The Emerging Markets Debt Fund's investments in fixed income securities are subject to the risks associated with debt securities including credit and interest rate risk. The majority of the countries in which the Fund invests have sovereign ratings that are below investment grade or are unrated. High yield, lower rated securities involve greater price volatility and present greater risks than higher rated fixed income securities. Fixed income securities of emerging countries are less liquid and are subject to greater price volatility and will be subject to the risks of currency fluctuations and sudden economic or political developments. The securities markets of emerging countries have less government regulation and are subject to less extensive accounting and financial reporting requirements than the markets of more developed countries. 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 is subject to concentration risk and it may subject the Fund to greater losses than if it were less concentrated in a particular country or region. The Fund is also subject to the risk that the issuers of sovereign debt or the government authorities that control the payment of debt may be unable or unwilling to repay principal or interest when due.
Goldman Sachs Asset Management (GSAM), offers individual and institutional investors a wide range of long-term investment choices, including more than 65 equity, fixed income and hybrid mutual funds and separately managed accounts. The family’s line of global products, created by 11 independent and distinct GSAM portfolio management teams and supported by over 500 investment professionals around the world1, provides both core and satellite investments across asset classes, investment styles, investment approaches and geographical regions.
Goldman Sachs Asset Management (GSAM) is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages more than $873 billion as of February 29, 2008. GSAM 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 leading global investment banking, securities and investment management firm.
To learn more about Goldman Sachs Funds, visit www.goldmansachsfunds.com. Prospectuses containing more complete 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.
1 As of 12/31/07
"Best Mixed Asset - Large Overall Fund Family" is for the three-year, risk-adjusted performance among 32 large fund groups for the period ended Dec. 31, 2007. Large fund groups with at least five equity, five bond, and three mixed asset portfolios that received Consistent Return scores as of Dec. 31, 2007, are eligible for an overall fund group award. Lipper determined the large fund group awards by averaging the decile rank of the three-year Consistent Return scores for all of the firm’s funds within the asset class, and the eligible group with the lowest average decile rank received the award for that asset class. In the case of a tie, the group with the lower average percentile rank received the award.
"Best Emerging Markets Debt Fund" is for the three-year risk adjusted performance among 46 eligible emerging markets debt for the period ended Dec. 31, 2007. Fund classification averages are calculated with all eligible share classes for each eligible classification. The calculation periods extend over 36, 60, and 120 months. The highest Lipper Leader for Consistent Return (Effective Return) value within each eligible classification determines the fund classification winner over three, five, or ten years.
Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. This is not an offer to buy or sell securities.
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.
Goldman, Sachs & Co., distributor of the Funds, is not a bank, and Fund shares distributed by Goldman, Sachs & Co. are neither deposits nor obligations of, nor endorsed, nor guaranteed by any bank or other insured depository institution, nor are they insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in the Funds involves risks, including possible loss of the principal amount invested.
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