Goldman Sachs Asset Management Launches New Real Return Solution in a Mutual Fund

  Goldman Sachs Asset Management Launches New Real Return Solution in a Mutual
  Fund

Business Wire

NEW YORK -- September 16, 2013

The expansion of central bank balance sheets around the globe has prompted
concerns about inflation. For investors, inflation has historically been a
complex issue to manage. This risk is meaningful because even a modest
increase in inflation can erode portfolio value. With the launch of the
Goldman Sachs Multi-Asset Real Return Fund (Class A Shares: GHRAX) (the
“Fund”), Goldman Sachs Asset Management, L.P. (“GSAM”) provides investors
access to a dynamic, multi-asset class solution that seeks to help individuals
achieve real return over inflation. The Fund provides exposure to
inflation-sensitive asset classes, including opportunistic fixed income,
commodities, and select equity sectors. This diversified strategy seeks to
perform well across most market environments, and specifically, seeks to
provide real return during periods of rising and high inflation.

“Protecting personal wealth through investing in strategies that deliver
consistent, real returns is central to many individual clients’ investment
objectives, and GSAM has nearly two decades of experience managing multi-asset
portfolios with this focus,” said Samantha Davidson, the Fund’s co-portfolio
manager. “The GS Multi-Asset Real Return Fund seeks to build upon this
experience and deliver an inflation-sensitive solution in a mutual fund format
to help investors position themselves for the medium- to long-term
environment.”

Samantha Davidson, Raymond Chan, and Chris Lvoff from GSAM’s Global Portfolio
Solutions (“GPS”) team are the Fund’s co-portfolio managers. As of June 30,
2013, GPS, GSAM’s multi-asset class team, currently manages over $20 billion
for a diverse set of clients globally.

“We continue to focus on meeting the needs of our clients, and
outcome-oriented solutions are a critical part of every individual’s portfolio
strategy,” said James McNamara, Managing Director and President of Goldman
Sachs Mutual Funds. “Unexpected inflation may pose a significant risk to
investors’ wealth, and the GS Multi-Asset Real Return Fund seeks to address
this threat.”

The Fund is offered in Class A and Class C Shares, both with $1,000 minimum
initial investments. It 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 oversees $955 billion in assets under
supervision as of June 30, 2013.^1 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.

                                    # # #

1. Assets Under Supervision (AUS) includes client accounts for which Goldman
Sachs does not have full discretion.

  Diversification does not protect an investor from market risk and does not
                               ensure a profit.

Fund Risk Considerations

The Goldman Sachs Multi-Asset Real Return Fund seeks long-term real return by
investing in inflation sensitive assets (i.e., investments that, in the
judgment of the Investment Adviser, are expected to perform favorably in
rising or high inflationary environments). The Fund invests primarily in a
portfolio of equity, fixed income and commodity asset classes (the “Underlying
Asset Classes”), including derivatives that provide exposure to the Underlying
Asset Classes. 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.
Investing in real estate investment trusts (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. The Fund may also invest in
fixed income securities, which are subject to the risks associated with debt
securities generally, including credit and interest rate risk. The Fund may
invest in non-investment grade securities, which involve greater price
volatility and present greater risks than higher rated fixed income
securities. The value of the Fund’s treasury inflation protected securities
(TIPS) generally fluctuates in response to inflationary concerns, and as
inflationary concerns decrease, TIPS become less valuable. Any guarantee on
U.S. government securities applies only to the underlying securities of the
Fund if held to maturity and not to the value of the Fund’s shares. Foreign
and emerging market investments may be more volatile and less liquid than
investments in U.S. securities and are subject to the risks of currency
fluctuations and adverse economic and political developments. Exposure to the
commodities markets may subject the Fund to greater volatility than
investments in traditional securities. The Fund’s investments in pooled
investment vehicles (including other investment companies, exchange-traded
funds, master limited partnerships (MLPs) and publicly traded partnerships
(PTPs)) subject it to additional expenses. Investments in 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. MLPs are also subject to risks relating
to their complex tax structure, including the risk that a distribution
received by the Fund from an MLP is treated as a return of capital, which may
increase the Fund’s tax liability and require the Fund to restate the
character of its distributions and amend shareholder tax reporting previously
issued, and the risk that an MLP could lose its tax status as a partnership,
resulting in a reduction in the value of the Fund’s investment in the MLP and
lower income to the Fund. Risks of PTPs may include potential lack of
liquidity and limitations on voting and distribution rights.

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 1-800-526-7384. 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 contain this and other
information about the Fund. To learn more, visit www.gsam.com.

Goldman Sachs does not provide accounting, tax, or legal advice.
Notwithstanding anything in this document to the contrary, and except as
required to enable compliance with applicable securities law, you may disclose
to any person the US federal and state income tax treatment and tax structure
of the transaction and all materials of any kind (including tax opinions and
other tax analyses) that are provided to you relating to such tax treatment
and tax structure, without Goldman Sachs imposing any limitation of any kind.
Investors should be aware that a determination of the tax consequences to them
should take into account their specific circumstances and that the tax law is
subject to change in the future or retroactively and investors are strongly
urged to consult with their own tax advisor regarding any potential strategy,
investment or transaction.

Views and opinions expressed are for informational purposes only and do not
constitute a recommendation by GSAM to buy, sell, or hold any security. Views
and opinions are current as of the date of this presentation and may be
subject to change, they should not be construed as investment advice.

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.

Goldman, Sachs & Co. is the distributor of the Goldman Sachs Funds.
© 2013 Goldman Sachs. All rights reserved. Date of First Use: September 12,
2013 Compliance Code: 108996.MF.MED.TMPL/9/2013

Contact:

Media:
Andrea Raphael, 212-357-0025
Ken Kerrigan, 212-445-8207
 
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