NEW YORK – 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.
