NEW YORK – Goldman Sachs Asset Management, L.P. (GSAM) today announced the renaming and the repositioning of the Goldman Sachs Balanced Fund as the Goldman Sachs Income Builder Fund (Class A Shares: GSBFX). The Fund’s new investment objective is to provide income and capital appreciation. The Fund seeks to meet this investment objective by investing in higher yielding bonds and higher dividend-paying stocks.
“Today’s low interest rate environment is driving investors to seek investments that offer attractive, consistent monthly income,” said Glen Casey, Global Head of Global Product Strategy and Development for GSAM. “Goldman Sachs Income Builder Fund is designed to access income opportunities across a broad set of asset classes. While the Fund is focused on high-quality stocks and high-yield bonds in industries that may be less susceptible to market cycles, its flexible mandate allows it to invest in non-traditional asset classes, including non-US securities, convertible bonds, preferred stock, REITs, and MLPs.”
The Fund employs a baseline allocation of 50% to fixed income securities and 50% to equity securities, with the flexibility to opportunistically tilt allocation up to 15% above or below the baseline toward either asset class. The Fund will now pay dividend and interest income monthly, and the Fund’s new benchmarks are the Russell 1000 Value and the BofA Merrill Lynch US High Yield BB-B Rated Constrained Index.
The fixed income portion of the Fund’s portfolio continues to be managed by GSAM’s Fixed Income team. The management of the equity portion has transitioned from the Quantitative Investment Strategies team to the Fundamental Equity team, which employs an active, bottom-up stock selection process.
The Fund is offered in Class A and Class C Shares, both with $1,000 minimum initial investments. The Fund 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 manages $836 billion as of June 30, 2012. 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.
