Download VIT Multi-Strategy Alternatives Portfolio

Goldman Sachs
VIT Multi-Strategy
Alternatives Portfolio
Diversified Alternatives Exposure in a Single Portfolio
Investors may be seeking access to a broader set of potential opportunities to help diversify
traditional portfolios of domestic equity and core fixed income. This multi-strategy offering
provides access to a variety of non-traditional asset classes in a single fund.
Diversified Opportunities
Invests across various alternative
strategies, as well as non-traditional
asset classes such as global
infrastructure, real estate, and
commodities, through differentiated
investment styles and strategies.
Goal: Provide a packaged exposure
to the broader universe of alternative
and non-traditional asset classes to
potentially deliver long-term capital
appreciation and manage drawdowns
over time
Specialized Portfolio
Construction
Innovative Experience
Combines strategic asset allocation
and active top-down market views
across underlying strategies and
exposures. The ability to tactically
allocate among asset classes provides
flexibility to manage risks and seek
timely opportunities.
With a legacy in alternative investing
that goes back to 1969, GSAM is
one of the largest participants in
this market with over $150bn in
alternatives assets.1
Goal: Offer Variable Annuity investors
access to the experience and broad
capabilities of Goldman Sachs
Goal: Take advantage of a highly
dynamic and risk-aware approach
to portfolio management to provide
Variable Annuity investors access to
broader diversification
Non-Traditional Asset Classes Have Offered Differentiated Returns From Those of Core
Stocks and Core Bonds
Annualized Returns (%)
Alternatives
Real Assets
Core Equity
Core Fixed Income
1990–1994
1995–1999
2000–2004
2005–2009
2010–2015
Whole Period
Annualized Returns
13%
29%
22%
5%
15%
9%
9%
12%
8%
3%
13%
9%
8%
8%
5%
0%
4%
7%
0%
8%
-2%
0%
3%
6%
Non-traditional
Asset Classes
(Alternatives or Real
Assets) have
outperformed at least
one element of an
investor’s core portfolio in
69% (18 out of 26)
of years since 1990.
For Illustrative Purposes Only. January 1, 1990 to December 31, 2015. Source: GSAM, HFR Database © HFR, Inc. 2016, www.hedgefundresearch.com, PerTrac Indices Database, www.
standardandpoors.com, www.barcap.com, Bloomberg. Time frame is representative of multiple, full market cycles. Underlying Indices: Alternatives- HFRI Fund of Funds Composite
Index; Real Assets - Wilshire Real Estate Securities Index; Core Equity - S&P 500 Index; Core Fixed Income - Barclays U.S. Aggregate Bond Index. Returns shown do not reflect the past
or current performance for the Goldman Sachs VIT Multi-Strategy Alternatives (Portfolio) and is not indicative of future results for the Portfolio.
Past performance does not guarantee future results, which may vary. Diversification does not protect an investor from market risk and does not ensure a profit. Please see the
next page for index definitions.
VIT Multi-Strategy Alternatives Portfolio
Investor Profile
About Goldman Sachs Asset Management (GSAM)
• Gain exposure to a broad set
of alternative and non-traditional
investments in a single portfolio
• Leveraging the ideas and insights of Goldman Sachs, GSAM offers investment
expertise across a diverse set of regions, sectors and asset classes
This portfolio is for an investor that
seeks to:
• Access traditionally less tax
efficient strategies and asset
classes in a tax-deferred vehicle
• Capture active decision making
and leverage the broader resources
across GSAM
• A leading global asset manager, with over $1.12 trillion trillion in assets under
supervision and over 2,200 professionals located in 33 locations around the world*
• Extensive experience developing and implementing investment solutions across
asset classes, regions and the risk spectrum
• Experienced investment teams offer a broad range of competitive products across
asset classes, regions and the risk spectrum
• Provides customized, multi-asset class solutions and asset allocation expertise with
a team of over 115 dedicated GSAM professionals
1. In June 1997, The Goldman Sachs Group, Inc. acquired the assets and business of Commodities Corporation Limited. This group is now known as Goldman Sachs Hedge Fund
Strategies LLC.
*All data as of June 30, 2016 unless noted otherwise. Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not
have full discretion.
A drawdown is the peak-to-trough decline during a specific recorded period of an investment.
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.
The HFRI Fund of Funds Composite Index is an equal-weighted index of over 650 domestic and offshore constituent fund of funds that report assets in USD, provide Net of All Fees
returns on a monthly basis, and have at least $50 Million under management or have been actively trading for at least twelve (12) months. The Wilshire Real Estate Securities Index
is an unmanaged index of publicly traded REITs and real estate operating companies.The S&P 500 Index is the Standard & Poor’s 500 Composite Index of 500 stocks, an unmanaged
index of common stock prices. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC, a part of McGraw Hill Financial. The Barclays U.S.
Aggregate Bond Index represents an unmanaged diversified portfolio of fixed income securities, including U.S. Treasuries, investment-grade corporate bonds, and mortgagebacked
andasset-backed securities. It is not possible to invest in an unmanaged index.
Fund Risk Considerations
Equity securities are more volatile than bonds and subject to greater risks. Bonds are subject to interest rate, price and credit risks. Prices tend to be inversely affected by changes in
interest rates. Investors should also consider some of the potential risks of alternative investments: Alternative strategies may engage in investment practices that are speculative
and involve a high degree of risk. Such practices may increase the volatility of performance and the risk of investment loss, including the entire amount that is invested. Real Assets
are more volatile than bonds and subject to greater risks than equities. The Multi-Strategy Alternatives Portfolio invests primarily in affiliated variable insurance funds
and mutual funds (“underlying funds”) that provide exposure to liquid alternatives strategies and real assets. The Portfolio may also invest directly in other securities, including
exchange-traded funds (“ETFs”). The Portfolio is intended for investors seeking long-term growth of capital. Through its investments in the underlying funds and ETFs, the Portfolio
indirectly invest in equity securities, fixed income and/or floating rate securities, mortgage-backed and asset-backed securities, currencies, and restricted securities. In addition, the
Portfolio and certain underlying funds may invest in derivatives including futures contracts, swaps, options, forward contracts and other instruments.
The Portfolio is subject to the risk factors of the underlying funds in direct proportion to its investments in those underlying funds, and the ability of the Portfolio to meet its
investment objective is directly related to the ability of the underlying funds to meet their investment objectives, as well as the allocation among those underlying funds by the
Investment Adviser. An underlying fund is subject to the risks associated with its investments, including (as applicable) those associated with equity (including master limited
partnerships, real estate investment trusts and mid- and small-cap securities), fixed income (including non-investment grade securities, loans, mortgage-backed
and asset-backed securities), foreign and emerging countries, commodity and derivative investments generally. From time to time, the underlying funds in which the
Portfolio invests, and the size of the investments in the underlying funds, is expected to change. Because the Portfolio is subject to the underlying fund expenses as well as its own
expenses, the cost of investing in the Portfolio may be higher than investing in a mutual fund that only invests directly in stocks and bonds.
The investment program of the Portfolio is speculative, entails substantial risks and includes alternative investment techniques not employed by traditional mutual
funds. The Portfolio should not be relied upon as a complete investment program. The Portfolio’s investment techniques (if they do not perform as designed) may
increase the volatility of performance and the risk of investment loss, including the loss of the entire amount that is invested, and there can be no assurance that
the investment objective of the Portfolio will be achieved.
Shares of the Goldman Sachs Variable Insurance Trust—Goldman Sachs Multi-Strategy Alternatives Portfolio are offered to separate accounts of participating
life insurance companies for the purpose of funding variable annuity contracts and variable life insurance policies. Shares of the Portfolio are not offered directly
to the general public. The variable annuity contracts and variable life insurance policies are described in the separate prospectuses issued by participating
insurance companies. You should refer to those prospectuses for information about surrender charges, mortality and expense risk fees and other charges that may
be assessed by participating insurance companies under the variable annuity contracts or variable life insurance policies. Such fees or charges, if any, may affect
the return you realize with respect to your investments. Ask your representative for more complete information. Please consider the Portfolio’s objective, risks and
charges and expenses, and read the Prospectus carefully before investing. The Prospectus contains this and other information about the Portfolio.
A summary prospectus, if available, or a Prospectus for the Portfolio containing more information may be obtained from your authorized dealer
or from Goldman, Sachs & Co. by calling 1-800-526-7384. Please read the summary prospectus, if available, and the Prospectus, which contains
a portfolio’s objectives, risks, charges and expenses, and other information about the Portfolio, carefully before investing.
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 Variable Insurance Trust Funds. MSAPEFCT/8-16
© 2016 Goldman Sachs. All rights reserved. Compliance code: 51569-TMPL-10/2016-382351
NOT FDIC-INSURED
May Lose Value
No Bank Guarantee
Date of First Use: August 15, 2016.