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Driving Global Growth:
Opportunities in Growth Markets
January 2013
Kathryn Koch
Goldman Sachs Asset Management
Question: True or false, the World can grow faster over the
next 10 years than it has over the last 10 years?
100%
A.
True
B.
False
0%
A.
B.
2
Goldman Sachs Asset Management
Executive Summary
We believe:
 Growth Markets will be the key drivers of global growth.
 Direct investment in both fixed income and equity markets is critical.
 Valuations are attractive.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. Please see
additional disclosures. For illustrative purposes only, and subject to change.
3
Goldman Sachs Asset Management
Redefining Emerging Markets
Goldman Sachs Asset Management
Redefining Emerging Markets:
An introduction to Growth Markets
~200 countries in the world1
Developed Markets2
Growth Markets
Emerging Markets
 High average income per capita
 Current global GDP share ≥ 1%
 Current global GDP share < 1%
 Advanced economic development
 Favorable demographics and rising
productivity
 Generally low GDP and income per
capita, but rapidly increasing in some
 Adequate market size and depth
 Scope for improvement
 Open and transparent markets
33 countries2
For example:
US, Japan, Germany, UK and other G7 countries
8 countries
160+ countries
For example:
For example:
For example:
BRICs (Brazil, Russia,
India & China)
South Korea, Mexico,
Indonesia and Turkey
Nigeria, Vietnam, Philippines, Iran, Egypt, Pakistan
and Bangladesh
Source: GSAM, “It is Time to Re-define Emerging Markets”, 31-Jan-11.
1 Source: CIA World Factbook, as of 31-Mar-12.
2 Consistent with the IMF’s definition of advanced economies, ex Korea. World Economic Outlook, Sept-12.
N-11
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Goldman Sachs Asset Management
We believe the Growth Markets will be 8 out of the top 10
contributors to global growth over the next decade
Contribution to Global GDP (2011-2020)1
60%
50%
40%
30%
20%
10%
Iran
Japan
Turkey
UK
Korea
Indonesia
Mexico
Brazil
Euro
zone
Russia
India
US
N-11
G7
China
BRICs
Growth
Markets
0%
Source: Global ECS Research, Global Economics Paper 208, “The BRICs 10 Years On: Halfway Through The Great Transformation”, as at 7-Dec-11.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or
investment advice. Please see additional disclosures..
1
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Goldman Sachs Asset Management
Question: What will be the largest growth driver in China
over the next decade?
88%
A.
Infrastructure spending
B.
Consumption
C.
Exports
9%
A.
3%
B.
C.
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Goldman Sachs Asset Management
The Growth Markets have favourable demographics
Median age and population under 25 years old1
Breakdown of World population (billions)1
40
Median age
1.6
37
# of people <25 yrs old
1.4
35
1.4
Growth
Markets
3.4bn
49%
1.2
25
1.0
People (billions)
Rest of
World
2.8bn
39%
Years
30
30
20
15
Other
N-11
0.8bn
12%
10
5
0.8
0.6
0.4
0.2
0
0.1
0.0
Growth
Markets
US
Growth
Markets
US
1
Source: UN Population Statistics, as of 2012.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.
Please see additional disclosures.
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Goldman Sachs Asset Management
Growth Markets have the essential growth conditions
in place
The Growth Environment Score



The Growth Environment Score (GES)1 is calculated every year by Goldman Sachs for over 180 countries.
It monitors productivity and sustainability of growth.
Scores range from 0-10 (where 0 is the worst and 10 is the best).
Macroeconomic
stability



Government
deficit
External debt
Inflation
Macroeconomic
conditions


Investment
rates
Openness of
the economy
Political
conditions



Corruption
indices
Rule of law
Political
stability
Technological
capabilities
Human capital


Life
expectancy
Educational
levels



Phone
penetration
Personal
computer
penetration
Internet
penetration
Microeconomic
Environment




Cost to start a
business
Urban
population
Patent
applications
Expenditures
on R&D
Source: Goldman Sachs Global ECS Research Global Economics Paper 211, “Our 2011 GES:A Sharper Signal for Growth”, as at 21-Mar-12.
The Growth Environment Scores (GES) are designed as a simple representation of the conditions necessary for convergence (i.e. catch-up growth) to occur. For an equivalent GES, less developed countries should
grow faster. Some simple regressions of growth on income per capita and the index suggest that one point on the index adds about 0.6% to a country’s growth rate, and there is also evidence that it increases the
convergence speed significantly. (Definition source: GS Global Economics Paper No:134 “How Solid are the BRICs? - Appendix 2: Measuring Conditions: How the GES is Compiled”, as at 1-Dec-05).
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.
Please see additional disclosures.
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Goldman Sachs Asset Management
Growth Markets have the essential growth conditions
in place
2011 Growth Environment Score
8
1997 - 2011 GES Change
7
1997 GES
6
2011 Developing Average
5
4
3
2
1
Growth markets
Nigeria
Pakistan
Banglade
sh
Egypt
Philippin
es
Iran
Vietnam
India
Indonesi
a
Turkey
Russia
Mexico
Brazil
China
South
Korea
0
Other N-11 countries
Source: Goldman Sachs Global ECS Research Global Economics Paper 211, “Our 2011 GES:A Sharper Signal for Growth”, as at 21-Mar-12.
The Growth Environment Scores (GES) are designed as a simple representation of the conditions necessary for convergence (i.e. catch-up growth) to occur. For an equivalent GES, less developed countries should
grow faster. Some simple regressions of growth on income per capita and the index suggest that one point on the index adds about 0.6% to a country’s growth rate, and there is also evidence that it increases the
convergence speed significantly. (Definition source: GS Global Economics Paper No:134 “How Solid are the BRICs? - Appendix 2: Measuring Conditions: How the GES is Compiled”, as at 1-Dec-05).
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.
Please see additional disclosures.
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Goldman Sachs Asset Management
Why increase your Growth and Emerging Markets
allocation?
Emerging Markets Exposure (% of total)
Most investors are underweight emerging markets today
40%
38%
35%
30%
25%
20%
20%
13-17%
15%
10%
0-6%
5%
0%
Institutional Investors
Ave Allocation to
EMD and EME¹
Portfolio Construction
Services (PCS) Optimized
EM Allocation²
EMD and EME %
of total Global
Market Cap³
Emerging Markets
% of Global GDP⁴
Source:
1 Investing in the Growth Market World - Strategy Series from the Office of the Chairman 12/2011.
2 GSAM’s Global Portfolio Solutions group optimized allocations: 13% EME and EMD as a % of total portfolio allocation, 16% EMD of total fixed income allocation or 17% EME of total
equity allocation as of 4/2012.
3 Towards an Alternative Fixed Income Benchmark - Monthly Insights from the Office of the Chairman 4/2012.
4 IMF 3/2012.
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Goldman Sachs Asset Management
Investment Implications:
Growth and Emerging Market
Equity
Goldman Sachs Asset Management
Growth and Emerging Market equity continues to evolve
18
Total market capitalization (LHS, USD trillions)
18000
16
Number of listed companies (RHS, thousands)
16000
14
14000
12
12000
10
10000
8
8000
6
6000
4
4000
2
0
2000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Capital market deepening has been driven by:
 New equity issuance provides opportunity to invest in small and mid cap companies
 Exponential growth in market capitalization can lead to improvements in market liquidity and depth
 Improving corporate governance provides transparency and accountability to investors
Data as of 12/31/11.
Source for total EM market cap: World Bank (based on MSCI EM index country membership 21 countries).
Source for number of companies: World Federation of Exchanges.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as
research or investment advice. Please see additional disclosures.
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Goldman Sachs Asset Management
BRICs + N-11 could comprise a much larger proportion of
global market capitalisation
Composition of World Equity Market Cap1
2010
2020
BRICs
+ N-11
23%
Developed
Markets (ex
US)
37%
Developed
Markets
(ex US)
29%
2030
BRICs
+ N-11
36%
Developed
Markets
(ex US)
22%
BRICs
+ N-11
46%
Other EM
8%
US
32%
US
27%
US
23%
Other EM
8%
Other EM
9%
Total World Equity Market Cap
= US$43 trillion
Total World Equity Market Cap
= US$83 trillion
Total World Equity Market Cap
= US$145 trillion
Source: “Global Economics Paper No: 204”, GS Global ECS Research. 8-Sep-10.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.
Please see additional disclosures..
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Goldman Sachs Asset Management
BRIC and N-11 equity markets have delivered superior riskadjusted returns over time
Last 10 years annualized returns (1-Apr-02 to 31-Mar-12)
Last 10 years Sharpe ratio (1-Apr-02 to 31-Mar-12)
18%
0.60
16%
0.57
15.9%
14.5%
0.50
14%
0.43
11.5%
12%
0.38
0.40
10%
0.30
8%
6.5%
0.20
6%
0.20
4%
2.7%
0.10
2%
0.02
0%
0.00
N-11 GDP
Proxy
Index *
MSCI BRIC
Index **
MSCI
MSCI Frontier MSCI World
Emerging Markets Index
Index **
Markets Index
(since
**
inception) ***
N-11 GDP
Proxy
Index *
MSCI BRIC
Index **
MSCI
MSCI Frontier MSCI World
Emerging Markets Index
Index **
Markets Index
(since
**
inception) ***
* Simulated GDP weighted index return calculated by weighting local country indices from Bloomberg with annual GDP from International Monetary Fund, World Economic Outlook Database, 30-Apr-11.
Excludes Iran. PLEASE NOTE THAT THESE RETURNS HAVE BEEN CALCULATED BY GSAM AND ARE NOT OFFICIAL INDEX RETURNS. THE RETURN SERIES IS SIMULATED AND MAY
DIFFER, PERHAPS SUBSTANTIALLY, FROM ANY RETURN SERIES THAT MAY BE PUBLISHED BY AN INDEX PROVIDER. SIMILARLY, THE METHODOLOGY USED TO CALCULATE THESE
RETURNS MAY DIFFER FROM THAT USED BY AN INDEX PROVIDER. Simulated performance is hypothetical and may not take into account material economic and market factors that would impact
the adviser’s decision-making. Simulated results are achieved by retroactively applying a model with the benefit of hindsight. Actual results will vary.
** Source: Bloomberg. Price return indices through 31-Dec-11.
*** MSCI Frontier Markets Index incepted on 31-May-02. annualized performance is shown since inception rather than for last 10 years. Source: Bloomberg. Price return indices through 31-Dec-11.
Sharpe ratio calculated using 3 month USD Libor as the risk free rate. annualized return for 1-Jan-02 to 31-Dec-11 equal to 2.36%. For MSCI Frontier Markets Index, annualized return for 1-Jun-02 to 31Dec-11 equal to 2.37%.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.
Past performance is not indicative of future results, which may vary.
16
Goldman Sachs Asset Management
Closing the gap: increasing EME allocation strategically
Potential investment options to shape today’s equity portfolios for the future
Existing EM
Current Emerging
Market Allocation
BRICs
N-11
Active Manager
Approach 1
Keep your existing EM manager and add N11 countries to diversify with key emerging
and growth markets
Approach 2
Invest in the BRICs & N-11 countries as
your diversified EM exposure to focus on
the 15 fastest growing economies
Approach 3
Keep your existing EM manager and add
an active manager with low correlation of
excess returns to potentially produce
superior risk-adjusted equity portfolios than
a single manager
Non-EM
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or
investment advice. Please see additional disclosures. For illustrative purposes only, and subject to change. Legal and regulatory prohibitions exist with regard to investments in Iran.
17
Goldman Sachs Asset Management
Sample Growth and Emerging Market Equity Allocations
Approach 1
EM Index + N-11 Equity Fund (75:25)
N-11, 25%
EM, 75%
Complements with exposure to the fastest
growing emerging markets.
Approach 2
BRIC + N-11 Equity Funds (70:30)
N-11, 30%
Approach 3
Multi-manager Implementation (50:50)
EM
Strategy
A, 50%
EM
Strategy
B, 50%
BRIC, 70%
Focuses on investing in the 15 most dynamic
growth and emerging economies
Combines active managers with low correlation
of excess returns to produce superior riskadjusted equity portfolios
There can be no assurance that the same or similar results can, or will be, achieved. This information is not intended to be used as a general guide to investing, or as a source of any
specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate
investment strategies depend upon the client’s investment goals, guidelines, and restrictions.
For illustrative purposes only and is not intended to market any GSAM product.
18
Goldman Sachs Asset Management
Question: How many of these are consumed every day in
Nigeria?
48%
A.
5,000
B.
500,000
C.
5,000,000
D.
50,000,000
42%
9%
0%
A.
B.
C.
D.
20
Goldman Sachs Asset Management
We believe current valuations provide an attractive cyclical
entry point for a robust secular growth opportunity
Forward Price-to-Earnings1
25
23
Forward price-to-earnings ratio
21
Developed Markets
Growth and Emerging Markets
Growth and Emerging Markets long term average
19
17
15
13
11
9
7
5
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1
Source: GSAM, IBES, Datastream as at 23-Oct-12. Shown for MSCI EM Index.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or
investment advice. Please see additional disclosures.
21
Goldman Sachs Asset Management
Investment Implications:
Growth and Emerging Market
Debt
Goldman Sachs Asset Management
Question: Which is the safest investment?
A.
An Exxon Mobil corporate bond
B.
A US 10 year treasury note
C.
An Indonesian 10 year sovereign
bond
D.
An Spanish 10 year sovereign bond
24
Goldman Sachs Asset Management
Growth and Emerging market fundamentals show a broad
picture of health
Government Debt
Fiscal Deficit
Current Account Balance
(% of GDP)
(% of GDP)
(% of GDP)
120
DM
EM
DM
108
0.8
0.0
100
EM
0.7
0.6
80
0.4
-1.0
60
0.2
-1.1
40
0.0
34
-2.0
-0.2
20
-0.4
0
-2.6
DM
EM
-0.6
-3.0
DM
-0.5
EM
Source: IMF and Haver, Data as at 01-Jan-2012
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or
investment advice. Please see additional disclosures.
25
Goldman Sachs Asset Management
Sovereign credit risk profile converging
Canada
France
Germany
Japan
2000
Today
Hungary
Netherlands
Belgium
Malaysia
UK
Italy
Poland
Mexico
US
Spain
Thailand
South Africa
Brazil
Turkey
Russia
AAA
AA
A
BBB
BB
B
CCC
UK
Belgium
Malaysia
Brazil
Hungary
Netherlands
US
Mexico
Turkey
Indonesia
Germany
Japan
Poland
Russia
Canada
France
Thailand
Italy
South Africa
Spain
Indonesia
Downgraded since 2000
Upgraded since 2000
Developed Market
Growth and Emerging Markets
For illustrative purposes only. Source: Bloomberg, S&P, GSAM. Countries rating reflected is foreign currency long term on Bloomberg. As of Aug 31, 2012.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as
research or investment advice. Please see additional disclosures. Past performance does not guarantee future results, which may vary.
26
Goldman Sachs Asset Management
Local Growth and Emerging Market rates remains
attractive by several metrics
Nominal yield differentials
Real yield differentials
10.0
EM Local Bond Real Yield
DM
JPMNominal
GBI Global
Yield
Index - YTM
5.0
9.0
8.0
4.0
Bond Yields (%)
Bond Yields (%)
Developed Bond Real Yield
6.0
JPMLocal
GBI-EM
GlobalYield
Index - YTM
EM
Nominal
7.0
6.0
5.0
4.0
3.0
2.0
1.0
3.0
2.0
0.0
1.0
0.0
Source: Bloomberg, as of 31-Jul-12
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
-1.0
Source: Bloomberg, GSAM, as of 31-Jul-12
 Local EM offers attractive real yields, whilst DM yields continue to hover at historically low levels.
Source: JP Morgan, Bloomberg. This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be
construed as research or investment advice. Past performance is not indicative of future results, which may vary. Please see additional disclosures.
27
Goldman Sachs Asset Management
Diversification away from the USD
Emerging market currencies have been appreciating, in line with economic growth,
while the US dollar has been in a secular and steady decline for the past decade
Growth of $100
300
EM Currencies*
US Dollar*
Ann. Return: +7.1%
June 30, 2012:
$232
250
US$
200
150
Jan 1, 2000: $100
100
50
Ann. Return: -1.8%
June 30, 2012: $80
0
Graph as of June 30, 2012. Source: Bloomberg, JP Morgan, Moody’s. Debt levels and fiscal data as of November 2011, Source: Moody’s
* US Dollar is represented by the DXY index, a proxy for the general international value of the US dollar (average of the exchange rates between the US dollar and major world
currencies). * EM Currencies is represented by the JPM ELMI+, an index of emerging market currencies, including Argentina, Brazil, Chile, China, Czech Republic, Egypt, Greece, Hong
Kong, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Philippines, Poland, Russia, Singapore, Slovak Republic, South Africa, Taiwan, Thailand, Turkey, and Venezuela. Past
performance does not guarantee future results.
28
Goldman Sachs Asset Management
Case study: Building a better global fixed income
benchmark
Barclays Global Sovereign Fiscal Strength index
Market Value Indices
Market capitalisationweighted bond indices
provide an unbiased
representation of the
investable opportunity set
They have served as a
cornerstone for portfolio
construction
1
GDP Weighting
2
Fundamental Tilts
GDP-weighted indices
moderate exposure to more
highly indebted countries in
DM
A thorough screen aimed at
capturing the financial
soundness and strength of
countries
GDP weighted indices assign
a higher weight to larger
economies
 Level of indebtedness
GDP weights are forward
looking and reflect future
opportunities
 Reliance on external
funding & exposure to
external shocks
3
Risk Weighted Tilt
Adjusting the weights to
account for the difference in
volatility between countries
 Change in indebtedness &
fiscal policy direction
DM
EM
9%
Sharpe: 0.69
23%
24%
Sharpe: 0.81
Sharpe: 0.82
25%
Sharpe: 0.84
A better beta for fixed income portfolios
Source: Barclays, IMF and GSAM calculations. Sharpe Ratios are calculated on the GSAM calculated index excluding China and India and are based on unhedged in USD returns. Sharpe Ratio are calculated over the
period Jun-05 to Jun-12. This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or
investment advice. Please see additional disclosures. Data is based on latest GSAM assumptions and calculations.
29
Goldman Sachs Asset Management
Executive Summary
We believe:
 Growth Markets will be the key drivers of global growth.
 Direct investment in both fixed income and equity markets is critical.
 Valuations are attractive.
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. Please see
additional disclosures. For illustrative purposes only, and subject to change.
30
Goldman Sachs Asset Management
Would this topic be useful for future IIMC PMG programs?
A. Absolutely
85%
B. Yes, but not as a top
priority as I can get this
information elsewhere
C. Yes, but only after other
portfolio management
topics are covered
D. No, thank you
5%
A.
B.
10%
0%
C.
D.
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Goldman Sachs Asset Management
Did the speaker meet your expectations for this topic?
A. Yes
100%
B. No
0%
A.
B.
34
Goldman Sachs Asset Management
Would you invite this speaker back for future IIMC
programs?
A. Yes
98%
B. No
2%
A.
B.
36
Goldman Sachs Asset Management
The information presented will impact my portfolio
development / management processes
A. Most definitely
59%
B. It may or may not depending
upon client circumstances
C. No, I have already factored this
information into my decisions
34%
D. I do not expect these factors to
influence my strategic portfolio
development or management
decisions
7%
0%
A.
B.
C.
D.
38
Goldman Sachs Asset Management
Would you like more information on this topic?
A. Webinar
41%
B. Conference Call
C. White Paper
D. Any of the above
25%
E. No, thank you
16%
13%
6%
A.
B.
C.
D.
E.
40
Goldman Sachs Asset Management
Appendix
Goldman Sachs Asset Management
Additional notes
This material has been prepared by GSAM and is not a product of the Goldman Sachs Global Investment Research Division. The views and opinions
expressed may differ from those of the Global Investment Research Division or other departments or divisions of Goldman Sachs and its affiliates.
Investors are urged to consult with their financial advisors before buying or selling any securities. This information may not be current and GSAM has no
obligation to provide any updates or changes.
Opinions expressed are current opinions as of the date appearing in this material only.
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.
The MSCI Frontier Markets Indices provide broad representation of the equity opportunity set across 31 countries while taking investability requirements
into consideration within each market.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of
emerging markets. The MSCI Emerging Markets Index consists of the following 21 emerging market country indices: Brazil, Chile, China, Colombia,
Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand,
and Turkey.
The MSCI BRIC Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the
following four emerging market country indices: Brazil, Russia, India and China
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of Morgan Stanley Capital
International Inc. (MSCI) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (S&P) and is licensed for use by Goldman Sachs. Neither
MSCI, S&P nor any other party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or
representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly
disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such standard or
classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling
the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits)
even if notified of the possibility of such damages.
42
Goldman Sachs Asset Management
Additional notes
Economic and market forecasts presented herein reflect our judgment as of the date of this presentation and are subject to change without notice. These
forecasts do not take into account the specific investment objectives, restrictions, tax and financial situation or other needs of any specific client. Actual
data will vary and may not be reflected here. These forecasts are subject to high levels of uncertainty that may affect actual performance. Accordingly,
these forecasts should be viewed as merely representative of a broad range of possible outcomes. These forecasts are estimated, based on
assumptions, and are subject to significant revision and may change materially as economic and market conditions change. Goldman Sachs has no
obligation to provide updates or changes to these forecasts. Case studies and examples are for illustrative purposes only.
Past performance does not guarantee future results, which may vary. The value of investments and the income derived from investments will
fluctuate and can go down as well as up. A loss of principal may occur.
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 (retail - 1-800-526-7384) (institutional – 1-800-621-2550). 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 contains this and other information about the Fund.
Goldman, Sachs & Co. is the distributor of the Goldman Sachs Funds.
© 2012 Goldman Sachs. All rights reserved.
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