Fixed Income

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. 

Goldman Sachs Global Credit Portfolio (Hedged): Fund Characteristics

Investment Objective and Policy: The Portfolio seeks to provide income and capital growth over the longer term. The Portfolio will generally seek to hedge its currency exposure from its investments back to USD. There may however be active investment currency exposures in the Portfolio where the Investment Adviser seeks to generate return. The Portfolio promotes environmental and/or social characteristics, however, does not commit to making any sustainable investments. As part of its investment process, the Investment Adviser will implement a multi-strategy approach to ESG which may consist of the application of exclusionary screens and the integration of ESG factors alongside traditional factors. The Portfolio uses derivative instruments as part of its investment policy to gain exposure to, interest rates, credit and/or currencies in order to seek to increase return, to leverage the Portfolio and to hedge against certain risks. A significant proportion of the Portfolio's exposure may be generated through the use of derivative instruments. A derivative instrument is a contract between two or more parties whose value depends on the rise and fall of the underlying asset.

Shares in the Portfolio may be redeemed daily (on each business day) on demand. Income is rolled up into the value of your investment.

Type of Assets in Which Fund May Invest: The Portfolio will mostly invest in investment grade (or equivalent) fixed income securities of companies anywhere in the world. The Portfolio will not invest more than 33% of its assets in other securities and instruments. Additionally, it will not invest more than 25% in convertibles (securities that can be converted into other types of securities). These convertibles may include contingent convertible bonds (“CoCos”) of banks, finance and insurance companies which have a particular risk profile as set out below. The Portfolio may, under certain circumstances, have limited holdings in shares and similar instruments. It may also invest in fixed income securities issued by government entities.

Actively or Not Actively Managed Against Benchmark + Degree of Freedom from Benchmark: The Portfolio is actively managed and references the Bloomberg Capital Global Aggregate Corporate Bond Index (Total Return Gross) (USD-Hedged) (the “Benchmark”) for the purposes of setting discretionary internal risk thresholds and/or external risk thresholds which may reference deviations from the Benchmark. The Investment Adviser has full discretion over the composition of the assets in the Portfolio. While the Portfolio will generally hold assets that are components of the Benchmark, it can invest in such components in different proportions, and it can hold assets which are not components of the Benchmark. Therefore returns may deviate materially from the performance of the specified reference Benchmark.

SFDR: Article 8

Risk: The risk indicator assumes you keep the product for the Recommended Holding Period of 5 years. The actual risk can vary significantly if you cash in at an early stage and you may get back less. The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because the Portfolio is not able to pay you. We have classified this Portfolio as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a mediumlow level, and poor market conditions are unlikely to impact the Portfolio's capacity to pay you. Be aware of currency risk. In some circumstances, you may receive payments in a different currency, so the final return you will get depend on the exchange rate between the two currencies. This risk is not considered in the indicator shown above. Other Material Risks relevant to the Portfolio not included in the summary risk indicator are set out in the Prospectus. This product does not include any protection from future market performance so you could lose some or all of your investment. If the Fund is not able to pay you what is owed, you could lose your entire investment. Complete information on the risks of investing in the fund are set out in the fund’s prospectus.

Fees: The charges you pay are used to pay the cost of running the Fund, including the costs of marketing and distributing it. These charges reduce the potential growth of your investment. One-off charges taken before or after you invest: Entry Charge: We do not charge an entry fee, Exit Charge: We do not charge an exit fee for this product, but the person selling you the product may do so. Ongoing costs taken each year: Management fees and other administrative or operating costs: 0.49%, Transaction costs: 0.09%. Charges taken under certain specific conditions: Performance fee: none.

Goldman Sachs Emerging Markets Debt (Hard Currency): Fund Characteristics

Investment Objective and Policy: The Fund promotes environmental or social characteristics but does not have a sustainable investment objective. The Fund integrates ESG factors and risk in the investment process alongside traditional factors. Detailed information on the sustainability related disclosures of the Fund can be found in the Template Pre-contractual disclosure (annex of the prospectus) on https://www.gsam.com/responsible-investing/en-INT/non-professional/funds/documents. You can sell your participation in this fund on each (working) day on which the value of the units is calculated, which for this fund occurs daily. The fund does not aim to provide you with a dividend. It will reinvest all earnings.

Type of Assets in Which Fund May Invest: The fund invests in debt instruments (i.e. notes, bonds, certificates etc) denominated in currencies of economically developed and politically stable countries which are members of the OECD (Organisation for Economic Cooperation and Development). We invest in countries where we are able to assess specific political and economic risks and in countries that have undertaken certain economic reforms. The issuers of the debt instruments are mainly established in low and middle income developing countries (emerging markets). We invest in South and Central American (including the Caribbean), Central and Eastern European, Asian, African and Middle Eastern debt instruments.

Actively or Not Actively Managed Against Benchmark + Degree of Freedom from Benchmark: Measured over a period of several years, we aim to beat the performance of the benchmark JP Morgan EMBI Global Diversified. The benchmark is a broad representation of the investment universe. We actively manage the fund via country allocation, curve positioning and bond selection. The portfolio is diversified across countries and instruments. The portfolio composition can materially deviate from the benchmark.

SFDR: Article 8

Risk: The summary risk indicator is a guide to the level of the risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. This product does not include any protection from future market performance so you could lose some or all of your investment. Other Material Risks relevant to the Portfolio not included in the summary risk indicator are set out in the Prospectus. If the Fund is not able to pay you what is owed, you could lose your entire investment. We have classified this Fund as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a medium-low level, and poor market conditions are unlikely to impact the Fund's capacity to pay you. The actual risk can vary significantly if you cash in at an early stage and you may get back less. You may not be able to cash in early. You may have to pay significant extra costs to cash in early. Be aware of currency risk. You will receive payments in a different currency than the official currency of the Member State where the Fund is marketed to you, so the final return you will get depends on the exchange rate between the two currencies. The risk is not considered in the indicator shown above.

Fees: The charges you pay are used to pay the cost of running the Fund, including the costs of marketing and distributing it. These charges reduce the potential growth of your investment. One-off costs upon entry or exit: Entry Charge: 2.00% (max) of the amount you pay in when entering this Investment, Exit Charge: none. Ongoing costs taken each year: Management fees and other administrative or operating costs: 0.89%, Transaction costs: 0.06%. Charges taken under certain specific conditions: Performance fee: none.

Goldman Sachs Global Dynamic Bond Plus Portfolio: Fund Characteristics

Investment Objective and Policy: The Portfolio seeks to provide income and capital growth over the longer term. The Portfolio promotes environmental and/or social characteristics, however, does not commit to making any sustainable investments. As part of its investment process, the Investment Adviser will implement a multi-strategy approach to ESG which may consist of the application of exclusionary screens and the integration of ESG factors alongside traditional factors. The Portfolio uses derivative instruments as part of its investment policy to gain exposure to, interest rates, credit and/or currencies in order to seek to increase return, to leverage the Portfolio and to hedge against certain risks. A significant proportion of the Portfolio's exposure may be generated through the use of derivative instruments. A derivative instrument is a contract between two or more parties whose value depends on the rise and fall of the underlying asset.

Type of Assets in Which Fund May Invest: The Portfolio will mostly invest in publicly traded securities, currencies and financial derivative instruments, mostly in the global fixed income and currency markets. Cash and cash like instruments such as money market funds may also be held for temporary purposes to meet operational needs and to maintain liquidity or otherwise as the Investment Adviser sees fit. The Portfolio may invest in convertible (securities that can be converted into other type of securities). These convertibles may include contingent convertible bonds (“CoCos”) of banks, finance and insurance companies which have a particular risk profile as set out below.

Actively or Not Actively Managed Against Benchmark + Degree of Freedom from Benchmark: The Portfolio may give greater emphasis to sector allocation and security selection strategies as a proportion of its overall active strategies relative to Goldman Sachs Global Dynamic Bond Portfolio and Goldman Sachs Strategic Absolute Return Bond II Portfolio. The Portfolio is actively managed and references the ICE BofA 3month US T-Bill (the “Benchmark”) for the purposes of setting discretionary internal risk thresholds which may reference deviations from the Benchmark. The Investment Adviser has full discretion over the composition of the assets in the Portfolio. Therefore returns may deviate materially from the performance of the specified reference Benchmark

SFDR: Article 8

Risk: The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because the Portfolio is not able to pay you. We have classified this Portfolio as 2 out of 7, which is a low risk class. This rates the potential losses from future performance at a low level, and poor market conditions are very unlikely to impact the Portfolio's capacity to pay you. Be aware of currency risk. In some circumstances, you may receive payments in a different currency, so the final return you will get depend on the exchange rate between the two currencies. This risk is not considered in the indicator shown above. Other Material Risks relevant to the Portfolio not included in the summary risk indicator are set out in the Prospectus. This product does not include any protection from future market performance so you could lose some or all of your investment. If the Fund is not able to pay you what is owed, you could lose your entire investment.

Fees: The charges you pay are used to pay the cost of running the Fund, including the costs of marketing and distributing it. These charges reduce the potential growth of your investment. One-off charges taken before or after you invest: Entry Charge: none, Exit Charge: none. We do not charge an exit fee for this product, but the person selling you the product may do so. Ongoing costs taken each year: Management fees and other administrative or operating costs: 0.81%, Transaction costs: 0.26%. Charges taken under certain specific conditions: Performance fee: none.

Investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity, interest rate, prepayment and extension risk. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline in the bond’s price.  The value of securities with variable and floating interest rates are generally less sensitive to interest rate changes than securities with fixed interest rates. Variable and floating rate securities may decline in value if interest rates do not move as expected. Conversely, variable and floating rate securities will not generally rise in value if market interest rates decline. Credit risk is the risk that an issuer will default on payments of interest and principal. Credit risk is higher when investing in high yield bonds, also known as junk bonds. Prepayment risk is the risk that the issuer of a security may pay off principal more quickly than originally anticipated. Extension risk is the risk that the issuer of a security may pay off principal more slowly than originally anticipated. All fixed income investments may be worth less than their original cost upon redemption or maturity.

THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD BE UNAUTHORIZED OR UNLAWFUL TO DO SO.

Prospective investors should inform themselves as to any applicable legal requirements and taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant.

This material is provided for educational and informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. This material 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 objectives.

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. This material has been prepared by Goldman Sachs Asset Management and is not financial research nor a product of Goldman Sachs Global Investment Research (GIR). It was not prepared in compliance with applicable provisions of law designed to promote the independence of financial analysis and is not subject to a prohibition on trading following the distribution of financial research. The views and opinions expressed may differ from those of Goldman Sachs Global Investment Research 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 Goldman Sachs Asset Management has no obligation to provide any updates or changes.

The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or its securities. It should not be assumed that investment decisions made in the future will be profitable or will equal the performance of the securities discussed in this document.

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

Please note that for the purposes of the European Sustainable Finance Disclosure Regulation (“SFDR”), the product is an Article 8 product that promotes environmental and social characteristics. Please note that this material includes certain information on Goldman Sachs sustainability practices and track record, at an organizational and investment team level, which may not necessarily be reflected in the portfolio. Any ESG characteristics, views, assessments, claims or similar referenced herein (i) will be based on, and limited to, the consideration of specific ESG attributes or metrics related to a product, issuer or service and not their broader or full ESG profile, and unless stated otherwise, (ii) may be limited to a point of time assessment and may not consider the broader lifecycle of the product, issuer or service, and (iii) may not consider any potential negative ESG impacts arising from or related to the product, issuer or service. Please refer to the offering documents of any product(s) prior to investment, for details on how and the extent to which the product(s) takes ESG considerations into account on a binding or non-binding basis.

United Kingdom: In the United Kingdom, this material is a financial promotion and has been approved by Goldman Sachs Asset Management International, which is authorized and regulated in the United Kingdom by the Financial Conduct Authority.

In the European Union, this material has been approved by Goldman Sachs Asset Management Fund Services Limited, which is regulated by the Central Bank of Ireland.

This marketing communication is disseminated by Goldman Sachs Asset Management B.V., including through its branches (“GSAM BV”). GSAM BV is authorised and regulated by the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten, Vijzelgracht 50, 1017 HS Amsterdam, The Netherlands) as an alternative investment fund manager (“AIFM”) as well as a manager of undertakings for collective investment in transferable securities (“UCITS”). Under its licence as an AIFM, the Manager is authorized to provide the investment services of (i) reception and transmission of orders in financial instruments; (ii) portfolio management; and (iii) investment advice. Under its licence as a manager of UCITS, the Manager is authorized to provide the investment services of (i) portfolio management; and (ii) investment advice. Information about investor rights and collective redress mechanisms are available on am.gs.com/policies-and-governance. Capital is at risk. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law.