GS Global Equity Long Short Portfolio
Goldman Sachs AG
May 2015
Executive Summary
GS Global Equity Long Short Portfolio
Current Market Environment
With the equity markets at or near record highs, investors may desire a more cautious approach to
equity investing.
Solution
Our GS Global Equity Long Short Portfolio focuses on security selection to seek to maximize alpha, and
active downside management to control overall market exposure.
Alternatives Expertise
Our investment team has a long history extending back four decades and has managed a global
long/short strategy since 2008.
1
Portfolio Risk Considerations
GS Global Equity Long Short Portfolio
Market risk - the value of assets in the Portfolio is typically dictated by a number of factors, including the confidence levels of the market in
which they are traded.
Operational risk - material losses to the Portfolio may arise as a result of human error, system and/or process failures, inadequate procedures
or controls.
Liquidity risk - the Portfolio may not always find another party willing to purchase an asset that the Portfolio wants to sell which could impact
the Portfolio's ability to meet redemption requests on demand.
Exchange rate risk - changes in exchange rates may reduce or increase the returns an investor might expect to receive independent of the
performance of such assets. If applicable, investment techniques used to attempt to reduce the risk of currency movements (hedging), may not
be effective. Hedging also involves additional risks associated with derivatives.
Custodian risk - insolvency, breaches of duty of care or misconduct of a custodian or sub-custodian responsible for the safekeeping of the
Portfolio's assets can result in loss to the Portfolio.
Interest rate risk - when interest rates rise, bond prices fall, reflecting the ability of investors to obtain a more attractive rate of interest on their
money elsewhere. Bond prices are therefore subject to movements in interest rates which may move for a number of reasons, political as well
as economic.
Credit risk - the failure of a counterparty or an issuer of a financial asset held within the Portfolio to meet its payment obligations will have a
negative impact on the Portfolio.
Derivatives risk - derivative instruments are highly sensitive to changes in the value of the underlying asset that they are based on. Certain
derivatives may result in losses greater than the amount originally invested.
Counterparty risk - a party that the Portfolio transacts with may fail to meet its obligations which could cause losses.
Emerging markets risk - emerging markets are likely to bear higher risk due to lower liquidity and possible lack of adequate financial, legal,
social, political and economic structures, protection and stability as well as uncertain tax positions.
For more detailed information on the risks associated with an investment in the Portfolio, please refer to the section in the Prospectus entitled
“Risk Considerations” and discuss with your professional advisers.
2
Current Market Environment
Record High Equity Markets
MSCI World Index* Levels
2000
1800
1600
1400
1200
When the MSCI World reached the
1400-1600 range in 2000 and 2007,
investors were rightly concerned
about a market correction
But if an investor
had sold out of
equities when the
MSCI breached 1400
again, he would
have missed out on
27% in total return.
1000
800
600
400
200
0
During equity market peaks, investors may be concerned about the possibility of a market correction. But as
the market continues to test new highs, the opportunity cost of not being invested can be substantial.
Source: Bloomberg, GSAM as of February 2015.
* MSCI World index Net of withholding tax.
4
Decline in single stock correlations provides more opportunities
for stock picking and alpha generation
S&P 500 Single Stock Correlations1
0.8
0.7
Realized Correlation
0.6
0.5
0.4
0.3
0.2
0.1
0
3 Month
6 Month
12 Month
Source: Goldman Sachs Global Investment Research as of 12/31/2014.
1S&P 500 single stock correlations measured the average realized correlations between all of the underlying names in the S&P 500 index over 3 months, 6 months, and 12 months.
5
Solution: GS Global Equity Long Short Portfolio
Portfolio Terms
GS Global Equity Long Short Portfolio
Fund Name
GS Global Equity Long Short Portfolio
Inception Date
June, 2015
Vehicle
Luxembourg domiciled UCITS compliant SICAV fund
Portfolio Construction
Invests primarily in global equity markets, with focus on securities listed in North America and
European exchanges, through use of Long Short positions.
Target Volatility
7 - 9% (annual)
Target Return
3 month LIBOR + 6-8% (annual, net)
Liquidity
Daily
Minimum Investment
$5,000 for Base share class, $1,000,000 for I share class
Management Fee
Management Fee : 1% for Institutional share class, 1.75% for Base share class
Performance Fee
20%
As of 18/05/2015. Targets are subject to change and are current as of the date of this presentation. Targets are objectives and do not provide any assurance as to future results.
7
Why GS Global Equity Long Short Portfolio?

Strategies that focus on security selection and alpha generation have the ability to generate outperformance
during periods where equity returns are more muted and exhibit higher dispersion.

In addition, market uncertainty calls for a more prudent approach. Actively managing market exposure and
downside risk will be critical for successful equity investing.
Goal
Implementation
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Our investment team has a long history
extending back over four decades. The
Portfolio’s senior investment team has
worked closely together for over 10
years and has managed a global
long/short strategy since 2008. The
team has a global footprint with offices
in New York, London, Hong Kong and
Tokyo.
The Portfolio’s manager pursues high
conviction investments in global equity
markets, focusing on North America
and Europe. Investment ideas are
generated through fundamental,
bottom up research, and generally
based on secular changes that will
positively or negatively impact
companies. The manager seeks to
identify idiosyncratic investments with
asymmetric risk/return profiles and
identifiable catalysts.
The Portfolio’s manager actively
hedges the Portfolio’s long positions
against certain market and sector risks.
The manager also dynamically adjusts
the Portfolio’s exposure to the broad
equity markets, seeking to be less
exposed to broader equity market
moves.
Seeks to benefit from the team’s
long/short experience and global
insights.
Seeks to generate attractive
risk-adjusted returns.
Seeks to hedge market risk and limit
volatility.
The Portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.
8
GS Global Equity Long Short Portfolio
Pursuing Attractive Risk-Adjusted Returns through Stock Selection, Risk Management
and Market Views
Long
Stocks with:

High quality business models

Strong management teams

Substantial free cash flow generation

Attractive valuation

Identifiable catalysts that create value
A Portfolio of high conviction investment ideas, with active hedging and
dynamically managed with reduced market exposure
Short

Market hedges

Sector hedges

Select stocks
The Portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.
9
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Experienced, Global Investment Team
 Goldman Sachs Investment Strategies
(GSIS) manages a $5.6 billion1 global
opportunistic equity long/short
strategy launched in January 2008
 The team has a long history extending
back over four decades2
Global Co-Heads
Raanan Agus
 The GSIS team is led by Raanan
Agus and Kenneth Eberts, both
partners of Goldman Sachs, who each
have over 20 years of investing
experience
 The regional teams are led by Hideki
Kinuhata and Ryan Thall (Asia), Nick
Advani (Europe) and Kenneth Eberts
(US), all partners of Goldman Sachs
 The broader GSIS team of 50
professionals maintains a global
footprint with team members split
across the major investment regions
Kenneth Eberts
Regional Team Heads
Kenneth Eberts
US
23 Professionals
Nick Advani
Europe (LDN)
8 Professionals
Ryan Thall
Asia (HK)
6 Professionals
Hideki Kinuhata
Asia (Tokyo)
8 Professionals
Data as of April 2015.
1 Including private investments.
2 Please note that the global opportunistic equity long/short strategy was launched in January 2008 but its team members were previously part of Goldman Sachs Principal Strategies (GSPS).
10
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Investment Process
GSIS Investment Team
(50 professionals)
Senior GSIS Team
(Regional team heads and
global co-heads)
Global Co-Heads
(Raanan Agus and
Kenneth Eberts)
 Bottom-up Research
 Capital Allocation and Sizing of
Top Positions
 Ultimate Responsibility for
Portfolio
 Generation and Sourcing of
Investment Ideas
 Ongoing Review and Discussion
of the Portfolio
 Thematic Top-Down Ideas
 Initiation of Positions
 Portfolio Hedging
 Risk Management
Key forums to share information: weekly GSIS team calls, bi-weekly senior GSIS team calls, regional
weekly meetings, ad-hoc calls based on company/market specific events
For Illustrative Purposes Only. GSAM leverages the resources of Goldman Sachs & Co. subject to Chinese Wall restrictions.
Solution: GS Global Equity Long Short Portfolio
11
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Investment Strategy and Portfolio Construction
Investment Strategy

Pursuing attractive risk-adjusted returns through stock selection, risk management and market views

Creating a Portfolio of high conviction investment ideas, with active hedging and dynamically managed with reduced market exposure

Portfolio will focus on Long Short Equity and Event Driven strategies based on the fundamental research and analysis of the GSIS team

Investment ideas will be included in the Portfolio based on a minimum liquidity threshold driven by average daily trading volume and GSIS
internal liquidity levels (across all strategies that the GSIS team manages).

Annualized volatility is expected to be in the 7-9% range over the investment cycle
Portfolio Construction
GS Global Equity Long/Short Portfolio

We expect the net exposure to be between 0% and +50% of the Portfolio’s NAV (this does not include
certain hedges that reduce the Portfolio’s net exposure significantly)
Sector weights

There are no restrictions on sector weights, but we monitor our sector exposure very closely
Regional weights

We expect to have a focus on North America and Europe, subject to liquidity considerations
Positions

We expect to hold approximately 40-60 equity long positions
Shorts

Mostly market/sector hedges and select single name shorts (subject to UCITS regulation)
Position Size

We target a maximum long market value of 5-7% per position
Net exposure
Targets are subject to change and are current as of the date of this presentation. Targets are objectives and do not provide any assurance as to future results. Please see additional disclosures.
12
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Focus on Security Selection

Investment ideas are generated from the deep industry knowledge of the GSIS team1 and the top-down views
of the team’s leadership

Deep fundamental bottom-up research is at the core of every investment in the Portfolio

Leveraging the Goldman Sachs brand to get access to company management teams2

Team-based and opportunistic approach of the Portfolio seeks to drive allocations to the most attractive
investment opportunities
Sourcing

1
2
Idea Generation
Goldman Sachs
network2


Deep industry
contacts


Geographic focus

Industry focus
Major market
participants
Research

Bottom-up
fundamental research
Investment Execution

Long/short equity

Event Driven
Strong fundamental
research
GS Investment Strategies, LLC, the investment manager of the Funds, is a US-registered investment adviser and is a wholly-owned subsidiary of The Goldman Sachs Group, Inc.
GSAM leverages the resources of Goldman, Sachs & Co. subject to legal, internal and regulatory restrictions.
13
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Investment Philosophy

Seeking to identify secular changes in industries, markets and consumer behavior that will create winners and
losers among the impacted companies

Looking for investment opportunities with asymmetric risk/return profiles

Disciplined hedging of unwanted exposures1

Striving to build a Portfolio with active hedging and the goal to generate attractive performance in any market
environment

Targeting lower volatility than equity markets and low beta to equity markets

Seeking to manage the downside in large market moves
1
There is no guarantee that these objectives will be met. There can be no guarantee that the team will be successful in its hedging activities. The ability of the Portfolio to hedge successfully will
depend on the ability of the Portfolio’s investment manager to predict market movements, which is speculative and cannot be assured.
14
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Case Study – Healthcare Stock
Background:


This company is a stable, highly free cash flow generative
diversified global healthcare company comprised largely of
drugs, over-the-counter medications and medical devices.
We believe the company’s product portfolio can organically
grow revenues by mid single digits and earnings by 10-15%
on a sustainable basis.
Opportunity: Market continues to underestimate earnings
Consensus EPS estimates for 2015 and 2016 over time
16
14
12
Historical Mean 12/2015
Historical Mean 12/2016
10
8

Current CEO joined the company in 2008 when earnings
were expected to be well less than $1 per share vs current
market expectation of ~$14 in 2016.
6
4
2
0
2010
2011
2012
2013
2014
2015
Investment Thesis:

The business is run by a management team with a differentiated view on the broader healthcare industry.

We believe that management’s strong operational execution and aggressive capital deployment strategy will continue to drive positive
earnings revisions and outsized stock performance.

We believe that earnings power for the current business as well as the contribution from recently announced acquisitions are
underappreciated by the market.

Management is very focused on creating shareholder value and its compensation agreement aligns incentives with investors.

Risks: key man, company specific execution and sector rotation.
Source: GS Investment Strategies, LLC (GSIS), Bloomberg
For illustrative purposes only. Performance results vary depending on the client’s investment goals, objectives, and constraints. There can be no assurance that the same or similar results to those
presented above can or will be achieved.
15
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Case Study – Bank Stock
Background:

In 2007 this bank was one of the largest banking groups in
the world.

Majorly impacted by the global financial crisis, in 2009 this
bank required a government bail-out.

Over the past 5 years, this bank has significantly improved its
funding position, asset quality, and capital position. However
this has been at a heavy cost to shareholders.

As a result, investors have been very bearish on this
company.
Opportunity: Market is underestimating earnings power
Bank Stock
10%
55%
35%
Average of Top 20
European Banks
39%
42%
18%
Investment Thesis:

We believe the market is underestimating earnings power now that restructuring is coming to an end.

This bank is becoming a highly focused retail and commercial bank in one of the most attractive banking markets.

There are clear and specific opportunities for this bank to improve returns by increasing revenues, cutting costs, and optimizing the
balance sheet.

We believe this stock is trading at a meaningful discount to our estimate of intrinsic value.

Risks: Greater than expected costs of resolving legacy regulation and litigation; government intervention; general political risks
Source: GS Investment Strategies, LLC (GSIS)
For illustrative purposes only. Performance results vary depending on the client’s investment goals, objectives, and constraints. There can be no assurance that the same or similar results to those
presented above can or will be achieved.
16
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Case Study – Advertising Stock




This company owns and operates out-of-home (OOH)
advertising structures, primarily billboards. The company
sells 80% of its ad space to local small businesses, ensuring
a stable, diversified revenue base.
Over the past 100 years, the company has built dominant
market share in many small markets. In 80% of the
company’s markets, the company controls >80% share.
In 2014, after a protracted period of uncertainty, the company
converted into a REIT. Our initial investment hinged on
conviction that the IRS would allow the conversion.
Opportunity: Company FCF valuation versus REIT universe1
24.0
22.0
P/AFFO
Background:
2015e
2016e
20.0
18.0
16.0
14.0
12.0
10.0
Investors value the company at a significant discount to other
REITs and the market overall.
Investment Thesis:

We believe the market significantly underestimates the defensibility and growth trajectory of the company’s business model.

In an era of mobile/digital innovation, many investors anticipate secular decline for OOH spending. In reality, the OOH segment has started
to benefit from declining audiences for radio and TV and from cross-platform campaigns using online digital. GSIS tracks OOH trends
through proprietary surveys and we expect continued acceleration through 2015.

Market share and regulatory moat: The vast majority of the company’s billboards reside in municipalities that have banned new billboards and hence new competition. In many markets, the company is the only local option for OOH advertising, limiting price competition.

Growth from consolidation and digital conversions: Acquisitions may create significant value, as the company's low-cost operating structure
and superior local sales force improve margins and revenues for acquired billboards. Conversions to digital LED generate 30-50% ROICs.

We believe the company’s current ~5% dividend should grow 10% annually through at least 2018-2019.
Source: GS Investment Strategies, LLC (GSIS), Bloomberg
1 Each case valuations are reported net of expected dividends. For the Timber sector, CFO (cash from operations) is used in lieu of AFFO as timber REITs do not report AFFO figures. For all
sectors, the P/AFFO figures are displayed on a market-cap weighted-average basis. AFFO means per-share adjusted funds from operation, a common REIT measure of free cash flow
For illustrative purposes only. Performance results vary depending on the client’s investment goals, objectives, and constraints. There can be no assurance that the same or similar results to those
presented above can or will be achieved.
17
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Active Risk Management – Supplemental Information
GSIS has Historically Managed the Downside in Large Market Declines
Largest Equity Drawdowns
0%
-10%
-20%
-30%
-40%
-50%
Downcapture: 25%
Downcapture: 4%
Downcapture: 16%
Jan 08 - Feb 09
May 11 - Oct 11
Apr 10 - Jul 10
-60%
MSCI World
GSIS
For Illustrative Purposes Only.
Source: Bloomberg for MSCI World Index (MSCI World index Net of withholding tax ). Data shown for GS Global Opportunistic Equity Long/Short Strategy as of December 31, 2014. The data
shown is of a representative account, which is chosen as most representative of the GS Global Opportunistic Equity Long/ Short Strategy, is for informational purposes only and is not indicative of
future Portfolio characteristics/returns. Actual results may vary for each client due to specific client guidelines and other factors. Chart shows three largest drawdowns for MSCI World and
corresponding gross performance estimates of GS Global Opportunistic Equity Long/Short Strategy based on daily Profit and Loss since inception in January 2, 2008. There can be no guarantee
that the team will be successful in hedging activities. The ability of the GS Global Equity Long Short Strategy to hedge successfully will depend on the ability of the Portfolio’s investment manager to
predict market moves, which is speculative and cannot be assured. This information pertains to past performance. Past performance does not guarantee future results, which may vary.
The information presented above is Supplemental Information shown for illustrative purposes to be used in consideration with the Multi-Disciplinary Fundamental Strategies ex Sidepockets
composite presentation included in the Appendix. Views and opinions expressed are for informational purposes only and do not constitute a recommendation by GSAM to buy, sell, or hold any
security. Views and opinions are current as of the date of this presentation and may be subject to change, they should not be construed as investment advice.
18
Experienced, Global Team
Fundamental Stock Selection
Active Risk Management
Active Risk Management
The Team has Historically Actively Managed Net Market Exposure
Historical Net and Gross Exposures1
200%
150%
100%
50%
0%
-50%
-100%
1-Jan-08
1-Mar-08
1-May-08
1-Jul-08
1-Sep-08
1-Nov-08
1-Jan-09
1-Mar-09
1-May-09
1-Jul-09
1-Sep-09
1-Nov-09
1-Jan-10
1-Mar-10
1-May-10
1-Jul-10
1-Sep-10
1-Nov-10
1-Jan-11
1-Mar-11
1-May-11
1-Jul-11
1-Sep-11
1-Nov-11
1-Jan-12
1-Mar-12
1-May-12
1-Jul-12
1-Sep-12
1-Nov-12
1-Jan-13
1-Mar-13
1-May-13
1-Jul-13
1-Sep-13
1-Nov-13
1-Jan-14
1-Mar-14
1-May-14
-150%
Equity LMV
Equity SMV
Net Equity Exposure
1 LMV
= Long Market Value; SMV = Short Market Value; The data is in percentage of the NAV.
The model Portfolio provided herein has certain limitations. Such Historical Net and Gross Exposure model is hypothetical and does not represent actual trading, and thus may not reflect
material economic and market factors, such as liquidity constraints, that may have had an impact on the Adviser's actual decision-making. This model is shown for illustrative purposes only
and is representative of the GS Global Opportunistic Equity Long/Short Strategy. It does not purport to show the holdings or sector weightings of an actual account. This information is
shown for illustrative purposes only and does not constitute a recommendation of exposures for any client account. The exposures for the model Portfolio will differ from the exposures for a
client account because of specific client guidelines, objectives and restrictions.
19
Performance
Simulated performance of GSAM Daily Liquid Global Equity
Long/Short Strategy – Supplemental Information
Methodology and Details








The following page shows the simulated performance of a GSAM Daily Liquid Global Equity Long/Short Strategy
The simulated strategy consists of the long equity positions (North America, Europe and Asian ADRs) within the GSAM Global Opportunistic Equity
Long/Short Strategy with average daily trading volume of more than $50 million since inception
Note that the GSAM Global Opportunistic Equity Long/Short Strategy includes certain positions which are not included in the simulated performance for the
GSAM Daily Liquid Global Equity Long/Short Strategy due to the different liquidity profile (e.g., long equity positions in Asia, single-stock short positions, nonequity positions such as credit)
The short exposure of the simulated strategy consists of index hedges through equity index futures (S&P 500)
The simulated strategy assumes 0.65x leverage of the GSAM Global Opportunistic Equity Long/Short Strategy (note that we assume lower leverage since the
simulated strategy would be less diversified and is subject to leverage restrictions under the UCITS rules) and the net exposure of the simulated Strategy
tracks the net exposure of the GSAM Global Opportunistic Equity Long/Short Strategy
Maximum position size is 5% of long market value
Simulated strategy is rebalanced on a daily basis
Returns are gross of management fee, incentive fee, expenses and transaction costs
Differences between simulated performance and actual performance experience
Note that the simulated performance shown herein is not reflective of the actual performance history of a GSAM Daily Liquid Global Equity Long/Short Strategy
managed for clients by the GSIS Team. The simulated performance has been adjusted in an effort to reflect some of the assumed impact of a GSAM Daily Liquid
Global Equity Long/Short Strategy and has many inherent limitations. Specifically, the data presented are subject to significant assumptions:

For the simulated strategy, we assume hedging using S&P 500 futures only, but a GSAM Daily Liquid Global Equity Long/Short Strategy could also include
other hedging instruments

For the simulated strategy, we assume that the net exposure exactly tracks the net exposure of the GSAM Global Opportunistic Equity Long/Short Strategy
and assume 0.65x leverage, but GSAM Daily Liquid Global Equity Long/Short strategy will experience tracking error with regard to net exposure and leverage

The simulated strategy does not include certain discretionary non-single stock positions (e.g., long index options) and certain product types (e.g., options,
currency forwards, ETF) that could be added to a GSAM Daily Liquid Global Equity Long/Short strategy

The simulated strategy assumes daily rebalancing but a GSAM Global Equity Long/Short Strategy would potentially be rebalanced less frequently
While we believe that the assumptions used to generate the simulated performance are reasonable, other assumptions may also be reasonable, and different
assumptions would result in materially different historical information. If any of the assumptions used in the simulated performance do not prove to be true, results
may vary substantially from the examples shown. There can be no assurance that a GSAM Global Equity Long/Short Strategy will or is likely to achieve an
investment history record similar to the one shown in this presentation.
As of December 30, 2014. For discussion purposes only. The information presented above is Supplemental Information shown for illustrative purposes to be used in consideration with the Fundamental
Strategies ex Asia composite presentation included in the Appendix. Simulated performance results do not reflect actual trading and have inherent limitations. No representation is made that a client will
achieve results similar to those shown. These performance results are simulated based on an analysis of past market and realized data with the benefit of hindsight, do not reflect the performance of any
GSAM product and are being shown for informational purposes only. The returns are gross and do not reflect the deduction of management fees.Past performance does not guarantee future results,
which may vary. Please see composite performance in the appendix for additional information and important disclosures. For discussion purposes only. This information is provided on the
basis that it will not constitute investment advice and will not form a basis for any investment decision.
21
Simulated performance of GSAM Daily Liquid Global Equity
Long/Short Strategy – Supplemental Information
Gross returns
2014
2013
2012
2011
2010
2009
2008
Volatility
Ann.
Return
Beta
Simulated performance
of GSAM Daily Liquid
Global Equity
Long/Short Strategy1
11.34%
25.12%
4.39%
-5.64%
3.46%
24.59%
-10.22%
8.60%
6.83%
0.30
GSAM Global
Opportunistic Equity
Long/Short Strategy2
17.46%
19.51%
-1.72%
2.98%
7.55%
35.05%
-15.56%
8.90%
8.25%
0.16
MSCI World Index
(with dividends, net of
withholding tax)
4.94%
26.68%
15.83%
-5.54%
11.76%
29.99%
-40.71%
18.24%
3.27%
HFRI3 Equity Hedge
1.87%
14.26%
7.42%
-8.38%
10.45%
24.57%
-26.65%
9.50%
2.09%
As of December 30, 2014. For discussion purposes only.
1 The simulated performance presented above is Supplemental Information shown for illustrative purposes to be used in consideration with the Fundamental Strategies ex Asia composite presentation
included in the Appendix. Note that this composite has only been in existence since October 2014. Therefore, we believe that the simulated performance can be helpful information for investors.
2. The composite returns presented here are taken from the fully GIPS® compliant Multi-Disciplinary Fundamental Strategies ex Sidepockets composite presentation included in the Appendix.
3. HFRI and HFRX and related indices are trademarks and service marks of Hedge Fund Research, Inc. ("HFR") which has no affiliation with GSAM. Information regarding HFR indices was obtained from
HFR’s website and other public sources and is provided for comparison purposes only. HFR does not endorse or approve any of the statements made herein.
All calculations were made in USD. Simulated performance results do not reflect actual trading and have inherent limitations. No representation is made that a client will achieve results similar to those
shown. These performance results are simulated based on an analysis of past market and realized data with the benefit of hindsight, do not reflect the performance of any GSAM product and are being
shown for informational purposes only. The returns are gross and do not reflect the deduction of management fees, which will reduce returns.
Past performance does not guarantee future results, which may vary. Please see composite performance in the appendix for additional information and important disclosures.
For discussion purposes only. This information is provided on the basis that it will not constitute investment advice and will not form a basis for any investment decision.
22
Appendix
Simulated beta1 of GSAM Daily Liquid Global Equity
Long/Short Strategy – Supplemental Information
1.00
0.90
3yr rolling beta of GS Global Opportunistic Equity Long/Short Strategy (2)
3yr rolling beta of GS Daily Liquid Global Equity Long/Short Strategy (3)
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
As of December 30, 2014. For discussion purposes only.
1. Beta is estimated to MSCI World Index
2. The composite returns presented here are taken from or are Additional Information to the fully GIPS® compliant Multi-Disciplinary Fundamental Strategies ex Sidepockets composite
presentation included in the Appendix.
3. The simulated performance presented above is Supplemental Information shown for illustrative purposes to be used in consideration with the Fundamental Strategies ex Asia composite
presentation included in the Appendix. Note that this composite has only been in existence since October 2014. Therefore, we believe that the simulated performance can be helpful information
for investors.
Inception for Beta data starts Dec 2010 because 3 year rolling beta is shown.
24
Past performance does not guarantee future results, which may vary. For discussion purposes only. This information is provided on the basis that it will not constitute investment
advice and will not form a basis for any investment decision.
Simulated performance of GSAM Daily Liquid Global Equity
Long/Short Strategy – Supplemental Information
$200
GSAM Global Opportunistic Equity Long/Short Strategy (1)
GSAM Daily Liquid Global Equity Long/Short Strategy (2)
MSCI World
$180
$160
$140
$120
$100
$80
$60
$40
$20
$0
2008
2009
2010
2011
2012
2013
2014
As of December 30, 2014. For discussion purposes only.
The graph shows the growth of $100 if it was invested on 01/01/2008.
1 The performance presented above is Supplemental Information shown for illustrative purposes to be used in consideration with the Multi-Disciplinary Fundamental Strategies ex Sidepockets composite
presentation included in the Appendix
2.The simulated performance presented above is Supplemental Information shown for illustrative purposes to be used in consideration with the Fundamental Strategies ex Asia composite presentation
included in the Appendix. Note that this composite has only been in existence since October 2014. Therefore, we believe that the simulated performance can be helpful information for investors.
3 All calculations were made in USD. Simulated performance results do not reflect actual trading and have inherent limitations. No representation is made that a client will achieve results similar to those
shown. These performance results are simulated based on an analysis of past market and realized data with the benefit of hindsight, do not reflect the performance of any GSAM product and are being
shown for informational purposes only. The returns are gross and do not reflect the deduction of management fees, which will reduce returns.
Past performance does not guarantee future results, which may vary. Please see composite performance in the appendix for additional information and important disclosures.
For discussion purposes only. This information is provided on the basis that it will not constitute investment advice and will not form a basis for any investment decision.
25
Investment Leadership
Raanan Agus
Managing Director, Co-Head of Goldman Sachs Investment Partners
Raanan joined the firm in 1993 as an associate in Equities Arbitrage. Following that role, he co-headed the GS
Principal Strategies group in the Securities Division in 2003, and later became head of the group until the end of
2007. He was named managing director in 1999 and partner in 2000. Raanan earned an AB from Princeton
University in 1989 and a JD/MBA specializing in finance from Columbia University in 1993.
Kenneth Eberts
Managing Director, Co-Head of Goldman Sachs Investment Partners
Ken joined the firm in 1989 as an analyst in the Investment Banking Division and worked in the Real Estate and
Financial Institutions Groups. From 1992 to 1998, he worked on the Equity Derivatives desk and then moved to
the GS Principal Strategies group in 1998. He was named managing director in 2001and partner in 2004. Ken
earned an AB in Quantitative Economics and History from Stanford University in 1989.
26
Multi-Disciplinary Fundamental Strategies Ex-Sidepockets (Institutional)
Returns
As of:
December 31, 2014
Risk Metrics
Gross Rate of Return (%)
Net Rate of Return (%) [2]
Standard Deviation - Composite (%) [5]
8.25
5.13
8.90
Years
2008
(15.56)
(17.04)
2009
35.05
2010
Portfolio Metrics
Assets
Dispersion (%) [3]
No. of Portfolios
End of Period Assets (MM)
Percent of Firm Assets [4]
N/A
N/A
<5
4,985
0.78
30.32
N/A
N/A
<5
5,300
0.75
7.55
4.56
11.12
N/A
<5
7,117
1.07
2011
2.98
0.96
6.90
N/A
<5
6,767
1.04
2012
(1.72)
(3.43)
5.09
N/A
<5
5,120
0.75
2013
19.51
14.68
5.49
N/A
<5
3,230
0.43
2014
17.46
12.36
7.25
N/A
<5
2,785
0.33
Annualized
Since Inception [1]
[1] Composite inception date: 01/01/2008. Returns for periods of less than one year cannot be annualized. Where applicable, annual performance for up to 10 years is presented. Additional performance information is available upon request. Currency used to express end of period assets
and composite performance: USD.
[2] The composite net of fee returns are calculated based on the application of the highest applicable fee rate listed in the Form ADV, Part II schedule or internal product fee schedule applicable to the prospective investor type. As the standard fees include a performance based fee, the net
return was calculated based on assumptions as to how the rate would be applied. Performance fee was calculated assuming the performance fee was based on gross absolute returns (after subtraction of base fees) accruing on a monthly basis with payment of the performance fee on an
annual basis. These returns do not represent actual net returns. Actual net returns could vary significantly depending on the fee terms and performance for any individual client. Please note that historical presentations may have also differed due to application of alternative fee
methodologies. Additional information regarding the alternative performance fee application is available upon request.
[3] Dispersion represents an asset weighted standard deviation of annual portfolio returns. Dispersion is not considered meaningful where less than five portfolios have been in the composite for the entire year and therefore has not been presented in years where an N/A appears.
[4] Percentage of Firm assets are presented on an annual basis. Additional Firm asset and % of Firm asset information is available upon request.
[5] For annual and YTD periods, the three year annualized ex-post standard deviation is presented as of the date shown. For each period for which an annualized return is presented, the corresponding annualized ex-post standard deviation of the composite is also provided. N/A is shown for
periods where historical monthly returns are not available for 36 months or the full time period presented as standard deviation is not considered meaningful in these cases.
Continued on next page
Multi-Disciplinary Fundamental Strategies Ex-Sidepockets (Institutional) (Continued)
GSAM claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. GSAM has been independently verified for the periods July 1, 2000 through June 30, 2006 by Deloitte & Touche, LLP
and for the periods July 1, 2006 through December 31, 2013 by Ernst & Young LLP. The verification reports are available upon request.
Verification assesses whether (1) the Firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the Firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.
Verification does not ensure the accuracy of any specific composite presentation.
Goldman Sachs Asset Management (excluding the following two business units (i) Goldman Sachs Hedge Fund Strategies LLC and (ii) the Private Equity Group), is referred to herein as the 'Firm' or 'GSAM'. Established in 1988, GSAM provides advisory services globally to both individual and
institutional clients and is defined as the 'Firm' for purposes of complying with the Global Investment Performance Standards (GIPS®). In July 2011, GSAM acquired Goldman Sachs & Partners, an affiliated Australian investment adviser and Benchmark Asset Management Company, an Indian
investment adviser and ETF provider. In May 2012, GSAM acquired Dwight Asset Management Company LLC and retained substantially all the stable value strategies and associated investment team members. Effective October 2012, the Energy and Infrastructure team within Private Wealth
Management (PWM), an affiliated investment adviser, moved to GSAM. In April 2014, GSAM acquired Deutsche Asset & Wealth Management Stable Value team and retained substantially all the stable value strategies and associated investment team members. In all instances, unless
otherwise noted, GSAM retained substantially all of the assets, historical performance results and key investment team members.
The Multi-Disciplinary Fundamental Strategies Ex-Sidepockets composite consists of global multi-strategy investment portfolios. These portfolios are characterized by a research intensive approach which emphasizes fundamental bottoms-up analysis. There are three possible sources of
excess return: 1. Long/Short Strategies (generally emphasize individual security selection in equity, fixed income, commodity, credit and currency markets in addition to private financings on a global basis) 2. Relative Value and Arbitrage Strategies (may include convertible arbitrage, capital
structure arbitrage, volatility trading and issuer-specific relative value trading strategies) and 3. Event-Driven Strategies (may include merger arbitrage, leveraged financings, special situations and bankruptcy/distressed investing). Portfolios avoid illiquid investments. Portfolios are included in
the composite with no restrictions on asset size. Portfolios may include institutional accounts, pooled vehicles or private wealth accounts.
These total return figures represent past performance and are not indicative of future returns which may vary. Performance results are calculated utilizing a time-weighted rate of return methodology and include the reinvestment of earnings. Effective April 2010, institutional and private wealth
account returns are calculated by applying the true time-weighted return calculation methodology. Previously account returns were calculated applying the Modified BAI calculation methodology based on a monthly valuation and daily weighted cash flows. Accounts are valued pursuant to
GSAM's Valuation Procedures and reflect GSAM's good faith estimate of fair market levels for all positions, which may not be realized upon liquidation. The circumstances of the transaction and transaction size will affect the price received upon liquidation.
GSAM's valuation policies are available upon request. Gross performance results are presented before management and custodial fees but after all trading commissions and transaction costs. Net performance results are net of transaction costs and investment management fees as
described in Note 2 above. Where composites include mutual fund portfolios, the mutual fund performance is calculated gross of management and other fund fees for all share classes. Gross mutual fund performance is derived from net fund performance, applying the funds' total expense
ratio. All relevant funds' share class assets are reflected in the composite and total GSAM assets figures. Each share class is treated as one account.
Account and mutual fund valuation sources and timing may sometimes differ causing dispersion within the composite. The composite may include portfolios of different base currencies which have been redenominated to a common currency using monthly exchange rates obtained from WM
Reuters and Financial Times (FT). Composite monthly returns are the size-weighted averages of the portfolios' monthly returns. Composite monthly returns are geometrically linked to calculate composite annual returns. GSAM's policies for calculating performance and preparing compliant
presentations are available upon request. Segments of multiple asset class portfolios which have been managed as stand alone portfolios with separately managed cash may be included in the composite. A complete list and description of GSAM's composites is available upon request.
Portfolios may be valued using subjective unobservable inputs.
The maximum fee schedule applied for this strategy reflects an investment management fee of 1.75% and an incentive fee of 20%.
The composite included non-fee paying assets which represented 28.1% of the composite's assets for calendar year end 2008, 33.1% for 2009, 25.5% for 2010, 27.3% for 2011, 21.9% for 2012, and 15.3% for 2013.
Effective January 1, 2012, GSAM changed its methodology for applying model fees changes for calculation of composite net returns on a prospective basis. When a fee increase occurs mid month, the highest applicable fee rate is applied effective the 1st of that month. When a fee decrease
occurs mid month, the lowered fee rate is applied effective the 1st of the following month. Between July 1, 2005 and December 31, 2011, the methodology reflected the application of the highest model fee based on the applicable fee schedule in effect for that calendar year. Prior to July 1,
2005, the current highest fee in the Form ADV, Part II was applied retroactively across all periods. As a result, net returns presented through June 30, 2005 reflect the fees in effect on June 30, 2005.
For the performance period presented, investment professionals may have changed or departed, none of which in the Firm's view have altered the composite's strategy.
A benchmark has not been presented for this composite. There is currently no existing benchmark that the Investment Manager believes is a suitable index for comparison due to the multi-disciplinary nature of the strategy.
Accounts within this composite may invest in strategies that are leveraged through the use of derivatives to implement their portfolio strategy. Exchange traded futures, FX forwards, options and swaps could be used to gain exposure to specific markets and to generate excess return.
Composite creation date: 11/10/2010
Published Final on: 02/05/2015
-113117-
Fundamental Strategies ex Asia (Institutional)
Returns
Risk Metrics
Portfolio Metrics
Gross Rate of Return
(%)
Net Rate of Return (%)
[2]
BofA ML USD LIBOR 3 Month
Constant Maturity (Total
Return, Unhedged, USD)
Benchmark (%) [5]
Cumulative
Since Inception [1]
2.29
1.89
0.06
223
N/A
N/A
Years
10/2014-12/2014
2.29
1.89
0.06
223
N/A
N/A
As of:
December 31, 2014
Gross Excess Return
(bps)
Standard Deviation - Composite
(%) [6]
Standard Deviation - BofA ML USD
LIBOR 3 Month Constant Maturity
(Total Return, Unhedged, USD)
Benchmark (%) [6]
Assets
Dispersion (%) [3]
No. of Portfolios
End of Period
Assets (MM)
Percent of Firm
Assets [4]
N/A
5
53
0.01
[1] Composite inception date: 10/01/2014. Returns for periods of less than one year cannot be annualized. Where applicable, annual performance for up to 10 years is presented. Additional performance information is available upon request. Currency used to express end of period assets
and composite and benchmark performance: USD.
[2] The composite net of fee returns are calculated by adjusting each monthly gross of fee composite return by the highest applicable fee rate listed in the Form ADV, Part II schedule or internal product fee schedule applicable to the prospective investor type. Actual fees and expenses may
differ from those reflected in this composite presentation which would cause performance to differ. Where performance fees exist, the calculation was based on assumptions as to how the rate was applied which could differ from how it was actually charged. The net performance may not reflect
the deduction of custody, administrative and other fees and expenses or fund sales loads, if applicable.
[3] Dispersion represents an asset weighted standard deviation of annual portfolio returns. Dispersion is not considered meaningful where less than five portfolios have been in the composite for the entire year and therefore has not been presented in years where an N/A appears.
[4] Percentage of Firm assets are presented on an annual basis. Additional Firm asset and % of Firm asset information is available upon request.
[5] Benchmark Source: BofA Merrill Lynch. The BofA Merrill Lynch US Dollar 3 Month LIBOR Constant Maturity Index tracks the performance of a synthetic asset paying LIBOR to a stated maturity. The index is based on the assumed purchase at par of a synthetic instrument having exactly its
stated maturity and with a coupon equal to that day’s fixing rate. That issue is assumed to be sold the following business day (priced at a yield equal to the current day fixing rate) and rolled into a new instrument. This benchmark is in Total Return, unhedged and expressed in USD. All Merrill
Lynch Indices have been rebranded to BofA Merrill Lynch Indices effective September 26th, 2009.
[6] For annual and YTD periods, the three year annualized ex-post standard deviation is presented as of the date shown. For each period for which an annualized return is presented, the corresponding annualized ex-post standard deviation of the composite and benchmark is also provided.
N/A is shown for periods where historical monthly returns are not available for 36 months or the full time period presented as standard deviation is not considered meaningful in these cases.
Continued on next page
Fundamental Strategies ex Asia (Institutional) (Continued)
GSAM claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. GSAM has been independently verified for the periods July 1, 2000 through June 30, 2006 by Deloitte & Touche, LLP
and for the periods July 1, 2006 through December 31, 2013 by Ernst & Young LLP. The verification reports are available upon request.
Verification assesses whether (1) the Firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the Firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.
Verification does not ensure the accuracy of any specific composite presentation.
Goldman Sachs Asset Management (excluding the following two business units (i) Goldman Sachs Hedge Fund Strategies LLC and (ii) the Private Equity Group), is referred to herein as the 'Firm' or 'GSAM'. Established in 1988, GSAM provides advisory services globally to both individual and
institutional clients and is defined as the 'Firm' for purposes of complying with the Global Investment Performance Standards (GIPS®). In July 2011, GSAM acquired Goldman Sachs & Partners, an affiliated Australian investment adviser and Benchmark Asset Management Company, an Indian
investment adviser and ETF provider. In May 2012, GSAM acquired Dwight Asset Management Company LLC and retained substantially all the stable value strategies and associated investment team members. In October 2012, the Energy and Infrastructure team within Private Wealth
Management (PWM), an affiliated investment adviser, moved to GSAM. In January 2014, Advanced Investment Strategies, a joint venture between Goldman Sachs Securities Division and GSAM, became integrated into GSAM. In April 2014, GSAM acquired Deutsche Asset & Wealth
Management Stable Value team and retained substantially all the stable value strategies and associated investment team members. In all instances, unless otherwise noted, GSAM retained substantially all of the assets, historical performance results and key investment team members.
The Fundamental Strategies ex Asia composite consists of global investment portfolios excluding Asia. These portfolios are characterized by a research intensive approach which emphasizes fundamental bottoms-up analysis. The main sources of excess return are: 1. Long/Short Strategies
(generally emphasize individual security selection in equity in addition to private financings on a global basis excluding Asia) and 2. Event-Driven Strategies (may include merger arbitrage, leveraged financings, special situations and bankruptcy/distressed investing). Portfolios avoid illiquid
investments. Portfolios are included in the composite with no restrictions on asset size. Portfolios may include institutional accounts, pooled vehicles or private wealth accounts.
These total return figures represent past performance and are not indicative of future returns which may vary. Performance results are calculated utilizing a time-weighted rate of return methodology and include the reinvestment of earnings. Effective April 2010, institutional and private wealth
account returns are calculated by applying the true time-weighted return calculation methodology. Previously account returns were calculated applying the Modified BAI calculation methodology based on a monthly valuation and daily weighted cash flows. Accounts are valued pursuant to
GSAM's Valuation Procedures and reflect GSAM's good faith estimate of fair market levels for all positions, which may not be realized upon liquidation. The circumstances of the transaction and transaction size will affect the price received upon liquidation.
GSAM's valuation policies are available upon request. Gross performance results are presented before management and custodial fees but after all trading commissions and transaction costs. Net performance results are net of transaction costs and investment management fees as
described in Note 2 above. Where composites include mutual fund portfolios, the mutual fund performance is calculated gross of management and other fund fees for all share classes. Gross mutual fund performance is derived from net fund performance, applying the funds' total expense
ratio. All relevant funds' share class assets are reflected in the composite and total GSAM assets figures. Each share class is treated as one account.
Account and mutual fund valuation sources and timing may sometimes differ causing dispersion within the composite. The composite may include portfolios of different base currencies which have been redenominated to a common currency using monthly exchange rates obtained from WM
Reuters and Financial Times (FT). Composite monthly returns are the size-weighted averages of the portfolios' monthly returns. Composite monthly returns are geometrically linked to calculate composite annual returns. GSAM's policies for calculating performance and preparing compliant
presentations are available upon request. Segments of multiple asset class portfolios which have been managed as stand alone portfolios with separately managed cash may be included in the composite. A complete list and description of GSAM's composites is available upon request.
References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time (each, an 'index') are provided for your information only. Reference to an index does not imply that the portfolio will achieve returns, volatility or other
results similar to the index. The composition of the index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to
change over time.
The maximum standard fee schedule applied for this product reflects 160 bps.
Effective January 1, 2012, GSAM changed its methodology for applying model fees changes for calculation of composite net returns on a prospective basis. When a fee increase occurs mid month, the highest applicable fee rate is applied effective the 1st of that month. When a fee decrease
occurs mid month, the lowered fee rate is applied effective the 1st of the following month. Between July 1, 2005 and December 31, 2011, the methodology reflected the application of the highest model fee based on the applicable fee schedule in effect for that calendar year. Prior to July 1,
2005, the current highest fee in the Form ADV, Part II was applied retroactively across all periods. As a result, net returns presented through June 30, 2005 reflect the fees in effect on June 30, 2005.
For the performance period presented, investment professionals may have changed or departed, none of which in the Firm's view have altered the composite's strategy.
A LIBOR benchmark has been presented for this composite. There is currently no existing benchmark that the Investment Manager believe is a more suitable index for comparison.
Portfolios within this composite may be leveraged to implement the intended strategy. Portfolios may employ leverage through borrowings and through derivatives.
Portfolios within this composite may use derivatives to implement the intended strategy. The derivative instruments used may include futures contracts, swaps, options, forward contracts, and other instruments.
Composite creation date: 11/21/2014
Published Final on: 03/17/2015
-115029-
Disclosures
Additional Information
1. General Information
Goldman Sachs AG is a stock corporation (Aktiengesellschaft) established under German law with its registered seat in Friedrich-Ebert-Anlage 49 (MesseTurm), 60327 Frankfurt am Main, Germany, Tel: +49 (0)69 7532 1000.
For further information on Goldman Sachs AG and its services please refer to your Goldman Sachs contact.
Goldman Sachs AG is authorised and regulated by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht), Graurheindorfer Str. 108, 53117 Bonn and Lurgiallee 12, 60439 Frankfurt am
Main, Germany. Goldman Sachs AG provides certain services including reception and transmission of orders in relation to one or more financial instruments, portfolio management and investment advice as well as advice to
undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings.
Communication between Goldman Sachs AG and its clients will be in English and/or German, generally orally, in writing (including fax), by email or other electronic means. Please note, however, that orders for the purchase or
sale of financial instruments must be given to Goldman Sachs AG orally unless explicitly agreed with Goldman Sachs AG otherwise.
2. Client Classification
Based on the information available to Goldman Sachs AG, Goldman Sachs AG will categorise you as a professional client and you will benefit from those regulatory protections afforded to that category of client under the
WpHG. You should be aware that professional clients will not be entitled to certain protections afforded by the WpHG to retail clients. Goldman Sachs AG will provide you with further information on client classification upon
request.
3. Nature, Frequency And Timing Of Reports
Generally, Goldman Sachs AG does not execute orders, but will place them with executing brokers, including Goldman Sachs group companies. Goldman Sachs AG will not send the client a trade confirmation but Goldman
Sachs AG will endeavour that the executing broker will provide the trade confirmation as soon as possible and no later than legally required.
Upon request, Goldman Sachs AG provides the client with information about the status of his order.
4. Holding Of Financial Instruments And Client Monies
Generally, Goldman Sachs AG does not hold custody over any of its clients' assets or client money. Matters of custody and client money will be dealt with by the respective custodian under its respective governing law. Further
details are available on request.
However, Goldman Sachs AG is a member of the Compensation Scheme of German Banks (Entschädigungseinrichtung deutscher Banken GmbH) and the Deposit Scheme of the Association of German Banks
(Einlagensicherungsfonds des Bundesverbandes deutscher Banken).
5. Order Execution
Goldman Sachs AG has put in place arrangements that enable Goldman Sachs AG to comply with applicable requirements in relation to best execution as they apply to investment firms providing services of reception and
transmission including an execution policy (the "Execution Policy") information on which is set out below.
5.1 Scope of the Execution Policy
Goldman Sachs AG's Execution Policy applies to clients of Goldman Sachs AG when Goldman Sachs AG receives and transmits orders on behalf of clients and places them with Goldman Sachs AG affiliates or third parties, in
each case in respect of financial instruments covered by MiFID and the German Securities Trading Act (Wertpapierhandelsgesetz or "WpHG").
5.2 The Relevant Obligation
When Goldman Sachs AG receives and transmits an order on behalf of a client or places an order with another entity (including affiliates of Goldman Sachs AG) for execution Goldman Sachs AG will, subject to any specific
client instructions, take all reasonable steps to obtain the best possible result taking into account the factors identified in accordance with Goldman Sachs AG's Execution Policy. In such circumstances, Goldman Sachs AG will
either determine the ultimate execution venue and give the other broker or dealer a specific instruction to that effect, or Goldman Sachs AG will have satisfied itself that the other broker or dealer has arrangements in place to
enable Goldman Sachs AG to comply with its best execution obligation.
When Goldman Sachs AG quotes or negotiates with a client the terms of a transaction in which an affiliate is willing to deal with such client as principal for its account, therefore the Execution Policy will not apply, unless a client
requests otherwise and Goldman Sachs AG agrees to such request
32
Additional Information
5.3 Executing Firms
Goldman Sachs AG includes in its Execution Policy details of the various executing firms which it accesses for each of the financial instruments covered by MiFID or WpHG in respect of which Goldman Sachs AG places or
transmits orders to other entities for execution. Goldman Sachs AG includes those execution firms in its Execution Policy that it believes enable Goldman Sachs AG to obtain on a consistent basis the best possible result when
placing client orders.
Goldman Sachs AG will usually transmit the orders received for execution to an executing firm for all financial instruments (including equities and fixed income instruments) to a third party or to one of Goldman Sachs AG's
affiliates such as Goldman Sachs International, London, to Goldman, Sachs & Co., New York, and to Goldman Sachs Bank AG, Zurich.
5.4 Relevant Factors
In circumstances where a client has been classified as a professional client, subject to any specific instructions that Goldman Sachs AG accepts from clients, Goldman Sachs AG takes into account a range of factors that allow
Goldman Sachs AG to comply with its requirements in relation to best execution as they apply to investment firms providing services of reception and transmission of orders. These may include price, costs, speed, likelihood of
execution and settlement, together with any other consideration relevant to the order.
In determining what is the best possible result for a client, Goldman Sachs AG does not compare the results that can be achieved for a client on the basis of its Execution Policy and fees with results that might be achieved for a
client by another investment firm on the basis of that firm's execution policy or a different structure of commission or fees, nor does Goldman Sachs AG compare the differences in its own commissions or fees which are
attributable to the nature of the services that Goldman Sachs AG provides to clients.
5.5 Monitoring and Review
Goldman Sachs AG monitors the effectiveness of its order execution arrangements and Execution Policy on an ongoing basis to identify and implement any appropriate enhancements. In addition, Goldman Sachs AG regularly
reviews whether the brokers and dealers to whom it transmits orders for execution and with whom Goldman Sachs AG may place orders provide for the best possible result for its clients on a consistent basis and whether
Goldman Sachs AG needs to make changes to its execution arrangements.
Goldman Sachs AG will notify its clients of any material changes of its Execution Policy.
6. Conflicts of Interest and Inducements
Goldman Sachs AG and its European affiliates ("Goldman Sachs") offer a wide range of financial services to many clients. The broad range of services, such as investment research, investment advice, trading, asset
management, corporate finance business including underwriting or selling in an offering of securities and advising on mergers and acquisitions, and the diverse group of clients and products may give rise to a number of
competing interests. Goldman Sachs has established, implemented and maintains a written conflicts of interest policy which reflects its approach to managing such competing interests.
Goldman Sachs has identified circumstances with reference to specific services and activities, which may give rise to a conflict of interest entailing a material risk of damage to the interests of one or more of its clients.
To manage such conflicts Goldman Sachs has principles, procedures and measures that are designed to ensure that the services provided or activities conducted are carried out with integrity and an appropriate degree of
independence to protect the interests of clients.
These principles, procedures and measures include the prevention or control of information exchange, appropriate organisational structures and supervisory roles (to prevent inappropriate influence of one person over another,
or the involvement of a person where such involvement could impair the proper management of conflicts of interest), and avoiding any direct link between the remuneration of employees and revenues generated by them.
The policy provides that in certain circumstances it may be appropriate for Goldman Sachs to disclose the general nature of a conflict of interest to a client.
Goldman Sachs AG does not provide investment advice as a fee based investment adviser. Goldman Sachs AG may accept and retain fees received from third parties in connection with investment advice.
Further details of Goldman Sachs' conflicts of interest policy are available on request.
7. Statement of Risks and Nature of Financial Instruments
A client should not deal in a financial instrument unless such client understands the nature and associated risk. A client should also be satisfied that the product is suitable in light of the client’s investment objectives, risk affinity,
other personal circumstances and the client's financial position. Goldman Sachs AG holds available the information on risks and nature of financial instruments.
8. Cost and Associated Charges
The actual amounts will depend on the service provided to a client. Each client will be provided with information on applicable fees and their method of calculation in writing prior to the provision of an investment service.
If you would like additional information on Goldman Sachs AG or any of its affiliates contact your usual Goldman Sachs representative.
33
Additional Information
This document has been issued by Goldman Sachs International, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation
Authority.
Offering Documents
This material is provided at your request for informational purposes only and does not constitute a solicitation in any jurisdiction in which such a solicitation is unlawful or to any person to whom it is
unlawful. It only contains selected information with regards to the fund and does not constitute an offer to buy shares in the fund. Prior to an investment, prospective investors should carefully read
the latest Key Investor Information Document (KIID) as well as the offering documentation, including but not limited to the fund’s prospectus which contains inter alia a comprehensive disclosure of
applicable risks. The relevant articles of association, prospectus, supplement, KIID and latest annual/semi-annual report are available free of charge from the fund’s paying and information agent
and/or from your financial adviser.
Distribution of Shares
Shares of the fund may not be registered for public distribution in a number of jurisdictions (including but not limited to any Latin American, African or Asian countries). Therefore, the shares of the
fund must not be marketed or offered in or to residents of any such jurisdictions unless such marketing or offering is made in compliance with applicable exemptions for the private placement of
collective investment schemes and other applicable jurisdictional rules and regulations.
Investment Advice and Potential Loss
Financial advisers generally suggest a diversified portfolio of investments. The fund described herein does not represent a diversified investment by itself. This material must not be construed as
investment or tax advice. Prospective investors should consult their financial and tax adviser before investing in order to determine whether an investment would be suitable for them.
An investor should only invest if he/she has the necessary financial resources to bear a complete loss of this investment.
Swing Pricing
Please note that the fund operates a swing pricing policy. Investors should be aware that from time to time this may result in the fund performing differently compared to the reference benchmark
based solely on the effect of swing pricing rather than price developments of underlying instruments.
Index Benchmarks
Indices are unmanaged. The figures for the index reflect the reinvestment of all income or dividends, as applicable, but do not reflect the deduction of any fees or expenses which would reduce
returns. Investors cannot invest directly in indices.
The indices referenced herein have been selected because they are well known, easily recognized by investors, and reflect those indices that the Investment Manager believes, in part based on
industry practice, provide a suitable benchmark against which to evaluate the investment or broader market described herein. The exclusion of “failed” or closed hedge funds may mean that each
index overstates the performance of hedge funds generally.
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 is not financial research and was not prepared by 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
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