Prospectus
March 30, 2023
March 30, 2023
Administration
Shares
GOLDMAN
SACHS MONEY MARKET FUNDS
THE SECURITIES AND
EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED
UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
|
AN
INVESTMENT IN A FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR
GUARANTEED BY THE
FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. |
Financial
Square FundsSM
◼
Prime
Obligations Fund: FBAXX
◼
Money Market
Fund: FADXX
◼
Treasury
Obligations Fund: FGAXX
◼
Treasury
Instruments Fund: FRAXX
◼
Treasury
Solutions Fund: FVAXX
◼
Government
Fund: FOAXX
◼
Federal
Instruments Fund: FIOXX
Investor
FundsSM
◼
Money Market
Fund: FMKXX
◼
Tax-Exempt
Money Market Fund: FEAXX
|
|
|
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|
|
Prime
Obligations
Fund |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
Maximum
Deferred Sales Charge (Load) |
|
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fees |
|
|
Exchange
Fees |
|
|
Management
Fees |
|
|
Other
Expenses |
|
|
Administration
Fees |
|
|
All
Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Expense
Limitation1 |
( |
|
Total
Annual Fund Operating Expenses After Expense
Limitation |
|
1
|
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Administration
Shares |
$ |
$ |
$ |
$ |
|
|
1
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Administration
Shares |
|
|
|
|
3
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
|
Buying
and Selling Fund Shares |
For
important information about purchase and sale of Fund shares, please see “Buying
and Selling Fund Shares” on page 33 of the Prospectus.
|
Tax
Information |
The Fund’s
distributions are taxable, and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account. Investments made through
tax-deferred arrangements may become taxable upon withdrawal from such
arrangements.
|
Payments
to Broker-Dealers and
Other
Financial Intermediaries |
For
important information about financial intermediary compensation, please see
“Payments to Broker-Dealers and Other Financial Intermediaries” on page 33 of
the Prospectus.
4
|
|
|
|
|
|
Money
Market
Fund |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
Maximum
Deferred Sales Charge (Load) |
|
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fees |
|
|
Exchange
Fees |
|
|
Management
Fees |
|
|
Other
Expenses |
|
|
Administration
Fees |
|
|
All
Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Expense
Limitation1
|
( |
|
Total
Annual Fund Operating Expenses After Expense
Limitation |
|
1
|
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Administration
Shares |
$ |
$ |
$ |
$ |
5
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Administration
Shares |
|
|
|
|
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
|
Buying
and Selling Fund Shares |
For
important information about purchase and sale of Fund shares, please see “Buying
and Selling Fund Shares” on page 33 of the Prospectus.
|
Tax
Information |
The Fund’s
distributions are taxable, and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account. Investments made through
tax-deferred arrangements may become taxable upon withdrawal from such
arrangements.
|
Payments
to Broker-Dealers and
Other
Financial Intermediaries |
For
important information about financial intermediary compensation, please see
“Payments to Broker-Dealers and Other Financial Intermediaries” on page 33 of
the Prospectus.
8
|
|
|
|
|
|
Treasury
Obligations
Fund |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
Maximum
Deferred Sales Charge (Load) |
|
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fees |
|
|
Exchange
Fees |
|
|
Management
Fees |
|
|
Other
Expenses |
|
|
Administration
Fees |
|
|
All
Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Administration
Shares |
$ |
$ |
$ |
$ |
|
|
9
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Administration
Shares |
|
|
|
|
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
|
Buying
and Selling Fund Shares |
For
important information about purchase and sale of Fund shares, please see “Buying
and Selling Fund Shares” on page 33 of the Prospectus.
|
Tax
Information |
The Fund’s
distributions are taxable, and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account. Investments made through
tax-deferred arrangements may become taxable upon withdrawal from such
arrangements.
|
Payments
to Broker-Dealers and
Other
Financial Intermediaries |
For
important information about financial intermediary compensation, please see
“Payments to Broker-Dealers and Other Financial Intermediaries” on page 33 of
the Prospectus.
11
|
|
|
|
|
|
Treasury
Instruments
Fund |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
Maximum
Deferred Sales Charge (Load) |
|
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fees |
|
|
Exchange
Fees |
|
|
Management
Fees |
|
|
Other
Expenses |
|
|
Administration
Fees |
|
|
All
Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Administration
Shares |
$ |
$ |
$ |
$ |
|
|
12
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Administration
Shares |
|
|
|
|
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
|
Buying
and Selling Fund Shares |
For
important information about purchase and sale of Fund shares, please see “Buying
and Selling Fund Shares” on page 33 of the Prospectus.
|
Tax
Information |
The Fund’s
distributions are taxable, and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account. Investments made through
tax-deferred arrangements may become taxable upon withdrawal from such
arrangements.
|
Payments
to Broker-Dealers and
Other
Financial Intermediaries |
For
important information about financial intermediary compensation, please see
“Payments to Broker-Dealers and Other Financial Intermediaries” on page 33 of
the Prospectus.
14
|
|
|
|
|
|
Treasury
Solutions
Fund |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
Maximum
Deferred Sales Charge (Load) |
|
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fees |
|
|
Exchange
Fees |
|
|
Management
Fees |
|
|
Other
Expenses |
|
|
Administration
Fees |
|
|
All
Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Administration
Shares |
$ |
$ |
$ |
$ |
|
|
15
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Administration
Shares |
|
|
|
|
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
|
Buying
and Selling Fund Shares |
For
important information about purchase and sale of Fund shares, please see “Buying
and Selling Fund Shares” on page 33 of the Prospectus.
|
Tax
Information |
The Fund’s
distributions are taxable, and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account. Investments made through
tax-deferred arrangements may become taxable upon withdrawal from such
arrangements.
|
Payments
to Broker-Dealers and
Other
Financial Intermediaries |
For
important information about financial intermediary compensation, please see
“Payments to Broker-Dealers and Other Financial Intermediaries” on page 33 of
the Prospectus.
17
|
|
|
|
|
|
Government
Fund |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
Maximum
Deferred Sales Charge (Load) |
|
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fees |
|
|
Exchange
Fees |
|
|
Management
Fees |
|
|
Other
Expenses |
|
|
Administration
Fees |
|
|
All
Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Administration
Shares |
$ |
$ |
$ |
$ |
|
|
18
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Administration
Shares |
|
|
|
|
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
|
Buying
and Selling Fund Shares |
For
important information about purchase and sale of Fund shares, please see “Buying
and Selling Fund Shares” on page 33 of the Prospectus.
|
Tax
Information |
The Fund’s
distributions are taxable, and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account. Investments made through
tax-deferred arrangements may become taxable upon withdrawal from such
arrangements.
|
Payments
to Broker-Dealers and
Other
Financial Intermediaries |
For
important information about financial intermediary compensation, please see
“Payments to Broker-Dealers and Other Financial Intermediaries” on page 33 of
the Prospectus.
20
|
|
|
|
|
|
Federal
Instruments
Fund |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
Maximum
Deferred Sales Charge (Load) |
|
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fees |
|
|
Exchange
Fees |
|
|
Management
Fees |
|
|
Other
Expenses |
|
|
Administration
Fees |
|
|
All
Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Expense
Limitation1
|
( |
|
Total
Annual Fund Operating Expenses After Expense
Limitation |
|
1
|
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Administration
Shares |
$ |
$ |
$ |
$ |
21
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
Since
Inception |
Inception
Date | |
|
Administration
Shares |
|
|
|
|
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
|
Buying
and Selling Fund Shares |
For
important information about purchase and sale of Fund shares, please see “Buying
and Selling Fund Shares” on page 33 of the Prospectus.
23
|
Tax
Information |
The Fund’s
distributions are taxable, and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account. Investments made through
tax-deferred arrangements may become taxable upon withdrawal from such
arrangements.
|
Payments
to Broker-Dealers and
Other
Financial Intermediaries |
For
important information about financial intermediary compensation, please see
“Payments to Broker-Dealers and Other Financial Intermediaries” on page 33 of
the Prospectus.
24
|
|
|
|
|
|
Money
Market
Fund |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
Maximum
Deferred Sales Charge (Load) |
|
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fees |
|
|
Exchange
Fees |
|
|
Management
Fees |
|
|
Other
Expenses |
|
|
Administration
Fees |
|
|
All
Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Expense
Limitation1 |
( |
|
Total
Annual Fund Operating Expenses After Expense
Limitation |
|
1
|
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Administration
Shares |
$ |
$ |
$ |
$ |
25
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
|
|
|
|
|
|
|
1
Year |
5
Years |
Since
Inception |
Inception
Date | |
|
Administration
Shares |
|
|
|
|
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
|
Buying
and Selling Fund Shares |
Investments
in the Fund are limited to accounts beneficially owned by natural persons. For
important information about purchase and sale of Fund shares, please see “Buying
and Selling Fund Shares” on page 33 of the Prospectus.
|
Tax
Information |
The Fund’s
distributions are taxable, and will be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account. Investments made through
tax-deferred arrangements may become taxable upon withdrawal from such
arrangements.
|
Payments
to Broker-Dealers and
Other
Financial Intermediaries |
For
important information about financial intermediary compensation, please see
“Payments to Broker-Dealers and Other Financial Intermediaries” on page 33 of
the Prospectus.
28
|
|
|
|
|
|
Tax-Exempt
Money
Market
Fund |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
Maximum
Deferred Sales Charge (Load) |
|
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
Redemption
Fees |
|
|
Exchange
Fees |
|
|
Management
Fees |
|
|
Other
Expenses |
|
|
Administration
Fees |
|
|
All
Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
Expense
Limitation1 |
( |
|
Total
Annual Fund Operating Expenses After Expense
Limitation |
|
1
|
|
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Administration
Shares |
$ |
$ |
$ |
$ |
|
|
29
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Administration
Shares |
|
|
|
|
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
|
Buying
and Selling Fund Shares |
Investments
in the Fund are limited to accounts beneficially owned by natural persons. For
important information about purchase and sale of Fund shares, please see “Buying
and Selling Fund Shares” on page 33 of the Prospectus.
31
|
Tax
Information |
The Fund’s
distributions that are designated as “exempt interest dividends” are generally
not subject to federal income tax. To the extent that Fund distributions are
attributable to interest on certain federal obligations or interest on
obligations of your state of residence or its municipalities or authorities,
they will in most cases be exempt from state and local income taxes. The Fund
intends to avoid investments which pay interest that is a preference item in
determining AMT liability.
|
Payments
to Broker-Dealers and
Other
Financial Intermediaries |
For
important information about financial intermediary compensation, please see
“Payments to Broker-Dealers and Other Financial Intermediaries” on page 33 of
the Prospectus.
32
Additional
Summary Information
Buying
and Selling Fund Shares
Generally,
Administration Shares may be purchased only through certain intermediaries that
have a relationship with Goldman Sachs & Co. LLC (“Goldman Sachs”),
including banks, trust companies, brokers, registered investment advisers and
other financial institutions (“Intermediaries”) that have agreed to provide
administration services to their customers who are the beneficial owners of
Administration Shares. The minimum initial investment requirement imposed upon
Intermediaries for the purchase of Administration Shares is generally $10
million, and there is no minimum imposed upon additional investments.
Intermediaries may, however, impose a minimum amount for initial and additional
investments in Administration Shares, and may establish other requirements such
as a minimum account balance.
You may
purchase and redeem (sell) shares of the Fund on any business day through an
Intermediary.
Investments
in the Investor FundsSM
are limited to accounts beneficially owned by natural persons.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you
purchase the Fund through an Intermediary, the Fund and/or its related companies
may pay the Intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the Intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your Intermediary’s website for more
information.
33
Investment
Management Approach
|
INVESTMENT
OBJECTIVEs |
The Funds
seek to maximize current income to the extent consistent with the preservation
of capital and the maintenance of liquidity by investing exclusively in high
quality money market instruments.
The
investment objective of each Fund (except as provided below) cannot be changed
without approval of a majority of the outstanding shares of that Fund. The
investment objectives of Financial Square Federal Instruments Fund and Investor
Money Market Fund may be changed without shareholder approval upon sixty days’
notice.
|
PRINCIPAL
INVESTMENT STRATEGIES |
Financial Square
Funds—Institutional Money Market Funds
An
“institutional money market fund” is a money market fund that is neither a
“government money market fund” nor a “retail money market fund” (each of which
is described in more detail below). An institutional money market fund is
required to price its shares at a NAV reflecting market-based values of its
portfolio securities (i.e., at a “floating” NAV) rounded to the fourth decimal
place (e.g., $1.0000). In addition, the board of trustees of an institutional
money market fund is permitted to impose a liquidity fee (of up to 2%) on
redemptions from the fund or a redemption gate that temporarily suspends
redemptions from the fund for up to 10 business days during a 90 day period, as
described under “Shareholder
Guide—How To Sell Shares—What Are The Potential Restrictions On Institutional
And Retail Fund Redemptions?”
below.
The Board
of Trustees of the Goldman Sachs Trust (the “Board”) has approved, upon the
recommendation of GSAM, the designation of each of the following Funds as an
institutional money market fund under Rule 2a-7 (collectively, the
“Institutional Funds”):
◼
Prime Obligations
Fund
The Prime Obligations Fund
pursues its investment objective by investing in U.S. Government Securities,
obligations of banks (which may exceed 25% of its assets), commercial paper and
other short-term obligations of U.S. companies, states, municipalities and other
entities, and repurchase agreements. The Fund may also invest in U.S.
dollar-denominated obligations of foreign banks, foreign companies and foreign
governments. The Fund may, but does not currently intend to, invest in
Eurodollar certificates of deposit. The Fund may not invest more than 25% of its
total assets in the securities of any one foreign government.
◼
Money Market Fund
(Institutional)
The Money
Market Fund pursues its investment objective by investing in U.S. Government
Securities, obligations of banks (which may exceed 25% of its total assets),
commercial paper and other short-term obligations of U.S. companies, states,
municipalities and other entities, and repurchase agreements. The Fund may also
invest in U.S. dollar-denominated obligations of foreign banks, foreign
companies and foreign governments. The Fund may not invest more than 25% of its
total assets in the securities of any one foreign government.
34
Investment
Management Approach
Financial Square
Funds—Government Money Market Funds
A
“government money market fund” is a money market fund that invests at least
99.5% of its total assets in cash, U.S. Government Securities, and/or repurchase
agreements that are collateralized fully by cash or U.S. Government Securities.
The Treasury Instruments Fund and Federal Instruments Fund may not invest in
repurchase agreements. Government money market funds may seek to maintain a
stable NAV per share of $1.00 based on the amortized cost method of valuation.
Government money market funds are also exempt from the requirements relating to
the imposition of liquidity fees and/or redemption gates.
The Board
has approved, upon the recommendation of GSAM, the designation of each of the
following Funds as a government money market fund under Rule 2a-7 (collectively,
the “Government Funds”):
◼
Treasury Obligations
Fund
The
Treasury Obligations Fund pursues its investment objective by investing only in
U.S. Treasury Obligations and repurchase agreements collateralized by U.S.
Treasury Obligations. The Fund’s policy of limiting its investments to U.S.
Treasury Obligations and related repurchase agreements is a fundamental
investment restriction.
◼
Treasury Instruments
Fund
The
Treasury Instruments Fund pursues its investment objective by investing only in
U.S. Treasury Obligations, the interest from which is generally exempt from
state income taxation. Shareholders will be provided with sixty days’ notice in
the manner prescribed by the Securities and Exchange Commission (“SEC”) before
any change in the Fund’s policy to invest at least 80% of its net assets plus
any borrowings for investment purposes (measured at the time of investment) in
the particular type of investment suggested by its name.
◼
Treasury Solutions
Fund
The
Treasury Solutions Fund pursues its investment objective by investing only in
U.S. Treasury Obligations and repurchase agreements with the Federal Reserve
Bank of New York collateralized by U.S. Treasury Obligations. Shareholders will
be provided with sixty days’ notice in the manner prescribed by the SEC before
any change in the Fund’s policy to invest at least 80% of its net assets plus
any borrowings for investment purposes (measured at the time of investment) in
the particular type of investment suggested by its name.
◼
Government
Fund
The
Government Fund pursues its investment objective by investing only in U.S.
Government Securities, and repurchase agreements collateralized by such
securities. Shareholders will be provided with sixty days’ notice in the manner
prescribed by the SEC before any change in the Fund’s policy to invest at least
80% of its net assets plus any borrowings for investment purposes (measured at
the time of investment) in the particular type of investment suggested by its
name.
◼
Federal Instruments
Fund
The Federal
Instruments Fund pursues its investment objective by investing only in U.S.
Government Securities, the interest from which is generally exempt from state
income taxation. Shareholders will be provided with sixty days’ notice in the
manner prescribed by the SEC before any change in the Fund’s policy to invest at
least 80% of its net assets plus any borrowings for investment purposes
(measured at the time of investment) in the particular type of investment
suggested by its name.
35
Investor Funds—Retail
Money Market Funds
A “retail
money market fund” is a money market fund that has policies and procedures
reasonably designed to limit all beneficial owners of the fund to natural
persons. Similar to government money market funds, retail money market funds may
seek to maintain a stable NAV per share of $1.00 based on the amortized cost
method of valuation. However, similar to institutional money market funds, a
retail money market fund’s board of trustees is permitted to impose a liquidity
fee (of up to 2%) on redemptions from the fund or a redemption gate that
temporarily suspends redemptions from the fund for up to 10 business days during
a 90 day period, as described under “Shareholder
Guide—How To Sell Shares—What Are The Potential Restrictions On Institutional
And Retail Fund Redemptions?” below.
The Board
has approved, upon the recommendation of GSAM, the designation of each of the
following funds as a retail money market fund under Rule 2a-7 (collectively, the
“Retail Funds”):
◼
Money Market Fund
(Retail)
The Money
Market Fund pursues its investment objective by investing in U.S. Government
Securities, obligations of banks (which may exceed 25% of its total assets),
commercial paper and other short-term obligations of U.S. companies, states,
municipalities and other entities, and repurchase agreements. The Fund may also
invest in U.S. dollar-denominated obligations of foreign banks, foreign
companies and foreign governments. The Fund may not invest more than 25% of its
total assets in the securities of any one foreign government.
◼
Tax-Exempt Money
Market Fund (Retail)
The
Tax-Exempt Money Market Fund pursues its investment objective by investing at
least 80% of its Net Assets in securities issued by or on behalf of states,
territories and possessions of the United States and their political
subdivisions, agencies, authorities and instrumentalities, and the District of
Columbia, the interest from which, if any, is in the opinion of bond counsel
excluded from gross income for federal income tax purposes, and generally not an
item of tax preference under the AMT. The Investment Adviser ordinarily expects
100% of the Fund’s assets will be invested in municipal obligations, but the
Fund may invest in short-term taxable instruments for temporary investment
purposes. The Fund’s policy to invest at least 80% of its Net Assets in
municipal obligations, the interest from which, if any, is in the opinion of
bond counsel excluded from gross income for federal income tax purposes, is a
fundamental investment restriction.
All Funds
Under
normal circumstances, the cash positions of the Financial Square Treasury
Obligations Fund, Financial Square Treasury Instruments Fund, Financial Square
Treasury Solutions Fund, Financial Square Government Fund, Financial Square
Federal Instruments Fund and the Investor Tax-Exempt Money Market Fund will not
exceed 20% of the Fund’s net assets plus any borrowings for investment purposes
(measured at the time of investment). A Fund may hold uninvested cash in lieu of
appropriate money market instruments at the Fund’s custodian bank under certain
circumstances, including adverse market conditions or the prevailing interest
rate environment, or when the Investment Adviser believes there is an
insufficient supply of appropriate money market instruments in which to invest,
or in the case of unusually large cash inflows, anticipated redemptions or
pending investments. A Fund may earn custodial credits or interest on these cash
positions. However, these cash positions may not produce income or may produce
low income. As a result, a Fund’s current yield may be adversely affected during
such periods when cash is held uninvested. Cash positions may also subject a
Fund to additional risks and costs, such as increased exposure to the Fund’s
custodian bank and any fees imposed for large cash balances or for maintaining
the Fund’s account at the custodian bank.
Goldman Sachs Money
Market Team’s Investment Philosophy:
Goldman
Sachs Asset Management, L.P. (“GSAM®”) serves
as investment adviser to the Funds. GSAM is referred to in the Prospectus as the
“Investment Adviser.”
The Funds
are managed to seek preservation of capital, daily liquidity and maximum current
income. With each Fund, the Investment Adviser follows a conservative,
risk-managed investment process that seeks to:
◼
Manage
credit risk
◼
Manage
interest rate risk
◼
Manage
liquidity
36
Investment
Management Approach
INVESTMENT
PROCESS
1.
Managing
Credit Risk
The
Investment Adviser’s process for managing credit risk emphasizes:
◼
Intensive
research—The Credit
Department, a separate operating entity of Goldman Sachs, approves all money
market fund eligible securities for the Funds. Sources for the Credit
Department’s analysis include third-party inputs, such as financial statements
and media sources, ratings releases and company meetings, as well as the
Investment Research, Legal and Compliance departments of Goldman
Sachs.
◼
Timely
updates—A Credit
Department-approved list of securities is continuously communicated on a
“real-time” basis to the portfolio management team via computer
link.
The
Result: An “approved” list of high-quality credits—The
Investment Adviser’s portfolio management team uses this approved list to
construct portfolios which offer the best available risk-return trade-off within
the “approved” credit universe. If a security is removed from the “approved”
list, the Investment Adviser may not purchase that security for a Fund, although
it is not required to sell that security.
2.
Managing
Interest Rate Risk
Three main
steps are followed in seeking to manage interest rate risk:
◼
Establish
weighted average maturity (“WAM”) and weighted average life (“WAL”)
targets—WAM (the
weighted average time until the yield of a portfolio reflects any changes in the
current interest rate environment) and WAL (designed to more accurately measure
“spread risk”) are constantly revisited and adjusted as market conditions
change. An overall strategy is developed by the Investment Adviser based on
insights gained from weekly meetings with both Goldman Sachs economists and
economists from outside the firm.
◼
Implement
optimum portfolio structure—Proprietary
models that seek the optimum balance of risk and return, in conjunction with the
Investment Adviser’s analysis of factors such as market events, short-term
interest rates and each Fund’s asset volatility, are used to identify the most
effective portfolio structure.
◼
Conduct
rigorous analysis of new securities—The
Investment Adviser’s five-step process includes legal, credit, historical index
and liquidity analysis, as well as price stress testing to determine the
suitability of potential investments for the Funds.
3.
Managing
Liquidity
Factors
that the Investment Adviser’s portfolio managers continuously monitor and that
affect liquidity of a money market portfolio include:
◼
Each Fund’s
investors and other factors that influence the asset volatility of the
Funds;
◼
Technical
events that influence the trading range of federal funds and other short-term
fixed income markets; and
◼
Bid-ask
spreads associated with securities in the portfolios.
References
in the Prospectus to a Fund’s benchmark are for informational purposes only, and
unless otherwise noted are not an indication of how a particular Fund is
managed.
Additional Fund
Characteristics and Restrictions
◼
The
Funds: Each
Institutional Fund will price its shares at a floating NAV, rounded to the
fourth decimal place (e.g., $1.0000).
Each
Government and Retail Fund will use the amortized cost method of valuation, as
permitted by Rule 2a-7 under the Investment Company Act, to seek to maintain a
stable NAV of $1.00 per share. Under Rule 2a-7, each Fund may invest only in
U.S. dollar-denominated securities that are either (i) U.S. Government
Securities, (ii) issued by other investment companies that are money market
funds, or (iii) determined by the Investment Adviser to present minimal credit
risks to the Fund. Permissible investments must also meet certain risk-limiting
conditions relating to portfolio maturity, diversification, and liquidity. These
operating policies may be more restrictive than the fundamental policies set
forth in the Statement of Additional Information (the “SAI”). In order to
maintain a rating from a rating organization, each Fund may be subject to
additional investment restrictions.
◼
Taxable
Funds: Financial
Square Prime Obligations, Financial Square Money Market, Investor Money Market,
Financial Square Treasury Obligations, Financial Square Treasury Solutions and
Financial Square Government Funds.
◼
Tax-Advantaged
Funds: Financial
Square Treasury Instruments and Financial Square Federal Instruments
Funds.
◼
Tax-Exempt
Fund: Investor
Tax-Exempt Money Market Fund.
◼
The
Investors: The Funds
are generally designed for investors seeking a higher rate of return and
convenient liquidation privileges. In addition, the Government Funds and Retail
Funds are designed for investors seeking a stable NAV per share. The Funds are
particularly suitable for banks, corporations and other financial institutions
that seek investment of short-term funds for their own
37
accounts or
for the accounts of their customers, except that investments in the Retail Funds
are limited to accounts beneficially owned by natural persons. For more
information on the investor eligibility requirements for the Retail Funds,
please see “Shareholder
Guide—How to Buy Shares—Who May Purchase Administration Shares of the Retail
Funds?” below.
Shares of
the Financial Square Government Fund are intended to qualify as eligible
investments for federally chartered credit unions pursuant to Sections 107(7),
107(8) and 107(15) of the Federal Credit Union Act, Part 703 of the National
Credit Union Administration (“NCUA”) Rules and Regulations, and NCUA Letter
Number 155. The Financial Square Government Fund intends to review changes in
the applicable laws, rules and regulations governing eligible investments for
federally chartered credit unions, and to take such action as may be necessary
so that shares of the Financial Square Government Fund qualify as eligible
investments under the Federal Credit Union Act and the regulations thereunder.
Shares of the Financial Square Government Fund, however, may or may not qualify
as eligible investments for particular state-chartered credit unions. A
state-chartered credit union should consult qualified legal counsel to determine
whether the Financial Square Government Fund is a permissible investment under
the laws applicable to it.
◼
Investment
Restrictions: Each Fund
is subject to certain investment restrictions that are described in detail under
“Investment Restrictions” in the SAI. Fundamental investment restrictions and
the investment objective of each Fund (except as provided below) cannot be
changed without approval of a majority of the outstanding shares of that Fund.
The Financial Square Federal Instruments Fund’s and Investor Money Market Fund’s
investment objectives may be changed without shareholder approval upon sixty
days’ notice. All investment objectives and policies not specifically designated
as fundamental are non-fundamental and may be changed by the Board without
shareholder approval.
◼
Maximum
Remaining Maturity of Portfolio Investments: 13 months
(as determined pursuant to Rule 2a-7) at the time of purchase.
◼
Dollar-Weighted
Average Portfolio Maturity: Not more
than 60 days (as required by Rule 2a-7).
◼
Dollar-Weighted
Average Portfolio Life: Not more
than 120 days (as required by Rule 2a-7).
◼
Portfolio
Diversification: Diversification
can help a Fund reduce the risks of investing. In accordance with Rule 2a-7,
each Fund may not invest more than 5% of the value of its total assets at the
time of purchase in the securities of any single issuer and certain affiliates
of that issuer. However, each Fund may invest up to 25% of the value of its
total assets in the securities of a single issuer for up to three business days.
These limitations do not apply to cash, certain repurchase agreements, U.S.
Government Securities or securities of other investment companies that are money
market funds. Securities subject to demand features and guarantees are subject
to additional diversification requirements as described in the SAI.
◼
Portfolio
Liquidity: The Funds
are required to maintain a sufficient degree of liquidity necessary to meet
reasonably foreseeable redemption requests. In addition, each Fund (except for
the Investor Tax-Exempt Money Market Fund) must hold at least 10% of its total
assets in “daily liquid assets” and 30% of its total assets in “weekly liquid
assets.” The Investor Tax-Exempt Money Market Fund must hold at least 30% of its
total assets in “weekly liquid assets.” For these purposes, daily and weekly
liquid assets are calculated as of the end of each business day. Daily liquid
assets generally include: (a) cash; (b) direct obligations of the U.S.
Government; (c) securities that will mature or are subject to a demand feature
that is exercisable and payable within one business day; or (d) amounts
receivable and due unconditionally within one business day on pending sales of
portfolio securities. Weekly liquid assets generally include: (a) cash; (b)
direct obligations of the U.S. Government; (c) certain U.S. Government agency
discount notes with remaining maturities of 60 days or less; (d) securities that
will mature or are subject to a demand feature that is exercisable and payable
within five business days; or (e) amounts receivable and due unconditionally
within five business days on pending sales of portfolio securities. In addition,
a Fund may not acquire an illiquid security if, after the purchase, more than 5%
of the Fund’s total assets would consist of illiquid assets.
◼
Liquidity
Fees and Redemption Gates (Institutional Funds and Retail Funds
Only): Under Rule
2a-7, the Board is permitted to impose a liquidity fee on redemptions (up to 2%)
or a redemption gate that temporarily suspends redemptions (for up to 10
business days during a 90 day period) from an Institutional or Retail Fund, in
the event that the Institutional or Retail Fund’s weekly liquid assets fall
below certain designated thresholds. The Board generally expects that a
liquidity fee or redemption gate would be imposed, if at all, during periods of
extraordinary market stress. While the Board may, in its discretion, impose a
liquidity fee or redemption gate at any time after the weekly liquid assets of
an Institutional or Retail Fund falls below 30% of the Fund’s total assets, the
Board generally expects that a liquidity fee or redemption gate would be
imposed, if at all, as of the beginning of the next business day following the
announcement that the Fund has imposed the liquidity fee or redemption
gate.
Announcements
regarding the imposition of liquidity fees or redemption gates, or the
termination of liquidity fees or redemption gates, will be filed with the SEC on
Form N-CR and will be available on the Funds’ website
(http://www.gsamfunds.com). In addition, the Institutional and Retail Funds will
make such announcements through a supplement to the Prospectus and may also make
such announcements through a press release or by other means. For more
information on liquidity fees and redemption gates, please see “Shareholder
Guide—How To Sell Shares—What Are The Potential Restrictions On Institutional
And Retail Fund Redemptions?”
below.
◼
Financial
Square Federal Instruments Fund: The
Investment Adviser will generally seek to place purchase orders for the
Financial Square Federal Instruments Fund’s portfolio transactions with women-,
minority- and veteran-owned broker-dealers, subject to the Investment Adviser’s
duty to seek the best execution for the Fund’s orders.
38
Investment
Management Approach
|
INVESTMENT
PRACTICES AND SECURITIES |
Although
each Fund’s principal investment strategies are described in the
Summary—Principal Strategy sections of the Prospectus, the following table
identifies some of the investment techniques that may (but are not required to)
be used by the Funds in seeking to achieve their investment objectives. The
table also highlights the differences and similarities among the Funds in their
use of these techniques and other investment practices and investment
securities. Numbers in the table show allowable usage only; for actual usage,
consult the Funds’ annual/semi-annual reports. For more information about these
and other investment practices and securities, see Appendix A.
Each Fund
publishes on its website (http://www.gsamfunds.com) the following:
◼
A schedule
of its portfolio holdings (and certain related information as required by Rule
2a-7, including the Fund’s WAM and WAL) as of the last business day of each
month, no later than five business days after the end of the prior month. This
information will be available on the Funds’ website for at least six
months.
◼
A schedule
of its portfolio holdings on a weekly basis, with no lag required between the
date of the information and the date on which the information is disclosed. This
weekly holdings information will be available on the website until the next
publish date.
◼
A link to
an SEC website where you may obtain the Fund’s most recent 12 months of publicly
available portfolio holdings information, as filed with the SEC on Form N-MFP no
later than five business days after the end of each month.
◼
A graph
depicting the Fund’s daily and weekly liquid assets and daily net inflows and
outflows as of each business day for the preceding six months, as of the end of
the preceding business day.
◼
A graph
depicting the Fund’s current market-based NAV per share (rounded to the fourth
decimal place), as of each business day for the preceding six months, as of the
end of the preceding business day. A Fund’s current market-based NAV is based on
available market quotations of the Fund’s portfolio securities as provided by a
third party pricing vendor or broker on the preceding business day. The
mark-to-market valuation methodology includes marking to market all securities
of the Funds, including securities with remaining maturities of 60 days or less.
This market value NAV report is for informational purposes only with respect to
the Government and Retail Funds, which seek to maintain a stable NAV of $1.00
per share based on the amortized cost method of valuation.
◼
In the
event that a Fund files information regarding certain material events with the
SEC on Form N-CR, the Fund will disclose on its website certain information that
the Fund is required to report on Form N-CR. Such material events include the
provision of any financial support by an affiliated person of a Fund or a
decline in weekly liquid assets below 10% of the Fund’s total assets. This
information will appear on a Fund’s website no later than the same business day
on which the Fund files Form N-CR with the SEC and will be available on the
Fund’s website for at least one year.
In
addition, certain portfolio statistics (other than portfolio holdings
information) are available on a daily basis by calling 1-800-621-2550. A
description of the Funds’ policies and procedures with respect to the disclosure
of the Funds’ portfolio holdings is available in the Funds’
SAI.
39
Investment
Policies Matrix
|
|
Financial
Square Funds | |||
|
|
Financial
Square
Prime
Obligations |
Financial
Square
Money
Market |
Financial
Square
Treasury
Obligations |
Financial
Square
Treasury
Instruments |
|
U.S.
Treasury Obligations1
|
◼ |
◼ |
◼ |
◼ |
|
U.S.
Government Securities |
◼ |
◼ |
|
|
|
Bank
Obligations |
◼
Over 25% of total
assets may be
invested in U.S. and
foreign (US$)
banks2 |
◼
Over 25% of total
assets may be
invested in U.S. and
foreign (US$)
banks2 |
|
|
|
Commercial
Paper |
◼
U.S. and foreign
(US$) commercial
paper |
◼
U.S. and foreign
(US$) commercial
paper |
|
|
|
Short-Term
Obligations of Corporations and Other Entities |
◼
U.S. and foreign
(US$)
entities |
◼
U.S. and foreign
(US$)
entities |
|
|
|
Repurchase
Agreements |
◼ |
◼ |
◼ |
|
|
Asset-Backed
and Receivables-Backed Securities |
◼ |
◼ |
|
|
|
Foreign
Government Obligations (US$) |
◼4
|
◼4
|
|
|
|
Municipals |
◼5
|
◼5
|
|
|
|
Custodial
Receipts |
◼ |
◼ |
|
|
|
Investment
Companies |
◼
Up to 10% of total
assets in other
investment
companies7
|
◼
Up to 10% of total
assets in other
investment
companies7
|
|
|
|
Private
Activity Bonds |
◼ |
◼ |
|
|
|
Credit
Quality |
First
Tier10
|
First Tier10
|
First
Tier10
|
First Tier10
|
|
Summary
of Taxation for Distributions11
|
Taxable
federal and
state12
|
Taxable federal and
state12
|
Taxable
federal and
state12
|
Taxable federal and
generally exempt
from state
taxation |
|
Miscellaneous |
May
invest in
obligations of the
International Bank
for Reconstruction
and Development.
Reverse repurchase
agreements
(i.e.,
where the Fund is
the borrower of
cash) not
permitted. |
May invest in
obligations of the
International Bank
for Reconstruction
and Development.
Reverse repurchase
agreements
(i.e.,
where the Fund is
the borrower of
cash) not
permitted. |
Reverse
repurchase
agreements
(i.e.,
where the Fund is
the borrower of
cash) not
permitted. |
Under extraordinary
circumstances, may
hold U.S.
Government
Securities subject to
state taxation.
Reverse repurchase
agreements
(i.e.,
where the Fund is
the borrower of
cash) not
permitted. |
40
Investment
Policies Matrix
1
Issued
or guaranteed by the U.S. Treasury.
2
The
Fund may invest in U.S. dollar-denominated obligations of foreign banks. The
Financial Square Prime Obligations Fund may, but does not currently intend to,
invest in Eurodollar certificates of deposit.
4
The
Fund may invest in U.S. dollar-denominated obligations (limited to commercial
paper and other notes) issued or guaranteed by a foreign government. The Fund
may also invest in U.S. dollar-denominated obligations issued or guaranteed by
any entity located or organized in a foreign country that maintains a short-term
foreign currency rating in the highest short-term ratings category by the
requisite number of nationally recognized statistical rating organizations
(“NRSROs”). The Fund may not invest more than 25% of its total assets in the
securities of any one foreign government.
5
Will
only make such investments when yields on such securities are attractive
compared to those of other taxable investments.
7
This
percentage limitation does not apply to a Fund’s investments in investment
companies that are money market funds (including exchange-traded funds) where a
higher percentage limitation is permitted under the terms of an SEC exemptive
order or SEC exemptive rule.
10
First
Tier Securities are (a) securities rated in the highest short-term rating
category by at least two NRSROs, or if only one NRSRO has assigned a rating, by
that NRSRO; (b) securities issued or guaranteed by, or otherwise allow a Fund
under certain conditions to demand payment from, an entity with such ratings; or
(c) securities subject to repurchase agreements that are collateralized by First
Tier Securities. U.S. Government Securities are considered First Tier
Securities. Securities without short-term ratings may be purchased if they are
deemed to be of comparable quality by the Investment Adviser to First Tier
Securities. In addition, a Fund may generally rely on the credit quality of the
guarantee or demand feature in determining the credit quality of a security
supported by a guarantee or demand feature.
11
See
“Taxation” for an explanation of the tax consequences summarized in the table
above.
12
Taxable
in many states except for interest income distributions from U.S. Treasury
Obligations and certain U.S. Government Securities.
Note:
See Appendix A for a description of, and certain criteria applicable to, each of
these categories of investments.
41
|
|
Financial
Square Funds |
Investor
Funds | |||
|
|
Financial
Square
Treasury
Solutions |
Financial
Square
Government |
Financial
Square
Federal
Instruments |
Investor
Money
Market |
Investor
Tax-Exempt
Money
Market |
|
U.S.
Treasury Obligations1
|
◼ |
◼ |
◼ |
◼ |
|
|
U.S.
Government Securities |
|
◼ |
◼ |
◼ |
|
|
Bank
Obligations |
|
|
|
◼
Over
25% of total
assets
may be
invested
in U.S. and
foreign
(US$) banks |
|
|
Commercial
Paper |
|
|
|
◼
U.S.
and foreign
(US$)
commercial
paper |
◼
Tax-exempt
only |
|
Short-Term
Obligations of Corporations
and
Other Entities |
|
|
|
◼
U.S.
and foreign
(US$)
entities |
|
|
Repurchase
Agreements |
◼3
|
◼ |
|
◼ |
◼ |
|
Asset-Backed
and Receivables-Backed
Securities |
|
|
|
◼ |
|
|
Foreign
Government Obligations (US$) |
|
|
|
◼4
|
|
|
Municipals |
|
|
|
◼5
|
◼
At
least 80% of net
assets
in
tax-exempt
municipal
obligations
(except
in
extraordinary
circumstances)6
|
|
Custodial
Receipts |
|
|
|
◼ |
◼ |
|
Investment
Companies |
|
◼
Up to
10% of total
assets
in other
investment
companies7
|
|
◼
Up to
10% of total
assets
in other
investment
companies7
|
◼
Up to
10% of total
assets
in other
investment
companies7
|
|
Private
Activity Bonds |
|
|
|
◼ |
◼
Does
not intend to
invest
if subject to
AMT8,9
|
|
Credit
Quality |
First
Tier10
|
First
Tier10
|
First
Tier10
|
First
Tier10
|
First
Tier10
|
|
Summary
of Taxation for Distributions11
|
Taxable
federal and
state12
|
Taxable
federal and
state12
|
Taxable
federal and
generally
exempt
from
state taxation |
Taxable
federal and
state12
|
Tax-exempt
federal
and
taxable state13
|
|
Miscellaneous |
Reverse
repurchase
agreements
(i.e.,
where
the Fund is
the
borrower of
cash)
not permitted. |
Reverse
repurchase
agreements
(i.e.,
where
the Fund is
the
borrower of
cash)
not permitted. |
Under
extraordinary
circumstances,
may
hold
U.S.
Government
Securities
subject to
state
taxation.
Reverse
repurchase
agreements
(i.e.,
where
the Fund is
the
borrower of
cash)
not permitted. |
May
invest in
obligations
of the
International
Bank
for
Reconstruction
and
Development.
Reverse
repurchase
agreements
(i.e.,
where
the Fund is
the
borrower of
cash)
not permitted. |
May
(but does not
currently
intend to)
invest
up to 20% of
net
assets in
securities
subject to
AMT
and may
temporarily
invest
in the
taxable
money
market
instruments
described
herein.
Reverse
repurchase
agreements
(i.e.,
where
the Fund is
the
borrower of
cash)
not permitted. |
42
Investment
Policies Matrix
1
Issued
or guaranteed by the U.S. Treasury.
3
The
Fund may only enter into repurchase agreements with the Federal Reserve Bank of
New York.
4
The
Fund may invest in U.S. dollar-denominated obligations (limited to commercial
paper and other notes) issued or guaranteed by a foreign government. The Fund
may also invest in U.S. dollar-denominated obligations issued or guaranteed by
any entity located or organized in a foreign country that maintains a short-term
foreign currency rating in the highest short-term ratings category by the
requisite number of nationally recognized statistical rating organizations
(“NRSROs”). The Fund may not invest more than 25% of its total assets in the
securities of any one foreign government.
5
Will
only make such investments when yields on such securities are attractive
compared to those of other taxable investments.
6
The
Investment Adviser ordinarily expects that 100% of the Fund’s assets will be
invested in municipal obligations, but the Fund may invest in short-term taxable
instruments for temporary investment purposes.
7
This
percentage limitation does not apply to a Fund’s investments in investment
companies that are money market funds (including exchange-traded funds) where a
higher percentage limitation is permitted under the terms of an SEC exemptive
order or SEC exemptive rule.
8
If
such policy should change, private activity bonds subject to AMT would not
exceed 20% of the Fund’s net assets under normal market conditions.
9
No
more than 25% of the value of the Fund’s total assets may be invested in
industrial development bonds or similar obligations where the non-governmental
entities supplying the revenues from which such bonds or obligations are to be
paid are in the same industry.
10
First
Tier Securities are (a) securities rated in the highest short-term rating
category by at least two NRSROs, or if only one NRSRO has assigned a rating, by
that NRSRO; (b) securities issued or guaranteed by, or otherwise allow a Fund
under certain conditions to demand payment from, an entity with such ratings; or
(c) securities subject to repurchase agreements that are collateralized by First
Tier Securities. U.S. Government Securities are considered First Tier
Securities. Securities without short-term ratings may be purchased if they are
deemed to be of comparable quality by the Investment Adviser to First Tier
Securities. In addition, a Fund may generally rely on the credit quality of the
guarantee or demand feature in determining the credit quality of a security
supported by a guarantee or demand feature.
11
See
“Taxation” for an explanation of the tax consequences summarized in the table
above.
12
Taxable
in many states except for interest income distributions from U.S. Treasury
Obligations and certain U.S. Government Securities.
13
Taxable
except for distributions from interest on obligations of an investor’s state of
residence in certain states.
Note:
See Appendix A for a description of, and certain criteria applicable to, each of
these categories of investments.
43
Risks of
the Funds
You could
lose money by investing in the Fund (which, for the remainder of this
Prospectus, refers to one or more of the Funds offered in this Prospectus). An
investment in the Fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency. The
principal risks of the Fund are discussed in the Summary sections of the
Prospectus. The following section provides additional information on the risks
that apply to the Fund, which may result in a loss of your investment. The risks
applicable to the Fund are presented below in alphabetical order, and not in the
order of importance or potential exposure. The Fund should not be relied upon as
a complete investment program. There can be no assurance that the Fund will
achieve its investment objective.
|
|
Financial
Square Funds |
Investor
Funds | |||||||
|
|
Institutional
Funds |
Government
Funds |
Retail
Funds | ||||||
|
✓ Principal
Risk
• Additional
Risk |
Prime
Obligations
Fund |
Money
Market
Fund |
Treasury
Obligations
Fund |
Treasury
Instruments
Fund |
Treasury
Solutions
Fund |
Government
Fund |
Federal
Instruments
Fund |
Money
Market
Fund |
Tax-Exempt
Money
Market
Fund |
|
Banking
Industry |
✓ |
✓ |
|
|
|
|
|
✓ |
|
|
Credit/Default |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Cybersecurity |
• |
• |
• |
• |
• |
• |
• |
• |
• |
|
Floating
and Variable Rate
Obligations |
• |
• |
• |
• |
• |
• |
• |
• |
• |
|
Floating
NAV |
✓ |
✓ |
|
|
|
|
|
|
|
|
Foreign |
✓ |
✓ |
|
|
|
|
|
✓ |
|
|
Geographic
and Sector |
|
|
|
|
|
|
|
|
✓ |
|
Interest
Rate |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Large
Shareholder Transactions |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Liquidity |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Management |
• |
• |
• |
• |
• |
• |
• |
• |
• |
|
Market |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Municipal |
✓ |
✓ |
|
|
|
|
|
✓ |
✓ |
|
Regulatory |
• |
• |
• |
• |
• |
• |
• |
• |
• |
|
Stable
NAV |
|
|
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Tax |
|
|
|
|
|
|
|
|
✓ |
|
U.S.
Government Securities |
✓ |
✓ |
|
|
|
✓ |
✓ |
✓ |
|
◼
Banking
Industry Risk—An adverse
development in the banking industry (domestic or foreign) may affect the value
of the Financial Square Prime Obligations Fund's, Financial Square Money
Market Fund's and Investor Money Market Fund's investments more than if
the Funds were not invested to such a degree in the banking
industry. The Financial Square Prime Obligations Fund, Financial Square
Money Market Fund and Investor Money Market Fund may invest more than 25%
of their total assets in bank obligations. Banks may be particularly
susceptible to certain economic factors such as interest rate changes, adverse
developments in the real estate market, fiscal and monetary policy and general
economic cycles. For example, deteriorating economic and business conditions can
disproportionately impact companies in the banking industry due to increased
defaults on payments by borrowers. Moreover, political and regulatory changes
can affect the operations and financial results of companies in the banking
industry, potentially imposing additional costs and expenses or restricting the
types of business activities of these companies.
◼
Credit/Default
Risk—An issuer
or guarantor of a security held by the Fund, or a bank or other financial
institution that has entered into a repurchase agreement with the Fund may
default on its obligation to pay interest and repay principal or default on any
other obligation. Even if such an entity does not default on a payment, an
instrument’s value may decline if the market believes that the entity has become
less able or willing to make timely payments. In addition, with respect to the
Investor Tax-Exempt Money Market Fund, this includes the risk of default on
letters of credit, guarantees or insurance policies that back municipal
securities. The credit quality of the Fund’s portfolio securities or instruments
may meet the Fund’s credit quality requirements at the time of purchase but then
deteriorate thereafter, and such a deterioration can occur rapidly. In certain
instances, the downgrading or default of a single holding or guarantor of the
Fund’s holdings may impair the Fund’s liquidity and have the potential to cause
significant NAV deterioration. These
risks are
heightened in market environments where interest rates
are
rising.
◼
Cybersecurity
Risk—The Fund
may be susceptible to operational and information security risks resulting from
cyber-attacks. Cyber-attacks include, among others, stealing or corrupting
confidential information and other data that is maintained online or
44
Risks
of the Funds
digitally for financial
gain, denial-of-service attacks on websites causing operational disruption, and
the unauthorized release of confidential information and other data.
Cyber-attacks have the ability to cause significant disruptions and impact
business operations; to result in financial losses; to prevent shareholders from
transacting business; to interfere with the Fund’s calculation of NAV; and to
lead to violations of applicable privacy and other laws, regulatory fines,
penalties, reputational damage, reimbursement or other compensation costs and/or
additional compliance costs. Cyber-attacks affecting the Fund or its Investment
Adviser, custodian, Transfer Agent, or other third-party service providers may
adversely impact the Fund and its shareholders.
◼
Floating
and Variable Rate Obligations Risk—Floating
rate and variable rate obligations are debt instruments issued by companies or
other entities with interest rates that reset periodically (typically, daily,
monthly, quarterly, or semi-annually) in response to changes in the market rate
of interest on which the interest rate is based. For floating and variable rate
obligations, there may be a lag between an actual change in the underlying
interest rate benchmark and the reset time for an interest payment of such an
obligation, which could harm or benefit the Fund, depending on the interest rate
environment or other circumstances. In a rising interest rate environment, for
example, a floating or variable rate obligation that does not reset immediately
would prevent the Fund from taking full advantage of rising interest rates in a
timely manner. However, in a declining interest rate environment, the Fund may
benefit from a lag due to an obligation’s interest rate payment not being
immediately impacted by a decline in interest rates.
Certain floating and
variable rate obligations have an interest rate floor feature, which prevents
the interest rate payable by the security from dropping below a specified level
as compared to a reference interest rate (the “reference rate”), such as the
London InterBank Offered Rate ("LIBOR") or Secured Overnight Financing Rate
(“SOFR”). Such a floor protects the Fund from losses resulting from a decrease
in the reference rate below the specified level. However, if the reference rate
is below the floor, there will be a lag between a rise in the reference rate and
a rise in the interest rate payable by the obligation, and the Fund may not
benefit from increasing interest rates for a significant amount of
time.
LIBOR
is the average
interest rate at which a selection of large global banks borrow from one
another, and has been widely used as a benchmark rate for adjustments to
floating and variable rate obligations. At the end of 2021, certain LIBORs
were discontinued, but the most widely used LIBORs may continue to be provided
on a representative basis until June 30, 2023. The unavailability or
replacement of LIBOR may affect the value, liquidity or return on certain Fund
investments and may result in costs incurred in connection with closing out
positions and entering into new trades. Any pricing adjustments to the Fund’s
investments resulting from a substitute reference rate may adversely affect the
Fund’s performance and/or NAV.
SOFR is a measure of the
cost of borrowing cash overnight, collateralized by the U.S. Treasury
securities, and is based on directly observable U.S. Treasury-backed repurchase
transactions.
◼
Floating
NAV Risk—The
Institutional Funds do not maintain a stable NAV per share. The value of an
Institutional Fund’s shares will be calculated to four decimal places (e.g.,
$1.0000) and will fluctuate with changes in the market values of the Fund’s
portfolio securities. When you sell your shares, they may be worth more or less
than what you originally paid for them. This may result in a capital gain or
loss.
◼
Foreign
Risk—When the
Fund invests in foreign securities, it may be subject to risk of loss not
typically associated with U.S. issuers. Loss may result because of more or less
foreign government regulation; less public information; less stringent investor
protections; less stringent accounting, corporate governance, financial
reporting and disclosure standards; less liquid, developed or efficient trading
markets, greater volatility and less economic, political and social stability in
the countries in which the Fund invests. Loss may also result from, among other
things, deteriorating economic and business conditions in other countries,
including the United States, regional and global conflicts, the imposition of
exchange controls (including repatriation restrictions), sanctions, foreign
taxes, confiscation of assets and property, trade restrictions (including
tariffs), expropriations and other government restrictions by the United States
and other governments, higher transaction costs, difficulty enforcing
contractual obligations or from problems in share registration, settlement or
custody. The Fund or the Investment Adviser may determine not to invest in, or
may limit its overall investment in, a particular issuer, country or geographic
region due to, among other things, heightened risks regarding repatriation
restrictions, confiscation of assets and property, expropriation or
nationalization. The Financial Square Prime Obligations Fund, Financial
Square Money Market Fund and Investor Money Market Fund or the Investment
Adviser may determine not to invest in, or may limit its overall investment in,
a particular issuer, country or geographic region due to, among other things,
heightened risks regarding repatriation restrictions, confiscation of assets and
property, expropriation or nationalization. The Financial Square Prime
Obligations Fund, Financial Square Money Market Fund and Investor Money Market
Fund may not invest more than 25% of their total assets in the securities of any
one foreign government. For more information about these risks, see Appendix
A.
◼
Geographic
and Sector Risk—If the Fund
invests a significant portion of its total assets in securities of issuers
within the same state, geographic region or economic sector, an adverse
economic, business, political, environmental or other development affecting that
state, region or sector may affect the value of the Fund’s investments more than
if its investments were not so focused.
◼
Interest
Rate Risk—During
periods of rising interest rates, the Fund’s yield (and the market value of its
investments) will tend to be lower than prevailing market rates; in periods of
falling interest rates, the Fund’s yield (and the market value of its
investments) will
45
tend to be higher. The Fund
may face a heightened level of interest rate risk in connection with the type
and extent of certain monetary policy changes made by the Federal Reserve, such
as target interest rate changes. Changing interest rates may have unpredictable
effects on the markets,
may result in
heightened market volatility and may detract from Fund performance to the extent
the Fund is exposed to such interest rates and/or volatility. A low interest
rate environment poses additional risks to the Fund and may have an adverse
impact on the Fund’s ability to provide a positive yield to its shareholders,
pay expenses out of current income, or, at times, maintain a stable $1.00 share
price or minimize the volatility of the Fund’s NAV per share, as applicable,
and/or achieve its investment objective. A wide variety of market factors can
cause interest rates to rise or fall, including central bank monetary policy,
inflationary or deflationary pressures and changes in general market and
economic conditions. Fluctuations in interest rates may also affect the
liquidity of the Fund’s investments. A sudden or unpredictable increase in
interest rates may cause volatility in the market and decrease the liquidity of
the Fund's investments, which would make it more difficult for the Fund to sell
its investments at an advantageous time.
It is difficult to predict the magnitude, timing or direction of interest rate changes and the impact these changes will have on the markets in which the Fund invests.
It is difficult to predict the magnitude, timing or direction of interest rate changes and the impact these changes will have on the markets in which the Fund invests.
◼
Large
Shareholder Transactions Risk—The Fund
may experience adverse effects when certain large shareholders, such as other
funds, institutional investors (including those trading by use of
non-discretionary mathematical formulas), financial intermediaries (who may make
investment decisions on behalf of underlying clients and/or include the Fund in
their investment model), individuals, accounts and Goldman Sachs affiliates,
purchase or redeem large amounts of shares of the Fund. Such large shareholder
redemptions, which may occur rapidly or unexpectedly, may cause the Fund to sell
portfolio securities at times when it would not otherwise do so, which may
negatively impact the Fund’s NAV and liquidity. Similarly, large Fund share
purchases may adversely affect the Fund’s performance to the extent that the
Fund is delayed in investing new cash or otherwise maintains a larger cash
position than it ordinarily would. These transactions may also accelerate the
realization of taxable income to shareholders if such sales of investments
resulted in gains, and may also increase transaction costs. In addition, a large
redemption could result in the Fund’s current expenses being allocated over a
smaller asset base, leading to an increase in the Fund’s expense
ratio.
◼
Liquidity
Risk—The Fund
may make investments that are illiquid or that may become less liquid in
response to market developments or adverse investor perceptions. While the Fund
endeavors to maintain a high level of liquidity in its portfolio, the liquidity
of portfolio securities can deteriorate rapidly due to credit events affecting
issuers or guarantors, such as a credit rating downgrade, or due to general
market conditions and a lack of willing buyers. When there is no willing buyer
and investments cannot be readily sold at the desired time or price, the Fund
may have to accept a lower price or may not be able to sell the instrument at
all. An inability to sell one or more portfolio positions can adversely affect
the Fund’s ability to maintain a stable $1.00 share price or increase the
volatility of the Fund’s NAV per share, as applicable, or prevent the Fund from
being able to take advantage of other investment opportunities. Investments that
are illiquid or that trade in lower volumes may be more difficult to
value.
Illiquidity
can be caused
by a drop in overall market trading volume, an inability to find a willing
buyer, or legal restrictions on the securities’ resale. To the extent that the
traditional dealer counterparties that engage in fixed income trading do not
maintain inventories of bonds (which provide an important indication of their
ability to “make markets”) that keep pace with the growth of the bond markets
over time, relatively low levels of dealer inventories could lead to decreased
liquidity and increased volatility in the fixed income markets. Additionally,
market participants other than the Fund may attempt to sell fixed income
holdings at the same time as the Fund, which could cause downward pricing
pressure and contribute to illiquidity.
Liquidity risk may also
refer to the risk that the Fund will not be able to pay redemption proceeds
within the allowable time period because of unusual market conditions, declining
prices of the securities sold, an unusually high volume of redemption requests,
or other reasons. While the Fund reserves the right to meet redemption requests
through in-kind distributions, the Fund may instead choose to raise cash to meet
redemption requests through sales of portfolio securities or permissible
borrowings. If the Fund is forced to sell securities at an unfavorable time
and/or under unfavorable conditions, such sales may adversely affect the Fund’s
ability to maintain a stable $1.00 share price or minimize the volatility
of the Fund’s NAV per share, as applicable.
Certain
shareholders, including clients or affiliates of the Investment Adviser and/or
other funds managed by the Investment Adviser, may from time to time own or
control a significant percentage of the Fund’s shares. These shareholders may
include, for example, institutional investors, funds of funds, discretionary
advisory clients, and other shareholders whose buy-sell decisions are controlled
by a single decision maker. Redemptions by these shareholders of their shares of
the Fund, or a high volume of redemption requests generally, may further
increase the Fund’s liquidity risk and may impact the Fund’s NAV.
◼
Management
Risk—A strategy
used by the Investment Adviser may fail to produce the intended
results.
46
Risks
of the Funds
◼
Market
Risk—The value
of the securities in which the Fund invests may go up or down in response
to the prospects of individual companies, particular sectors or governments
and/or general economic conditions throughout the world. Price changes may be
temporary or last for extended periods. The Fund's investments may be
overweighted from time to time in one or more sectors or countries, which
will increase the Fund's exposure to risk of loss from adverse developments
affecting those sectors or countries.
Global economies and
financial markets are becoming increasingly interconnected, and conditions and
events in one country, region or financial market may adversely impact issuers
in a different country, region or financial market. Furthermore, local, regional
and global events such as war, military conflict, acts of terrorism, social
unrest, natural disasters, recessions, inflation, rapid interest rate changes,
supply chain disruptions, sanctions, the spread of infectious illness or other
public health threats could also adversely impact issuers, markets and
economies, including in ways that cannot necessarily be foreseen. The Fund could
be negatively impacted if the value of a portfolio holding were harmed by such
political or economic conditions or events. In addition, governmental and
quasi-governmental organizations have taken a number of unprecedented actions
designed to support the markets. Such conditions, events and actions may result
in greater market risk.
◼
Municipal
Securities Risk—Municipal securities are
subject to credit/default risk, interest rate risk and certain additional risks.
The Fund may be more sensitive to adverse economic, business or political
developments if it invests a substantial portion of its assets in the debt
securities of similar projects (such as those relating to education, health
care, housing, transportation, and utilities), industrial development bonds, or
in particular types of municipal securities (such as general obligation bonds,
private activity bonds and moral obligation bonds). The Fund may also invest in
municipal securities indirectly (including by investing in tender option bonds).
While interest earned on municipal securities is generally not subject to
federal tax, any interest earned on taxable municipal securities is fully
taxable at the federal level and may be subject to tax at the state level.
Specific risks are associated with different types of municipal
securities. Certain of the municipalities in which the Fund may invest may
experience significant financial difficulties, which may lead to bankruptcy or
default.
With
respect to general obligation bonds, the full faith, credit and taxing power of
the municipality that issues a general obligation bond secures payment of
interest and repayment of principal. Timely payments depend on the issuer’s
credit quality, ability to raise tax revenues and ability to maintain an
adequate tax base. With respect to revenue bonds, payments of interest and
principal are made only from the revenues generated by a particular facility,
class of facilities or the proceeds of a special tax, or other revenue source,
and depends on the money earned by that source. Private activity bonds are
issued by municipalities and other public authorities to finance development of
industrial facilities for use by a private enterprise. The private enterprise
pays the principal and interest on the bond, and the issuer does not pledge its
full faith, credit and taxing power for repayment. If the private enterprise
defaults on its payments, the Fund may not receive any income or get its money
back from the investment. Moral obligation bonds are generally issued by special
purpose public authorities of a state or municipality. If the issuer is unable
to meet its obligations, repayment of these bonds becomes a moral commitment,
but not a legal obligation, of the state or municipality. Municipal notes are
shorter term municipal debt obligations. They may provide interim financing in
anticipation of, and are secured by, tax collection, bond sales or revenue
receipts. If there is a shortfall in the anticipated proceeds, the notes may not
be fully repaid and the Fund may lose money. In a municipal lease obligation,
the issuer agrees to make payments when due on the lease obligation. The issuer
will generally appropriate municipal funds for that purpose, but is not
obligated to do so. Although the issuer does not pledge its unlimited taxing
power for payment of the lease obligation, the lease obligation is secured by
the leased property. However, if the issuer does not fulfill its payment
obligation it may be difficult to sell the property and the proceeds of a sale
may not cover the Fund’s loss.
A tender option bond is a
municipal obligation having a relatively long maturity and bearing interest
at a fixed rate higher than prevailing short-term, tax-exempt rates. The bond is
typically issued in conjunction with the agreement of a third party, such as a
bank, broker-dealer or other financial institution, pursuant to which the
institution grants the security holder the option, at periodic intervals, to
tender its securities to the institution. Tender option bonds involve structural
complexities and potential additional risks, such as the risk that the
counterparty will not fulfill its contractual obligations or the risk that the
Fund will not be considered the owner of a tender option bond for federal income
tax purposes, and thus will not be entitled to treat such interest as exempt
from federal income tax. Certain tender option bonds may be illiquid or may
become illiquid as a result of a credit rating downgrade, a payment default or a
disqualification from tax-exempt status.
In
addition, third party credit quality or liquidity enhancements are frequently a
characteristic of the structure of municipal securities purchased by money
market funds. Problems encountered by such third parties (such as municipal
security insurers or banks issuing a liquidity enhancement facility), including
credit rating downgrades or changes in the market’s perception of
creditworthiness, may negatively impact a municipal security even though the
related municipal issuer is not experiencing problems.
◼
Regulatory
Risk—The SEC
and other government agencies continue to review the regulation of money market
funds and may implement certain regulatory changes in the future. These and
other legal or regulatory changes may negatively impact the Fund. In December
2021, the SEC proposed amendments to Rule 2a-7 that could, among other things,
require the Fund to maintain a higher
47
percentage
of its portfolio in liquid assets and, with respect to an Institutional Fund,
require such Fund to implement certain pricing mechanisms that impose costs on
Fund redemptions. It is not presently possible to predict whether these proposed
or other changes will be implemented and the ultimate effect that any such
changes may have on the Fund.
◼
Stable
NAV Risk—The
Government and Retail Funds may not be able to maintain a stable $1.00 share
price at all times. If any money market fund that intends to maintain a stable
NAV fails to do so (or if there is a perceived threat of such a failure), other
such money market funds, including the Government and Retail Funds, could be
subject to increased redemption activity, which could adversely affect the
Fund’s NAV. The Government and Retail Funds may, among other things, reduce or
withhold any income and/or gains generated from its investments to the extent
necessary to maintain a stable $1.00 share price. Shareholders of the Government
and Retail Funds should not rely on or expect the Investment Adviser or an
affiliate to purchase distressed assets from the Fund, make capital infusions
into the Fund, enter into capital support agreements with the Fund or take other
actions to help the Fund maintain a stable $1.00 share price.
◼
Tax
Risk—Future
legislative or administrative changes or court decisions may materially affect
the value of the Investor Tax-Exempt Money Market Fund’s portfolio holdings
and/or the ability of the Fund to pay federal tax-exempt dividends. This Fund
would not be a suitable investment within IRAs, other tax-exempt or tax-deferred
accounts, or for investors who are not sensitive to the federal tax consequences
of their investments.
◼
U.S.
Government Securities Risk—The U.S.
government may not provide financial support to U.S. government agencies,
instrumentalities or sponsored enterprises if it is not obligated to do so by
law. Certain U.S. Government Securities , including securities issued by the
Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage
Corporation (“Freddie Mac”) and the Federal Home Loan Banks, are neither issued
nor guaranteed by the U.S. Treasury and, therefore, are not backed by the full
faith and credit of the United States. The maximum potential liability of the
issuers of some U.S. Government Securities held by the Fund may greatly exceed
their current resources, including any legal right to support from the U.S.
Treasury. It is possible that issuers of U.S. Government Securities will not
have the funds to meet their payment obligations in the future. Fannie Mae and
Freddie Mac have been operating under conservatorship, with the Federal Housing
Finance Agency (“FHFA”) acting as their conservator, since September 2008. The
entities are dependent upon the continued support of the U.S. Department of the
Treasury and FHFA in order to continue their business operations. These factors,
among others, could affect the future status and role of Fannie Mae and Freddie
Mac and the value of their securities and the securities which they guarantee.
Additionally, the U.S. government and its agencies and instrumentalities do not
guarantee the market values of their securities, which may
fluctuate.
More
information about the Fund’s portfolio securities and investment techniques, and
their associated risks, is provided in Appendix A. You should consider the
investment risks discussed in this section and in Appendix A. Both are important
to your investment choice.
48
Service
Providers
|
INVESTMENT
ADVISERS |
|
Investment
Adviser |
Financial
Square Funds |
Investor
Funds |
|
Goldman
Sachs Asset Management, L.P. (“GSAM”)
200
West Street
New
York, New York 10282 |
Prime
Obligations
Money
Market
Treasury
Obligations
Treasury
Instruments
Treasury
Solutions
Government
Federal
Instruments |
Money
Market
Tax-Exempt
Money Market
|
GSAM has been registered as
an investment adviser with the SEC since 1990 and is an indirect, wholly-owned
subsidiary of The Goldman Sachs Group, Inc. and an affiliate of Goldman Sachs.
Founded in 1869, The Goldman Sachs Group, Inc. is a publicly-held financial
holding company and a leading global investment banking, securities and
investment management firm. As of December 31, 2022, GSAM, including its
investment advisory affiliates, had assets under supervision of approximately
$2.30 trillion.
The
Investment Adviser provides day-to-day advice regarding the Fund’s portfolio
transactions. The Investment Adviser makes the investment decisions for the Fund
and places purchase and sale orders for the Fund’s portfolio transactions in
U.S. and foreign markets. As permitted by applicable law and exemptive relief
obtained by the Investment Adviser, Goldman Sachs and the Fund, these orders may
be directed to any broker-dealers, including Goldman Sachs and its affiliates.
While the Investment Adviser is ultimately responsible for the management of the
Fund, it is able to draw upon the research and expertise of its asset management
affiliates for portfolio decisions and management with respect to certain
portfolio securities. In addition, the Investment Adviser has access to the
research and certain proprietary technical models developed by Goldman Sachs
(subject to legal, internal, regulatory and Chinese Wall restrictions), and will
apply quantitative and qualitative analysis in determining the appropriate
allocations among categories of issuers and types of securities.
The
Investment Adviser also performs the following additional services for the Fund
(to the extent not performed by others pursuant to agreements with the
Fund):
◼
Supervises
all non-advisory operations of the Fund
◼
Provides
personnel to perform necessary executive, administrative and clerical services
to the Fund
◼
Arranges
for the preparation of all required tax returns, reports to shareholders,
prospectuses and statements of additional information and other reports filed
with the SEC and other regulatory authorities
◼
Maintains
the records of the Fund
◼
Provides
office space and all necessary office equipment and services
An
investment in the Fund may be negatively impacted because of the operational
risks arising from factors such as processing errors and human errors,
inadequate or failed internal or external processes, failures in systems and
technology, changes in personnel, and errors caused by third-party service
providers or trading counterparties. Although the Fund attempts to minimize such
failures through controls and oversight, it is not possible to identify all of
the operational risks that may affect the Fund or to develop processes and
controls that completely eliminate or mitigate the occurrence of such failures.
The Fund and its shareholders could be negatively impacted as a
result.
Pursuant to
SEC exemptive orders, certain Funds may enter into principal transactions in
certain money market instruments, including repurchase agreements, with Goldman
Sachs.
49
|
MANAGEMENT
FEES AND OTHER EXPENSES |
As
compensation for its services and its assumption of certain expenses, the
Investment Adviser is entitled to the following fees, computed daily and payable
monthly, at the annual rates listed below (as a percentage of each respective
Fund’s average daily net assets):
|
Financial
Square Funds |
Contractual
Rate |
Actual
Rate
For
the Fiscal
Year
Ended
November
30, 2022* |
|
Prime
Obligations |
0.16% |
0.16% |
|
Money
Market |
0.16% |
0.15% |
|
Treasury
Obligations |
0.18% |
0.16% |
|
Treasury
Instruments |
0.18% |
0.15% |
|
Treasury
Solutions |
0.18% |
0.16% |
|
Government |
0.16% |
0.13% |
|
Federal
Instruments |
0.18% |
0.15% |
|
Investor
Funds |
|
|
|
Money
Market Fund |
0.16% |
0.16% |
|
Tax-Exempt
Money Market Fund |
0.16% |
0.14% |
*
The
Actual Rate may not correlate to the Contractual Rate as a result of management
fee waivers that may be in effect from time to time.
The Investment Adviser may
waive a portion of its management fee, including fees earned as the Investment
Adviser to any of the affiliated funds in which the Fund invests, except those
management fees it earns from the Fund’s investments of cash collateral received
in connection with securities lending transactions in affiliated funds, from
time to time, and may discontinue or modify any such waivers in the future,
consistent with the terms of any fee waiver arrangements that may be in place.
The Investment Adviser may voluntarily waive a portion of its management fees,
and these waivers may exceed what is stipulated in any fee waiver arrangements.
These temporary waivers may be modified or terminated at any time at the option
of the Investment Adviser, without shareholder approval.
The Investment Adviser has
agreed to reduce or limit each Fund’s “Other Expenses” (excluding acquired fund
fees and expenses, administration fees, transfer agency fees and expenses,
taxes, interest, brokerage fees, expenses of shareholder meetings, litigation
and indemnification, and extraordinary expenses) equal on an annualized basis to
0.014% of each Fund’s average daily net assets through at least March
29, 2024, and prior to such
date the Investment Adviser may not terminate this expense limitation
arrangement without the approval of the Board of Trustees. The expense
limitation arrangement may be modified or terminated at any time at the option
of the Investment Adviser and without shareholder approval after such date,
although the Investment Adviser does not presently intend to do so. A Fund’s
“Other Expenses” or “Total Annual Fund Operating Expenses” (as applicable) may
be further reduced by any custody and transfer agency fee credits received by
the Fund.
A discussion regarding the
basis for the Board of Trustees’ approval of the Management Agreements for the
Funds in 2022 is available in the Funds’ Annual Report dated November 30,
2022.
|
DISTRIBUTOR
AND TRANSFER AGENT |
Goldman Sachs, 200 West
Street, New York, NY 10282, serves as the exclusive distributor (the
“Distributor”) of the Fund’s shares. Goldman Sachs, P.O.
Box 806395,
Chicago, IL 60680-4125, also serves as the Fund’s transfer agent (the “Transfer
Agent”) and, as such, performs various shareholder servicing
functions.
For its
transfer agency services, Goldman Sachs is entitled to receive a transfer agency
fee equal, on an annualized basis, to 0.01% of average daily net assets of the
Fund. Goldman Sachs may voluntarily agree to waive all or a portion of the
Fund’s transfer agency fees. These temporary waivers may be modified or
terminated at any time at the option of Goldman Sachs, without shareholder
approval.
From time
to time, Goldman Sachs or any of its affiliates may purchase and hold shares of
the Fund. Goldman Sachs and its affiliates reserve the right to redeem at any
time some or all of the shares acquired for their own account.
50
Service
Providers
|
ACTIVITIES
OF GOLDMAN SACHS AND ITS AFFILIATES AND OTHER
ACCOUNTS
MANAGED BY GOLDMAN SACHS |
The
involvement of the Investment Adviser, Goldman Sachs and their affiliates in the
management of, or their interest in, other accounts and other activities of
Goldman Sachs will present conflicts of interest with respect to the Fund and
will, under certain circumstances, limit the Fund’s investment activities.
Goldman Sachs is a worldwide, full service investment banking, broker dealer,
asset management and financial services organization and a major participant in
global financial markets that provides a wide range of financial services to a
substantial and diversified client base that includes corporations, financial
institutions, governments and individuals. As such, it acts as a broker-dealer,
investment adviser, investment banker, underwriter, research provider,
administrator, financier, adviser, market maker, trader, prime broker,
derivatives dealer, clearing agent, lender, counterparty, agent, principal,
distributor, investor or in other commercial capacities for accounts or
companies or affiliated or unaffiliated investment funds (including pooled
investment vehicles and private funds) in which one or more accounts, including
the Fund, invest. In those and other capacities, Goldman Sachs and its
affiliates advise and deal with clients and third parties in all markets and
transactions and purchase, sell, hold and recommend a broad array of
investments, including securities, derivatives, loans, commodities, currencies,
credit default swaps, indices, baskets and other financial instruments and
products for their own accounts or for the accounts of their customers and have
other direct and indirect interests in the global fixed income, currency,
commodity, equities, bank loans and other markets and the securities and issuers
in which the Fund may directly and indirectly invest. Thus, it is expected
that the Fund will have multiple business relationships with and will invest in,
engage in transactions with, make voting decisions with respect to, or obtain
services from entities for which Goldman Sachs and its affiliates perform or
seek to perform investment banking or other services. The Investment Adviser
and/or certain of its affiliates are the managers of the Goldman Sachs Funds.
The Investment Adviser and its affiliates earn fees from this and other
relationships with the Fund. Although management fees paid by the Fund to the
Investment Adviser and certain other fees paid to the Investment Adviser’s
affiliates are based on asset levels, the fees are not directly contingent on
Fund performance, and the Investment Adviser and its affiliates will still
receive significant compensation from the Fund even if shareholders lose money.
Goldman Sachs and its affiliates engage in proprietary trading and advise
accounts and funds which have investment objectives similar to those of the Fund
and/or which engage in and compete for transactions in the same types of
securities, currencies and instruments as the Fund. Goldman Sachs and its
affiliates will not have any obligation to make available any information
regarding their proprietary activities or strategies, or the activities or
strategies used for other accounts managed by them, for the benefit of the
management of the Fund. The results of the Fund’s investment activities,
therefore, will likely differ from those of Goldman Sachs, its affiliates, and
other accounts managed by Goldman Sachs, and it is possible that the Fund could
sustain losses during periods in which Goldman Sachs and its affiliates and
other accounts achieve significant profits on their trading for Goldman Sachs or
other accounts. In addition, the Fund may enter into transactions in which
Goldman Sachs and its affiliates or their other clients have an adverse
interest. For example, the Fund may take a long position in a security at the
same time that Goldman Sachs and its affiliates or other accounts managed by the
Investment Adviser or its affiliates take a short position in the same security
(or vice versa). These and other transactions undertaken by Goldman Sachs, its
affiliates or Goldman Sachs-advised clients may, individually or in the
aggregate, adversely impact the Fund. Transactions by one or more Goldman
Sachs-advised clients or the Investment Adviser may have the effect of diluting
or otherwise disadvantaging the values, prices or investment strategies of the
Fund. The Fund’s activities will, under certain circumstances, be limited
because of regulatory restrictions applicable to Goldman Sachs and its
affiliates, and/or their internal policies designed to comply with such
restrictions. As a global financial services firm, Goldman Sachs and its
affiliates also provide a wide range of investment banking and financial
services to issuers of securities and investors in securities. Goldman Sachs,
its affiliates and others associated with it are expected to create markets or
specialize in, have positions in and/or effect transactions in, securities of
issuers held by the Fund, and will likely also perform or seek to perform
investment banking and financial services for one or more of those issuers.
Goldman Sachs and its affiliates are expected to have business relationships
with and purchase or distribute or sell services or products from or to
distributors, consultants or others who recommend the Fund or who engage in
transactions with or for the Fund. For more information about conflicts of
interest, see the section entitled “Potential Conflicts of Interest” in the
SAI.
51
Distributions
Distributions
will be distributed monthly. You may choose to have distributions paid
in:
◼
Cash
◼
Additional
shares of the same Fund
◼
Shares of a
similar or an equivalent class of another Goldman Sachs Fund.
Special
restrictions may apply. See the SAI.
You may
indicate your election on your account application. Any changes may be submitted
in writing or via telephone, in some instances, to the Transfer Agent (either
directly or through your Intermediary) at any time. If you do not indicate any
choice, dividends and distributions will be reinvested automatically in
the applicable Fund.
The
election to reinvest distributions in additional shares will not affect the tax
treatment of such distributions, which will be treated as received by you and
then used to purchase the shares.
All or
substantially all of the Fund’s net investment income will be declared as a
dividend daily. Distributions will normally, but not always, be declared as of
the following times:
|
Financial
Square Funds |
Dividend
Declaration Time
(Eastern
Time) |
|
Prime
Obligations |
3:00
p.m. |
|
Money
Market |
3:00
p.m. |
|
Treasury
Obligations |
5:00
p.m. |
|
Treasury
Instruments |
3:00
p.m. |
|
Treasury
Solutions |
3:00
p.m. |
|
Government |
5:00
p.m. |
|
Federal
Instruments |
3:00
p.m. |
|
Investor
Funds |
|
|
Money
Market |
5:00
p.m. |
|
Tax-Exempt
Money Market |
2:00
p.m. |
Distributions
will be reinvested as of the last calendar day of each month. Cash distributions
normally will be paid on or about the first business day of each month. Net
short-term capital gains, if any, will be distributed in accordance with federal
income tax requirements and may be reflected in the Fund’s daily declared
dividends. Net short-term capital gains may at times represent a significant
component of the Fund’s daily declared dividends (e.g., during periods of
extremely low interest rates). The Fund may distribute at least annually other
realized capital gains, if any, after reduction by available realized capital
losses.
In order to
avoid excessive fluctuations in the amount of monthly capital gains
distributions, the Fund may defer or accelerate the timing of the distributions
of short-term capital gains (or any portion thereof). In addition, the Fund may
reduce or withhold any income and/or realized gains generated from its
investments to the extent necessary to maintain a stable $1.00 share price
or minimize principal volatility.
The
realized gains and losses are not expected to be of an amount which would affect
a Government or Retail Fund’s NAV of $1.00 per share.
52
Shareholder
Guide
The
following section will provide you with answers to some of the most frequently
asked questions regarding buying and selling the Funds’ Administration Shares.
Certain features of Administration Shares, including whether they transact at a
fluctuating or stable $1.00 share price, depend on a Fund’s classification as
either an “institutional,” “government” or “retail” fund, as shown
below:
|
Financial
Square Funds |
Investor
Funds | |
|
Institutional
Funds |
Government
Funds |
Retail
Funds |
|
◼ Money
Market Fund |
◼ Federal
Instruments Fund |
◼ Money
Market Fund |
|
◼ Prime
Obligations Fund |
◼ Government
Money Market Fund |
◼ Tax-Exempt
Money Market Fund |
|
|
◼ Treasury
Instruments Fund |
|
|
|
◼ Treasury
Obligations Fund |
|
|
|
◼ Treasury
Solutions Fund |
|
|
How
to Buy Shares |
How Can I Purchase
Administration Shares Of The Fund?
Generally,
Administration Shares may be purchased only through certain intermediaries,
including banks, trust companies, brokers, registered investment advisers and
other financial institutions (“Intermediaries”). Certain Intermediaries have
been authorized by Goldman Sachs Trust (the “Trust”) to accept purchase,
redemption or exchange orders on behalf of the Fund (except the Financial
Square Money Market Fund) for their customers (“Authorized Institutions”). You
should contact your Intermediary to learn whether it is authorized to accept
orders on behalf of the Fund (i.e., an Authorized Institution). Generally,
shareholders may not buy Administration Shares directly from a Fund.
Customers
of an Intermediary will normally give their order instructions to the
Intermediary, and the Intermediary will, in turn, place the order with the
Transfer Agent. Intermediaries are responsible for transmitting accepted orders
and payments to the Transfer Agent within the time period agreed upon by them
and will set times by which orders and payments must be received by them from
their customers. The Trust, Transfer Agent, Investment Adviser and their
affiliates will not be responsible for any loss in connection with orders that
are not transmitted to the Transfer Agent by an Intermediary on a timely
basis.
The Fund
will be deemed to have received an order for purchase, redemption or exchange of
Fund shares when the order is accepted in “proper form” by the Transfer Agent
(or, if applicable, by an Authorized Institution) on a business day, and the
order will be priced at the Fund’s current NAV per share next determined after
acceptance by the Transfer Agent (or, if applicable, by an Authorized
Institution). Orders that are transmitted by mail or fax will be priced at the
Fund’s current NAV per share determined on the day on which the order is
received and accepted in proper form by the Transfer Agent. Generally, these
orders will be priced at the last NAV per share determined on that day. For
shareholders that place trades directly with the Fund’s Transfer Agent, proper
form generally means that specific trade details and customer identifying
information must be received by the Transfer Agent at the time an order is
submitted. Intermediaries of the Fund may have different requirements regarding
what constitutes proper form for trade instructions. Please contact your
Intermediary for more information.
To place an
order for Fund shares, Intermediaries should either:
◼
Place an
order with Goldman Sachs at 1-800-621-2550 and wire federal funds;
◼
Place an
order through certain electronic trading platforms, if available (e.g., National
Securities Clearing Corporation (NSCC)) (the NSCC is not available for
orders for the Financial Square Money Market Fund); or
◼
With respect to shares of a
Government or Retail Fund only, send a check payable to Goldman Sachs
Funds—(Name of Fund and Class of Shares), P.O. Box 806395, Chicago, IL
60680-4125. The Fund will not accept checks drawn on foreign banks, third party
checks, temporary checks, cash or cash equivalents, e.g., cashier’s checks,
official bank checks, money orders, traveler’s cheques or credit card checks. In
limited situations involving the transfer of retirement assets, the Fund may
accept cashier’s checks or official bank checks. It is expected that checks will
be converted to federal funds within two business days of receipt. Checks will
not be accepted by an Institutional Fund.
It
is strongly recommended that payment for all Administration Shares be effected
by wiring federal funds.
53
Who May Purchase
Administration Shares Of The Retail Funds?
Investments
in the Retail Funds are limited to accounts beneficially owned by natural
persons. Natural persons are permitted to invest in the Retail Funds through
certain tax-advantaged savings accounts, trusts and other retirement and
investment accounts, including, for example:
◼
Participant-directed
defined contribution plans;
◼
Individual
retirement accounts;
◼
Simplified
employee pension arrangements;
◼
Simple
retirement accounts;
◼
Custodial
accounts;
◼
Deferred
compensation plans for government or tax-exempt organization
employees;
◼
Archer
medical savings accounts;
◼
College
savings plans;
◼
Health
savings account plans;
◼
Ordinary
trusts and estates of natural persons; or
◼
Certain
other retirement and investment accounts having an institutional decision maker
(e.g., a plan sponsor in certain retirement arrangements or an investment
adviser managing discretionary investment accounts).
In order to
make an initial investment in a Retail Fund, you must furnish to the Transfer
Agent or your Intermediary an account application that provides certain
information (e.g., Social Security Number or government-issued identification,
such as a driver’s license or passport) that confirms your eligibility to invest
in the Fund. Accounts that are not beneficially owned by natural persons (for
example, accounts not associated with a Social Security Number), such as those
opened by businesses, including small businesses, defined benefit plans and
endowments, are not eligible to invest in the Retail Funds. Accounts that are
not eligible to invest in the Retail Funds will be involuntarily redeemed from
the Funds.
Intermediaries
are required to adopt and implement policies, procedures and internal controls
reasonably designed to limit all beneficial owners of a Retail Fund to natural
persons and, upon request, provide the Fund with satisfactory evidence that such
policies, procedures and internal controls are in place. In addition,
Intermediaries are required to involuntarily redeem their customers that do not
satisfy the eligibility requirements, as set forth above.
What Should I Know
When I Purchase Administration Shares Through An Intermediary?
If shares
of the Fund are held in an account maintained and serviced by your Intermediary,
all recordkeeping, transaction processing and payments of distributions relating
to your account will be performed by your Intermediary, and not by the Fund and
its Transfer Agent. Since the Fund will have no record of your transactions, you
should contact your Intermediary to purchase, redeem or exchange shares, to make
changes in or give instructions concerning your account or to obtain information
about your account. The transfer of shares from an account with one Intermediary
to an account with another Intermediary involves special procedures and may
require you to obtain historical purchase information about the shares in the
account from Intermediary. If your Intermediary’s relationship with Goldman
Sachs is terminated, and you do not transfer your account to another
Intermediary, the Trust reserves the right to redeem your shares. The Trust will
not be responsible for any loss in an investor’s account or tax liability
resulting from a redemption.
Intermediaries
that invest in shares on behalf of their customers may charge fees directly to
their customer accounts in connection with their investments. You should contact
your Intermediary for information regarding such charges, as these fees, if any,
may affect the return such customers realize with respect to their investments.
These Intermediaries may receive payments from the Funds or Goldman Sachs for
the services provided by them with respect to Administration Shares. These
payments may be in addition to other payments borne by the Funds.
Intermediaries
may provide the following services in connection with their customers’
investments in Administration Shares:
◼
Administration
services
◼
Act,
directly or through an agent, as the sole shareholder of record
◼
Maintain
account records for customers
◼
Process
orders to purchase, redeem and exchange shares for customers
◼
Process
confirmation statements and payments for customers
Pursuant to
an administration plan adopted by the Board, Intermediaries are entitled to
receive payments for their services from the Trust. These payments are equal to
0.25% (annualized) of the average daily net assets of the Administration Shares
of the Funds that are attributable to or held in the name of an Intermediary for
its customers. Goldman Sachs may voluntarily agree to waive all or a portion of
a Fund’s administration fees. These temporary waivers may be modified or
terminated at any time at the option of Goldman Sachs, without shareholder
approval.
54
Shareholder
Guide
The
Investment Adviser, Distributor and/or their affiliates may make payments or
provide services to Intermediaries and other persons to promote the sale,
distribution and/or servicing of shares of the Funds and other Goldman Sachs
Funds. These payments are made out of the Investment Adviser’s, Distributor’s
and/or their affiliates’ own assets, and are not an additional charge to the
Fund. The payments are in addition to the administration fees described in
the Prospectus. Such payments are intended to compensate Intermediaries and
other persons for, among other things: marketing shares of the Funds and other
Goldman Sachs Funds, which may consist of payments relating to the Funds’
inclusion on preferred or recommended fund lists or in certain sales programs
sponsored by the recipients; access to an Intermediary’s registered
representatives or salespersons, including at conferences and other meetings;
assistance in training and education of personnel; marketing support; the
provision of analytical or other data to the Investment Adviser or its
affiliates relating to sales of shares of the Fund and other Goldman Sachs
Funds; the support or purchase of technology platforms/software; and/or other
specified services intended to assist in the distribution and marketing of the
Funds and other Goldman Sachs Funds, including provision of consultative
services to the Investment Adviser or its affiliates relating to marketing
and/or sale of shares of the Fund and other Goldman Sachs Funds. These payments
may also, to the extent permitted by applicable regulations, sponsor various
trainings and educational programs. The payments by the Investment Adviser,
Distributor and/or their affiliates, which are in addition to the fees paid for
these services by the Funds, may also compensate Intermediaries and other
persons for sub-accounting, sub-transfer agency, administrative, shareholder
processing and/or recordkeeping services. These additional payments may exceed
amounts earned on these assets by the Investment Adviser, Distributor and/or
their affiliates for the performance of these or similar services. The amount of
these additional payments is normally not expected to exceed 0.50% (annualized)
of the amount sold or invested through the recipients. In addition, certain
Intermediaries may have access to certain services from the Investment Adviser,
Distributor and/or their affiliates, including research reports, economic
analysis, and portfolio analysis, portfolio construction and similar tools and
software. In certain cases, Intermediaries may not pay for these products or
services or may only pay for a portion of the total cost of these products or
services. Please refer to the “Payments to Others (Including Intermediaries)”
section of the SAI for more information about these and similar payments and
services.
The
payments made by the Investment Adviser, Distributor and/or their affiliates and
the services provided by an Intermediary or other person may differ for
different Intermediaries and other persons. The presence of these and similar
payments, receipt of these services and the basis on which an Intermediary
compensates its registered representatives or salespersons may create an
incentive for a particular Intermediary, registered representative, salesperson
or other person to highlight, feature or recommend Funds based, at least in
part, on the level of compensation paid. You should contact your Intermediary,
or any other person that provides services to you, for more information about
the payments it receives and any potential conflicts of interest.
In addition
to Administration Shares, each Fund also offers other classes of shares to
investors. These other share classes are subject to different fees and expenses
(which affect performance) and are entitled to different services than
Administration Shares. Information regarding these other share classes may be
obtained from your Intermediary or from Goldman Sachs by calling the number on
the back cover of the Prospectus.
What Is My Minimum
Investment In The Funds?
|
Minimum
initial investment |
$10
million in Administration Shares of a Fund alone or in combination with
other
assets under the management of GSAM and its
affiliates |
|
Minimum
additional investment |
No
minimum |
The minimum
investment requirement is applied only at the intermediary level, and is not
applied to clients individually, for the following groups of investors: (i)
clients of bank or brokerage intermediaries offering capital market or treasury
services to corporations, non-profit organizations, certain other institutional
clients and, under certain limited circumstances, high-net worth individuals;
(ii) current or former clients of discretionary investment programs offered by
banks, broker-dealers, or other financial intermediaries; and (iii) certain
brokerage clients as determined from time to time by the Investment Adviser
and/or the Distributor. In determining the minimum investment requirement,
client assets may be aggregated with assets of its subsidiaries and certain
affiliates, if applicable.
The minimum
investment requirement does not apply to certain section 401(k), profit sharing,
money purchase pension, tax-sheltered annuity, defined benefit pension, or other
employee benefit plans that are sponsored by one or more employers (including
governmental or church employers) or employee organizations.
An
Intermediary may, however, impose a different minimum amount for initial and
additional investments in Administration Shares, and may establish other
requirements such as a minimum account balance. An Intermediary may redeem
Administration Shares held by non-complying accounts, and may impose a charge
for any special services.
The minimum
investment requirement may be waived for current and former officers, partners,
directors or employees of Goldman Sachs and/or any of its affiliates and any
Trustee or officer of the Trust. Please see “Shares of the Trust” in the SAI for
additional information about minimum investments.
55
What Else Should I
Know About Share Purchases?
The Trust
reserves the right to:
◼
Refuse to
open an account or require an Intermediary to refuse to open an account if you
fail to (i) provide a taxpayer identification number, a Social Security Number
or other government-issued identification (e.g., for an individual, a driver’s
license or passport); or (ii) certify that such number or other information is
correct (if required to do so under applicable law).
◼
Reject or
restrict any purchase or exchange order by a particular purchaser (or group of
related purchasers) for any reason in its discretion. With respect to the Retail
Funds, this includes when the Trust or Intermediary cannot reasonably verify
that the purchaser is a natural person or acting on behalf of an account
beneficially owned by a natural person.
◼
Close a
Fund to new investors from time to time and reopen any such Fund whenever it is
deemed appropriate by the Investment Adviser.
◼
Provide
for, modify or waive the minimum investment requirements.
◼
Modify the
manner in which Administration Shares are offered.
The Board
has not adopted policies and procedures with respect to frequent purchases and
redemptions of Fund shares in light of the nature and high quality of the Funds’
investments.
Shares of
the Funds are only registered for sale in the United States and certain of its
territories. Generally, shares of the Funds will only be offered or sold to
“U.S. persons” and all offerings or other solicitation activities will be
conducted within the United States, in accordance with the rules and regulations
of the Securities Act of 1933, as amended (“Securities Act”).
A Fund may
allow you to purchase shares through an Intermediary with securities instead of
cash if consistent with the Fund’s investment policies and operations and
approved by the Investment Adviser.
Notwithstanding
the foregoing, the Trust and Goldman Sachs reserve the right to reject or
restrict purchase or exchange requests from any investor. The Trust and Goldman
Sachs will not be liable for any loss resulting from rejected purchase or
exchange orders.
Please be
advised that abandoned or unclaimed property laws for certain states (to which
your account may be subject) require financial organizations to transfer
(escheat) unclaimed property (including shares of a Fund) to the appropriate
state if no activity occurs in an account for a period of time specified by
state law. For IRA accounts escheated to a state under these abandoned property
laws, the escheatment will generally be treated as a taxable distribution to
you; federal and any applicable state income tax will be withheld. This may
apply to your Roth IRA as well.
Customer
Identification Program. Federal
law requires the Funds to obtain, verify and record identifying information for
certain investors, which will be reviewed solely for customer identification
purposes, which may include the name, residential or business street address,
date of birth (for an individual), Social Security Number or taxpayer
identification number or other information, for each investor who opens an
account directly with the Funds. Applications without the required information
may not be accepted by the Funds. Throughout the life of your account, the Funds
may request updated identifying information in accordance with their Customer
Identification Program. After accepting an application, to the extent permitted
by applicable law or their Customer Identification Program, the Funds reserve
the right to: (i) place limits on transactions in any account until the identity
of the investor is verified; (ii) refuse an investment in the Funds; or (iii)
involuntarily redeem an investor’s shares and close an account in the event that
the Funds are unable to verify an investor’s identity or are unable to obtain
all required information. The Funds and their agents will not be responsible for
any loss or any tax liability in an investor’s account resulting from the
investor’s delay in providing all required information or from closing an
account and redeeming an investor’s shares pursuant to their Customer
Identification Program.
How Are Shares
Priced?
The price
you pay when you buy shares is a Fund’s next-determined NAV per share after the
Transfer Agent (or, if applicable, an Authorized Institution) has received and
accepted your order in proper form. The price you receive when you sell shares
is a Fund’s next-determined NAV per share after the Transfer Agent (or, if
applicable, an Authorized Institution) has received and accepted your order in
proper form, with the redemption proceeds reduced by any applicable charges. The
Funds generally calculate NAV as follows:
|
NAV
= |
(Value
of Assets of the Class)
–
(Liabilities of the Class) |
|
|
Number
of Outstanding Shares of the
Class |
◼
Institutional
Funds—Each
Institutional Fund is required to price its shares at a NAV per share reflecting
market-based values of its portfolio holdings (i.e., at a “floating” NAV)
rounded to the fourth decimal place (e.g., $1.0000). An Institutional Fund’s
investments for which market quotations are readily available are valued at
market value on the basis of quotations provided by pricing sources. If accurate
quotations are not readily available, if an Institutional Fund’s accounting
agent is unable for other reasons to facilitate pricing of individual securities
or calculate the Fund’s NAV, or if the Investment Adviser believes that such
quotations do not accurately reflect fair value, the fair value of the Fund’s
investments may be determined in good faith under
56
Shareholder
Guide
valuation procedures
approved by the Board. Thus, such pricing may be based on subjective judgments
and it is possible that the prices resulting from such valuation procedures may
differ materially from the value realized on a sale. The securities in which a
Fund invests do not typically have readily available market quotations because
these securities are not actively traded in the secondary markets.
Using fair
valuation involves the risk that the values used by a Fund to price its
investments may be different from those used by other investment companies and
investors to price the same investments.
Fixed income securities are
generally valued on the basis of prices (including evaluated prices) and
quotations provided by pricing sources. Pricing services may use matrix pricing
or valuation models, which utilize certain inputs and assumptions, including,
but not limited to, yield or price with respect to comparable fixed income
securities, to determine current value. Pricing services generally value fixed
income securities assuming orderly transactions of an institutional round lot
size, but the Fund may hold or transact in such securities in smaller odd lot
sizes. Odd lots may trade at lower prices than institutional round
lots.
Investments
in other open-end registered investment companies (if any), excluding
investments in ETFs, are valued based on the NAV of those open-end registered
investment companies (which may use fair value pricing as discussed in their
prospectuses). Investments in ETFs will generally be valued at the last sale
price or official closing price on the exchange on which they are principally
traded.
◼
Government
and Retail Funds—The
Government and Retail Funds seek to maintain a stable NAV per share of $1.00
based on the amortized cost method of valuation. This method involves valuing an
instrument at its cost and thereafter applying a constant amortization to
maturity of any discount or premium, regardless of the impact of fluctuating
interest rates on the market value of the investment. Amortized cost will
normally approximate market value. There can be no assurance that a Fund will be
able at all times to maintain a stable NAV per share of
$1.00.
The NAV per
share of each share class of the Funds is generally calculated by the Funds’
accounting agent at the following times on each business day:
|
Fund |
Daily
NAV
Calculation
Time(s) |
|
◼ Investor
Tax-Exempt Money Market |
2:00
p.m. Eastern Time |
|
◼ Financial
Square Prime Obligations |
3:00
p.m. Eastern Time |
|
◼ Financial
Square Federal Instruments |
|
|
◼ Financial
Square Treasury Instruments |
|
|
◼ Financial
Square Treasury Solutions |
|
|
◼ Financial
Square Government |
5:00
p.m. Eastern Time |
|
◼ Financial
Square Treasury Obligations |
|
|
◼ Investor
Money Market |
|
|
◼ Financial
Square Money Market |
8:00
a.m., 12:00 p.m. and 3:00 p.m. Eastern
Time |
◼
Shares of
the Government and Retail Funds will also generally be priced throughout
the day by the Funds’ accounting agent for the purpose of fulfilling intra-day
purchase or redemption orders. Except as provided below, Fund shares will be
priced on any day the New York Stock Exchange is open, except for days on which
the Federal Reserve Bank is closed for local holidays. Shares of the
Government and Retail Funds may be priced by the Funds’ accounting agent on days
on which the Federal Reserve Bank is closed for local holidays (i.e., Columbus
Day and Veterans Day). Fund shares will generally not be priced on any day the
New York Stock Exchange is closed, although Fund shares may be priced on days
when the New York Stock Exchange is closed if the Securities Industry and
Financial Markets Association (“SIFMA”) recommends that the bond markets remain
open for all or part of the day.
◼
On any
business day when the SIFMA recommends that the bond markets close early, each
Fund reserves the right to close at or prior to the SIFMA recommended closing
time. If a Fund does so, it will cease granting same business day credit for
purchase and redemption orders received after the Fund’s closing time and credit
will be given on the next business day.
◼
The Trust
reserves the right to advance the time by which purchase and redemption orders
must be received for same business day credit as otherwise permitted by the
SEC.
Most money
market securities settle on the same day as they are traded and are required to
be recorded and factored into the Fund’s NAV on the trade date (T). Investment
transactions not settling on the same day as they are traded may be recorded and
factored into a Fund’s first scheduled NAV calculation on the business day
following trade date (T+1), consistent with industry practice. The use of T+1
accounting generally does not, but may, result in a NAV that differs materially
from the NAV that would result if all transactions were reflected on their trade
dates.
57
Note:
The time at which transactions and shares are priced and the time by which
orders must be received may be changed in case of an emergency or if regular
trading on the New York Stock Exchange and/or the bond markets stopped at a time
other than its regularly scheduled closing time. In the event the New York Stock
Exchange and/or the bond markets do not open for business, the Trust may, but is
not required to, open one or more Funds for purchase, redemption and exchange
transactions if the Federal Reserve wire payment system is open. To learn
whether a Fund is open for business during this situation, please call the
appropriate phone number found on the back cover of the Prospectus.
Each Fund
relies on various sources to calculate its NAV. The ability of the Funds’
accounting agent to calculate the NAV per share of each share class of the Funds
is subject to operational risks associated with processing or human errors,
systems or technology failures, and errors caused by third party service
providers, data sources, or trading counterparties. Such failures may result in
delays in the calculation of a Fund’s NAV and/or the inability to calculate NAV
over extended time periods. The Funds may be unable to recover any losses
associated with such failures, and it may be necessary for alternative
procedures to be followed to price portfolio securities when determining a
Fund’s NAV. These risks are heightened for the Financial Square Money Market
Fund, which generally prices its shares multiple times per day. In the event of
operational or other disruptions or the imposition of a liquidity fee or
redemption gate, the Board has the ability to suspend one or more pricing times
of the Financial Square Money Market Fund and designate a new time at which the
Fund’s NAV per share will be calculated once per day without prior
notice.
When Do Shares Begin
Earning Dividends?
If a
purchase order is received by the Transfer Agent (or, if applicable, the
Authorized Institution) on a business day by the deadline specified below and
payment in federal funds is wired to and received by the Fund by the close of
the Federal Reserve wire transfer system (normally, 6:00 p.m. Eastern Time),
then dividends will begin to accrue on the same business day that the wire
purchase order is received:
|
Fund |
Deadline
for Same Business Day
Dividend
Accrual |
|
◼ Investor
Tax-Exempt Money Market |
2:00
p.m. Eastern Time |
|
◼ Financial
Square Money Market |
3:00
p.m. Eastern Time |
|
◼ Financial
Square Prime Obligations |
|
|
◼ Financial
Square Federal Instruments |
|
|
◼ Financial
Square Treasury Instruments |
|
|
◼ Financial
Square Treasury Solutions |
|
|
◼ Financial
Square Government |
5:00
p.m. Eastern Time |
|
◼ Financial
Square Treasury Obligations |
|
|
◼ Investor
Money Market |
|
If payment
is received on a business day after the deadline specified above, you will not
earn dividends on the day the purchase order is received. Also, in the event a
purchase order is placed by the deadline specified above but an anticipated wire
payment is not received by the Fund by the close of the Federal Reserve wire
transfer system that same day, your purchase will be cancelled and you may be
liable for any resulting losses or fees incurred by the Fund, the Transfer
Agent, or the Fund’s custodian. For purchase orders accompanied by check,
dividends will normally begin to accrue within two business days of the Transfer
Agent’s receipt of the check.
|
How
to Sell Shares |
How Can I Sell
Administration Shares Of The Funds?
Generally,
Administration Shares may be sold (redeemed) only through Intermediaries.
Customers of an Intermediary will normally give their redemption instructions to
the Intermediary, and the Intermediary will, in turn, place the order with the
Transfer Agent. On any business day a Fund is open, the Fund will generally
redeem its Administration Shares upon request at their NAV per share
next-determined after the Transfer Agent (or, if applicable, the Authorized
Institution) has received and accepted a redemption order in proper form, as
described under “How
To Buy Shares—How Can I Purchase Administration
Shares
Of The Funds?”
above.
Redemptions
may be requested via electronic trading platform (through your Intermediary), in
writing or by telephone (unless the Intermediary opts out of the telephone
redemption privilege on the account application). A Fund may transfer redemption
proceeds to an account with your Intermediary. In the alternative, your
Intermediary may request that redemption proceeds be sent to you by check or
wire (if the wire instructions are designated in the current records of the
Transfer Agent). You should contact your Intermediary to discuss redemptions and
redemption proceeds.
Redemptions
from an Institutional or Retail Fund may be subject to a liquidity fee or
redemption gate imposed by the Fund, as described under “How
To Sell Shares—What Are The Potential Restrictions On Institutional And Retail
Fund Redemptions?”
below.
58
Shareholder
Guide
When Do I Need A
Medallion Signature To Redeem Shares?
Generally,
a redemption request must be in writing and signed by an authorized person with
a Medallion signature guarantee if:
◼
You would
like the redemption proceeds sent to an address that is not your address of
record; or
◼
You would
like the redemption proceeds sent to a domestic bank account that is not
designated in the current records of the Transfer Agent.
A Medallion
signature guarantee must be obtained from a bank, brokerage firm or other
financial intermediary that is a member of an approved Medallion Guarantee
Program or that is otherwise approved by the Trust. A notary public cannot
provide a Medallion signature guarantee. The written request may be confirmed by
telephone with both the requesting party and the designated Intermediary to
verify instructions. Additional documentation may be required.
What Do I Need To
Know About Telephone Redemption Requests?
The Trust,
the Distributor and the Transfer Agent will not be liable for any loss you may
incur in the event that the Trust accepts unauthorized telephone redemption
requests that the Trust reasonably believes to be genuine. The Trust may accept
telephone redemption instructions from any person identifying himself or herself
as the owner of an account or the owner’s registered representative where the
owner has not declined in writing to use this service. Thus, you risk possible
losses if a telephone redemption is not authorized by you.
In an effort to prevent
unauthorized or fraudulent redemption and exchange requests by telephone,
Goldman Sachs and SS&C Global Investor
&
Distribution
Solutions, Inc. (“SS&C”) each employ reasonable procedures specified by the
Trust to confirm that such instructions are genuine. The following general
policies are currently in effect:
◼
Telephone
requests are recorded.
◼
Proceeds of
telephone redemption requests will be sent to your address of record or
authorized account designated in the current records of the Transfer Agent
(unless you provide written instructions and a Medallion signature guarantee,
indicating another address or account).
◼
For the
30-day period following a change of address, telephone redemptions will only be
filled by a wire transfer to the authorized account designated in the current
records of the Transfer Agent (see immediately preceding bullet point). In order
to receive the redemption by check during this time period, the redemption
request must be in the form of a written letter (a Medallion signature guarantee
may be required).
◼
The
telephone redemption option does not apply to Administration Shares held in an
account maintained and serviced by your Intermediary. If your Administration
Shares are held in an account with an Intermediary, you should contact your
registered representative of record, who may make telephone redemptions on your
behalf.
◼
The
telephone redemption option may be modified or terminated at any time without
prior notice.
Note:
It may be difficult to make telephone redemptions in times of unusual economic
or market conditions.
59
When Will Redemption
Proceeds Be Paid?
Redemption
proceeds will normally be paid to the domestic bank account designated in the
current records of the Transfer Agent, on the same day of the redemption order,
if the redemption order is accepted in proper form by the Transfer Agent or your
Authorized Institution, if any, by the times listed in the chart
below:
|
Fund
Receives Redemption Request |
Redemption
Proceeds |
Dividends |
|
◼ Investor
Tax-Exempt Money Market |
|
|
|
◼ By
2:00 p.m. Eastern Time |
Wired
same business day |
Not
earned on day request is accepted |
|
|
|
|
|
|
Checks
sent next business day |
Earned
on day request is accepted |
|
◼ Financial
Square Money Market |
|
|
|
◼ Financial
Square Prime Obligations |
|
|
|
◼ Financial
Square Federal Instruments |
|
|
|
◼ Financial
Square Treasury Instruments |
|
|
|
◼ Financial
Square Treasury Solutions |
|
|
|
◼ By
3:00 p.m. Eastern Time |
Wired
same business day |
Not
earned on day request is accepted |
|
|
|
|
|
|
Checks
sent next business day |
Earned
on day request is accepted |
|
◼ Financial
Square Government |
|
|
|
◼ Financial
Square Treasury Obligations |
|
|
|
◼ Investor
Money Market |
|
|
|
◼ By
5:00 p.m. Eastern Time |
Wired
same business day |
Not
earned on day request is accepted |
|
|
|
|
|
|
Checks
sent next business day |
Earned
on day request is accepted |
Redemption
proceeds will normally be paid by the close of the Federal Reserve wire transfer
system (normally, 6:00 p.m. Eastern Time). You will not earn a dividend on the
day a redemption order is accepted, except for redemption proceeds paid by
check, which earn a dividend on the day a redemption order is
accepted.
◼
Although
redemption proceeds will normally be paid as described above, under certain
circumstances (such as unusual market conditions or in cases of very large
redemptions or excessive trading), redemption proceeds may be paid the next
business day following receipt of a properly executed wire transfer redemption
request (or up to three business days later with respect to the Investor
Tax-Exempt Money Market Fund). Redemption requests or payments may be postponed
or suspended for longer than one day (or for longer than seven days with respect
to the Investor Tax-Exempt Money Market Fund) only for periods during which
there is a non-routine closure of the Federal Reserve wire payment system or
applicable Federal Reserve Banks or as permitted under those circumstances
specifically enumerated under Section 22(e) of the Investment Company Act and
Rule 22e-3 thereunder, namely if (i) the New York Stock Exchange is closed for
trading or trading is restricted; (ii) an emergency exists which makes the
disposal of securities owned by a Fund or the fair determination of the value of
a Fund’s net assets not reasonably practicable; (iii) the SEC, by order or
regulation, permits the suspension of the right of redemption; or (iv) a Fund,
as part of a liquidation of the Fund, has suspended redemption of
shares.
◼
If you are
selling shares you recently paid for by check, the Fund will pay you when your
check has cleared, which may take up to 15 days.
◼
If the
Federal Reserve Bank is closed on the day that the redemption proceeds would
ordinarily be wired, wiring the redemption proceeds may be delayed until the
Federal Reserve Bank reopens.
◼
To change
the bank wiring instructions designated in the current records of the Transfer
Agent, you must send written instructions signed by an authorized person
designated in the current records of the Transfer Agent. A Medallion signature
guarantee may be required if you are requesting a redemption in conjunction with
the change.
◼
None of the
Trust, Investment Adviser or Goldman Sachs assumes any responsibility for the
performance of your bank or Intermediary in the transfer process. If a problem
with such performance arises, you should deal directly with your bank or
Intermediary.
60
Shareholder
Guide
What Else Do I Need
To Know About Redemptions?
The
following generally applies to redemption requests:
◼
Additional
documentation may be required when deemed appropriate by the Transfer Agent. A
redemption request will not be in proper form until such additional
documentation has been received.
◼
Intermediaries
are responsible for the timely transmittal of redemption requests by their
customers to the Transfer Agent. In order to facilitate the timely transmittal
of redemption requests, Intermediaries may set times by which they must receive
redemption requests. Intermediaries may also require additional documentation
from you. The Trust, Transfer Agent, Investment Adviser and their affiliates
will not be responsible for any loss in connection with orders that are not
transmitted to the Transfer Agent by an Intermediary on a timely
basis.
The Trust
reserves the right to:
◼
Redeem your
shares in the event your Intermediary’s relationship with Goldman Sachs is
terminated and you do not transfer your account to another
Intermediary.
◼
Redeem your
shares if your account balance is below the required Fund minimum. The Funds
will give you 60 days prior written notice to allow you to purchase sufficient
additional shares of the Funds in order to avoid such redemption. Different
rules may apply to investors who have established brokerage accounts with
Goldman Sachs in accordance with the terms and conditions of their account
agreements.
◼
Redeem your
shares if a Fund determines that you do not meet its requirements concerning
investor eligibility as set forth in the Prospectus (e.g., for Retail Funds, if
the account is not beneficially owned by a natural person).
◼
Redeem your
shares in the case of actual or suspected threatening conduct or actual or
suspected fraudulent, suspicious or illegal activity by you or any other
individual associated with your account.
◼
Subject to
applicable law, redeem your shares in other circumstances determined by the
Board to be in the best interest of the Trust.
◼
Pay
redemptions by a distribution in-kind of securities (instead of cash). If you
receive redemption proceeds in-kind, you should expect to incur transaction
costs upon the disposition of those securities. In addition, if you receive
redemption proceeds in-kind, you will be subject to market gains or losses upon
the disposition of those securities.
◼
Reinvest
any amounts (e.g., dividends, distributions or redemption proceeds) which you
have elected to receive by check should your check remain uncashed for more than
180 days. No interest will accrue on amounts represented by uncashed checks.
Your check will be reinvested in your account at the NAV on the day of the
reinvestment. When reinvested, those amounts are subject to the risk of loss
like any Fund investment. If you elect to receive distributions in cash and a
check remains uncashed for more than 180 days, your cash election may be changed
automatically to reinvest and your future dividend and capital gains
distributions will be reinvested in the Fund at the NAV as of the date of
payment of the distribution. This provision may not apply to certain retirement
or qualified accounts, accounts with a non-U.S. address or closed accounts. Your
participation in a systematic withdrawal program may be terminated if a check
remains uncashed.
◼
Charge an
additional fee in the event a redemption is made via wire transfer.
Each Fund
typically expects to meet redemption requests by using holdings of cash or cash
equivalents and/or proceeds from the sale of portfolio holdings. In addition,
under stressed market conditions, as well as for other temporary or emergency
purposes, the Funds may distribute redemption proceeds in-kind (instead of
cash), access a line of credit or overdraft facility, or borrow through other
sources to meet redemption requests.
None of the
Trust, Investment Adviser, or Goldman Sachs will be responsible for any loss in
an investor’s account or tax liability resulting from an involuntary
redemption.
Can I Exchange My
Investment From One Goldman Sachs Fund To Another Goldman Sachs
Fund?
You may
exchange Administration Shares of a Goldman Sachs Fund at NAV for certain shares
of another Goldman Sachs Fund. However, investors are not permitted to exchange
shares from or into the Financial Square Money Market Fund.
The
exchange privilege may be materially modified or withdrawn at any time upon 60
days written notice. You should contact your Intermediary to arrange for
exchanges of shares of a Fund for shares of another Goldman Sachs
Fund.
You should
keep in mind the following factors when making or considering an
exchange:
◼
You should
obtain and carefully read the prospectus of the Goldman Sachs Fund you are
acquiring before making an exchange. You should be aware that not all Goldman
Sachs Funds offer all share classes.
◼
Currently,
the Funds do not impose any charge for exchanges, although the Funds may impose
a charge in the future.
◼
All
exchanges which represent an initial investment in a Goldman Sachs Fund must
satisfy the minimum initial investment requirement of that Fund. This
requirement may be waived at the discretion of the Trust. Exchanges into a Fund
need not meet the traditional minimum initial investment requirements for that
Fund if the entire balance of the original Goldman Sachs Fund account is
exchanged.
61
◼
Exchanges
are available only in states where exchanges may be legally made.
◼
It may be
difficult to make telephone exchanges in times of unusual economic or market
conditions.
◼
Goldman Sachs and SS&C
may use reasonable procedures described above in “How To
Sell Shares—What Do I Need To Know About Telephone Redemption
Requests?” in
an effort to prevent unauthorized or fraudulent telephone exchange
requests.
◼
Normally, a
telephone exchange will be made only to an identically registered
account.
◼
A Medallion
signature guarantee may be required.
◼
Exchanges
into a Goldman Sachs Fund or certain shares of a Goldman Sachs Fund that are
closed to new or certain types of investors, in accordance with its investor
eligibility requirements, may be restricted.
◼
Exchanges
from an Institutional or Retail Fund into another Goldman Sachs Fund may be
subject to a liquidity fee or redemption gate imposed by the Institutional or
Retail Fund, as described in “How To Sell Shares—What Are The Potential
Restrictions On Institutional And Retail Fund Redemptions?” below.
For federal
income tax purposes, an exchange from one Goldman Sachs Fund to another is
treated as a redemption of the shares surrendered in the exchange, on which you
may be subject to tax, followed by a purchase of shares received in the
exchange. You should consult your tax adviser concerning the tax consequences of
an exchange.
What Are The
Potential Restrictions On Institutional And Retail Fund Redemptions?
Under Rule
2a-7, the Board is permitted to impose a liquidity fee on redemptions (up to 2%)
or temporarily restrict redemptions from an Institutional or Retail Fund for up
to 10 business days during a 90-day period (a “redemption gate”), in the event
that the Fund’s weekly liquid assets fall below the following
thresholds:
◼
30%
weekly liquid assets—If the
weekly liquid assets of an Institutional or Retail Fund falls below 30% of the
Fund’s total assets as of the end of a business day, and the Board determines it
is in the best interests of the Fund, the Board may impose a liquidity fee of no
more than 2% of the amount redeemed and/or a redemption gate that temporarily
suspends the right of redemption.
◼
10%
weekly liquid assets—If the
weekly liquid assets of an Institutional or Retail Fund falls below 10% of the
Fund’s total assets as of the end of a business day, the Fund will impose, at
the beginning of the next business day, a liquidity fee of 1% of the amount
redeemed, unless the Board determines that imposing such a fee would not be in
the best interests of the Fund or determines that a lower or higher fee (not to
exceed 2%) would be in the best interests of the Fund.
If an
Institutional or Retail Fund imposes a redemption gate, the Fund and your
Intermediary will not accept redemption orders or orders for exchanges from the
Fund into another Goldman Sachs Fund until the Fund has notified shareholders
that the redemption gate has been lifted. Any redemption or exchange orders
submitted while a redemption gate is in effect will be cancelled without further
notice. If you still wish to redeem or exchange shares once the redemption gate
has been lifted, you will need to submit a new redemption or exchange request to
the Institutional or Retail Fund or your Intermediary. Unprocessed purchase
orders that the Institutional or Retail Fund received prior to notification of
the imposition of a liquidity fee or redemption gate will be cancelled unless
re-confirmed. Under certain circumstances, an Institutional or Retail Fund may
honor redemption or exchange orders (or pay redemptions without adding a
liquidity fee to the redemption amount) if the Fund can verify that the
redemption or exchange order was submitted to an Intermediary or the Transfer
Agent before the Fund imposed a liquidity fee or redemption gate.
The Board
generally expects that a liquidity fee or redemption gate would be imposed, if
at all, during periods of extraordinary market stress. While the Board may, in
its discretion, impose a liquidity fee or redemption gate at any time after the
weekly liquid assets of an Institutional or Retail Fund falls below 30% of the
Fund’s total assets, the Board generally expects that a liquidity fee or
redemption gate would be imposed only after the Fund has notified Intermediaries
and shareholders that a liquidity fee or redemption gate will be imposed
(generally, as of the beginning of the next business day following the
announcement that the Fund has imposed the liquidity fee or redemption gate).
Announcements regarding the imposition of liquidity fees or redemption gates, or
the termination of liquidity fees or redemption gates, will be filed with the
SEC on Form N-CR and will be available on the website of the Institutional Fund
or Retail Fund (http://www.gsamfunds.com). In addition, the Institutional and
Retail Fund will make such announcements through a supplement to its Prospectus
and may make such announcements through a press release or by other
means.
Liquidity
fees and redemption gates may be terminated at any time in the discretion of the
Board. Liquidity fees and redemption gates will also terminate at the beginning
of the next business day once an Institutional or Retail Fund has invested 30%
or more of its total assets in weekly liquid assets as of the end of a business
day. The Institutional and Retail Funds may only suspend redemptions for up to
10 business days in any 90-day period.
Liquidity
fees imposed by an Institutional or Retail Fund will reduce the amount you will
receive upon the redemption of your shares, and will generally decrease the
amount of any capital gain or increase the amount of any capital loss you will
recognize with respect to such redemption. There is some degree of uncertainty
with respect to the tax treatment of liquidity fees received by money market
funds, and such tax treatment may be the subject of future guidance issued by
the Internal Revenue Service. If an Institutional or Retail Fund receives
liquidity fees, it will consider the appropriate tax treatment of such fees to
the Fund at such time. Please see the “Taxation” section of the Prospectus for
further information.
62
Shareholder
Guide
Intermediaries
are required to promptly take such actions reasonably requested by an
Institutional or Retail Fund, the Transfer Agent or the Investment Adviser to
implement, modify or remove, or to assist the Institutional or Retail Fund in
implementing, modifying or removing, a liquidity fee or redemption gate
established by such Fund.
While the
Board has no current intention to subject the Governments Funds to liquidity
fees or redemption gates, the Board reserves the ability to subject these Funds
to liquidity fees and/or redemption gates in the future after providing at least
sixty days’ prior notice to shareholders.
What Types Of Reports
Will I Be Sent Regarding My Investments In Administration Shares?
Intermediaries
are responsible for providing any communication from the Fund to shareholders,
including but not limited to prospectuses, prospectus supplements, proxy
materials and notices regarding the sources of dividend payments under Section
19 of the Investment Company Act. They may charge additional fees not described
in the Prospectus to their customers for such services.
You will be
provided with a monthly account statement. If your account is held through your
Intermediary, you may receive your statements and confirmations from your
Intermediary on a different schedule.
You will
also receive an annual shareholder report containing audited financial
statements and a semi-annual shareholder report. If you have consented to the
delivery of a single copy of shareholder reports, prospectuses and other
information to all shareholders who share the same mailing address with your
account, you may revoke your consent at any time by contacting your Intermediary
or Goldman Sachs Funds at the appropriate phone number or address found on the
back cover of the Prospectus. The Fund will begin sending individual copies to
you within 30 days after receipt of your revocation. If your account is held
through an Intermediary, please contact the Intermediary to revoke your
consent.
63
Taxation
As with any
investment, you should consider how your investment in the Fund will be taxed.
The tax information below is provided as general information. More tax
information is available in the SAI. You should consult your tax adviser about
the federal, state, local or foreign tax consequences of your investment in the
Fund. Except as otherwise noted, the tax information provided assumes that you
are a U.S. citizen or resident.
Unless your
investment is through an IRA or other tax-advantaged account, you should
carefully consider the possible tax consequences of Fund
distributions.
|
DISTRIBUTIONS |
Each Fund
contemplates declaring as dividends each year all or substantially all of its
net investment income. However, the Fund reserves the right to reduce or
withhold income and/or gains. Fund distributions of investment income are
generally taxable as ordinary income for federal tax purposes, and may also be
subject to state or local taxes. This is true whether you reinvest your
distributions in additional Fund shares or receive them in cash. Distributions
of short-term capital gains are taxable to you as ordinary income. Any long-term
capital gain distributions are taxable as long-term capital gains, no matter how
long you have owned your Fund shares.
It is
anticipated that substantially all of the distributions by the Funds, other than
the Investor Tax-Exempt Money Market Fund, will be taxable as ordinary income.
You should note that these distributions will not qualify for the reduced tax
rate applicable to certain qualified dividends because the Funds’ investment
income will consist generally of interest income rather than corporate
dividends.
An
additional 3.8% Medicare tax is imposed on certain net investment income
(including ordinary dividends and capital gain distributions received from a
Fund and net gains from redemptions or other taxable dispositions of Fund
shares) of U.S. individuals, estates and trusts to the extent that such person’s
“modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds certain threshold
amounts.
Although
distributions are generally treated as taxable to you in the year they are paid,
distributions declared in December but paid in January will be taxable as if
they were paid in December. The Fund will inform shareholders of the character
and tax status of all distributions promptly after the close of each calendar
year.
Distributions
from the Investor Tax-Exempt Money Market Fund that are designated as “exempt
interest dividends” are generally not subject to federal income tax. However,
you should note that, while the Fund intends to avoid such investments, a
portion of the exempt-interest dividends paid by the Investor Tax-Exempt Money
Market Fund may be attributable to investments in securities, the interest on
which will be a preference item when determining your federal AMT liability.
Exempt-interest dividends are also taken into account in determining the taxable
portion of social security or railroad retirement benefits. Any interest on
indebtedness incurred by you to purchase or carry shares in the Investor
Tax-Exempt Money Market Fund generally will not be deductible for federal income
tax purposes.
To the
extent that Fund distributions are attributable to interest on certain federal
obligations or interest on obligations of your state of residence or its
municipalities or authorities, they will in most cases be exempt from state and
local income taxes.
|
SALES |
Generally,
your sale of Fund shares is a taxable transaction for federal income tax
purposes, and may also be subject to state and local taxes. Because each of the
Financial Square Treasury Obligations Fund, Financial Square Treasury
Instruments Fund, Financial Square Treasury Solutions Fund, Financial Square
Government Fund, Financial Square Federal Instruments Fund, Investor Money
Market Fund and Investor Tax-Exempt Money Market Fund intends to maintain a
stable NAV of $1.00 per share, shareholders will typically not recognize a gain
or loss when they sell or exchange their shares in these Funds, because the
amount realized will be the same as their tax basis in the shares. Because the
Financial Square Prime Obligations Fund and Financial Square Money Market Fund
do not maintain stable share prices, a sale of these Funds’ shares may result in
a capital gain or loss for you. When you sell your shares, you will generally
recognize a capital gain or loss in an amount equal to the difference between
your adjusted tax basis in the shares and the amount received. Capital losses in
any year are deductible only to the extent of capital gains, plus, in the case
of a non-corporate taxpayer, generally $3,000 of income. Certain other special
tax rules may apply to your capital gains or losses on these Funds’
shares.
With
respect to any gain or loss recognized on the sale or exchange of shares of a
Fund, unless you choose to adopt a simplified “NAV method” of accounting
(described below), this capital gain or loss is long-term or short-term
depending on whether your holding period exceeds one year. If you elect to adopt
the NAV method of accounting, rather than compute gain or loss on every taxable
64
Taxation
disposition
of Fund shares as described above, you would determine your gain or loss based
on the change in the aggregate value of your Fund shares during a computation
period (such as your taxable year), reduced by your net investment (purchases
minus sales) in those shares during that period. Under the NAV method, any
resulting net capital gain or loss would be treated as short-term capital gain
or loss.
If a
liquidity fee is imposed in connection with the redemption of your shares of the
Financial Square Prime Obligations Fund, Financial Square Money Market Fund,
Investor Money Market Fund or Investor Tax-Exempt Money Market Fund, the
Internal Revenue Service will require you to report any gain or loss recognized
from your redemption. If you held your shares as a capital asset, the gain or
loss that you recognize will be a capital gain or loss, and will be long-term or
short-term, generally depending on how long you have held your shares. Any
liquidity fees you incur on shares redeemed will generally decrease the amount
of any capital gain (or increase the amount of any capital loss) you recognize
with respect to such redemption.
|
OTHER
INFORMATION |
When you
open your account, you should provide your social security or tax identification
number on your account application. By law, the Fund must withhold 24% of your
taxable distributions and any redemption proceeds if you do not provide your
correct Taxpayer Identification Number, or certify that it is correct, or if the
Internal Revenue Service instructs the Fund to do so.
Non-U.S.
investors will generally be subject to U.S. withholding tax with respect to
dividends received from the Fund and may be subject to estate tax with respect
to their Fund shares. However, withholding is generally not required on properly
designated distributions to non-U.S. investors of long-term capital gains.
Likewise, non-U.S. investors generally are not subject to U.S. federal income
tax withholding on distributions paid in respect of certain U.S. source interest
income or short-term capital gains that are so designated by the Fund. However,
depending upon its circumstances, the Fund may designate all, some or none of
its potentially eligible dividends as U.S. source interest income or short-term
capital gains and/or treat such dividends, in whole or in part, as ineligible
for this exemption from withholding. In the case of shares held through an
intermediary, the intermediary may withhold even if the Fund designates the
payment from U.S. source interest income or short-term capital gain.
The Fund is
required to withhold U.S. tax (at a 30% rate) on payments of taxable dividends
made to certain non-U.S. entities that fail to comply (or be deemed compliant)
with extensive reporting and withholding requirements designed to inform the
U.S. Department of the Treasury of U.S.-owned foreign investment accounts.
Shareholders may be requested to provide additional information to the Fund to
enable the Fund to determine whether withholding is required.
65
Appendix
A
Additional
Information on the Funds
This
section provides further information on certain types of securities and
investment techniques that may be used by the Funds, including their associated
risks. Additional information is provided in the SAI, which is available upon
request. Among other things, the SAI describes certain fundamental policies and
investment restrictions that cannot be changed without shareholder approval. You
should note, however, that all investment policies not specifically designated
as fundamental are non-fundamental and may be changed without shareholder
approval. If there is a change in a Fund’s investment objective, you should
consider whether that Fund remains an appropriate investment in light of your
then current financial position and needs. A Fund may purchase other types of
securities or instruments similar to those described in this section if
otherwise consistent with the Fund’s investment objective and
policies.
U.S.
Treasury Obligations and U.S. Government Securities. Certain
Funds may invest in U.S. Treasury Obligations, which include, among other
things, the separately traded principal and interest components of securities
guaranteed or issued by the U.S. Treasury if such components are traded
independently under the Separate Trading of Registered Interest and Principal of
Securities program (“STRIPS”). U.S. Treasury Obligations may also include
Treasury inflation-protected securities whose principal value is periodically
adjusted according to the rate of inflation.
Certain
Funds may invest in U.S. Government Securities. Unlike U.S. Treasury
Obligations, U.S. Government Securities can be supported by either (i) the full
faith and credit of the U.S. Treasury (such as the Government National Mortgage
Association (“Ginnie Mae”)); (ii) the right of the issuer to borrow from the
U.S. Treasury; (iii) the discretionary authority of the
U.S.
government to purchase certain obligations of the issuer; or (iv) only the
credit of the issuer. U.S. Government Securities are deemed to include (i)
securities for which the payment of principal and interest is backed by an
irrevocable letter of credit issued by the U.S. government, its agencies,
authorities or instrumentalities; and (ii) participations in loans made to
foreign governments or their agencies that are so guaranteed. Certain of these
participations may be regarded as illiquid. U.S. Government Securities also
include zero coupon bonds.
Some Funds
invest in U.S. Treasury Obligations and certain U.S. Government Securities, the
interest from which is generally exempt from state income taxation. Securities
generally eligible for this exemption include those issued by the U.S. Treasury
and certain agencies, authorities or instrumentalities of the U.S. government,
including the Federal Home Loan Banks, Federal Farm Credit Banks and Tennessee
Valley Authority.
U.S.
Treasury Obligations have historically involved little risk of loss of principal
if held to maturity. However, no assurance can be given that the U.S. government
will be able or willing to repay the principal or interest when due or provide
financial support to U.S. government agencies, authorities, instrumentalities or
sponsored enterprises that issue U.S. Government Securities if it is not
obligated to do so by law.
Bank
Obligations. Certain
Funds may invest in bank obligations, which include certificates of deposit,
commercial paper, unsecured bank promissory notes, bankers’ acceptances, time
deposits and other debt obligations. Certain Funds may invest in obligations
issued or backed by U.S. banks when a bank has more than $1 billion in total
assets at the time of purchase or is a branch or subsidiary of such a bank. In
addition, the Financial Square Prime Obligations Fund, Financial Square Money
Market Fund, and Investor Money Market Fund may invest in U.S.
dollar-denominated obligations issued or guaranteed by foreign banks that have
more than $1 billion in total assets at the time of purchase and U.S. branches
of such foreign banks (Yankee obligations), as well as foreign branches of such
foreign banks and foreign branches of U.S. banks having more than $1 billion in
total assets at the time of purchase. Bank obligations may be general
obligations of the parent bank or may be limited to the issuing branch by the
terms of the specific obligation or by government regulation.
If a Fund
invests more than 25% of its total assets in bank obligations (whether foreign
or domestic), it may be especially affected by favorable and adverse
developments in or related to the banking industry. The activities of U.S. and
most foreign banks are subject to comprehensive regulations which, in the case
of U.S. regulations, have undergone substantial changes in the past decade. The
enactment of new legislation or regulations, as well as changes in
interpretation and enforcement of current laws, may affect the manner of
operations and profitability of domestic and foreign banks. Significant
developments in the U.S. banking industry have included increased competition
from other types of financial institutions, increased acquisition activity and
geographic expansion. Banks may be particularly susceptible to certain economic
factors, such as interest rate changes and adverse developments in the real
estate markets. Fiscal and monetary policy and general economic cycles can
affect the availability and cost of funds, loan demand and asset quality and
thereby impact the earnings and financial conditions of banks.
66
Appendix
A
Commercial
Paper. Certain
Funds may invest in commercial paper, including variable amount master demand
notes and assetbacked commercial paper. Commercial paper normally represents
short-term unsecured promissory notes issued in bearer form by banks or bank
holding companies, corporations, finance companies and other issuers. The
commercial paper that may be purchased by a Fund consists of direct U.S.
dollar-denominated obligations of domestic or, in the case of the Financial
Square Prime Obligations Fund, Financial Square Money Market Fund, and Investor
Money Market Fund, foreign issuers. Asset-backed commercial paper is issued by a
special purpose entity that is organized to issue the commercial paper and to
purchase trade receivables or other financial assets. The credit quality of
asset-backed commercial paper depends primarily on the quality of these assets
and the level of any additional credit support.
Short-Term
Obligations of Corporations or Other Entities. Certain
Funds may invest in other short-term obligations, including master demand notes
and short-term funding agreements payable in U.S. dollars and issued or
guaranteed by U.S. corporations, foreign corporations or other entities. A
master demand note permits the investment of varying amounts by a Fund under an
agreement between the Fund and an issuer. The principal amount of a master
demand note may be increased from time to time by the parties (subject to
specified maximums) or decreased by the Fund or the issuer. A funding agreement
is a contract between an issuer and a purchaser that obligates the issuer to pay
a guaranteed rate of interest on a principal sum deposited by the purchaser.
Funding agreements will also guarantee a stream of payments over time. A funding
agreement has a fixed maturity date and may have either a fixed rate or variable
interest rate that is based on an index and guaranteed for a set time period.
Because there is normally no secondary market for these investments, funding
agreements purchased by a Fund may be regarded as illiquid.
Repurchase
Agreements. Certain
Funds may enter into repurchase agreements with counterparties approved by the
Investment Adviser pursuant to procedures approved by the Board of Trustees.
Repurchase agreements are similar to collateralized loans, but are structured as
a purchase of securities by a Fund, subject to the seller’s agreement to
repurchase the securities at a mutually agreed upon date and price. The
difference between the original purchase price and the repurchase price is
normally based on prevailing short-term interest rates. Under a repurchase
agreement, the seller is required to furnish collateral at least equal in value
or market price to the amount of the seller’s repurchase obligation.
If the
seller under a repurchase agreement defaults, a Fund could suffer a loss to the
extent that the proceeds from the sale of the underlying securities and other
collateral held by the Fund are less than the repurchase price and the Fund’s
cost associated with delay and enforcement of the repurchase agreement. In
addition, in the event of bankruptcy or insolvency proceedings concerning the
seller, a Fund could suffer additional losses if the collateral held by the Fund
is subject to a court “stay” that prevents the Fund from promptly selling the
collateral. If this occurs, the Fund will bear the risk that the value of the
collateral will decline below the repurchase price. Furthermore, a Fund could
experience a loss if a court determines that the Fund’s interest in the
collateral is not enforceable.
In
evaluating whether to enter into a repurchase agreement, the Investment Adviser
will carefully consider the creditworthiness of the seller. Distributions of the
income from repurchase agreements will be taxable to a Fund’s shareholders. In
addition, interest generated by repurchase agreements with foreign
counterparties may, under certain circumstances, be considered U.S. source
interest income. Certain Funds, together with other registered investment
companies having advisory agreements with the Investment Adviser or any of its
affiliates, may transfer uninvested cash balances into a single joint account,
the daily aggregate balance of which will be invested in one or more repurchase
agreements.
The Funds
currently enter into repurchase agreements with a variety of eligible
counterparties, including the Federal Reserve Bank of New York. Reduced
participation in the repurchase agreement market by these counterparties,
particularly the Federal Reserve Bank of New York, may affect a Fund’s
investment strategies, operations and/or return potential. The Funds consider
repurchase agreements with the Federal Reserve Bank of New York to be U.S.
Government Securities for purposes of Rule 2a-7.
Asset-Backed
and Receivables-Backed Securities. Certain
Funds may invest in asset-backed and receivables-backed securities whose
principal and interest payments are collateralized by pools of assets such as
auto loans, credit card receivables, leases, mortgages, installment contracts
and personal property. Asset-backed securities may also include home equity line
of credit loans and other second-lien mortgages. Asset-backed and
receivables-backed securities are often subject to more rapid repayment than
their stated maturity date would indicate as a result of the pass-through of
prepayments of principal on the underlying loans. During periods of declining
interest rates, prepayment of loans underlying asset-backed and
receivables-backed securities can be expected to accelerate. Accordingly, a
Fund’s ability to maintain positions in such securities will be affected by
reductions in the principal amount of such securities resulting from
prepayments, and its ability to reinvest the returns of principal at comparable
yields is subject to generally prevailing interest rates at that time. In
addition, securities that are backed by credit card, automobile and similar
types of receivables generally do not have the benefit of a security interest in
collateral that is comparable in quality to mortgage assets. Some asset-backed
securities have only a subordinated claim or security interest in collateral. If
the issuer of an asset-backed security defaults on its payment obligation, there
is the possibility that, in some cases, a Fund will be unable to possess and
sell the underlying collateral and that a Fund’s recoveries on repossessed
collateral may not be available to support payments on the securities. In the
event of a default, a Fund may suffer a loss if it cannot sell collateral
quickly and receive the amount it is owed. There is no guarantee that private
guarantors, or insurers of an asset-backed security, if any, will meet their
obligations. The value of some asset-backed securities may be particularly
sensitive to changes in prevailing interest rates. Assetbacked securities may
also be subject to increased volatility and may
67
become
illiquid and more difficult to value even when there is no default or threat of
default due to market conditions impacting asset-backed securities more
generally. Certain mortgagebacked securities (especially those backed by
sub-prime and second-lien loans) have declined in value in light of recent
market and economic developments, and such developments have led to reduced
demand and limited liquidity for certain mortgage-related securities. Unexpected
increases in default rates with regard to the underlying mortgages and increased
price volatility, in addition to liquidity constraints, may make these
securities more difficult to value or dispose of than may have been the case
previously. These events may have an adverse effect on the Funds to the extent
they invest in mortgage-backed or other fixed income securities or instruments
affected by the volatility in the fixed income markets.
Foreign
Government Obligations and Foreign Risks. The Fund
may invest in foreign government obligations. Foreign government obligations
that the Fund invests in are U.S. dollar-denominated obligations (limited to
commercial paper and other notes) issued or guaranteed by a foreign government
or other entity located or organized in a foreign country that maintains a
short-term foreign currency rating in the highest short-term ratings category by
the requisite number of NRSROs.
Investments
by the Fund in foreign securities, whether issued by a foreign government, bank,
corporation or other issuer, may present a greater degree of risk than
investments in securities of domestic issuers because of less publicly-available
financial and other information, more or less securities regulation, less
stringent investor protections and disclosure standards, potential imposition of
foreign withholding and other taxes, war, expropriation or other adverse
governmental actions. Foreign banks and their foreign branches are not regulated
by U.S. banking authorities, and generally are not bound by the accounting,
auditing and financial reporting standards applicable to U.S. banks. The legal
remedies for investors may be more limited than the remedies available in the
United States. In addition, changes in the exchange rate of a foreign currency
relative to the U.S. dollar (e.g.,
weakening of the currency against the U.S. dollar) may adversely affect the
ability of a foreign issuer to pay interest and repay principal on an
obligation.
Certain
foreign markets may rely heavily on particular industries or foreign capital and
are more vulnerable to diplomatic developments, the imposition of economic
sanctions against a particular country or countries, organizations, entities
and/or individuals, changes in international trading patterns, trade barriers,
and other protectionist or retaliatory measures. International trade barriers or
economic sanctions against foreign countries, organizations, entities and/or
individuals may adversely affect the Funds’ foreign holdings or
exposures.
Certain
foreign investments may become less liquid in response to social, political or
market developments or adverse investor perceptions, or become illiquid after
purchase by the Funds, particularly during periods of market turmoil. Certain
foreign investments may become illiquid when, for instance, there are few, if
any, interested buyers and sellers or when dealers are unwilling to make a
market for certain securities. When the Funds hold illiquid investments, their
portfolios may be harder to value, especially in changing markets.
Municipal
Obligations. Certain
Funds may invest in municipal obligations. Municipal obligations are issued by
or on behalf of states, territories and possessions of the United States and
their political subdivisions, agencies, authorities and instrumentalities, and
the District of Columbia. Municipal obligations in which a Fund may invest
include fixed rate notes and similar debt instruments; variable and floating
rate demand instruments; tax-exempt commercial paper; municipal bonds; and
unrated notes, paper or other instruments. Municipal obligations are generally
subject to those risks associated with debt securities generally. In addition, a
Fund may be more sensitive to adverse economic, business or political
developments if it invests a substantial portion of its assets in the debt
securities of similar projects (such as those relating to education, health
care, housing, transportation, and utilities), industrial development bonds, or
in particular types of municipal obligations (such as general obligation bonds,
private activity bonds and moral obligation bonds).
Certain of
the Funds may invest in municipal obligations issued by municipalities,
including U.S. territories, commonwealths and possessions, that may be, or may
become, subject to significant financial difficulties. Factors contributing to
such difficulties may include: lower property tax collections as a result of
lower home values, lower sales tax revenue as a result of reduced consumer
spending, lower income tax revenue as a result of higher unemployment rates, and
budgetary constraints of local, state and federal governments upon which issuers
of municipal obligations may be relying for funding. Such securities may be
considered below investment grade or may be subject to future credit downgrades
due to concerns over potential default, insolvency or bankruptcy on the part of
their issuers or any credit support provider. During the recent economic
downturn, several municipalities have, in fact, filed for bankruptcy protection
or have indicated that they may seek bankruptcy protection in the future. A
credit downgrade or other adverse news about an issuer or any credit support
provider could impact the market value and liquidity of the securities and
consequently could negatively affect the performance of a Fund that holds such
securities.
Municipal
Notes and Bonds. Municipal
notes include tax anticipation notes (“TANs”), revenue anticipation notes
(“RANs”), bond anticipation notes (“BANs”), tax and revenue anticipation notes
(“TRANs”) and construction loan notes. Municipal bonds include general
obligation bonds and revenue bonds. General obligation bonds are backed by the
taxing power of the issuing municipality and are considered the safest type of
municipal obligation. Revenue bonds are backed by the revenues of a project or
facility such as the
68
Appendix
A
tolls from
a government-owned toll bridge. Revenue bonds also include lease rental revenue
bonds which are issued by a state or local authority for capital projects and
are secured by annual lease payments from the state or locality sufficient to
cover debt service on the authority’s obligations. Municipal bonds may be issued
in a variety of forms, including commercial paper, tender option bonds and
variable and floating rate securities.
Tender
Option Bonds. A tender
option bond is a municipal obligation (generally held pursuant to a custodial
arrangement) having a relatively long maturity and bearing interest at a fixed
rate higher than prevailing short-term, tax-exempt rates. The bond is typically
issued in conjunction with the agreement of a third party, such as a bank,
broker-dealer or other financial institution, pursuant to which the institution
grants the security holder the option, at periodic intervals, to tender its
securities to the institution. As consideration for providing the option, the
financial institution receives periodic fees equal to the difference between the
bond’s fixed coupon rate and the rate, as determined by a remarketing or similar
agent, that would cause the securities, coupled with the tender option, to trade
at par on the date of such determination. Thus, after payment of this fee, the
security holder effectively holds a demand obligation that bears interest at the
prevailing short-term, tax-exempt rate. An institution will normally not be
obligated to accept tendered bonds in the event of certain defaults or a
significant downgrading in the credit rating assigned to the issuer of the bond.
The tender option will be taken into account in determining the maturity of the
tender option bonds and a Fund’s average portfolio maturity and average
portfolio life. There is a risk that a Fund will not be considered the owner of
a tender option bond for federal income tax purposes, and thus will not be
entitled to treat such interest as exempt from federal income tax. Certain
tender option bonds may be illiquid or may become illiquid as a result of a
credit rating downgrade, a payment default or a disqualification from tax-exempt
status.
Revenue
Anticipation Warrants. Revenue
Anticipation Warrants (“RAWs”) are issued in anticipation of the issuer’s
receipt of revenues and present the risk that such revenues will be insufficient
to satisfy the issuer’s payment obligations. The entire amount of principal and
interest on RAWs is due at maturity. RAWs, including those with a maturity of
more than 397 days, may also be repackaged as instruments which include a demand
feature that permits the holder to sell the RAWs to a bank or other financial
institution at a purchase price equal to par plus accrued interest on each
interest rate reset date.
Industrial
Development Bonds. Certain
Funds may invest in industrial development bonds (private activity bonds).
Industrial development bonds are a specific type of revenue bond backed by the
credit and security of a private user, and therefore have more potential risk.
The interest from industrial development bonds would be an item of tax
preference when distributed by a Fund as “exempt-interest dividends” to
shareholders under the AMT.
Other
Municipal Obligation Policies. Certain
Funds may invest 25% or more of the value of their respective total assets in
municipal obligations which are related in such a way that an economic, business
or political development or change affecting one municipal obligation would also
affect the other municipal obligation. For example, a Fund may invest all of its
assets in (i) municipal obligations the interest of which is paid solely from
revenues from similar projects such as hospitals, electric utility systems,
multi-family housing, nursing homes, commercial facilities (including hotels),
steel companies or life care facilities; (ii) municipal obligations whose
issuers are in the same state; or (iii) industrial development obligations
(except where the nongovernmental entities supplying the revenues from which
such bonds or obligations are to be paid are in the same industry). A Fund’s
investments in these municipal obligations will subject the Fund, to a greater
extent, to the risks of adverse economic, business or political developments
affecting the particular state, industry or other area of investment. Municipal
obligations may also include municipal leases, certificates of participation and
“moral obligation” bonds. A municipal lease is an obligation issued by a state
or local government to acquire equipment or facilities. Certificates of
participation represent interests in municipal leases or other instruments, such
as installment contracts. Moral obligation bonds are supported by the moral
commitment but not the legal obligation of a state or municipality. Municipal
leases, certificates of participation and moral obligation bonds present the
risk that the state or municipality involved will not appropriate the monies to
meet scheduled payments under these instruments.
Municipal
obligations may be backed by letters of credit or other forms of credit
enhancement issued by domestic banks or foreign banks which have a branch,
agency or subsidiary in the United States or by other financial institutions
such as insurance companies which may issue insurance policies with respect to
municipal obligations. The credit quality of these banks, insurance companies
and other financial institutions could, therefore, cause a loss to a Fund that
invests in municipal obligations. The insurance companies’ exposure to
securities involving sub-prime mortgages may cause insurer rating downgrade or
insolvency, which may affect the prices and liquidity of municipal obligations
insured by the insurance company. Letters of credit and other obligations of
foreign banks and financial institutions may involve risks in addition to those
of domestic obligations because of less publicly available financial and other
information, less securities regulation, potential imposition of foreign
withholding and other taxes, war, expropriation or other adverse governmental
actions. Foreign banks and their foreign branches are not regulated by U.S.
banking authorities and generally are not bound by the accounting, auditing and
financial reporting standards applicable to U.S. banks.
In order to
enhance the liquidity, stability or quality of a municipal obligation, a Fund
may acquire the right to sell the obligation to another party at a guaranteed
price and date.
69
In
purchasing municipal obligations, a Fund intends to rely on opinions of bond
counsel or counsel to the issuers for each issue as to the excludability of
interest on such obligations from gross income for federal income tax purposes.
A Fund will not undertake independent investigations concerning the tax-exempt
status of such obligations, nor does it guarantee or represent that bond
counsels’ opinions are correct. Bond counsels’ opinions will generally be based
in part upon covenants by the issuers and related parties regarding continuing
compliance with federal tax requirements. Tax laws contain numerous and complex
requirements that must be satisfied on a continuing basis in order for bonds to
be and remain tax-exempt. If the issuer of a bond or a user of a bondfinanced
facility fails to comply with such requirements at any time, interest on the
bond could become taxable, retroactive to the date the obligation was issued. In
that event, a portion of a Fund’s distributions attributable to interest the
Fund received on such bond for the current year and for prior years could be
characterized or recharacterized as taxable income.
Custodial
Receipts. Certain
Funds may invest in custodial receipts (including tender option bonds, see above
for more information) representing interests in U.S. Government Securities,
municipal obligations or other debt instruments held by a custodian or trustee.
Custodial receipts evidence ownership of future interest payments, principal
payments or both on notes or bonds issued or guaranteed as to principal or
interest by the U.S. government, its agencies, instrumentalities, political
subdivisions or authorities, or by a state or local governmental body or
authority, or by other types of issuers. For certain securities law purposes,
custodial receipts are not considered obligations of the underlying issuers. In
addition, if for tax purposes a Fund is not considered to be the owner of the
underlying securities held in the custodial account, the Fund may suffer adverse
tax consequences. As a holder of custodial receipts, a Fund will bear its
proportionate share of the fees and expenses charged to the custodial
account.
Other
Investment Companies. Certain
Funds may invest in securities of other investment companies that are money
market funds, subject to statutory limitations prescribed by the Investment
Company Act, or exemptive relief thereunder. These statutory limitations include
in certain circumstances a prohibition on the Fund acquiring more than 3% of the
voting shares of any other investment company, and a prohibition on investing
more than 5% of a Fund’s total assets in securities of any one investment
company or more than 10% of its total assets in securities of all investment
companies.
Pursuant to
an exemptive order obtained from the SEC or under an exemptive rule adopted by
the SEC, a Fund may invest in other investment companies that are money market
funds beyond the statutory limits described above. Some of those money market
funds may be funds for which the Investment Adviser or any of its affiliates
serves as investment adviser, administrator or distributor.
A Fund will
indirectly bear its proportionate share of any management fees and other
expenses paid by such other investment companies, in addition to the fees and
expenses regularly borne by the Fund. Although the Funds do not expect to do so
in the foreseeable future, each Fund is authorized to invest substantially all
of its assets in a single open-end investment company that is a money market
fund that has substantially the same investment objective, policies and
fundamental restrictions as the Fund.
Floating
and Variable Rate Obligations. The Funds
may purchase various floating and variable rate obligations, including (for
those Funds that may invest in municipal obligations) tender option bonds. The
value of these obligations is generally more stable than that of a fixed rate
obligation in response to changes in interest rate levels. Subject to certain
conditions under Rule 2a-7 under the Investment Company Act, a Fund may consider
the maturity of a variable or floating rate obligation to be shorter than its
ultimate stated maturity if the obligation is a U.S. Government Security, if the
obligation has a remaining maturity of 397 calendar days or less, or if the
obligation has a demand feature that permits the Fund to receive payment at any
time or at specified intervals not exceeding 397 calendar days. The issuers or
financial intermediaries providing demand features may support their ability to
purchase the obligations by obtaining credit with liquidity supports. These may
include lines of credit, which are conditional commitments to lend, and letters
of credit, which will ordinarily be irrevocable, both of which may be issued by
domestic banks or foreign banks. A Fund may purchase variable or floating rate
obligations from the issuers or may purchase certificates of participation, a
type of floating or variable rate obligation, which are interests in a pool of
debt obligations held by a bank or other financial institution.
For
floating and variable rate obligations, there may be a lag between an actual
change in the underlying interest rate benchmark and the reset time for an
interest payment of such an obligation, which could harm or benefit a Fund,
depending on the interest rate environment or other circumstances. In a rising
interest rate environment, for example, a floating or variable rate obligation
that does not reset immediately would prevent a Fund from taking full advantage
of the rising interest rates in a timely manner. However, in a declining
interest rate environment, a Fund may benefit from a lag due to an obligation’s
interest rate payment not being immediately impacted by a decline in interest
rates.
Certain
floating and variable rate obligations have an interest rate floor feature,
which prevents the interest rate payable by the security from dropping below a
specified level as compared to a reference interest rate (the “reference rate”),
such as LIBOR. Such a floor protects a Fund from losses resulting from a
decrease in the reference rate below the specified level. However, if the
reference rate is below the floor, there will be a lag between a rise in the
reference rate and a rise in the interest rate payable by the obligation, and a
Fund may not benefit from increasing interest rates for a significant amount of
time.
70
Appendix
A
When-Issued
Securities and Forward Commitments. Each Fund
may purchase when-issued securities and make contracts to purchase or sell
securities for a fixed price at a future date beyond customary settlement time.
When-issued securities are securities that have been authorized, but not yet
issued. When-issued securities are purchased in order to secure what is
considered to be an advantageous price or yield to a Fund at the time of
entering into the transaction. A forward commitment involves entering into a
contract to purchase or sell securities for a fixed price at a future date
beyond the customary settlement period.
The purchase of securities
on a when-issued or forward commitment basis involves a risk of loss if the
value of the security to be purchased declines before the settlement date.
Conversely, the sale of securities on a forward commitment basis involves the
risk that the value of the securities sold may increase before the settlement
date. Although a Fund will generally purchase securities on a when-issued or
forward commitment basis with the intention of acquiring the securities for its
portfolio, a Fund may dispose of when-issued securities or forward commitments
prior to settlement if the Investment Adviser deems it appropriate.
Illiquid
Securities. Each Fund
may invest up to 5% of its total assets (measured at the time of purchase) in
illiquid securities (i.e., securities that cannot be sold or disposed of in
seven days in the ordinary course of business at approximately the value
ascribed to them by the Fund). Illiquid securities include:
◼
Both
domestic and foreign securities that are not readily marketable
◼
Certain
municipal leases and participation interests
◼
Certain
stripped mortgage-backed securities
◼
Repurchase
agreements and time deposits with a notice or demand period of more than seven
days
◼
Certain
restricted securities, unless it is determined, based upon a review of the
trading markets for a specific restricted security, that such restricted
security is liquid because it is so-called “4(2) commercial paper” or is
otherwise eligible for resale pursuant to Rule 144A under the Securities Act as
amended.
Investing
in restricted securities may decrease the liquidity of a Fund’s portfolio.
Securities purchased by a Fund that are liquid at the time of purchase may
subsequently become illiquid due to events relating to the issuer of the
securities, market events, economic conditions or investor
perception.
Borrowings. Each Fund
may borrow up to 33 1∕3% of its
total assets (including the amount borrowed) from banks for temporary or
emergency purposes. For more information, see the SAI.
Downgraded
Securities. After its
purchase, a portfolio security may be assigned a lower rating or cease to be
rated, which may affect the market value and liquidity of the security. If this
occurs, a Fund may continue to hold the security if the Investment Adviser
believes it is in the best interest of the Fund and its
shareholders.
71
Appendix
B
Financial
Highlights
The
financial highlights tables are intended to help you understand the Funds'
financial performance for the past five years (or less if the Fund has
been in operation for less than five years). Certain information reflects
financial results for a single Fund share. The total returns in the table
represent the rate that an investor would have earned or lost on an investment
in the Fund (assuming reinvestment of all dividends and distributions). The
information has been audited by PricewaterhouseCoopers LLP, whose report, along
with the Funds' financial statements, is included in the Funds' most recent
annual report (available upon request).
Effective
September 1, 2020, the Funds’ fiscal year end was changed from August 31 to
November 30.
|
Financial
Square Federal Instruments Fund —
Administration Shares |
Year
Ended
November
30, |
For
the
Period
Ended
November 30, 2020†
|
Year
Ended August 31, | |||
|
2022 |
2021 |
2020 |
2019 |
2018 | ||
|
Per
Share Data: | ||||||
|
Net
asset value, beginning of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Net
investment income(a) |
0.010 |
—(b) |
—(b) |
0.007 |
0.019 |
0.011 |
|
Net
realized gain |
—(b) |
—(b) |
—(b) |
0.001 |
—(b) |
—(b) |
|
Total
from investment operations |
0.010 |
—(b) |
—(b) |
0.008 |
0.019 |
0.011 |
|
Distributions
to shareholders from net investment income |
(0.010) |
—(b) |
—(b) |
(0.008) |
(0.019) |
(0.011) |
|
Distributions
to shareholders from net realized gains |
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
|
Total
distributions(c) |
(0.010) |
—(b) |
—(b) |
(0.008) |
(0.019) |
(0.011) |
|
Net
asset value, end of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Total
return(d) |
$1.01 |
0.01% |
—%(e) |
0.78% |
1.93% |
1.09% |
|
Net
assets, end of period (in 000’s) |
$79,251 |
$63,937 |
$76,144 |
$73,011 |
$61,267 |
$59,447 |
|
Ratio
of net expenses to average net assets |
0.36% |
0.09% |
0.15%(f) |
0.35% |
0.43% |
0.45% |
|
Ratio
of total expenses to average net assets |
0.46% |
0.45% |
0.46%(f) |
0.46% |
0.47% |
0.50% |
|
Ratio
of net investment income (loss) to average net
assets |
1.19% |
—%(e) |
(0.01)%(f) |
0.69% |
1.89% |
1.08% |
†
The
Fund changed its fiscal year end from August 31 to November 30.
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.0005 per share.
(c)
Distributions
may not coincide with the current year net investment income or net realized
gains as distributions may be paid from current or prior year
earnings.
(d)
Assumes
reinvestment of all distributions. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions. Total returns for periods
less than one full year are not annualized.
(e)
Amount
is less than 0.005%.
(f)
Annualized.
72
Appendix
B
|
Financial
Square Government Fund —
Administration
Shares |
Year
Ended
November
30, |
For
the
Period
Ended
November 30, 2020†
|
Year
Ended August 31, | |||
|
2022 |
2021 |
2020 |
2019 |
2018 | ||
|
Per
Share Data: | ||||||
|
Net
asset value, beginning of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Net
investment income(a) |
0.011 |
—(b) |
—(b) |
0.008 |
0.020 |
0.011 |
|
Net
realized gain |
—(b) |
—(b) |
—(b) |
—(b) |
—(b) |
—(b) |
|
Total
from investment operations |
0.011 |
—(b) |
—(b) |
0.008 |
0.020 |
0.011 |
|
Distributions
to shareholders from net
investment
income |
(0.011) |
—(b) |
—(b) |
(0.008) |
(0.020) |
(0.011) |
|
Distributions
to shareholders from net
realized
gains |
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
|
Total
distributions(c) |
(0.011) |
—(b) |
—(b) |
(0.008) |
(0.020) |
(0.011) |
|
Net
asset value, end of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Total
return(d) |
1.07% |
0.03% |
—%(e) |
0.76% |
1.97% |
1.12% |
|
Net
assets, end of period (in 000’s) |
$9,178,619 |
$7,904,302 |
$5,706,517 |
$5,421,224 |
$4,862,853 |
$4,454,065 |
|
Ratio
of net expenses to average net assets |
0.32% |
0.07% |
0.20%(f) |
0.39% |
0.43% |
0.42% |
|
Ratio
of total expenses to average net
assets |
0.43% |
0.43% |
0.43%(f) |
0.43% |
0.43% |
0.44% |
|
Ratio
of net investment income (loss) to
average
net assets |
1.07% |
0.02% |
(0.01)%(f) |
0.76% |
1.95% |
1.13% |
†
The
Fund changed its fiscal year end from August 31 to November 30.
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.0005 per share.
(c)
Distributions
may not coincide with the current year net investment income or net realized
gains as distributions may be paid from current or prior year
earnings.
(d)
Assumes
reinvestment of all distributions. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions. Total returns for periods
less than one full year are not annualized.
(e)
Amount
is less than 0.005%.
(f)
Annualized.
|
Financial
Square Money Market Fund — Administration Shares |
Year
Ended
November
30 |
For
the
Period
Ended
November 30, 2020†
|
Year
Ended August 31, | |||
|
2022 |
2021 |
2020 |
2019 |
2018 | ||
|
Per
Share Data: | ||||||
|
Net
asset value, beginning of period |
$1.0004 |
$1.0007 |
$1.0010 |
$1.0005 |
$1.0003 |
$1.0003 |
|
Net
investment income(a) |
0.0117 |
0.0001 |
—(b) |
0.0094 |
0.0214 |
0.0140 |
|
Net
realized and unrealized gain (loss) |
— |
0.0002 |
(0.0001) |
0.0007 |
0.0008 |
0.0003 |
|
Total
from investment operations |
0.0117 |
0.0003 |
(0.0001) |
0.0101 |
0.0222 |
0.0143 |
|
Distributions
to shareholders from net investment
income |
(0.0117) |
(0.0001) |
—(b) |
(0.0096) |
(0.0220) |
(0.0143) |
|
Distributions
to shareholders from net realized gains |
—(b) |
(0.0005) |
(0.0002)(b) |
—(b) |
—(b) |
—(b) |
|
Total
distributions(c) |
(0.0117) |
(0.0006) |
(0.0002) |
(0.0096) |
(0.0220) |
(0.0143) |
|
Net
asset value, end of period |
$1.0004 |
$1.0004 |
$1.0007 |
$1.0010 |
$1.0005 |
$1.0003 |
|
Total
return(d) |
1.18% |
0.03% |
(0.03)% |
1.01% |
2.25% |
1.43% |
|
Net
assets, end of period (in 000’s) |
$2,916 |
$1,652 |
$4,270 |
$4,506 |
$4,493 |
$3,218 |
|
Ratio
of net expenses to average net assets |
0.37% |
0.11% |
0.24%(e) |
0.38% |
0.38% |
0.36% |
|
Ratio
of total expenses to average net assets |
0.44% |
0.44% |
0.44%(e) |
0.43% |
0.43% |
0.45% |
|
Ratio
of net investment income (loss) to average net
assets |
1.27% |
0.01% |
(0.05)%(e) |
0.93% |
2.14% |
1.40% |
†
The
Fund changed its fiscal year end from August 31 to November 30.
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.00005 per share.
(c)
Distributions
may not coincide with the current year net investment income or net realized
gains as distributions may be paid from current or prior year
earnings.
(d)
Assumes
investment at the net asset value at the beginning of the year, reinvestment of
all dividends and distributions and a complete redemption of the investment at
the net asset value at the end of the year. Returns do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares. Total returns for periods less than one full year are not
annualized.
(e)
Annualized.
73
|
Financial
Square Prime Obligations Fund —
Administration Shares |
Year
Ended
November
30, |
For
the
Period
Ended
November 30, 2020†
|
Year
Ended August 31, | |||
|
2022 |
2021 |
2020 |
2019 |
2018 | ||
|
Per
Share Data: | ||||||
|
Net
asset value, beginning of period |
$1.0008 |
$1.0010 |
$1.0012 |
$1.0005 |
$1.0002 |
$1.0003 |
|
Net
investment income(a) |
0.0115 |
(0.0002) |
—(b) |
0.0121 |
0.0222 |
0.0139 |
|
Net
realized and unrealized gain (loss) |
0.0001 |
0.0002 |
—(b) |
(0.0017) |
— |
0.0003 |
|
Total
from investment operations |
0.0116 |
— |
—(b) |
0.0104 |
0.0222 |
0.0142 |
|
Distributions
to shareholders from net investment
income |
(0.0115) |
— |
—(b) |
(0.0097) |
(0.0219) |
(0.0143) |
|
Distributions
to shareholders from net realized gains |
—(b) |
(0.0002) |
(0.0002) |
—(b) |
—(b) |
—(b) |
|
Total
distributions(c) |
(0.0115) |
(0.0002) |
(0.0002) |
(0.0097) |
(0.0219) |
(0.0143) |
|
Net
asset value, end of period |
$1.0009 |
$1.0008 |
$1.0010 |
$1.0012 |
$1.0005 |
$1.0002 |
|
Total
return(d) |
1.16% |
—%(e) |
(0.02)% |
1.03% |
2.25% |
1.43% |
|
Net
assets, end of period (in 000’s) |
$6,306 |
$5,407 |
$81,920 |
$8,736 |
$9,748 |
$7,474 |
|
Ratio
of net expenses to average net assets |
0.37% |
0.14% |
0.21%(f) |
0.41% |
0.38% |
0.36% |
|
Ratio
of total expenses to average net assets |
0.47% |
0.45% |
0.44%(f) |
0.43% |
0.43% |
0.46% |
|
Ratio
of net investment income (loss) to average net
assets |
1.16% |
(0.02)% |
(0.04)%(f) |
1.21% |
2.22% |
1.39% |
†
The
Fund changed its fiscal year end from August 31 to November 30.
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.00005 per share.
(c)
Distributions
may not coincide with the current year net investment income or net realized
gains as distributions may be paid from current or prior year
earnings.
(d)
Assumes
investment at the net asset value at the beginning of the year, reinvestment of
all dividends and distributions and a complete redemption of the investment at
the net asset value at the end of the year. Returns do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares. Total returns for periods less than one full year are not
annualized.
(e)
Amount
is less than 0.005%.
(f)
Annualized.
|
Financial
Square Treasury Instruments Fund —
Administration
Shares |
Year
Ended
November
30, |
For
the
Period
Ended
November 30, 2020†
|
Year
Ended August 31, | |||
|
2022 |
2021 |
2020 |
2019 |
2018 | ||
|
Per
Share Data: | ||||||
|
Net
asset value, beginning of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Net
investment income(a) |
0.010 |
—(b) |
—(b) |
0.008 |
0.019 |
0.011 |
|
Net
realized gain |
—(b) |
—(b) |
—(b) |
—(b) |
—(b) |
—(b) |
|
Total
from investment operations |
0.010 |
—(b) |
—(b) |
0.008 |
0.019 |
0.011 |
|
Distributions
to shareholders from net
investment
income |
(0.010) |
—(b) |
—(b) |
(0.008) |
(0.019) |
(0.011) |
|
Distributions
to shareholders from net
realized
gains |
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
|
Total
distributions(c) |
(0.010) |
—(b) |
—(b) |
(0.008) |
(0.019) |
(0.011) |
|
Net
asset value, end of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Total
return(d) |
0.96% |
0.01% |
—%(e) |
0.75% |
1.91% |
1.09% |
|
Net
assets, end of period (in 000’s) |
$2,188,569 |
$2,038,029 |
$1,578,689 |
$1,493,968 |
$1,716,942 |
$2,361,026 |
|
Ratio
of net expenses to average net assets |
0.34% |
0.07% |
0.16%(f) |
0.40% |
0.45% |
0.45% |
|
Ratio
of total expenses to average net
assets |
0.45% |
0.45% |
0.45%(f) |
0.45% |
0.45% |
0.46% |
|
Ratio
of net investment income to average
net
assets |
0.95% |
0.01% |
—%(e)(f) |
0.72% |
1.86% |
1.07% |
†
The
Fund changed its fiscal year end from August 31 to November 30.
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.0005 per share.
(c)
Distributions
may not coincide with the current year net investment income or net realized
gains as distributions may be paid from current or prior year
earnings.
(d)
Assumes
reinvestment of all distributions. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions. Total returns for periods
less than one full year are not annualized.
(e)
Amount
is less than 0.005%.
(f)
Annualized.
74
Appendix
B
|
Financial
Square Treasury Obligations Fund —
Administration
Shares |
Year
Ended
November
30, |
For
the
Period
Ended
November 30, 2020†
|
Year
Ended August 31, | |||
|
2022 |
2021 |
2020 |
2019 |
2018 | ||
|
Per
Share Data: | ||||||
|
Net
asset value, beginning of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Net
investment income(a) |
0.011 |
—(b) |
—(b) |
0.007 |
0.019 |
0.011 |
|
Net
realized gain |
—(b) |
—(b) |
—(b) |
—(b) |
—(b) |
—(b) |
|
Total
from investment operations |
0.011 |
—(b) |
—(b) |
0.007 |
0.019 |
0.011 |
|
Distributions
to shareholders from net
investment
income |
(0.011) |
—(b) |
—(b) |
(0.007) |
(0.019) |
(0.011) |
|
Distributions
to shareholders from net
realized
gains |
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
|
Total
distributions(c) |
(0.011) |
—(b) |
—(b) |
(0.007) |
(0.019) |
(0.011) |
|
Net
asset value, end of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Total
return(d) |
1.06% |
0.02% |
—%(e) |
0.73% |
1.95% |
1.11% |
|
Net
assets, end of period (in 000’s) |
$1,986,064 |
$2,923,435 |
$2,380,299 |
$2,088,737 |
$2,034,113 |
$1,810,200 |
|
Ratio
of net expenses to average net assets |
0.36% |
0.07% |
0.15%(f) |
0.40% |
0.45% |
0.45% |
|
Ratio
of total expenses to average net
assets |
0.45% |
0.45% |
0.45%(f) |
0.45% |
0.45% |
0.46% |
|
Ratio
of net investment income to average
net
assets |
1.15% |
0.01% |
—%(e)(f) |
0.65% |
1.91% |
1.14% |
†
The
Fund changed its fiscal year end from August 31 to November 30.
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.0005 per share.
(c)
Distributions
may not coincide with the current year net investment income or net realized
gains as distributions may be paid from current or prior year
earnings.
(d)
Assumes
reinvestment of all distributions. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions. Total returns for periods
less than one full year are not annualized.
(e)
Amount
is less than 0.005%.
(f)
Annualized.
|
Financial
Square Treasury Solutions Fund —
Administration Shares |
Year
Ended
November
30, |
For
the
Period
Ended
November 30, 2020†
|
Year
Ended August 31, | |||
|
2022 |
2021 |
2020 |
2019 |
2018 | ||
|
Per
Share Data: | ||||||
|
Net
asset value, beginning of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Net
investment income(a) |
0.011 |
—(b) |
—(b) |
0.006 |
0.019 |
0.011 |
|
Net
realized loss |
—(b) |
—(b) |
—(b) |
0.002 |
—(b) |
—(b) |
|
Total
from investment operations |
0.011 |
—(b) |
—(b) |
0.008 |
0.019 |
0.011 |
|
Distributions
to shareholders from net investment
income |
(0.011) |
—(b) |
—(b) |
(0.008) |
(0.019) |
(0.011) |
|
Distributions
to shareholders from net realized gains |
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
|
Total
distributions(c) |
(0.011) |
—(b) |
—(b) |
(0.008) |
(0.019) |
(0.011) |
|
Net
asset value, end of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Total
return(d) |
1.06% |
0.01% |
—%(e) |
0.77% |
1.92% |
1.09% |
|
Net
assets, end of period (in 000’s) |
$803,909 |
$375,220 |
$610,539 |
$443,470 |
$473,937 |
$360,817 |
|
Ratio
of net expenses to average net assets |
0.37% |
0.09% |
0.17%(f) |
0.38% |
0.45% |
0.45% |
|
Ratio
of total expenses to average net assets |
0.45% |
0.45% |
0.45%(f) |
0.45% |
0.45% |
0.46% |
|
Ratio
of net investment income to average net assets |
1.16% |
—%(e) |
—%(e)(f) |
0.61% |
1.85% |
1.09% |
†
The
Fund changed its fiscal year end from August 31 to November 30.
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.0005 per share.
(c)
Distributions
may not coincide with the current year net investment income or net realized
gains as distributions may be paid from current or prior year
earnings.
(d)
Assumes
reinvestment of all distributions. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions. Total returns for periods
less than one full year are not annualized.
(e)
Amount
is less than 0.005%.
(f)
Annualized.
75
|
Investor
Money Market Fund — Administration Shares |
Year
Ended
November
30, |
For the
Period
Ended
November 30, 2020†
|
Year
Ended August 31, | |||
|
2022 |
2021 |
2020 |
2019 |
2018 | ||
|
Per
Share Data: | ||||||
|
Net
asset value, beginning of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Net
investment income (loss)(a) |
0.012 |
—(b) |
—(b) |
0.009 |
0.021 |
0.014 |
|
Net
realized gain (loss) |
—(b) |
—(b) |
—(b) |
0.001 |
—(b) |
(0.001) |
|
Total
from investment operations |
0.012 |
—(b) |
—(b) |
0.010 |
0.021 |
0.013 |
|
Distributions
to shareholders from net investment income |
(0.012) |
— |
—(b) |
(0.010) |
(0.021) |
(0.013) |
|
Distributions
to shareholders from net realized gains |
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
—(b)
|
|
Total
distributions(c) |
(0.012) |
—(b) |
—(b) |
(0.010) |
(0.021) |
(0.013) |
|
Net
asset value, end of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Total
return(d) |
1.17% |
0.03% |
—%(e) |
0.98% |
2.14% |
1.36% |
|
Net
assets, end of period (in 000’s) |
$130,172 |
$40,662 |
$31,792 |
$33,860 |
$31,188 |
$132,200 |
|
Ratio
of net expenses to average net assets |
0.39% |
0.12% |
0.24%(f) |
0.42% |
0.43% |
0.43% |
|
Ratio
of total expenses to average net assets |
0.45% |
0.45% |
0.47%(f) |
0.46% |
0.46% |
0.54% |
|
Ratio
of net investment income (loss) to average net
assets |
1.64% |
(0.01)% |
(0.08)%(f) |
0.90% |
2.12% |
1.37% |
†
The
Fund changed its fiscal year end from August 31 to November 30.
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.0005 per share.
(c)
Distributions
may not coincide with the current year net investment income or net realized
gains as distributions may be paid from current or prior year
earnings.
(d)
Assumes
reinvestment of all distributions. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions. Total returns for periods
less than one full year are not annualized.
(e)
Amount
is less than 0.005%.
(f)
Annualized.
|
Investor
Tax-Exempt Money Market Fund — Administration Shares |
Year
Ended
November
30, |
For the
Period
Ended
November 30, 2020†
|
Year
Ended August 31, | |||
|
2022 |
2021 |
2020 |
2019 |
2018 | ||
|
Per
Share Data: | ||||||
|
Net
asset value, beginning of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Net
investment income(a) |
0.006 |
—(b) |
—(b) |
0.006 |
0.012 |
0.008 |
|
Net
realized gain |
—(b) |
—(b) |
—(b) |
—(b) |
—(b) |
—(b) |
|
Total
from investment operations |
0.006 |
—(b) |
—(b) |
0.006 |
0.012 |
0.008 |
|
Distributions
to shareholders from net investment income |
(0.006) |
—(b) |
—(b) |
(0.006) |
(0.012) |
(0.008) |
|
Distributions
to shareholders from net realized gains |
— |
—(b) |
— |
— |
—(b) |
—(b) |
|
Total
distributions(c) |
(0.006) |
—(b) |
—(b) |
(0.006) |
(0.012) |
(0.008) |
|
Net
asset value, end of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Total
return(d) |
0.58% |
0.01% |
—%(e) |
0.55% |
1.16% |
0.78% |
|
Net
assets, end of period (in 000’s) |
$20,022 |
$314 |
$305 |
$305 |
$298 |
$2 |
|
Ratio
of net expenses to average net assets |
0.38% |
0.04% |
0.13%(f) |
0.37% |
0.43% |
0.43% |
|
Ratio
of total expenses to average net assets |
0.46% |
0.45% |
0.48%(f) |
0.45% |
0.45% |
0.47% |
|
Ratio
of net investment income to average net assets |
0.70% |
0.01% |
0.01%(f) |
0.55% |
1.18% |
0.75% |
†
The
Fund changed its fiscal year end from August 31 to November 30.
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.0005 per share.
(c)
Distributions
may not coincide with the current year net investment income or net realized
gains as distributions may be paid from current or prior year
earnings.
(d)
Assumes
reinvestment of all distributions. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions. Total returns for periods
less than one full year are not annualized.
(e)
Amount
is less than 0.005%.
(f)
Annualized.
76
Money
Market Funds Prospectus (Administration
Shares)
|
FOR
MORE INFORMATION |
Annual/Semi-Annual
Report
Additional
information about the Fund’s investments is available in the Fund’s annual and
semi-annual reports to shareholders. In the Fund’s annual reports, you will find
a discussion of the market conditions and investment strategies that
significantly affected the Fund’s performance during the last fiscal
year.
Statement of
Additional Information
Additional
information about the Fund and its policies is also available in the Fund’s SAI.
The SAI is incorporated by reference into the Prospectus (i.e., is legally
considered part of the Prospectus).
The Fund’s
annual and semi-annual reports and the SAI are available free upon request by
calling Goldman Sachs at 1-800-621-2550. You can also access and download the
annual and semi-annual reports and the SAI at the Fund’s website:
www.gsamfunds.com/moneymarketfunds.
From time
to time, certain announcements and other information regarding the Fund may be
found at www.gsamfunds.com/announcements-ind for
individual investors or www.gsamfunds.com/announcements
for
advisers.
To obtain
other information and for shareholder inquiries:
|
◼ By
telephone: |
1-800-621-2550 |
|
|
◼ By
mail: |
Goldman
Sachs Funds
P.O.
Box 806395
Chicago,
IL 60680-4125 |
|
|
◼ On
the Internet: |
SEC
EDGAR database – http://www.sec.gov |
|
Other
information about the Fund is available on the EDGAR Database on the SEC’s
internet site at http://www.sec.gov. You may
obtain copies of this information, after paying a duplicating fee, by electronic
request at the following e-mail address: [email protected].
The
Fund's investment company registration number is 811-05349.
Goldman Sachs Financial Square FundsSM is a service mark of Goldman Sachs & Co. LLC
Goldman Sachs Investor FundsSM is a service mark of Goldman Sachs & Co. LLC
GSAM® is a registered service mark of Goldman Sachs & Co. LLC
Goldman Sachs Financial Square FundsSM is a service mark of Goldman Sachs & Co. LLC
Goldman Sachs Investor FundsSM is a service mark of Goldman Sachs & Co. LLC
GSAM® is a registered service mark of Goldman Sachs & Co. LLC
FSADMPRO-23