Prospectus
April 28, 2023
April 28, 2023
GOLDMAN
SACHS TAX-ADVANTAGED EQUITY 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 BY THE
FEDERAL DEPOSIT
INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN A FUND
INVOLVES
INVESTMENT
RISKS, AND YOU MAY LOSE MONEY IN A
FUND. |
◼
Goldman Sachs
International Equity Dividend and Premium Fund
◼
Class A
Shares: GIDAX
◼
Class C
Shares: GIDCX
◼
Institutional
Shares: GIDHX
◼
Investor
Shares: GIRVX
◼
Class R6
Shares: GIDUX
◼
Goldman Sachs
International Tax-Managed Equity Fund
◼
Class A
Shares: GATMX
◼
Class C
Shares: GCTMX
◼
Institutional
Shares: GHTMX
◼
Investor
Shares: GITRX
◼
Class R6
Shares: GHTRX
◼
Goldman Sachs
U.S. Tax-Managed Equity Fund
◼
Class A
Shares: GCTAX
◼
Class C
Shares: GCTCX
◼
Institutional
Shares: GCTIX
◼
Service
Shares: GCTSX
◼
Investor
Shares: GQIRX
◼
Class R6
Shares: GCTRX
◼
Goldman Sachs
U.S. Equity Dividend and Premium Fund
◼
Class A
Shares: GSPAX
◼
Class C
Shares: GSPQX
◼
Institutional
Shares: GSPKX
◼
Investor
Shares: GVIRX
◼
Class R6
Shares: GIDWX
|
|
|
|
|
|
Class
A |
Class
C |
Institutional |
Investor |
Class
R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
|
|
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the lower of original
purchase
price or sale proceeds)1
|
|
|
|
|
|
|
|
Class
A |
Class
C |
Institutional |
Investor |
Class
R6 |
|
Management
Fees |
|
|
|
|
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
|
|
|
Other
Expenses |
|
|
|
|
|
|
Service
Fees |
|
|
|
|
|
|
All
Other Expenses |
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
Fee
Waiver and Expense Limitation2 |
( |
( |
( |
( |
( |
|
Total
Annual Fund Operating Expenses After Fee Waiver and Expense
Limitation3 |
|
|
|
|
|
1
2
3
|
|
1
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A Shares |
$ |
$ |
$ |
$ |
|
Class
C Shares |
$ |
$ |
$ |
$ |
|
Institutional
Shares |
$ |
$ |
$ |
$ |
|
Investor
Shares |
$ |
$ |
$ |
$ |
|
Class
R6 Shares |
$ |
$ |
$ |
$ |
|
|
$ |
$ |
$ |
$ |
|
|
|
|
2
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Class
A Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
- |
|
|
|
Returns
After Taxes on Distributions |
- |
- |
|
|
|
Returns
After Taxes on Distributions and Sale of Fund Shares |
- |
- |
|
|
|
Class
C Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
- |
|
|
|
Institutional
Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
- |
|
|
|
Investor
Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
- |
|
|
|
Class
R6 Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
- |
|
|
|
MSCI
EAFE Index (Net, USD, Unhedged; reflects no deduction for fees or
expenses) |
- |
|
|
|
|
Bloomberg
Global Aggregate Bond Index (Gross, USD, Unhedged; reflects no deduction
for fees,
expenses
or taxes)*** |
- |
- |
- |
|
*
**
***
4
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
Portfolio
Managers: Monali
Vora, CFA, Managing Director, has managed the Fund since 2010; Aron Kershner,
Managing Director, has managed the Fund since 2015; and John Sienkiewicz,
Managing Director, has managed the Fund since 2020.
|
Buying
and Selling Fund Shares |
The minimum
initial investment for Class A and Class C Shares is, generally, $1,000. The
minimum initial investment for Institutional Shares is, generally, $1,000,000
for individual or institutional investors or certain wrap account sponsors,
alone or in combination with other assets under the management of the Investment
Adviser and its affiliates. There is no minimum for initial purchases of
Investor and Class R6 Shares, except for certain institutional investors who
purchase Class R6 Shares directly with the Fund’s transfer agent for which the
minimum initial investment is $5,000,000. Those share classes with a minimum
initial investment requirement do not impose it on certain employee benefit
plans, and Institutional Shares do not impose it on certain investment advisers
investing on behalf of other accounts.
The minimum
subsequent investment for Class A and Class C shareholders is $50, except for
certain employee benefit plans, for which there is no minimum. There is no
minimum subsequent investment for Institutional, Investor or Class R6
shareholders.
You may
purchase and redeem (sell) shares of the Fund on any business day through
certain intermediaries that have a relationship with Goldman Sachs, including
banks, trust companies, brokers, registered investment advisers and other
financial institutions (“Intermediaries”).
|
Tax
Information |
For
important tax information, please see “Tax Information” on page 21 of the
Prospectus.
|
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 21 of
the Prospectus.
5
|
|
|
|
|
|
Class
A |
Class
C |
Institutional |
Investor |
Class
R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
|
|
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the lower of original
purchase
price or sale proceeds)1
|
|
|
|
|
|
|
|
Class
A |
Class
C |
Institutional |
Investor |
Class
R6 |
|
Management
Fees |
|
|
|
|
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
|
|
|
Other
Expenses |
|
|
|
|
|
|
Service
Fees |
|
|
|
|
|
|
All
Other Expenses |
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
Fee
Waiver and Expense Limitation2 |
( |
( |
( |
( |
( |
|
Total
Annual Fund Operating Expenses After Fee Waiver and Expense
Limitation |
|
|
|
|
|
1
2
|
|
6
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A Shares |
$ |
$ |
$ |
$ |
|
Class
C Shares |
$ |
$ |
$ |
$ |
|
Institutional
Shares |
$ |
$ |
$ |
$ |
|
Investor
Shares |
$ |
$ |
$ |
$ |
|
Class
R6 Shares |
$ |
$ |
$ |
$ |
|
|
$ |
$ |
$ |
$ |
|
|
|
|
7
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Class
A Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
- |
|
|
|
Returns
After Taxes on Distributions |
- |
- |
|
|
|
Returns
After Taxes on Distributions and Sale of Fund Shares |
- |
- |
|
|
|
Class
C Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
- |
|
|
|
Institutional
Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Investor
Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Class
R6 Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
MSCI
EAFE Index (Net, USD, Unhedged; reflects no deduction for fees or
expenses) |
- |
|
|
|
*
**
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
9
Portfolio
Managers: Osman Ali,
CFA, Managing Director, has managed the Fund since 2014; Len Ioffe, CFA,
Managing Director, has managed the Fund since 2021; John Sienkiewicz, Managing
Director, has managed the Fund since 2020; Monali Vora, CFA, Managing Director,
has managed the Fund since 2010; and Dennis Walsh, Managing Director, has
managed the Fund since 2021.
|
Buying
and Selling Fund Shares |
The minimum
initial investment for Class A and Class C Shares is, generally, $1,000. The
minimum initial investment for Institutional Shares is, generally, $1,000,000
for individual or institutional investors or certain wrap account sponsors,
alone or in combination with other assets under the management of the Investment
Adviser and its affiliates. There is no minimum for initial purchases of
Investor and Class R6 Shares, except for certain institutional investors who
purchase Class R6 Shares directly with the Fund’s transfer agent for which the
minimum initial investment is $5,000,000. Those share classes with a minimum
initial investment requirement do not impose it on certain employee benefit
plans, and Institutional Shares do not impose it on certain investment advisers
investing on behalf of other accounts.
The minimum
subsequent investment for Class A and Class C shareholders is $50, except for
certain employee benefit plans, for which there is no minimum. There is no
minimum subsequent investment for Institutional, Investor or Class R6
shareholders.
You may
purchase and redeem (sell) shares of the Fund on any business day through
certain intermediaries that have a relationship with Goldman Sachs, including
banks, trust companies, brokers, registered investment advisers and other
financial institutions (“Intermediaries”).
|
Tax
Information |
For
important tax information, please see “Tax Information” on page 21 of the
Prospectus.
|
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 21 of
the Prospectus.
10
|
|
|
|
|
|
Class
A |
Class
C |
Institutional |
Service |
Investor |
Class
R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a
percentage
of offering price) |
|
|
|
|
|
|
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the
lower
of original purchase price or sale proceeds)1
|
|
|
|
|
|
|
|
|
Class
A |
Class
C |
Institutional |
Service |
Investor |
Class
R6 |
|
Management
Fees |
|
|
|
|
|
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
|
|
|
|
Other
Expenses |
|
|
|
|
|
|
|
Service
Fees |
|
|
|
|
|
|
|
Shareholder
Administration Fees |
|
|
|
|
|
|
|
All
Other Expenses |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
Fee
Waiver and Expense Limitation2 |
( |
( |
|
|
( |
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and
Expense
Limitation3 |
|
|
|
|
|
|
1
2
3
|
|
11
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A Shares |
$ |
$ |
$ |
$ |
|
Class
C Shares |
$ |
$ |
$ |
$ |
|
Institutional
Shares |
$ |
$ |
$ |
$ |
|
Service
Shares |
$ |
$ |
$ |
$ |
|
Investor
Shares |
$ |
$ |
$ |
$ |
|
Class
R6 Shares |
$ |
$ |
$ |
$ |
|
|
$ |
$ |
$ |
$ |
|
|
|
|
|
|
12
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Class
A Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Returns
After Taxes on Distributions |
- |
|
|
|
|
Returns
After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
|
|
Class
C Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Institutional
Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Service
Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Investor
Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Class
R6 Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Russell
3000®
Index (reflects no deduction for fees or expenses) |
- |
|
|
|
*
**
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
Portfolio
Managers: Osman Ali,
CFA, Managing Director, has managed the Fund since 2014; Len Ioffe, CFA,
Managing Director, has managed the Fund since 2021; John Sienkiewicz, Managing
Director, has managed the Fund since 2020; Monali Vora, CFA, Managing Director,
has managed the Fund since 2010; and Dennis Walsh, Managing Director, has
managed the Fund since 2021.
|
Buying
and Selling Fund Shares |
The minimum
initial investment for Class A and Class C Shares is, generally, $1,000. The
minimum initial investment for Institutional Shares is, generally, $1,000,000
for individual or institutional investors or certain wrap account sponsors,
alone or in combination with other assets under the management of the Investment
Adviser and its affiliates. There is no minimum for initial purchases of
Investor
14
and Class
R6 Shares, except for certain institutional investors who purchase Class R6
Shares directly with the Fund’s transfer agent for which the minimum initial
investment is $5,000,000. Those share classes with a minimum initial investment
requirement do not impose it on certain employee benefit plans, and
Institutional Shares do not impose it on certain investment advisers investing
on behalf of other accounts.
The minimum
subsequent investment for Class A and Class C shareholders is $50, except for
certain employee benefit plans, for which there is no minimum. There is no
minimum subsequent investment for Institutional, Investor or Class R6
shareholders.
The Fund
does not impose minimum purchase requirements for initial or subsequent
investments in Service Shares, although an Intermediary (as defined below) may
impose such minimums and/or establish other requirements such as a minimum
account balance.
You may
purchase and redeem (sell) shares of the Fund on any business day through
certain intermediaries that have a relationship with Goldman Sachs, including
banks, trust companies, brokers, registered investment advisers and other
financial institutions (“Intermediaries”).
|
Tax
Information |
For
important tax information, please see “Tax Information” on page 21 of the
Prospectus.
|
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 21 of
the Prospectus.
15
|
|
|
|
|
|
Class
A |
Class
C |
Institutional |
Investor |
Class
R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
|
|
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the lower of original
purchase
price or sale proceeds)1
|
|
|
|
|
|
|
|
Class
A |
Class
C |
Institutional |
Investor |
Class
R6 |
|
Management
Fees |
|
|
|
|
|
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
|
|
|
Other
Expenses |
|
|
|
|
|
|
Service
Fees |
|
|
|
|
|
|
All
Other Expenses |
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
Fee
Waiver and Expense Limitation2 |
( |
( |
( |
( |
( |
|
Total
Annual Fund Operating Expenses After Fee Waiver and Expense
Limitation3 |
|
|
|
|
|
1
2
3
|
|
16
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A Shares |
$ |
$ |
$ |
$ |
|
Class
C Shares |
$ |
$ |
$ |
$ |
|
Institutional
Shares |
$ |
$ |
$ |
$ |
|
Investor
Shares |
$ |
$ |
$ |
$ |
|
Class
R6 Shares |
$ |
$ |
$ |
$ |
|
|
$ |
$ |
$ |
$ |
|
|
|
|
|
|
17
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Inception
Date | |
|
Class
A Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Returns
After Taxes on Distributions |
- |
|
|
|
|
Returns
After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
|
|
Class
C Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Institutional
Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Investor
Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
Class
R6 Shares |
|
|
|
|
|
Returns
Before Taxes |
- |
|
|
|
|
S&P
500®
Index (reflects no deduction for fees or expenses) |
- |
|
|
|
|
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for fees or
expenses)*** |
- |
|
|
|
*
**
***
|
Portfolio
Management |
Goldman
Sachs Asset Management, L.P. is the investment adviser for the Fund (the
“Investment Adviser” or “GSAM”).
Portfolio
Managers: Monali
Vora, CFA, Managing Director, has managed the Fund since 2010; Aron Kershner,
Managing Director, has managed the Fund since 2015; and John Sienkiewicz,
Managing Director, has managed the Fund since 2020.
|
Buying
and Selling Fund Shares |
The minimum
initial investment for Class A and Class C Shares is, generally, $1,000. The
minimum initial investment for Institutional Shares is, generally, $1,000,000
for individual or institutional investors or certain wrap account sponsors,
alone or in combination with other assets under the management of the Investment
Adviser and its affiliates. There is no minimum for initial purchases of
Investor
19
and Class
R6 Shares, except for certain institutional investors who purchase Class R6
Shares directly with the Fund’s transfer agent for which the minimum initial
investment is $5,000,000. Those share classes with a minimum initial investment
requirement do not impose it on certain employee benefit plans, and
Institutional Shares do not impose it on certain investment advisers investing
on behalf of other accounts.
The minimum
subsequent investment for Class A and Class C shareholders is $50, except for
certain employee benefit plans, for which there is no minimum. There is no
minimum subsequent investment for Institutional, Investor or Class R6
shareholders.
You may
purchase and redeem (sell) shares of the Fund on any business day through
certain intermediaries that have a relationship with Goldman Sachs, including
banks, trust companies, brokers, registered investment advisers and other
financial institutions (“Intermediaries”).
|
Tax
Information |
For
important tax information, please see “Tax Information” on page 21 of the
Prospectus.
|
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 21 of
the Prospectus.
20
Tax-Advantaged
Equity Funds –
Additional Summary Information
Additional Summary Information
|
Tax
Information |
The Funds'
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 |
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.
21
Investment
Management Approach
|
INVESTMENT
OBJECTIVES |
The
International Equity Dividend and Premium Fund seeks to maximize total return
with an emphasis on income.
The
International Tax-Managed Equity Fund seeks to provide long-term after-tax
growth of capital through tax-sensitive participation in a broadly diversified
portfolio of international equity securities.
The U.S.
Tax-Managed Equity Fund seeks to provide long-term after-tax growth of capital
through tax-sensitive participation in a broadly diversified portfolio of U.S.
equity securities.
The U.S.
Equity Dividend and Premium Fund seeks to maximize income and total
return.
Each Fund’s
investment objective may be changed without shareholder approval upon 60 days’
notice.
|
PRINCIPAL
INVESTMENT STRATEGIES |
Goldman Sachs
International Equity Dividend and Premium Fund
The Fund seeks to achieve
its objective primarily through investment in large-cap and mid-cap equity
investments in companies that are organized outside the United States or whose
securities are primarily traded outside the United States along with exposure to
MSCI EAFE Index or related ETF option call writing.
Equity
Investments. The Fund
invests, under normal circumstances, at least 80% of its Net Assets in
dividend-paying equity investments in non-U.S. issuers with public stock market
capitalizations (based upon shares available for trading on an unrestricted
basis) within the range of the market capitalization of the MSCI EAFE Index at
the time of investment. 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 in the
particular type of investment suggested by its name.
The Fund
may allocate its assets among countries as determined by the Investment Adviser
from time to time. The Fund intends to have investments that are economically
tied to at least three countries, not including the United States, and the Fund
may invest in the securities of issuers economically tied to emerging market
countries.
The Fund’s
primary benchmark index is the MSCI EAFE Index and the Fund’s secondary
benchmark is the Bloomberg Global Aggregate Bond Index (Gross, USD, Unhedged).
The MSCI EAFE Index is a free float-adjusted market capitalization index that is
designed to measure the equity market performance of developed markets,
excluding the U.S. and Canada. The Bloomberg Global Aggregate Bond Index is an
unmanaged index of bond prices.
Goldman Sachs U.S.
Equity Dividend and Premium Fund
The Fund
seeks to achieve its objective primarily through investment in large-cap U.S.
equity securities and S&P® 500 Index
or related ETF option call writing.
Equity
Investments. The Fund
invests, under normal circumstances, at least 80% of its Net Assets in
dividend-paying equity investments in large-cap U.S. issuers with public stock
market capitalizations (based upon shares available for trading on an
unrestricted basis) within the range of the market capitalization of the S&P
500® Index at
the time of investment. 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 in the particular type of investment
suggested by its name.
The Fund’s
primary benchmark index is the S&P 500® Index and
the Fund’s secondary benchmark is the Bloomberg U.S. Aggregate Bond Index. The
S&P 500® Index is
the Standard & Poor’s 500 Composite Stock Price Index of 500 stocks, an
unmanaged index of common stock prices. The Bloomberg U.S. Aggregate Bond Index
is an unmanaged index of bond prices.
Goldman Sachs
International Equity Dividend and Premium Fund and Goldman Sachs U.S. Equity
Dividend and Premium Fund
The Funds use a variety of
quantitative techniques, in combination with a qualitative overlay, when
selecting investments. The International Equity Dividend and Premium Fund
invests primarily in a diversified portfolio of common stocks of large-cap and
mid-cap non-U.S. issuers.
The U.S.
Equity
Dividend and
Premium Fund invests primarily in a diversified portfolio of common stocks of
large-cap U.S.
issuers.
22
Investment
Management Approach
The
International Equity Dividend Premium Fund seeks to generate additional cash
flow by the sale of call options on the MSCI EAFE Index and other national or
regional stock market indices (or related ETFs). The U.S. Equity Dividend and
Premium Fund seeks to generate additional cash flow by the sale of call options
on the S&P 500® Index (or
related ETFs). The volatility of the Funds’ portfolios is expected to be reduced
by the Funds’ sale of call options. The Funds anticipate that cash flow will be
derived from dividends on the common stock in their portfolios and premiums they
receive from selling call options. Cash flow from dividends will generally be
considered income and will be included in quarterly distributions of income.
Cash flow from options premiums is considered to be capital and will be included
in the Funds’ annual distributions of net capital gains. In addition, the Funds’
returns will be affected by the capital appreciation and depreciation of the
securities held in their respective portfolios.
The Funds
expect that, under normal circumstances, each Fund will sell call options in an
amount that is between 20% and 75% of the value of the Fund’s portfolio. As the
seller of the call options, a Fund will receive cash (the “premium”) from the
purchaser. Depending upon the type of index call option, the purchaser of a call
option either (i) has the right to any appreciation in the value of the index
over a fixed price (the “exercise price”) on a certain date in the future (the
“expiration date”) or (ii) has the right to any appreciation in the value of the
index over the exercise price at any time prior to the expiration of the option.
If the purchaser does not exercise the option, a Fund retains the premium and
makes no payments to the purchaser. If the purchaser exercises the option, a
Fund pays the purchaser the difference between the price of the index and the
exercise price of the option. The premium, the exercise price and the market
price of the index determine the gain or loss realized by each Fund as the
seller of the call option. A Fund can also repurchase the call option prior to
the expiration date, ending its obligation. In this case, the cost of entering
into closing purchase transactions will determine the gain or loss realized by a
Fund.
During
periods in which the equity markets are generally unchanged or falling, a
diversified portfolio with a call option writing strategy may outperform the
same portfolio without the options because of the premiums received from writing
call options. Similarly, in a modestly rising market (where the income from
premiums exceeds the aggregate appreciation of the underlying index over its
exercise price) such a portfolio may outperform the same portfolio without the
options. However, in other rising markets (where the aggregate appreciation of
the underlying index over its exercise price exceeds the income from premiums),
a portfolio with a call writing strategy could significantly underperform the
same portfolio without the options.
Tax-Efficient
Investing. The Funds
seek to achieve returns primarily in the form of qualifying dividends paid on
common stocks and long-term capital gains. Typically the options strategy will
generate realized capital gains in a declining or modestly rising equity market,
and will realize capital losses in a strongly rising equity market. These gains
or losses will be a mix of short-and long-term character. The Funds will seek to
offset any short-term realized capital gains from the options strategy with
realized short-term losses in the stock portfolio. The tax goals of these Funds
differ from those of the International Tax-Managed Equity Fund and the U.S.
Tax-Managed Equity Fund described elsewhere in the Prospectus. The Funds do not
seek to defer the realization of long-term capital gains. They seek to avoid or
minimize any net short-term capital gains.
The returns
to the options strategy will be characterized as capital gains or losses. These
will be aggregated with realized capital gains and losses from the equity
portfolio to determine each Fund’s net capital gain or loss. The Funds generally
will not make a distribution of capital gain unless they end the year with an
overall net capital gain. This means that it is possible the Funds will make no
distribution of capital gains in some years even if the options strategy, by
itself, generated a gain. If these gains were more than offset by losses from
stock transactions, then the gain from the options strategy will remain in the
Funds, and add to the Funds’ net asset value, but will not be distributed in
that year. See “Taxation-Distributions” below.
Other. The Funds’
investments in fixed income securities are limited to cash
equivalents.
I. Stock Selection
and Portfolio Construction
The Funds seek to maintain
an equity portfolio that will produce a gross return similar to that of their
respective equity benchmarks.
In addition,
each Fund will write index call options against a portion of its equity
portfolio. Because of the impact of call options written by the Funds, the
returns of the Funds are not expected to closely track their respective equity
benchmarks, even if the returns of the portfolio securities held by each Fund
resemble the return of the equity benchmark. In addition, the return of each
Fund may trail the return of its equity benchmark for short or extended periods
of time.
Generally,
the Funds will seek to hold certain of the higher dividend paying stocks within
each industry and sector while still maintaining industry and sector weights
that are similar to those of their respective equity benchmarks. The Investment
Adviser will consider annualized dividend yields, scheduled dividend record
dates and any extraordinary dividends when evaluating securities. The Investment
Adviser will generally not seek to outperform each Fund’s equity benchmark
through active security selection.
The
Investment Adviser will use proprietary quantitative techniques, including
optimization tools, a risk model and a transactions cost model, in combination
with a qualitative overlay, in identifying a portfolio of stocks that it
believes may enhance expected dividend yield while limiting deviations when
compared to each Fund’s equity benchmark. As a result of the qualitative
overlay, a Fund’s investments may not correspond to those generated by the
Investment Adviser’s proprietary models. Each Fund may make investment decisions
that deviate from those generated by the Investment Adviser’s proprietary
models, at the discretion of the Investment Adviser
23
for a
number of reasons including, but not limited to, corporate actions (e.g.,
reorganizations, mergers and buy-outs), industry events and/or trading
liquidity. In addition, the Investment Adviser may, in its discretion, make
changes to its quantitative techniques, or use other quantitative techniques
that are based on the Investment Adviser’s proprietary research. Deviations are
constrained with regard to position sizes, industry weights, sector weights,
volatility as compared to the market (i.e., Beta) and estimated tracking
error.
II. Call
Writing
The Funds
will regularly write call options in order to generate additional cash flow. It
is anticipated that the calls will typically be written against the MSCI EAFE
Index (or against ETFs linked to the MSCI EAFE Index) or against other national
or regional stock market indices for the International Equity Dividend and
Premium Fund and the S&P 500® Index (or
against ETFs linked to the S&P 500® Index) or
against other national or regional stock market indices for the U.S. Equity
Dividend and Premium Fund. The goal of the call writing is to generate an amount
of premium that, when annualized and added to each Fund’s expected dividend
yield, provides an attractive level of cash flow. Call writing, however, entails
certain risks. For more information, see “Risks of the Funds” and “Appendix
A—Other Portfolio Risks—Risks of Writing Index Call Options.”
The
Investment Adviser anticipates generally using index call options with
expirations of three months or less. Outstanding call options may be closed
before expiration.
Goldman Sachs
International Tax-Managed Equity Fund
Equity
Investments. The Fund
invests, under normal circumstances, at least 80% of its Net Assets in equity
investments in non-U.S. issuers. 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 in the particular type of
investment suggested by its name.
The Fund
may allocate its assets among countries as determined by the Investment Adviser
from time to time. The Fund intends to have investments that are economically
tied to at least three countries, not including the United States.
The Fund seeks broad
representation of large-cap and mid-cap issuers across major countries and
sectors of the international economy, with some exposure to small-cap issuers.
The Fund uses a variety of quantitative techniques, in combination with a
qualitative overlay, when selecting investments that have the potential to
maximize the Fund’s after-tax return and minimize capital gains and income
distributions. These quantitative techniques, which are derived from fundamental
research and based on certain investment themes, including, among others,
Fundamental Mispricings, High Quality Business Models, Sentiment Analysis and
Market Themes & Trends, seek to maximize the Fund’s expected
return.
The MSCI EAFE
Index
is a free
float-adjusted market capitalization index that is designed to measure the
equity market performance of developed markets, excluding the United States and
Canada.
Goldman Sachs U.S.
Tax-Managed Equity Fund
Equity
Investments. The Fund
invests, under normal circumstances, at least 80% of its Net Assets in equity
investments in U.S. issuers. 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 in the particular type of
investment suggested by its name.
The Fund seeks broad
representation of large-cap, mid-cap and small-cap equity investments
representing all major sectors of the U.S. economy. The Fund uses a variety of
quantitative techniques, in combination with a qualitative overlay, when
selecting investments that have the potential to maximize the Fund’s after-tax
return and minimize capital gains and income distributions. These quantitative
techniques, which are derived from fundamental research and based on certain
investment themes, including, among others, Fundamental Mispricings, High
Quality Business Models, Sentiment Analysis and Market Themes & Trends, seek
to maximize the Fund’s expected return.
The Russell
3000® Index
is an
unmanaged index that measures the performance of the 3,000 largest U.S.
companies based on total market capitalization.
Goldman Sachs
International Tax-Managed Equity Fund and Goldman Sachs U.S. Tax-Managed Equity
Fund
Tax-Managed
Investing. In
managing the Funds, the Investment Adviser balances investment considerations
and tax considerations. The Funds seek to achieve returns primarily in the form
of price appreciation (which is not subject to current tax), and may use
different strategies in seeking tax-efficiency. These strategies
include:
◼
Offsetting
long-term and short-term capital gains with long-term and short-term capital
losses and creating loss carryforward positions
◼
Managing
portfolio turnover that may result in capital gains and losses
◼
Selling tax
lots of securities that have a higher tax basis before selling tax lots of
securities that have a lower tax basis
24
Investment
Management Approach
In
situations where the Funds would otherwise be required to sell portfolio
securities to meet shareholder redemption requests (and possibly realizing
taxable gains), the Funds may borrow money to make the necessary redemption
payments. In addition, Goldman Sachs may, but would not in any instance be
required to, make contemporaneous purchases of Fund shares for its own account
that would provide the Funds with cash to meet redemption payment
obligations.
When the
Funds borrow money, the Investment Adviser intends to hedge the excess market
exposure created by borrowing. There is no guarantee such hedging will be
completely effective.
The Funds
may not achieve their investment objectives of providing “after-tax” growth of
capital for various reasons.
Implementation
of tax-managed investment strategies may not materially reduce the amount of
taxable income and capital gains distributed by the Funds to
shareholders.
Other. The Funds’
investments in fixed income securities are limited to cash
equivalents.
The Funds
are not a suitable investment for individual retirement accounts, other
tax-exempt or tax-deferred accounts or for other investors who are not sensitive
to the federal income tax consequences of their investments.
GSAM Quantitative
Team’s Investment Philosophy for Goldman Sachs International Tax-Managed Equity
Fund and Goldman Sachs U.S. Tax-Managed Equity Fund:
GSAM’s
quantitative style of fund management emphasizes the three building blocks of
active management: fundamentally-based
stock selection, careful portfolio construction and efficient
implementation.
Step 1: Stock
Selection
The
Investment Adviser attempts to forecast expected returns on approximately 13,000
stocks and 45 equity markets on a daily basis. Stock return forecasts are
determined using proprietary models developed by the Quantitative Investment
Strategies (“QIS”) team.
These
models are based on certain investment themes, including, among others,
Fundamental Mispricings, High Quality Business Models, Sentiment Analysis and
Market Themes & Trends. Fundamental
Mispricings seeks to
identify high-quality businesses trading at a fair price, which the Investment
Adviser believes leads to strong performance over the long-run. High
Quality Business Models seeks to
identify companies that are generating high-quality revenues with sustainable
business models and aligned management incentives. Sentiment
Analysis seeks to
identify stocks experiencing improvements in their overall market
sentiment.
Market
Themes and Trends seeks to
identify companies positively positioned to benefit from themes and trends in
the market and macroeconomic environment.
The
investment themes have been selected because we believe they:
◼
Offer
fundamental investment appeal
◼
Demonstrate
a statistical ability to forecast returns
◼
Work well
in a variety of market environments and across different types of
stocks
◼
Contribute
to excess return as demonstrated by attribution from portfolio
simulations.
In
addition, since the correlation between these themes is low, each brings new
information to the overall evaluation of a stock’s attractiveness and
contributes to a better buy/sell decision. Weights on the themes vary and are
adjusted depending on historical returns, correlation, turnover, historical and
expected volatility and crowding (i.e., popularity). Theme weights are updated
daily to reflect current market conditions.
As a part
of the Investment Adviser’s stock selection process, the Investment Adviser
utilizes proprietary models that assess a wide range of indicators, which may
include certain environmental, social and governance (“ESG”) indicators. The
Investment Adviser, in its sole discretion, may periodically update the
indicators used in the investment decision-making process of the
Funds.
The
indicators applied by the Investment Adviser are assessed in reliance on one or
a number of third-party ESG vendors. The Investment Adviser, in its sole
discretion, retains the right not to use data provided by third-party vendors
where it deems the data to be not representative of a company’s current business
operations.
For
additional information regarding the investment themes that the Investment
Adviser may employ from time to time, please consult the Funds’ SAI.
Step 2: Portfolio
Construction
The
Investment Adviser then uses a proprietary risk model to help manage the
expected deviation of the portfolio’s returns from those of the benchmark. The
model attempts to identify and measure the comparative risks between equity
investments as accurately as possible, by including in the risk model all of the
above themes used in the return model, as well as several other factors that the
Investment Adviser believes are associated with risk but not return. In this
process, the Investment Adviser seeks to add value over the
25
benchmark by overweighting
stocks with attractive characteristics (as defined by the return model) and
underweighting stocks with poor characteristics relative to the stocks’
benchmark weights. At the same time, the Investment Adviser seeks to manage risk
by controlling active stock positions as well as exposure to other
characteristics such as size and sector allocations relative to the benchmark.
The Investment Adviser uses a computer optimizer to evaluate many different
security combinations (considering many possible weightings) in an effort to
construct the most efficient portfolio given each Fund’s investable universe.
The Investment Adviser also seeks to address climate transition risk by
weighting stocks based, in part, on certain proprietary emissions metrics. The
Investment Adviser may, in its discretion, modify or discontinue the weighting
of stocks by proprietary emissions metrics.
Step 3: Efficient
Implementation
The
portfolio management team considers transaction costs at various steps of the
investment process. The team incorporates expected portfolio turnover when
assigning weights to the variables of the return model. The team also takes into
account expected execution costs and evaluates multiple trading
options.
Each Fund’s
investment selection process generally relies on quantitative techniques. From
time to time the Investment Adviser may, in its discretion, also utilize a
qualitative overlay. As a result of the qualitative overlay, a Fund’s
investments may not correspond to those generated by the Investment Adviser’s
proprietary models. Each Fund may make investment decisions that deviate from
those generated by the Investment Adviser’s proprietary models, at the
discretion of the Investment Adviser for a number of reasons including, but not
limited to, corporate actions (e.g., reorganizations, mergers and buy-outs),
industry events and/or trading liquidity. In addition, the Investment Adviser
may, in its discretion, make changes to its quantitative techniques, or use
other quantitative techniques based on the Investment Adviser’s proprietary
research. The Investment Adviser employs an investment process that considers a
wide range of indicators and risks, and no one indicator, risk or consideration
is determinative. For additional information, please consult the Funds’
SAI.
All Funds
In
determining whether an issuer is economically tied to a particular country, the
Investment Adviser will consider whether the issuer:
◼
Has a class
of securities whose principal securities market is in that country;
◼
Has its
principal office in that country;
◼
Derives 50%
or more of its total revenue or profit from goods produced, sales made or
services provided in that country;
◼
Maintains
50% or more of its assets in that country; or
◼
Is
otherwise determined to be economically tied to that country by the Investment
Adviser in its discretion. For example, the Investment Adviser may use the
classifications assigned by third parties, including an issuer’s “country of
risk” as determined by Bloomberg or the classifications assigned to an issuer by
a Fund’s benchmark index provider. These classifications are generally based on
a number of criteria, including an issuer’s country of domicile, the primary
stock exchange on which an issuer’s securities trade, the location from which
the majority of an issuer’s revenue is derived, and an issuer’s reporting
currency. Although the Investment Adviser may rely on these classifications, it
is not required to do so.
The Funds
may, from time to time, take temporary defensive positions that are inconsistent
with the Funds’ principal investment strategies in attempting to respond to
adverse market, political or other conditions. For temporary defensive purposes,
each Fund may invest a certain percentage of its total assets (up to 100%, in
the case of International Equity Dividend and Premium Fund and International
Tax-Managed Equity Fund) in securities issued or guaranteed by the U.S.
government, its agencies, instrumentalities or sponsored enterprises (“U.S.
Government Securities”), commercial paper rated at least A-2 by S&P Global
Ratings (“Standard & Poor’s”), P-2 by Moody’s Investors Service, Inc.
(“Moody’s”) or having a comparable credit rating by another nationally
recognized statistical rating organization (“NRSRO”), (or if unrated, determined
by the Investment Adviser to be of comparable credit quality), certificates of
deposit, bankers’ acceptances, repurchase agreements, non-convertible preferred
stocks and non-convertible corporate bonds with a remaining maturity of less
than one year, certain ETFs and other investment companies and cash items.
When
a Fund’s assets are invested in such instruments, the Fund may not be achieving
its investment objective.
GSAM serves
as investment adviser to the Funds. GSAM is referred to in the Prospectus as the
“Investment Adviser.”
References
in the Prospectus to a Fund’s benchmark or benchmarks are for informational
purposes only, and unless otherwise noted are not an indication of how a
particular Fund is managed.
|
ADDITIONAL
FEES AND EXPENSES INFORMATION |
Differences
in the “Expense Limitation” ratios across a Fund’s share classes are a result
of, among other things, the effect of mathematical rounding on the daily accrual
of expense reimbursement, particularly, in respect to share classes with small
amounts of assets.
26
Investment
Management Approach
Differences
in the “Other Expenses” ratios across a Fund’s share classes are the result of,
among other things, contractual differences in transfer agency fees and/or the
effect of mathematical rounding on the daily accrual of certain expenses,
particularly, in respect to share classes with small amounts of
assets.
|
ADDITIONAL
PERFORMANCE INFORMATION |
The below
is additional information that relates to the “Performance” section of each
Fund’s summary section.
Note that
the “Best Quarter” and “Worst Quarter” figures shown in the “Performance”
section of each Fund’s Summary section are applicable only to the time period
covered by the bar chart.
These
definitions apply to the after-tax returns shown in the “Performance” section of
each Fund’s Summary section.
Average
Annual Total Returns Before Taxes. These
returns do not reflect taxes on distributions on a Fund’s shares nor do they
show how performance can be impacted by taxes when shares are redeemed (sold) by
you.
Average
Annual Total Returns After Taxes on Distributions. These
returns assume that taxes are paid on distributions on a Fund’s Class A Shares
(i.e., dividends and capital gains) but do not reflect taxes that may be
incurred upon redemption (sale) of the Class A Shares at the end of the
performance period.
Average
Annual Total Returns After Taxes on Distributions and Sale of Fund
Shares. These
returns reflect taxes paid on distributions on a Fund’s Class A Shares and taxes
applicable when the shares are redeemed (sold).
Note
on Tax Rates. The
after-tax performance figures are calculated using the historically highest
individual federal marginal income tax rates at the time of the distributions
and do not reflect state and local taxes. In calculating the federal income
taxes due on redemptions, capital gains taxes resulting from a redemption are
subtracted from the redemption proceeds and the tax benefits from capital losses
resulting from the redemption are added to the redemption proceeds. Under
certain circumstances, the addition of the tax benefits from capital losses
resulting from redemptions may cause the Returns After Taxes on Distributions
and Sale of Fund Shares to be greater than the Returns After Taxes on
Distributions or even the Returns Before Taxes.
|
OTHER
INVESTMENT PRACTICES AND
SECURITIES |
Although
each Fund’s principal investment strategies are described in the Fund’s
Summary—Principal Strategy section of the Prospectus, the following tables
identify 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 tables
also highlight the differences and similarities among the Funds in their use of
these techniques and other investment practices and investment securities.
Numbers in these tables 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) complete portfolio holdings
for the Fund as of the end of each calendar quarter subject to a fifteen
calendar-day lag (60 calendar-day lag, in the case of the U.S. Tax-Managed
Equity and International Tax-Managed Equity Funds) between the date of the
information and the date on which the information is disclosed. In addition, the
Funds publish on their website month-end top ten holdings subject to a fifteen
calendar-day lag between the date of the information and the date on which the
information is disclosed. In addition, a description of the Funds’ policies and
procedures with respect to the disclosure of the Funds’ portfolio holdings is
available in the Funds’ SAI.
27
|
10
Percent of total assets (including securities lending collateral) (italic
type)
10
Percent of net assets (excluding borrowings for investment purposes)
(roman type)
•
No specific percentage limitation on usage; limited only by the objectives
and strategies of the Fund
— Not
permitted |
International
Equity
Dividend
and
Premium
Fund |
International
Tax-Managed
Equity
Fund |
U.S.
Tax-Managed
Equity
Fund |
U.S.
Equity
Dividend
and
Premium
Fund |
|
Investment
Practices |
|
|
|
|
|
Borrowings |
33 1∕3 |
33 1∕3 |
33 1∕3 |
33 1∕3 |
|
Credit,
Currency, Index, Interest Rate, Total Return and Mortgage Swaps and
Options on
Swaps |
• |
• |
— |
— |
|
Cross
Hedging of Currencies |
• |
• |
— |
— |
|
Custodial
Receipts and Trust Certificates |
• |
• |
• |
• |
|
Equity
Swaps |
• |
• |
• |
• |
|
Foreign
Currency Transactions (including forward contracts)* |
• |
• |
— |
— |
|
Futures
Contracts and Options and Swaps on Futures Contracts |
• |
• |
•3
|
•3
|
|
Illiquid
Investments** |
15 |
15 |
15 |
15 |
|
Interest
Rate Caps, Floors and Collars |
• |
• |
• |
— |
|
Investment
Company Securities (including ETFs)*** |
10 |
10 |
10 |
10 |
|
Mortgage
Dollar Rolls |
— |
• |
— |
— |
|
Options
on Foreign Currencies1
|
• |
• |
— |
— |
|
Options2
|
• |
• |
• |
• |
|
Preferred
Stock, Warrants and Stock Purchase Rights |
• |
• |
• |
• |
|
Repurchase
Agreements |
• |
• |
• |
• |
|
Securities
Lending |
33 1∕3 |
33 1∕3 |
33 1∕3 |
33 1∕3 |
|
Unseasoned
Companies |
• |
• |
• |
• |
|
When-Issued
Securities and Forward Commitments |
• |
• |
• |
• |
*
Limited
by the amount each Fund may invest in foreign securities.
**
Illiquid
investments are any investments that a Fund reasonably expects cannot be sold or
disposed of in current market conditions in seven calendar days or less without
the sale or disposition significantly changing the market value of the
investment.
***
This
percentage limitation does not apply to a Fund’s investment in investment
companies (including ETFs) where a higher percentage limitation is permitted
under the Investment Company Act or rules, regulations or exemptive relief
thereunder.
1
The
International Equity Dividend and Premium Fund and the International Tax-Managed
Equity Fund may purchase and sell call and put options on foreign
currencies.
2
The
Funds may sell call and put options and purchase call and put options on
securities and securities indices in which they may invest.
3
The
U.S. Tax-Managed Equity Fund and U.S. Equity Dividend and Premium Fund may enter
into futures transactions only with respect to U.S. equity indices.
28
Investment
Management Approach
|
10
Percent of total assets (excluding securities lending collateral) (italic
type)
10
Percent of net assets (including borrowings for investment purposes)
(roman type)
•
No specific percentage limitation on usage; limited only by the objectives
and strategies of the Fund— Not
permitted |
International
Equity
Dividend
and
Premium
Fund |
International
Tax-Managed
Equity
Fund |
U.S.
Tax-Managed
Equity
Fund |
U.S.
Equity
Dividend
and
Premium
Fund |
|
Investment
Securities |
|
|
|
|
|
American,
European and Global Depositary Receipts |
• |
• |
•1
|
•1
|
|
Bank
Obligations2
|
• |
• |
• |
• |
|
Convertible
Securities3
|
• |
• |
• |
• |
|
Corporate
Debt Obligations2
|
• |
• |
• |
• |
|
Equity
Investments |
80+ |
80+ |
80+ |
80+ |
|
Emerging
Country Securities |
• |
• |
— |
— |
|
Fixed
Income Securities2
|
20 |
20 |
20 |
20 |
|
Foreign
Securities |
• |
• |
•4
|
•4
|
|
Real
Estate Investment Trusts |
• |
• |
• |
• |
|
Structured
Securities2,5
|
• |
• |
• |
• |
|
Temporary
Investments |
• |
• |
35 |
35 |
|
U.S.
Government Securities2
|
• |
• |
• |
• |
1
The
U.S. Tax-Managed Equity Fund and U.S. Equity Dividend and Premium Fund do not
invest in European Depositary Receipts.
2
Limited
by the amount the Fund invests in fixed income securities and limited to cash
equivalents only.
3
Convertible
securities purchased by the Fund use the same rating criteria for convertible
and non-convertible debt securities.
4
Equity
securities of foreign issuers must be traded in the United States.
5
Structured
securities are not subject to the same minimum credit quality requirement as a
Fund’s investments in fixed income securities.
29
Risks of
the Funds
Loss of
money is a risk of 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 FDIC or any other governmental agency. The principal risks of the Fund are
discussed in the Summary section 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.
|
✓ Principal
Risk
• Additional
Risk |
International
Equity
Dividend
and
Premium
Fund |
International
Tax-Managed
Equity
Fund |
U.S.
Tax-Managed
Equity
Fund |
U.S.
Equity
Dividend
and
Premium
Fund |
|
Asian
Investment |
• |
• |
|
|
|
Credit/Default |
• |
• |
• |
• |
|
Cybersecurity |
• |
• |
• |
• |
|
Derivatives |
• |
• |
• |
• |
|
Dividend-Paying
Investments Risk |
✓ |
|
|
✓ |
|
Emerging
Countries |
• |
• |
|
|
|
ESG
Integration Risk |
|
• |
• |
|
|
Foreign |
✓ |
✓ |
• |
• |
|
Investment
Style |
✓ |
✓ |
✓ |
✓ |
|
Large
Shareholder Transactions |
✓ |
✓ |
✓ |
✓ |
|
Liquidity |
• |
• |
• |
• |
|
Management |
✓ |
✓ |
✓ |
✓ |
|
Market |
✓ |
✓ |
✓ |
✓ |
|
Mid-Cap
and Small-Cap |
• |
• |
• |
• |
|
Net
Asset Value (“NAV”) |
• |
• |
• |
• |
|
Option
Writing |
✓ |
|
|
✓ |
|
Portfolio
Turnover Rate |
|
✓ |
✓ |
|
|
Stock |
✓ |
✓ |
✓ |
✓ |
|
Tax-Managed
Investment |
✓ |
✓ |
✓ |
✓ |
◼
Asian
Investment Risk—Investing in certain Asian
issuers may involve a higher degree of risk and special considerations not
typically associated with investing in issuers from more established economies
or securities markets. Many Asian countries, including China, can be
characterized as either developing or newly industrialized economies and tend to
experience more volatile economic cycles than developed countries. Some
countries in the region have in the past experienced currency devaluations that
resulted in high interest rate levels, sharp reductions in economic activity and
significant drops in securities prices.Moreover, as export-driven economies, the
economies of these countries are affected by developments in the economies of
their principal trading partners, including the U.S. Furthermore, flooding,
monsoons and other natural disasters also can significantly affect the value of
investments. Some countries in the region have in the past imposed restrictions
on converting local currency which prevented foreign firms from selling assets
and repatriating funds. Many countries in the region have historically
encountered political uncertainty, corruption, military intervention, social
unrest and regional armed conflict. Examples include territorial disputes with
China, ethnic and sectarian violence in Indonesia and India, armed conflict
between India and Pakistan and between North Korea and South Korea, and
insurgencies in the Philippines.
◼
Credit/Default
Risk—An issuer
or guarantor of fixed income securities or instruments held by a Fund may
default on its obligation to pay interest and repay principal or default on any
other obligation. 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 as well as in connection
with a Fund’s investments in non-investment grade fixed income
securities.
◼
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 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
30
Risks
of the Funds
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.
◼
Derivatives
Risk—The
Fund’s use of options, futures, forwards, swaps, options on swaps,
structured securities and other s and similar instruments (collectively referred
to in this paragraph as “derivatives”) may result in losses, including due to
adverse market movements. Derivatives, which may pose risks in addition to and
greater than those associated with investing directly in securities, currencies
or other instruments, may increase market exposure and be illiquid or less
liquid, volatile, difficult to price and leveraged so that small changes in the
value of the underlying assets or instruments may produce disproportionate
losses to the Fund. Certain derivatives are also subject to counterparty risk,
which is the risk that the other party in the transaction will not
fulfill,
or lacks the
capacity or authority to fulfill, its contractual obligations, liquidity
risk,
which includes
the risk that the Fund will not be able to close its derivatives position when
it is advantageous to do so, and risks arising from margin requirements, which
include the risk that the Fund will be required to pay additional margin or set
aside additional collateral to maintain open derivative positions. Derivatives
may be used for both hedging and non-hedging purposes.
The use of
derivatives is a highly specialized activity that involves investment techniques
and risks different from those associated with investments in more traditional
securities and instruments, and there is no guarantee that the use of
derivatives will achieve their intended result. If the Investment Adviser is
incorrect in its expectation of the timing or level of fluctuation in securities
prices, interest rates, currency prices or other variables, the use of
derivatives could result in losses, which in some cases may be significant. A
lack of correlation between changes in the value of derivatives and the value of
the portfolio assets (if any) being hedged could also result in losses. In
addition, there is a risk that the performance of the derivatives or other
instruments used by the Investment Adviser to replicate the performance of a
particular asset class may not accurately track the performance of that asset
class.
The
use of
derivatives
is
also
subject to
operational and legal risks.
Operational
risks generally refer to
risks related
to potential operational issues, including documentation issues, settlement
issues, system failures,
inadequate
controls, and human error.
Legal risks
generally refer to risks of loss resulting from insufficient documentation or
legality or enforceability of
a
contract.
◼
Dividend-Paying
Investments Risk—The Fund’s
investments in dividend-paying securities could cause the Fund to underperform
other funds that invest in similar asset classes but employ a different
investment style. Securities that pay dividends, as a group, can fall out of
favor with the market, causing such securities to underperform securities that
do not pay dividends. Depending upon market conditions and political and
legislative responses to such conditions, dividend-paying securities that meet
the Fund’s investment criteria may not be widely available and/or may be highly
concentrated in only a few market sectors. For example, in response to the
outbreak of a novel strain of coronavirus (known as COVID-19), the U.S.
Government passed the Coronavirus Aid, Relief and Economic Security Act in March
2020, which established loan programs for certain issuers impacted by COVID-19.
Among other conditions, borrowers under these loan programs are generally
restricted from paying dividends. The adoption of new legislation could further
limit or restrict the ability of issuers to pay dividends. To the extent that
dividend-paying securities are concentrated in only a few market sectors, the
Fund may be subject to the risks of volatile economic cycles and/or conditions
or developments that may be particular to a sector to a greater extent than if
its investments were diversified across different sectors. In addition, issuers
that have paid regular dividends or distributions to shareholders may not
continue to do so at the same level or at all in the future. A sharp rise in
interest rates or an economic downturn could cause an issuer to abruptly reduce
or eliminate its dividend. This may limit the ability of the Fund to produce
current income.
◼
Emerging
Countries Risk—Investments
in securities of issuers located in emerging countries are subject to the risks
associated with investments in foreign securities. In addition, the securities
markets of most emerging countries are less liquid, developed and efficient, are
subject to greater price volatility, and have smaller market capitalizations. In
addition, emerging markets and frontier countries may have more or less
government regulation and generally do not impose as extensive and frequent
accounting, auditing, financial and other reporting requirements as the
securities markets of more developed countries. As a result, there could be less
information available about issuers in emerging and frontier market countries,
which could negatively affect the Investment Adviser’s ability to evaluate local
companies or their potential impact on the Fund’s performance. Further,
investments in securities of issuers located in certain emerging countries
involve the risk of loss resulting from problems in share registration,
settlement or custody, substantial economic, political and social disruptions
and the imposition of sanctions or exchange controls (including repatriation
restrictions). The legal remedies for investors in emerging and frontier markets
may be more limited than the remedies available in the U.S., and the ability of
U.S. authorities (e.g., SEC and
the U.S. Department of Justice) to bring actions against bad actors may be
limited. These risks are not normally associated with investments in more
developed countries. For more information about these risks, see Appendix
A.
◼
ESG
Integration Risk—As a part
of the Investment Adviser’s stock selection process, the Investment Adviser
utilizes proprietary models that assess a wide range of indicators, which may
include certain ESG indicators. The relevance and weightings of specific ESG
indicators to or within the investment process varies across asset classes,
sectors and strategies and no one factor, consideration or indicator is
determinative. When integrating ESG indicators into the investment process,
the Investment Adviser
31
may rely on third-party
data that it believes to be reliable, but it does not guarantee the accuracy of
such third-party data. ESG information from third-party data providers may
be incomplete, inaccurate or unavailable, which may adversely impact the
investment process. Moreover, ESG information, whether from an external
and/or internal source, is, by nature and in many instances, based on a
qualitative and subjective assessment. An element of subjectivity and
discretion is therefore inherent to the interpretation and use of ESG data. The
process for conducting ESG assessments and implementation of ESG views in
client/fund portfolios, including the format and content of such analysis and
the tools and/or data used to perform such analysis, may also vary among the
Investment Adviser’s portfolio management teams. While the Investment Adviser
believes that the integration of material ESG indicators into the Fund’s
investment process has the potential to identify financial risks and contribute
to the Fund’s long-term performance, ESG indicators may not be considered for
each and every investment decision, and there is no guarantee that the
integration of ESG indicators will result in better performance. Investors
can differ in their views of what constitutes positive or negative ESG
characteristics. Moreover, the current lack of common standards may result
in different approaches to integrating ESG indicators. As a result, the
Fund may invest in companies that do not reflect the beliefs and values of any
particular investor. The Investment Adviser’s approach to ESG integration
may evolve and develop over time, both due to a refinement of investment
decision-making processes to address ESG indicators and risks, and because of
legal and regulatory developments.
◼
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
sanctions, exchange controls (including repatriation restrictions), 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 type and severity of sanctions and other similar measures,
including counter sanctions and other retaliatory actions, that may be imposed
could vary broadly in scope, and their impact is impossible to predict. These
types of measures may include, but are not limited to, banning a sanctioned
country from global payment systems that facilitate cross-border payments,
restricting the settlement of securities transactions by certain investors, and
freezing the assets of particular countries, entities, or persons. The
imposition of sanctions and other similar measures could, among other things,
cause a decline in the value and/or liquidity of securities issued by the
sanctioned country or companies located in or economically tied to the
sanctioned country, downgrades in the credit ratings of the sanctioned country
or companies located in or economically tied to the sanctioned country,
devaluation of the sanctioned country’s currency, and increased market
volatility and disruption in the sanctioned country and throughout the world.
Sanctions and other similar measures could limit or prevent the Fund from buying
and selling securities (in the sanctioned country and other markets),
significantly delay or prevent the settlement of securities transactions, and
significantly impact the Fund’s liquidity and performance. A 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. Geopolitical
developments in certain countries in which a Fund may invest have caused, or may
in the future cause, significant volatility in financial markets. These and
other geopolitical developments, including ongoing regional armed conflict in
Europe and elsewhere, could negatively impact the value of a Fund’s
investments.
The Fund's
investments in foreign securities may also be subject to foreign currency risk,
as described above, the risk of negative foreign currency rate
fluctuations, which may cause the value of securities denominated in such
foreign currency (or other instruments through which the Fund may have exposure
to foreign currencies) to decline in value. Currency exchange rates may
fluctuate significantly over short periods of time. Foreign risks will normally
be greatest when the Fund invests in securities of issuers located in emerging
countries. For more information about these risks, see Appendix A.
◼
Investment
Style Risk—Different
investment styles (e.g., “growth,”
“value” or “quantitative”) tend to shift in and out of favor depending upon
market and economic conditions and investor sentiment. The Fund employs various
non-traditional and alternative investment styles, and may outperform or
underperform other funds that invest in similar asset classes but employ
different investment styles.
◼
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
32
Risks
of the Funds
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 invest in securities or instruments that trade in lower volumes,
that are less
liquid than other investments
and/or that
may become illiquid or less liquid in response to market developments or adverse
investor perceptions. Investments that are illiquid or that trade in lower
volumes may be more difficult to value. 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 security or
instrument at all. An inability to sell one or more portfolio positions can
adversely affect the Fund's value or prevent the Fund from being able to take
advantage of other investment opportunities.
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.
Because the Fund may invest
in non-investment grade fixed income securities, small- and mid-capitalization
stocks, REITs and/or emerging country issuers, the Fund may be especially
subject to the risk that during certain periods, the liquidity of particular
issuers or industries, or all securities within a particular investment
category, may shrink or disappear suddenly and without warning as a result of
adverse economic, market or political events (including periods of rapid
interest rate changes), or adverse investor perceptions, whether or not
accurate.
Liquidity risk may also
refer to the risk that the Fund will not be able to pay redemption proceeds
within the allowable time period stated in the Prospectus or without significant
dilution to remaining investors’ interests 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 sellsecurities at an
unfavorable time and/or under unfavorable conditions, such sales may adversely
affect the Fund's NAV and dilute remaining investors’ interests.
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. Redemptions by these
shareholders of their shares of the Fund may further increase the Fund's
liquidity risk and may impact the Fund's NAV. These shareholders may include,
for example, institutional investors, funds of funds, discretionary
advisory clients, certain participating insurance companies, accounts or
Goldman Sachs affiliates and other shareholders, whose buy-sell decisions are
controlled by a single decision-maker.
◼
Management
Risk —The
strategy used by the Investment Adviser may fail to produce the intended
results. The Investment Adviser attempts to execute a complex strategy for the
Fund using proprietary quantitative models. Investments selected using these
models may perform differently than expected as a result of the factors used in
the models, the weight placed on each factor, changes from the factors’
historical trends, the speed that market conditions change and technical issues
in the construction and implementation of the models (including, for example,
data problems and/or software issues). The use of proprietary quantitative
models could be adversely impacted by unforeseeable software or hardware
malfunction and other technological failures, power loss, software bugs,
malicious code such as “worms,” viruses or system crashes or various other
events or circumstances within or beyond the control of the Investment Adviser.
Certain of these events or circumstances may be difficult to detect.
Models that
have been formulated on the basis of past market data may not be predictive of
future price movements. Models may not be reliable if unusual or disruptive
events cause market movements, the nature or size of which are inconsistent with
the historical performance of individual markets and their relationship to one
another or to other macroeconomic events. Models also rely heavily on data that
may be licensed from a variety of sources, and the functionality of the models
depends, in part, on the accuracy of voluminous data inputs. There is no
guarantee that the Investment Adviser’s use of these quantitative models will
result in effective investment decisions for the Fund. Additionally, commonality
of holdings across quantitative money managers may amplify losses.
◼
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
33
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.
◼
Mid-Cap
and Small-Cap Risk—The
securities of mid-capitalization and small-capitalization companies involve
greater risks than those associated with larger, more established companies and
may be subject to more abrupt or erratic price movements. Securities of such
issuers may lack sufficient market liquidity to enable the Fund to effect sales
at an advantageous time or without a substantial drop in price. Both
mid-capitalization and small-capitalization companies often have narrower
markets and more limited managerial and financial resources than larger, more
established companies. As a result, their performance can be more volatile and
they face greater risk of business failure, which could increase the volatility
of the Fund's portfolio. Generally, the smaller the company size, the greater
these risks become.
◼
NAV
Risk—The net
asset value of the Fund and the value of your investment will
fluctuate.
◼
Option
Writing Risk—Writing
(selling) call options limits the opportunity to profit from an increase in the
market value of stocks in exchange for up-front cash (premium) at the time of
selling the call option. When the Fund writes (sells) stock index (or related
ETF) call options, it receives cash but limits its opportunity to profit from an
increase in the market value of the index beyond the exercise price (plus the
premium received) of the option. In a sharp rising market, the Fund could
significantly underperform the market. The premium received from the Fund’s
option strategies may not fully protect it against declines in the value of the
market. Cash received from premiums will enhance return in moderately declining
markets, but the Fund will continue to bear the risk of a decline in the value
of the securities held in its portfolio and in a period of a sharply falling
equity market, the Fund will likely also experience sharp declines in its net
asset value. A put option written by the Fund obligates the Fund to purchase a
specified investment from the option holder at a specified price if the put
option is exercised before the expiration date. If the put option’s specified
price is above the market price of the investment at the time the put option is
exercised, the Fund would incur losses, which may exceed the up-front cash
(premium) received from writing the put option.
◼
Portfolio
Turnover Rate Risk—The U.S. Tax-Managed
Equity Fund and the International Tax-Managed Equity Fund may engage in active
and frequent trading of portfolio securities to achieve their principal
investment strategies. A high rate of portfolio turnover (100% or more) involves
correspondingly greater expenses which must be borne by the Fund and its
shareholders, and is also likely to result in short-term capital gains taxable
to shareholders.
◼
Stock
Risk—Stock
prices have historically risen and fallen in periodic cycles. U.S. and
foreign stock markets have experienced periods of substantial price volatility
in the past and may do so again in the future. Stock prices may fluctuate from
time to time in response to the activities of individual companies and in
response to general market and economic conditions. Individual companies may
report poor results or be negatively affected by industry and/or economic trends
and developments, and the stock prices of such companies may suffer a decline in
response.
◼
Tax-Managed
Investment Risk—Because
the Investment Adviser balances investment considerations and tax
considerations, the pre-tax performance of the Funds may be lower than the
performance of similar Funds that are not tax-managed. This is because the
Investment Adviser may choose not to make certain investments that may result in
taxable distributions. Even though taxmanaged strategies are being used, they
may not reduce the amount of taxable income and capital gains distributed by the
Funds to shareholders. A high percentage of each Fund’s NAV may consist of
unrealized capital gains, which represent a potential future tax liability to
shareholders. The U.S. Tax-Managed Equity Fund and the International Tax-Managed
Equity Fund are not suitable investments for individual retirement accounts,
other tax-exempt or tax-deferred accounts or for other investors who are not
sensitive to the federal income tax consequences of their
investments.
More
information about the Fund’s portfolio securities and investment techniques, and
its 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.
34
Service
Providers
|
INVESTMENT
ADVISER |
|
Investment
Adviser |
Fund |
|
Goldman
Sachs Asset Management, L.P. (“GSAM”)
200
West Street
New
York, NY 10282 |
International
Equity Dividend and Premium
International
Tax-Managed Equity
U.S.
Tax-Managed Equity
U.S.
Equity Dividend and Premium |
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, these orders may be
directed to any executing brokers, dealers, futures commission merchants or
other counterparties, 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. The use of certain investment strategies
that involve manual or additional processing, such as over-the-counter
derivatives, increases these risks. 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.
From time
to time, Goldman Sachs or its affiliates may invest “seed” capital in the Fund.
These investments are generally intended to enable the Fund to commence
investment operations and achieve sufficient scale. Goldman Sachs and its
affiliates may hedge the exposure of the seed capital invested in the Fund by,
among other things, taking an offsetting position in the benchmark of the
Fund.
35
|
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):
|
Fund |
Contractual
Management
Fee
Annual
Rate |
Average
Daily
Net
Assets |
Actual
Rate
For
the Fiscal
Year
Ended
December
31, 2022* |
|
International
Equity Dividend and Premium |
0.81% |
First $1
billion |
0.81% |
|
|
0.73% |
Next $1
billion |
|
|
|
0.69% |
Next $3
billion |
|
|
|
0.68% |
Next $3
billion |
|
|
|
0.67% |
Over $8
billion |
|
|
International
Tax-Managed Equity |
0.85% |
First $1
billion |
0.85% |
|
|
0.77% |
Next $1
billion |
|
|
|
0.73% |
Next $3
billion |
|
|
|
0.72% |
Next $3
billion |
|
|
|
0.71% |
Over $8
billion |
|
|
U.S.
Tax-Managed Equity |
0.70% |
First $1
billion |
0.66% |
|
|
0.63% |
Next $1
billion |
|
|
|
0.60% |
Next $3
billion |
|
|
|
0.59% |
Next $3
billion |
|
|
|
0.58% |
Over $8
billion |
|
|
U.S.
Equity Dividend and Premium |
0.75% |
First $1
billion |
0.66% |
|
|
0.68% |
Next $1
billion |
|
|
|
0.65% |
Next $3
billion |
|
|
|
0.64% |
Next $3
billion |
|
|
|
0.63% |
Over $8
billion |
|
*
The
Actual Rate may not correlate to the Contractual Management Fee Annual Rate as a
result of management fee waivers that may be in effect from time to
time.
The Investment Adviser has
agreed to waive a portion of its management fee with respect to the U.S. Equity
Dividend and Premium Fund in order to achieve an effective net management
fee
rate of
0.64%
of the Fund's
average daily net assets. This arrangement will remain in effect through at
least April 28, 2024, and prior to such
date, the Investment Adviser may not terminate the arrangement without the
approval of the Board of Trustees. This management fee waiver may be modified or
terminated by the Investment Adviser at its discretion and without shareholder
approval after such date, although the Investment Adviser does not presently
intend to do so.
In addition
to the management fee waiver discussed above, 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 Funds invest, from time to time and
may discontinue or modify any such waivers in the future, consistent with the
terms of any fee waiver arrangements in place.
A discussion regarding the
basis for the Board of Trustees’ approval of the Management Agreement for 2022
for the Funds is available in the Funds’ Semi-Annual report dated June 30,
2022.
The Investment Adviser has agreed to reduce or limit “Other Expenses” (excluding acquired fund fees and expenses, transfer agency fees and expenses, service fees, taxes, interest, brokerage fees, expenses of shareholder meetings, litigation and indemnification, and extraordinary expenses) to 0.044%, 0.014%, 0.044%, and 0.004% of average daily net assets for the International Equity Dividend and Premium, International Tax-Managed Equity, U.S. Tax-Managed Equity and U.S. Equity Dividend and Premium Funds, respectively, through at least April 28, 2024, and prior to such date the Investment Adviser may not terminate the arrangements without the approval of the Board of Trustees. The expense limitations may be modified or terminated by the Investment Adviser at its discretion and without shareholder approval after such date, although the Investment Adviser does not presently intend to do so. A Fund’s “Other Expenses” may be further reduced by any custody and transfer agency fee credits received by the Fund.
The Investment Adviser has agreed to reduce or limit “Other Expenses” (excluding acquired fund fees and expenses, transfer agency fees and expenses, service fees, taxes, interest, brokerage fees, expenses of shareholder meetings, litigation and indemnification, and extraordinary expenses) to 0.044%, 0.014%, 0.044%, and 0.004% of average daily net assets for the International Equity Dividend and Premium, International Tax-Managed Equity, U.S. Tax-Managed Equity and U.S. Equity Dividend and Premium Funds, respectively, through at least April 28, 2024, and prior to such date the Investment Adviser may not terminate the arrangements without the approval of the Board of Trustees. The expense limitations may be modified or terminated by the Investment Adviser at its discretion and without shareholder approval after such date, although the Investment Adviser does not presently intend to do so. A Fund’s “Other Expenses” may be further reduced by any custody and transfer agency fee credits received by the Fund.
36
Service
Providers
|
FUND
MANAGERS |
Quantitative
Investment Strategies Team
The
individuals jointly and primarily responsible for the day-to-day management of
the Fund are listed below. The Fund’s portfolio managers' individual
responsibilities may differ and may include, among other things,
development and maintenance of quantitative models and processes in combination
with a qualitative overlay, asset allocation, risk budgeting and general
oversight of research, implementation processes and the management of the Funds’
portfolios.
Quantitative
Investment Strategies Team
|
Name
and Title |
Fund
Responsibility |
Years
Primarily
Responsible |
Five
Year Employment History |
|
John
Sienkiewicz
Managing
Director |
Portfolio
Manager—
International
Equity
Dividend
and Premium
International
Tax-Managed
Equity
U.S.
Tax-Managed Equity
U.S.
Equity Dividend and
Premium |
Since
2020
2020
2020
2020 |
John
Sienkiewicz joined the Investment Adviser in
2009. |
|
Osman
Ali, CFA
Managing
Director |
Portfolio
Manager—
International
Tax-Managed
Equity
U.S.
Tax-Managed Equity |
Since
2014
2014 |
Mr.
Ali joined the Investment Adviser as an analyst in 2005 and has
been
a portfolio manager since 2009. |
|
Monali
Vora, CFA
Managing
Director |
Portfolio
Manager—
International
Equity
Dividend
and Premium
International
Tax-Managed
Equity
U.S.
Tax-Managed Equity
U.S.
Equity Dividend and
Premium |
Since
2010
2010
2010
2010 |
Ms.
Vora is a member of the Customized Beta Strategies team. Prior
to
working in the Customized Beta Strategies team, she spent six
years
as a member of the QIS Equity Portfolio team. She joined the
Investment
Adviser in 2000. |
|
Aron
Kershner
Managing
Director |
Portfolio
Manager—
International
Equity
Dividend
and Premium
U.S.
Equity Dividend and
Premium |
Since
2015
2015 |
Mr.
Kershner is a portfolio manager on the Quantitative Investment
Strategies
(QIS) team and joined the Investment Adviser in
2005. |
|
Len
Ioffe
Managing
Director |
Portfolio
Manager—
International
Tax-Managed
Equity
U.S.
Tax-Managed Equity |
Since
2021
2021 |
Mr.
Ioffe joined the Investment Adviser as an associate in 1995 and
has
been a portfolio manager since 1996. |
|
Dennis
Walsh
Managing
Director |
Portfolio
Manager—
International
Tax-Managed
Equity
U.S.
Tax-Managed Equity |
Since
2021
2021 |
Mr.
Walsh joined the Investment Adviser as an associate in 2009
and
has been a portfolio manager since
2012. |
For
information about the portfolio managers’ compensation, other accounts managed
by the portfolio managers and the portfolio managers’ ownership of securities in
the Fund, see the SAI.
|
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 0.03% of average daily net assets with respect to Class
R6 Shares, to 0.04% of average daily net assets with respect to Institutional
and Service Shares and 0.16% of average daily net assets with respect to Class
A, Class C and Investor Shares, as applicable. Goldman Sachs has agreed to waive
a portion of its transfer agency fee (a component of “Other Expenses”) equal to
0.06%, 0.05%, 0.04% and 0.04% as an annual percentage rate of the average daily
net assets attributable to Class A, Class C and Investor Shares of the
International Equity
37
Dividend and Premium,
International Tax-Managed Equity, U.S. Tax-Managed Equity and U.S. Equity
Dividend and Premium Funds, respectively. These arrangements will remain in
effect through at least April 28, 2024, and prior to such
date, Goldman Sachs may not terminate the arrangements without the approval of
the Board of Trustees.
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 accounts.
|
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 proprietary 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.
The Fund will, from
time to time, make brokerage and other payments to Goldman Sachs and its
affiliates in connection with the Fund’s portfolio investment transactions, in
accordance with applicable law.
Under a
securities lending program approved by the Fund's Board of Trustees, the Fund
has retained an affiliate of the Investment Adviser to serve as a securities
lending agent for the Fund to the extent that the Fund engages in the securities
lending program. For these services, the lending agent would receive a fee from
the Funds, including a fee based on the returns earned on the Fund's
38
Service
Providers
investment
of the cash received as collateral for the loaned securities. The Board of
Trustees periodically reviews reports on portfolio securities loan transactions
for which the affiliated lending agent has acted as lending agent. In addition,
the Funds may make brokerage and other payments to Goldman Sachs and its
affiliates in connection with the Fund's portfolio investment transactions, in
accordance with applicable law.
39
Distributions
Each Fund
pays distributions from its investment income and from net realized capital
gains (although the International Tax-Managed Fund and the U.S. Tax-Managed
Equity Fund attempt to minimize capital gains and income distributions in
seeking its investment objective). You may choose to have distributions paid
in:
◼
Cash
◼
Additional
shares of the same class of the same Fund
◼
Shares of
the same 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 before the record date for a
particular distribution. If you do not indicate any choice, your distributions
will be reinvested automatically in the applicable Fund. If cash distributions
are elected with respect to a Fund’s distributions from net investment income,
then cash distributions must also be elected with respect to the net short-term
capital gains component, if any, of the Fund’s distributions.
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.
Distributions
from net investment income and distributions from net capital gains, if any, are
normally declared and paid as follows:
|
Fund |
Investment
Income
Dividends |
Capital
Gains
Distributions |
|
International
Equity Dividend and Premium |
Quarterly |
Annually |
|
International
Tax-Managed Equity |
Annually |
Annually |
|
U.S.
Tax-Managed Equity |
Annually |
Annually |
|
U.S.
Equity Dividend and Premium |
Quarterly |
Annually |
In
addition, a Fund may occasionally make a distribution at a time when it is not
normally made.
In addition
to the net investment income dividends declared and paid monthly or quarterly as
applicable, a Fund may also earn additional net investment income throughout the
year. Any additional net investment income will be distributed annually as a
declared event and paid to shareholders of record for such events.
From time
to time a portion of the Fund’s distributions may constitute a return of capital
for tax purposes, and/or may include amounts in excess of the Fund’s net
investment income for the period calculated in accordance with generally
accepted accounting principles (GAAP).
When you
purchase shares of the Fund, part of the NAV per share may be represented by
undistributed income and/or realized gains that have previously been earned by
the Fund. Therefore, subsequent distributions on such shares from such income
and/or realized gains may be taxable to you even if the NAV of the shares is, as
a result of the distributions, reduced below the cost of such shares and the
distributions (or portions thereof) represent a return of a portion of the
purchase price.
40
Shareholder
Guide
The
following section will provide you with answers to some of the most frequently
asked questions regarding buying and selling the Fund shares.
|
How
To Buy Shares |
Shares
Offering
Shares of
the Fund are continuously offered through the Distributor. The Fund and the
Distributor will have the sole right to accept orders to purchase shares and
reserve the right to reject any purchase order in whole or in part.
How Can I Purchase
Shares Of The Fund?
You may
purchase shares of the Fund through certain intermediaries that have a
relationship with Goldman Sachs, 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 for their customers (“Authorized Institutions”), and if approved by
the Fund, may designate other financial intermediaries to accept such orders.
You should contact your Intermediary to learn whether it is authorized to accept
orders on behalf of the Fund (i.e., an Authorized Institution). In order to make
an initial investment in the Fund you must furnish to your Intermediary the
information in the account application.
The
decision as to which class to purchase depends on the amount you invest, the
intended length of the investment and your personal situation. You should
contact your Intermediary to discuss which share class option is right for
you.
Note:
Intermediaries may receive different compensation for selling different share
classes.
To open an
account, contact your Intermediary. 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 (adjusted for any
applicable sales charge) next determined after acceptance by the Transfer Agent
(or, if applicable, by an Authorized Institution). 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.
For
purchases by check, 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.
Investor
Shares are not sold directly to the public. Instead, Investor Shares generally
are available only to Section 401(k), 403(b), 457, profit sharing, money
purchase pension, tax-sheltered annuity, defined benefit pension, non-qualified
deferred compensation plans and non-qualified pension plans or other employee
benefit plans (including health savings accounts) or SIMPLE plans that are
sponsored by one or more employers (including governmental or church employers)
or employee organizations (“Employee Benefit Plans”). Investor Shares may also
be sold to accounts established under a fee-based program that is sponsored and
maintained by an Intermediary that has entered into a contractual relationship
with Goldman Sachs to offer such shares through such programs (“Eligible
Fee-Based Program”). Investor Shares are not available to traditional and Roth
Individual Retirement Accounts (“IRAs”), SEPs and SARSEPs; except that Investor
Shares are available to such accounts or plans to the extent they are purchased
through an Eligible Fee-Based Program. Employee Benefit Plans and Eligible
Fee-Based Programs must purchase Investor Shares through an Intermediary using a
plan level or omnibus account.
Employee
Benefit Plans generally may open an account and purchase Investor Shares through
Intermediaries, financial planners, Employee Benefit Plan administrators and
other financial intermediaries. Investor Shares may not be available through
certain Intermediaries.
41
Class R6
Shares are generally available to the following investors who purchase shares of
the Fund through certain Intermediaries that have a contractual relationship
with Goldman Sachs, including banks, trust companies, brokers, registered
investment advisers and other financial institutions, using a plan level or
omnibus account, unless otherwise noted below.
◼
Investors
who purchase Class R6 Shares through an Eligible Fee-Based Program;
◼
Employee
Benefit Plans;
◼
Registered
investment companies or bank collective trusts investing directly with the
Transfer Agent;
◼
Institutional
investors, including companies, foundations, endowments, municipalities, trusts
and other entities, investing at least $5,000,000 directly with the Transfer
Agent; and
◼
Other
investors at the discretion of the Trust’s officers.
Class R6
Shares may not be available through certain Intermediaries. For the purposes of
Class R6 Shares eligibility, the term “Intermediary” does not include Goldman
Sachs or its affiliates and Class R6 Shares will not be available to clients of
Goldman Sachs Private Wealth Management, The Goldman Sachs Trust Company, N.A.,
The Goldman Sachs Trust Company of Delaware or The Ayco Company,
L.P.
What Is My Minimum
Investment In The Fund?
For each of
your accounts investing in Class A or Class C Shares, the following investment
minimums must be met:
|
|
Initial |
Additional* |
|
Regular
Accounts |
$1,000 |
$50 |
|
Employee
Benefit Plans |
No
Minimum |
No
Minimum |
|
Uniform
Gift/Transfer to Minors Accounts (UGMA/UTMA) |
$250 |
$50 |
|
Individual
Retirement Accounts and Coverdell ESAs |
$250 |
$50 |
|
Automatic
Investment Plan Accounts |
$250 |
$50 |
*
No
minimum additional investment requirements are imposed with respect to investors
trading through Intermediaries who aggregate shares in omnibus or similar
accounts (e.g., employee benefit plan accounts, wrap program accounts or
traditional brokerage house accounts). A maximum purchase limitation of
$1,000,000 in the aggregate normally applies to purchases of Class C Shares
across all Goldman Sachs Funds.
For
Institutional Shares, the minimum initial investment is $1,000,000 for
individual or Institutional Investors, alone or in combination with other assets
under the management of the Investment Adviser and its affiliates, except that
no initial minimum will be imposed on (i) Employee Benefit Plans that hold their
Institutional Shares through plan-level or omnibus accounts; or (ii) investment
advisers investing for accounts for which they receive asset-based fees where
the investment adviser or its Intermediary purchases Institutional Shares
through an omnibus account. For this purpose, “Institutional Investors” shall
include “wrap” account sponsors (provided they have an agreement covering the
arrangement with the Distributor); corporations; qualified non-profit
organizations, charitable trusts, foundations and endowments; any state, county
or city, or any instrumentality, department, authority or agency thereof; and
banks, trust companies or other depository institutions investing for their own
account or on behalf of their clients.
No minimum
amount is required for initial purchases in Investor and Class R6 Shares (except
as provided below) or additional investments in Institutional, Service, Investor
or Class R6 Shares.
For Class
R6 Shares, the minimum initial investment is $5,000,000 for institutional
investors, including companies, foundations, endowments, municipalities, trusts
and other entities who purchase Class R6 Shares directly with the Transfer
Agent.
There are
no minimum purchase or account (minimum) requirements with respect to Service
Shares. An Intermediary may, however, impose a minimum amount for initial and
additional investments in Service Shares, and may establish other requirements
such as a minimum account balance. An Intermediary may redeem Service Shares
held by non-complying accounts, and may impose a charge for any special
services.
The minimum
investment requirement for Class A, Class C and Institutional Shares may be
waived for: (i) Goldman Sachs, its affiliates (including the Trust) or their
respective Trustees, officers, partners, directors or employees (including
retired employees and former partners), as well as certain individuals related
to such investors, including spouses or domestic partners, minor children
including those of their domestic partners, other family members residing in the
same household, and/or financial dependents, provided that all of the above are
designated as such with an Intermediary or the Fund’s Transfer Agent; (ii)
advisory clients of Goldman Sachs Private Wealth Management and accounts for
which The Goldman Sachs Trust Company, N.A. acts in a fiduciary capacity (i.e.,
as agent or trustee); (iii) certain mutual fund “wrap” programs at the
discretion of the Trust’s officers; and (iv) other investors at the discretion
of the Trust’s officers. No minimum amount is required for additional
investments in such accounts.
42
Shareholder
Guide
What Should I Know
When I Purchase 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 your 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.
Certain
Intermediaries may provide the following services in connection with their
customers’ investments in Service Shares:
◼
Personal
and account maintenance services
◼
Provide
facilities to answer inquiries and respond to correspondence
◼
Act as
liaison between the Intermediary’s customers and the Trust
◼
Assist
customers in completing application forms, selecting dividend and other options,
and similar services
◼
Shareholder
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
payments for customers
Intermediaries
that invest in shares on behalf of their customers may charge brokerage
commissions or other 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.
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 Fund and other Goldman Sachs
Funds, except that the Investment Adviser, Distributor and their affiliates do
not make such payments on behalf of Class R6 Shares. 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 distribution and service fees, service fees and shareholder administration
fees and sales charges described in the Prospectus. Such payments are intended
to compensate Intermediaries and other persons for, among other things:
marketing shares of the Fund and other Goldman Sachs Funds, which may consist of
payments relating to the Fund’s inclusion on preferred or recommended fund lists
or in certain sales programs sponsored by the recipients; access to the
Intermediaries’ 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 Fund 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. The 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 Fund, 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, the
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.
43
You may be
required to pay a commission directly to a broker or financial intermediary for
effecting transactions in Institutional Shares. In addition to Institutional
Shares, the 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 Institutional Shares.
Information regarding these other share classes is included in the Prospectus
for the applicable share class and may also be obtained from your Intermediary
or from Goldman Sachs by calling the number on the back cover of the
Prospectus.
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. Without limiting the
foregoing, the Trust may reject or restrict purchase and exchange orders by a
particular purchaser (or group of related purchasers) when a pattern of frequent
purchases, sales or exchanges of shares of the Fund is evident, or if purchases,
sales or exchanges are, or a subsequent redemption might be, of a size that
would disrupt the management of the Fund.
◼
Close the
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 shares are offered.
◼
Modify the
sales charge rate applicable to future purchases of shares.
Shares of
the Fund are only registered for sale in the United States and certain of its
territories. Generally, shares of the Fund 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”).
The 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 the 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 Fund 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 Fund. Applications without the required information
may not be accepted by the Fund. Throughout the life of your account, the Fund
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 Fund reserves
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 Fund; or (iii)
involuntarily redeem an investor’s shares and close an account in the event that
the Fund is unable to verify an investor’s identity or are unable to obtain all
required information. The Fund and its agents will not be responsible for any
loss or 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 the Fund’s next-determined NAV per share (as
adjusted for any applicable sales charge) 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 the Fund’s
next-determined NAV per share (adjusted for any applicable CDSCs) 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 (e.g., CDSCs). Each class generally calculates its NAV as
follows:
|
NAV
= |
(Value
of Assets of the Class)
–
(Liabilities of the Class) |
|
|
Number
of Outstanding Shares of the
Class |
44
Shareholder
Guide
The 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 the Fund’s fund 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 valuation procedures approved by the Board of
Trustees. 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. Cases where there is no clear
indication of the value of the Fund’s investments include, among others,
situations where a security or other asset or liability does not have a price
source or a price is unavailable.
Equity
securities listed on an exchange are generally valued at the last available sale
price on the exchange on which they are principally traded. To the extent the
Fund invests in foreign equity securities, “fair value” prices will be provided
by an independent third-party pricing (fair value) service in accordance with
the fair value procedures approved by the Board of Trustees. Fair value prices
are used because many foreign markets operate at times that do not coincide with
those of the major U.S. markets. Events that could affect the values of foreign
portfolio holdings may occur between the close of the foreign market and the
time of determining the NAV, and would not otherwise be reflected in the
NAV.
Fixed
income securities are generally valued on the basis of prices (including
evaluated prices) and quotations provided by pricing services or securities
dealers. 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.
In
addition, the Investment Adviser, consistent with its procedures and applicable
regulatory guidance, may (but need not) determine to make an adjustment to the
previous closing prices of either domestic or foreign securities in light of
significant events, to reflect what it believes to be the fair value of the
securities at the time of determining the Fund’s NAV. Significant events that
could affect a large number of securities in a particular market may include,
but are not limited to: situations relating to one or more single issuers in a
market sector; significant fluctuations in U.S. or foreign markets; market
dislocations; market disruptions or unscheduled market closings; equipment
failures; natural or man-made disasters or acts of God; armed conflicts;
governmental actions or other developments; as well as the same or similar
events which may affect specific issuers or the securities markets even though
not tied directly to the securities markets. Other significant events that could
relate to a single issuer may include, but are not limited to: corporate actions
such as reorganizations, mergers and buy-outs; corporate announcements,
including those relating to earnings, products and regulatory news; significant
litigation; ratings downgrades; bankruptcies; and trading limits or
suspensions.
One effect
of using an independent third-party pricing (fair value) service and fair
valuation may be to reduce stale pricing arbitrage opportunities presented by
the pricing of Fund shares. However, it involves the risk that the values used
by the Fund to price its investments may be different from those used by other
investment companies and investors to price the same investments.
Please note
the following with respect to the price at which your transactions are
processed:
◼
NAV per
share of each share class is generally calculated by the Fund’s fund accounting
agent on each business day as of the close of regular trading on the New York
Stock Exchange (normally 4:00 p.m. Eastern time) or such other times as the New
York Stock Exchange or NASDAQ market may officially close. Fund shares will
generally not be priced on any day the New York Stock Exchange is
closed.
◼
The Trust
reserves the right to reprocess purchase (including dividend reinvestments),
redemption and exchange transactions that were processed at a NAV that is
subsequently adjusted, and to recover amounts from (or distribute amounts to)
shareholders accordingly based on the official closing NAV, as
adjusted.
◼
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.
Consistent
with industry practice, investment transactions not settling on the same day are
recorded and factored into the Fund’s NAV on the business day following trade
date (T+1). 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.
45
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 is stopped at a time other than its
regularly scheduled closing time. In the event the New York Stock Exchange does
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 the Fund is open for business
during this situation, please call the appropriate phone number located on the
back cover of the Prospectus.
Foreign
securities may trade in their local markets on days the Fund is closed. As a
result, if the Fund holds foreign securities, its NAV may be impacted on days
when investors may not purchase or redeem Fund shares.
The Fund
relies on various sources to calculate its NAV. The ability of the Fund’s fund
accounting agent to calculate the NAV per share of each share class of the Fund
is subject to operational risks associated with processing or human errors,
systems or technology failures, cyber attacks and errors caused by third party
service providers, data sources, or trading counterparties. Such failures may
result in delays in the calculation of the Fund’s NAV and/or the inability to
calculate NAV over extended time periods. The Fund may be unable to recover any
losses associated with such failures. In addition, if the third party service
providers and/or data sources upon which the Fund directly or indirectly relies
to calculate its NAV or price individual securities are unavailable or otherwise
unable to calculate the NAV correctly, it may be necessary for alternative
procedures to be utilized to price the securities at the time of determining the
Fund’s NAV.
|
Common
Questions Applicable to the Purchase of
Class
A Shares |
What Is The Offering
Price Of Class A Shares?
The
offering price of Class A Shares of the Fund is the next determined NAV per
share plus an initial sales charge paid to Goldman Sachs at the time of purchase
of shares. The sales
charge varies depending upon the amount you purchase. In some cases, described
below, the initial sales charge may be eliminated altogether, and the offering
price will be the NAV per share. The current sales charges and commissions paid
to Intermediaries for Class A Shares of the Fund are as follows:
|
Amount
of Purchase
(including
sales charge, if any) |
Sales
Charge as
Percentage
of
Offering
Price |
Sales
Charge
as
Percentage
of
Net Amount
Invested |
Maximum
Dealer
Allowance
as
Percentage
of
Offering
Price* |
|
Less
than $50,000 |
5.50% |
5.82% |
5.00% |
|
$50,000
up to (but less than) $100,000 |
4.75 |
4.99 |
4.00 |
|
$100,000
up to (but less than) $250,000 |
3.75 |
3.90 |
3.00 |
|
$250,000
up to (but less than) $500,000 |
2.75 |
2.83 |
2.25 |
|
$500,000
up to (but less than) $1 million |
2.00 |
2.04 |
1.75 |
|
$1
million or more |
0.00** |
0.00** |
*** |
*
Dealer’s
allowance may be changed periodically. During special promotions, the entire
sales charge may be reallowed to Intermediaries. Intermediaries to whom
substantially the entire sales charge is reallowed may be deemed to be
“underwriters” under the Securities Act.
**
No
sales charge is payable at the time of purchase of Class A Shares of $1 million
or more, but a CDSC of 1.00% may be imposed in the event of certain redemptions
within 18 months. For more information about Class A Shares’ CDSCs, please see
“What Else Do I Need To Know About Class A Shares’ CDSC?” below.
***
The
Distributor may pay a one-time commission to Intermediaries who initiate or are
responsible for purchases of $1 million or more of shares of the Fund equal to
1.00% of the amount under $3 million, 0.50% of the next $2 million, and 0.25%
thereafter. In instances where this one-time commission is not paid to a
particular Intermediary (including Goldman Sachs’ Private Wealth Management
Unit), the CDSC on Class A Shares, generally, will be waived. The Distributor
may also pay, with respect to all or a portion of the amount purchased, a
commission in accordance with the foregoing schedule to Intermediaries who
initiate or are responsible for purchases by Employee Benefit Plans investing in
the Fund which satisfy the criteria set forth below in “When Are Class A Shares
Not Subject To A Sales Load?” or $1 million or more by certain “wrap” accounts.
Purchases by such plans will be made at NAV with no initial sales charge, but if
shares are redeemed within 18 months, a CDSC of 1.00% may be imposed upon the
plan, the plan sponsor or the third-party administrator. In addition,
Intermediaries will remit to the Distributor such payments received in
connection with “wrap” accounts in the event that shares are redeemed within 18
months.
Different
Intermediaries may impose different sales charges. These variations are
described in Appendix C—Additional Information About Sales Charge Variations,
Waivers and Discounts.
You should
note that the actual sales charge that appears in your mutual fund transaction
confirmation may differ slightly from the rate disclosed above in the Prospectus
due to rounding calculations.
46
Shareholder
Guide
As
indicated in the preceding chart, and as discussed further below and in the
section titled “How Can The Sales Charge On Class A Shares Be Reduced?” and in
Appendix C—Additional Information About Sales Charge Variations, Waivers and
Discounts, you may, under certain circumstances, be entitled to pay reduced
sales charges on your purchases of Class A Shares or have those charges waived
entirely. To take advantage of these discounts, your Intermediary must notify
the Fund’s Transfer Agent at the time of your purchase order that a discount may
apply to your current purchases. You may also be required to provide appropriate
documentation to receive these discounts, including:
(i)
Information
or records regarding shares of the Fund or other Goldman Sachs Funds held in all
accounts (e.g., retirement accounts) of the shareholder at all Intermediaries;
or
(ii)
Information
or records regarding shares of the Fund or other Goldman Sachs Funds held at any
Intermediary by related parties of the shareholder, such as members of the same
family or household.
What Else Do I Need
To Know About Class A Shares’ CDSC?
Purchases
of $1 million or more of Class A Shares will be made at NAV with no initial
sales charge. However, if you redeem shares within 18 months after the beginning
of the month in which the purchase was made, a CDSC of 1.00% may be imposed. The
CDSC may not be imposed if your Intermediary agrees with the Distributor to
return all or an applicable prorated portion of its commission to the
Distributor. The CDSC is waived on redemptions in certain circumstances. See “In
What Situations May The CDSC On Class A Or C Shares Be Waived Or Reduced?” below
and, if you hold shares through an Intermediary, see Appendix C—Additional
Information About Sales Charge Variations, Waivers and Discounts.
When Are Class A
Shares Not Subject To A Sales Load?
Class A
Shares of the Fund may be sold at NAV without payment of any sales charge to the
following individuals and entities:
◼
Goldman
Sachs, its affiliates or their respective officers, partners, directors or
employees (including retired employees and former partners), any partnership of
which Goldman Sachs is a general partner, any Trustee or officer of the Trust
and designated family members of any of these individuals;
◼
Qualified
employee benefit plans of Goldman Sachs;
◼
Trustees or
directors of investment companies for which Goldman Sachs or an affiliate acts
as sponsor;
◼
Any
employee or registered representative of any Intermediary (or such
Intermediaries’ affiliates and subsidiaries) or their respective spouses or
domestic partners, children and parents;
◼
Banks,
trust companies or other types of depository institutions;
◼
Any state,
county or city, or any instrumentality, department, authority or agency thereof,
which is prohibited by applicable investment laws from paying a sales charge or
commission in connection with the purchase of shares of the Fund;
◼
Employee
Benefit Plans, other than Employee Benefit Plans that purchase Class A Shares
through brokerage relationships in which sales charges are customarily imposed.
Under such circumstances, Plans will be assessed sales charges as described
further in “Shareholder Guide—Common Questions Applicable To the Purchase of
Class A Shares”;
◼
Investors
who purchase Class A Shares through an omnibus account sponsored by an
Intermediary that has an agreement with the Distributor covering such investors
to offer Class A Shares without charging an initial sales charge;
◼
Insurance
company separate accounts that make the Fund available as an underlying
investment in certain group annuity contracts;
◼
“Wrap”
accounts for the benefit of clients of broker-dealers, financial institutions or
financial planners, provided they have entered into an agreement with GSAM
specifying aggregate minimums and certain operating policies and
standards;
◼
Investment
advisers investing for accounts for which they receive asset-based
fees;
◼
Accounts
over which GSAM or its advisory affiliates have investment
discretion;
◼
Shareholders
who roll over distributions from any tax-qualified Employee Benefit Plan or
tax-sheltered annuity to an IRA which invests in the Goldman Sachs Funds if the
tax-qualified Employee Benefit Plan or tax-sheltered annuity receives
administrative services provided by certain third party administrators that have
entered into a special service arrangement with Goldman Sachs relating to such
plan or annuity;
◼
State
sponsored 529 college savings plans;
◼
Investors
that purchase Class A Shares through the GS Retirement Plan Plus and Goldman
Sachs 401(k) Programs;
◼
Former
shareholders of certain funds who (i) received shares of a Goldman Sachs Fund in
connection with a reorganization of an acquired fund into a Goldman Sachs Fund,
(ii) had previously qualified for purchases of Class A Shares of the acquired
funds without the imposition of a sales load under the guidelines of the
applicable acquired fund family, and (iii) as of August 24, 2012 held their
Goldman Sachs Fund shares directly with the Goldman Sachs Funds’ Transfer Agent,
as long as they continue to hold the shares directly at the Transfer Agent;
or
◼
Investors
who purchase Class A Shares in accounts that are no longer associated with an
Intermediary and held direct at the Transfer Agent, including retirement
accounts.
47
You
must certify eligibility for any of the above exemptions on your account
application and notify your Intermediary and the Fund if you no longer are
eligible for the exemption. You may be eligible for different or additional
exemptions based on your Intermediary; see Appendix C—Additional Information
About Sales Charge Variations, Waivers and Discounts.
The Fund
will grant you an exemption subject to confirmation of your eligibility by your
Intermediary. You may be charged a fee by your Intermediary.
How Can The Sales
Charge On Class A Shares Be Reduced?
◼
Right
of Accumulation: When buying
Class A Shares in Goldman Sachs Funds, your current aggregate investment
determines the initial sales load you pay. You may qualify for reduced sales
charges when the current market value of holdings across Class A Shares and/or
Class C Shares, plus new purchases, reaches $50,000 or more. Class A Shares
and/or Class C Shares of any of the Goldman Sachs Funds may be combined under
the Right of Accumulation. If the Fund’s Transfer Agent is properly notified,
the “Amount of Purchase” in the chart in the section “What Is The Offering Price
Of Class A Shares?” will be deemed to include all Class A Shares and/or Class C
Shares of the Goldman Sachs Funds that were held at the time of purchase by any
of the following persons: (i) you, your spouse or domestic partner, your parents
and your children; and (ii) any trustee, guardian or other fiduciary of a single
trust estate or a single fiduciary account. This includes, for example, any
Class A Shares and/or Class C Shares held at an Intermediary other than the one
handling your current purchase. For purposes of applying the Right of
Accumulation, shares of the Fund and any other Goldman Sachs Funds purchased by
an existing client of Goldman Sachs Private Wealth Management or GS Ayco Holding
LLC will be combined with Class A Shares and/or Class C Shares and other assets
held by all other Goldman Sachs Private Wealth Management accounts or accounts
of GS Ayco Holding LLC, respectively. In addition, under some circumstances,
Class A Shares and/or Class C Shares of the Fund and Class A Shares and/or Class
C Shares of any other Goldman Sachs Fund purchased by partners, directors,
officers or employees of certain organizations may be combined for the purpose
of determining whether a purchase will qualify for the Right of Accumulation
and, if qualifying, the applicable sales charge level. To qualify for a reduced
sales load, you or your Intermediary must notify the Fund’s Transfer Agent at
the time of investment that a quantity discount is applicable. If you do not
notify your Intermediary at the time of your current purchase or a future
purchase that you qualify for a quantity discount, you may not receive the
benefit of a reduced sales charge that might otherwise apply. Use of this option
is subject to a check of appropriate records.
In some
circumstances, other Class A Shares and/or Class C Shares may be aggregated with
your current purchase under the Right of Accumulation as described in the SAI.
For purposes of determining the “Amount of Purchase,” all Class A Shares and/or
Class C Shares currently held will be valued at their current market
value.
◼
Statement
of Intention: You may
obtain a reduced sales charge by means of a written Statement of Intention which
expresses your non-binding commitment to invest (not counting reinvestments of
dividends and distributions) in the aggregate $50,000 or more within a period of
13 months in Class A Shares of one or more of the Goldman Sachs Funds. Any
investments you make during the period will receive the discounted sales load
based on the full amount of your investment commitment. Purchases made during
the previous 90 days may be included; however, capital appreciation does not
apply toward these combined purchases. If the investment commitment of the
Statement of Intention is not met prior to the expiration of the 13-month
period, the entire amount will be subject to the higher applicable sales charge
unless the failure to meet the investment commitment is due to the death of the
investor. By selecting the Statement of Intention, you authorize the Transfer
Agent to escrow and redeem Class A Shares in your account to pay this additional
charge if the Statement of Intention is not met. You must, however, inform the
Transfer Agent (either directly or through your Intermediary) that the Statement
of Intention is in effect each time shares are purchased. Each purchase will be
made at the public offering price applicable to a single transaction of the
dollar amount specified on the Statement of Intention. The SAI has more
information about the Statement of Intention, which you should read
carefully.
Different
Intermediaries may have different policies regarding Rights of Accumulation and
Statements of Intention. These variations are described in Appendix C—Additional
Information About Sales Charge Variations, Waivers and Discounts.
|
Common
Questions Applicable to the Purchase Of Class C
Shares |
What Is The Offering
Price Of Class C Shares?
You may
purchase Class C Shares of the Fund at the next determined NAV without paying an
initial sales charge. However, if you redeem Class C Shares within 12 months of
purchase, a CDSC of 1.00% will normally be deducted from the redemption
proceeds. In connection with purchases by Employee Benefit Plans, where Class C
Shares are redeemed within 12 months of purchase, a CDSC of 1.00% may be imposed
upon the plan sponsor or third party administrator. Class C Shares acquired in
exchange for shares subject to a CDSC will be subject to the CDSC, if any, of
the shares originally held. No CDSC is imposed in connection with an exchange of
Class C Shares at the time of such exchange. When Class C Shares are exchanged
for Class C Shares of another fund, the period of time that such shares will be
subject to a CDSC (if any) will be measured as of the date of the original
purchase. With respect to such shares held by Employee Benefit Plans, the CDSC
may be imposed on the plan sponsor or third party administrator.
48
Shareholder
Guide
Different
Intermediaries may impose different sales charges. These variations are
described in “Appendix C—Additional Information About Sales Charge Variations,
Waivers and Discounts.”
Proceeds
from the CDSC are payable to the Distributor and may be used in whole or in part
to defray the Distributor’s expenses related to providing distribution-related
services to the Fund in connection with the sale of Class C Shares, including
the payment of compensation to Intermediaries. A commission equal to 1% of the
amount invested is normally paid by the Distributor to
Intermediaries.
What Should I Know
About The Automatic Conversion Of Class C Shares?
Class C
Shares of the Fund will automatically convert into Class A Shares (which bear
lower distribution and service (12b-1) fees and do not bear additional personal
and account maintenance services fees) of the same Fund on or about the
fifteenth day of the last month of the quarter that is eight years after the
purchase date. No sales charges or other charges will apply in connection with
any conversion.
If you
acquire Class C Shares of the Fund by exchange from Class C Shares of another
Goldman Sachs Fund, your Class C Shares will convert into Class A Shares of such
Fund based on the date of the initial purchase. If you acquire Class C Shares
through reinvestment of distributions, your Class C Shares will convert into
Class A Shares based on the date of the initial purchase of the shares on which
the distribution was paid.
Shareholders
will not recognize a gain or loss for federal income tax purposes upon the
conversion of Class C Shares for Class A Shares of the same Fund. The automatic
conversion of Class C Shares to Class A Shares will not apply to shares held
through group retirement plan recordkeeping platforms of certain Intermediaries
who hold such shares in an omnibus account and do not track participant level
share lot aging to facilitate such a conversion.
New
employee benefit plans are not eligible to purchase Class C Shares. Employee
benefit plans which had this share class of the Fund available to participants
on or before September 18, 2018, may continue to open accounts for new
participants in such share class of the Fund and purchase additional shares in
existing participant accounts.
If you
purchased your shares through an Intermediary, it is the responsibility of your
Intermediary to work with the Transfer Agent to effect the conversion and to
ensure that Class C Shares are automatically converted after the appropriate
period of time. In addition, if your shares are no longer subject to a CDSC, you
may be able to exchange your Class C Shares for Class A Shares without the
payment of a sales charge prior to the automatic conversion subject to the
policies and procedures of the Intermediary through whom you have purchased your
shares. Please contact your Intermediary with questions regarding your
eligibility to exchange Class C Shares for Class A Shares.
|
Common
Questions Applicable to the Purchase Of
Class
A and C Shares |
What Else Do I Need
To Know About The CDSC On Class A Or C Shares?
◼
The CDSC is
based on the lesser of the NAV of the shares at the time of redemption or the
original offering price (which is the original NAV).
◼
No CDSC is
charged on shares acquired from reinvested dividends or capital gains
distributions.
◼
No CDSC is
charged on the per share appreciation of your account over the initial purchase
price.
◼
When
counting the number of months since a purchase of Class A or Class C Shares was
made, all purchases made during a month will be combined and considered to have
been made on the first day of that month.
◼
To keep
your CDSC as low as possible, each time you place a request to sell shares, the
Fund will first sell any shares in your account that do not carry a CDSC and
then the shares in your account that have been held the longest.
In What Situations
May The CDSC On Class A Or C Shares Be Waived Or Reduced?
The CDSC on
Class A and Class C Shares that are subject to a CDSC may be waived or reduced
if the redemption relates to:
◼
Mandatory
retirement distributions or loans to participants or beneficiaries from Employee
Benefit Plans;
◼
Hardship
withdrawals by a participant or beneficiary in an Employee Benefit
Plan;
◼
The
separation from service by a participant or beneficiary in an Employee Benefit
Plan;
◼
Excess
contributions distributed from an Employee Benefit Plan;
◼
Distributions
from a qualified Employee Benefit Plan invested in the Goldman Sachs Funds which
are being rolled over to an IRA in the same share class of a Goldman Sachs
Fund;
◼
The death
or disability (as defined in Section 72(m)(7) of the Internal Revenue Code of
1986, as amended (the “Code”)) of a shareholder, participant or beneficiary in
an Employee Benefit Plan;
◼
Satisfying
the minimum distribution requirements of the Code;
49
◼
Establishing
“substantially equal periodic payments” as described under Section 72(t)(2) of
the Code;
◼
Redemption
proceeds which are to be reinvested in accounts or non-registered products over
which GSAM or its advisory affiliates have investment discretion;
◼
A
systematic withdrawal plan. The Fund reserves the right to limit such
redemptions, on an annual basis, to 12% of the value of your Class C Shares and
10% of the value of your Class A Shares;
◼
Redemptions
or exchanges of Fund shares held through an Employee Benefit Plan using the Fund
as part of a qualified default investment alternative or “QDIA”; or
◼
Other
redemptions, at the discretion of the Trust’s officers, relating to shares
purchased through Employee Benefit Plans.
You
may be eligible for different or additional exemptions based on your
Intermediary; see “Appendix C—Additional Information About Sales Charge
Variations, Waivers and Discounts.”
|
How
To Sell Shares |
How Can I Sell Shares
Of The Fund?
Generally,
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 the Fund is open, the Fund will generally
redeem its Shares upon request at their next-determined NAV per share (subject
to any applicable CDSC) 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 Shares Of The
Fund?” above. Redemptions may be requested by 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). You
should contact your Intermediary to discuss redemptions and redemption proceeds.
The 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).
When Do I Need A
Medallion Signature Guarantee To Redeem Shares?
Generally,
a redemption request must be in writing and signed by an authorized person with
a Medallion signature guarantee if:
◼
A request
is made in writing to redeem Class A, Class C or Investor Shares in an amount
over $50,000 via check;
◼
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 or tax
liability 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, Medallion signature guaranteed
letter.
50
Shareholder
Guide
◼
The
telephone redemption option does not apply to Shares held in an account
maintained and serviced by your Intermediary. If your 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.
◼
The Fund
may allow redemptions via check up to $50,000 in Class A, Class C and Investor
Shares requested via telephone.
Note:
It may be difficult to make telephone redemptions in times of unusual economic
or market conditions.
How Are Redemption
Proceeds Paid?
By
Wire: You may
arrange for your redemption proceeds to be paid as federal funds to an account
with your Intermediary or to a domestic bank account designated in the current
records of the Transfer Agent. In addition, redemption proceeds may be
transmitted through an electronic trading platform to an account with your
Intermediary. The following general policies govern wiring redemption
proceeds:
◼
Redemption
proceeds will normally be paid in federal funds, between one and two business
days (or such other times in accordance with the requirements of your
Intermediary) following receipt of a properly executed wire transfer redemption
request. In certain circumstances, however (such as unusual market conditions or
in cases of very large redemptions or excessive trading), it may take up to
seven days to pay redemption proceeds.
◼
Redemption
requests may only be postponed or suspended for longer than seven days as
permitted under Section 22(e) of the Investment Company Act of 1940 (the
“Investment Company Act”) 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 the Fund or the fair determination of the value
of the Fund’s net assets not reasonably practicable; or (iii) the SEC, by order
or regulation, permits the suspension of the right of redemption.
◼
If you are
selling shares you recently paid for by check or purchased by Automated Clearing
House (“ACH”), the Fund will pay you when your check or ACH 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, the 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.
By
Check: You may
elect to receive your redemption proceeds by check. Redemption proceeds paid by
check will normally be mailed to the address of record within two business days
(or such other times in accordance with the requirements of your Intermediary)
following receipt of a properly executed redemption request, except in certain
circumstances (such as those set forth above with respect to wire transfer
redemption requests). If you are selling shares you recently paid for by check
or ACH, the Fund will pay you when your check or ACH has cleared, which may take
up to 15 days.
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
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 or in
the event that the Fund is no longer an option in your Employee Benefit Plan or
no longer available through your Eligible Fee-Based Program.
◼
Redeem your
shares if your account balance is below the required Fund minimum. The Fund will
not redeem your shares on this basis if the value of your account falls below
the minimum account balance solely as a result of market conditions. The Fund
will give you 60 days prior written notice to allow you to purchase sufficient
additional shares of the Fund 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 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.
51
◼
Subject to
applicable law, redeem your shares in other circumstances determined by the
Board of Trustees 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.
The 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 Fund 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, the 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 Reinvest
Redemption Proceeds In The Same Or Another Goldman Sachs Fund?
You may
redeem shares of the Fund and reinvest a portion or all of the redemption
proceeds in the same share class of another Goldman Sachs Fund at NAV. To be
eligible for this privilege, you must have held the shares you want to redeem
for at least 30 days and you must reinvest the share proceeds within 90 days
after you redeem. You should obtain and read the applicable prospectus before
investing in any other Goldman Sachs Fund.
You may
reinvest redemption proceeds as follows:
◼
If you pay
a CDSC upon redemption of Class A or Class C Shares and then reinvest in Class A
or Class C Shares of another Goldman Sachs Fund as described above, your account
will be credited with the amount of the CDSC you paid. The reinvested shares
will, however, continue to be subject to a CDSC. The holding period of the
shares acquired through reinvestment will include the holding period of the
redeemed shares for purposes of computing the CDSC payable upon a subsequent
redemption.
◼
The
reinvestment privilege may be exercised at any time in connection with
transactions in which the proceeds are reinvested at NAV in a tax-sheltered
Employee Benefit Plan. In other cases, the reinvestment privilege may be
exercised once per year upon receipt of a written request.
◼
You may be
subject to tax as a result of a redemption. You should consult your tax adviser
concerning the tax consequences of a redemption and reinvestment.
Can I Exchange My
Investment From One Goldman Sachs Fund To Another Goldman Sachs
Fund?
You may
exchange shares of a Goldman Sachs Fund at NAV without the imposition of an
initial sales charge or CDSC, if applicable, at the time of exchange for certain
shares of another Goldman Sachs 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 the 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 may offer all share classes.
◼
Currently,
the Fund does not impose any charge for exchanges although the Fund may impose a
charge in the future.
◼
The
exchanged shares of the new Goldman Sachs Fund may later be exchanged for shares
of the same class of the original Fund held at the next determined NAV without
the imposition of an initial sales charge or CDSC. However, if additional shares
of the new Goldman Sachs Fund were purchased after the initial exchange, and
that Fund’s shares do not impose a sales charge or CDSC, then the applicable
sales charge or CDSC of the original Fund’s shares will be imposed upon the
exchange of those shares.
◼
When you
exchange shares subject to a CDSC, no CDSC will be charged at that time.
However, for purposes of determining the amount of CDSC applicable to those
shares acquired in the exchange, the length of time you have owned the shares
will be measured from the date you acquired the original shares subject to a
CDSC, and the amount and terms of the CDSC will be those applicable to the
original shares acquired and will not be affected by a subsequent
exchange.
52
Shareholder
Guide
◼
Eligible
investors may exchange certain classes of shares for another class of shares of
the same Fund. For further information, contact your Intermediary.
◼
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
Goldman Sachs Fund need not meet the traditional minimum investment requirement
for that Fund if the entire balance of the original Fund account is
exchanged.
◼
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.
◼
Exchanges
into Goldman Sachs Funds or certain share classes of Goldman Sachs Funds that
are closed to new investors may be restricted.
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. Exchanges within Employee Benefit Plan accounts will not result in
capital gains or loss for federal or state income tax purposes. You should
consult your tax adviser concerning the tax consequences of an
exchange.
|
Shareholder
Services |
Can I Arrange To Have
Automatic Investments Made On A Regular Basis?
You may be
able to make automatic investments in Class A and Class C Shares through your
bank via ACH transfer or via bank draft or through your Intermediary each month.
The minimum dollar amount for this service is $250 for the initial investment
and $50 per month for additional investments. Forms for this option are
available online at www.gsamfunds.com and from your Intermediary, or you may
check the appropriate box on the account application.
Can My Distributions
From The Fund Be Invested In Other Goldman Sachs Funds?
You may
elect to cross-reinvest distributions paid by a Goldman Sachs Fund in shares of
the same class of other Goldman Sachs Funds.
◼
Shares will
be purchased at NAV.
◼
You may
elect cross-reinvestment into an identically registered account or a similarly
registered account provided that at least one name on the account is registered
identically.
◼
You cannot
make cross-reinvestments into a Goldman Sachs Fund unless that Fund’s minimum
initial investment requirement is met.
◼
You should
obtain and read the prospectus of the Goldman Sachs Fund into which
distributions are invested.
Can I Arrange To Have
Automatic Exchanges Made On A Regular Basis?
You may
elect to exchange automatically a specified dollar amount of Class A or Class C
Shares of the Fund for shares of the same class of other Goldman Sachs
Funds.
◼
Shares will
be purchased at NAV if a sales charge had been imposed on the initial
purchase.
◼
You may
elect to exchange into an identically registered account or a similarly
registered account provided that at least one name on the account is registered
identically.
◼
Shares
subject to a CDSC acquired under this program may be subject to a CDSC at the
time of redemption from the Goldman Sachs Fund into which the exchange is made
depending upon the date and value of your original purchase.
◼
Automatic
exchanges are made monthly on the 15th day of each month or the first business
day thereafter.
◼
Minimum
dollar amount: $50 per month.
◼
You cannot
make automatic exchanges into a Goldman Sachs Fund unless that Fund’s minimum
initial investment requirement is met.
◼
You should
obtain and read the prospectus of the Goldman Sachs Fund into which automatic
exchanges are made.
◼
An exchange
is considered a redemption and a purchase and therefore may be a taxable
transaction.
53
Can I Have Systematic
Withdrawals Made On A Regular Basis?
You may
redeem from your Class A or Class C Share account systematically via check or
ACH transfer or through your Intermediary in any amount of $50 or
more.
◼
It is
normally undesirable to maintain a systematic withdrawal plan at the same time
that you are purchasing additional Class A or Class C Shares because of the
sales charges that are imposed on certain purchases of Class A Shares and
because of the CDSCs that are imposed on certain redemptions of Class A and
Class C Shares.
◼
Checks are
normally mailed within two business days after your selected systematic
withdrawal date of either the 15th or 25th of the month. ACH payments may take
up to three business days to post to your account after your selected systematic
withdrawal date between, and including, the 3rd and 26th of the
month.
◼
Each
systematic withdrawal is a redemption and therefore may be a taxable
transaction.
◼
The CDSC
applicable to Class A or Class C Shares redeemed under the systematic withdrawal
plan may be waived. The Fund reserves the right to limit such redemptions, on an
annual basis, to 12% each of the value of your Class C Shares and 10% of the
value of your Class A Shares.
What Types Of Reports
Will I Be Sent Regarding My Investment?
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 source 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 printed confirmation of each transaction in your account and a
quarterly account statement if you invest in Class A, Class C or Investor Shares
and a monthly account statement if you invest in Institutional, Service or Class
R6 Shares. If your account is held through your Intermediary, you will receive
this information from your Intermediary.
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.
|
Distribution
and Service Fees |
What Are The
Different Distribution And/Or Service Fees Paid By The Fund’s
Shares?
The Trust
has adopted distribution and service plans (each a “Plan”) under which Class A
and Class C Shares bear distribution and/or service fees paid to Goldman Sachs,
some of which Goldman Sachs may pay to Intermediaries. Intermediaries seek
distribution and/or servicing fee revenues to, among other things, offset the
cost of servicing small and medium sized plan investors and providing
information about the Fund. If the fees received by Goldman Sachs pursuant to
the Plans exceed its expenses, Goldman Sachs may realize a profit from these
arrangements. Goldman Sachs generally receives and pays the distribution and
service fees on a quarterly basis.
Under the
Plans, Goldman Sachs is entitled to a monthly fee from the Fund for distribution
services equal, on an annual basis, to 0.25% and 0.75% of each applicable Fund’s
average daily net assets attributed to Class A and Class C Shares, respectively.
Because these fees are paid out of the Fund’s assets on an ongoing basis, over
time, these fees will increase the cost of your investment and may cost you more
than paying other types of such charges.
The
distribution fees are subject to the requirements of Rule 12b-1 under the
Investment Company Act, and may be used (among other things) for:
◼
Compensation
paid to and expenses incurred by Intermediaries, Goldman Sachs and their
respective officers, employees and sales representatives;
◼
Commissions
paid to Intermediaries;
◼
Allocable
overhead;
◼
Telephone
and travel expenses;
◼
Interest
and other costs associated with the financing of such compensation and
expenses;
◼
Printing of
prospectuses for prospective shareholders;
◼
Preparation
and distribution of sales literature or advertising of any type; and
◼
All other
expenses incurred in connection with activities primarily intended to result in
the sale of Class A and Class C Shares.
54
Shareholder
Guide
In
connection with the sale of Class C Shares, Goldman Sachs normally begins paying
the 0.75% distribution fee as an ongoing commission to Intermediaries after the
shares have been held for one year. Goldman Sachs normally begins accruing the
annual 0.25% distribution fee for the Class A Shares as an ongoing commission to
Intermediaries, immediately. Goldman Sachs generally pays the distribution fee
on a quarterly basis.
|
Class
C Personal And Account Maintenance
Services
And Fees |
Under the
Class C Plan, Goldman Sachs is also entitled to receive a separate fee equal on
an annual basis to 0.25% of each applicable Fund’s average daily net assets
attributed to Class C Shares. This fee is for personal and account maintenance
services, and may be used to make payments to Goldman Sachs, Intermediaries and
their officers, sales representatives and employees for responding to inquiries
of, and furnishing assistance to, shareholders regarding ownership of their
shares or their accounts or similar services not otherwise provided on behalf of
the Fund. If the fees received by Goldman Sachs pursuant to the Plan exceed its
expenses, Goldman Sachs may realize a profit from this arrangement.
In
connection with the sale of Class C Shares, Goldman Sachs normally begins paying
the 0.25% ongoing service fee to Intermediaries after the shares have been held
for one year.
|
Service
Shares Service Plan And Shareholder
Administration
Plan |
The Trust,
on behalf of the Funds offering Service Shares, has adopted a Service Plan and
Shareholder Administration Plan for Service Shares, pursuant to which Goldman
Sachs and certain Intermediaries are entitled to receive payments for their
services from the Trust. These payments are equal to 0.25% (annualized) for
personal and account maintenance services, plus an additional 0.25% (annualized)
for shareholder administration services of the average daily net assets of
Service Shares of the Fund that are attributable to or held in the name of
Goldman Sachs or an Intermediary for its customers. Fees for personal and
account maintenance services are paid pursuant to the Service Shares’ Service
Plan and are subject to the requirements of Rule 12b-1 under the Investment
Company Act. Because these fees are paid out of the Fund’s assets on an ongoing
basis, over time, these fees will increase the cost of your investment and may
cost you more than paying other types of such charges.
|
Restrictions
on Excessive Trading
Practices |
Policies
and Procedures on Excessive Trading Practices. In
accordance with the policy adopted by the Board of Trustees, the Trust
discourages frequent purchases and redemptions of Fund shares and does not
permit market timing or other excessive trading practices. Purchases and
exchanges should be made with a view to longer-term investment purposes only
that are consistent with the investment policies and practices of the respective
Fund. Excessive, short-term (market timing) trading practices may disrupt
portfolio management strategies, increase brokerage and administrative costs,
harm Fund performance and result in dilution in the value of Fund shares held by
longer-term shareholders. 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. To minimize harm to the Trust and its shareholders
(or Goldman Sachs), the Trust (or Goldman Sachs) will exercise this right if, in
the Trust’s (or Goldman Sachs’) judgment, an investor has a history of excessive
trading or if an investor’s trading, in the judgment of the Trust (or Goldman
Sachs), has been or may be disruptive to the Fund. In making this judgment,
trades executed in multiple accounts under common ownership or control may be
considered together to the extent they can be identified. No waivers of the
provisions of the policy established to detect and deter market timing and other
excessive trading activity are permitted that would harm the Trust or its
shareholders or would subordinate the interests of the Trust or its shareholders
to those of Goldman Sachs or any affiliated person or associated person of
Goldman Sachs.
As a
deterrent to excessive trading, many foreign equity securities held by the
Goldman Sachs Funds are priced by an independent pricing service using fair
valuation. For more information on fair valuation, please see “How To Buy
Shares—How Are Shares Priced?”
Pursuant to
the policy adopted by the Board of Trustees of the Trust, Goldman Sachs has
developed criteria that it uses to identify trading activity that may be
excessive. Excessive trading activity in the Fund is measured by the number of
“round trip” transactions in a shareholder’s account. A “round trip” includes a
purchase or exchange into the Fund followed or preceded by a redemption or
exchange out of the same Fund. If the Fund detects that a shareholder has
completed two or more round trip transactions in a single Fund within a rolling
90-day period, the Fund may reject or restrict subsequent purchase or exchange
orders by that shareholder permanently. In addition, the Fund may, in its sole
discretion, permanently reject or restrict purchase or exchange orders by a
shareholder if the Fund detects other trading activity that is deemed to be
disruptive to the management of the Fund or otherwise harmful to the Fund. For
purposes of these transaction surveillance procedures, the Fund may consider
trading activity in multiple
55
accounts
under common ownership, control, or influence. A shareholder that has been
restricted from participation in the Fund pursuant to this policy will be
allowed to apply for re-entry after one year. A shareholder applying for
re-entry must provide assurances acceptable to the Fund that the shareholder
will not engage in excessive trading activities in the future.
Goldman
Sachs may modify its surveillance procedures and criteria from time to time
without prior notice regarding the detection of excessive trading or to address
specific circumstances. Goldman Sachs will apply the criteria in a manner that,
in Goldman Sachs’ judgment, will be uniform.
Fund shares
may be held through omnibus arrangements maintained by Intermediaries, such as
broker-dealers, investment advisers and insurance companies. In addition, Fund
shares may be held in omnibus Employee Benefit Plans, Eligible Fee-Based
Programs and other group accounts. Omnibus accounts include multiple investors
and such accounts typically provide the Fund with a net purchase or redemption
request on any given day where the purchases and redemptions of Fund shares by
the investors are netted against one another. The identity of individual
investors whose purchase and redemption orders are aggregated are ordinarily not
tracked by the Fund on a regular basis. A number of these Intermediaries may not
have the capability or may not be willing to apply the Fund’s market timing
policies. While Goldman Sachs may monitor share turnover at the omnibus account
level, the Fund’s ability to monitor and detect market timing by shareholders in
these omnibus accounts may be limited in certain circumstances, and certain of
these Intermediaries may charge the Fund a fee for providing certain shareholder
financial information requested as part of the Fund’s surveillance process. The
netting effect makes it more difficult to identify, locate and eliminate market
timing activities. In addition, those investors who engage in market timing and
other excessive trading activities may employ a variety of techniques to avoid
detection. There can be no assurance that the Fund and Goldman Sachs will be
able to identify all those who trade excessively or employ a market timing
strategy, and curtail their trading in every instance. If necessary, the Trust
may prohibit additional purchases of Fund shares by an Intermediary or by
certain customers of the Intermediary. Intermediaries may also monitor their
customers’ trading activities in the Fund. The criteria used by Intermediaries
to monitor for excessive trading may differ from the criteria used by the Fund.
If an Intermediary fails to cooperate in the implementation or enforcement of
the Trust’s excessive trading policies, the Trust may take certain actions
including terminating the relationship.
56
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 Employee Benefit Plan or other tax-advantaged account,
you should carefully consider the possible tax consequences of Fund
distributions and the sale of your Fund shares.
|
DISTRIBUTIONS |
Each Fund
contemplates declaring as dividends each year all or substantially all of its
taxable income. Distributions you receive from the Funds are generally subject
to federal income tax, and may also be subject to state or local taxes (although
each of the U.S. Tax-Managed Equity Fund and the International Tax-Managed Fund
attempt to minimize capital gains and income distributions in seeking its
investment objective). This is true whether you reinvest your distributions in
additional Fund shares or receive them in cash. For federal tax purposes, the
Funds’ distributions attributable to net investment income and short-term
capital gains are taxable to you as ordinary income, while distributions of
long-term capital gains are taxable to you as long-term capital gains, no matter
how long you have owned your Fund shares.
The U.S.
Equity Dividend and Premium Fund’s and International Equity Dividend and Premium
Fund’s accrued income or loss each year from writing index call options
(including unrealized gain or loss on any open positions) will, generally, under
special mark-to-market tax rules applicable to those transactions, be treated as
40% short-term capital gain or loss and 60% long-term capital gain or loss; this
will, in turn, affect the amount and character of the Fund’s distributions to
you under the rules described in the preceding sentence.
Under
current provisions of the Code, the maximum individual rate applicable to
qualified dividend income and long-term capital gains is generally either 15% or
20%, depending on whether the individual’s income exceeds certain threshold
amounts (and, as described below, may also be subject to an additional Medicare
tax of 3.8%). Fund distributions to noncorporate shareholders attributable to
dividends received by the Funds from U.S. and certain foreign corporations will
generally be taxed at the preferential rate described above, as long as certain
other requirements are met. For these lower rates to apply, the non-corporate
shareholder must own their relevant Fund shares for at least 61 days during the
121-day period beginning 60 days before the Fund’s ex-dividend date. The amount
of a Fund’s distributions that would otherwise qualify for this favorable tax
treatment will be reduced as a result of a Fund’s securities lending activities
or high portfolio turnover rate.
Distributions
in excess of a Fund's current and accumulated earnings and profits are treated
as a tax-free return of your investment to the extent of your basis in the
shares, and generally as capital gain thereafter. A return of capital, which for
tax purposes is treated as a return of your investment, reduces your basis in
the shares, thus reducing any loss or increasing any gain on a subsequent
taxable disposition of shares. A distribution will reduce the Fund's NAV per
share and may be taxable to you as ordinary income or capital gain even though,
from an economic standpoint, the distribution may constitute a return of
capital.
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.
Because of
the U.S. Equity Dividend and Premium Fund’s and International Equity Dividend
and Premium Fund’s practice of writing S&P 500® Index,
MSCI EAFE Index, other national or regional indices or related ETF call options,
the possibility exists that an overlap between the Fund’s equity investments and
the components of the indices if substantial enough, might cause a deferral of
the Funds’ recognition of losses for tax purposes or a reduction in the amount
of the Funds’ distributions that qualify for the favorable tax rate applicable
to dividends. The Funds intend to manage their investments in a manner designed
to avoid these adverse tax results to the extent reasonably practicable, but
there is no assurance that the Funds will accomplish this objective at all
times.
Although
distributions are generally treated as taxable to you in the year they are paid,
distributions declared in October, November or December but paid in January are
taxable as if they were paid in December. A percentage of the Funds’ dividends
paid to corporate shareholders may be eligible for the corporate
dividends-received deduction. This percentage may, however, be reduced as a
result of a Fund’s securities lending activities or by a high portfolio turnover
rate. Character and tax status of all distributions will be available to
shareholders after the close of each calendar year.
57
Each Fund
may be subject to foreign withholding or other foreign taxes on income or gain
from certain foreign securities. In general, each Fund may deduct these taxes in
computing its taxable income. Rather than deducting these foreign taxes, the
International Equity Dividend and Premium and International Tax-Managed Equity
Funds may make an election to treat a proportionate amount of those taxes as
constituting a distribution to each shareholder, which would generally allow you
to either (i) credit (subject to certain holding period and other limitations)
that proportionate amount of taxes against your U.S. Federal income tax
liability as a foreign tax credit or (ii) take that amount as an itemized
deduction.
If you buy
shares of a Fund before it makes a distribution, the distribution will be
taxable to you even though it may actually be a return of a portion of your
investment. This is known as “buying into a dividend.”
|
SALES
AND EXCHANGES |
Your sale
of Fund shares is a taxable transaction for federal income tax purposes, and may
also be subject to state and local taxes. For tax purposes, the exchange of your
Fund shares for shares of a different Goldman Sachs Fund is the same as a sale.
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. Generally, this capital gain or loss is
long-term or short-term depending on whether your holding period exceeds twelve
months, except that any loss realized on shares held for six months or less will
be treated as a long-term capital loss to the extent of any capital gain
dividends that were received on the shares. Additionally, any loss realized on a
sale, exchange or redemption of shares of the Fund may be disallowed under “wash
sale” rules to the extent the shares disposed of are replaced with other shares
of that Fund within a period of 61 days beginning 30 days before and ending 30
days after the shares are disposed of, such as pursuant to a dividend
reinvestment in shares of that Fund. If disallowed, the loss will be reflected
in an adjustment to the basis of the shares acquired.
|
OTHER
INFORMATION |
When you
open your account, you should provide your Social Security Number 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 (“IRS”) instructs the Fund to do
so.
The Fund is
required to report to you and the IRS annually on Form 1099-B not only the gross
proceeds of Fund shares you sell or redeem but also, for shares purchased on or
after January 1, 2012, their cost basis. Cost
basis will be calculated using the Fund’s default method of average cost, unless
you instruct the Fund to use a different methodology. If you
would like to use the average cost method of calculation, no action is required.
To elect an alternative method, you should contact Goldman Sachs Funds at the
address or phone number on the back cover of the Prospectus. If your account is
held with an Intermediary, contact your representative with respect to reporting
of cost basis and available elections for your account.
You should
carefully review the cost basis information provided by the Fund and make any
additional basis, holding period or other adjustments that are required when
reporting these amounts on your federal income tax returns.
Non-U.S. investors are
generally subject to U.S. withholding tax 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. Non-U.S. investors generally are not subject to U.S. federal
income tax withholding on certain distributions of interest income and/or
short-term capital gains that are designated by the Fund. It is expected that
the Fund will generally make designations of short-term gains, to the extent
permitted, but the Fund does not intend to make designations of any
distributions attributable to interest income. Therefore, all distributions of
interest income will be subject to withholding when paid to non-U.S.
investors.
The Fund is
required to withhold U.S. tax (at a 30% rate) on payments of 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 enable the
Fund to determine whether withholding is required.
Investments
in the U.S. Tax-Managed Equity Fund and International Tax-Managed Equity Fund
are subject to the tax risks described previously under “Principal Risks of the
Funds.”
58
Appendix
A
Additional
Information on Portfolio Risks, Securities and Techniques
|
A. General
Portfolio Risks |
The Funds
will be subject to the risks associated with equity investments. “Equity
investments” may include common stocks, preferred stocks, interests in REITs,
convertible debt obligations, convertible preferred stocks, equity interests in
trusts, partnerships, joint ventures, limited liability companies and similar
enterprises, master limited partnerships (“MLPs”), other investment companies
(including ETFs), warrants, stock purchase rights and synthetic and derivative
instruments (such as swaps and futures contracts) that have economic
characteristics similar to equity securities. In general, the values of equity
investments fluctuate in response to the activities of individual companies and
in response to general market and economic conditions. Accordingly, the values
of equity investments that a Fund holds may decline over short or extended
periods. The stock markets tend to be cyclical, with periods when stock prices
generally rise and periods when prices generally decline. This volatility means
that the value of your investment in the Funds may increase or decrease. In
recent years, certain stock markets have experienced substantial price
volatility. To the extent a Fund’s net assets decrease or increase in the future
due to price volatility or share redemption or purchase activity, the Fund’s
expense ratio may correspondingly increase or decrease from the expense ratio
disclosed in the Prospectus.
To the
extent a Fund invests in pooled investment vehicles (including investment
companies and ETFs), partnerships and REITs, the Fund will be affected by the
investment policies, practices and performance of such entities in direct
proportion to the amount of assets a Fund invests therein.
To the
extent that a Fund invests in fixed income securities, that Fund will also be
subject to the risks associated with its fixed income securities. These risks
include interest rate risk, credit/default risk and call/extension risk. In
general, interest rate risk involves the risk that when interest rates decline,
the market value of fixed income securities tends to increase (although many
mortgage-related securities will have less potential than other debt securities
for capital appreciation during periods of declining rates). Conversely, when
interest rates increase, the market value of fixed income securities tends to
decline. Credit/default risk involves the risk that an issuer or guarantor could
default on its obligations, and a Fund will not recover its investment. Call
risk and extension risk are normally present in mortgage-backed securities and
asset-backed securities. For example, homeowners have the option to prepay their
mortgages. Therefore, the duration of a security backed by home mortgages can
either shorten (call risk) or lengthen (extension risk). In general, if interest
rates on new mortgage loans fall sufficiently below the interest rates on
existing outstanding mortgage loans, the rate of prepayment would be expected to
increase. Conversely, if mortgage loan interest rates rise above the interest
rates on existing outstanding mortgage loans, the rate of prepayment would be
expected to decrease. In either case, a change in the prepayment rate can result
in losses to investors. The same would be true of asset-backed securities such
as securities backed by car loans.
A rising
interest rate environment could cause the value of a Fund’s fixed income
securities to decrease, and fixed income markets to experience increased
volatility in addition to heightened levels of liquidity risk. Additionally,
decreases in the value of fixed income securities could lead to shareholder
redemptions, which could impair a Fund’s ability to achieve its investment
objective. The risks associated with changing interest rates may have
unpredictable effects on the markets and the Funds’ investments.
The
Investment Adviser will not consider the portfolio turnover rate a limiting
factor in making investment decisions for a Fund. A high rate of portfolio
turnover (100% or more) involves correspondingly greater expenses which must be
borne by a Fund and its shareholders, and is also likely to result in higher
short-term capital gains taxable to certain shareholders. The portfolio turnover
rate is calculated by dividing the lesser of the dollar amount of sales or
purchases of portfolio securities by the average monthly value of a Fund’s
portfolio securities, excluding securities having a maturity at the date of
purchase of one year or less. See “Financial Highlights” in Appendix B for a
statement of the Funds’ historical portfolio turnover rates.
The Funds
may, from time to time, enter into arrangements with certain brokers or other
counterparties that require the segregation of collateral. For operational, cost
or other reasons, when setting up arrangements relating to the
execution/clearing of trades, a Fund may choose to select a segregation model
which may not be the most protective option available in the case of a default
by a broker or counterparty.
The
following sections provide 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 investment restrictions that cannot be changed without shareholder
approval.
You should
note, however, that all investment objectives and 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.
59
|
B.
Other Portfolio Risks |
Risks
of Writing Index Call Options. When the
U.S. Equity Dividend and Premium Fund and International Equity Dividend and
Premium Fund write (sell) S&P 500® Index and
MSCI EAFE Index (or other index or related ETF) call options, respectively, they
forego the opportunity to benefit from an increase in the value of the relevant
index above the exercise price (plus the premium received) of the option, but
each Fund continues to bear the risk of a decline in the value of the relevant
index. As the seller of the index call options, the U.S. Equity Dividend and
Premium Fund and the International Equity Dividend and Premium Fund receive cash
(the “premium”) from the purchaser. Depending upon the type of call option, the
purchaser of an index call option either (i) has the right to any appreciation
in the value of the index over a fixed price (the “exercise price”) on a certain
date in the future (the “expiration date”) or (ii) has the right to any
appreciation in the value of the index over the exercise price at any time prior
to the expiration of the option. If the purchaser does not exercise the option,
the Fund retains the premium and makes no payments to the purchaser. If the
purchaser exercises the option, the Fund pays the purchaser the difference
between the price of the index and the exercise price of the option. The
premium, the exercise price and the market value of the index determine the gain
or loss realized by a Fund as the seller of the index call option. The Funds can
also repurchase the call option prior to the expiration date, ending its
obligation. In this case, the cost of entering into closing purchase
transactions will determine the gain or loss realized by a Fund.
There is no
assurance that a liquid market will be available at all times for the Fund to
write call options or to enter into closing purchase transactions. In addition,
the premiums the Funds receive for writing call options may decrease as a result
of a number of factors, including a reduction in interest rates generally, a
decline in stock market volumes or a decrease in the price volatility of the
underlying securities. For more information see “Portfolio Securities and
Techniques—Options on Securities, Securities Indices and Foreign
Currencies.”
Risks
of Investing in Mid-Capitalization and Small-Capitalization
Companies. The Funds
may, to the extent consistent with their respective investment policies, invest
in mid- and small-capitalization companies. Investments in mid- and
small-capitalization companies involve greater risk and portfolio price
volatility than investments in larger capitalization stocks. Among the reasons
for the greater price volatility of these investments are the less certain
growth prospects of smaller firms and the lower degree of liquidity in the
markets for such securities. Mid- and small-capitalization companies may be
thinly traded and may have to be sold at a discount from current market prices
or in small lots over an extended period of time. In addition, these securities
are subject to the risk that during certain periods the liquidity of particular
issuers or industries, or all securities in particular investment categories,
will shrink or disappear suddenly and without warning as a result of adverse
economic or market conditions, or adverse investor perceptions whether or not
accurate. Because of the lack of sufficient market liquidity, a Fund may incur
losses because it will be required to effect sales at a disadvantageous time and
only then at a substantial drop in price. Mid- and small-capitalization
companies include “unseasoned” issuers that do not have an established financial
history; often have limited product lines, markets or financial resources; may
depend on or use a few key personnel for management; and may be susceptible to
losses and risks of bankruptcy. Mid- and small-capitalization companies may be
operating at a loss or have significant variations in operating results; may be
engaged in a rapidly changing business with products subject to a substantial
risk of obsolescence; may require substantial additional capital to support
their operations, to finance expansion or to maintain their competitive
position; and may have substantial borrowings or may otherwise have a weak
financial condition. In addition, these companies may face intense competition,
including competition from companies with greater financial resources, more
extensive development, manufacturing, marketing, and other capabilities, and a
larger number of qualified managerial and technical personnel. Transaction costs
for these investments are often higher than those of larger capitalization
companies. Investments in mid- and small-capitalization companies may be more
difficult to price precisely than other types of securities because of their
characteristics and lower trading volumes.
Risks
of Foreign Investments. The Funds
may make foreign investments, although the U.S. Equity Dividend and Premium Fund
and U.S. Tax-Managed Equity Fund may only invest in foreign issuers that are
traded in the United States. Foreign investments involve special risks that are
not typically associated with U.S. dollar denominated or quoted securities of
U.S. issuers. Foreign investments may be affected by changes in currency rates,
changes in foreign or U.S. laws or restrictions applicable to such investments
and changes in exchange control regulations (e.g., currency blockage). A decline
in the exchange rate of the currency (i.e., weakening of the currency against
the U.S. dollar) in which a portfolio security is quoted or denominated relative
to the U.S. dollar would reduce the value of the portfolio security. In
addition, if the currency in which a Fund receives dividends, interest or other
payments declines in value against the U.S. dollar before such income is
distributed as dividends to shareholders or converted to U.S. dollars, the Fund
may have to sell portfolio securities to obtain sufficient cash to pay such
dividends.
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 a Fund’s foreign holdings or exposures. The
type and severity of sanctions and other similar measures, including counter
sanctions and other retaliatory actions, that may be imposed could vary broadly
in scope, and their impact is impossible to predict. These types of measures may
include, but are not limited to, banning a sanctioned country from global
payment systems that facilitate cross-border payments,
60
Appendix
A
restricting
the settlement of securities transactions by certain investors, and freezing the
assets of particular countries, entities, or persons. The imposition of
sanctions and other similar measures could, among other things, cause a decline
in the value and/or liquidity of securities issued by the sanctioned country or
companies located in or economically tied to the sanctioned country, downgrades
in the credit ratings of the sanctioned country or companies located in or
economically tied to the sanctioned country, devaluation of the sanctioned
country’s currency, and increased market volatility and disruption in the
sanctioned country and throughout the world. Sanctions and other similar
measures could limit or prevent the Fund from buying and selling securities (in
the sanctioned country and other markets), significantly delay or prevent the
settlement of securities transactions, and significantly impact the Fund’s
liquidity and performance.
Brokerage
commissions, custodial services and other costs relating to investment in
international securities markets generally are more expensive than in the United
States. In addition, clearance and settlement procedures may be different in
foreign countries and, in certain markets, such procedures have been unable to
keep pace with the volume of securities transactions, thus making it difficult
to conduct such transactions.
Foreign
issuers are not generally subject to uniform accounting, auditing and financial
reporting standards comparable to those applicable to U.S. issuers. There may be
less publicly available information about a foreign issuer than about a U.S.
issuer. In addition, there is generally less government regulation of foreign
markets, companies and securities dealers than in the United States and the
legal remedies for investors may be more limited than the remedies available in
the United States. Foreign securities markets may have substantially less volume
than U.S. securities markets and securities of many foreign issuers are less
liquid and more volatile than securities of comparable domestic issuers.
Furthermore, with respect to certain foreign countries, there is a possibility
of nationalization, expropriation or confiscatory taxation, imposition of
withholding or other taxes on dividend or interest payments (or, in some cases,
capital gains distributions), limitations on the removal of funds or other
assets from such countries, and risks of political or social instability or
diplomatic developments which could adversely affect investments in those
countries.
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 a Fund, 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 a Fund holds illiquid investments, its
portfolio may be harder to value, especially in changing markets.
If a Fund
focuses its investments in one or a few countries and currencies, the Fund may
be subjected to greater risks than if a Fund’s assets were not geographically
focused.
Investments
in foreign securities may take the form of sponsored and unsponsored American
Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), European
Depositary Receipts (“EDRs”) or other similar instruments representing
securities of foreign issuers. ADRs, GDRs and EDRs represent the right to
receive securities of foreign issuers deposited in a bank or other depository.
ADRs and certain GDRs are traded in the United States. GDRs may be traded in
either the United States or in foreign markets. EDRs are traded primarily
outside the United States. Prices of ADRs are quoted in U.S. dollars. EDRs and
GDRs are not necessarily quoted in the same currency as the underlying
security.
Risks
of Sovereign Debt. Investment
in sovereign debt obligations by a Fund involves risks not present in debt
obligations of corporate issuers. The issuer of the debt or the governmental
authorities that control the repayment of the debt may be unable or unwilling to
repay principal or interest when due in accordance with the terms of such debt,
and a Fund may have limited recourse to compel payment in the event of a
default. Periods of economic uncertainty may result in the volatility of market
prices of sovereign debt, and in turn a Fund’s NAV, to a greater extent than the
volatility inherent in debt obligations of U.S. issuers.
A sovereign
debtor’s willingness or ability to repay principal and pay interest in a timely
manner may be affected by, among other factors, its cash flow situation, the
extent of its foreign currency reserves, the availability of sufficient foreign
exchange on the date a payment is due, the relative size of the debt service
burden to the economy as a whole, the sovereign debtor’s policy toward
international lenders, and the political constraints to which a sovereign debtor
may be subject.
Risks
of Emerging Countries. Certain
Funds may invest in securities of issuers located in, or otherwise economically
tied to, emerging countries. The risks of foreign investment are heightened when
the issuer is located in an emerging country. Emerging countries are generally
located in Africa, Asia, the Middle East, Eastern and Central Europe, and
Central and South America. A Fund’s purchase and sale of portfolio securities in
certain emerging countries may be constrained by limitations relating to daily
changes in the prices of listed securities, periodic trading or settlement
volume and/or limitations on aggregate holdings of foreign investors. Such
limitations may be computed based on the aggregate trading volume by or holdings
of a Fund, the Investment Adviser, its affiliates and their respective clients
and other service providers. A Fund may not be able to sell securities in
circumstances where price, trading or settlement volume limitations have been
reached.
61
Foreign
investment in the securities markets of certain emerging countries is restricted
or controlled to varying degrees which may limit investment in such countries or
increase the administrative costs of such investments. For example, certain
Asian countries require governmental approval prior to investments by foreign
persons or limit investment by foreign persons to only a specified percentage of
an issuer’s outstanding securities or a specific class of securities which may
have less advantageous terms (including price) than securities of the issuer
available for purchase by nationals. In addition, certain countries may restrict
or prohibit investment opportunities in issuers or industries deemed important
to national interests. Such restrictions may affect the market price, liquidity
and rights of securities that may be purchased by a Fund. The repatriation of
investment income, capital or the proceeds of securities sales from certain
emerging countries is subject to restrictions such as the need for governmental
consents, which may make it difficult for a Fund to invest in such emerging
countries. A Fund could be adversely affected by delays in, or a refusal to
grant, any required governmental approval for such repatriation. In situations
where a country restricts direct investment in securities (which may occur in
certain Asian and other countries), a Fund may invest in such countries through
other investment funds in such countries.
Emerging
market countries may have more or less government regulation and generally do
not impose as extensive and frequent accounting, auditing, financial and other
reporting requirements as the securities markets of more developed countries.
The degree of cooperation between issuers in emerging and frontier market
countries with foreign and U.S. financial regulators may vary significantly.
Accordingly, regulators may not have sufficient access to audit and oversee
issuers, and there could be less information available about issuers in certain
emerging market countries. As a result, the Investment Adviser’s ability to
evaluate local companies or their potential impact on the Fund’s performance
could be inhibited.
Many
emerging countries have experienced currency devaluations and substantial (and,
in some cases, extremely high) rates of inflation. Other emerging countries have
experienced economic recessions. These circumstances have had a negative effect
on the economies and securities markets of such emerging countries. Economies in
emerging countries generally are dependent heavily upon commodity prices and
international trade and, accordingly, have been and may continue to be affected
adversely by the economies of their trading partners, trade barriers, exchange
controls, managed adjustments in relative currency values and other
protectionist measures imposed or negotiated by the countries with which they
trade.
Many
emerging countries are subject to a substantial degree of economic, political
and social instability. Governments of some emerging countries are authoritarian
in nature or have been installed or removed as a result of military coups, while
governments in other emerging countries have periodically used force to suppress
civil dissent. Disparities of wealth, the pace and success of democratization,
and ethnic, religious and racial disaffection, among other factors, have also
led to social unrest, violence and/or labor unrest in some emerging countries.
Unanticipated political or social developments may result in sudden and
significant investment losses. Investing in emerging countries involves greater
risk of loss due to expropriation, nationalization, confiscation of assets and
property or the imposition of restrictions on foreign investments and on
repatriation of capital invested. As an example, in the past, some Eastern
European governments have expropriated substantial amounts of private property,
and many claims of the property owners have never been fully settled. There is
no assurance that similar expropriations will not occur in other
countries.
A Fund’s
investment in emerging countries may also be subject to withholding or other
taxes, which may be significant and may reduce the return to the Fund from an
investment in issuers in such countries.
Settlement
procedures in emerging countries are frequently less developed and reliable than
those in the United States and may involve a Fund’s delivery of securities
before receipt of payment for their sale. In addition, significant delays may
occur in certain markets in registering the transfer of securities. Settlement
or registration problems may make it more difficult for a Fund to value its
portfolio securities and could cause the Fund to miss attractive investment
opportunities, to have a portion of its assets uninvested or to incur losses due
to the failure of a counterparty to pay for securities the Fund has delivered or
the Fund’s inability to complete its contractual obligations because of theft or
other reasons.
The
creditworthiness of the local securities firms used by a Fund in emerging
countries may not be as sound as the creditworthiness of firms used in more
developed countries. As a result, the Fund may be subject to a greater risk of
loss if a securities firm defaults in the performance of its
responsibilities.
The small
size and inexperience of the securities markets in certain emerging countries
and the limited volume of trading in securities in those countries may make a
Fund’s investments in such countries less liquid and more volatile than
investments in countries with more developed securities markets (such as the
United States, Japan and most Western European countries). A Fund’s investments
in emerging countries are subject to the risk that the liquidity of a particular
investment, or investments generally, in such countries will shrink or disappear
suddenly and without warning as a result of adverse economic, market or
political conditions or adverse investor perceptions, whether or not accurate.
Because of the lack of sufficient market liquidity, a Fund may incur losses
because it will be required to effect sales at a disadvantageous time and only
then at a substantial drop in price. Investments in emerging countries may be
more difficult to value precisely because of the characteristics discussed above
and lower trading volumes.
62
Appendix
A
A Fund’s
use of foreign currency management techniques in emerging countries may be
limited. Due to the limited market for these instruments in emerging countries,
all or a significant portion of a Fund’s currency exposure in emerging countries
may not be covered by those techniques. The Investment Adviser anticipates that
a significant portion of the Funds’ currency exposure in emerging countries may
not be covered by those techniques.
Foreign
Custody Risk. A Fund
that invests in foreign securities may hold such securities and cash with
foreign banks, agents, and securities depositories appointed by the Fund’s
custodian (each a “Foreign Custodian”). Some Foreign Custodians may be recently
organized or new to the foreign custody business. In some countries, Foreign
Custodians may be subject to little or no regulatory oversight over or
independent evaluation of their operations. Further, the laws of certain
countries may place limitations on a Fund’s ability to recover its assets if a
Foreign Custodian enters bankruptcy. Investments in emerging markets may be
subject to even greater custody risks than investments in more developed
markets. Custody services in emerging market countries are very often
undeveloped and may be considerably less well regulated than in more developed
countries, and thus may not afford the same level of investor protection as
would apply in developed countries.
Risks
of Derivative Investments. The Funds
may invest in derivative instruments, including without limitation, options,
futures, options on futures, swaps, interest rate caps, floors and collars,
structured securities and forward contracts and other derivatives relating to
foreign currency transactions. Derivatives may be used for both hedging and
nonhedging purposes (that is, to seek to increase total return), although
suitable derivative instruments may not always be available to the Investment
Adviser for these purposes. Losses from derivative instruments can result from a
lack of correlation between changes in the value of derivative instruments and
the portfolio assets (if any) being hedged, the potential illiquidity of the
markets for derivative instruments, the failure of the counterparty to perform
its contractual obligations, or the risks related to leverage factors associated
with such transactions. Derivatives are also subject to risks arising from
margin requirements, which include the risk that a Fund will be required to pay
additional margin or set aside additional collateral to maintain open derivative
positions and the risk of loss by a Fund of margin deposits in the event of the
bankruptcy or other similar insolvency with respect to a broker or counterparty
with whom a Fund has an open derivative position. Losses may also arise if the
Funds receive cash collateral under the transactions and some or all of that
collateral is invested in the market. To the extent that cash collateral is so
invested, such collateral will be subject to market depreciation or
appreciation, and a Fund may be responsible for any loss that might result from
its investment of the counterparty’s cash collateral. If cash collateral is not
invested, a Fund may be exposed to additional risk of loss in the event of the
insolvency of its custodian holding such collateral. The use of these management
techniques also involves the risk of loss if the Investment Adviser is incorrect
in its expectation of the timing or level of fluctuations in securities prices,
interest rates, currency prices or other variables. Derivative instruments may
be harder to value, subject to greater volatility and more likely subject to
changes in tax treatment than other investments. For these reasons, the
Investment Adviser’s attempts to hedge portfolio risk through the use of
derivative instruments may not be successful, and the Investment Adviser may
choose not to hedge portfolio risks. Using derivatives for nonhedging purposes
presents greater risk of loss than derivatives used for hedging
purposes.
Risks
of Illiquid Investments. Each Fund
may not acquire any “illiquid investment” if, immediately after the acquisition,
the Fund would have invested more than 15% of its net assets in illiquid
investments that are assets. An “illiquid investment” is an investment that a
Fund reasonably expects cannot be sold or disposed of in current market
conditions in seven calendar days or less without the sale or disposition
significantly changing the market value of the investment. In determining
whether an investment is an illiquid investment, the Investment Adviser will
take into account actual or estimated daily transaction volume of an investment,
group of related investments or asset class and other relevant market, trading,
and investment-specific considerations. In addition, in determining the
liquidity of an investment, the Investment Adviser must determine whether
trading varying portions of a position in a particular portfolio investment or
asset class, in sizes that a Fund would reasonably anticipate trading, is
reasonably expected to significantly affect its liquidity, and if so, the Fund
must take this determination into account when classifying the liquidity of that
investment or asset class.
Investments
purchased by a Fund, that are liquid at the time of purchase may subsequently
become illiquid. If one or more investments in a Fund’s portfolio become
illiquid, the Fund may exceed the 15 percent limitation in illiquid investments.
In the event that changes in the portfolio or other external events cause a Fund
to exceed this limit, the Fund must take steps to bring its illiquid investments
that are assets to or below 15% of its net assets within a reasonable period of
time. This requirement would not force a Fund to liquidate any portfolio
instrument where the Fund would suffer a loss on the sale of that
instrument.
In cases
where no clear indication of the value of a Fund’s portfolio instruments is
available, the portfolio instruments will be valued at their fair value
according to the valuation procedures approved by the Board of Trustees. These
cases include, among others, situations where a security or other asset or
liability does not have a price source, or the secondary markets on which an
investment has previously been traded are no longer viable, due to its lack of
liquidity. For more information on fair valuation, please see “Shareholder
Guide—How To Buy Shares—How Are Shares Priced?”
Credit/Default
Risks. Debt
securities purchased by the Funds may include U.S. Government Securities
(including zero coupon bonds) and securities issued by foreign governments,
domestic and foreign corporations, banks and other issuers. Some of these
fixed-income securities are described in the next section below. Further
information is provided in the SAI.
63
Debt
securities rated BBB– or higher by Standard & Poor’s, or Baa3 or higher by
Moody’s or having a comparable credit rating by another NRSRO are considered
“investment grade.” Securities rated BBB– or Baa3 are considered medium-grade
obligations with speculative characteristics, and adverse economic conditions or
changing circumstances may weaken their issuers’ capacity to pay interest and
repay principal. For the purpose of determining compliance with any credit
rating requirement, each Fund assigns a security, at the time of purchase, the
highest rating by an NRSRO if the security is rated by more than one NRSRO.
Therefore, a security will be deemed to have met a rating requirement if it
receives the minimum required rating from at least one such rating organization
even though it has been rated below the minimum rating by one or more other
rating organizations, or if unrated by such rating organizations, the security
is determined by the Investment Adviser to be of comparable credit
quality.
A security
satisfies a Fund’s minimum rating requirement regardless of its relative ranking
(for example, plus or minus) within a designated major rating category (for
example, BBB– or Baa3). If a security satisfies a Fund’s minimum rating
requirement at the time of purchase and is subsequently downgraded below that
rating, the Fund will not be required to dispose of the security. If a downgrade
occurs, the Investment Adviser will consider which action, including the sale of
the security, is in the best interest of a Fund and its
shareholders.
In some
cases, junk bonds may be highly speculative, have poor prospects for reaching
investment grade standing and be in default. As a result, investment in such
bonds will present greater speculative risks than those associated with
investment in investment grade bonds. Also, to the extent that the rating
assigned to a security in a Fund’s portfolio is downgraded by a rating
organization, the market price and liquidity of such security may be adversely
affected.
Temporary
Investment Risks. Each Fund
may, for temporary defensive purposes, invest a certain percentage of its total
assets in:
◼
U.S.
Government Securities
◼
Commercial
paper rated at least A-2 by Standard & Poor’s; P-2 by Moody’s or having a
comparable rating by another NRSRO (or, if unrated, determined by the Investment
Adviser to be of comparable credit quality)
◼
Certificates
of deposit
◼
Bankers’
acceptances
◼
Repurchase
agreements
◼
Non-convertible
preferred stocks and non-convertible corporate bonds with a remaining maturity
of less than one year
◼
ETFs
◼
Other
investment companies
◼
Cash
items
When a
Fund’s assets are invested in such instruments, the Fund may not be achieving
its investment objective.
|
C. Portfolio
Securities and Techniques |
This
section provides further information on certain types of securities and
investment techniques that may be used by the Funds, including their associated
risks.
The Funds
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. Further information is provided in the SAI, which is available upon
request.
Convertible
Securities. Each Fund
may invest in convertible securities. Convertible securities are preferred stock
or debt obligations that are convertible into common stock. Convertible
securities generally offer lower interest or dividend yields than
non-convertible securities of similar quality. Convertible securities have both
equity and fixed income risk characteristics. Like all fixed income securities,
the value of convertible securities is susceptible to the risk of market losses
attributable to changes in interest rates. Generally, the market value of
convertible securities tends to decline as interest rates increase and,
conversely, to increase as interest rates decline. However, when the market
price of the common stock underlying a convertible security exceeds the
conversion price of the convertible security, the convertible security tends to
reflect the market price of the underlying common stock. As the market price of
the underlying common stock declines, the convertible security, like a fixed
income security, tends to trade increasingly on a yield basis, and thus may not
decline in price to the same extent as the underlying common stock.
Foreign
Currency Transactions. Certain Funds may, to the
extent consistent with their investment policies, purchase or sell foreign
currencies on a cash basis or through forward contracts. A forward contract
involves an obligation to purchase or sell a specific currency at a future date
at a price set at the time of the contract. A Fund may engage in foreign
currency transactions for hedging purposes and to seek to protect against
anticipated changes in future foreign currency exchange rates. Certain Funds may
also enter into such transactions to seek to increase total return, which is
considered a speculative practice.
64
Appendix
A
Some Funds
may also engage in cross-hedging by using forward contracts in a currency
different from that in which the hedged security is denominated or quoted. A
Fund may hold foreign currency received in connection with investments in
foreign securities when, in the judgment of the Investment Adviser, it would be
beneficial to convert such currency into U.S. dollars at a later date (e.g. the
Investment Adviser may anticipate the foreign currency to appreciate against the
U.S. dollar).
Certain
Funds may, from time to time, engage in non-deliverable forward transactions to
manage currency risk or to gain exposure to a currency without purchasing
securities denominated in that currency. A non-deliverable forward is a
transaction that represents an agreement between a Fund and a counterparty
(usually a commercial bank) to pay the other party the amount that it would cost
based on current market rates as of the termination date to buy or sell a
specified (notional) amount of a particular currency at an agreed upon foreign
exchange rate on an agreed upon future date. If the counterparty defaults, a
Fund will have contractual remedies pursuant to the agreement related to the
transaction, but the Fund may be delayed or prevented from obtaining payments
owed to it pursuant to non-deliverable forward transactions. Such
non-deliverable forward transactions will be settled in cash.
Currency
exchange rates may fluctuate significantly over short periods of time, causing,
along with other factors, a Fund’s NAV to fluctuate (when the Fund’s NAV
fluctuates, the value of your shares may go up or down). Currency exchange rates
also can be affected unpredictably by the intervention of U.S. or foreign
governments or central banks, or the failure to intervene, or by currency
controls or political developments in the United States or abroad.
Certain
forward foreign currency exchange contracts and other currency transactions are
not exchange traded or cleared. The market in such forward foreign currency
exchange contracts, currency swaps and other privately negotiated currency
instruments offers less protection against defaults by the other party to such
instruments than is available for currency instruments traded on an exchange.
Such contracts are subject to the risk that the counterparty to the contract
will default on its obligations. Because these contracts are not guaranteed by
an exchange or clearinghouse, a default on a contract would deprive a Fund of
unrealized profits, transaction costs or the benefits of a currency hedge or
could force the Fund to cover its purchase or sale commitments, if any, at the
current market price.
A Fund is
not required to post cash collateral with its counterparties in certain foreign
currency transactions. Accordingly, a Fund may remain more fully invested (and
more of the Fund’s assets may be subject to investment and market risk) than if
it were required to post collateral with its counterparties (which is the case
with certain transactions). Where a Fund’s counterparties are not required to
post cash collateral with the Fund, the Fund will be subject to additional
counterparty risk.
Structured
Securities. Each Fund
may invest in structured securities. Structured securities are securities whose
value is determined by reference to changes in the value of specific currencies,
securities, interest rates, commodities, indices or other financial indicators
(the “Reference”) or the relative change in two or more References. Investments
in structured securities may provide exposure to certain securities or markets
in situations where regulatory or other restrictions prevent direct investments
in such issuers or markets.
The
interest rate or the principal amount payable upon maturity or redemption may be
increased or decreased depending upon changes in the applicable Reference.
Structured securities may be positively or negatively indexed, so that
appreciation of the Reference may produce an increase or decrease in the
interest rate or value of the security at maturity. In addition, changes in the
interest rates or the value of the security at maturity may be a multiple of
changes in the value of the Reference, effectively leveraging a Fund’s
investments so that small changes in the value of the Reference may result in
disproportionate gains or losses to the Fund. Consequently, structured
securities may present a greater degree of market risk than many types of
securities and may be more volatile, less liquid and more difficult to price
accurately than less complex securities. Structured securities are also subject
to the risk that the issuer of the structured securities may fail to perform its
contractual obligations. Certain issuers of structured products may be deemed to
be investment companies as defined in the Investment Company Act. As a result, a
Fund’s investments in structured securities may be subject to the limits
applicable to investments in other investment companies.
Structured
securities are considered hybrid instruments because they are derivative
instruments the value of which depends on, or is derived from or linked to, the
value of an underlying asset, interest rate index or commodity. Commodity-linked
notes are hybrid instruments because the principal and/or interest payments on
those notes is linked to the value of the individual commodities, futures
contracts or the performance of one or more commodity indices.
Structured
securities may also include equity linked notes. An equity linked note is a note
whose performance is tied to a single stock, a stock index or a basket of
stocks. Equity linked notes combine the principal protection normally associated
with fixed income investments with the potential for capital appreciation
normally associated with equity investments. Upon the maturity of the note, the
holder generally receives a return of principal based on the capital
appreciation of the linked securities. Depending on the terms of the note,
equity linked notes may also have a “cap” or “floor” on the maximum principal
amount to be repaid to holders, irrespective of the performance of the
underlying linked securities. For example, a note may guarantee the repayment of
the original principal amount invested (even if the underlying linked securities
have negative performance during the note’s term), but may cap the maximum
payment at maturity at a certain percentage of the issuance price or the return
of the underlying linked securities. Alternatively, the note may not guarantee a
full return on the original principal, but may offer a greater participation in
any capital appreciation of the
65
underlying
linked securities. The terms of an equity linked note may also provide for
periodic interest payments to holders at either a fixed or floating rate. The
secondary market for equity linked notes may be limited, and the lack of
liquidity in the secondary market may make these securities difficult to dispose
of and to value. Equity linked notes will be considered equity securities for
purposes of a Fund’s investment objective and policies.
Structured
securities may also include credit linked notes. Credit linked notes are
securities with embedded credit default swaps. An investor holding a credit
linked note generally receives a fixed or floating coupon and the note’s par
value upon maturity, unless the referred credit defaults or declares bankruptcy,
in which case the investor receives the amount recovered. In effect, investors
holding credit linked notes receive a higher yield in exchange for assuming the
risk of a specified credit event.
REITs. Each Fund
may invest in REITs. REITs are pooled investment vehicles that invest primarily
in either real estate or real estate related loans. The value of a REIT is
affected by changes in the value of the properties owned by the REIT or securing
mortgage loans held by the REIT. REITs are dependent upon the ability of the
REITs’ managers, and are subject to heavy cash flow dependency, default by
borrowers and the qualification of the REITs under applicable regulatory
requirements for favorable income tax treatment. REITs are also subject to risks
generally associated with investments in real estate including possible declines
in the value of real estate, general and local economic conditions,
environmental problems and changes in interest rates. To the extent that assets
underlying a REIT are concentrated geographically, by property type or in
certain other respects, these risks may be heightened. A Fund will indirectly
bear its proportionate share of any expenses, including management fees, paid by
a REIT in which it invests.
Options
on Securities, Securities Indices and Foreign Currencies. A put
option gives the purchaser of the option the right to sell, and the writer
(seller) of the option the obligation to buy, the underlying instrument during
the option period. A call option gives the purchaser of the option the right to
buy, and the writer (seller) of the option the obligation to sell, the
underlying instrument during the option period. Each Fund may write (sell) call
and put options and purchase put and call options on any securities and other
instruments in which the Fund may invest or any index consisting of securities
or other instruments in which it may invest. A Fund may also, to the extent
consistent with its investment policies, purchase and write (sell) put and call
options on foreign currencies.
The writing
and purchase of options is a highly specialized activity which involves special
investment risks. Options may be used for either hedging or cross-hedging
purposes, or to seek to increase total return (which presents additional risk).
The successful use of options depends in part on the ability of the Investment
Adviser to anticipate future price fluctuations and the degree of correlation
between the options and securities (or currency) markets. If the Investment
Adviser is incorrect in its expectation of changes in market prices or
determination of the correlation between the instruments or indices on which
options are written and purchased and the instruments in a Fund’s investment
portfolio, the Fund may incur losses that it would not otherwise incur. The use
of options can also increase a Fund’s transaction costs. Options written or
purchased by the Funds may be traded on either U.S. or foreign exchanges or
over-the-counter. Foreign and over-the-counter options will present greater
possibility of loss because of their greater illiquidity and credit
risks.
Futures
Contracts and Options and Swaps on Futures Contracts. Futures
contracts are standardized, exchange-traded contracts that provide for the sale
or purchase of a specified financial instrument or currency at a future time at
a specified price. An option on a futures contract gives the purchaser the right
(and the writer of the option the obligation) to assume a position in a futures
contract at a specified exercise price within a specified period of time. A swap
on a futures contract provides an investor with the ability to gain economic
exposure to a particular futures market. A futures contract may be based on
particular securities, foreign currencies, securities indices and other
financial instruments and indices. The Funds may engage in futures transactions
on both U.S. and foreign exchanges (except that the U.S. Equity Dividend and
Premium Fund and Tax-Managed Equity Fund may only engage in futures transactions
with respect to U.S. equity indices).
Each Fund
may, to the extent consistent with its investment policies, purchase and sell
futures contracts, purchase and write call and put options on futures contracts,
and enter into swaps on futures contracts in order to seek to increase total
return or to hedge against changes in interest rates, securities prices or, to
the extent a Fund invests in foreign securities, currency exchange rates, or to
otherwise manage its term structure, sector selections and duration in
accordance with its investment objective and policies. Each Fund may also enter
into closing purchase and sale transactions with respect to such contracts and
options.
Futures
contracts and related options and swaps present the following risks:
◼
While a
Fund may benefit from the use of futures and options and swaps on futures,
unanticipated changes in interest rates, securities prices or currency exchange
rates may result in poorer overall performance than if the Fund had not entered
into any futures contracts, options transactions or swaps.
◼
Because
perfect correlation between a futures position and a portfolio position that is
intended to be protected is impossible to achieve, the desired protection may
not be obtained and a Fund may be exposed to additional risk of
loss.
◼
The loss
incurred by a Fund in entering into futures contracts and in writing call
options and entering into swaps on futures is potentially unlimited and may
exceed the amount of the premium received.
◼
Futures
markets are highly volatile and the use of futures may increase the volatility
of a Fund’s NAV.
66
Appendix
A
◼
As a result
of the low margin deposits normally required in futures trading, a relatively
small price movement in a futures contract may result in substantial losses to a
Fund.
◼
Futures
contracts and options and swaps on futures may be illiquid, and exchanges may
limit fluctuations in futures contract prices during a single day.
◼
Foreign
exchanges may not provide the same protection as U.S. exchanges.
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 and yield to the Fund at the time of
entering into the transaction. A forward commitment involves the 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.
Repurchase
Agreements. Repurchase
agreements involve the purchase of securities subject to the seller’s agreement
to repurchase them at a mutually agreed upon date and price. Each Fund may enter
into repurchase agreements with counterparties approved by the Investment
Adviser pursuant to procedures approved by the Board of Trustees that furnish
collateral at least equal in value or market price to the amount of their
repurchase obligations. Repurchase agreements involving obligations other than
U.S. Government Securities may be subject to additional risks.
If the
other party or “seller” defaults, a Fund might 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 costs
associated with delay and enforcement of the repurchase agreement. In addition,
in the event of bankruptcy of the seller, a Fund could suffer additional losses
if a court determines that the Fund’s interest in the collateral is not
enforceable.
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.
Lending
of Portfolio Securities. The Funds
may engage in securities lending. Securities lending involves the lending of
securities owned by a Fund to financial institutions such as certain
broker-dealers including, as permitted by the SEC, Goldman Sachs. The borrowers
are required to secure their loan continuously with cash, cash equivalents, U.S.
government securities or letters of credit in an amount at least equal to the
market value of the securities loaned. Cash collateral may be invested by a Fund
in short-term investments, including registered and unregistered investment
pools managed by the Investment Adviser, its affiliates or the Funds’ custodian
and from which the Investment Adviser or its affiliates may receive fees. To the
extent that cash collateral is so invested, such collateral will be subject to
market depreciation or appreciation, and a Fund will be responsible for any loss
that might result from its investment of the borrowers’ collateral. If the
Investment Adviser determines to make securities loans, the value of the
securities loaned may not exceed 33 1∕3% of the
value of the total assets of a Fund (including the loan collateral). Loan
collateral (including any investment of the collateral) is not subject to the
percentage limitations described elsewhere in the Prospectus regarding
investments in fixed income securities and cash equivalents.
A Fund may
lend its securities to increase its income. A Fund may, however, experience
delay in the recovery of its securities or incur a loss if the institution with
which it has engaged in a portfolio loan transaction breaches its agreement with
the Fund or its agent, or becomes insolvent.
Short
Sales Against-the-Box. Certain
Funds may make short sales against-the-box. A short sale against-the-box means
that at all times when a short position is open the Fund will own an equal
amount of securities sold short, or securities convertible into or exchangeable
for, without payment of any further consideration, an equal amount of the
securities of the same issuer as the securities sold short.
Preferred
Stock, Warrants and Stock Purchase Rights. Each Fund
may invest in preferred stock, warrants and stock purchase rights (or “rights”).
Preferred stocks are securities that represent an ownership interest providing
the holder with claims on the issuer’s earnings and assets before common stock
owners but after bond owners. Unlike debt securities, the obligations of an
issuer of preferred stock, including dividend and other payment obligations, may
not typically be accelerated by the holders of such preferred stock on the
occurrence of an event of default or other non-compliance by the issuer of the
preferred stock.
67
Warrants
and other rights are options to buy a stated number of shares of common stock at
a specified price at any time during the life of the warrant or right. The
holders of warrants and rights have no voting rights, receive no dividends and
have no rights with respect to the assets of the issuer.
Other
Investment Companies. Each Fund
may invest in securities of other investment companies, including ETFs and money
market funds, subject to statutory limitations prescribed by the Investment
Company Act or rules, regulations or exemptive relief thereunder. These
statutory limitations include in certain circumstances a prohibition on any 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.
Subject to
applicable law and/or to an exemptive order obtained from the SEC or under an
exemptive rule adopted by the SEC, a Fund may invest in certain other investment
companies (including ETFs and money market funds) and business development
companies beyond the statutory limits described above or otherwise provided that
certain conditions are met. Some of those investment companies may be funds for
which the Investment Adviser or any of its affiliates serves as investment
adviser, administrator or distributor.
Additionally,
to the extent that any Fund serves as an “acquired fund” to another Goldman
Sachs Fund or unaffiliated investment company, the Fund’s ability to invest in
other investment companies and private funds may be limited and, under these
circumstances, the Fund’s investments in other investment companies and private
funds will be consistent with applicable law and/or exemptive rules adopted by
or exemptive orders obtained from the SEC. For example, to the extent the Fund
serves as an acquired fund in a fund of funds arrangement in reliance on Rule
12d1-4 under the Investment Company Act, the Fund would be prohibited from
purchasing or otherwise acquiring the securities of an investment company or
private fund if, after such purchase or acquisition, the aggregate value of the
Fund’s investments in such investment companies and private funds would exceed
10% of the value of the Fund’s total assets, subject to limited exceptions
(including for investments in money market funds).
The use of
ETFs is generally intended to help a Fund match the total return of the
particular market segments or indices represented by those ETFs, although that
may not be the result. Most ETFs are passively managed investment companies
whose shares are purchased and sold on a securities exchange. An ETF generally
represents a portfolio of securities designed to track a particular market
segment or index. An investment in an ETF generally presents the same primary
risks as an investment in a conventional fund (i.e., one that is not
exchange-traded) that has the same investment objectives, strategies and
policies. In addition, an ETF may fail to accurately track the market segment or
index that underlies its investment objective. The price of an ETF can
fluctuate, and a Fund could lose money investing in an ETF. Moreover, ETFs are
subject to the following risks that do not apply to conventional funds: (i) the
market price of the ETF’s shares may trade at a premium or a discount to their
NAV; (ii) an active trading market for an ETF’s shares may not develop or be
maintained; and (iii) there is no assurance that the requirements of the
exchange necessary to maintain the listing of an ETF will continue to be met or
remain unchanged.
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 or series thereof that has
substantially the same investment objective, policies and fundamental
restrictions as the Fund.
Unseasoned
Companies. Each Fund
may invest in companies which (together with their predecessors) have operated
less than three years. The securities of such companies may have limited
liquidity, which can result in their being priced higher or lower than might
otherwise be the case. In addition, investments in unseasoned companies are more
speculative and entail greater risk than do investments in companies with an
established operating record.
Corporate
Debt Obligations. Corporate
debt obligations include bonds, notes, debentures, commercial paper and other
obligations of corporations to pay interest and repay principal. Each Fund may
invest in corporate debt obligations issued by U.S. and certain non-U.S. issuers
which issue securities denominated in the U.S. dollar (including Yankee and Euro
obligations). In addition to obligations of corporations, corporate debt
obligations include securities issued by banks and other financial institutions
and supranational entities (i.e., the World Bank, the International Monetary
Fund, etc.).
Bank
Obligations. Each Fund
may invest in obligations issued or guaranteed by U.S. or foreign banks. Bank
obligations, including without limitation, time deposits, bankers’ acceptances
and certificates of deposit, may be general obligations of the parent bank or
may be limited to the issuing branch by the terms of the specific obligations or
by government regulations. Banks are subject to extensive but different
governmental regulations which may limit both the amount and types of loans
which may be made and interest rates which may be charged. In addition, the
profitability of the banking industry is largely dependent upon the availability
and cost of funds for the purpose of financing lending operations under
prevailing money market conditions. General economic conditions as well as
exposure to credit losses arising from possible financial difficulties of
borrowers play an important part in the operation of this industry.
68
Appendix
A
U.S.
Government Securities. Each Fund
may invest in U.S. Government Securities. U.S. Government Securities include
U.S. Treasury obligations and obligations issued or guaranteed by U.S.
government agencies, instrumentalities or sponsored enterprises. U.S. Government
Securities may be supported by (i) the full faith and credit of the U.S.
Treasury; (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 also include Treasury receipts, zero coupon bonds and
other stripped U.S. Government Securities, where the interest and principal
components are traded independently. U.S. Government Securities may also include
Treasury inflation-protected securities whose principal value is periodically
adjusted according to the rate of inflation.
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 illiquid.
U.S.
Treasury Securities 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 rate 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.
Custodial
Receipts and Trust Certificates. Each Fund
may invest in custodial receipts and trust certificates representing interests
in securities held by a custodian or trustee. The securities so held may include
U.S. Government Securities or other types of securities in which a Fund may
invest. The custodial receipts or trust certificates may evidence ownership of
future interest payments, principal payments or both on the underlying
securities, or, in some cases, the payment obligation of a third party that has
entered into an interest rate swap or other arrangement with the custodian or
trustee. For certain securities laws purposes, custodial receipts and trust
certificates may not be considered obligations of the U.S. government or other
issuer of the securities held by the custodian or trustee. If for tax purposes a
Fund is not considered to be the owner of the underlying securities held in the
custodial or trust account, the Fund may suffer adverse tax consequences. As a
holder of custodial receipts and trust certificates, a Fund will bear its
proportionate share of the fees and expenses charged to the custodial account or
trust. Each Fund may also invest in separately issued interests in custodial
receipts and trust certificates.
Borrowings. Each Fund
can borrow money from banks and other financial institutions in amounts not
exceeding one-third of its total assets (including the amount borrowed) for
temporary or emergency purposes.
Mortgage
Dollar Rolls. The
International Tax-Managed Equity Fund may enter into mortgage dollar rolls. A
mortgage dollar roll involves the sale by a Fund of securities for delivery in
the current month. The Fund simultaneously contracts with the same counterparty
to repurchase substantially similar (same type, coupon and maturity) but not
identical securities on a specified future date. During the roll period, the
Fund loses the right to receive principal and interest paid on the securities
sold. However, the Fund benefits to the extent of any difference between (a) the
price received for the securities sold and (b) the lower forward price for the
future purchase and/or fee income plus the interest earned on the cash proceeds
of the securities sold. Unless the benefits of a mortgage dollar roll exceed the
income, capital appreciation and gain or loss due to mortgage prepayments that
would have been realized on the securities sold as part of the roll, the use of
this technique will diminish the Fund’s performance.
Successful
use of mortgage dollar rolls depends upon the Investment Adviser’s ability to
predict correctly interest rates and mortgage prepayments. If the Investment
Adviser is incorrect in its prediction, a Fund may experience a loss. The Fund
does not currently intend to enter into mortgage dollar rolls for financing and
does not treat them as borrowings.
Interest
Rate Swaps, Mortgage Swaps, Credit Swaps, Currency Swaps, Index Swaps, Total
Return Swaps, Equity Swaps, Options on Swaps and Interest Rate Caps, Floors and
Collars. Certain
Funds may enter into swap transactions and option agreements, including interest
rate caps, floors and collars. Interest rate swaps involve the exchange by a
Fund with another party of their respective commitments to pay or receive
interest, such as an exchange of fixed-rate payments for floating rate payments.
Mortgage swaps are similar to interest rate swaps in that they represent
commitments to pay and receive interest. The notional principal amount, however,
is tied to a reference pool or pools of mortgages. Credit swaps involve the
receipt of floating or fixed rate payments in exchange for assuming potential
credit losses on an underlying security or pool of securities. Credit swaps give
one party to a transaction (the buyer of the credit swap) the right to dispose
of or acquire an asset (or group of assets or exposure to the performance of an
index), or the right to receive a payment from the other party, upon the
occurrence of specified credit events. Currency swaps involve the exchange of
the parties’ respective rights to make or receive payments in specified
currencies. Total return swaps give a party the right to receive the
appreciation in the value of a specified security, index or other instrument in
return for a fee paid to the counterparty, which will typically be based on an
agreed upon interest rate. If the underlying asset in a total return swap
declines in value over the term of the swap, the party may also be required to
pay the dollar value of that decline to the counterparty. Equity swaps allow the
parties to a swap agreement to exchange the dividend income or other components
of return on an equity investment (for example, a group of equity securities or
an index) for another payment stream. An equity swap may be used by a Fund to
invest in a market without owning or taking physical custody of securities in
circumstances in which direct investment may be restricted for legal reasons or
is otherwise deemed impractical or disadvantageous.
69
Certain
Funds may also purchase and write (sell) options contracts on swaps, commonly
referred to as swaptions. A swaption is an option to enter into a swap
agreement. Like other types of options, the buyer of a swaption pays a
non-refundable premium for the option and obtains the right, but not the
obligation, to enter into an underlying swap or to modify terms of an existing
swap on agreed-upon terms. The seller of a swaption, in exchange for the
premium, becomes obligated (if the option is exercised) to enter into or modify
an underlying swap on agreed-upon terms, which generally entails a greater risk
of loss than the Fund incurs in buying a swaption. The purchase of an interest
rate cap entitles the purchaser, to the extent that a specified index exceeds a
predetermined interest rate, to receive payment of interest on a notional
principal amount from the party selling such interest rate cap. The purchase of
an interest rate floor entitles the purchaser, to the extent that a specified
index falls below a predetermined interest rate, to receive payments of interest
on a notional principal amount from the party selling the interest rate floor.
An interest rate collar is the combination of a cap and a floor that preserves a
certain return within a predetermined range of interest rates.
Certain
Funds may enter into the transactions described above for hedging purposes or to
seek to increase total return. As an example, when a Fund is the buyer of a
credit default swap (commonly known as buying protection), it may make periodic
payments to the seller of the credit default swap to obtain protection against a
credit default on a specified underlying asset (or group of assets). If a
default occurs, the seller of a credit default swap may be required to pay the
Fund the notional amount of the credit default swap on a specified security (or
group of securities). On the other hand, when a Fund is a seller of a credit
default swap (commonly known as selling protection), in addition to the credit
exposure the Fund has on the other assets held in its portfolio, the Fund is
also subject to the credit exposure on the notional amount of the swap since, in
the event of a credit default, the Fund may be required to pay the notional
amount of the credit default swap on a specified security (or group of
securities) to the buyer of the credit default swap. A Fund will be the seller
of a credit default swap only when the credit of the underlying asset is deemed
by the Investment Adviser to meet the Fund’s minimum credit criteria at the time
the swap is first entered into.
When a Fund
writes (sells) credit swaps on individual securities or instruments, the Fund
must identify on its books liquid assets equal to the full notional amount of
the swaps while the positions are open.
The use of
interest rate, mortgage, credit, currency, index, total return and equity swaps,
options on swaps, and interest rate caps, floors and collars is a highly
specialized activity which involves investment techniques and risks different
from those associated with ordinary portfolio securities transactions. If the
Investment Adviser is incorrect in its forecasts of market values, interest
rates and currency exchange rates, or in its evaluation of the creditworthiness
of swap counterparties and the issuers of the underlying assets, the investment
performance of a Fund would be less favorable than it would have been if these
investment techniques were not used.
Currently,
certain standardized swap transactions are subject to mandatory central clearing
and exchange trading. Although central clearing and exchange trading is expected
to decrease counterparty risk and increase liquidity compared to bilaterally
negotiated swaps, central clearing and exchange trading does not eliminate
counterparty risk or illiquidity risk entirely. Depending on the size of a Fund
and other factors, the margin required under the rules of a clearinghouse and by
a clearing member may be in excess of the collateral required to be posted by a
Fund to support its obligations under a similar bilateral, uncleared swap.
However, certain applicable regulators have adopted rules imposing certain
margin requirements, including minimums, on uncleared swaps which may result in
a Fund and its counterparties posting higher amounts for uncleared
swaps.
70
Appendix
B
Financial
Highlights
The financial highlights
tables are intended to help you understand the Fund’s 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 for the Fund has been audited
by PricewaterhouseCoopers LLP, whose report, along with the Fund’s financial
statements, is included in the Fund’s annual report (available upon
request).
|
|
Goldman
Sachs International Equity Dividend and Premium
Fund | |||||||||
|
|
Class
A Shares | |||||||||
|
|
Year
Ended December 31, | |||||||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 | |||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of year |
$7.59 |
$7.16 |
$7.28 |
$6.55 |
$7.76 | |||||
|
Net
investment income (a) |
0.24 |
0.21 |
0.15 |
0.20 |
0.20 | |||||
|
Net
realized and unrealized gain (loss) |
(1.02) |
0.42 |
(0.11) |
0.73 |
(1.22) | |||||
|
Total
from investment operations |
(0.78) |
0.63 |
0.04 |
0.93 |
(1.02) | |||||
|
Distributions
to shareholders from net investment income |
(0.23) |
(0.20) |
(0.16) |
(0.20) |
(0.19) | |||||
|
Distributions
to shareholders from return of capital |
(0.03) |
— |
—(b) |
— |
— | |||||
|
Total
distributions |
(0.26) |
(0.20) |
(0.16) |
(0.20) |
(0.19) | |||||
|
Net
asset value, end of year |
$6.55 |
$7.59 |
$7.16 |
$7.28 |
$6.55 | |||||
|
Total
return(c) |
(10.29)% |
8.94% |
0.93% |
14.42% |
(13.34)% | |||||
|
Net
assets, end of year (in 000s) |
$1,576 |
$2,170 |
$2,050 |
$2,424 |
$2,232 | |||||
|
Ratio
of total expenses to average net assets |
1.58% |
1.39% |
1.48% |
1.44% |
1.38% | |||||
|
Ratio
of net expenses to average net assets |
1.23% |
1.23% |
1.27% |
1.33% |
1.34% | |||||
|
Ratio
of net investment income to average net assets |
3.63% |
2.85% |
2.39% |
2.86% |
2.71% | |||||
|
Portfolio
turnover rate(d) |
26% |
17% |
34% |
9% |
14% | |||||
|
(a) |
Calculated
based on the average shares outstanding
methodology. |
|
(b) |
Amount
is less than $0.005 per share. |
|
(c) |
Assumes
investment at the net asset value at the beginning of the year,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the year and no sales or redemption charges (if any).
Total returns would be reduced if a sales or redemption charge was taken
into
account. Returns
do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. |
|
(d) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
71
|
|
Goldman
Sachs International Equity Dividend and Premium
Fund | |||||||||
|
|
Class
C Shares | |||||||||
|
|
Year
Ended December 31, | |||||||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 | |||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of year |
$7.32 |
$6.90 |
$7.02 |
$6.32 |
$7.48 | |||||
|
Net
investment income(a) |
0.18 |
0.14 |
0.10 |
0.14 |
0.16 | |||||
|
Net
realized and unrealized gain (loss) |
(0.98) |
0.42 |
(0.11) |
0.71 |
(1.20) | |||||
|
Total
from investment operations |
(0.80) |
0.56 |
(0.01) |
0.85 |
(1.04) | |||||
|
Distributions
to shareholders from net investment income |
(0.20) |
(0.14) |
(0.11) |
(0.15) |
(0.12) | |||||
|
Distributions
to shareholders from return of capital |
(0.02) |
— |
—(b) |
— |
— | |||||
|
Total
distributions |
(0.22) |
(0.14) |
(0.11) |
(0.15) |
(0.12) | |||||
|
Net
asset value, end of year |
$6.30 |
$7.32 |
$6.90 |
$7.02 |
$6.32 | |||||
|
Total
return(c) |
(10.99)% |
8.22% |
0.18% |
13.54% |
(14.01)% | |||||
|
Net
assets, end of year (in 000s) |
$206 |
$362 |
$621 |
$815 |
$1,252 | |||||
|
Ratio
of total expenses to average net assets |
2.33% |
2.16% |
2.23% |
2.19% |
2.11% | |||||
|
Ratio
of net expenses to average net assets |
1.98% |
1.98% |
2.02% |
2.08% |
2.09% | |||||
|
Ratio
of net investment income to average net assets |
2.77% |
1.91% |
1.63% |
2.11% |
2.24% | |||||
|
Portfolio
turnover rate(d) |
26% |
17% |
34% |
9% |
14% | |||||
|
(a) |
Calculated
based on the average shares outstanding
methodology. |
|
(b) |
Amount
is less than $0.005 per share. |
|
(c) |
Assumes
investment at the net asset value at the beginning of the year,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the year and no sales or redemption charges (if any).
Total returns would be reduced if a sales or redemption charge was taken
into
account. Returns
do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. |
|
(d) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
72
Appendix
B
|
|
Goldman
Sachs International Equity Dividend and Premium
Fund | |||||||||
|
|
Institutional
Shares | |||||||||
|
|
Year
Ended December 31, | |||||||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 | |||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of year |
$7.43 |
$7.01 |
$7.14 |
$6.42 |
$7.62 | |||||
|
Net
investment income(a) |
0.25 |
0.24 |
0.16 |
0.22 |
0.31 | |||||
|
Net
realized and unrealized gain (loss) |
(1.00) |
0.41 |
(0.10) |
0.73 |
(1.29) | |||||
|
Total
from investment operations |
(0.75) |
0.65 |
0.06 |
0.95 |
(0.98) | |||||
|
Distributions
to shareholders from net investment income |
(0.24) |
(0.23) |
(0.19) |
(0.23) |
(0.22) | |||||
|
Distributions
to shareholders from return of capital |
(0.03) |
— |
—(b) |
— |
— | |||||
|
Total
distributions |
(0.27) |
(0.23) |
(0.19) |
(0.23) |
(0.22) | |||||
|
Net
asset value, end of year |
$6.41 |
$7.43 |
$7.01 |
$7.14 |
$6.42 | |||||
|
Total
return(c) |
(9.99)% |
9.38% |
1.18% |
14.82% |
(12.96)% | |||||
|
Net
assets, end of year (in 000s) |
$3,391 |
$4,417 |
$4,897 |
$12,005 |
$15,696 | |||||
|
Ratio
of total expenses to average net assets |
1.21% |
1.04% |
1.10% |
1.06% |
0.95% | |||||
|
Ratio
of net expenses to average net assets |
0.89% |
0.89% |
0.92% |
0.95% |
0.95% | |||||
|
Ratio
of net investment income to average net assets |
3.90% |
3.19% |
2.51% |
3.28% |
4.12% | |||||
|
Portfolio
turnover rate(d) |
26% |
17% |
34% |
9% |
14% | |||||
|
(a) |
Calculated
based on the average shares outstanding
methodology. |
|
(b) |
Amount
is less than $0.005 per share. |
|
(c) |
Assumes
investment at the net asset value at the beginning of the year,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the year and no sales or redemption charges (if any).
Total returns would be reduced if a sales or redemption charge was taken
into
account. Returns
do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. |
|
(d) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
73
|
|
Goldman
Sachs International Equity Dividend and Premium
Fund | |||||||||
|
|
Investor
Shares | |||||||||
|
|
Year
Ended December 31, | |||||||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 | |||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of year |
$7.41 |
$7.00 |
$7.12 |
$6.41 |
$7.60 | |||||
|
Net
investment income(a) |
0.25 |
0.23 |
0.15 |
0.21 |
0.20 | |||||
|
Net
realized and unrealized gain (loss) |
(1.00) |
0.40 |
(0.09) |
0.72 |
(1.18) | |||||
|
Total
from investment operations |
(0.75) |
0.63 |
0.06 |
0.93 |
(0.98) | |||||
|
Distributions
to shareholders from net investment income |
(0.24) |
(0.22) |
(0.18) |
(0.22) |
(0.21) | |||||
|
Distributions
to shareholders from return of capital |
(0.03) |
— |
—(b) |
— |
— | |||||
|
Total
distributions |
(0.27) |
(0.22) |
(0.18) |
(0.22) |
(0.21) | |||||
|
Net
asset value, end of year |
$6.39 |
$7.41 |
$7.00 |
$7.12 |
$6.41 | |||||
|
Total
return(c) |
(10.09)% |
9.15% |
1.20% |
14.71% |
(13.10)% | |||||
|
Net
assets, end of year (in 000s) |
$1,362 |
$5,313 |
$4,288 |
$8,915 |
$8,207 | |||||
|
Ratio
of total expenses to average net assets |
1.33% |
1.14% |
1.23% |
1.19% |
1.14% | |||||
|
Ratio
of net expenses to average net assets |
0.98% |
0.98% |
1.03% |
1.08% |
1.09% | |||||
|
Ratio
of net investment income to average net assets |
3.81% |
3.09% |
2.39% |
3.14% |
2.76% | |||||
|
Portfolio
turnover rate(d) |
26% |
17% |
34% |
9% |
14% | |||||
|
(a) |
Calculated
based on the average shares outstanding
methodology. |
|
(b) |
Amount
is less than $0.005 per share. |
|
(c) |
Assumes
investment at the net asset value at the beginning of the year,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the year and no sales or redemption charges (if any).
Total returns would be reduced if a sales or redemption charge was taken
into
account. Returns
do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. |
|
(d) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
74
Appendix
B
|
|
Goldman
Sachs International Equity Dividend and Premium
Fund | |||||||||
|
|
Class
R6 Shares | |||||||||
|
|
Year
Ended December 31, |
Period
Ended
December
31, 2018(a) | ||||||||
|
|
2022 |
2021 |
2020 |
2019 | ||||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of period |
$7.43 |
$7.01 |
$7.13 |
$6.42 |
$7.60 | |||||
|
Net
investment income(b) |
0.25 |
0.23 |
0.17 |
0.22 |
0.08 | |||||
|
Net
realized and unrealized gain (loss) |
(1.00) |
0.42 |
(0.10) |
0.72 |
(1.07) | |||||
|
Total
from investment operations |
(0.75) |
0.65 |
0.07 |
0.94 |
(0.99) | |||||
|
Distributions
to shareholders from net investment income |
(0.24) |
(0.23) |
(0.19) |
(0.23) |
(0.19) | |||||
|
Distributions
to shareholders from return of capital |
(0.03) |
— |
—(c) |
— |
— | |||||
|
Total
distributions |
(0.27) |
(0.23) |
(0.19) |
(0.23) |
(0.19) | |||||
|
Net
asset value, end of period |
$6.41 |
$7.43 |
$7.01 |
$7.13 |
$6.42 | |||||
|
Total
return(d) |
(9.99)% |
9.38% |
1.34% |
14.85% |
(13.25)% | |||||
|
Net
assets, end of period (in 000s) |
$68,864 |
$91,208 |
$102,041 |
$136,241 |
$125,311 | |||||
|
Ratio
of total expenses to average net assets |
1.20% |
1.02% |
1.10% |
1.05% |
1.03%(e) | |||||
|
Ratio
of net expenses to average net assets |
0.88% |
0.88% |
0.90% |
0.94% |
0.93%(e) | |||||
|
Ratio
of net investment income to average net assets |
3.90% |
3.14% |
2.70% |
3.23% |
1.81%(e) | |||||
|
Portfolio
turnover rate(f) |
26% |
17% |
34% |
9% |
14% | |||||
|
(a) |
Commenced
operations on April 30, 2018. |
|
(b) |
Calculated
based on the average shares outstanding
methodology. |
|
(c) |
Amount
is less than $0.005 per share. |
|
(d) |
Assumes
investment at the net asset value at the beginning of the period,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the period and no sales or redemption charges (if
any). Total returns would be reduced if a sales or redemption charge was
taken into
account.
Returns do not reflect the impact of taxes to shareholders relating to
Fund distributions or the redemption of Fund shares. Total returns for
periods
less
than one full year are not annualized. |
|
(e) |
Annualized. |
|
(f) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
75
|
|
Goldman
Sachs International Tax-Managed Equity
Fund | ||||
|
|
Class A
Shares | ||||
|
|
Year
Ended December 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Per
Share Data | |||||
|
Net
asset value, beginning of year |
$12.28 |
$11.32 |
$10.43 |
$8.93 |
$10.93 |
|
Net
investment income(a) |
0.29 |
0.28 |
0.10 |
0.18 |
0.18 |
|
Net
realized and unrealized gain (loss) |
(2.18) |
1.07 |
0.92 |
1.49 |
(2.03) |
|
Total
from investment operations |
(1.89) |
1.35 |
1.02 |
1.67 |
(1.85) |
|
Distributions
to shareholders from net investment income |
(0.32) |
(0.39) |
(0.13) |
(0.17) |
(0.15) |
|
Net
asset value, end of year |
$10.07 |
$12.28 |
$11.32 |
$10.43 |
$8.93 |
|
Total
return(b) |
(15.36)% |
12.02% |
9.75% |
18.66% |
(16.86)% |
|
Net
assets, end of year (in 000’s) |
$5,139 |
$7,235 |
$6,662 |
$8,419 |
$8,145 |
|
Ratio
of net expenses to average net assets |
1.22% |
1.22% |
1.23% |
1.25% |
1.29% |
|
Ratio
of total expenses to average net assets |
1.32% |
1.33% |
1.36% |
1.37% |
1.37% |
|
Ratio
of net investment income to average net assets |
2.74% |
2.33% |
1.07% |
1.81% |
1.69% |
|
Portfolio
turnover rate(c) |
226% |
162% |
177% |
231% |
177% |
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Assumes
investment at the NAV at the beginning of the year, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the year and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares.
(c)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
76
Appendix
B
|
|
Goldman
Sachs International Tax-Managed Equity
Fund | ||||
|
|
Class C
Shares | ||||
|
|
Year
Ended December 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Per
Share Data | |||||
|
Net
asset value, beginning of year |
$12.03 |
$11.04 |
$10.18 |
$8.68 |
$10.59 |
|
Net
investment income(a) |
0.21 |
0.20 |
0.03 |
0.12 |
0.10 |
|
Net
realized and unrealized gain (loss) |
(2.13) |
1.03 |
0.88 |
1.42 |
(1.94) |
|
Total
from investment operations |
(1.92) |
1.23 |
0.91 |
1.54 |
(1.84) |
|
Distributions
to shareholders from net investment income |
(0.24) |
(0.24) |
(0.05) |
(0.04) |
(0.07) |
|
Net
asset value, end of year |
$9.87 |
$12.03 |
$11.04 |
$10.18 |
$8.68 |
|
Total
return(b) |
(15.96)% |
11.19% |
8.89% |
17.74% |
(17.39)% |
|
Net
assets, end of year (in 000’s) |
$728 |
$1,009 |
$1,060 |
$1,308 |
$2,551 |
|
Ratio
of net expenses to average net assets |
1.97% |
1.96% |
1.98% |
2.01% |
2.04% |
|
Ratio
of total expenses to average net assets |
2.07% |
2.07% |
2.11% |
2.12% |
2.12% |
|
Ratio
of net investment income to average net assets |
2.01% |
1.59% |
0.33% |
1.25% |
1.01% |
|
Portfolio
turnover rate(c) |
226% |
162% |
177% |
231% |
177% |
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Assumes
investment at the NAV at the beginning of the year, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the year and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares.
(c)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
77
|
|
Goldman
Sachs International Tax-Managed Equity
Fund | ||||
|
|
Institutional
Shares | ||||
|
|
Year
Ended December 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Per
Share Data | |||||
|
Net
asset value, beginning of year |
$12.31 |
$11.29 |
$10.40 |
$8.91 |
$10.85 |
|
Net
investment income(a) |
0.32 |
0.32 |
0.13 |
0.21 |
0.31 |
|
Net
realized and unrealized gain (loss) |
(2.17) |
1.07 |
0.92 |
1.48 |
(2.10) |
|
Total
from investment operations |
(1.85) |
1.39 |
1.05 |
1.69 |
(1.79) |
|
Distributions
to shareholders from net investment income |
(0.36) |
(0.37) |
(0.16) |
(0.20) |
(0.15) |
|
Net
asset value, end of year |
$10.10 |
$12.31 |
$11.29 |
$10.40 |
$8.91 |
|
Total
return(b) |
(15.02)% |
12.42% |
10.11% |
19.01% |
(16.49)% |
|
Net
assets, end of year (in 000’s) |
$9,934 |
$11,247 |
$9,998 |
$15,783 |
$16,948 |
|
Ratio
of net expenses to average net assets |
0.90% |
0.90% |
0.90% |
0.90% |
0.90% |
|
Ratio
of total expenses to average net assets |
0.95% |
0.96% |
0.99% |
0.99% |
0.96% |
|
Ratio
of net investment income to average net assets |
3.01% |
2.65% |
1.36% |
2.11% |
2.87% |
|
Portfolio
turnover rate(c) |
226% |
162% |
177% |
231% |
177% |
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Assumes
investment at the NAV at the beginning of the year, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the year and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares.
(c)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
78
Appendix
B
|
|
Goldman
Sachs International Tax-Managed Equity
Fund | ||||
|
|
Investor
Shares(a) | ||||
|
|
Year
Ended December 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Per
Share Data | |||||
|
Net
asset value, beginning of year |
$12.32 |
$11.30 |
$10.40 |
$8.91 |
$10.91 |
|
Net
investment income(b) |
0.32 |
0.31 |
0.13 |
0.20 |
0.19 |
|
Net
realized and unrealized gain (loss) |
(2.19) |
1.07 |
0.92 |
1.48 |
(2.00) |
|
Total
from investment operations |
(1.87) |
1.38 |
1.05 |
1.68 |
(1.81) |
|
Distributions
to shareholders from net investment income |
(0.35) |
(0.36) |
(0.15) |
(0.19) |
(0.19) |
|
Net
asset value, end of year |
$10.10 |
$12.32 |
$11.30 |
$10.40 |
$8.91 |
|
Total
return(c) |
(15.15)% |
12.31% |
10.09% |
18.90% |
(16.66)% |
|
Net
assets, end of year (in 000’s) |
$8,699 |
$7,290 |
$9,085 |
$18,290 |
$14,008 |
|
Ratio
of net expenses to average net assets |
0.97% |
0.97% |
0.98% |
1.00% |
1.04% |
|
Ratio
of total expenses to average net assets |
1.08% |
1.08% |
1.11% |
1.12% |
1.12% |
|
Ratio
of net investment income to average net assets |
3.08% |
1.38% |
2.06% |
1.82% |
1.30% |
|
Portfolio
turnover rate(d) |
226% |
177% |
231% |
177% |
134% |
(a)
Effective
August 15, 2017, Class IR changed its name to Investor Shares.
(b)
Calculated
based on the average shares outstanding methodology.
(c)
Assumes
investment at the NAV at the beginning of the year, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the year and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares.
(d)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
79
|
|
Goldman
Sachs International Tax-Managed
Equity Fund | ||||
|
|
Class R6
Shares | ||||
|
|
Year
Ended December 31, |
April 30, 2018*
to
December 31, 2018 | |||
|
|
2022 |
2021 |
2020 |
2019 | |
|
Per
Share Data | |||||
|
Net
asset value, beginning of period |
$12.23 |
$11.22 |
$10.33 |
$8.85 |
$10.92 |
|
Net
investment income(a) |
0.32 |
0.32 |
0.14 |
0.21 |
0.08 |
|
Net
realized and unrealized gain (loss) |
(2.17) |
1.06 |
0.92 |
1.47 |
(1.95) |
|
Total
from investment operations |
(1.85) |
1.38 |
1.06 |
1.68 |
(1.87) |
|
Distributions
to shareholders from net investment income |
(0.36) |
(0.37) |
(0.17) |
(0.20) |
(0.20) |
|
Net
asset value, end of period |
$10.02 |
$12.23 |
$11.22 |
$10.33 |
$8.85 |
|
Total
return(b) |
(15.11)% |
12.43% |
10.20% |
19.05% |
(17.07)% |
|
Net
assets, end of period (in 000’s) |
$630,799 |
$730,126 |
$640,212 |
$660,555 |
$530,891 |
|
Ratio
of net expenses to average net assets |
0.89% |
0.89% |
0.89% |
0.89% |
0.89%(d) |
|
Ratio
of total expenses to average net assets |
0.94% |
0.95% |
0.97% |
0.98% |
0.99%(d) |
|
Ratio
of net investment income to average net assets |
3.06% |
2.66% |
1.42% |
2.12% |
1.14%(d) |
|
Portfolio
turnover rate(d) |
226% |
162% |
177% |
231% |
177% |
(a)
Commenced
operations on April 30, 2018.
(b)
Calculated
based on the average shares outstanding methodology.
(c)
Assumes
investment at the NAV at the beginning of the period, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the period and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. Total returns for periods less
than one full year are not annualized.
(d)
Annualized.
(e)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
80
Appendix
B
|
|
Goldman
Sachs U.S. Tax-Managed Equity Fund | ||||
|
|
Class A
Shares | ||||
|
|
Year
Ended December 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Per
Share Data | |||||
|
Net
asset value, beginning of year |
$38.29 |
$29.78 |
$25.54 |
$20.43 |
$22.37 |
|
Net
investment income(a) |
0.10 |
0.05 |
0.06 |
0.11 |
0.10 |
|
Net
realized and unrealized gain (loss) |
(7.95) |
8.52 |
4.31 |
5.09 |
(1.93) |
|
Total
from investment operations |
(7.85) |
8.57 |
4.37 |
5.20 |
(1.83) |
|
Distributions
to shareholders from net investment income |
(0.12) |
(0.06) |
(0.09) |
(0.09) |
(0.11) |
|
Distributions
to shareholders from return of capital |
— |
— |
(0.04) |
— |
— |
|
Total
distributions |
(0.12) |
(0.06) |
(0.13) |
(0.09) |
(0.11) |
|
Net
asset value, end of year |
$30.32 |
$38.29 |
$29.78 |
$25.54 |
$20.43 |
|
Total
return(b) |
(20.51)% |
28.80% |
17.06% |
25.48% |
(8.15)% |
|
Net
assets, end of year (in 000’s) |
$90,164 |
$111,821 |
$75,584 |
$68,427 |
$57,833 |
|
Ratio
of net expenses to average net assets |
1.03% |
1.06% |
1.08% |
1.10% |
1.14% |
|
Ratio
of total expenses to average net assets |
1.10% |
1.11% |
1.12% |
1.13% |
1.14% |
|
Ratio
of net investment income to average net assets |
0.29% |
0.16% |
0.24% |
0.47% |
0.44% |
|
Portfolio
turnover rate(c) |
246% |
116% |
177% |
205% |
152% |
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Assumes
investment at the NAV at the beginning of the year, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the year and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares.
(c)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
81
|
|
Goldman
Sachs U.S. Tax-Managed Equity Fund | ||||
|
|
Class C
Shares | ||||
|
|
Year
Ended December 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Per
Share Data | |||||
|
Net
asset value, beginning of year |
$35.84 |
$28.04 |
$24.11 |
$19.36 |
$21.24 |
|
Net
investment loss(a) |
(0.14) |
(0.19) |
(0.13) |
(0.06) |
(0.07) |
|
Net
realized and unrealized gain (loss) |
(7.43) |
7.99 |
4.06 |
4.81 |
(1.81) |
|
Total
from investment operations |
(7.57) |
7.80 |
3.93 |
4.75 |
(1.88) |
|
Net
asset value, end of year |
$28.27 |
$35.84 |
$28.04 |
$24.11 |
$19.36 |
|
Total
return(b) |
(21.12)% |
27.82% |
16.25% |
24.54% |
(8.85)% |
|
Net
assets, end of year (in 000s) |
$16,096 |
$21,720 |
$19,502 |
$18,341 |
$14,380 |
|
Ratio
of net expenses to average net assets |
1.78% |
1.81% |
1.83% |
1.85% |
1.88% |
|
Ratio
of total expenses to average net assets |
1.85% |
1.86% |
1.87% |
1.88% |
1.89% |
|
Ratio
of net investment loss to average net assets |
(0.46)% |
(0.59)% |
(0.53)% |
(0.28)% |
(0.33)% |
|
Portfolio
turnover rate(c) |
246% |
116% |
177% |
205% |
152% |
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Assumes
investment at the NAV at the beginning of the year, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the year and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares.
(c)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
82
Appendix
B
|
|
Goldman
Sachs U.S. Tax-Managed Equity Fund | ||||
|
|
Institutional
Shares | ||||
|
|
Year
Ended December 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Per
Share Data | |||||
|
Net
asset value, beginning of year |
$39.28 |
$30.53 |
$26.16 |
$20.91 |
$22.71 |
|
Net
investment income(a) |
0.21 |
0.17 |
0.15 |
0.20 |
0.19 |
|
Net
realized and unrealized gain (loss) |
(8.17) |
8.74 |
4.43 |
5.23 |
(1.97) |
|
Total
from investment operations |
(7.96) |
8.91 |
4.58 |
5.43 |
(1.78) |
|
Distributions
to shareholders from net investment income |
(0.22) |
(0.16) |
(0.17) |
(0.18) |
(0.02) |
|
Distributions
to shareholders from return of capital |
— |
— |
(0.04) |
— |
— |
|
Total
distributions |
(0.22) |
(0.16) |
(0.21) |
(0.18) |
(0.02) |
|
Net
asset value, end of year |
$31.10 |
$39.28 |
$30.53 |
$26.16 |
$20.91 |
|
Total
return(b) |
(20.26)% |
29.23% |
17.48% |
25.90% |
(7.78)% |
|
Net
assets, end of year (in 000s) |
$60,342 |
$56,035 |
$47,997 |
$45,718 |
$34,812 |
|
Ratio
of net expenses to average net assets |
0.70% |
0.74% |
0.74% |
0.74% |
0.74% |
|
Ratio
of total expenses to average net assets |
0.72% |
0.75% |
0.75% |
0.75% |
0.74% |
|
Ratio
of net investment income to average net assets |
0.64% |
0.48% |
0.56% |
0.83% |
0.79% |
|
Portfolio
turnover rate(c) |
246% |
116% |
177% |
205% |
152% |
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Assumes
investment at the NAV at the beginning of the year, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the year and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares.
(c)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
83
|
|
Goldman
Sachs U.S. Tax-Managed Equity Fund | ||||
|
|
Service
Shares | ||||
|
|
Year
Ended December 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Per
Share Data | |||||
|
Net
asset value, beginning of year |
$38.52 |
$29.96 |
$25.70 |
$20.57 |
$22.51 |
|
Net
investment income(a) |
0.04 |
—(b) |
0.02 |
0.08 |
0.08 |
|
Net
realized and unrealized gain (loss) |
(7.99) |
8.56 |
4.33 |
5.13 |
(1.94) |
|
Total
from investment operations |
(7.95) |
8.56 |
4.35 |
5.21 |
(1.86) |
|
Distributions
to shareholders from net investment income |
(0.09) |
—(b) |
(0.05) |
(0.08) |
(0.08) |
|
Distributions
to shareholders from return of capital |
— |
— |
(0.04) |
— |
— |
|
Total
distributions |
(0.09) |
—(b) |
(0.09) |
(0.08) |
(0.08) |
|
Net
asset value, end of year |
$30.48 |
$38.52 |
$29.96 |
$25.70 |
$20.57 |
|
Total
return(b) |
(20.65)% |
28.58% |
16.87% |
25.31% |
(8.26)% |
|
Net
assets, end of year (in 000s) |
$2,568 |
$2,476 |
$1,932 |
$1,649 |
$732 |
|
Ratio
of net expenses to average net assets |
1.22% |
1.23% |
1.24% |
1.24% |
1.25% |
|
Ratio
of total expenses to average net assets |
1.25% |
1.24% |
1.25% |
1.25% |
1.25% |
|
Ratio
of net investment income to average net assets |
0.13% |
0.01% |
0.08% |
0.33% |
0.33% |
|
Portfolio
turnover rate(c) |
246% |
116% |
177% |
205% |
152% |
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Amount
is less than $0.005 per share.
(c)
Assumes
investment at the NAV at the beginning of the year, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the year and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares.
(d)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
84
Appendix
B
|
|
Goldman
Sachs U.S. Tax-Managed Equity Fund | ||||
|
|
Investor
Shares(a) | ||||
|
|
Year
Ended December 31, | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Per
Share Data | |||||
|
Net
asset value, beginning of year |
$38.93 |
$30.26 |
$25.93 |
$20.73 |
$22.70 |
|
Net
investment income(b) |
0.18 |
0.14 |
0.12 |
0.17 |
0.16 |
|
Net
realized and unrealized gain (loss) |
(8.09) |
8.67 |
4.40 |
5.18 |
(1.97) |
|
Total
from investment operations |
(7.91) |
8.81 |
4.52 |
5.35 |
(1.81) |
|
Distributions
to shareholders from net investment income |
(0.19) |
(0.14) |
(0.15) |
(0.15) |
(0.16) |
|
Distributions
to shareholders from return of capital |
— |
— |
(0.04) |
— |
— |
|
Total
distributions |
(0.19) |
(0.14) |
(0.19) |
(0.15) |
(0.16) |
|
Net
asset value, end of year |
$30.83 |
$38.93 |
$30.26 |
$25.93 |
$20.73 |
|
Total
return(c) |
(20.31)% |
29.13% |
17.38% |
25.82% |
(7.95)% |
|
Net
assets, end of year (in 000s) |
$15,645 |
$20,599 |
$15,938 |
$21,591 |
$17,894 |
|
Ratio
of net expenses to average net assets |
0.78% |
0.82% |
0.83% |
0.85% |
0.89% |
|
Ratio
of total expenses to average net assets |
0.85% |
0.87% |
0.87% |
0.88% |
0.89% |
|
Ratio
of net investment income to average net assets |
0.54% |
0.40% |
0.46% |
0.72% |
0.68% |
|
Portfolio
turnover rate(d) |
246% |
116% |
177% |
205% |
152% |
(a)
Calculated
based on the average shares outstanding methodology.
(b)
Assumes
investment at the NAV at the beginning of the year, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the year and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares.
(c)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments
and certain derivatives. If such transactions were included, the Fund’s
portfolio turnover rate may be higher.
85
|
|
Goldman
Sachs U.S. Tax-Managed Equity Fund | ||||
|
|
Class R6
Shares | ||||
|
|
Year
Ended December 31, |
April 30, 2018*
to
December 31, 2018 | |||
|
|
2022 |
2021 |
2020 |
2019 | |
|
Per
Share Data | |||||
|
Net
asset value, beginning of period |
$38.93 |
$30.26 |
$25.93 |
$20.73 |
$22.93 |
|
Net
investment income(a) |
0.21 |
0.17 |
0.15 |
0.20 |
0.13 |
|
Net
realized and unrealized gain (loss) |
(8.10) |
8.67 |
4.40 |
5.18 |
(2.14) |
|
Total
from investment operations |
(7.89) |
8.84 |
4.55 |
5.38 |
(2.01) |
|
Distributions
to shareholders from net investment income |
(0.22) |
(0.17) |
(0.18) |
(0.18) |
(0.19) |
|
Distributions
to shareholders from return of capital |
— |
— |
(0.04) |
— |
— |
|
Total
distributions |
(0.22) |
(0.17) |
(0.22) |
(0.18) |
(0.19) |
|
Net
asset value, end of period |
$30.82 |
$38.93 |
$30.26 |
$25.93 |
$20.73 |
|
Total
return(b) |
(20.26)% |
29.24% |
17.49% |
25.96% |
(8.72)% |
|
Net
assets, end of period (in 000s) |
$1,975,694 |
$2,111,315 |
$1,536,722 |
$1,575,990 |
$1,263,556 |
|
Ratio
of net expenses to average net assets |
0.69% |
0.73% |
0.73% |
0.73% |
0.74%(d) |
|
Ratio
of total expenses to average net assets |
0.72% |
0.74% |
0.74% |
0.74% |
0.74%(d) |
|
Ratio
of net investment income to average net assets |
0.65% |
0.49% |
0.57% |
0.84% |
0.85%(d) |
|
Portfolio
turnover rate(d) |
246% |
116% |
177% |
205% |
152% |
(a)
Commenced
operations on April 30, 2018.
(b)
Calculated
based on the average shares outstanding methodology.
(c)
Assumes
investment at the NAV at the beginning of the period, reinvestment of all
dividends and distributions, a complete redemption of the investment at the NAV
at the end of the period and no sales or redemption charges (if any). Total
returns would be reduced if a sales or redemption charge was taken into account.
Returns do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. Total returns for periods less
than one full year are not annualized.
(d)
Annualized.
(e)
The
Fund’s portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term investments,
in-kind transactions and certain derivatives. If such transactions were
included, the Fund’s portfolio turnover rate may be higher.
86
Appendix
B
|
|
Goldman
Sachs U.S. Equity Dividend and Premium Fund | |||||||||
|
|
Class
A Shares | |||||||||
|
|
Year
Ended December 31, | |||||||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 | |||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of year |
$16.43 |
$14.20 |
$13.38 |
$11.46 |
$13.16 | |||||
|
Net
investment income (a) |
0.17 |
0.15 |
0.18 |
0.21 |
0.21 | |||||
|
Net
realized and unrealized gain (loss) |
(2.59) |
3.01 |
1.61 |
2.57 |
(1.05) | |||||
|
Total
from investment operations |
(2.42) |
3.16 |
1.79 |
2.78 |
(0.84) | |||||
|
Distributions
to shareholders from net investment income |
(0.17) |
(0.15) |
(0.19) |
(0.21) |
(0.22) | |||||
|
Distributions
to shareholders from net realized gains |
(0.72) |
(0.78) |
(0.78) |
(0.65) |
(0.64) | |||||
|
Distributions
to shareholders from return of capital |
— |
— |
—(b) |
— |
— | |||||
|
Total
distributions |
(0.89) |
(0.93) |
(0.97) |
(0.86) |
(0.86) | |||||
|
Net
asset value, end of year |
$13.12 |
$16.43 |
$14.20 |
$13.38 |
$11.46 | |||||
|
Total
return(c) |
(14.84)% |
22.42% |
13.62% |
24.62% |
(6.63)% | |||||
|
Net
assets, end of year (in 000s) |
$151,973 |
$183,895 |
$135,937 |
$195,689 |
$187,524 | |||||
|
Ratio
of total expenses to average net assets |
1.14% |
1.13% |
1.15% |
1.16% |
1.15% | |||||
|
Ratio
of net expenses to average net assets |
1.05% |
1.06% |
1.09% |
1.12% |
1.12% | |||||
|
Ratio
of net investment income to average net assets |
1.18% |
0.97% |
1.41% |
1.65% |
1.61% | |||||
|
Portfolio
turnover rate(d) |
38% |
19% |
39% |
26% |
37% | |||||
|
(a) |
Calculated
based on the average shares outstanding
methodology. |
|
(b) |
Amount
is less than $0.005 per share. |
|
(c) |
Assumes
investment at the net asset value at the beginning of the year,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the year and no sales or redemption charges (if any).
Total returns would be reduced if a sales or redemption charge was taken
into
account. Returns
do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. |
|
(d) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
87
|
|
Goldman
Sachs U.S. Equity Dividend and Premium Fund | |||||||||
|
|
Class
C Shares | |||||||||
|
|
Year
Ended December 31, | |||||||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 | |||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of year |
$16.36 |
$14.14 |
$13.33 |
$11.41 |
$13.11 | |||||
|
Net
investment income(a) |
0.06 |
0.04 |
0.08 |
0.12 |
0.11 | |||||
|
Net
realized and unrealized gain (loss) |
(2.57) |
2.99 |
1.60 |
2.57 |
(1.05) | |||||
|
Total
from investment operations |
(2.51) |
3.03 |
1.68 |
2.69 |
(0.94) | |||||
|
Distributions
to shareholders from net investment income |
(0.06) |
(0.03) |
(0.09) |
(0.12) |
(0.12) | |||||
|
Distributions
to shareholders from net realized gains |
(0.72) |
(0.78) |
(0.78) |
(0.65) |
(0.64) | |||||
|
Distributions
to shareholders from return of capital |
— |
— |
—(b) |
— |
— | |||||
|
Total
distributions |
(0.78) |
(0.81) |
(0.87) |
(0.77) |
(0.76) | |||||
|
Net
asset value, end of year |
$13.07 |
$16.36 |
$14.14 |
$13.33 |
$11.41 | |||||
|
Total
return(c) |
(15.48)% |
21.48% |
12.83% |
23.72% |
(7.38)% | |||||
|
Net
assets, end of year (in 000s) |
$72,831 |
$109,023 |
$118,819 |
$141,029 |
$139,580 | |||||
|
Ratio
of total expenses to average net assets |
1.89% |
1.88% |
1.90% |
1.91% |
1.90% | |||||
|
Ratio
of net expenses to average net assets |
1.80% |
1.81% |
1.84% |
1.87% |
1.87% | |||||
|
Ratio
of net investment income to average net assets |
0.42% |
0.23% |
0.64% |
0.90% |
0.86% | |||||
|
Portfolio
turnover rate(d) |
38% |
19% |
39% |
26% |
37% | |||||
|
(a) |
Calculated
based on the average shares outstanding
methodology. |
|
(b) |
Amount
is less than $0.005 per share. |
|
(c) |
Assumes
investment at the net asset value at the beginning of the year,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the year and no sales or redemption charges (if any).
Total returns would be reduced if a sales or redemption charge was taken
into
account. Returns
do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. |
|
(d) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
88
Appendix
B
|
|
Goldman
Sachs U.S. Equity Dividend and Premium Fund | |||||||||
|
|
Institutional
Shares | |||||||||
|
|
Year
Ended December 31, | |||||||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 | |||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of year |
$16.37 |
$14.16 |
$13.35 |
$11.43 |
$13.13 | |||||
|
Net
investment income(a) |
0.22 |
0.21 |
0.23 |
0.26 |
0.27 | |||||
|
Net
realized and unrealized gain (loss) |
(2.57) |
2.99 |
1.60 |
2.57 |
(1.06) | |||||
|
Total
from investment operations |
(2.35) |
3.20 |
1.83 |
2.83 |
(0.79) | |||||
|
Distributions
to shareholders from net investment income |
(0.22) |
(0.21) |
(0.24) |
(0.26) |
(0.27) | |||||
|
Distributions
to shareholders from net realized gains |
(0.72) |
(0.78) |
(0.78) |
(0.65) |
(0.64) | |||||
|
Distributions
to shareholders from return of capital |
— |
— |
—(b) |
— |
— | |||||
|
Total
distributions |
(0.94) |
(0.99) |
(1.02) |
(0.91) |
(0.91) | |||||
|
Net
asset value, end of year |
$13.08 |
$16.37 |
$14.16 |
$13.35 |
$11.43 | |||||
|
Total
return(c) |
(14.53)% |
22.82% |
14.12% |
25.06% |
(6.28)% | |||||
|
Net
assets, end of year (in 000s) |
$1,122,307 |
$1,329,450 |
$1,252,383 |
$1,242,858 |
$1,106,179 | |||||
|
Ratio
of total expenses to average net assets |
0.77% |
0.76% |
0.78% |
0.77% |
0.76% | |||||
|
Ratio
of net expenses to average net assets |
0.71% |
0.71% |
0.72% |
0.75% |
0.74% | |||||
|
Ratio
of net investment income to average net assets |
1.52% |
1.33% |
1.73% |
2.02% |
2.01% | |||||
|
Portfolio
turnover rate(d) |
38% |
19% |
39% |
26% |
37% | |||||
|
(a) |
Calculated
based on the average shares outstanding
methodology. |
|
(b) |
Amount
is less than $0.005 per share. |
|
(c) |
Assumes
investment at the net asset value at the beginning of the year,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the year and no sales or redemption charges (if any).
Total returns would be reduced if a sales or redemption charge was taken
into
account. Returns
do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. |
|
(d) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
89
|
|
Goldman
Sachs U.S. Equity Dividend and Premium Fund | |||||||||
|
|
Investor
Shares | |||||||||
|
|
Year
Ended December 31, | |||||||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 | |||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of year |
$16.38 |
$14.17 |
$13.36 |
$11.44 |
$13.14 | |||||
|
Net
investment income(a) |
0.21 |
0.19 |
0.21 |
0.25 |
0.25 | |||||
|
Net
realized and unrealized gain (loss) |
(2.57) |
2.99 |
1.60 |
2.57 |
(1.06) | |||||
|
Total
from investment operations |
(2.36) |
3.18 |
1.81 |
2.82 |
(0.81) | |||||
|
Distributions
to shareholders from net investment income |
(0.21) |
(0.19) |
(0.22) |
(0.25) |
(0.25) | |||||
|
Distributions
to shareholders from net realized gains |
(0.72) |
(0.78) |
(0.78) |
(0.65) |
(0.64) | |||||
|
Distributions
to shareholders from return of capital |
— |
— |
—(b) |
— |
— | |||||
|
Total
distributions |
(0.93) |
(0.97) |
(1.00) |
(0.90) |
(0.89) | |||||
|
Net
asset value, end of year |
$13.09 |
$16.38 |
$14.17 |
$13.36 |
$11.44 | |||||
|
Total
return(c) |
(14.60)% |
22.78% |
13.90% |
25.00% |
(6.47)% | |||||
|
Net
assets, end of year (in 000s) |
$409,319 |
$473,054 |
$402,711 |
$468,254 |
$432,136 | |||||
|
Ratio
of total expenses to average net assets |
0.89% |
0.88% |
0.90% |
0.91% |
0.90% | |||||
|
Ratio
of net expenses to average net assets |
0.80% |
0.81% |
0.83% |
0.87% |
0.87% | |||||
|
Ratio
of net investment income to average net assets |
1.44% |
1.23% |
1.64% |
1.90% |
1.86% | |||||
|
Portfolio
turnover rate(d) |
38% |
19% |
39% |
26% |
37% | |||||
|
(a) |
Calculated
based on the average shares outstanding
methodology. |
|
(b) |
Amount
is less than $0.005 per share. |
|
(c) |
Assumes
investment at the net asset value at the beginning of the year,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the year and no sales or redemption charges (if any).
Total returns would be reduced if a sales or redemption charge was taken
into
account. Returns
do not reflect the impact of taxes to shareholders relating to Fund
distributions or the redemption of Fund shares. |
|
(d) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
90
Appendix
B
|
|
Goldman
Sachs U.S. Equity Dividend and Premium Fund | |||||||||
|
|
R6
Shares | |||||||||
|
|
Year
Ended December 31, |
Period
Ended
December
31, 2018(a) | ||||||||
|
|
2022 |
2021 |
2020 |
2019 | ||||||
|
Per
Share Data |
|
|
|
|
| |||||
|
Net
asset value, beginning of period |
$16.36 |
$14.15 |
$13.34 |
$11.42 |
$12.84 | |||||
|
Net
investment income(b) |
0.22 |
0.21 |
0.23 |
0.26 |
0.17 | |||||
|
Net
realized and unrealized gain (loss) |
(2.57) |
2.99 |
1.60 |
2.57 |
(0.75) | |||||
|
Total
from investment operations |
(2.35) |
3.20 |
1.83 |
2.83 |
(0.58) | |||||
|
Distributions
to shareholders from net investment income |
(0.22) |
(0.21) |
(0.24) |
(0.26) |
(0.20) | |||||
|
Distributions
to shareholders from net realized gains |
(0.72) |
(0.78) |
(0.78) |
(0.65) |
(0.64) | |||||
|
Distributions
to shareholders from return of capital |
— |
— |
—(c) |
— |
— | |||||
|
Total
distributions |
(0.94) |
(0.99) |
(1.02) |
(0.91) |
(0.84) | |||||
|
Net
asset value, end of period |
$13.07 |
$16.36 |
$14.15 |
$13.34 |
$11.42 | |||||
|
Total
return(d) |
(14.53)% |
22.85% |
14.13% |
25.09% |
(4.78)% | |||||
|
Net
assets, end of period (in 000s) |
$304,083 |
$336,827 |
$208,584 |
$275,973 |
$252,381 | |||||
|
Ratio
of total expenses to average net assets |
0.76% |
0.75% |
0.77% |
0.76% |
0.76%(e) | |||||
|
Ratio
of net expenses to average net assets |
0.70% |
0.70% |
0.72% |
0.74% |
0.73%(e) | |||||
|
Ratio
of net investment income to average net assets |
1.54% |
1.33% |
1.77% |
2.03% |
1.91%(e) | |||||
|
Portfolio
turnover rate(f) |
38% |
19% |
39% |
26% |
37% | |||||
|
(a) |
Commenced
operations on April 30, 2018. |
|
(b) |
Calculated
based on the average shares outstanding
methodology. |
|
(c) |
Amount
is less than $0.005 per share. |
|
(d) |
Assumes
investment at the net asset value at the beginning of the period,
reinvestment of all distributions, a complete redemption of the investment
at the net
asset
value at the end of the period and no sales or redemption charges (if
any). Total returns would be reduced if a sales or redemption charge was
taken into
account.
Returns do not reflect the impact of taxes to shareholders relating to
Fund distributions or the redemption of Fund shares. Total returns for
periods
less
than one full year are not annualized. |
|
(e) |
Annualized. |
|
(f) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short term
investments
and
certain derivatives. If such transactions were included, the Fund's
portfolio turnover rate may be
higher. |
91
Appendix
C
Additional
Information About Sales Charge Variations, Waivers and
Discounts
The
availability of certain sales charge variations, waivers and discounts will
depend on whether you purchase your shares directly from the Fund or through an
Intermediary. Intermediaries may impose different sales charges and have unique
policies and procedures regarding the availability of sales charge waivers
and/or discounts (including based on account type), which differ from those
described in the Prospectus and are disclosed below. All sales charges and sales
charge variations, waivers and discounts available to investors, other than
those set forth below, are described in the Prospectus. To the extent an
Intermediary notifies the Investment Adviser or Distributor of its intention to
impose sales charges or have sales charge waivers and/or discounts that differ
from those described in the Prospectus, such information provided by that
Intermediary will be disclosed in this Appendix.
In
all instances, it is your responsibility to notify your Intermediary at the time
of purchase of any relationship or other facts qualifying you for sales charge
waivers or discounts. Please contact your Intermediary with questions regarding
your eligibility for applicable sales charge variations, waivers and discounts
or for additional information regarding your Intermediary’s policies for
implementing particular sales charge variations, waivers and discounts. For
waivers and discounts not available through a particular Intermediary,
shareholders will have to purchase shares directly from the Fund or through
another Intermediary to receive these waivers or discounts.
In addition
to different sales charge variations, waivers and discounts, Intermediaries may
have different share class exchange privileges that vary from those described in
the Prospectus. You should contact your Intermediary to understand the exchange
privileges available to you.
The
information provided below for a particular Intermediary is reproduced based on
information provided by that Intermediary. An Intermediary’s administration and
implementation of its particular policies with respect to any variations,
waivers and/or discounts is neither supervised nor verified by the Funds, the
Investment Adviser or the Distributor.
|
MERRILL
LYNCH |
Shareholders
purchasing Fund shares through a Merrill Lynch platform or account will be
eligible only for the following load waivers (front-end sales charge waivers and
contingent deferred, or back-end, sales charge waivers) and discounts, which may
differ from those disclosed elsewhere in this Fund’s prospectus or
SAI.
Front-End Sales Load
Waivers on Class A Shares Available at Merrill Lynch
◼
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan
◼
Shares
purchased by a 529 Plan (does not include 529 Plan units or 529-specific share
classes or equivalents)
◼
Shares
purchased through a Merrill Lynch affiliated investment advisory
program
◼
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment
advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to
Merrill Lynch’s policies relating to sales load discounts and
waivers
◼
Shares
purchased by third party investment advisors on behalf of their advisory clients
through Merrill Lynch’s platform
◼
Shares of
funds purchased through the Merrill Edge Self-Directed platform (if
applicable)
◼
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family)
◼
Shares
exchanged from Class C (i.e., level-load) shares of the same fund pursuant to
Merrill Lynch’s policies relating to sales load discounts and
waivers
◼
Employees
and registered representatives of Merrill Lynch or its affiliates and their
family members
◼
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any
of its affiliates, as described in the prospectus
◼
Eligible
shares purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (known as Rights of
Reinstatement). Automated transactions (i.e. systematic purchases and
withdrawals) and purchases made after shares are automatically sold to pay
Merrill Lynch’s account maintenance fees are not eligible for
reinstatement
CDSC Waivers on Class
A and Class C Shares Available at Merrill Lynch
◼
Death or
disability of the shareholder
92
Appendix
C
◼
Shares sold
as part of a systematic withdrawal plan as described in the Fund’s
prospectus
◼
Return of
excess contributions from an IRA Account
◼
Shares sold
as part of a required minimum distribution for IRA and retirement accounts
pursuant to the Internal Revenue Code
◼
Shares sold
to pay Merrill Lynch fees but only if the transaction is initiated by Merrill
Lynch
◼
Shares
acquired through a right of reinstatement
◼
Shares held
in retirement brokerage accounts, that are exchanged for a lower cost share
class due to transfer to certain fee based accounts or platforms (applicable to
A and C shares only)
◼
Shares
received through an exchange due to the holdings moving from a Merrill Lynch
affiliated investment advisory program to a Merrill Lynch brokerage
(non-advisory) account pursuant to Merrill Lynch’s policies relating to sales
load discounts and waivers
Front-End Load
Discounts Available at Merrill Lynch: Rights of Accumulation & Letters of
Intent
◼
Breakpoints
as described in this prospectus
◼
Rights of
Accumulation (ROA) which entitle shareholders to breakpoint discounts as
described in the Fund’s prospectus will be automatically calculated based on the
aggregated holding of fund family assets held by accounts (including 529 program
holdings, where applicable) within the purchaser’s household at Merrill Lynch.
Eligible fund family assets not held at Merrill Lynch may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor about
such assets
◼
Letters of
Intent (LOI) which allow for breakpoint discounts based on anticipated purchases
within a fund family, through Merrill Lynch, over a 13-month period of time (if
applicable)
|
AMERIPRISE
FINANCIAL |
The
following information applies to Class A shares purchases if you have an account
with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise Financial retail brokerage account
are eligible for the following front-end sales charge waivers, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI:
Front-End Sales
Charge Waivers on Class A Shares Available at Ameriprise Financial
◼
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
◼
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same Fund (but not any other fund
within the same fund family).
◼
Shares
exchanged from Class C shares of the same fund in the month of or following the
7-year anniversary of the purchase date. To the extent that this prospectus
elsewhere provides for a waiver with respect to exchanges of Class C shares or
conversion of Class C shares following a shorter holding period, that waiver
will apply.
◼
Employees
and registered representatives of Ameriprise Financial or its affiliates and
their immediate family members.
◼
Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education
Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit
plans) that are held by a covered family member, defined as an Ameriprise
financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant
(mother, father, grandmother, grandfather, great grandmother, great
grandfather), advisor’s lineal descendant (son, step-son, daughter,
step-daughter, grandson, granddaughter, great grandson, great granddaughter) or
any spouse of a covered family member who is a lineal descendant.
◼
Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (i.e. Rights of
Reinstatement).
|
MORGAN
STANLEY WEALTH MANAGEMENT |
Effective
July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible only for the
following front-end sales charge waivers with respect to Class A shares, which
may differ from and may be more limited than those disclosed elsewhere in this
Fund’s Prospectus or SAI.
Front-End Sales
Charge Waivers on Class A Shares Available at Morgan Stanley Wealth
Management
◼
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
◼
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s
account linking rules
93
◼
Shares
purchased through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund
◼
Shares
purchased through a Morgan Stanley self-directed brokerage account
◼
Class C
(i.e., level-load) shares that are no longer subject to a contingent deferred
sales charge and are converted to Class A shares of the same fund pursuant to
Morgan Stanley Wealth Management’s share class conversion program
◼
Shares
purchased from the proceeds of redemptions within the same fund family, provided
(i) the repurchase occurs within 90 days following the redemption, (ii) the
redemption and purchase occur in the same account, and (iii) redeemed shares
were subject to a front-end or deferred sales charge.
|
RAYMOND
JAMES & ASSOCIATES, INC., RAYMOND JAMES FINANCIAL SERVICES, INC. AND
EACH ENTITY’S AFFILIATES
(“RAYMOND
JAMES”) |
Effective
March 1, 2019, shareholders purchasing Fund shares through a Raymond James
platform or account, or through an introducing broker-dealer or independent
registered investment adviser for which Raymond James provides trade execution,
clearance, and/or custody services, will be eligible only for the following load
waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed
elsewhere in this Fund’s Prospectus or SAI.
Front-End Sales Load
Waivers on Class A Shares Available at Raymond James
◼
Shares
purchased in an investment advisory program.
◼
Shares
purchased within the same fund family through a systematic reinvestment of
capital gains and dividend distributions.
◼
Employees
and registered representatives of Raymond James or its affiliates and their
family members as designated by Raymond James.
◼
Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of
Reinstatement).
◼
A
Shareholder in the Fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of Raymond James.
CDSC Waivers on Class
A and Class C Shares Available at Raymond James
◼
Death or
disability of the shareholder.
◼
Shares sold
as part of a systematic withdrawal plan as described in the Fund’s
Prospectus.
◼
Return of
excess contributions from an IRA Account.
◼
Shares sold
as part of a required minimum distribution for IRA and retirement accounts due
to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the Fund’s Prospectus.
◼
Shares sold
to pay Raymond James fees but only if the transaction is initiated by Raymond
James.
◼
Shares
acquired through a Right of Reinstatement.
Front-End Load
Discounts Available at Raymond James: Breakpoints, Rights of Accumulation,
and/or Letters of Intent
◼
Breakpoints
as described in this Prospectus.
◼
Rights of
accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Raymond James. Eligible
fund family assets not held at Raymond James may be included in the calculation
of rights of accumulation only if the shareholder notifies his or her financial
advisor about such assets.
◼
Letters of
intent which allow for breakpoint discounts based on anticipated purchases
within a fund family, over a 13-month time period. Eligible fund family assets
not held at Raymond James may be included in the calculation of letters of
intent only if the shareholder notifies his or her financial advisor about such
assets.
|
JANNEY
MONTGOMERY SCOTT LLC |
Effective
May 1, 2020, if you purchase Fund shares through a Janney Montgomery Scott LLC
(“Janney”) brokerage account, you will be eligible for the following load
waivers (front-end sales charge waivers and contingent deferred sales charge
(“CDSC”), or back-end sales charge, waivers) and discounts, which may differ
from those disclosed elsewhere in the Funds' Prospectus or SAI.
Front-End Sales
Charge* Waivers on Class A Shares Available at Janney
◼
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
◼
Shares
purchased by employees and registered representatives of Janney or its
affiliates and their family members as designated by Janney.
94
Appendix
C
◼
Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within ninety (90) days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (i.e., right of
reinstatement).
◼
Employer-sponsored
retirement plans (e.g., 401(k)
plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money
purchase pension plans and defined benefit plans). For purposes of this
provision, employer-sponsored retirement plans do not include SEP IRAs, Simple
IRAs, SAR-SEPs or Keogh plans.
◼
Shares
acquired through a right of reinstatement.
◼
Class C
Shares that are no longer subject to a contingent deferred sales charge and are
converted to Class A Shares of the same fund pursuant to Janney’s policies and
procedures.
CDSC Waivers on Class
A and C Shares Available at Janney
◼
Shares sold
upon the death or disability of the shareholder.
◼
Shares sold
as part of a systematic withdrawal plan as described in the Funds'
Prospectus.
◼
Shares
purchased in connection with a return of excess contributions from an IRA
account.
◼
Shares sold
as part of a required minimum distribution for IRA and other retirement accounts
due to the shareholder reaching age 70˝ as described in the Funds'
Prospectus.
◼
Shares sold
to pay Janney fees but only if the transaction is initiated by
Janney.
◼
Shares
acquired through a right of reinstatement.
◼
Shares
exchanged into the same share class of a different fund.
Front-End Sales
Charge* Discounts Available at Janney: Breakpoints, Rights of Accumulation,
and/or Letters of Intent
◼
Breakpoints
as described in the Funds' Prospectus.
◼
Rights of
accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will
be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Janney. Eligible
fund family assets not held at Janney may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such
assets.
◼
Letters of
intent which allow for breakpoint discounts based on anticipated purchases
within a fund family, over a 13-month time period. Eligible fund family assets
not held at Janney may be included in the calculation of letters of intent only
if the shareholder notifies his or her financial advisor about such
assets.
*
Also
referred to as an “initial sales charge.”
|
EDWARD
D. JONES & CO., L.P. (“Edward
Jones”) |
Policies Regarding
Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
Effective
on or after March 1, 2021, the following information supersedes prior
information with respect to transactions and positions held in fund shares
through an Edward Jones system. Clients of Edward Jones (also referred to as
“shareholders”) purchasing fund shares on the Edward Jones commission and
fee-based platforms are eligible only for the following sales charge discounts
(also referred to as “breakpoints”) and waivers, which can differ from discounts
and waivers described elsewhere in the mutual fund prospectus or statement of
additional information (“SAI”) or through another broker-dealer. In all
instances, it is the shareholder’s responsibility to inform Edward Jones at the
time of purchase of any relationship, holdings of Goldman Sachs Funds, or other
facts qualifying the purchaser for discounts or waivers. Edward Jones can ask
for documentation of such circumstance. Shareholders should contact Edward Jones
if they have questions regarding their eligibility for these discounts and
waivers.
Breakpoints
◼
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in
the prospectus.
Rights of
Accumulation (“ROA”)
◼
The
applicable sales charge on a purchase of Class A Shares is determined by taking
into account all share classes (except certain money market funds and any assets
held in group retirement plans) of Goldman Sachs Funds held by the shareholder
or in an account grouped by Edward Jones with other accounts for the purpose of
providing certain pricing considerations (“pricing groups”). If grouping assets
as a shareholder, this includes all share classes held on the Edward Jones
platform and/or held on another platform. The inclusion of eligible fund family
assets in the ROA calculation is dependent on the shareholder notifying Edward
Jones of such assets at the time of calculation. Money market funds are included
only if such shares were sold with a sales charge at the time of purchase or
acquired in exchange for shares purchased with a sales charge.
95
◼
The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping as opposed to including all share classes at a shareholder
or pricing group level.
◼
ROA is
determined by calculating the higher of cost minus redemptions or market value
(current shares x NAV).
Letter of Intent
(“LOI”)
◼
Through a
LOI, shareholders can receive the sales charge and breakpoint discounts for
purchases shareholders intend to make over a 13-month period from the date
Edward Jones receives the LOI. The LOI is determined by calculating the higher
of cost or market value of qualifying holdings at LOI initiation in combination
with the value that the shareholder intends to buy over a 13-month period to
calculate the front-end sales charge and any breakpoint discounts. Each purchase
the shareholder makes during that 13-month period will receive the sales charge
and breakpoint discount that applies to the total amount. The inclusion of
eligible fund family assets in the LOI calculation is dependent on the
shareholder notifying Edward Jones of such assets at the time of calculation.
Purchases made before the LOI is received by Edward Jones are not adjusted under
the LOI and will not reduce the sales charge previously paid. Sales charges will
be adjusted if LOI is not met.
◼
If the
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping, LOIs will also be at the plan-level and may only be
established by the employer.
Sales Charge
Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◼
Associates
of Edward Jones and its affiliates and their family members who are in the same
pricing group (as determined by Edward Jones under its policies and procedures)
as the associate. This waiver will continue for the remainder of the associate’s
life if the associate retires from Edward Jones in good-standing and remains in
good standing pursuant to Edward Jones’ policies and procedures.
◼
Shares
purchased in an Edward Jones fee-based program.
◼
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment.
◼
Shares
purchased from the proceeds of redeemed shares of the same fund family so long
as the following conditions are met: 1) the proceeds are from the sale of shares
within 60 days of the purchase, and 2) the sale and purchase are made in the
same share class and the same account or the purchase is made in an individual
retirement account with proceeds from liquidations in a non-retirement
account.
◼
Shares
exchanged into Class A Shares from another share class so long as the exchange
is into the same fund and was initiated at the discretion of Edward Jones.
Edward Jones is responsible for any remaining CDSC due to the fund company, if
applicable. Any future purchases are subject to the applicable sales charge as
disclosed in the prospectus.
◼
Exchanges
from Class C Shares to Class A Shares of the same fund, generally, in the 84th
month following the anniversary of the purchase date or earlier at the
discretion of Edward Jones.
Contingent Deferred
Sales Charge (“CDSC”) Waivers
If the
shareholder purchases shares that are subject to a CDSC and those shares are
redeemed before the CDSC is expired, the shareholder is responsible to pay the
CDSC except in the following conditions:
◼
The death
or disability of the shareholder.
◼
Systematic
withdrawals with up to 10% per year of the account value.
◼
Return of
excess contributions from an Individual Retirement Account (IRA).
◼
Shares sold
as part of a required minimum distribution for IRA and retirement accounts if
the redemption is taken in or after the year the shareholder reaches qualified
age based on applicable IRS regulations.
◼
Shares sold
to pay Edward Jones fees or costs in such cases where the transaction is
initiated by Edward Jones.
◼
Shares
exchanged in an Edward Jones fee-based program.
◼
Shares
acquired through NAV reinstatement.
◼
Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described
below.
Other Important
Information Regarding Transactions Through Edward Jones
Minimum Purchase
Amounts
◼
Initial
purchase minimum: $250
◼
Subsequent
purchase minimum: none
Minimum
Balances
◼
Edward
Jones has the right to redeem at its discretion fund holdings with a balance of
$250 or less. The following are examples of accounts that are not included in
this policy:
◼
A fee-based
account held on an Edward Jones platform
96
Appendix
C
◼
A 529
account held on an Edward Jones platform
◼
An account
with an active systematic investment plan or letter of intent (LOI)
Exchanging Share
Classes
◼
At any time
it deems necessary, Edward Jones has the authority to change a share class to
Class A shares of the same fund at NAV.
|
OPPENHEIMER
& CO. INC. |
Effective
May 1, 2020, shareholders purchasing Fund shares through an Oppenheimer &
Co. Inc. (“OPCO”) platform or account are eligible only for the following load
waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed
elsewhere in this Fund’s prospectus or SAI.
Front-end Sales Load
Waivers on Class A Shares available at OPCO
◼
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan
◼
Shares
purchased by or through a 529 Plan
◼
Shares
purchased through a OPCO affiliated investment advisory program
◼
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family)
◼
Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of
Restatement).
◼
A
shareholder in the Fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of OPCO
◼
Employees
and registered representatives of OPCO or its affiliates and their family
members
◼
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any
of its affiliates, as described in this prospectus
CDSC Waivers on Class
A and C Shares available at OPCO
◼
Death or
disability of the shareholder
◼
Shares sold
as part of a systematic withdrawal plan as described in the Fund’s
prospectus
◼
Return of
excess contributions from an IRA Account
◼
Shares sold
as part of a required minimum distribution for IRA and retirement accounts due
to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the prospectus
◼
Shares sold
to pay OPCO fees but only if the transaction is initiated by OPCO
◼
Shares
acquired through a right of reinstatement
Front-end load
Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters
of Intent
◼
Breakpoints
as described in this prospectus.
◼
Rights of
Accumulation (ROA) which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at OPCO. Eligible fund family
assets not held at OPCO may be included in the ROA calculation only if the
shareholder notifies his or her financial advisor about such assets.
|
ROBERT
W. BAIRD & CO. (“BAIRD”) |
Effective
June 15, 2020, shareholders purchasing Fund shares through a Baird platform or
account will only be eligible for the following sales charge waivers (front-end
sales charge waivers and CDSC waivers) and discounts, which may differ from
those disclosed elsewhere in this prospectus or the SAI
Front-End Sales
Charge Waivers on Class A Shares Available at Baird
◼
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing share of the same fund
◼
Share
purchase by employees and registers representatives of Baird or its affiliate
and their family members as designated by Baird
◼
Shares
purchase from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same accounts, and (3) redeemed shares were
subject to a front-end or deferred sales charge (known as rights of
reinstatement)
97
◼
A
shareholder in the Funds Class C shares will have their shares converted at net
asset value to Class A shares of the fund if the shares are no longer subject to
CDSC and the conversion is in line with the policies and procedures of
Baird
◼
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money purchase pension plans and defined benefit plans. For
purposes of this provision, employer-sponsored retirement plans do not include
SEP IRAs, Simple IRAs or SAR-SEPs
CDSC Waivers on Class
A and C Shares Available at Baird
◼
Shares sold
due to death or disability of the shareholder
◼
Shares sold
as part of a systematic withdrawal plan as described in the Fund’s
Prospectus
◼
Shares
bought due to returns of excess contributions from an IRA Account
◼
Shares sold
as part of a required minimum distribution for IRA and retirement accounts due
to the shareholder reaching age 72 as described in the Fund’s
prospectus
◼
Shares sold
to pay Baird fees but only if the transaction is initiated by Baird
◼
Shares
acquired through a right of reinstatement
Front-End Sales
Charge Discounts Available at Baird: Breakpoints and/or Rights of
Accumulations
◼
Breakpoints
as described in this prospectus
◼
Rights of
accumulations which entitles shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Baird. Eligible fund family
assets not held at Baird may be included in the rights of accumulations
calculation only if the shareholder notifies his or her financial advisor about
such assets
◼
Letters of
Intent (LOI) allow for breakpoint discounts based on anticipated purchases
within a fund family through Baird, over a 13-month period of
time
98
Tax-Advantaged
Equity Funds Prospectus
|
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
1-800-526-7384. You can also access and download the annual and semi-annual reports and the SAI at the Fund’s website: www.gsamfunds.com/mutualfunds.
1-800-526-7384. You can also access and download the annual and semi-annual reports and the SAI at the Fund’s website: www.gsamfunds.com/mutualfunds.
From time
to time, certain announcements and other information regarding the Fund may be
found at
http://www.gsamfunds.com/announcements-ind for individual investors or http://www.gsamfunds.com/announcements for advisers.
http://www.gsamfunds.com/announcements-ind for individual investors or http://www.gsamfunds.com/announcements for advisers.
To obtain
other information and for shareholder inquiries:
|
|
Institutional,
Service & Class R6 |
Class
A, C & Investor |
|
◼ By
telephone: |
1-800-621-2550 |
1-800-526-7384 |
|
◼ By
mail: |
Goldman
Sachs Funds
P.O.
Box 806395
Chicago,
IL 60680-4125 |
Goldman
Sachs Funds
P.O.
Box 219711
Kansas
City, MO 64121 |
|
◼ 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
Funds' investment company registration number is 811-05349.
GSAM® is a registered service mark of Goldman Sachs & Co. LLC
GSAM® is a registered service mark of Goldman Sachs & Co. LLC
TAXADVPRO-23