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transcript
Singapore Prospectus
Goldman Sachs Funds SICAV
Constituted in Luxembourg
Equity Portfolios: Goldman Sachs Asia Equity Portfolio
Goldman Sachs Emerging Markets Equity Portfolio Goldman Sachs Global Equity Partners Portfolio Goldman Sachs India Equity Portfolio Goldman Sachs Japan Equity Portfolio Goldman Sachs Japan Equity Partners Portfolio
Fixed Income Portfolios:
Goldman Sachs Emerging Markets Corporate Bond Portfolio
Goldman Sachs Emerging Markets Debt Portfolio
Goldman Sachs Global High Yield Portfolio
Flexible Portfolios: Goldman Sachs Emerging Markets Multi-Asset Portfolio Goldman Sachs Global Income Builder Portfolio
Specialist Portfolios: Goldman Sachs Global Strategic Macro Bond Portfolio Goldman Sachs Global Absolute Return Portfolio
0118 11 January 2018
This Singapore Prospectus incorporates and is not valid without the attached Luxembourg prospectus dated December 2017 as may be amended from time to time and the following Supplements (together, the Luxembourg Prospectus):
Supplement I dated December 2017; and Supplement II dated December 2017.
Unless the context otherwise requires or unless specifically provided for by this Singapore Prospectus, terms defined in the Luxembourg Prospectus shall have the same meaning when used in this Singapore Prospectus.
The Fund is an undertaking for collective investment organised under the laws of the Grand Duchy of Luxembourg and is constituted outside of Singapore.
Goldman Sachs Europe CORE Equity Portfolio Goldman Sachs Global CORE Equity Portfolio
Goldman Sachs Europe High Yield Bond Portfolio
Goldman Sachs US Real Estate Balanced Portfolio
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TABLE OF CONTENTS
CONTENTS PAGE
IMPORTANT INFORMATION........................................................................................................... 4
1. THE FUND .............................................................................................................................. 8
2. THE PORTFOLIOS................................................................................................................. 8
3. MANAGEMENT .................................................................................................................... 14
4. OTHER PARTIES ................................................................................................................. 16
5. INVESTMENT OBJECTIVE, FOCUS AND APPROACH .................................................... 17
6. PRODUCT SUITABILITY ..................................................................................................... 21
7. FEES AND CHARGES ......................................................................................................... 24
8. RISK FACTORS ................................................................................................................... 27
9. SUBSCRIPTION FOR SHARES .......................................................................................... 31
10. REGULAR SAVINGS PLAN (RSP)...................................................................................... 33
11. REDEMPTION OF SHARES ................................................................................................ 33
12. EXCHANGE OF SHARES.................................................................................................... 35
13. OBTAINING NET ASSET VALUE INFORMATION IN SINGAPORE.................................. 36
14. TEMPORARY SUSPENSION OF DEALINGS..................................................................... 36
15. PERFORMANCE OF THE PORTFOLIOS ........................................................................... 36
16. SOFT DOLLAR COMMISSIONS / ARRANGEMENTS........................................................ 52
17. CONFLICTS OF INTERESTS .............................................................................................. 52
18. REPORTS ............................................................................................................................. 53
19. OTHER MATERIAL INFORMATION.................................................................................... 53
20. QUERIES AND COMPLAINTS ............................................................................................ 54
3
DIRECTORY
REGISTERED OFFICE
c/o State Street Bank Luxembourg S.C.A.
49, avenue J-F Kennedy,
L-1855 Luxembourg
Grand-Duchy of Luxembourg
RCS B41 751
MANAGEMENT COMPANY
Goldman Sachs Asset Management Global Services Limited
Peterborough Court
133, Fleet Street
London, EC4A 2BB
United Kingdom
INVESTMENT ADVISER
Goldman Sachs Asset Management International
Peterborough Court
133, Fleet Street
London, EC4A 2BB
United Kingdom
DEPOSITARY, ADMINISTRATOR, PAYING AGENT, DOMICILIARY
AGENT AND LISTING AGENT
State Street Bank Luxembourg S.C.A.
49, Avenue J-F Kennedy
L-1855 Luxembourg
Grand-Duchy of Luxembourg
AUDITOR
PricewaterhouseCoopers, Socit Cooprative
Reviseur dentreprises
2, rue Gerhard Mercator
L-2182 Luxembourg
Grand-Duchy of Luxembourg
SINGAPORE REPRESENTATIVE
Goldman Sachs Asset Management (Singapore) Pte. Ltd.
(Company Registration No. 201329851H)
1 Raffles Link #07-01
Singapore 039393
LEGAL ADVISERS AS TO SINGAPORE LAW
Allen & Gledhill LLP
One Marina Boulevard #28-00
Singapore 018989
MORE CONTACT DETAILS ARE SET OUT IN THE DIRECTORY OF THE LUXEMBOURG
PROSPECTUS.
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IMPORTANT INFORMATION
The portfolios of GOLDMAN SACHS FUNDS SICAV (the Fund) offered in this Singapore
Prospectus and as set out in Paragraph 2 of this Singapore Prospectus (each a Portfolio
and collectively, the Portfolios), are recognised schemes under the Securities and Futures
Act (Chapter 289) of Singapore (the SFA). A copy of this Singapore Prospectus has been
lodged with and registered by the Monetary Authority of Singapore (the Authority). The
Authority assumes no responsibility for the contents of this Singapore Prospectus.
Registration of this Singapore Prospectus by the Authority does not imply that the SFA, or
any other legal or regulatory requirements have been complied with. The Authority has not,
in any way, considered the investment merits of the Portfolios.
This Singapore Prospectus does not constitute an offer or solicitation to anyone in any jurisdiction in
which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such
offer or solicitation. This Singapore Prospectus may only be used in connection with this offering of
securities to which it relates by distribution as contemplated in this Singapore Prospectus.
The date of registration of this Singapore Prospectus with the Authority is 11 January 2018. This
Singapore Prospectus shall be valid for a period of 12 months after its date of registration (i.e., up
to and including 10 January 2019) and shall expire on 11 January 2019.
The directors of the Fund (the Directors) are responsible for the issue of this Singapore
Prospectus. To the best of their knowledge and belief, the facts stated in this Singapore
Prospectus are true and accurate in all material respects as at the date of this Singapore
Prospectus and there are no other material facts, the omission of which makes any statement in
this Singapore Prospectus misleading.
You should inform yourself and should take appropriate advice as to the legal requirements, possible
tax consequences, foreign exchange restrictions and/or exchange control requirements that may be
applicable to you under the laws of the country or countries of your citizenship, residence, or domicile
and that might be relevant to the subscription, purchase, holding, exchange, redemption or disposal
of shares in the Portfolios (Shares).
Before investing in any Portfolio, you should carefully consider the risks involved in such
investment set out in Paragraph 8 of this Singapore Prospectus. You may wish to consult your
independent financial adviser about the suitability of a Portfolio for your investment needs.
Use of financial derivative instruments
Equity Portfolios
May use financial derivative instruments:
for efficient portfolio management
purposes;
to help manage risks; and
for investment purposes in order to seek to
increase return.
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Fixed Income Portfolios
Use financial derivative instruments as part of their
investment policy:
to gain exposure to, interest rates, credit
and/or currencies in order to seek to
increase return;
to leverage the Portfolio; and
to hedge against certain risks.
A significant proportion of a Fixed Income
Portfolios exposure may be generated through the
use of financial derivatives.
Flexible Portfolios
Use financial derivative instruments as part of their
investment policy:
to gain exposure to, amongst other things,
shares or similar instruments and markets,
interest rates, credit, currencies and/or
commodities in order to seek to increase
return;
to leverage the Portfolio; and
to hedge against certain risks.
A significant proportion of a Flexible Portfolios
exposure may be generated through the use of
financial derivatives.
Specialist Portfolios
May engage in transactions in financial derivative
instruments as part of the general investment
policy, to generate returns and/or for hedging
purposes.
Furthermore, a Specialist Portfolio may engage in
financial derivative transactions:
to manage risk relating to the Specialist
Portfolios investments;
to leverage the Specialist Portfolio; and
to establish speculative positions.
Each Specialist Portfolio will have a distinct
investment policy making extensive use of financial
derivative instruments as further detailed in
Supplement II to the Luxembourg Prospectus.
For further information on a Portfolios use of financial derivative instruments and
associated risks, please refer to Appendix C Special Investment Techniques together
with Section 4 Risk Considerations in the Luxembourg Prospectus as well as the section
headed Goldman Sachs Funds - Calculation of Global Exposure and Expected Level of
Leverage in:
Supplement I to the Luxembourg Prospectus for the Equity Portfolios, Fixed Income
Portfolios and Flexible Portfolios; and
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Supplement II to the Luxembourg Prospectus for the Specialist Portfolios.
The Management Company will ensure that the risk management and compliance procedures are
adequate and have been or will be implemented and that it has the necessary expertise to manage
the risk relating to the use of financial derivatives.
Securities lending and repurchase transactions
A Portfolio may enter into securities lending, repurchase or reverse repurchase
transactions. Please refer to Appendix C Special Investment Techniques together with
Section 4 Risk Considerations in the Luxembourg Prospectus for further information. The
maximum and expected amount of assets that can be subject to securities lending
transactions, repurchase transactions or reverse repurchase transactions are disclosed, in
the relevant Supplement to the Luxembourg Prospectus, in the relevant Appendix of each
Portfolio.
Portfolio Volatility
Goldman Sachs Global Absolute
Return Portfolio
The factors (i.e. inputs used by the Investment Adviser
to generate the portfolio allocation), markets, sectors
or assets included in the Goldman Sachs Global
Absolute Return Portfolio can be highly volatile, which
means that their value may increase or decrease
significantly over a short period of time. In particular,
the Portfolio may be highly volatile in terms of
performance because the Portfolio may combine long
and/or short positions in liquid instruments across the
market. Similarly, the Portfolio may involve exposure
to speculative and extremely volatile investments.
Goldman Sachs Global Equity
Partners Portfolio
Goldman Sachs Japan Equity
Partners Portfolio
The Portfolio uses a concentrated asset strategy that
is likely to exhibit significantly greater fluctuations in
asset values than a broad investment in a wide range
of shares of companies.
Goldman Sachs US Real Estate
Balanced Portfolio
An investment in the Goldman Sachs US Real Estate
Balanced Portfolio can expose investors to higher
volatility levels than is normally associated with
balanced investment strategies, therefore the value
of an investment in this Portfolio may be subject to
significant changes in the short term.
Shares are offered on the basis of the information contained in this Singapore Prospectus and the
documents referred to in this Singapore Prospectus. No person is authorised to give any
information or to make any representation in connection with the offering of Shares other than as
contained in this Singapore Prospectus and, if given or made, such information or representation
must not be relied upon as having been authorised by the Fund, the Directors, the Management
Company, the Investment Adviser, any investment sub-advisers or the Singapore Representative.
Any subscription made by you on the basis of statements or representations not contained in or
inconsistent with the information and representations contained in this Singapore Prospectus will
be solely at your risk.
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The delivery of this Singapore Prospectus or the issue of Shares in any Portfolio shall not, under
any circumstances, create any implication that the information contained in this Singapore
Prospectus is correct as of any time after the date of this Singapore Prospectus or that there will
be no change in the affairs of the Fund after such date. This Singapore Prospectus may be
updated from time to time to reflect material changes and you should investigate whether any
more recent Singapore Prospectus is available.
IMPORTANT: PLEASE READ AND RETAIN THIS SINGAPORE PROSPECTUS FOR FUTURE
REFERENCE.
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1. THE FUND
1.1 The Fund, Goldman Sachs Funds SICAV is a public limited company (socit anonyme)
qualifying as an investment company organised with variable share capital within the
meaning of the Luxembourg Law of 17 December 2010 relating to undertakings for
collective investment, as amended (the Law of 17 December 2010). The Fund is
established as an umbrella structure comprised of a number of Portfolios. The Fund
qualifies as an Undertaking for Collective Investment in Transferable Securities (UCITS)
under Directive 2009/65/EC of the European Parliament and of the Council of 13 July
2009 on the coordination of laws, regulations and administrative provisions relating to
undertakings for collective investment in transferable securities, as amended. The Fund is
authorised by the Luxembourg Commission de Surveillance du Sector Financier (the
CSSF).
1.2 If you are a Registered Shareholder (a person whose name is entered into the Funds
Shareholders register as the legal holder of Shares) you may inspect the Articles of
Incorporation of the Fund during normal Singapore business hours at the Singapore
Representatives office.
1.3 If you are a Registered Shareholder, you may obtain information on Registered
Shareholders who subscribed for or purchased their Shares in Singapore from the Funds
Shareholders register by submitting a valid request during normal Singapore business
hours at the Singapore Representatives office.
1.4 The Singapore Representative will normally provide the requested information to you
within 5 Singapore business days after receiving your request (or such period as may be
indicated by the Singapore Representative). The Singapore Representative may need
certain information and documents from you to make sure that you are a Registered
Shareholder before processing any request from you. If you are not a Registered
Shareholder, please submit your request through your distributor.
1.5 You should refer to the Important Information section and Section 1 The Fund in the
Luxembourg Prospectus for further information on the Fund.
2. THE PORTFOLIOS
The Portfolios offered to you under this Singapore Prospectus have been approved by the
CSSF and are set out in the table below. The currency of the Fund is USD. As at the date
of this Singapore Prospectus, selected Base Shares and Other Currency Shares are
available in respect of the Portfolios as indicated in the table below. Share Classes in the
table below indicated with an asterisk (*) have not been launched as at the date of the
Singapore Prospectus and you should contact your Singapore Distributor on when such
Share Classes will become available. In addition, other Share Classes may be
subsequently available and you should contact your Singapore Distributor (as defined in
Paragraph 9.1) for a list of Share Classes in the Portfolios which are available to you.
Portfolios
Base
Currency
of the
Portfolio
Share Classes
Equity Portfolios
Goldman Sachs Asia Equity
PortfolioUSD Base (Acc.)
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Portfolios
Base
Currency
of the
Portfolio
Share Classes
Goldman Sachs Emerging
Markets Equity PortfolioUSD Base (Acc.)
Goldman Sachs Global Equity
Partners PortfolioUSD Base (Acc.)
Base (Acc.)(USD Hedged)
Goldman Sachs India Equity
PortfolioUSD Base (Acc.)
Goldman Sachs Japan Equity
PortfolioJPY
Base (Acc.) Other Currency (Acc.)(USD
Hedged)
Goldman Sachs Japan Equity
Partners PortfolioJPY
Base (Acc.) Other Currency (Acc.)(USD
Hedged)*
Goldman Sachs Europe CORE
Equity PortfolioEUR Base (Acc.)
Other Currency (Acc.)(USD)
Goldman Sachs Global CORE
Equity PortfolioUSD Base (Acc.)(Close)
Fixed Income Portfolios
Goldman Sachs Emerging
Markets Corporate Bond PortfolioUSD
Base Base (Acc.) Base (MDist) Base Shares (Stable MDist) Other Currency (SGD Hedged)
(MDist) Other Currency Shares (Stable
MDist)(SGD Hedged) Other Currency Shares (Stable
MDist)(AUD Hedged) Other Currency Shares (Stable
MDist)(GBP Hedged)
Goldman Sachs Emerging
Markets Debt PortfolioUSD
Base Base (Acc.) Base (MDist) Base (Stable MDist) Base (Duration-Hedged) Base (Acc.)(Duration-Hedged) Other Currency (SGD-Hedged) Other Currency (SGD-
Hedged)(Stable MDist) Other Currency Shares (EUR-
Hedged)(M-Dist)
Goldman Sachs Europe High Yield
Bond PortfolioEUR
Base Base (Acc.) Base (Acc.)(USD Hedged)
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Portfolios
Base
Currency
of the
Portfolio
Share Classes
Goldman Sachs Global High Yield
PortfolioUSD
Base Base (Acc.) Base (MDist) Base (Duration Hedged) Base (Acc.)(Duration Hedged) Base (Duration Hedged)(MDist) Other Currency (AUD
Hedged)(MDist) Other Currency (SGD Hedged) Other Currency (SGD
Hedged)(Duration Hedged)(QDist)
Flexible Portfolios
Goldman Sachs Emerging
Markets Multi-Asset Portfolio USD
Base Base (Acc.) Base (Gross MDist) Base (Cap MDist) Other Currency (AUD Partially
Hedged) (Cap MDist) Other Currency (GBP Partially
Hedged) (Cap MDist) Other Currency (SGD Partially
Hedged) (Gross MDist) Other Currency (SGD Partially
Hedged) (Cap MDist)
Goldman Sachs Global Income
Builder PortfolioUSD
Base Base (Acc.) Base (Gross MDist)
Goldman Sachs US Real Estate
Balanced PortfolioUSD
Base (Acc.) Base (MDist Cap (MBS)) Base (Gross MDist Cap (MBS)) Other Currency (SGD
Hedged)(MDist Cap (MBS)) Other Currency (SGD
Hedged)(Gross MDist Cap (MBS))
Specialist Portfolios
Goldman Sachs Global Strategic
Macro Bond PortfolioUSD
Base (Flat)* Base (Flat)(Acc.)* Other Currency (Flat)(Acc.)(SGD
Hedged)*
Goldman Sachs Global Absolute
Return PortfolioUSD
Base Base (Acc.) Other Currency (Acc.)(SGD
Hedged)*
2.1 Base Shares are denominated in the Base Currency of the relevant Portfolio while Other
Currency Shares (which operate the same Sales Charge, Management Fee, distribution
fee and operating expenses as Base Shares) are denominated in or hedged to a currency
other than the Base Currency of the relevant Portfolio. Other differing terms and
characteristics amongst Share Classes may include differences in their hedging policy and
dividend policy. Share Classes may be Accumulation Shares (denoted Acc.) or
Distribution Shares with the following dividend declaration / payment date frequencies: (i)
at least annually, (ii) semi-annually (denoted SDist) (iii) quarterly (denoted QDist or
Quarterly) and (iv) monthly (denoted MDist or Monthly).
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A key to other abbreviations used in the names of the Share Classes in the table in
Paragraph 2.1 is set out below:
Distribution Share Classes
Each Portfolio may offer Distribution Shares which calculate dividend payments based on
different methodologies. Share Classes in the table in Paragraph 2.1 (other than those
denoted with Gross or Stable) calculate dividend payments based on net investment
income, if any, calculated as gross investment income less any management fees,
distribution and shareholder services fees and operating expenses attributable to such
Shares. Capital/capital gains attributable to such Shares are generally expected to be
retained, although the Board of Directors retains the right to declare dividends in respect of
such capital/capital gains in its sole discretion. For each methodology Distribution Shares
may use to calculate dividend payments, each Portfolio may also distribute capital and/or
capital gains. You should be aware that the distribution of capital gains and/or capital as a
dividend may result in an erosion of capital and may reduce future capital growth.
Abbreviation in the Share Class
nameDescription
Cap
Share Classes for which dividend payments are
calculated based on the net investment income,
if any, calculated as gross investment income
less any management fees, distribution &
shareholder services fees and operating
expenses, plus any capital gains and/or capital
attributable to such Shares.
Gross
Share Classes for which dividend payments are
calculated based on gross investment income,
which is calculated gross of the management
fees, distribution and shareholder services fees
and operating expenses attributable to such
Shares.
As a result, the expenses of such Shares will be
effectively deducted from capital. Other than for
expenses, capital/capital gains attributable to
such Shares are generally expected to be
retained, although the Board of Directors retains
the right to declare dividends in respect of such
capital/capital gains in its sole discretion.
Stable
Share Classes which will seek to declare a
stable dividend, based on the projected gross
investment income, which is calculated gross of
management fees, distribution and shareholder
services fees and operating expenses
attributable to such Shares.
As a result, the expenses of such Shares will be
effectively deducted from capital.
In addition, the stable distribution level may be
greater than the actual gross investment
income for the period and therefore this may
result in a further distribution from capital and
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Abbreviation in the Share Class
nameDescription
reduction in future capital growth. You should
also note that, whilst it is intended that such
Shares will pay a stable dividend over the fiscal
year, there could be circumstances where it is
not possible to declare a dividend or where the
level of the dividend needs to be adjusted.
Other than for expenses, and achieving the
stable level, capital/capital gains attributable to
such Shares are generally expected to be
retained, although the Board of Directors retains
the right to declare dividends in respect of such
capital/capital gains in its sole discretion.
Cap (MBS)
For each of the methodologies above
described, each Portfolio may also distribute
capital and/or capital gains.
Share classes which may distribute any net
realised gains, on prepayments from mortgage-
backed securities shall be denoted with Cap
(MBS) in the share class name (e.g. QDist Cap
(MBS)).
Currency Hedged Share Classes
Currency Hedged Share Classes are classes of Shares to which a hedging strategy
aiming at mitigating currency risk is applied in accordance with ESMA Opinion on UCITS
share classes (34-43-296) dated 30 January 2017.
Abbreviation in the Share Class
nameDescription
AUD Hedged
AUD denominated Share Classes which seek to
hedge the Base Currency or other currency
exposures in the Portfolio to AUD.
EUR Hedged
EUR denominated Share Classes which seek to
hedge the Base Currency or other currency
exposures in the Portfolio to EUR.
GBP Hedged
GBP denominated Share Classes which seek to
hedge the Base Currency or other currency
exposures in the Portfolio to GBP
SGD Hedged
SGD denominated Share Classes which seek
to hedge the Base Currency or other currency
exposures in the Portfolio to SGD.
USD Hedged
USD denominated Share Classes which seek to
hedge the Base Currency or other currency
exposures in the Portfolio to USD.
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Abbreviation in the Share Class
nameDescription
AUD Partially Hedged
AUD denominated Share Classes which seek to
hedge only a certain proportion of the Base
Currency exposure of the Portfolio to the AUD.
You should be aware that these Share Classes
will retain a level of currency exposure, which
could be significant, and are not fully hedged to
AUD.
GBP Partially Hedged
GBP denominated Share Classes which seek to
hedge only a certain proportion of the Base
Currency exposure of the Portfolio to the GBP.
You should be aware that these Share Classes
will retain a level of currency exposure, which
could be significant, and are not fully hedged to
GBP.
SGD Partially Hedged
SGD denominated Share Classes which seek
to hedge only a certain proportion of the Base
Currency exposure of the Portfolio to the SGD.
You should be aware that these Share Classes
will retain a level of currency exposure, which
could be significant, and are not fully hedged to
SGD.
Duration Hedged Share Classes
Since 30 July 2017, Duration Hedged Share Classes have been closed for
subscriptions by new investors and as of 30 July 2018 Duration Hedged Share
Classes will be closed for any subscriptions, including subscriptions by existing
investors.
Abbreviation in the Share Class
nameDescription
Duration HedgedShare Classes which will seek to predominantly
hedge the interest rate risk of the Portfolio.
Others
Abbreviation in the Share Class
nameDescription
Close
A Portfolio may issue Share Classes which
have different valuation points, e.g. Snap and
Close Shares, where the valuation point for
Close Shares takes a value at close and
Snap Shares takes a value at a time other
than at close and/or may include fair value
prices, if considered appropriate, for securities
which are traded on markets which are closed
at the valuation point.
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Abbreviation in the Share Class
nameDescription
Flat
If a Portfolio has a performance fee, the
Portfolio may issue Flat Fee Shares. The Flat
Fee Share Classes operate the same Sales
Charge, distribution fee and operating expenses
of the corresponding Share Class (e.g. Base
and Base (Flat)), but will have a different
Management Fee and will not levy a
performance fee.
2.2 You should refer to Section 3 Description of Share Classes of the Luxembourg
Prospectus and the relevant Supplement to the Luxembourg Prospectus for further details
on the characteristics of the different Share Classes. If you wish to subscribe for
Distribution Shares, you should also refer to Section 18 Dividend Policy of the
Luxembourg Prospectus.
2.3 You should note that any Portfolio mentioned in the Luxembourg Prospectus but
which is not set out in Paragraph 2.1 above is not being offered for sale under this
Singapore Prospectus as at the date of this Singapore Prospectus.
3. MANAGEMENT
3.1 The Board of Directors
The Board of Directors has overall responsibility for the management of the Fund.
Further information on the Board of Directors is set out in Section 5 Board of Directors of
the Luxembourg Prospectus.
3.2 The Management Company and its directors and key executives
3.2.1 The Management Company
The Fund has appointed Goldman Sachs Asset Management Global Services
Limited, a wholly-owned subsidiary of The Goldman Sachs Group Inc., as its
management company (GSAMGS or the Management Company). The
Management Company is authorised and regulated by the United Kingdom
Financial Conduct Authority (FCA).
The Management Company has been managing collective investment schemes
for approximately 4 years since its incorporation on 13 December 2013.
You should refer to Section 6 Management Company of the Luxembourg
Prospectus for further information on the Management Company (including
information on its delegation of certain functions to third parties).
Past performance of the Management Company is not necessarily indicative
of its future performance or of the Portfolios.
3.2.2 Directors of the Management Company
The list of directors of the Management Company may be changed from time
to time without notice.
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Stephen Davies, Managing Director, Goldman Sachs
Stephen is a managing director in Goldman Sachs in London. Previously, he
worked in Goldman Sachs New York office serving as the chief financial officer of
Goldman Sachs Bank USA from 2008 to 2010. Stephen joined Goldman Sachs in
1994 as co-head of Regulatory Reporting in London and established the Currency
and Commodities Accounting Department in London in 1995.
He became co-head of Currency and Commodities Accounting globally in 1996,
London controller in 1997, European controller in 1999 and was the international
controller from 2004 to 2008.
Prior to joining the firm, Stephen was a senior manager at Coopers & Lybrand.
Stephen earned a BA, with honours, in Economics and Social Studies from
Manchester University in 1978.
Glenn R. Thorpe, Managing Director, Goldman Sachs
Glenn is a Managing Director in Goldman Sachs in London. He is the chief
operating officer for Goldman Sachs Asset Management (GSAM) in EMEA. Before
joining GSAM, he was international head of the Investment Management Division
(IMD) Fund Controllers team, with his primary focus being support of GSAMs
offshore fund business.
Glenn joined Goldman Sachs in the Controllers department of the Finance division
in 2000 and had various roles within Controllers over 17 years, spanning both
London and New York.
Glenn qualified as a chartered accountant with Ernst & Young in Australia in 1996
and earned a Bachelor of Commerce from The University of Western Australia in
1993.
Barbara Healy, Non-Executive Director, Goldman Sachs Asset Management
Global Services Limited
Barbara is a chartered accountant by profession and has over 20 years
experience in the asset management industry. From 2004 to 2009, Barbara was
Global Head of Operations for JPMorgan Hedge Fund Services incorporating the
role of Executive Director and Head of Technical Solutions EMEA and Asia.
During her tenure assets grew from US$5 billion to US$100 billion, positioning the
firm as a top-tier service provider in the hedge fund administration market.
Barbara previously ran operations for Tranaut Fund Administration Ltd from 2002
to 2004 which was subsequently acquired by JPMorgan, and before this was
Director of Accounting for SEI Investments Europe. Barbara has also worked in
fund accounting positions in Bankers Trust and Chase Manhattan. She is
currently serving as a non-executive director to Irish, Luxembourg and Cayman
domiciled funds.
Barbara holds a Bachelor of Commerce Degree (Honours) and a Post-Graduate
Diploma in Professional Accounting. She is a member of the Institute of Chartered
Accountants in Ireland and is also a member of the Institute of Directors in Ireland.
Barbara attended the High Performance Boards Corporate Governance
Programme at IMD, Lausanne, Switzerland, 2011.
3.2.3 Key Executives of the Management Company
There are no key executives of the Management Company for the Portfolios other
than the Directors as the Management Company has delegated certain
16
investment management functions in relation to each of the Portfolios to the
Investment Adviser
3.3 The Investment Adviser
The Management Company has delegated certain investment management functions in
relation to each of the Portfolios to Goldman Sachs Asset Management International
(GSAMI or the Investment Adviser). The Investment Adviser will be responsible to the
Management Company in respect of the management of the investment of the assets of
each Portfolio in accordance with its investment objectives and policies subject always to
the supervision and direction of the Management Company.
GSAMI is domiciled in the United Kingdom and is authorised and regulated by the FCA.
GSAMI has been managing collective investment schemes and/or discretionary funds for
approximately 26 years since 1991.
Subject to compliance with applicable laws, the Investment Adviser may select and rely
upon third-party investment sub-advisers as well as its affiliated sub-advisers for Portfolio
decisions and management with respect to certain Portfolio securities and is able to draw
upon the investment management, investment advice, research and investment expertise
of such selected third party advisers as well as its other affiliate offices with respect to the
selection and management of investments for each Portfolio.
You should refer to Section 7 Investment Adviser of the Luxembourg Prospectus for
further information on the Investment Adviser. Past performance of the Investment
Adviser is not necessarily indicative of its future performance or of the Portfolios.
4. OTHER PARTIES
4.1 The Singapore Representative and Agent for Service of Process
Goldman Sachs Asset Management (Singapore) Pte. Ltd. is the Funds representative in
Singapore (the Singapore Representative) and carries out or procures the carrying out
of certain administrative functions in respect of the Portfolios in Singapore as required
under section 287(13) of the SFA.
In addition, the Singapore Representative is the Funds local agent in Singapore to accept
service of process.
4.2 The Registrar and Transfer Agent
The Management Company has appointed RBC Investor Services Bank S.A. to act as
Registrar and Transfer Agent.
You should refer to Section 10 Registrar and Transfer Agent of the Luxembourg
Prospectus for further information on the Registrar and Transfer Agent.
4.3 The Depositary
The Fund has appointed State Street Bank Luxembourg S.C.A. (State Street or the
Depositary) as depositary, administrator, paying agent, domiciliary agent and listing
agent. In accordance with the Law of 17 December 2010, the Depositary has been
entrusted with, amongst other functions, safekeeping of the Funds assets. State Street is
regulated by the CSSF.
The Depositary has full power to delegate the whole or any part of its safekeeping
functions but its liability will not be affected by the fact that it has entrusted to a third party
some or all of the assets in its safekeeping. The Depositarys liability shall not be affected
by any delegation of its safe-keeping functions under the Depositary Agreement.
17
The Depositary has delegated those safekeeping duties set out in Article 34(3)(a) of the
Law of 17 December 2010 to State Street Bank and Trust Company with registered office
at Copley Place 100, Huntington Avenue, Boston, Massachusetts 02116, USA, whom it
has appointed as its global sub-custodian. State Street Bank and Trust Company as global
sub-custodian has appointed local sub-custodians within the State Street Global Custody
Network.
Information about the safekeeping functions which have been delegated and the
identification of the relevant delegates and sub-delegates are available at the registered
office of the Fund and at:
http://www2.goldmansachs.com/gsam/docs/funds_international/legal_documents/reports/s
ubcustodian-list.pdf
You should refer to Section 9 Depositary, Administrator, Paying Agent, Domiciliary Agent
and Listing Agent of the Luxembourg Prospectus for further information on the Depositary
and the custodial arrangement in respect of assets of the Portfolios.
4.4 The Auditor
The auditor of the Fund is PricewaterhouseCoopers Socit Cooprative.
4.5 Other Parties
You should refer to Section 8 The Valuer, Section 9 Depositary, Administrator, Paying
Agent, Domiciliary Agent and Listing Agent and Section 11 The Distributor of the
Luxembourg Prospectus for information on other parties.
5. INVESTMENT OBJECTIVE, FOCUS AND APPROACH
5.1
A summary of the Portfolios investment focus is set out below.
Portfolios Investment objective
Equity PortfoliosLong-term capital appreciation by investing in any
Permitted Investments.
Fixed Income PortfoliosTotal return consisting of income and capital
appreciation.
Flexible PortfoliosTotal returns consisting of capital appreciation and
income generation.
Specialist Portfolios
Goldman Sachs Global
Strategic Macro Bond
Portfolio
To seek to achieve attractive total returns through
both capital appreciation and income generation from
a portfolio of investments primarily in the global fixed
income and currency markets. The Portfolio will
mainly invest in currencies, publicly traded securities
and financial derivative instruments.
Goldman Sachs Global
Absolute Return Portfolio
To seek to achieve absolute returns over a rolling
three-year period from a portfolio of investments in
equity, equity-related securities, fixed income
securities, fixed income-related securities, and
financial derivative or other instruments on interest
rates, credit, currencies and commodity indices, and
other Permitted Investments. Absolute returns are not
guaranteed.
http://www2.goldmansachs.com/gsam/docs/funds_international/legal_documents/reports/subcustodian-list.pdf
18
5.2 You should refer to Section 2 Investment Objectives and Policies of the Luxembourg
Prospectus and the relevant Supplement to the Luxembourg Prospectus describing the
relevant Portfolio for full information on the Portfolios investment objective, focus and
approach.
Portfolios Investment focus
Equity Portfolios
Goldman Sachs Asia Equity
Portfolio
The Portfolio will mostly hold shares or similar
instruments relating to Asian companies (excluding
Japan). Such companies are either based in or earn
most of their profits or revenues from Asia, excluding
Japan. The Portfolio may also invest in companies
which are based anywhere in the world.
Goldman Sachs Emerging
Markets Equity Portfolio
The Portfolio will mostly hold shares or similar
instruments relating to emerging market companies.
Such companies are either based in or earn most of
their profits or revenues from emerging markets. The
Portfolio may also invest in companies which are
based anywhere in the world.
Goldman Sachs Global Equity
Partners Portfolio
The Portfolio will mostly hold shares or similar
instruments relating to a concentrated portfolio of
companies anywhere in the world.
Goldman Sachs India Equity
Portfolio
The Portfolio will mostly hold shares or similar
instruments relating to Indian companies. Such
companies are either based in or earn most of their
profits or revenues from India. The Portfolio may also
invest in companies which are based anywhere in the
world.
Goldman Sachs Japan Equity
Portfolio
The Portfolio will mostly hold shares or similar
instruments relating to Japanese companies. Such
companies are either based in or earn most of their
profits or revenues from Japan. The Portfolio may
also invest in companies which are based anywhere
in the world.
Goldman Sachs Japan Equity
Partners Portfolio
The Portfolio will mostly hold shares or similar
instruments relating to Japanese companies. Such
companies are either based in or earn most of their
profits or revenues from Japan. The Portfolio may also
invest in companies which are based anywhere in the
world. The Portfolio will typically invest in 25-40
companies.
Goldman Sachs Europe
CORE
Equity Portfolio
The Portfolio will mostly hold shares or similar
instruments relating to European companies. Such
companies are either based in or earn most of their
profits or revenues from Europe. The Portfolio may
also invest in companies which are based anywhere
in the world. The Portfolio utilises the CORE
strategy,
a multi-factor proprietary model developed by
Goldman Sachs which aims to forecast returns on
19
Portfolios Investment focus
securities.
Goldman Sachs Global
CORE
Equity Portfolio
The Portfolio will mostly hold shares or similar
instruments relating to companies anywhere in the
world. The Portfolio utilises the CORE
strategy, a
multi-factor proprietary model developed by Goldman
Sachs which aims to forecast returns on securities.
Fixed Income Portfolios
Goldman Sachs Emerging
Markets Corporate Bond
Portfolio
The Portfolio will mostly invest in fixed income
securities of emerging market companies. Such
companies are either based in or earn most of their
profits or revenues from emerging markets. The
Portfolio may also invest in fixed income securities of
companies which are based anywhere in the world.
Goldman Sachs Emerging
Markets Debt Portfolio
The Portfolio will mostly invest in fixed-income
securities of any type of emerging country issuer.
Where such issuers are companies they may either be
based in or earn most of their profits or revenues from
emerging markets. The Portfolio may also invest in
fixed income securities where the issuer may be
based anywhere in the world.
Goldman Sachs Europe High
Yield Bond Portfolio
The Portfolio will mostly invest in below investment
grade fixed income securities of European companies.
Such companies are either based in or earn most of
their profits from Europe.
Goldman Sachs Global High
Yield Portfolio
The Portfolio will mostly invest in below investment
grade fixed income securities of North American and
European companies. Such companies are either
based in or earn most of their profits or revenues from
North America and/or Europe. The Portfolio may also
invest in below investment grade fixed income
securities of companies which are based anywhere in
the world.
Flexible Portfolios
Goldman Sachs Emerging
Markets Multi-Asset Portfolio
The Portfolio will mostly hold shares or similar
instruments and fixed income securities of emerging
markets companies or governments. Such companies
are either based in or earn most of their profits or
revenues from emerging markets.
The Portfolio may also seek to generate income
through selling call options on equity securities or
indices which gives the buyer of such option the right
(but not the obligation) to buy the underlying
instrument at a specified price within a specific time
period in return for a cash payment to the Portfolio.
Goldman Sachs Global
Income Builder PortfolioThe Portfolio will mostly hold shares or similar
instruments relating to companies anywhere in the
20
Portfolios Investment focus
world and fixed income securities of any type of issuer
based anywhere in the world with a focus on higher
income yielding, hence below investment grade, fixed
income securities. The Investment Adviser will
generally seek to hedge the Portfolios currency
exposure back to the US Dollar.
The Portfolio may also seek to generate a return
through the sale of call options on equity securities or
indices which gives the buyer of such option the right
(but not the obligation) to buy such instrument at a
specified price within a specific time period in return
for a cash payment to the Portfolio. For Distribution
Shares, the payment of the proceeds of this strategy
is intended to be part of the distribution, if any, of the
relevant Share Class at the date on which such
distribution is made.
If the underlying asset decreases in value, the
Portfolio will make a gain but will make a loss if the
underlying asset increases in price.
Goldman Sachs US Real
Estate Balanced Portfolio
The Portfolio aims to provide exposure to US real
estate markets and will mostly hold:
o Shares or similar instruments relating to US
companies,
o Fixed income securities (mostly below
investment grade) of US companies (including
those securities issued by issuing entities based
in offshore centres from where corporate fixed
income securities may be issued),
o US mortgage backed securities (mostly below
investment grade).
Specialist Portfolios
Goldman Sachs Global
Strategic Macro Bond
Portfolio
The Portfolio will mostly invest in publicly traded
securities, currencies and financial derivative
instruments, mostly in the global fixed income and
currency markets. The Portfolio will employ a number
of different investment strategies including duration
(interest rates), country, currency, government and
swaps, emerging market debt and mortgages. The
Portfolio may also implement a hedge at the overall
portfolio level to remove unintended market directional
risks.
Goldman Sachs Global
Absolute Return Portfolio
The Portfolio will mostly hold shares and fixed income
securities, financial derivative instruments or other
similar instruments. The Investment Adviser will seek
to employ a number of diverse investment strategies
investing across a variety of asset classes and
instruments including: shares, fixed income, emerging
21
Portfolios Investment focus
markets, alternatives, currencies and commodity
indices. The Investment Adviser will seek to
implement tactical investment strategies which may
regularly adjust the portfolio exposures based on
prevailing market conditions and short-term or
medium-market views. Strategies may be employed
that involve the use of statistical analysis of historical
performance data and publicly available information,
to identify sources of return.
6. PRODUCT SUITABILITY
6.1 The product suitability for each Portfolio is set out below:
Portfolios May be suitable for investors who:
Equity Portfolios
Goldman Sachs Asia Equity
Portfolio
o seek capital appreciation with no need for income;
o seek exposure to shares of companies of the Asia
(ex Japan) region; and
o are comfortable that the Portfolio may generate
potentially higher returns but also increased level
of risk than a diversified global equity portfolio.
Goldman Sachs Emerging
Markets Equity Portfolio
o seek capital appreciation with no need for income;
o seek access to the dynamic emerging markets
countries; and
o are comfortable that the Portfolio may generate
potentially higher returns but with a higher risk
profile than that of a diversified global equity fund.
Goldman Sachs Global Equity
Partners Portfolio
o seek capital appreciation with no need for income;
o seek exposure to a global equity fund which may
typically have a smaller number of holdings than a
more diversified global equity portfolio; and
o are comfortable that the Portfolio may generate
potentially higher returns but also increased level
of risk than a more diversified global equity
portfolio.
Goldman Sachs India Equity
Portfolio
o seek capital appreciation with no need for income;
o seek exposure to Indias equity markets; and
o are comfortable that the Portfolio may generate
potentially higher returns but with a higher risk
profile than a more benchmark aware India equity
fund.
Goldman Sachs Japan Equity
Portfolio
o seek capital appreciation with no need for income;
and
22
Portfolios May be suitable for investors who:
o seek exposure to shares of Japans equity
markets.
Goldman Sachs Japan Equity
Partners Portfolio
o seek capital appreciation with no need for income;
o seek exposure to a Japanese equity fund which
may typically have a smaller number of holdings
than a more diversified Japan equity portfolio; and
o are comfortable that the Portfolio may generate
potentially higher returns but also increased level
of risk than a more diversified Japan equity
portfolio.
Goldman Sachs Europe
CORE
Equity Portfolio
o seek capital appreciation with no need for income;
and
o seek access to a European equity portfolio
possessing the same style, sector, risk and
capitalisation characteristics as the benchmark but
positioned to outperform through superior
underlying stock and country selection.
Goldman Sachs Global
CORE
Equity Portfolio
o seek capital appreciation with no need for income;
and
o seek access to a global equity portfolio
possessing the same style, sector, risk and
capitalisation characteristics as the benchmark but
positioned to outperform through superior
underlying stock and country selection.
Fixed Income Portfolios
Goldman Sachs Emerging
Markets Corporate Bond
Portfolio
o seek income with some capital appreciation; and
o seek exposure to a portfolio of primarily
investment and sub-investment grade corporate
bonds issued by companies based in or earning
most of their revenues from emerging markets.
The bonds may be denominated in developed or
emerging market currencies.
Goldman Sachs Emerging
Markets Debt Portfolio
o seek income with some capital appreciation; and
o seek exposure to investment and sub-investment
grade emerging markets bonds and currencies.
The bonds may be denominated in developed or
emerging markets currencies with primarily
developed market currencies risk.
Goldman Sachs Europe High
Yield Bond Portfolio
o seek income with some capital appreciation;
o seek exposure to sub-investment grade bonds
primarily issued by European companies; and
o seek exposure to a Portfolio that may generate
potentially higher returns but with higher risk than
an investment grade portfolio.
23
Portfolios May be suitable for investors who:
Goldman Sachs Global High
Yield Portfolio
o seek income with some capital appreciation;
o seek exposure to sub-investment grade bonds
primarily issued by North American and European
companies; and
o are comfortable that the Portfolio may generate
potentially higher returns but with a higher level of
risk than a global investment grade portfolio.
Flexible Portfolios
Goldman Sachs Emerging
Markets Multi-Asset Portfolio
o seek both capital appreciation and income;
o seek exposure to a portfolio of emerging markets
bonds (denominated in developed and/or
emerging markets currencies), equities and
alternative assets; and
o are comfortable that the Portfolio may have a
higher risk than that of a global multi-asset
portfolio.
Goldman Sachs Global
Income Builder Portfolio
o seek enhanced income;
o seek an income stream with some possibility of
capital appreciation through investments globally
in both equity and bonds with some exposure to
non-traditional asset classes; and
o are comfortable that the Portfolio may have a
large proportion of high yield bonds.
Goldman Sachs US Real
Estate Balanced Portfolio
o seek both capital appreciation and income;
o seek exposure to the US real estate markets
through bonds and equities related to real estate;
and
o are comfortable that the Portfolio may have a
higher degree of sector specific risk than that of a
diversified multi-sector portfolio.
Specialist Portfolios
Goldman Sachs Global
Strategic Macro Bond
Portfolio
o seek both capital appreciation and income;
o seek exposure to a flexible global investment and
sub-investment grade fixed income portfolio that
has the ability to alter its exposure with an
emphasis on interest rates and currencies; and
o seek returns thorough different market conditions.
In addition, the Portfolio is only suitable for investors
who understand the complexities of the alternative
strategies employed by the Portfolio.
24
Portfolios May be suitable for investors who:
Goldman Sachs Global
Absolute Return Portfolio
o seek capital appreciation with no need for income;
o seek diversification across a range of asset
classes (equities, bonds, commodities and
currencies) via a single portfolio; and
o seek returns through different market conditions
over a rolling three-year period and with an
expected level of risk lower than equity markets.
In addition, the Portfolio is only suitable for investors
who understand the complexities of the alternative
strategies employed by the Portfolio.
6.2 In addition, the Portfolios are only suitable for investors who are able to accept the product
specific risks of the Portfolios.
6.3 You should consult your financial adviser or your distributor if in doubt whether this product
is suitable for you.
7. FEES AND CHARGES
7.1 Fees and charges payable by a Singapore investor
Sales Charge Up to 5.5%
Redemption Charge Nil
Exchange of Shares
None except where Shares are being exchanged for
Shares which have a higher Sales Charge, the difference
between the Sales Charges may be charged
You should refer to Section 3 Description of Share Classes, Section 13 Purchase of
Shares, Section 14 Redemption of Shares and Section 16 Exchange of Shares of the
Luxembourg Prospectus as well as the relevant Supplement to the Luxembourg
Prospectus for further information.
7.2 Fees and charges payable by a Portfolio
PortfoliosShare
Class
Management
Fee (per
annum)
Distribution
Fee (per
annum)
Shareholder
Services Fee
(per annum)
Operating
Expenses Note 1
(per
annum)
Equity Portfolios
Goldman
Sachs Asia
Equity
Portfolio
Base
Shares1.50% Nil Nil Variable
Other
Currency
Shares
Up to 1.50% Nil Nil Variable
25
PortfoliosShare
Class
Management
Fee (per
annum)
Distribution
Fee (per
annum)
Shareholder
Services Fee
(per annum)
Operating
Expenses Note 1
(per
annum)
Goldman
Sachs
Emerging
Markets
Equity
Portfolio
Base
Shares1.75% Nil Nil Variable
Other
Currency
Shares
1.75% Nil Nil Variable
Goldman
Sachs Global
Equity
Partners
Portfolio
Base
Shares1.50% Nil Nil Variable
Other
Currency
Shares
1.50% Nil Nil Variable
Goldman
Sachs India
Equity
Portfolio
Base
Shares1.75% Nil Nil Variable
Other
Currency
Shares
1.75% Nil Nil Variable
Goldman
Sachs Japan
Equity
Portfolio
Base
Shares1.50% Nil Nil Variable
Other
Currency
Shares
1.50% Nil Nil Variable
Goldman
Sachs Japan
Equity
Partners
Portfolio
Base
Shares1.50% Nil Nil Variable
Other
Currency
Shares
1.50% Nil Nil Variable
Goldman
Sachs Europe
CORE
Equity
Portfolio
Base
Shares1.25% Nil Nil Variable
Other
Currency
Shares
Up to 1.25% Nil Nil Variable
Goldman
Sachs Global
CORE
Equity
Portfolio
Base
Shares1.25% Nil Nil Variable
Other
Currency
Shares
Up to 1.25% Nil Nil Variable
26
PortfoliosShare
Class
Management
Fee (per
annum)
Distribution
Fee (per
annum)
Shareholder
Services Fee
(per annum)
Operating
Expenses Note 1
(per
annum)
Fixed Income Portfolios
Goldman
Sachs
Emerging
Markets
Corporate
Bond
Portfolio
Base
Shares1.25% Nil Nil Variable
Other
Currency
Shares
1.25% Nil Nil Variable
Goldman
Sachs
Emerging
Markets Debt
Portfolio
Base
Shares1.25% Nil Nil Variable
Other
Currency
Shares
1.25% Nil Nil Variable
Goldman
Sachs Europe
High Yield
Bond
Portfolio
Base
Shares1.10% Nil Nil Variable
Other
Currency
Shares
Up to 1.10% Nil Nil Variable
Goldman
Sachs Global
High Yield
Portfolio
Base
Shares1.10% Nil Nil Variable
Other
Currency
Shares
1.10% Nil Nil Variable
Flexible Portfolios
Goldman
Sachs
Emerging
Markets Multi-
Asset
Portfolio
Base
SharesUp to 1.50% Nil Nil Variable
Other
Currency
Shares
Up to 1.50% Nil Nil Variable
Goldman
Sachs Global
Income
Builder
Portfolio
Base
Shares1.25% Nil Nil Variable
Other
Currency
Shares
1.25% Nil Nil Variable
Goldman
Sachs US
Real Estate
Balanced
Portfolio
Base
Shares1.50% Nil Nil Variable
Other
Currency
Shares
1.50% Nil Nil Variable
27
PortfoliosShare
Class
Management
Fee (per
annum)
Distribution
Fee (per
annum)
Shareholder
Services Fee
(per annum)
Operating
Expenses Note 1
(per
annum)
Specialist Portfolios
Goldman
Sachs Global
Strategic
Macro Bond
Portfolio
Base (Flat)
Shares1.30% Nil Nil Variable
Other
Currency
(Flat)
Shares
1.30% Nil Nil Variable
Goldman
Sachs Global
Absolute
Return
Portfolio
Base
Shares1.50% Nil Nil Variable
Other
Currency
Shares
1.50% Nil Nil Variable
Note:
1. Based on the Fund accounts for the financial year ended 30 November 2016, the
operating expenses of each Portfolio are expected to exceed 0.1% of the Portfolios
asset value. Each Portfolio pays transaction costs, including taxes and brokerage
commissions, each time it buys and sells securities or instruments and may also pay
Borrowing Costs. You should note that these costs are not reflected in a Portfolios
operating expenses, but will be reflected in its performance.
Please see Section 19 Fees and Expenses of the Luxembourg Prospectus for a
description of the fees and expenses payable by each Portfolio. Please see the relevant
Supplement to the Luxembourg Prospectus for a table setting out the fees, including
Management Fee, Distribution Fee and Operating Expenses, relating to other Share
Classes of the Portfolios.
Fees charged by reference to the Portfolios, or in the case of fees relating to a Class, the
Class average daily net asset value are charged by reference to the relevant net asset
value which may be calculated using swing pricing as described in Paragraph 9.3 of this
Singapore Prospectus.
8. RISK FACTORS
In general, each Portfolio is intended for long-term investors who can accept the risks
associated with investing in a particular Portfolio. You should be aware that the value of
the Shares may fall as well as rise. You may not get back the amount initially invested,
and income, if any, may fluctuate.
The following risk considerations detail particular risks associated with an investment in
the Fund, which you are encouraged to discuss with your professional advisers. It does
not purport to be a comprehensive summary of all of the risks associated with an
investment in the Fund.
28
8.1 Market risk
The value of assets in a Portfolio is typically dictated by a number of factors, including
political, market and general economic conditions. Deterioration or uncertainty regarding
any of these conditions may result in declines in the market values of actual or potential
investments, and/or increased illiquidity of investments.
A Portfolio may be adversely affected by deteriorations in the financial markets and
economic conditions throughout the world, some of which may magnify the risks described
herein and have other adverse effects. Governments from time to time intervene, directly
and by regulation, in certain markets. Such intervention often is intended directly to
influence prices and may, together with other factors, cause some or all of such markets to
move rapidly in the same direction.
Deterioration of market conditions or uncertainty regarding economic markets generally
can result in declines in the market values of actual or potential investments, or increased
illiquidity of investments. Such declines or illiquidity could lead to losses and diminished
investment opportunities for a Portfolio, could prevent the Portfolio from successfully
meeting its investment objectives or could require the Portfolio to dispose of investments
at a loss while such unfavourable market conditions prevail.
To the extent that any such disruptions occur, the consequences described above
(including declines in market values and illiquidity of investments) may affect any or all of
the markets with which a Portfolio invests simultaneously, which could have a material
adverse effect on the Portfolio and its investments. In addition, any such further market
disruptions may also result in further changes to regulatory requirements or other
government intervention. Such regulations may be implemented on an emergency basis,
which may suddenly prevent the Portfolios from implementing certain investment
strategies or from managing the risk of its outstanding positions.
8.2 Equity risk
A Portfolio which mostly invests in shares and similar instruments typically experiences
higher levels of price fluctuations than fixed income securities.
8.3 Credit risk
The failure of a counterparty or an issuer of a financial asset held within a Portfolio to meet
its payment obligations will have a negative impact on the Portfolio.
8.4 High yield risk
High-yield instruments, meaning investments which pay a high amount of income
generally involve greater credit risk and sensitivity to economic developments, giving rise
to greater price movement than lower yielding instruments.
8.5 Interest rate risk
When interest rates rise, bond prices fall, reflecting the ability of investors to obtain a more
attractive rate of interest on their money elsewhere. Bond prices are therefore subject to
movements in interest rates which may move for a number of reasons, political as well as
economic.
8.6 Liquidity risk
A Portfolio may not always find another party willing to purchase an asset that the Portfolio
wants to sell which could impact the Portfolios ability to meet redemption requests on
demand.
29
8.7 Emerging markets risk
Emerging markets are likely to bear higher risk due to lower liquidity and possible lack of
adequate financial, legal, social, political and economic structures, protection and stability
as well as uncertain tax positions. Emerging market shares and similar instruments and
emerging market fixed income securities will typically experience higher price fluctuations
than those in developed markets.
8.8 Leverage risk
Leverage occurs when the economic exposure created by the use of derivatives is greater
than the amount invested, or when borrowings are made on a temporary basis. A
leveraged Portfolio may result in large fluctuations in the value of the Portfolio and
therefore entails a high degree of risk including the risk that losses may be substantial.
The Fixed Income Portfolios, Flexible Portfolios and Specialist Portfolios may operate with
a significant amount of leverage.
8.9 Contingent convertible bond (CoCos) risk
Investment in this particular type of bond may result in material losses to the Portfolio
based on certain trigger events. The existence of these trigger events creates a different
type of risk from traditional bonds and may more likely result in a partial or total loss of
value or alternatively they may be converted into shares of the issuing company which
may also have suffered a loss in value.
8.10 Derivatives risk
Derivative instruments are highly sensitive to changes in the value of the underlying asset
that they are based on. Certain derivatives may result in losses greater than the amount
originally invested.
8.11 Writing (selling) call options
In exchange for up front income from selling the call option, the Portfolios gains from an
increase in the market value of underlying shares may be limited where sold call options
are exercised. The Investment Adviser will generally seek to balance the level of income
generation with the potential for limiting any capital gains, however in a rising market the
Portfolio could underperform.
8.12 Operational risk
Material losses to a Portfolio may arise as a result of human error, system and/or process
failures, inadequate procedures or controls.
8.13 Custodian risk
Insolvency, breaches of duty of care or misconduct of a custodian or sub-custodian
responsible for the safekeeping of a Portfolios assets can result in loss to the Portfolio.
8.14 Volatility risk
An investment in the Goldman Sachs US Real Estate Balanced Portfolio can expose you
to higher volatility levels than is normally associated with balanced or non-sector specific
diversified investment strategies, therefore the value of an investment into the Portfolio
may be subject to significant changes in the short term.
30
8.15 Correlation risk
The link between the value of the Goldman Sachs Global Absolute Return Portfolio and
oil, gas and energy prices may vary significantly, particularly over short periods of time. An
investment in the Goldman Sachs Global Absolute Return Portfolio should not be used to
obtain exposure to movement in the price of oil.
8.16 Historical performance data risk
The composition of the strategies employed for the Goldman Sachs Global Absolute
Return Portfolio is determined by reference to historical data. However, past performance
is not an indicator of future performance. The performance of a market may differ to that
indicated by a mathematical formula based on historical data, which in turn may adversely
affect the value of your investment.
8.17 Investment in China risk
A Portfolios operations and financial results could be adversely affected by adjustments in
the PRCs state plans, political, economic and social conditions, changes in the policies of
the PRC government and laws and regulations, in particular where investments are made
through any of the investment regime introduced by the PRC government.
8.18 Currency exposure risk
You should be aware that a variety of techniques (please see Appendix C Special
Investment Techniques together with Section 4 Risk Considerations in the Luxembourg
Prospectus) may be utilised in order to implement the required currency hedge and that
such techniques involve additional risks.
You should be aware that the risks related to the techniques employed will be borne by the
relevant Share Class. Any losses sustained in respect of such techniques will therefore be
attributed to the relevant Share Class.
You should be aware that any costs incurred as a result of the implementation of such
currency hedge will be borne by the relevant Share Class.
Currency hedged share classes of a Portfolio are not intended to hedge the underlying
portfolio currency exposures back to an investor's base currency, resulting in the investor
taking speculative currency positions, which may be volatile and may have a material
impact on an investor's returns.
8.19 Singapore dollar exchange rate risk
The Base Currency of the Portfolios is not Singapore Dollars and the Share Classes may
not be denominated in Singapore dollars (foreign currency share class).
If you measure the value of your investment in a Portfolio in Singapore dollars, you may be
exposed to additional risks of changes in the exchange rates of the currency of the
Portfolio and relevant foreign currency share class with reference to the Singapore dollar,
which will not be hedged by the Portfolio.
8.20 Others
You should refer to Section 4 Risk Considerations of the Luxembourg Prospectus and
the relevant Supplement for risk considerations detailing particular risks associated with an
investment in the Fund.
31
9. SUBSCRIPTION FOR SHARES
9.1 Subscription Procedure
You may purchase Shares in Singapore through any sub-distributors appointed by the
Distributor to distribute Shares of the Fund in Singapore (Singapore Distributors).
You should apply for Shares using the application form available from your Singapore
Distributor. You should send the properly completed application form, together with any
relevant supporting documents to your Singapore Distributor and pay for the Shares in
such manner as advised by your Singapore Distributor.
You should refer to Section 13 Purchase of Shares of the Luxembourg Prospectus for
details on the terms and conditions of subscription.
You should also contact your Singapore Distributor to check whether any additional terms
and conditions are imposed by it.
9.2 Minimum Initial Subscription and Minimum Subsequent Subscription
For the Equity Portfolios, Fixed Income Portfolios and Flexible Portfolios:
USD,EUR,SGD,AUD* GBP JPY
Base Shares 5,000 3,000 500,000
Other Currency
Shares5,000 3,000 500,000
*The amounts listed are in the relevant currency.
For the Specialist Portfolios:
USD, EUR, SGD,
AUD*GBP JPY
Base Shares and
Base (Flat)
Shares
5,000 5,000 500,000
Other Currency
Shares and Other
Currency (Flat)
Shares
5,000 5,000 500,000
*The amounts listed are in the relevant currency.
The minimum initial subscription for Shares in Shares denominated in other currencies
and in other Share Classes issued in respect of a Portfolio is set out in the relevant
Supplement to the Luxembourg Prospectus (in the tables under Goldman Sachs Funds
Minimum Investment Amount Table in Supplement I to the Luxembourg Prospectus and
under Share Class Table in Supplement II to the Luxembourg Prospectus).
Subsequent subscriptions for Shares, other than through reinvestment of dividends, must
ordinarily equal or exceed a Portfolios minimum initial subscription amount, although
certain Portfolios may introduce lower subsequent subscription amounts as specified in
the relevant Supplement.
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Singapore Distributors may impose different minimum amount requirements on their
clients and you should check with your Singapore Distributor whether it imposes any such
requirements.
9.3 Dealing Deadline and Net Asset Value
The Fund determines the net asset value of its Shares on a forward pricing basis. This
means that it is not possible to know in advance the net asset value per Share at which
Shares will be bought.
Shares are purchased at the net asset value of the relevant Share Class which will vary
from day to day.
You should refer to Section 17 Determination of Net Asset Value of the Luxembourg
Prospectus for information on the calculation of the net asset value. As described in that
Section, on any Business Day the Management Company may determine, in conformity
with the guidelines established by the Board of Directors, to apply swing pricing (to include
such reasonable factors as it sees fit) to the net asset value per Share of a particular
Portfolio. This method of net asset value calculation is intended to pass the estimated
costs of underlying investment activity of the Portfolio to the active Shareholders by
adjusting the net asset value of the relevant Share and thus to protect the Portfolios long-
term Shareholders from costs associated with ongoing subscription and redemption
activity.
Swing pricing may take account of trading spreads on the Portfolios investments, the
value of any duties and charges incurred as a result of trading and may include an
allowance for market impact. Where, based on the prevailing market conditions and the
level of subscriptions or redemptions requested by Shareholders or potential Shareholders
in relation to the size of the relevant Portfolio, a particular Portfolio applies swing pricing,
the Portfolio may be valued either on a bid or offer basis.
Because the determination of whether to value the Portfolios net asset value on an offer
or bid basis is based on the net transaction activity of the relevant day, Shareholders
transacting in the opposite direction of the Portfolios net transaction activity may benefit at
the expense of the other Shareholders in the Portfolio. A Shareholders shareholding may
be diluted when net subscriptions or redemptions are below the adjustment threshold. In
addition, the Portfolios net asset value and short-term performance may experience
greater volatility as a result of swing pricing.
You should be aware that, the factor used to apply swing pricing (swing factor) will
generally not exceed 2% of the net asset value of the relevant Share Class of the Portfolio,
unless otherwise stated in the relevant Supplement to the Luxembourg Prospectus. The
swing factors applied to individual Portfolios will be reviewed by the Investment Adviser on
a periodic basis in order to verify their appropriateness in light of prevailing market
conditions.
You may purchase Shares on any Purchase Date. Please note that a Singapore business
day may not always be a Purchase Date and you should refer to the Definitions section of
the Luxembourg Prospectus for a definition.
The cut-off time imposed by the Fund is 2:00pm Central European time on a Purchase
Date.
To purchase Shares at the net asset value as of a particular Purchase Date, you must
submit your subscription form to your Singapore Distributor before the Singapore cut-off
time imposed by your Singapore Distributor for that Purchase Date.
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You should check with your Singapore Distributor what the applicable Singapore cut-off
time is.
If your subscription form is not received before the Singapore cut-off time for a particular
Purchase Date, your subscription application will ordinarily be processed on the next
Purchase Date.
You should also confirm with your Singapore Distributor the dealing procedures prescribed
by it.
9.4 Numerical Example of How Shares are Allotted
The following is an illustration of the number of Shares that will be issued based on an
initial subscription of $1,000, a notional net asset value of $1.00 per Share and a notional
Sales Charge of 5.5% and assuming no other fees and charges on the subscription is
payable. The notional net asset value and notional Sales Charge are for illustrative
purposes only, and the actual net asset value as well as the applicable Sales Charge may
be different:
$1,000 - $55 = $945 $1.00 = 945.000
Shares
Initial
Subscription
Notional
Sales
Charge of
5.5%
Net
Subscription
Notional
Net
Asset
Value per
Share
Shares
Issued
9.5 Confirmation of purchase
The Fund will normally send written confirmation detailing the purchase of Shares to
Shareholders soon after the net asset value per Share of the relevant Share Class on the
relevant Purchase Date is determined and published in Luxembourg. You should contact
your Singapore Distributor for details on when you may expect to receive a confirmation of
ownership of the number of Shares issued to you as the trade confirmation policy may
vary amongst Singapore Distributors.
9.6 Cancellation of Subscription
The Fund does not offer you the right to cancel your subscription into the Portfolios.
You may wish to check with your Singapore Distributor whether it will allow you to cancel
your subscription into the Portfolios.
10. REGULAR SAVINGS PLAN (RSP)
Investment into the Portfolios by way of a regular savings plan (RSP) is currently not
offered by the Fund.
You may wish to check with your Singapore Distributor whether it offers any RSP for any
of the Portfolios and, if so, the applicable terms and conditions on which the RSP is being
offered.
11. REDEMPTION OF SHARES
11.1 Redemption Procedure
In general, if you had purchased your Shares through a Singapore Distributor, you should
redeem your Shares through the same Singapore Distributor.
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You may redeem your Shares using the share redemption form available from your
Singapore Distributor. You should send the properly completed redemption form, together
with such documents as may be required by your Singapore Distributor, to your Singapore
Distributor.
You should refer to Section 14 Redemption of Shares of the Luxembourg Prospectus for
details on the terms and conditions of redemptions (including when redemption may be
temporarily suspended or deferred).
You should also contact your Singapore Distributor to check whether any additional terms
and conditions are imposed by it.
11.2 Minimum Holding and Minimum Redemption
Partial redemptions must ordinarily equal or exceed a Portfolios and/or Share Classes
minimum initial subscription amount. The minimum initial subscription amounts are set out
in the currency of denomination of the relevant Share Class in the tables in the relevant
Supplement to the Luxembourg Prospectus
There is currently no minimum holding imposed by the Fund. However, if the net asset
value of Shares held by a Registered Shareholder falls below the minimum investment
level for the relevant Share Class, such Shares may, in the absolute discretion of the
Board of Directors but subject to Luxembourg law, be mandatorily redeemed (please refer
to Paragraph 14.2 Mandatory Sale or Redemption of the Luxembourg Prospectus for
further information).
However, please note that Singapore Distributors may impose a minimum holding and
may impose different minimum redemption amounts on their clients and you should check
with your Singapore Distributor whether it will impose any such requirements on you.
11.3 Dealing Deadline and Net Asset Value
The Fund determines the net asset value of its Shares on a forward pricing basis. This
means that it is not possible to know in advance the net asset value per Share at which
Shares will be redeemed.
Shares are redeemed at the net asset value of the relevant Share Class which will vary
from day to day.
You should refer to Section 17 Determination of Net Asset Value of the Luxembourg
Prospectus for information on the calculation of the net asset value. As described in that
Section (and in Paragraph 9.3 of this Singapore Prospectus), on any Business Day the
Management Company may determine, in conformity with the guidelines established by
the Board of Directors, to apply swing pricing (to include such reasonable factors as it
sees fit) to the net asset value per Share of a particular Portfolio.
You may redeem your Shares on any Redemption Date, at the prevailing net asset value
per Share of the relevant Share Class of the Portfolio. Please note that a Singapore
business day may not always be a Redemption Date and you should refer to the
Definitions section of the Luxembourg Prospectus for a definition.
The cut-off time imposed by the Fund is 2:00pm Central European time on a Redemption
Date.
To redeem your Shares at the net asset value as of a particular Redemption Date, you
must submit your redemption form to your Singapore Distributor before the Singapore cut-
off time imposed by your Singapore Distributor for that Redemption Date.
You should check with your Singapore Distributor what the applicable Singapore cut-off
time is.
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If your redemption form is not received before the Singapore cut-off time for a particular
Redemption Date, your redemption request will ordinarily be processed on the next
Redemption Date.
You should also confirm with your Singapore Distributor the dealing procedures prescribed
by it.
11.4 Numerical example of calculation of redemption proceeds
The following is an illustration of the redemption proceeds payable based on a redemption
request for 1,000.000 Shares and a notional net asset value of $1.10 per Share and
assuming no other fees and charges on the redemption is payable. The notional net asset
value is for illustrative purposes only, and the actual net asset value may be different:
1,000.000
Shares
x $1.10 = $1,100 - $0 = $1,100
Redemption
request
Notional Net
Asset Value
per Share
Gross
Redemption
Proceeds
Redemption
Charge*
Net
Redemption
Proceeds
*There is currently no Redemption Charge payable.
11.5 Payment of Redemption Proceeds
Except as otherwise stated in the relevant Supplement, the Fund intends to normally pay
redemption proceeds, less any tax or duty imposed on the redemption of the Shares within
three (3) Business Days following the relevant Redemption Date.
You should refer to Section 14 Redemption of Shares of the Luxembourg Prospectus for
further information on the payment of redemption proceeds.
If you had purchased your Shares through your Singapore Distributor, your redemption
proceeds will normally be paid to your Singapore Distributor. You will therefore receive
your redemption proceeds in such manner and within such period as agreed with your
Singapore Distributor.
You should therefore contact your Singapore Distributor for details on the payment policy
as the payment policy amongst the Singapore Distribu