NEW YORK--(BUSINESS WIRE)--Goldman Sachs Asset Management (“GSAM”) today announced the launch of a new series of target date retirement funds. As part of their long-term strategy to provide clients with a full range of retirement investment solutions, GSAM is offering a suite of eight target date mutual funds in 5-year increments ranging from retirement years 2020 to 2055.
GSAM has re-entered the target date space via the adoption of the Madison Target Retirement Funds, four target date funds whose track records date back to 2007, from Madison Asset Management, LLC (Madison) a target date manager with deep asset allocation expertise and a strong history of producing competitive returns. By combining Madison’s track record with GSAM’s distribution capabilities, GSAM seeks to deliver a differentiated solution primed to meet today’s fiduciary challenges and retirement investor needs.
“Consultants, advisors and plan sponsors are re-examining their process for evaluating target date funds following guidance from the Department of Labor,” said David A. Solomon, National Sales Manager for Defined Contribution Investment Only at GSAM. “Understanding and managing conflicts of interest has become top of mind for plan sponsors. The Goldman Sachs Target Date Portfolios seek to provide an objective approach to defining the universe of underlying funds used in portfolio design and other unique features we believe sponsors will value to address today’s fiduciary challenges.”
The series has two distinct features that GSAM believes sets it apart from a competitive field:
| 1) | The open architecture approach to investment selection provides a broader opportunity set which is not limited to affiliated funds. This may be attractive to sponsors who are concerned with managing conflicts of interest and avoiding manager concentration. | |
| 2) | Active asset allocation allows the investment team to reflect current market views using a tactical allocation range around the glide path to help manage market volatility and longevity risk over the long-term investment horizon. |
The GS target date fund glide path is managed “to retirement” with a more conservative allocation to equities compared to the Morningstar industry average for target date funds1. The team is focused on the participant experience and seeks to deliver a more predictable outcome to retirement investors.
“Investors seek simple and professionally managed solutions to help them achieve their retirement goals,” said Rachel Schnoll, Head of Product Strategy at GSAM. “Our partnership with Madison allows us to enhance our DC fund line-up with a target date series with the attributes today’s investors are seeking.”
GSAM strengthened the series by launching four additional target date funds on the 5-year vintages. GSAM will be the investment advisor and retain Madison as the sub-advisor to the funds. David Hottmann and Patrick Ryan have been managing the original Madison series since 2009 and will continue on as co-portfolio managers.
The Funds launched on August 22, 2016 and are offered across six share classes: Class A, R, IR, Institutional, Service and R6. For more information about Goldman Sachs Target Date Portfolios please visit GSAMFUNDS.com/TargetDate.
1As of August 22, 2016
Risk Considerations:
The Goldman Sachs 2020, 2025, 2030, 2035, 2040, 2045, 2050, and 2055 Target Date Portfolios invest in shares of exchange-traded funds and other registered investment companies (“underlying funds”) according to an asset allocation strategy developed for investors planning to retire in or within a few years of the applicable target date. Over time, the Portfolios’ asset allocation will become more conservative. The Portfolios are subject to the risk factors of the underlying funds in direct proportion to its investments in those underlying funds, and the ability of the Portfolios to meet their investment objectives are directly related to the ability of the underlying funds to meet their investment objectives, as well as the allocation among those underlying funds by the Sub-Adviser. An underlying fund is subject to the risks associated with its investments, including (as applicable) those associated with equity, fixed income, foreign and money market investments generally. From time to time, the underlying funds in which the Portfolio invests, and the size of the investments in the underlying funds, may change. Because each Portfolio is subject to the underlying fund expenses as well as its own expenses, the cost of investing in the Portfolio may be higher than investing in a mutual fund that only invests directly in stocks and bonds.
Disclosures:
Equity securities are more volatile than bonds and subject to greater risks. Small and mid-sized company stocks involve greater risks than those customarily associated with larger companies. Bonds are subject to interest rate, price and credit risks. Prices tend to be inversely affected by changes in interest rates. Investments in foreign securities entail special risks such as currency, political, economic, and market risks. These risks are heightened in emerging markets. Target Date Funds are subject to the risks associated with the underlying funds in which they invest. These risks change over time as the fund’s asset allocation strategy adjusts as it approaches its target date. There is no assurance any target date fund will achieve its investment objective. The principal value of an investment in a target date fund is not guaranteed at any time including at its target date.
A summary prospectus, if available, or a Prospectus for the Fund containing more information may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling 1-800-526-7384. Please consider a fund’s objectives, risks, and charges and expenses, and read the summary prospectus, if available, and the Prospectus carefully before investing. The summary prospectus, if available, and the Prospectus contains this and other information about the Fund.
The Goldman Sachs 2025, 2035, 2045 and 2055 Target Date Portfolios are newly organized and do not have an operating history.
Investors can lose money by investing in the Fund. For additional risk considerations, please see the above disclosures.
Goldman, Sachs & Co. is the distributor of the Goldman Sachs Funds.
Compliance code: 63786-OTU
Date of first use: September 6, 2016
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2016 Goldman Sachs. All rights reserved.
NOT FDIC INSURED. MAY
LOSE VALUE. NO BANK GUARANTEE