Goldman Sachs Growth Funds
Wealth is created through the long-term ownership of a growing business
GOLDMAN SACHS GROWTH FUNDS: KEY DIFFERENTIATORS 27-year track record * Our team has successfully managed the Goldman Sachs Growth Strategy through a variety of market cycles and environments. Team driven investment process Team discussions drive research opinions, while CIOs are accountable for portfolio construction. All Growth Funds are managed by an experienced, 18-person team according to the same strategy and philosophy. Broad, deep, industry-focused research capability Team is organized by industry. We leverage a comprehensive knowledge base across the market cap spectrum and evaluate companies within the context of the entire industry. Historically strong, consistent, long-term performance driven by stock selection Our consistent returns are derived from successful, diversified stock selection across many industries. *As of February 29, 2008
The Goldman Sachs Growth Strategy Investment Philosophy Goldman Sachs Asset Management Growth Team’s investment philosophy is that wealth is created through the long-term ownership of a growing business. Tested and proven through changing market conditions since 1981, our Growth strategy is based on three principles: 1. Buy the business: Throughout the investment process, we view each purchase as if we are private investors and are going to buy the entire business and own it for many years. 2. Buy a high-quality growth business: We attempt to invest in companies that meet our criteria for a high-quality growth investment:
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Established brand name
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Predictable, sustainable growth
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Dominant market share
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Favorable demographic trends
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Pricing power
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Long product life-cycle
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Recurring revenue stream
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Enduring competitive advantage
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High return on invested capital
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Excellent management
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Free cash flow
3. Buy at an attractive valuation: We seek to purchase the companies in our portfolio at what we believe are attractive valuations relative to the long-term growth of the business. Within this framework, we pay attention to valuation when making investment decisions. By investing in high-quality businesses that we believe are strategically positioned for long-term growth, we seek to: 쐍
Deliver strong absolute returns to investors over time
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Provide superior performance versus the growth indices, the broad market and other growth managers on a consistent basis
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Derive excess returns through superior stock selection
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Manage risk through disciplined portfolio construction and in-depth knowledge of our companies
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Consistently apply our proven long-term philosophy, strategy and process
What are the Goldman Sachs Growth Funds? The Goldman Sachs Growth Team manages seven high quality growth mutual fund options that span the market capitalization spectrum:
Morningstar Style Grid Value Large
Fund Category
Goldman Sachs Fund Name
Inception Date
# of Holdings
Wtd. Avg. Mkt. Cap
Benchmark
Large Cap Growth
Capital Growth Strategic Growth Concentrated Growth
April 1990 May 1999 Sept. 2002
71 53 34
$60.1B $67.8B $57.5B
Russell 1000 Growth
Mid Cap Growth
Growth Opportunities
May 1999
71
$6.3B
Russell Midcap Growth
Small/Mid Cap Growth
Small/Mid Cap Growth
June 2005
102
$2.8B
Russell 2500 Growth
All Cap Growth
All Cap Growth
Feb. 2008
113*
$44.2B*
Russell 3000 Growth
SpecialtyTechnology
Tollkeeper
Oct. 1999
36
$48.1B
NASDAQ Composite
Growth
Mid
Small
As of January 31, 2008. *As of February 1, 2008. Holdings and allocations shown are unaudited, and may not be representative of current or future investments. Holdings and allocations may not include the Fund's entire investment portfolio, which may change at any time. Fund holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities. Please see Additional Information for more disclosures.
For more information on the Goldman Sachs Growth Funds, please contact your Investment Professional.
Risk Considerations: The All Cap Growth Fund invests in U.S. equity investments in small-, mid- and large-cap issuers and is subject to market risk so that the so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. Investments in the securities of small and mid capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. The Fund may also invest in foreign securities and emerging market securities. Foreign and emerging market securities may be more volatile than investment in U.S. securities and will be subject to the risks of currency fluctuations and political developments. The Capital Growth Fund invests primarily in large-capitalization U.S. equity investments and is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. The Strategic Growth Fund invests primarily in large-capitalization U.S. equity investments and is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. The Concentrated Growth Fund invests primarily in U.S. equity investments and is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. The Fund may invest in securities of any capitalization, including mid-cap and small-cap companies, which involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. The Fund is “non-diversified” under the Investment Company Act of 1940 and may invest a large percentage of its assets in fewer issuers than “diversified” mutual funds. Because of the smaller number of stocks generally held in the Fund’s portfolio, the Fund may be subject to greater risks than a more diversified fund. A change in the value of any single holding may affect the overall value of the portfolio more than it would affect a diversified fund that holds more investments. The Growth Opportunities Fund invests in U.S. equity investments with a primary focus on mid-cap companies. The Fund is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. The securities of midcapitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. The Small/Mid Cap Growth Fund invests in equity investments with a primary focus on small- and mid-cap companies. The securities of small and mid capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. The Fund may also invest in foreign securities and emerging market securities. Foreign and emerging market securities may be more volatile than investment in U.S. securities and will be subject to the risks of currency fluctuations and political developments. The Tollkeeper FundSM invests in equity securities of high quality technology, media or service companies that adopt or use technology to improve their cost structure, revenue opportunities or competitive advantage. The Tollkeeper Fund is subject to greater risk of loss as a result of adverse economic, business or other developments than if its investments were diversified across different industry sectors. Securities of issuers held by the Fund may lack sufficient market liquidity to enable the Fund to sell the securities at an advantageous time or without a substantial drop in price. Because the Fund invests in “Tollkeeper” companies, its net asset value may fluctuate substantially over time and its performance may be substantially different from the returns of the broader stock market. Goldman Sachs Tollkeeper FundSM is a registered service mark of Goldman, Sachs & Co. The Capital Growth, Strategic Growth, Concentrated Growth, Growth Opportunities and Tollkeeper Funds may invest in foreign securities, which may be more volatile and less liquid than investment in U.S. securities and will be subject to the risks of currency fluctuations and sudden economic or political developments. At times, the Funds may be unable to sell certain of its portfolio securities without a substantial drop in price, if at all. The Funds also may participate in the Initial Public Offering (IPO) market, and a portion of the Funds’ returns consequently may be attributable to its investment in IPOs. The market value of IPO shares may fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, and the small number of shares available for trading and limited information about the issuer. When a fund’s asset base is small, IPOs may have a magnified impact on the fund’s performance. As a fund’s assets grow, it is probable that the effect of the fund’s investment in IPOs on its total returns may not be as significant, which could reduce the fund’s performance. Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may, without GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient.
A prospectus for the Goldman Sachs Funds containing more complete information may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling 800-526-7384. Please consider a fund's objectives, risks, and charges and expenses, and read the prospectus carefully before investing. The prospectus contains this and other information about the Fund. Goldman, Sachs & Co. is the distributor of the Goldman Sachs Funds. Copyright © 2008 Goldman, Sachs & Co. All Rights Reserved. Date of first use: April 22, 2008. 6491.MF / 5K / GROWBRO / 04-08
NOT FDIC-INSURED
May Lose Value No Bank Guarantee