Class A: GARTX Class C: GCRTX Institutional: GJRTX Class IR: GSRTX Class R: GRRTX
Before you invest, you may want to review the Goldman Sachs Absolute Return Tracker Funds (the Fund) Prospectus, which contains more information about the Fund and its risks. You can find the Funds Prospectus and other information about the Fund, including the Statement of Additional Information (SAI) and most recent annual reports to shareholders, online at www.goldmansachsfunds.com/summaries. You can also get this information at no cost by calling 800-621-2550 for Institutional shareholders, 800-526-7384 for all other shareholders or by sending an e-mail request to gs-funds-document-requests@gs.com. The Funds Prospectus and SAI, both dated April 30, 2013, as amended to date, are incorporated by reference into this Summary Prospectus.
INVESTMENT OBJECTIVE |
The Goldman Sachs Absolute Return Tracker Fund (the Fund) seeks to deliver long-term total return consistent with investment results that approximate the return and risk patterns of a diversified universe of hedge funds.
FEES AND EXPENSES OF THE FUND |
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Goldman Sachs Funds. More information about these and other discounts is available from your financial professional and in Shareholder GuideCommon Questions Applicable to the Purchase of Class A Shares beginning on page 99 of the Prospectus and Other Information Regarding Maximum Sales Charge, Purchases, Redemptions, Exchanges and Dividends beginning on page B-130 of the Funds SAI.
SHAREHOLDER FEES (fees paid directly from your investment)
Class A | Class C | Institutional | Class IR | Class R | ||||||||||
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
5.50 | % | None | None | None | None | ||||||||
Maximum Deferred Sales Charge (Load) (as a percentage of the lower of original purchase price or sale proceeds)1 |
None | 1.00 | % | None | None | None |
ANNUAL PORTFOLIO OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Class A | Class C | Institutional | Class IR | Class R | ||||||||||||||||
Management Fees |
1.10 | % | 1.10 | % | 1.10 | % | 1.10 | % | 1.10 | % | ||||||||||
Distribution and Service (12b-1) Fees |
0.25 | % | 1.00 | % | None | None | 0.50 | % | ||||||||||||
Other Expenses |
0.24 | % | 0.24 | % | 0.09 | % | 0.24 | % | 0.24 | % | ||||||||||
Total Annual Fund Operating Expenses |
1.59 | % | 2.34 | % | 1.19 | % | 1.34 | % | 1.84 | % | ||||||||||
Expense Limitation2 |
(0.04 | )% | (0.04 | )% | (0.04 | )% | (0.04 | )% | (0.04 | )% | ||||||||||
Total Annual Fund Operating Expenses After Expense Limitation |
1.55 | % | 2.30 | % | 1.15 | % | 1.30 | % | 1.80 | % |
1 | A contingent deferred sales charge (CDSC) of 1% is imposed on Class C Shares redeemed within 12 months of purchase. |
2 | The Investment Adviser has agreed to reduce or limit Other Expenses (excluding acquired fund fees and expenses, transfer agency fees and expenses, taxes, dividend and interest expenses on short sales, interest, brokerage fees, litigation, indemnification, shareholder meeting and other extraordinary expenses) to 0.014% of the Funds average daily net assets through at least April 30, 2014, and prior to such date the Investment Adviser may not terminate the arrangement without the approval of the Board of Trustees. The Funds Other Expenses may be further reduced by any custody and transfer agency fee credits received by the Fund. |
2 SUMMARY PROSPECTUS GOLDMAN SACHS ABSOLUTE RETURN TRACKER FUND
EXPENSE EXAMPLE |
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in Class A, Class C, Institutional, Class IR and/or Class R Shares of the Fund for the time periods indicated and then redeem all of your Class A, Class C, Institutional, Class IR and/or Class R Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same (except that the Example incorporates the expense limitation arrangement for only the first year). Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Class A Shares |
$ | 699 | $ | 1,021 | $ | 1,364 | $ | 2,332 | ||||||||
Class C Shares |
||||||||||||||||
Assuming complete redemption at end of period |
$ | 333 | $ | 727 | $ | 1,247 | $ | 2,673 | ||||||||
Assuming no redemption |
$ | 233 | $ | 727 | $ | 1,247 | $ | 2,673 | ||||||||
Institutional Shares |
$ | 117 | $ | 374 | $ | 650 | $ | 1,440 | ||||||||
Class IR Shares |
$ | 132 | $ | 421 | $ | 730 | $ | 1,609 | ||||||||
Class R Shares |
$ | 183 | $ | 575 | $ | 992 | $ | 2,155 |
PORTFOLIO TURNOVER |
The Fund pays transaction costs when it buys and sells securities or instruments (i.e., turns over its portfolio). A high rate of portfolio turnover may result in increased transaction costs, including brokerage commissions, which must be borne by the Fund and its shareholders, and is also likely to result in higher short-term capital gains for taxable shareholders. These costs are not reflected in annual fund operating expenses or in the expense example above, but are reflected in the Funds performance. The Funds portfolio turnover rate for the fiscal year ended December 31, 2012 was 79% of the average value of its portfolio.
PRINCIPAL STRATEGY |
The Funds Investment Adviser believes that hedge funds derive a large portion of their returns from exposure to sources of market risk (Market Exposures). In seeking to meet its investment objective, the Fund uses a quantitative methodology in combination with a qualitative overlay to seek to identify the Market Exposures that approximate the return and risk patterns of specific hedge fund sub-strategies. The hedge fund sub-strategies whose returns the Fund seeks to approximate include, but are not limited to, Equity Long Short, Event Driven, Relative Value, and Macro sub-strategies (each a Hedge Fund Sub-Strategy). The Funds quantitative methodology seeks to allocate the Funds exposure to each Hedge Fund Sub-Strategy such that the Funds investment results approximate the return and risk patterns of a diversified universe of hedge funds. The Fund may seek to establish long and/or short positions in a multitude of Market Exposures, including but not limited to:
n | U.S. and non-U.S. (including emerging market) equity indices; |
n | U.S. and non-U.S. (including emerging market) fixed income indices; |
n | Credit indices; |
n | Interest rates; |
n | Commodity indices; |
n | Foreign currency exchange rates; |
n | Baskets of top positions held by hedge funds; |
n | Volatility; and |
n | Market momentum / trends. |
The Fund invests in instruments that the Investment Adviser believes will assist the Fund in gaining exposure to the Market Exposures. The instruments in which the Fund may invest include, but are not limited to:
n | Equity securities; |
n | Futures (including equity index futures, interest rate futures, and bond futures); |
n | Swaps (including total return swaps and credit default swaps on indices); |
n | Options (including listed equity index put options); |
n | Structured notes (including commodity linked notes); |
n | Exchange-traded funds (ETFs); |
n | Forward contracts (including currency forward contracts on developed and emerging markets currencies); |
n | U.S. government securities, including agency debentures, and other high quality debt securities; and |
n | Cash equivalents. |
The Fund may from time to time hold foreign currencies. Additionally, as a result of the Funds use of derivatives, the Fund may also hold significant amounts of U.S. Treasury or short-term investments, including money market funds, repurchase agreements, cash and time deposits.
The weighting of a Market Exposure within the Fund may be positive or negative. A negative weighting will result from establishing a short position with respect to a Market Exposure. As a result of the Funds negative weightings in various Market Exposures from time to time, the Funds net asset value (NAV) per share may decline during certain periods, even if the value of any or all of the Market Exposures increases during that time. Additionally, the sum of the Funds target weightings to each Market Exposure may not equal 100%.
The Investment Adviser may, in its discretion, make changes to the quantitative methodology used by the Fund, and the Fund may use other proprietary methodologies based on the Investment Advisers proprietary research.
The Fund does not invest in hedge funds.
3 SUMMARY PROSPECTUS GOLDMAN SACHS ABSOLUTE RETURN TRACKER FUND
PRINCIPAL RISKS OF THE FUND |
Loss of money is a risk of investing in the Fund. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any government agency. The Fund should not be relied upon as a complete investment program. There can be no assurance that the Fund will achieve its investment objective. Investments in the Fund involves substantial risks which prospective investors should consider carefully before investing.
This Funds NAV may fluctuate substantially over time. Because the Fund attempts to approximate the return and risk patterns of a diversified universe of hedge funds, the Funds performance may potentially be lower than the returns of the broader stock market. Accordingly, the Fund should be considered a speculative investment entailing a high degree of risk and is not suitable for all investors.
Absence of Regulation. The Fund engages in over-the-counter (OTC) transactions, which trade in a dealer network, rather than on an exchange. In general, there is less governmental regulation and supervision of transactions in the OTC markets than of transactions entered into on organized exchanges.
Commodity Sector Risk. Exposure to the commodities markets may subject the Fund to greater volatility than investments in more traditional securities. The value of commodity-linked investments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. The prices of energy, industrial metals, precious metals, agriculture and livestock sector commodities may fluctuate widely due to factors such as changes in value, supply and demand and governmental regulatory policies. The commodity-linked investments in which the Fund invests may be issued by companies in the financial services sector, and events affecting the financial services sector may cause the Funds share value to fluctuate.
Derivatives Risk. Loss may result from the Funds investments in forwards, options, futures, swaps, structured securities and other derivative instruments. These instruments may be leveraged so that small changes may produce disproportionate losses to the Fund. Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.
Foreign and Emerging Countries Risk. Foreign securities may be subject to risk of loss because of more or less foreign government regulation, less public information and less economic, political and social stability in the countries in which the Fund invests. Loss may also result from the imposition of exchange controls, confiscations and other government restrictions, or from problems in share registration, settlement or custody. Foreign risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. To the extent that the Fund also invests in securities of issuers located in emerging markets, these risks may be more pronounced.
Investment Style Risk. Different investment styles (e.g., growth, value or quantitative) tend to shift in and out of favor depending upon market and economic conditions and investor sentiment. The Fund employs a quantitative style, and may outperform or underperform other funds that invest in similar asset classes but employ different investment styles.
Liquidity Risk. The Fund may make investments that may be illiquid or that may become less liquid in response to market developments or adverse investor perceptions. Illiquid investments may be more difficult to value. Liquidity risk may also refer to the risk that the Fund will not be able to pay redemption proceeds within the allowable time period because of unusual market conditions, an unusually high volume of redemption requests, or other reasons. To meet redemption requests, the Fund may be forced to sell securities at an unfavorable time and/or under unfavorable conditions.
Management Risk. A strategy used by the Investment Adviser may fail to produce the intended results. The Investment Adviser attempts to execute a complex strategy for the Fund using a proprietary quantitative model. Investments selected using this model may perform differently than expected as a result of the Market Exposures used in the models, the weight placed on each Market Exposure, changes from the Market Exposures historical trends, and technical issues in the construction and implementation of the models (including, for example, data problems and/or software issues). There is no guarantee that the Investment Advisers use of the quantitative model will result in effective investment decisions for the Fund. Additionally, commonality of holdings across quantitative money managers may amplify losses.
4 SUMMARY PROSPECTUS GOLDMAN SACHS ABSOLUTE RETURN TRACKER FUND
Non-Hedging Foreign Currency Trading Risk. The Fund may engage in forward foreign currency transactions for speculative purposes. The Investment Adviser may purchase or sell foreign currencies through the use of forward contracts based on the Investment Advisers judgment regarding the direction of the market for a particular foreign currency or currencies. In pursuing this strategy, the Investment Adviser seeks to profit from anticipated movements in currency rates by establishing long and/or short positions in forward contracts on various foreign currencies. Foreign exchange rates can be extremely volatile and a variance in the degree of volatility of the market or in the direction of the market from that anticipated by the Investment Adviser may produce significant losses to the Fund. Some of these transactions may also be subject to interest rate risk.
Short Position Risk. The Fund may enter into a short position through a futures contract, an option or swap agreement or by shorting a security directly. Taking short positions involves leverage of the Funds assets and presents various risks. If the price of the underlying instrument or market on which the Fund has taken a short position increases, then the Fund will incur a loss equal to the increase in price from the time that the short position was entered into plus any related interest payments or other fees. Taking short positions involves the risk that losses may be disproportionate and may exceed the amount invested.
Tax Risk. The tax treatment of the Funds commodity-linked investments may be adversely affected by future legislation, Treasury Regulations, and/or guidance issued by the Internal Revenue Service (the IRS) that could affect whether income from such investments is qualifying income under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code), or otherwise affect the character, timing and/or amount of the Funds taxable income or any gains and distributions made by the Fund.
U.S. Government Securities Risk. The U.S. government may not provide financial support to U.S. government agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law. U.S. Government securities issued by those agencies, instrumentalities and sponsored enterprises, including those issued by the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks, are neither issued nor guaranteed by the U.S. Treasury and, therefore, are not backed by the full faith and credit of the United States. The maximum potential liability of the issuers of some U.S. Government securities held by the Fund may greatly exceed their current resources, including any legal right to support from the U.S. Treasury. It is possible that issuers of U.S. Government securities will not have the funds to meet their payment obligations in the future.
PERFORMANCE |
The bar chart and table below provide an indication of the risks of investing in the Fund by showing: (a) changes in the performance of the Funds Institutional Shares from year to year; and (b) how the average annual total returns of the Funds Class A, Class C, Institutional, Class IR and Class R Shares compare to those of a broad-based securities market index. The Funds past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at no cost at www.goldmansachsfunds.com/performance or by calling the appropriate phone number on the back cover of the Prospectus.
Performance reflects applicable fee waivers and/or expense limitations in effect during the periods shown.
AVERAGE ANNUAL TOTAL RETURNS
For the period ended December 31, 2012 |
1 Year | Since Inception |
||||||
Class A Shares (Inception 5/30/08) |
||||||||
Returns Before Taxes |
-3.29% | -3.05% | ||||||
Returns After Taxes on Distributions |
-3.36% | -3.16% | ||||||
Returns After Taxes on Distributions and Sale of Fund Shares |
-2.05% | -2.60% | ||||||
Class C Shares (Inception 5/30/08) |
||||||||
Returns Before Taxes |
0.55% | -2.58% | ||||||
Institutional Shares (Inception 5/30/08) |
||||||||
Returns Before Taxes |
2.72% | -1.46% | ||||||
Class IR Shares (Inception 5/30/08) |
||||||||
Returns Before Taxes |
2.51% | -1.61% | ||||||
Class R Shares (Inception 5/30/08) |
||||||||
Returns |
1.98% | -2.10% | ||||||
HFRX Global Hedge Fund Index (reflects no deduction for fees, expenses or taxes)* |
3.52% | -3.26% |
* | The HFRX Global Hedge Fund Index is a trademark of Hedge Fund Research, Inc. (HFR). HFR has not participated in the formation of the Fund. HFR does not endorse or approve the Fund or make any recommendation with respect to investing in the Fund. |
The after-tax returns are for Class A Shares only. The after-tax returns for Class C, Institutional and Class IR Shares, and returns for Class R Shares (which are offered exclusively to employee benefit plans), will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown. In addition, the after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
5 SUMMARY PROSPECTUS GOLDMAN SACHS ABSOLUTE RETURN TRACKER FUND
PORTFOLIO MANAGEMENT |
Goldman Sachs Asset Management, L.P. is the investment adviser for the Fund (the Investment Adviser or GSAM).
Portfolio Managers: Gary Chropuvka, CFA, Managing Director, Head of Quantitative Investment StrategiesCustomized Beta Strategies, has managed the Fund since 2013; and Matthew Hoehn, Vice President, has managed the Fund since 2009.
BUYING AND SELLING PORTFOLIO SHARES |
The minimum initial investment for Class A and Class C Shares is, generally, $1,000. The minimum initial investment for Institutional Shares is, generally, $1,000,000 for individual or certain institutional investors, alone or in combination with other assets under the management of the Investment Adviser and its affiliates. There is no minimum for initial purchases of Class IR and Class R Shares. Those share classes with a minimum initial investment requirement do not impose it on certain employee benefit plans, and Institutional Shares do not impose it on certain investment advisers investing on behalf of other accounts.
The minimum subsequent investment for Class A and Class C shareholders is $50, except for certain employee benefit plans, for which there is no minimum. There is no minimum subsequent investment for Institutional, Class IR or Class R shareholders.
You may purchase and redeem (sell) shares of the Fund on any business day through certain banks, trust companies, brokers, dealers, investment advisers and other financial institutions (Authorized Institutions).
TAX INFORMATION |
The Funds distributions are taxable, and will be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Investments through tax-deferred arrangements may become taxable upon withdrawal from such arrangements.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES |
If you purchase the Fund through an Authorized Institution, the Fund and/or its related companies may pay the Authorized Institution for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the Authorized Institution and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your Authorized Institutions website for more information.
6 SUMMARY PROSPECTUS GOLDMAN SACHS ABSOLUTE RETURN TRACKER FUND
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8 SUMMARY PROSPECTUS GOLDMAN SACHS ABSOLUTE RETURN TRACKER FUND
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