Class A: GSHAX Class C: GSHCX Institutional: GSHIX Service: GSHSX Investor: GSHTX Class R: GSHRX Class R6: GSHUX
Before you invest, you may want to review the Goldman Sachs High Yield 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.gsamfunds.com/mutualfunds. You can also get this information at no cost by calling 800-621-2550 for Institutional, Service and Class R6 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 July 29, 2019, as supplemented to date, are incorporated by reference into this Summary Prospectus.
It is our intention that beginning on January 1, 2021, paper copies of the Funds annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from a Fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and certain communications from a Fund electronically by calling the applicable toll-free number below or by contacting your financial intermediary.
You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a Fund directly with the Funds transfer agent, you can inform the transfer agent that you wish to receive paper copies of reports by calling toll-free 800-621-2550 for Institutional, Service and Class R6 shareholders or 800-526-7384 for all other shareholders. If you hold shares of a Fund through a financial intermediary, please contact your financial intermediary to make this election. Your election to receive reports in paper will apply to all Goldman Sachs Funds held in your account if you invest through your financial intermediary or all Goldman Sachs Funds held with the Funds transfer agent if you invest directly with the transfer agent.
INVESTMENT OBJECTIVE |
The Fund seeks a high level of current income and may also consider the potential for capital appreciation.
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. The table does not take into account brokerage commissions that you may pay on your purchases and sales of Institutional Shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you invest at least $100,000 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 65 and in Appendix CAdditional Information About Sales Charge Variations, Waivers and Discounts on page 133 of the Prospectus and Other Information Regarding Maximum Sales Charge, Purchases, Redemptions, Exchanges and Dividends beginning on page B-151 of the Funds SAI.
SHAREHOLDER FEES (fees paid directly from your investment)
Class A | Class C | Institutional | Service | Investor | Class R | Class R6 | ||||||||||||||||||||||
Maximum Sales Charge (Load) Imposed on Purchases |
4.50 | % | None | None | 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 | None | None | ||||||||||||||||||||
Redemption Fee (as a percentage of amount redeemed, imposed on the redemption of shares held for 60 calendar days or less) |
2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % |
1 | A contingent deferred sales charge (CDSC) of 1% is imposed on Class C Shares redeemed within 12 months of purchase. |
2 SUMMARY PROSPECTUS GOLDMAN SACHS HIGH YIELD FUND
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Class A | Class C | Institutional | Service | Investor | Class R | Class R6 | ||||||||||||||||||||||
Management Fees |
0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | ||||||||||||||
Distribution and/or Service (12b-1) Fees |
0.25 | % | 0.75 | % | None | 0.25 | % | None | 0.50 | % | None | |||||||||||||||||
Other Expenses |
0.17 | % | 0.42 | % | 0.08 | % | 0.33 | % | 0.17 | % | 0.17 | % | 0.07 | % | ||||||||||||||
Service Fees |
No | ne | 0.25 | % | No | ne | No | ne | No | ne | No | ne | No | ne | ||||||||||||||
Shareholder Administration Fees |
No | ne | No | ne | No | ne | 0.25 | % | No | ne | No | ne | No | ne | ||||||||||||||
All Other Expenses |
0.17 | % | 0.17 | % | 0.08 | % | 0.08 | % | 0.17 | % | 0.17 | % | 0.07 | % | ||||||||||||||
Total Annual Fund Operating Expenses |
1.11 | % | 1.86 | % | 0.77 | % | 1.27 | % | 0.86 | % | 1.36 | % | 0.76 | % | ||||||||||||||
Fee Waiver and Expense Limitation2 |
(0.08 | )% | (0.08 | )% | (0.02 | )% | (0.02 | )% | (0.08 | )% | (0.08 | )% | (0.02 | )% | ||||||||||||||
Total Annual Fund Operating Expenses After Fee Waiver and Expense Limitation |
1.03 | % | 1.78 | % | 0.75 | % | 1.25 | % | 0.78 | % | 1.28 | % | 0.74 | % |
2 | The Investment Adviser has agreed to reduce or limit Other Expenses (excluding acquired fund fees and expenses, transfer agency fees and expenses, service and shareholder administration fees, taxes, interest, brokerage fees, expenses of shareholder meetings, litigation and indemnification, and extraordinary expenses) to 0.024% of the Funds average daily net assets. Additionally, Goldman Sachs & Co. LLC (Goldman Sachs), the Funds transfer agent, has agreed to waive a portion of its transfer agency fee (a component of Other Expenses) equal to 0.06% as an annual percentage rate of the average daily net assets attributable to Class A, Class C, Investor and Class R Shares of the Fund. These arrangements will remain in effect through at least July 29, 2020, and prior to such date the Investment Adviser and Goldman Sachs may not terminate the arrangements without the approval of the Board of Trustees. |
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, Service, Investor, Class R and/or Class R6 Shares of the Fund for the time periods indicated and then redeem all of your Class A, Class C, Institutional, Service, Investor, Class R and/or Class R6 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 fee waiver and expense limitation arrangements for only the first year). The Example does not take into account brokerage commissions that you may pay on your purchases and sales of Institutional Shares of the Fund. 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 |
$ | 550 | $ | 779 | $ | 1,027 | $ | 1,734 | ||||||||
Class C Shares |
||||||||||||||||
Assuming complete redemption at end of period |
$ | 281 | $ | 577 | $ | 998 | $ | 2,173 | ||||||||
Assuming no redemption |
$ | 181 | $ | 577 | $ | 998 | $ | 2,173 | ||||||||
Institutional Shares |
$ | 77 | $ | 244 | $ | 426 | $ | 952 | ||||||||
Service Shares |
$ | 127 | $ | 401 | $ | 695 | $ | 1,532 | ||||||||
Investor Shares |
$ | 80 | $ | 266 | $ | 469 | $ | 1,053 | ||||||||
Class R Shares |
$ | 130 | $ | 423 | $ | 737 | $ | 1,628 | ||||||||
Class R6 Shares |
$ | 76 | $ | 241 | $ | 420 | $ | 940 |
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, 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 March 31, 2019 was 59% of the average value of its portfolio.
PRINCIPAL STRATEGY |
The Fund invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) (Net Assets) in high-yield, fixed income securities that, at the time of purchase, are non-investment grade securities. Non-investment grade securities are securities rated BB+, Ba1 or below by a nationally recognized statistical rating organization (NRSRO), or, if unrated, determined by the Investment Adviser to be of comparable credit quality, and are commonly referred to as junk bonds. The Fund may invest in all types of fixed income securities, including loan participations.
The Fund may invest up to 25% of its total assets in obligations of domestic and foreign issuers which are denominated in currencies other than the U.S. dollar and in securities of issuers located in emerging countries denominated in any currency. However, to the extent that the Investment Adviser has entered into transactions that are intended to hedge the Funds position in a non-dollar denominated obligation against currency risk, such obligation will not be counted when calculating compliance with the 25% limitation on obligations in non-U.S. currency.
3 SUMMARY PROSPECTUS GOLDMAN SACHS HIGH YIELD FUND
Under normal market conditions, the Fund may invest up to 20% of its Net Assets in investment grade fixed income securities, including securities issued or guaranteed by the U.S. government, its agencies, instrumentalities or sponsored enterprises (U.S. Government Securities).
The Fund may invest in derivatives, including (i) credit default swap indices (or CDX)for hedging purposes or to seek to increase total return, and (ii) interest rate futures, forwards and swaps to manage the portfolios duration.
The Fund may also seek to obtain exposure to fixed income investments through investments in affiliated or unaffiliated investment companies, including exchange-traded funds (ETFs).
The Funds target duration range under normal interest rate conditions is expected to approximate that of the Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Bond Index, plus or minus 2.5 years, depending on the Funds risk-adjusted positioning, and over the last five years ended June 30, 2019, the duration of this Index has ranged between 2.71 and 4.36 years. Duration is a measure of a debt securitys price sensitivity to changes in interest rates. The longer the duration of the Fund (or an individual debt security), the more sensitive its market price to changes in interest rates. For example, if market interest rates increase by 1%, the market price of a debt security with a positive duration of 3 will generally decrease by approximately 3%. Conversely, a 1% decline in market interest rates will generally result in an increase of approximately 3% of that securitys market price.
The Funds portfolio managers seek to build a portfolio that reflects their investment views across the high yield securities market consistent with the Funds overall risk budget and the views of the Investment Advisers Global Fixed Income top-down teams. As market conditions change, the volatility and attractiveness of sectors, securities and strategies can change as well. To optimize the Funds risk/return potential within its long-term risk budget, the portfolio managers may dynamically adjust the mix of top-down and bottom-up strategies in the Funds portfolio.
The Funds benchmark index is the Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Bond Index.
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 involve substantial risks which prospective investors should consider carefully before investing.
Credit/Default Risk. An issuer or guarantor of fixed income securities or instruments held by the Fund (which may have low credit ratings) may default on its obligation to pay interest and repay principal or default on any other obligation. Additionally, the credit quality of securities may deteriorate rapidly, which may impair the Funds liquidity and cause significant deterioration in net asset value (NAV). These risks are more pronounced in connection with the Funds investments in non-investment grade fixed income securities.
Derivatives Risk. The Funds use of credit default swap indices (or CDX), interest rate futures, forwards and swaps and other derivative instruments may result in losses. These instruments, which may pose risks in addition to and greater than those associated with investing directly in securities, currencies or other instruments, may be illiquid or less liquid, volatile, difficult to price and leveraged so that small changes in the value of underlying instruments may produce disproportionate losses to the Fund. Certain derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligations. The use of derivatives is a highly specialized activity that involves investment techniques and risks different from those associated with investments in more traditional securities and instruments.
Foreign 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. The imposition of exchange controls (including repatriation restrictions), sanctions, confiscations, trade restrictions (including tariffs) and other government restrictions by the United States or other governments, or from problems in share registration, settlement or custody, may also result in losses. 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.
Interest Rate Risk. When interest rates increase, fixed income securities or instruments held by the Fund will generally decline in value. Long-term fixed income securities or instruments will normally have more price volatility because of this risk than short-term fixed income securities or instruments. The risks associated with changing interest rates may have unpredictable effects on the markets and the Funds investments. Fluctuations in interest rates may also affect the liquidity of fixed income securities and instruments held by the Fund.
Large Shareholder Transactions Risk. The Fund may experience adverse effects when certain large shareholders purchase or redeem large amounts of shares of the Fund. Such large shareholder redemptions, which may occur rapidly or unexpectedly, may cause the Fund to sell portfolio securities at times when it would not otherwise do so, which may negatively impact the Funds NAV and liquidity. Similarly, large Fund share purchases may adversely affect the Funds performance to the extent that the Fund is delayed in investing new cash or otherwise maintains a larger cash position than it ordinarily would. These transactions may also accelerate the realization of taxable income to shareholders if such sales of investments resulted in gains, and may also increase transaction costs. In addition, a large redemption could result in the Funds current expenses being allocated over a smaller asset base, leading to an increase in the Funds expense ratio.
4 SUMMARY PROSPECTUS GOLDMAN SACHS HIGH YIELD FUND
Liquidity Risk. The Fund may make investments that are 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.
Liquidity risk may be the result of, among other things, the reduced number and capacity of traditional market participants to make a market in fixed income securities or the lack of an active market. The potential for liquidity risk may be magnified by a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, potentially causing increased supply in the market due to selling activity. Redemptions by large shareholders may have a negative impact on the Funds liquidity.
Loan-Related Investments Risk. In addition to risks generally associated with debt investments (e.g., interest rate risk and default risk), loan-related investments such as loan participations and assignments are subject to other risks. Although a loan obligation may be fully collateralized at the time of acquisition, the collateral may decline in value, be or become illiquid or less liquid, or lose all or substantially all of its value subsequent to investment. Many loan investments are subject to legal or contractual restrictions on resale and certain loan investments may be or become illiquid or less liquid and more difficult to value, particularly in the event of a downgrade of the loan or the borrower. There is less readily available, reliable information about most loan investments than is the case for many other types of securities. Substantial increases in interest rates may cause an increase in loan obligation defaults. With respect to loan participations, the Fund may not always have direct recourse against a borrower if the borrower fails to pay scheduled principal and/or interest; may be subject to greater delays, expenses and risks than if the Fund had purchased a direct obligation of the borrower; and may be regarded as the creditor of the agent lender (rather than the borrower), subjecting the Fund to the creditworthiness of that lender as well. Investors in loans, such as the Fund, may not be entitled to rely on the anti-fraud protections of the federal securities laws, although they may be entitled to certain contractual remedies. The market for loan obligations may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. Because transactions in many loans are subject to extended trade settlement periods, the Fund may not receive the proceeds from the sale of a loan for a period after the sale. As a result, sale proceeds related to the sale of loans may not be available to make additional investments or to meet the Funds redemption obligations for a period after the sale of the loans, and, as a result, the Fund may have to sell other investments or engage in borrowing transactions, such as borrowing from its credit facility, if necessary to raise cash to meet its obligations. During periods of heightened redemption activity or distressed market conditions, the Fund may seek to obtain expedited trade settlement, which will generally incur additional costs (although expedited trade settlement will not always be available).
Senior loans hold the most senior position in the capital structure of a business entity, and are typically secured with specific collateral, but are nevertheless usually rated below investment grade. Because second lien loans are subordinated or unsecured and thus lower in priority of payment to senior loans, they are subject to the additional risk that the cash flow of the borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured obligations of the borrower. Second lien loans generally have greater price volatility than senior loans and may be less liquid. Generally, loans have the benefit of restrictive covenants that limit the ability of the borrower to further encumber its assets or impose other obligations. To the extent a loan does not have certain covenants (or has less restrictive covenants), an investment in the loan will be particularly sensitive to the risks associated with loan investments.
Non-Investment Grade Fixed Income Securities Risk. Non-investment grade fixed income securities and unrated securities of comparable credit quality (commonly known as junk bonds) are considered speculative and are subject to the increased risk of an issuers inability to meet principal and interest payment obligations. These securities may be subject to greater price volatility due to such factors as specific issuer developments, interest rate sensitivity, negative perceptions of the junk bond markets generally and less liquidity.
Other Investment Companies Risk. By investing in other investment companies (including ETFs) indirectly through the Fund, investors will incur a proportionate share of the expenses of the other investment companies held by the Fund (including operating costs and investment management fees) in addition to the fees regularly borne by the Fund. In addition, the Fund will be affected by the investment policies, practices and performance of such investment companies in direct proportion to the amount of assets the Fund invests therein.
5 SUMMARY PROSPECTUS GOLDMAN SACHS HIGH YIELD FUND
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 Class A Shares from year to year; and (b) how the average annual total returns of the Funds Class A, Class C, Institutional, Service, Investor, Class R and Class R6 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.gsamfunds.com/performance or by calling the appropriate phone number on the back cover of the Prospectus.
The bar chart (including Best Quarter and Worst Quarter information) does not reflect the sales loads applicable to Class A Shares. If the sales loads were reflected, returns would be less. Performance reflects applicable fee waivers and/or expense limitations in effect during the periods shown.
AVERAGE ANNUAL TOTAL RETURN
For the period ended December 31, 2018 |
1 Year | 5 Years | 10 Years | |||||||||
Class A Shares (Inception 08/01/97) |
||||||||||||
Returns Before Taxes |
-8.23% | 1.21% | 8.64% | |||||||||
Returns After Taxes on Distributions |
-10.15% | -1.15% | 5.82% | |||||||||
Returns After Taxes on Distributions and Sale of Fund Shares |
-4.82% | -0.09% | 5.77% | |||||||||
Class C Shares (Inception 08/15/97) |
||||||||||||
Returns Before Taxes |
-5.68% | 1.37% | 8.33% | |||||||||
Institutional Shares (Inception 08/01/97) |
||||||||||||
Returns Before Taxes |
-3.71% | 2.46% | 9.50% | |||||||||
Service Shares (Inception 08/01/97) |
||||||||||||
Returns Before Taxes |
-4.08% | 1.95% | 8.97% | |||||||||
Investor Shares (Inception 11/30/07) |
||||||||||||
Returns Before Taxes |
-3.61% | 2.38% | 9.43% | |||||||||
Class R Shares (Inception 11/30/07) |
||||||||||||
Returns |
-4.27% | 1.87% | 8.86% | |||||||||
Class R6 Shares (Inception 07/31/15)* |
||||||||||||
Returns Before Taxes |
-3.54% | 2.50% | 9.52% | |||||||||
Bloomberg Barclays U.S. High-Yield 2% Issuer Capped
Bond Index |
-2.08% | 3.84% | 11.14% |
* | Class R6 Shares commenced operations on July 31, 2015. Prior to that date, the performance of Class R6 Shares shown in the table above is that of Institutional Shares. Performance has not been adjusted to reflect the lower expenses of Class R6 Shares. Class R6 Shares would have had higher returns because: (i) Institutional Shares and Class R6 Shares represent interests in the same portfolio of securities; and (ii) Class R6 Shares have lower expenses. |
The after-tax returns are for Class A Shares only. The after-tax returns for Class C, Institutional, Service, Investor and Class R6 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.
6 SUMMARY PROSPECTUS GOLDMAN SACHS HIGH YIELD FUND
PORTFOLIO MANAGEMENT |
Goldman Sachs Asset Management, L.P. is the investment adviser for the Fund (the Investment Adviser or GSAM).
Portfolio Manager: Robert Magnuson, Managing Director, Head of High Yield and Bank Loan Research, has managed the Fund since 2014.
BUYING AND SELLING FUND SHARES |
The minimum initial investment for Class A and Class C Shares is, generally, $1,000. The minimum initial investment for Institutional Shares is, generally, $1,000,000 for individual or 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 Investor, Class R and Class R6 Shares, except for certain institutional investors who purchase Class R6 Shares directly with the Funds transfer agent for which the minimum initial investment is $5,000,000. Those share classes with a minimum initial investment requirement do not impose it on certain employee benefit plans, and Institutional Shares do not impose it on certain investment advisers investing on behalf of other accounts.
The minimum subsequent investment for Class A and Class C shareholders is $50, except for certain employee benefit plans, for which there is no minimum. There is no minimum subsequent investment for Institutional, Investor, Class R or Class R6 shareholders.
The Fund does not impose minimum purchase requirements for initial or subsequent investments in Service Shares, although an Intermediary (as defined below) may impose such minimums and/or establish other requirements such as a minimum account balance.
You may purchase and redeem (sell) shares of the Fund on any business day through certain intermediaries that have a relationship with Goldman Sachs, including banks, trust companies, brokers, registered investment advisers and other financial institutions (Intermediaries).
TAX INFORMATION |
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 Intermediary, the Fund and/or its related companies may pay the Intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the Intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your Intermediarys website for more information.
7 SUMMARY PROSPECTUS GOLDMAN SACHS HIGH YIELD FUND
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8 SUMMARY PROSPECTUS GOLDMAN SACHS HIGH YIELD FUND
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