Securities Act File No. 333-194085
As filed with the Securities and Exchange Commission on March 20, 2014
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-14
REGISTRATION
STATEMENT
UNDER
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THE SECURITIES ACT OF 1933
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Pre Effective Amendment No. 1
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x
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Post Effective Amendment No.
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(Check appropriate box or boxes.)
GOLDMAN SACHS TRUST
(Exact Name of Registrant as Specified in Charter)
71 South
Wacker Drive
Chicago, Illinois 60606
(Address of Principal Executive Offices)
Registrants Telephone Number, including Area Code (312) 655-4400
CAROLINE KRAUS, ESQ.
Goldman, Sachs & Co.
200 West Street
New
York, New York 10282
(Name and Address of Agent for Service)
COPY TO:
GEOFFREY R.T. KENYON, ESQ.
Dechert LLP
One
International Place, 40
th
Floor
100 Oliver Street
Boston, Massachusetts 02110-2605
Approximate Date of Proposed
Public Offering:
As soon as practicable after the effective date of this Registration Statement.
Title of Securities Being Registered:
Class
A, Class C, Institutional and Class IR Shares of Goldman Sachs Asia Equity Fund, a series of the Registrant. The Registrant has registered an indefinite amount of securities pursuant to Rule 24f-2 under the Investment Company Act of 1940, as
amended; accordingly, no fee is payable herewith in reliance upon Section 24(f).
It is proposed that this Registration Statement become
effective on March 24, 2014 or as soon as practicable thereafter.
GOLDMAN SACHS CHINA EQUITY FUND
71 South Wacker Drive
Chicago, Illinois 60606
March 24, 2014
Dear Shareholder:
We are
writing to inform you of an important matter concerning your investment in the Goldman Sachs China Equity Fund (the Acquired Fund). At a meeting held on February 11, 2014, the Board of Trustees of the Acquired Fund (the
Board) approved a reorganization pursuant to which the Acquired Fund will be reorganized with and into another series of the Goldman Sachs Trust the Goldman Sachs Asia Equity Fund (the Acquiring Fund, and together with
the Acquired Fund, the Funds). Shareholders were first notified of the reorganization on February 12, 2014, in a supplement to the Acquired Funds then-current Prospectus and Summary Prospectus, each dated February 28,
2013, as supplemented.
After careful consideration, the Board, including a majority of the Trustees who are not
interested persons of the Funds, as that term is defined in the Investment Company Act of 1940 (the Independent Trustees), approved the reorganization. After considering the recommendation of Goldman Sachs Asset Management
International (GSAMI), the investment adviser to the Funds, the Board, including a majority of the Independent Trustees, concluded that: (i) the reorganization will benefit the shareholders of each Fund; (ii) the reorganization
is in the best interests of each Fund; and (iii) the interests of the shareholders of each Fund will not be diluted as a result of the reorganization.
Effective on or about April 25, 2014 (the Closing Date), you will own shares in the Acquiring Fund equal in dollar value to your interest in the Acquired Fund on the Closing Date. No sales
charge, redemption fees or other transaction fees will be imposed in the reorganization. The reorganization is intended to be a tax-free reorganization for Federal income tax purposes.
NO ACTION ON YOUR PART IS REQUIRED REGARDING THE REORGANIZATION. YOU WILL AUTOMATICALLY RECEIVE SHARES OF THE ACQUIRING FUND IN
EXCHANGE FOR YOUR SHARES OF THE ACQUIRED FUND AS OF THE CLOSING DATE. THE BOARD IS NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND A PROXY.
If you have any questions regarding the attached Information Statement/Prospectus or other materials, please contact the Acquired Fund at 1-800-526-7384.
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By Order of the Board of Trustees of the Goldman Sachs Trust,
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James A. McNamara
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President
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COMBINED INFORMATION STATEMENT
FOR
GOLDMAN SACHS CHINA EQUITY FUND
(a series of the GOLDMAN SACHS TRUST)
AND
PROSPECTUS FOR
GOLDMAN SACHS ASIA EQUITY FUND (a series of the GOLDMAN SACHS TRUST)
The address, telephone number and website of the Goldman Sachs China Equity Fund and the Goldman Sachs Asia Equity Fund is:
71 South Wacker Drive Chicago, Illinois 60606 1-800-526-7384 www.gsamfunds.com
Shares of the Goldman Sachs Asia Equity Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission (the
SEC). The SEC has not passed upon the adequacy of this Information Statement/Prospectus. Any representation to the contrary is a criminal offense.
An investment in either the Goldman Sachs China Equity Fund (the Acquired Fund) or the Goldman Sachs Asia Equity Fund (the Acquiring Fund, and together with the Acquired Fund,
the Funds) is not a bank deposit and is not insured or guaranteed by the U.S. Federal Deposit Insurance Corporation or any other government agency.
This Information Statement/Prospectus sets forth information about the Acquiring Fund that an investor needs to know before investing. Please read this Information Statement/Prospectus carefully before
investing and keep it for future reference.
The date of this Information Statement/Prospectus is March 24, 2014.
For more complete information about each Fund, please read the Funds Prospectus and Statement of Additional
Information, as they may be amended and/or supplemented. Each Funds Prospectus and Statement of Additional Information, and other additional information about each Fund, have been filed with the SEC (www.sec.gov) and are available upon
written or oral request and without charge by writing to the address above or calling the following toll-free number: 1-800-526-7384.
INTRODUCTION
This combined information statement/prospectus, dated March 24, 2014 (the Information Statement/Prospectus), is being
furnished to shareholders of the Acquired Fund in connection with an Agreement and Plan of Reorganization between the Acquired Fund and the Acquiring Fund (the Plan), pursuant to which the Acquired Fund will (i) transfer all of its
assets and liabilities attributable to each class of its shares to the Acquiring Fund in exchange for shares of the Acquiring Fund; and (ii) distribute to its shareholders a portion of the Acquiring Fund shares to which each shareholder is
entitled (as discussed below) in complete liquidation of the Acquired Fund (the Reorganization). At a meeting held on February 11, 2014, the Board of Trustees of the Funds (the Board or Trustees) approved the
Plan. A copy of the Plan is attached to this Information Statement/Prospectus as
Exhibit A
. Shareholders should read this entire Information Statement/Prospectus, including the exhibits, carefully.
After considering the recommendation of Goldman Sachs Asset Management International (GSAMI or Investment
Adviser), the investment adviser to the Funds, the Board concluded that: (i) the Reorganization will benefit the shareholders of each Fund; (ii) the Reorganization is in the best interests of each Fund; and (iii) the interests
of the shareholders of each Fund will not be diluted as a result of the Reorganization.
NO ACTION IS REQUIRED REGARDING THE
REORGANIZATION. SHAREHOLDERS OF THE ACQUIRED FUND ARE NOT BEING ASKED TO VOTE ON OR APPROVE THE PLAN. THE BOARD IS NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND A PROXY
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Background to the Reorganization
The Investment Adviser, an SEC-registered
investment adviser, serves as investment adviser to both the Acquired Fund and the Acquiring Fund, each an investment company registered under the Investment Company Act of 1940 (1940 Act). The Reorganization is a part of GSAMIs
continuing effort to optimize the Goldman Sachs Funds and eliminate overlapping products. After evaluating the investment objectives, strategies and policies of the Funds, as well as their performance, size and potential for asset growth
in the foreseeable future, the Investment Adviser recommended to the Board that it approve the reorganization of the Acquired Fund with and into the Acquiring Fund, an existing series of Goldman Sachs Trust (the Trust). GSAMI believes
that the Reorganization may provide enhanced opportunities to realize greater economies of scale in the form of lower total operating expenses over time. In addition, GSAMI does not expect the Acquired Fund to experience significant asset growth in
the foreseeable future and believes that the combined Fund would be better positioned for asset growth than the Acquired Fund on its own. The Investment Adviser also believes that the Reorganization is preferable to liquidating the Acquired Fund, as
it will provide you and other shareholders with the opportunity to invest in a fund that: (i) invests in a more diversified universe of foreign and emerging markets in the Asian region (
e.g.,
Greater China, South Korea, India and
Indonesia); and (ii) is part of the Goldman Sachs Funds a large, diverse fund family. Moreover, although the Acquired Fund has higher 1-Year performance, the Acquiring Fund has higher since-inception performance and a longer performance
record (the Acquiring Fund commenced operations in 1994; the Acquired Fund commenced operations in 2011).
On
February 11, 2014, the Board, including a majority of the Trustees who are not interested persons of the Funds, as that term is defined in the 1940 Act (the Independent Trustees), voted to approve the Reorganization. In
approving the Reorganization, the Board, including a majority of the Independent Trustees, concluded that: (i) the Reorganization will benefit the shareholders of each Fund; (ii) the Reorganization is in the best interests of each Fund;
and (iii) the interests of the shareholders of each Fund will not be diluted as a result of the Reorganization. The Board also considered and approved the terms and conditions of the Plan.
In approving the Reorganization and Plan, the Board requested and received such information from the Investment Adviser as it determined
to be necessary to evaluate the Reorganization. At its meeting, the Board
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received and evaluated materials regarding the investment objectives, strategies, policies and risks of the Funds, as well as the effect of the Reorganization on the existing shareholders of the
Funds. The Board also evaluated and discussed: (i) the material differences between each Funds investment objective, strategies, policies and risks; (ii) the specific terms of the Reorganization, including information regarding the
proposed plans for ongoing management, distribution and operation of the Acquiring Fund; and (iii) other information, such as the relative sizes of the Funds, the performance records of the Funds, the expenses of the Funds (including
anticipated pro forma expense information of the Acquiring Fund following the Reorganization) and the anticipated asset growth of the Funds in the foreseeable future. In addition, the Board considered additional factors, which are discussed in more
detail below under
Why did the Board approve the Reorganization?
The Independent Trustees were assisted in
their consideration of the Reorganization by independent counsel.
Questions and Answers
How will the Reorganization affect me?
Under the terms of the Plan, the Acquired Fund will transfer all of its assets to the Acquiring Fund and the Acquiring Fund will assume all of the liabilities of the Acquired Fund. Subsequently, the
Acquired Fund will be liquidated and you will become a shareholder of the Acquiring Fund. You will receive shares of the Acquiring Fund that are equal in aggregate net asset value to the shares of the Acquired Fund that you held immediately prior to
the Closing Date (as defined below). Shareholders of each class of shares of the Acquired Fund will receive the corresponding class of the Acquiring Fund, as follows:
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Acquired Fund
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Acquiring Fund
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Class A
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Class A
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Class B*
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Class C
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Class C
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Institutional
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Institutional
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Class IR
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Class IR
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The Acquired Fund does not offer Class B Shares.
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No sales charge, contingent deferred sales charge (CDSC), commission, redemption fee or other transactional fee will be charged as a result of the Reorganization.
When will the Reorganization occur?
The Reorganization is scheduled to occur on or about April 25, 2014, but may occur on such earlier or later date as the parties agree in writing (the Closing Date).
How will the Reorganization affect the fees to be paid by the Acquiring Fund, and how do they compare with the fees paid by the Acquired Fund?
For the fiscal year ended October 31, 2013, the Acquired Funds effective management fee was 1.10% and
the Acquiring Funds effective management fee was 1.00%. Accordingly, shareholders of the Acquired Fund are expected to pay a lower effective management fee upon consummation of the Reorganization. The Acquired Funds gross expense ratio
for the fiscal year ended October 31, 2013 (before giving effect to the current expense limitation arrangement) for Class A, Class C, Institutional and Class IR Shares was 3.28%, 3.97%, 2.76% and 3.02%, respectively. It is estimated
that post-Reorganization, the Acquiring Funds gross expense ratio for Class A, Class C, Institutional and Class IR Shares will be 2.08%, 2.83%, 1.68% and 1.83%, respectively. The Acquired Funds net expense ratio for the fiscal year
ended October 31, 2013 (after giving effect to the current
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expense limitation arrangement) for Class A, Class C, Institutional and Class IR Shares was 1.92%, 2.67%, 1.53% and 1.71%, respectively. It is estimated that post-Reorganization, the
Acquiring Funds gross expense ratio for Class A, Class C, Institutional and Class IR Shares will be 1.69%, 2.44%, 1.29% and 1.44%, respectively. Accordingly, shareholders of the Acquired Fund are expected to be subject to a lower gross
and net expense ratio upon consummation of the Reorganization. Pro forma expense information is included in this Information Statement/Prospectus under
SummaryThe Funds Fees and Expenses
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Why did the Board approve the Reorganization?
In approving the Reorganization, the Board, including a majority of the Independent Trustees, concluded that: (i) the Reorganization is in the best interests of each Fund; and (ii) the interests
of the shareholders of each Fund will not be diluted as a result of the Reorganization. The Trustees also believe that the Reorganization offers a number of potential benefits. These potential benefits and considerations include the following:
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Because GSAMI does not expect the Acquired Fund to experience significant asset growth in the foreseeable future, the Reorganization may provide
enhanced opportunities to realize greater economies of scale in the form of lower total operating expenses over time.
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The Reorganization is preferable to liquidating the Acquired Fund, which may be treated as a taxable event, as it will provide you and other
shareholders with the opportunity to invest in a fund that invests in a more diversified universe of foreign and emerging markets in the Asian region (
e.g.,
Greater China, South Korea, India and Indonesia). Although the Acquiring Fund
will invest in certain markets that are similar or identical to those in which the Acquired Fund currently invests, including Greater China, the Acquired Fund is more heavily focused in China and Chinese markets for investment. These differences, as
well as other differences, are discussed in more detail below under
Summary Comparison of the Acquired Fund with the Acquiring Fund and Comparison of Principal Investment Risks of Investing in the Funds
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The Reorganization is expected to qualify as a reorganization within the meaning of Section 368 of the Internal Revenue Code of 1986,
as amended (the Code), and, therefore, you will not recognize gain or loss for federal income tax purposes on the exchange of your shares of the Acquired Fund for the shares of the Acquiring Fund. Alternatively, liquidation of the
Acquired Fund could give rise to a taxable event.
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Additional considerations are discussed in more detail below under
SummaryReasons for the Reorganization and Board Considerations.
Who bears the expenses associated with the
Reorganization?
GSAMI has agreed to pay the legal, auditor/accounting and other costs, including brokerage,
trading taxes and other transaction costs, associated with each Funds participation in the Reorganization. GSAMI estimates that these costs will be approximately $105,000.
Will GSAMI benefit from the Reorganization?
The Reorganization
is a part of GSAMIs continuing effort to optimize the Goldman Sachs Funds and eliminate overlapping products. Although reorganizing the Acquired Fund with and into the Acquiring Fund (instead of liquidating the Acquired Fund) will
benefit the Investment Adviser by managing a larger pool of assets, which will produce increased management fees that will accrue to the Investment Adviser, GSAMI believes that the combined Fund would be better positioned for asset growth than the
Acquired Fund on its own.
What are the Federal income and other tax consequences of the Reorganization?
As a condition to the closing of the Reorganization, the Funds must receive an opinion of Dechert LLP to the effect that the
Reorganization will constitute a reorganization within the meaning of Section 368 of the
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Code. Accordingly, subject to the limited exceptions described below under the heading
Tax Status of the
Reorganization
, it is expected that neither you nor a Fund will
recognize gain or loss as a direct result of the Reorganization, and that the aggregate tax basis of the Acquiring Fund shares that you receive in the Reorganization will be the same as the aggregate tax basis of the shares that you surrendered in
the Reorganization.
In addition, in connection with the Reorganization, it is currently expected that a substantial portion of the
Acquired Funds portfolio assets (approximately 75%) will be sold prior to the consummation of the Reorganization, which may result in the Acquired Fund realizing capital gains. It is currently estimated that such portfolio repositioning would
have resulted in realized capital gains of approximately $2.5 million, if such sales occurred as of March 18, 2014. Taking into account capital losses and capital loss carryforwards expected to be available to offset such realized gains, it is
currently estimated that the Acquired Fund will be required to distribute to its shareholders approximately $400,000 (approximately $0.14 per share) as a result of such portfolio repositioning, although the actual amount of such distribution could
be higher or lower depending on market conditions and on transactions entered into by the Acquired Fund prior to the Closing Date. Shareholders of the Acquired Fund will generally be taxed on any resulting capital gain distributions. It is also
estimated that such portfolio repositioning will result in brokerage and other transaction costs, including trading taxes, of approximately $42,000 (approximately 12 basis points).
Why are shareholders not being asked to vote on the Reorganization?
The Trusts Declaration of Trust and applicable state law do not require shareholder approval of the Reorganization. Moreover, Rule
17a-8 under the 1940 Act does not require shareholder approval of the Reorganization, provided certain conditions are met. Because applicable legal requirements do not require shareholder approval under these circumstances and the Board has
determined that the Reorganization is in the best interests of each Fund, shareholders are not being asked to vote on the Reorganization.
Where can I get more information?
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Each Funds current prospectus and any applicable supplements.
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On file with the SEC (http://www.sec.gov) (file nos. 811-05349; 33-17619) and available at no charge by calling: 1-800-526-7384 or on the Funds website
(www.gsamfunds.com).
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Each Funds current statement of additional information and any applicable supplements.
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On file with the SEC (http://www.sec.gov) (file nos. 811-05349; 33-17619) and available at no charge by calling: 1-800-526-7384 or on the Funds website
(www.gsamfunds.com).
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Each Funds most recent annual and semi-annual reports to shareholders.
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On file with the SEC (http://www.sec.gov) (file nos. 811-05349; 33-17619) and available at no charge by calling: 1-800-526-7384 or on the Funds website
(www.gsamfunds.com).
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A statement of additional information for this Information Statement/Prospectus, dated March 24, 2014 (the SAI). The SAI contains additional information about the
Acquiring Fund.
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On file with the SEC (http://www.sec.gov) (file nos. 811-05349; 33-17619) and available at no charge by calling: 1-800-526-7384. The SAI is incorporated by reference into
this Information Statement/Prospectus.
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To ask questions about this Information Statement/Prospectus.
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Call the toll-free telephone number: 1-800-526-7384.
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Each Funds: (i) prospectus and statement of additional information, each dated
February 28, 2014, and any supplements thereto, and (ii) October 31, 2013 Annual Report, are incorporated by reference into this
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Information Statement/Prospectus, which means they are considered legally a part of this Information Statement/Prospectus. The materials have been filed with the SEC (www.sec.gov) and are
available upon written or oral request and without charge by writing to the address above or calling the following toll-free number:
1-800-526-7384.
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Table of Contents
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GOLDMAN SACHS CHINA EQUITY FUND
AND
GOLDMAN SACHS ASIA EQUITY FUND
SUMMARY
The following is a summary of more
complete information appearing later in this Information Statement/Prospectus or incorporated by reference herein. You should read carefully the entire Information Statement/Prospectus, including the form of Agreement and Plan of Reorganization
attached as
Exhibit A
, because it contains details that are not in the summary.
Comparison of the Acquired Fund with the Acquiring Fund
Although each Fund seeks to achieve its investment objective by investing in foreign and emerging markets, including Greater China, there
are some important differences between the principal investment strategies of the Acquiring Fund and those of the Acquired Fund. These differences are discussed in more detail in the side-by-side chart below to facilitate comparison.
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The Acquired Fund
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The Acquiring Fund
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Type of fund
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The Acquired Fund is non-diversified under the 1940 Act.
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The Acquiring Fund is diversified under the 1940 Act.
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Investment objective
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Each Fund seeks long-term capital appreciation.
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How will each Fund seek to achieve its investment objective?
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The Acquired Fund invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes
(measured at the time of investment) (Net Assets) in a portfolio of equity investments that are tied economically to China (the Peoples Republic of China, Hong Kong and Taiwan, referred to herein as China or
Greater China) or in issuers that participate in the markets of China. The Investment Adviser considers an equity investment to be tied economically to China if the investment is included in an index representative of China, the
investments returns are linked to the performance of such an index, or the investment is exposed to the economic risks and returns of China.
An issuer participates in the markets of China if the issuer:
Has a class of its securities whose principal securities market is in
China;
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The Acquiring Fund invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes
(measured at the time of investment) (Net Assets) in a diversified portfolio of equity investments in Asian issuers (excluding Japanese issuers). Such equity investments may include exchange-traded funds (ETFs), futures and
other instruments with similar economic exposures.
An Asian issuer is any
company that either:
Has a class of its securities whose principal securities market is in one or more Asian
countries;
Is organized under the laws of, or has a principal office in, an Asian
country;
Derives 50% or more of its total revenue from goods produced, sales made
or
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The Acquired Fund
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The Acquiring Fund
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Is organized under the laws of, or has a principal office in
China;
Derives 50% or more of its total revenue from goods produced, sales made or services
provided in China; or
Maintains 50% or more of its assets in China.
The Acquired Fund expects to invest primarily in equity securities, including common
or ordinary stocks, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), European Depositary Receipts (EDRs), Taiwanese Depositary Receipts (TDRs), preferred stock, convertible
securities, investment companies (including other mutual funds or exchange-traded fund (ETFs)), and rights and warrants. The Acquired Funds equity investments may also include equity swaps, equity index swaps, futures,
participation notes, options and other derivatives and structured securities, which are used primarily to gain broad access to markets and/or individual securities that may be difficult to access via direct investment in equity securities. Only
securities open to U.S. investors are eligible for investment by the Acquired Fund. The Acquired Funds investments may include companies of all capitalization sizes.
The Acquired Fund may invest in the aggregate up to 20% of its Net Assets in
investments in developed countries and emerging countries other than China, including non-investment grade fixed income securities.
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services provided in one or more Asian countries; or
Maintains 50% or
more of its assets in one or more Asian countries.
The Acquiring Fund may
allocate its assets among the Asian countries (other than Japan) as determined from time to time by the Investment Adviser.
For purposes of the Acquiring Funds investment policies, Asian countries include: China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and any other
country in Asia (other than Japan) to the extent that foreign investors are permitted by applicable law to make such investments.
The Acquiring Fund may invest in the aggregate up to 20% of its Net Assets in: (i) equity investments in issuers located in non-Asian countries and Japan;
and (ii) fixed income securities, such as government, corporate and bank debt obligations.
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How are each Funds investments allocated?
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Allocation of the Acquired Funds investments is determined by the Investment Advisers assessment of a companys upside potential and downside risk, how attractive
it
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Allocation of the Acquiring Funds investments is determined by the Investment Advisers assessment of a companys upside potential and downside risk, how
attractive
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The Acquired Fund
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The Acquiring Fund
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appears relative to other holdings, and how the addition will impact sector and industry weightings. The largest overweights are given
to companies the Investment Adviser believes have the most upside return potential relative to their contribution to overall portfolio risk.
The Acquired Funds investments are selected using a strong valuation discipline based on industry specific metrics, to purchase what the Investment
Adviser believes are well-positioned, cash-generating businesses run by shareholder-oriented management teams. From a valuation perspective, the Investment Adviser generally looks for companies where its proprietary estimate of their earnings, asset
value or cash flow is meaningfully different from consensus; or where the Investment Adviser believes growth in intrinsic value is not reflected in the share price.
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it appears relative to other holdings, and how the addition will impact sector and industry weightings. The largest weightings in the
Acquiring Funds portfolio relative to the benchmark of the Acquiring Fund are given to companies the Investment Adviser believes have the most upside return potential relative to their contribution to overall portfolio risk.
The Acquiring Funds investments are selected using a strong valuation
discipline to purchase what the Investment Adviser believes are well-positioned, cash-generating businesses run by shareholder-oriented management teams.
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What is each Funds limit with respect to an investment in a single industry or group of industries?
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The Acquired Fund will not invest more than 25% of the value of its total assets in the securities of one or more issuers conducting their principal business activities in the same
industry (excluding the U.S. Government or any of its agencies or instrumentalities), except that, to the extent that an industry represents 20% or more of the Acquired Funds benchmark index at the time of investment, the Acquired Fund may
invest up to 35% of its assets in that industry.
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The Acquiring Fund may not invest 25% or more of its total assets in the securities of one or more issuers conducting their principal business activities in the same industry
(excluding the U.S. Government or any of its agencies or instrumentalities).
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The Acquired Fund
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The Acquiring Fund
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Benchmark
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MSCI
®
China Index (net, total return,
unhedged, USD).
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MSCI
®
All Country
Asia ex-Japan Index (net, USD, unhedged) (the MSCI
®
All Country Asia ex-Japan Index).
As of January 1, 2014 the MSCI
®
All Country Asia ex-Japan Index consisted of the following 10 developed and emerging market country indices: China, Hong Kong, India, Indonesia, Korea, Malaysia,
Philippines, Singapore, Taiwan, and Thailand.
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Fund turnover
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Each 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 will be reflected in the Funds performance.
The Acquired Funds portfolio turnover rate for the fiscal year ended October
31, 2013 was 55% of the average value of its portfolio. The Acquiring Funds portfolio turnover rate for the fiscal year ended October 31, 2013 was 102% of the average value of its portfolio.
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Investment Adviser
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GSAMII serves as the investment adviser of each Fund.
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Fund management team
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Alina Chiew, CFA, Managing Director
Ms. Chiew serves as Head of Greater China Equity. Ms. Chiew joined the Investment Adviser in 2006. Prior to that she was the head of research with CITIC
Frontier China Research since 2004.
Nathan Lin, Executive
Director
Mr. Lin joined the GSAMI Greater China Equity Research Team
as a Research Analyst in April 2008. Before joining GSAMI, Mr. Lin was an analyst at RCM Asset Management (Hong Kong) responsible for technology stocks within the Asian region beginning August 2006. Prior to that he was a portfolio manager covering
the technology sector at Alliance Global Investors (Taiwan) beginning in 2004.
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Kevin Ohn, CFA, Managing Director
Mr. Ohn is the head of GSAMIs Asia Equity team and lead portfolio manager of the Asia Ex-Japan Equity strategy. He was previously the Head of
GSAMIs Korea Equity research team in Seoul. Mr. Ohn joined the Investment Adviser in January 2007 from Allianz Global Investors, Seoul, where he spent four years as Head of Equity Research and then as Chief Investment Officer of the Equity
business.
Alina Chiew, CFA, Managing Director
Ms. Chiew serves as Head of Greater China Equity. Ms. Chiew joined the Investment
Adviser in
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The Acquired Fund
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The Acquiring Fund
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The SAI provides additional information about the portfolio managers compensation and other accounts managed by the portfolio managers.
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2006. Prior to that she was the head of research with CITIC Frontier China Research since 2004.
The SAI provides additional information about the portfolio managers
compensation and other accounts managed by the portfolio managers.
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Fiscal year end
|
|
October 31
|
As the above table indicates, despite certain similarities, there are some notable differences
between the principal investment strategies of the Acquiring Fund and those of the Acquired Fund. For example, the Acquired Fund invests in a more limited universe of Asian countries (namely Greater China), while the Acquiring Fund invests in a more
diversified universe of foreign and emerging markets in the Asian region (
e.g.,
Greater China, South Korea, India and Indonesia). In addition, although the Acquired Fund may concentrate its investments in a single industry or group of
industries to a greater extent than the Acquiring Fund under certain limited, defined circumstances, the Acquired Fund has infrequently relied on this flexibility. Accordingly, GSAMI believes that the differences in the Funds concentration
policies are not material to shareholders because: (i) the Acquired Fund has infrequently concentrated its investments (
i.e.,
invested more than 25% of its assets) in a single industry or group of industries; and, (ii) whereas the
Acquiring Funds concentration policy permits that Fund to invest up to 25% of its assets in a single industry or group of industries, the Acquired Funds concentration policy only permits that Fund to invest up to 35% of its assets in a
single industry or group of industries,
but only
to the extent that an industry represents 20% or more of that Funds benchmark index at the time of investment. The Acquired Fund may also invest up to 5% of its total assets in
direct equity investments. Conversely, the Acquiring Fund is not permitted to make these investments. Direct equity investments consist of (i) the private purchase from an enterprise of an equity interest in the enterprise in the form of shares
of common stock or equity interests in trusts, partnerships, joint ventures or similar enterprises, and (ii) the purchase of such an equity interest in an enterprise from a principal investor in the enterprise. Direct equity investments are
generally considered to be illiquid.
The Acquiring Funds principal investment strategies, including the additional
markets to which you would be exposed as a shareholder of the Acquiring Fund, may impact performance and the risk/return profile of your investment. The investment philosophy of the Funds, as well as additional information on portfolio risks,
securities and techniques, is described in more detail in
Exhibit B
.
Comparison of
Principal Investment Risks of Investing in the Funds
Although the Acquiring Fund will invest in certain markets that
are similar or identical to those in which the Acquired Fund currently invests, including Greater China, the Acquiring Fund is expected to invest in a more diversified universe of foreign and emerging markets in the Asian region (
e.g.,
Greater China, South Korea, India and Indonesia). These markets may subject the Acquiring Fund to unique risks to which the Acquired Fund is not currently subject. However, because the Acquiring Fund has less flexibility to concentrate its
investments in a single industry or group of industries, the Acquiring Fund may not be subject to certain risks to the extent to which the Acquired Fund is currently subject (
e.g.,
industry concentration risk and sector risk). Lastly, the
Acquired Fund is non-diversified, meaning that it is permitted to invest a larger percentage of its assets in fewer issuers than diversified mutual funds. Conversely, the Acquiring Fund is diversified. Accordingly, the Acquired Fund may be more
susceptible to adverse developments affecting any single issuer held in its portfolio, and may
5
be more susceptible to greater losses because of these developments. These differences are discussed in more detail in the chart below to facilitate comparison.
Loss of money is a risk of investing in the Funds. An investment in a Fund is not a bank deposit and is not insured or guaranteed by the
Federal Deposit Insurance Corporation (FDIC) or any government agency. A Fund should not be relied upon as a complete investment program. Stated allocations may be subject to change. There can be no assurance that a Fund will achieve its
investment objective. Investment in the Funds involves substantial risks which prospective investors should consider carefully before investing.
|
|
|
Principal investment risks applicable to each Fund
|
|
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 the Fund also invests in issuers located in emerging countries, these risks may be more
pronounced.
|
|
|
|
|
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.
|
|
|
|
|
Market Risk.
The value of the instruments in which the Fund invests may go up or down in response to the prospects of individual companies, particular sectors or
governments and/or general economic conditions throughout the world due to increasingly interconnected global economies and financial markets.
|
|
|
|
|
Mid-Cap and Small-Cap Risk.
Investments in mid-capitalization and small-capitalization companies involve greater risks than those associated with larger, more
established companies. These securities may be subject to more abrupt or erratic price movements and may lack sufficient market liquidity, and these issuers often face greater business risks.
|
|
|
|
|
NAV Risk.
The net asset value (NAV) of the Fund and the value of your investment may fluctuate.
|
|
|
|
|
Stock Risk.
Stock prices have historically risen and fallen in periodic cycles. U.S. and foreign stock markets have experienced periods of substantial price volatility
in the past and may do so again in the future.
|
6
|
|
|
|
|
Principal investment risks applicable to the Acquired Fund only
|
|
Greater China Risk.
Investing in Greater China involves a higher degree of risk and special considerations not typically associated with investing in other more
established economies or securities markets. The Funds investment exposure to Greater China may subject the Fund, to a greater extent than if investments were made in developed countries, to the risks of adverse securities markets, exchange
rates and social, political, regulatory, economic or environmental events or natural disasters which may occur in the China region. The economy, industries, and securities and currency markets of Greater China may be adversely impacted by
protectionist trade policies, slow economic activity worldwide, dependence on exports and international trade, increasing competition from Asias other low-cost emerging economies, political and social instability, environmental events and
natural disasters, regional and global conflicts, terrorism and war, including actions that are contrary to the interests of the U.S. The securities markets of the Peoples Republic of China and Taiwan are emerging markets characterized by a
relatively small number of equity issues and relatively low trading volume, resulting in substantially less liquidity and greater price volatility and potentially fewer investment opportunities for the Fund. The government of the Peoples
Republic of China exercises significant control over the economy, and may alter laws or policies or discontinue economic reforms at any time. Taiwan and Hong Kong do not exercise the same level of control over their economies as does the
Peoples Republic of China, but changes to their political and economic relationships with the Peoples Republic of China could adversely impact the Funds investments in Taiwan and Hong Kong.
|
|
|
|
|
Industry Concentration Risk.
The Fund will not invest more than 25% of the value of its total assets in the securities of one or more issuers conducting their
principal business activities in the same industry, except that, to the extent that an industry represents 20% or more of the Funds benchmark index at the time of investment, the Fund may invest up to 35% of its assets in that industry.
Concentrating Fund investments in a limited number of issuers conducting business in the same industry will subject the Fund to a greater risk of loss as a result of adverse economic, business or other developments affecting that industry than if
its investments were not so concentrated.
|
|
|
|
|
Non-Diversification Risk.
The Fund is non-diversified, meaning that it is permitted to invest a larger percentage of its assets in fewer issuers than diversified
mutual funds. Thus, the Fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio, and may be more susceptible to greater losses because of these developments.
|
|
|
|
|
Sector Risk.
To the extent the Fund invests a significant amount of its assets in one or more sectors, such as the financial services or telecommunications sectors,
the Fund will be subject to greater risk of loss as a result of adverse economic, business or other developments than if its investments were diversified across different sectors.
|
7
|
|
|
|
|
Principal investment risks applicable to the Acquiring Fund only
|
|
Asia Risk.
Investing in certain Asian issuers may involve a higher degree of risk and special considerations not typically associated with investing in issuers from
more established economies or securities markets. The Funds investments in Asian issuers increase the risks to the Fund of conditions and developments that may be particular to Asian countries, such as: volatile economic cycles and/or
securities markets; adverse changes to exchange rates; social, political, military, regulatory, economic or environmental developments; or natural disasters.
|
Additional information on portfolio risks, securities and techniques is described in more detail in
Exhibit B.
An additional discussion of these risks is included in the Risks of the Funds section of the current prospectus of the Funds, which is incorporated herein by reference. The materials have been filed with the SEC
(www.sec.gov) and are available upon written or oral request and without charge by writing to the address above or calling the following toll-free number:
1-800-526-7384.
The Funds Fees and
Expenses
Shareholders of both Funds pay various fees and expenses, either directly or indirectly. The tables below show
the fees and expenses that you would pay if you were to buy and hold shares of each Fund. The expenses in the tables appearing below are based on the expenses of the Funds for the twelve-month period ended October 31, 2013. For financial
statement purposes, the Acquiring Fund will be the accounting survivor of the Reorganization. As the accounting survivor, the Acquiring Funds operating history will be used for financial reporting purposes. The tables also show the pro forma
expenses of the combined Fund after giving effect to the Reorganization based on pro forma net assets as of October 31, 2013.
Class A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China
Equity Fund
(Class
A Shares)
|
|
|
Asia
Equity Fund
(Class
A Shares)
|
|
|
Combined Fund
Class
A
(Pro Forma)
|
|
Shareholder fees
(paid directly from your investment)
|
|
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
|
|
|
5.50
|
%
|
|
|
5.50
|
%
|
|
|
5.50
|
%
|
Maximum deferred sales charge (load) (as a percentage of the lower of original purchase price or sales proceeds)
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Management Fees
|
|
|
1.10
|
%
|
|
|
1.00
|
%
|
|
|
1.00
|
%
|
Distribution and Service (12b-1) Fees
|
|
|
0.25
|
%
|
|
|
0.25
|
%
|
|
|
0.25
|
%
|
Other Expenses
|
|
|
1.93
|
%
|
|
|
0.94
|
%
|
|
|
0.83
|
%
|
Total Annual Fund Operating Expenses
|
|
|
3.28
|
%
|
|
|
2.19
|
%
|
|
|
2.08
|
%
|
Expense Limitation
2
|
|
|
(1.36
|
)%
|
|
|
(0.50
|
)%
|
|
|
(0.39
|
)%
|
Total Annual Fund Operating Expenses After Expense Limitation
|
|
|
1.92
|
%
|
|
|
1.69
|
%
|
|
|
1.69
|
%
|
8
Class C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China
Equity Fund
(Class
C Shares)
|
|
|
Asia
Equity Fund
(Class
C Shares)
|
|
|
Combined Fund
Class
C
(Pro Forma)
|
|
Shareholder fees
(paid directly from your investment)
|
|
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
Maximum deferred sales charge (load) (as a percentage of the lower of original purchase price or sales proceeds)
1
|
|
|
1.00
|
%
|
|
|
1.00
|
%
|
|
|
1.00
|
%
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Management Fees
|
|
|
1.10
|
%
|
|
|
1.00
|
%
|
|
|
1.00
|
%
|
Distribution and Service (12b-1) Fees
|
|
|
1.00
|
%
|
|
|
1.00
|
%
|
|
|
1.00
|
%
|
Other Expenses
|
|
|
1.87
|
%
|
|
|
0.95
|
%
|
|
|
0.83
|
%
|
Total Annual Fund Operating Expenses
|
|
|
3.97
|
%
|
|
|
2.95
|
%
|
|
|
2.83
|
%
|
Expense Limitation
2
|
|
|
(1.30
|
)%
|
|
|
(0.50
|
)%
|
|
|
(0.39
|
)%
|
Total Annual Fund Operating Expenses After Expense Limitation
|
|
|
2.67
|
%
|
|
|
2.45
|
%
|
|
|
2.44
|
%
|
Institutional Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China
Equity
Fund
(Institutional Shares)
|
|
|
Asia
Equity
Fund
(Institutional Shares)
|
|
|
Combined Fund
Institutional Class
(Pro Forma)
|
|
Shareholder fees
(paid directly from your investment)
|
|
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
Maximum deferred sales charge (load) (as a percentage of the lower of original purchase price or sales proceeds)
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Management Fees
|
|
|
1.10
|
%
|
|
|
1.00
|
%
|
|
|
1.00
|
%
|
Distribution and Service
(12b-1)
Fees
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
Other Expenses
|
|
|
1.66
|
%
|
|
|
0.79
|
%
|
|
|
0.68
|
%
|
Total Annual Fund Operating Expenses
|
|
|
2.76
|
%
|
|
|
1.79
|
%
|
|
|
1.68
|
%
|
Expense Limitation
2
|
|
|
(1.23
|
)%
|
|
|
(0.50
|
)%
|
|
|
(0.39
|
)%
|
Total Annual Fund Operating Expenses After Expense Limitation
|
|
|
1.53
|
%
|
|
|
1.29
|
%
|
|
|
1.29
|
%
|
9
Class IR Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China
Equity Fund
(Class
IR Shares)
|
|
|
Asia
Equity Fund
(Class IR Shares)
3
|
|
|
Combined Fund
Class
IR
(Pro Forma)
|
|
Shareholder fees
(paid directly from your investment)
|
|
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
Maximum deferred sales charge (load) (as a percentage of the lower of original purchase price or sales proceeds)
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
Management Fees
|
|
|
1.10
|
%
|
|
|
1.00
|
%
|
|
|
1.00
|
%
|
Distribution and Service
(12b-1) Fees
|
|
|
None
|
|
|
|
None
|
|
|
|
None
|
|
Other Expenses
|
|
|
1.92
|
%
|
|
|
0.94
|
%
4
|
|
|
0.83
|
%
|
Total Annual Fund Operating Expenses
|
|
|
3.02
|
%
|
|
|
1.94
|
%
|
|
|
1.83
|
%
|
Expense Limitation
2
|
|
|
(1.31
|
)%
|
|
|
(0.50
|
)%
|
|
|
(0.39
|
)%
|
Total Annual Fund Operating Expenses After Expense Limitation
|
|
|
1.71
|
%
|
|
|
1.44
|
%
|
|
|
1.44
|
%
|
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, interest, brokerage fees, litigation, indemnification, shareholder meeting and other extraordinary expenses) to 0.364% and 0.254% of China Equity Funds and Asia Equity Funds average daily net assets, respectively,
through at least March 24, 2015, and prior to such date, the Investment Adviser may not terminate the arrangement without the approval of the Board. The expense limitation may be modified or terminated by the Investment Adviser at its
discretion and without shareholder approval after such date, although the Investment Adviser does not presently intend to do so. The Funds Other Expenses may be further reduced by any custody and transfer agency fee credits
received by each Fund.
|
3
|
Class IR Shares of the Acquiring Fund commenced investment operations on February 28, 2014.
|
4
|
Other Expenses have been estimated to reflect expenses expected to be incurred during the first fiscal year of the Acquiring Funds
Class IR Shares.
|
10
Expense Example
This Example is intended to help you compare the cost of investing in each Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in each Fund for the time periods
indicated and then redeem all of your applicable shares at the end of those periods. The Example also assumes that your investment has a 5% return each year, and that each Funds operating expenses remain the same (except that the Example
incorporates the expense limitation agreements for only the first year). Pro forma expenses are included assuming a Reorganization of the Funds. The examples are for comparison purposes only and are not a representation of either Funds actual
expenses or returns, either past or future. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Equity Fund
|
|
|
Asia Equity Fund
|
|
|
Combined Fund
(Pro
Forma)
|
|
|
|
1
Year
|
|
|
3
Years
|
|
|
5
Years
|
|
|
10
Years
|
|
|
1
Year
|
|
|
3
Years
|
|
|
5
Years
|
|
|
10
Years
|
|
|
1
Year
|
|
|
3
Years
|
|
|
5
Years
|
|
|
10
Years
|
|
Class A
|
|
$
|
734
|
|
|
|
1,384
|
|
|
|
2,057
|
|
|
|
3,842
|
|
|
$
|
712
|
|
|
|
1,152
|
|
|
|
1,617
|
|
|
|
2,898
|
|
|
$
|
712
|
|
|
|
1,130
|
|
|
|
1,573
|
|
|
|
2,799
|
|
Class C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assuming complete redemption at end of period
|
|
$
|
370
|
|
|
|
1,091
|
|
|
|
1,929
|
|
|
|
4,100
|
|
|
$
|
348
|
|
|
|
866
|
|
|
|
1,509
|
|
|
|
3,235
|
|
|
$
|
347
|
|
|
|
840
|
|
|
|
1,459
|
|
|
|
3,129
|
|
Assuming no redemption
|
|
$
|
270
|
|
|
|
1,091
|
|
|
|
1,929
|
|
|
|
4,100
|
|
|
$
|
248
|
|
|
|
866
|
|
|
|
1,509
|
|
|
|
3,235
|
|
|
$
|
247
|
|
|
|
840
|
|
|
|
1,459
|
|
|
|
3,129
|
|
Institutional Class
|
|
$
|
156
|
|
|
|
740
|
|
|
|
1,350
|
|
|
|
3,000
|
|
|
$
|
131
|
|
|
|
515
|
|
|
|
923
|
|
|
|
2,064
|
|
|
$
|
131
|
|
|
|
492
|
|
|
|
876
|
|
|
|
1,954
|
|
Class IR
|
|
$
|
174
|
|
|
|
810
|
|
|
|
1,472
|
|
|
|
3,244
|
|
|
$
|
147
|
|
|
|
561
|
|
|
|
1,001
|
|
|
|
2,224
|
|
|
$
|
147
|
|
|
|
538
|
|
|
|
954
|
|
|
|
2,116
|
|
The Funds Past Performance
Upon consummation of the Reorganization, the Acquiring Fund will be the accounting and performance survivor.
The bar chart and table below provide an indication of the risks of investing in each Fund by showing: (i) changes in the
performance of the Funds Institutional Shares from year to year; and (ii) how the average annual total returns of the Funds Class A, Class C, Institutional and Class IR Shares compare to those of a broad-based securities market
index.
Each 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 front cover of this Information Statement/Prospectus.
The bar chart (including Best Quarter and Worst Quarter information) does not reflect the sales loads applicable
to Class A Shares of the Acquiring Fund. 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.
11
Acquired Fund Past Performance
|
|
|
|
|
|
|
|
|
Average Annual Total Return
for the Period Ended December 31, 2013
|
|
1 Year
|
|
|
Since Inception
|
|
Class A Shares (Inception 4/29/11)
|
|
|
|
|
|
|
|
|
Returns Before Taxes
|
|
|
0.79
|
%
|
|
|
4.57
|
%
|
Returns after Taxes on Distributions
|
|
|
0.90
|
%
|
|
|
4.60
|
%
|
Returns After Taxes on Distributions and Sale of Fund Shares
|
|
|
0.06
|
%
|
|
|
3.29
|
%
|
|
|
|
|
|
|
|
|
|
Class C Shares (Inception 4/29/11)
|
|
|
|
|
|
|
|
|
Returns Before Taxes
|
|
|
3.17
|
%
|
|
|
3.22
|
%
|
|
|
|
|
|
|
|
|
|
Institutional Shares (Inception 4/29/11)
|
|
|
|
|
|
|
|
|
Returns Before Taxes
|
|
|
5.30
|
%
|
|
|
2.13
|
%
|
|
|
|
|
|
|
|
|
|
Class IR Shares (Inception 4/29/11)
|
|
|
|
|
|
|
|
|
Returns Before Taxes
|
|
|
5.27
|
%
|
|
|
2.27
|
%
|
|
|
|
|
|
|
|
|
|
MSCI
®
China (Net, Unhedged, USD) Index
(reflects no deduction for fees or expenses)
|
|
|
3.64
|
%
|
|
|
0.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RETURN
|
|
CALENDAR YEAR (Institutional)
|
Best Quarter
Q4 12 + 14.31%
Worst Quarter
Q1 13
7.14%
|
|
|
12
Acquiring Fund Past Performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Return
for the Period Ended December 31, 2013
|
|
1 Year
|
|
|
5 Years
|
|
|
10 Years
|
|
|
Since Inception
|
|
Class A Shares (Inception 7/8/94)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Returns Before Taxes
|
|
|
1.70
|
%
|
|
|
13.48
|
%
|
|
|
7.02
|
%
|
|
|
2.21
|
%
|
Returns After Taxes on Distributions
|
|
|
1.62
|
%
|
|
|
13.54
|
%
|
|
|
7.11
|
%
|
|
|
2.19
|
%
|
Returns After Taxes on Distributions and Sale of Fund Shares
|
|
|
0.71
|
%
|
|
|
11.09
|
%
|
|
|
6.08
|
%
|
|
|
1.91
|
%
|
Class B Shares (Inception 5/1/96)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Returns Before Taxes
|
|
|
1.78
|
%
|
|
|
13.67
|
%
|
|
|
6.97
|
%
|
|
|
1.24
|
%
|
Class C Shares (Inception 8/15/97)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Returns Before Taxes
|
|
|
2.21
|
%
|
|
|
13.89
|
%
|
|
|
6.82
|
%
|
|
|
1.43
|
%
|
Institutional Shares (Inception 2/2/96)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Returns Before Taxes
|
|
|
4.43
|
%
|
|
|
15.24
|
%
|
|
|
8.07
|
%
|
|
|
2.23
|
%
|
MSCI
®
All Country Asia ex-Japan (Net, USD,
unhedged) Index (reflects no deduction for fees or expenses)*
|
|
|
3.07
|
%
|
|
|
16.50
|
%
|
|
|
10.63
|
%
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Performance for the MSCI
®
All Country Asia ex-Japan (Net, USD,
unhedged) Index is provided since 2001.
|
|
|
|
TOTAL RETURN
|
|
CALENDAR YEAR (Class A)
|
Best Quarter
Q2 09 + 31.18%
Worst Quarter
Q3 08
25.68%
|
|
|
The after-tax returns are for Class A Shares only. The after-tax returns for Class C,
Institutional and Class IR Shares 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.
Reasons for the Reorganization and Board Considerations
The Reorganization is a part of GSAMIs continuing effort to optimize the Goldman Sachs Funds and eliminate overlapping
products. After evaluating the investment objectives, strategies and policies of the Funds, as well as their performance, size and potential for asset growth in the foreseeable future, the Investment Adviser recommended to the Board that it approve
the reorganization of the Acquired Fund with and into the Acquiring Fund, an existing series of the Trust. GSAMI believes that the Reorganization may provide enhanced opportunities to realize greater economies of scale in the form of lower total
operating expenses over time. In addition, GSAMI does not expect the Acquired Fund to experience significant asset growth in the foreseeable future and believes that the combined Fund would be better positioned for asset growth than the Acquired
Fund
13
on its own. The Investment Adviser also believes that the Reorganization is preferable to liquidating the Acquired Fund, which may be treated as a taxable event, as it will provide you and other
shareholders with the opportunity to invest in a fund that: (i) invests in a more diversified universe of foreign and emerging markets in the Asian region (
e.g.,
Greater China, South Korea, India and Indonesia); and (ii) is part of
the Goldman Sachs Funds a large, diverse fund family. Moreover, although the Acquired Fund has higher 1-Year performance, the Acquiring Fund has higher since-inception performance and a longer performance record (the Acquiring Fund commenced
operations in 1994; the Acquired Fund commenced operations in 2011).
On February 11, 2014, the Board, including a
majority of the Independent Trustees, voted to approve the Reorganization. In approving the Reorganization, the Board, including a majority of the Independent Trustees, concluded that: (i) the Reorganization is in the best interests of each
Fund; and (ii) the interests of the shareholders of each Fund will not be diluted as a result of the Reorganization.
In
approving the Reorganization and Plan, the Board requested and received such information from the Investment Adviser as it determined to be necessary to evaluate the Reorganization. At its meeting, the Board received and evaluated materials
regarding the investment objectives, strategies, policies and risks of the Funds, as well as the effect of the Reorganization on the existing shareholders of the Funds. The Board also evaluated and discussed: (i) the material differences
between each Funds investment objective, strategies, policies and risks; (ii) the specific terms of the Reorganization, including information regarding the proposed plans for ongoing management, distribution and operation of the Acquiring
Fund; and (iii) other information, such as the relative sizes of the Funds, the performance records of the Funds, the expenses of the Funds (including anticipated pro forma expense information of the Acquiring Fund following the Reorganization)
and the anticipated asset growth of the Funds in the foreseeable future.
The Trustees also believe that the Reorganization
offers a number of potential benefits. These potential benefits and considerations include the following:
|
|
Because GSAMI does not expect the Acquired Fund to experience significant asset growth in the foreseeable future, the Reorganization may provide
enhanced opportunities to realize greater economies of scale in the form of lower total operating expenses over time.
|
|
|
The Reorganization is preferable to liquidating the Acquired Fund, which may be treated as a taxable event, as it will provide you and other
shareholders with the opportunity to invest in a fund that invests in a more diversified universe of foreign and emerging markets in the Asian region (
e.g.,
Greater China, South Korea, India and Indonesia). Although the Acquiring Fund
will invest in certain markets that are similar or identical to those in which the Acquired Fund currently invests, including Greater China, the Acquired Fund is more heavily focused in China and Chinese markets for investment. These differences, as
well as other differences, are discussed in more detail above under
Summary Comparison of the Acquired Fund with the Acquiring Fund and Comparison of Principal Investment Risks of Investing in the Funds
.
|
|
|
Although the Acquired Fund may concentrate its investments in a single industry or group of industries to a greater extent than the Acquiring Fund
under certain limited, defined circumstances, the Acquired Fund has infrequently relied on this flexibility. Accordingly, as discussed more fully above under
Summary Comparison of the Acquired Fund with the Acquiring Fund
,
GSAMI believes that the differences in the Funds concentration policies are not material to shareholders.
|
|
|
The Reorganization is expected to qualify as a reorganization within the meaning of Section 368 of the Code, and, therefore, you will
not recognize gain or loss for federal income tax purposes on the exchange of your shares of the Acquired Fund for the shares of the Acquiring Fund. Alternatively, liquidation of the Acquired Fund could give rise to a taxable event.
|
|
|
No sales charge, CDSC, commission, redemption fee or other transactional fee will be charged as a result of the Reorganization.
|
14
|
|
Lower management fees, as the Acquiring Funds effective management fee and management fee schedule are lower than the Acquired Funds
management fees at every breakpoint.
|
|
|
The Reorganization is expected to result in a lower net expense ratio.
|
|
|
GSAMI has agreed to pay the legal, auditor/accounting and other costs, including brokerage, trading taxes and other transaction costs, associated with
each Funds participation in the Reorganization. GSAMI estimates that these costs will be approximately $105,000.
|
Buying, Selling and Exchanging Shares of the Funds
The minimum initial investment for Class A and Class C Shares of each Fund is, generally, $1,000. The minimum initial investment for Institutional Shares of each Fund 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 Shares of each Fund. 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.
For each Fund, 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 or Class IR 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).
If you purchase a 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 a Fund over another investment. Ask your salesperson or visit your Authorized Institutions website for more information.
The procedures for making purchases, redemptions and exchanges of the Acquired Fund are identical to those of the Acquiring Fund. Please see the
Shareholder Guide
in
Exhibit C
to
this Information Statement/Prospectus for additional information on making purchases, redemptions and exchanges.
OTHER IMPORTANT INFORMATION CONCERNING THE REORGANIZATION
Fund Securities and Portfolio Repositioning
If the Reorganization is effected, management will analyze and evaluate the portfolio securities of the Acquired Fund being transferred to
the Acquiring Fund. However, each Funds portfolio securities are subject to adjustments in the ordinary course of business prior to, or in anticipation of, the Reorganization. In connection with the Reorganization, it is currently expected
that a substantial portion of the Acquired Funds portfolio assets (approximately 75%) will be sold prior to the consummation of the Reorganization. Actual portfolio sales will depend on portfolio composition, market conditions and other
factors at the time of, or prior to, the Reorganization and will be at the discretion of GSAMI. The extent and duration to which the portfolio securities of the Acquired Fund will be maintained by the Acquiring Fund will be determined consistent
with the Acquiring Funds investment objective, strategies and policies, any restrictions imposed by the Code and in the best interests of each Funds shareholders (including former shareholders of the Acquired Fund). Subject to market
conditions at the time of any such disposition, the disposition of the portfolio securities by the Funds may result in a capital gain or loss for the Funds. The actual tax consequences of any disposition of portfolio securities will vary depending
upon the specific security(ies) being sold and the Acquiring Funds ability to use any available tax loss carryforwards. It is currently estimated that such portfolio repositioning would have resulted in realized
15
capital gains of approximately $2.5 million, if such sales occurred as of March 18, 2014. Taking into account capital losses and capital loss carryforwards expected to be available to offset
such realized gains, it is currently estimated that the Acquired Fund will be required to distribute to its shareholders approximately $400,000 (approximately $0.14 per share) as a result of such portfolio repositioning, although the actual amount
of such distribution could be higher or lower depending on market conditions and on transactions entered into by the Acquired Fund prior to the Closing Date. Shareholders of the Acquired Fund will generally be taxed on any resulting capital gain
distributions. It is also currently estimated that such portfolio repositioning will result in brokerage and other transaction costs, including trading taxes, of approximately $42,000 (approximately 12 basis points). However, GSAMI has agreed
to pay these brokerage and other transaction costs.
Fund Distribution of Acquired Fund
Prior to the Closing Date, the Acquired Fund will pay its shareholders a cash distribution consisting of any undistributed investment
company taxable income and/or any undistributed realized net capital gains, including any net gains realized from any sales of assets prior to the Closing Date. These distributions will be taxable to shareholders that are subject to tax. It is
currently estimated that such portfolio repositioning would have resulted in realized capital gains of approximately $2.5 million, if such sales occurred as of March 18, 2014. Taking into account capital losses and capital loss carryforwards
expected to be available to offset such realized gains, it is currently estimated that the Acquired Fund will be required to distribute to its shareholders approximately $400,000 (approximately $0.14 per share) as a result of such portfolio
repositioning, although the actual amount of such distribution could be higher or lower depending on market conditions and on transactions entered into by the Acquired Fund prior to the Closing Date. Shareholders of the Acquired Fund will generally
be taxed on any resulting capital gain distributions.
Tax Capital Loss Carryforwards
Federal income tax law permits a regulated investment company to carry forward its net capital losses for a period of up to eight taxable
years. (Net capital losses that arise in a tax year beginning after December 22, 2010 will generally be able to be carried forward without limit.) As of October 31, 2013, the Acquired Fund had estimated capital loss carryforwards of
$1,203,434. Additionally, as of October 31, 2013, the Acquiring Fund had estimated capital loss carryforwards of $19,951,704. The amount of the Funds capital loss carryovers as of the date of the Reorganization may differ substantially
from these amounts. The Acquiring Funds ability to use the capital loss carryovers of the Acquired Fund, if any, to offset gains of Acquiring Fund in a given tax year after the Reorganization are expected to be limited by loss limitation rules
under Federal tax law. If capital loss carryovers of the Acquired Fund are limited by those rules, it is possible that the limitations could result in all or a portion of Acquired Funds capital loss carryovers, if any, eventually expiring
unused. The impact of those loss limitation rules will depend on the relative sizes of, and the losses and gains in, the Funds at the time of the Reorganization and thus cannot be calculated precisely at this time.
The ability of the Acquiring Fund to use capital losses to offset gains (even in the absence of the Reorganization) depends on factors
other than loss limitations, such as the future realization of capital gains or losses.
CAPITALIZATION
The following table sets forth the capitalization of the Funds as of October 31, 2013. The table also sets forth the pro forma combined capitalization of the combined Fund as if the Reorganization
had occurred on October 31, 2013. If the Reorganization is consummated, the net assets, net asset value per share and shares outstanding on the Closing Date will vary from the information below due to changes in the market value of the
portfolio securities of the Funds between October 31, 2013 and the Closing Date, changes in the amount of
16
undistributed net investment income and net realized capital gains of the Funds during that period resulting from income and distributions, and changes in the accrued liabilities of the Funds
during the same period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Acquired Fund
(October 31, 2013)
|
|
|
The Acquiring Fund
(October 31, 2013)
|
|
|
Adjustments
|
|
|
Pro Forma
(October 31, 2013)
|
|
Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares
|
|
$
|
18,091
|
|
|
$
|
14,097,045
|
|
|
|
N/A
|
|
|
$
|
14,115,136
|
|
Class C Shares
|
|
$
|
8,870
|
|
|
$
|
2,330,963
|
|
|
|
N/A
|
|
|
$
|
2,339,833
|
|
Institutional Shares
|
|
$
|
23,102,039
|
|
|
$
|
43,207,767
|
|
|
|
N/A
|
|
|
$
|
66,309,806
|
|
Class IR Shares
|
|
$
|
9,096
|
|
|
$
|
0
|
|
|
|
N/A
|
|
|
$
|
9,096
|
|
Net Asset Value Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares
|
|
$
|
8.92
|
|
|
$
|
19.21
|
|
|
|
N/A
|
|
|
$
|
19.21
|
|
Class C Shares
|
|
$
|
8.84
|
|
|
$
|
18.02
|
|
|
|
N/A
|
|
|
$
|
18.02
|
|
Institutional Shares
|
|
$
|
8.99
|
|
|
$
|
20.13
|
|
|
|
N/A
|
|
|
$
|
20.13
|
|
Class IR Shares
|
|
$
|
8.97
|
|
|
$
|
20.13
|
(a)
|
|
|
N/A
|
|
|
$
|
20.13
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Acquired Fund
(October 31, 2013)
|
|
|
The Acquiring Fund
(October 31, 2013)
|
|
|
Adjustments
|
|
|
Pro Forma
(October 31, 2013)
|
|
Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares
|
|
|
2,028
|
|
|
|
733,666
|
|
|
|
(1,086
|
)
(b)
|
|
|
734,608
|
|
Class C Shares
|
|
|
1,003
|
|
|
|
129,382
|
|
|
|
(511
|
)
(b)
|
|
|
129,874
|
|
Institutional Shares
|
|
|
2,570,215
|
|
|
|
2,146,290
|
|
|
|
(1,422,573
|
)
(b)
|
|
|
3,293,932
|
|
Class IR Shares
|
|
|
1,014
|
|
|
|
0
|
|
|
|
(562
|
)
(b)
|
|
|
452
|
|
|
(a)
|
Assumed share class existed at October 31, 2013 with NAV of $20.13.
|
|
(b)
|
Adjustment to reflect reduction of shares based on Goldman Sachs Asia Equity NAVs.
|
It is impossible to predict how many shares of the Acquiring Fund will actually be received and distributed by the Acquired Fund on the
Closing Date. The table should not be relied upon to determine the amount of the Acquiring Fund shares that will actually be received and distributed.
TERMS OF THE AGREEMENT AND PLAN OF REORGANIZATION
The description of the Plan contained herein includes the material provisions of the Plan, but this description is qualified in its entirety by the attached form copy of the Plan.
Timing
. The Reorganization is scheduled to occur on or about April 25, 2014 (
i.e.
, Closing Date), but may occur on such
earlier or later date as the parties agree in writing.
Transfer and Valuation of the Assets
. The Plan
contemplates the transfer of all of the assets of the Acquired Fund to, and the assumption of the liabilities of the Acquired Fund by, the Acquiring Fund, in exchange for the applicable shares of the Acquiring Fund having an aggregate net asset
value equal to the aggregate net asset value of the applicable shares of the Acquired Fund on the Closing Date. The Acquired Fund would then distribute to its shareholders the portion of the Acquiring Fund shares to which each such shareholder is
entitled. Thereafter, the Acquired Fund would be liquidated. All computations of value will be made by the State Street Bank and Trust Company, in its capacity as administrator for the Acquired Fund.
Conditions to Closing the Reorganization
. The obligation of each Fund to consummate the Reorganization is subject to the
satisfaction of certain conditions, including the Funds performance of all of its obligations under the Plan, the receipt of certain documents and financial statements from the Funds and the receipt of all consents, orders and permits
necessary to consummate the Reorganization. The Funds obligations are also subject to the receipt of a favorable opinion of Dechert LLP as to the U.S. federal income tax consequences of the Reorganization.
17
Termination of the Plan.
The Plan may be terminated and the Reorganization may
be abandoned by resolution of the Board at any time prior to the Closing Date, if circumstances should develop that, in the opinion of the Board, make proceeding with the Plan inadvisable.
Cost of the Reorganization
. GSAMI (or an affiliate) has agreed to pay the legal and other costs associated with each Funds
participation in the Reorganization.
TAX STATUS OF THE REORGANIZATION
The Reorganization is conditioned upon the receipt of an opinion from Dechert LLP, counsel to the Trust, substantially to the effect
that, for federal income tax purposes:
|
|
The transfer to the Acquiring Fund of all of the Acquired Funds assets in exchange solely for the issuance of the Acquiring Fund shares to the
Acquired Fund and the assumption of all of the Acquired Funds liabilities by the Acquiring Fund, followed by the distribution of the Acquiring Fund shares to the Acquired Fund shareholders in complete liquidation of the Acquired Fund, will
constitute a reorganization within the meaning of Section 368(a) of the Code;
|
|
|
No gain or loss will be recognized by the Acquired Fund upon: (i) the transfer of all of its assets to the Acquiring Fund as described above or
(ii) the distribution by the Acquired Fund of Acquiring Fund shares to the Acquired Funds shareholders in complete liquidation of the Acquired Fund, except for (A) any gain or loss that may be recognized on the transfer of
section 1256 contracts as defined in Section 1256(b) of the Code, and (B) any gain that may be recognized on the transfer of stock in a passive foreign investment company as defined in Section 1297(a) of
the Code;
|
|
|
The tax basis of each asset of the Acquired Fund in the hands of the Acquiring Fund will be the same as the tax basis of that asset in the hands of the
Acquired Fund immediately before the transfer of the asset, increased by the amount of gain, if any, recognized by the Acquired Fund on the transfer;
|
|
|
The holding period of each asset of the Acquired Fund in the hands of the Acquiring Fund will include the period during which that asset was held by
the Acquired Fund (except where investment activities of the Acquiring Fund have the effect of reducing or eliminating the holding period with respect to an asset);
|
|
|
No gain or loss will be recognized by the Acquiring Fund upon its receipt of the Acquired Funds assets solely in exchange for shares of the
Acquiring Fund and the assumption of the Acquired Funds liabilities;
|
|
|
No gain or loss will be recognized by the Acquired Fund shareholders upon the exchange of their Acquired Fund shares for the applicable Acquiring Fund
shares as part of the Reorganization;
|
|
|
The aggregate tax basis of the applicable Acquiring Fund shares received by the Acquired Fund shareholders in the Reorganization will be the same as
the aggregate tax basis of the shares of the Acquired Fund surrendered in exchange therefor; and
|
|
|
Each Acquired Fund shareholders holding period for the applicable Acquiring Fund shares received in the Reorganization will include the holding
period of the shares of the Acquired Fund that were surrendered in exchange therefor, provided that the shareholder held the Acquired Fund shares as capital assets on the date of the exchange.
|
In rendering such opinion, counsel shall rely upon, among other things, certain facts, assumptions and representations of the Trust, on
behalf of the Funds.
No tax ruling has been or will be received from the IRS in connection with the Reorganization. An
opinion of counsel is not binding on the IRS or a court, and no assurance can be given that the IRS would not assert, or a court would not sustain, a contrary position.
18
The foregoing discussion is very general. The foregoing consequences may not apply to
certain classes of taxpayers who are subject to special circumstances, such as shareholders who are not citizens or residents of the United States, insurance companies, tax-exempt organizations, financial institutions, dealers in securities or
foreign currencies, or persons who hold their shares as part of a straddle or conversion transaction. This discussion does not address any state, local or foreign tax consequences of the Reorganization. You should consult your tax adviser for the
particular tax consequences to you of the transaction, including the applicability of any state, local or foreign tax laws.
CHARTER DOCUMENTS OF GOLDMAN SACHS TRUST
The Funds are each series of the Trust. Accordingly, the operations of each Fund are governed by the Trusts Declaration of Trust
and Amended and Restated By-Laws, each as amended. The operations of each Fund are also governed by applicable Delaware law and are subject to the provisions of the 1940 Act and the rules and regulations of the SEC thereunder.
FUNDAMENTAL AND NON-FUNDAMENTAL INVESTMENT POLICIES OF THE FUNDS
The Funds have adopted fundamental investment policies which may not be changed without the affirmative vote of the holders of a
majority of the outstanding voting securities (as defined in the 1940 Act) of the Fund. Many of the Funds fundamental investment policies are similar or identical, though the Funds differ in certain fundamental investment policies,
as discussed more fully below.
Under the 1940 Act, the vote of a majority of the outstanding voting securities means the
affirmative vote of the lesser of (i) 67% or more of the voting securities present at a meeting, if the holders of more than 50% of the outstanding voting securities of such company are present or represented by proxy; or (ii) more than
50% of the outstanding voting securities of such company. For purposes of the following limitations (except for the asset coverage requirement with respect to borrowings, which is subject to different requirements under the 1940 Act), any limitation
which involves the maximum percentage will not be considered violated unless an excess over the percentage occurs immediately after, and is caused by, an acquisition or encumbrance of securities or assets of, or borrowings by, a Fund. With respect
to a Funds fundamental investment restriction on borrowing, in the event that asset coverage (as defined in the 1940 Act) at any time falls below 300%, the Fund, within three days thereafter (not including Sundays and holidays) or
such longer period as the SEC may prescribe by rules and regulations, will reduce the amount of its borrowings to the extent required so that the asset coverage of such borrowings will be at least 300%.
In addition to the fundamental investment policies, the Funds have adopted certain non-fundamental policies which can be changed or
amended by action of the Trustees of such Fund without approval of shareholders. The
19
current fundamental and non-fundamental investment policies of the Acquired Fund and the Acquiring Fund are listed below.
|
|
|
The Acquired Fund
|
|
The Acquiring Fund
|
Fundamental Investment Policies
|
|
Concentration Policy
|
|
|
The Acquired Fund may not invest more than 25% of its total assets in the securities of one or more issuers conducting their principal business activities in the same industry
(excluding the U.S. Government or any of its agencies or instrumentalities), except that the Acquired Fund may invest up to 35% of its total assets in the securities of one or more issuers conducting their principal business activities in the same
industry if, at the time of investment, that industry represents 20% or more of the Acquired Funds benchmark index.
|
|
The Acquiring Fund may not invest 25% or more of its total assets in the securities of one or more issuers conducting their principal business activities in the same industry
(excluding the U.S. Government or any of its agencies or instrumentalities).
|
Borrowing
|
|
|
The Acquired Fund may not borrow money, except (a) the Fund, to the extent permitted by applicable law, may borrow from banks (as
defined in the 1940 Act), other affiliated investment companies and other persons or through reverse repurchase agreements in amounts up to 33 1/3% of its total assets (including the amount borrowed), (b) the Fund may, to the extent permitted
by applicable law, borrow up to an additional 5% of its total assets for temporary purposes, (c) the Fund may obtain such short-term credits as may be necessary for the clearance of purchases and sales of portfolio securities, (d) the Fund
may purchase securities on margin to the extent permitted by applicable law and (e) the Fund may engage in transactions in mortgage dollar rolls which are accounted for as financings.
The following interpretation applies to, but is not part of, this fundamental policy:
In determining whether a particular investment in portfolio instruments or participation in portfolio transactions is subject to this borrowing policy, the accounting treatment of such instrument or participation shall be considered, but shall not
by itself be determinative. Whether a particular instrument or transaction constitutes a borrowing shall be determined by the Board, after consideration of all of the relevant circumstances.
|
|
The Acquiring Fund may not borrow money, except (a) the Fund may borrow from banks (as defined in the 1940 Act) or through reverse
repurchase agreements in amounts up to 33-1/3% of its total assets (including the amount borrowed), (b) the Fund may, to the extent permitted by applicable law, borrow up to an additional 5% of its total assets for temporary purposes,
(c) the Fund may obtain such short-term credits as may be necessary for the clearance of purchases and sales of portfolio securities, (d) the Fund may purchase securities on margin to the extent permitted by applicable law and (e) the
Fund may engage in transactions in mortgage dollar rolls which are accounted for as financings.
The following interpretation applies to, but is not part of, this fundamental policy: In determining whether a particular investment in portfolio instruments or participation in portfolio transactions is
subject to this borrowing policy, the accounting treatment of such instrument or participation shall be considered, but shall not by itself be determinative. Whether a particular instrument or transaction constitutes a borrowing shall be determined
by the Board, after consideration of all of the relevant circumstances.
|
20
|
|
|
The Acquired Fund
|
|
The Acquiring Fund
|
|
Loans
|
|
|
The Acquired Fund may not make loans, except through (a) the purchase of debt obligations in accordance with the Funds investment objective and policies,
(b) repurchase agreements with banks, brokers, dealers and other financial institutions, (c) loans of securities as permitted by applicable law, and (d) loans to affiliates of the Fund to the extent permitted by law.
|
|
The Acquiring Fund may not make loans, except through (a) the purchase of debt obligations in accordance with the Funds investment objective and policies, (b) repurchase
agreements with banks, brokers, dealers and other financial institutions, (c) loans of securities as permitted by applicable law.
|
|
Underwriting
|
|
The Funds may not underwrite securities issued by others, except to the extent that the sale of portfolio securities by the Fund may be deemed to be an
underwriting.
|
|
Real Estate
|
|
The Funds may not purchase, hold or deal in real estate, although a Fund may purchase and sell securities that are secured by real estate or interests therein,
securities of real estate investment trusts and mortgage-related securities and may hold and sell real estate acquired by a Fund as a result of the ownership of securities.
|
|
Commodities
|
|
The Funds may not invest in commodities or commodity contracts, except that the Fund may invest in currency and financial instruments and contracts that are commodities
or commodity contracts.
|
|
Senior Securities
|
|
The Funds may not issue senior securities to the extent such issuance would violate applicable law.
|
|
Diversification
|
|
|
N/A
|
|
The Acquiring Fund may not make any investment inconsistent with the Funds classification as a diversified company under the 1940 Act.
|
Non-Fundamental Investment Policies
The Funds may not:
(a)
|
Invest in companies for the purpose of exercising control or management.
|
(b)
|
Invest more than 15% of the Funds net assets in illiquid investments including illiquid repurchase agreements with a notice or demand period of more than seven
days, securities which are not readily marketable and restricted securities not eligible for resale pursuant to Rule 144A under the Securities Act of 1933 (the 1933 Act).
|
(c)
|
Purchase additional securities if the Funds borrowings (excluding covered mortgage dollar rolls and such short-term credits as may be necessary for the clearance
of purchases and sales of portfolio securities) exceed 5% of its net assets.
|
(d)
|
Make short sales of securities, except the Fund may make short sales against the box.
|
Each Fund may, notwithstanding any other fundamental investment restriction or policy, invest some or all of its assets in a single
open-end investment company or series thereof with substantially the same fundamental investment restrictions and policies as the Fund.
21
For purposes of the Funds industry concentration policies, the Investment Adviser may
analyze the characteristics of a particular issuer and instrument and may assign an industry classification consistent with those characteristics. The Investment Adviser may, but need not, consider industry classifications provided by third parties,
and the classifications applied to Fund investments will be informed by applicable law.
ADDITIONAL INFORMATION ABOUT THE FUNDS
Other Investment Practices and Securities
The following tables identify
some of the investment techniques that may (but are not required to) be used by the Funds in seeking to achieve their investment objectives. The tables also highlight the differences and similarities between the Funds in their use of these
techniques and other investment practices and investment securities. Numbers in these tables show allowable usage only; for actual usage, consult the Funds annual/ semi-annual reports. For more information about these and other investment
practices and securities, see
Exhibit B
. Each Fund publishes on its website (http://www.gsamfunds.com) complete portfolio holdings for the Fund as of the end of each calendar quarter subject to a fifteen calendar-day lag between the date of
the information and the date on which the information is disclosed. In addition, the Funds publish on their website month-end top ten holdings subject to a fifteen calendar-day lag between the date of the information and the date on which the
information is disclosed. This information will be available on the website until the date on which a Fund files its next quarterly portfolio holdings report on Form N-CSR or Form N-Q with the SEC. In addition, a description of the Funds
policies and procedures with respect to the disclosure of the Funds portfolio holdings is available in the Funds SAI.
10
|
Percent of total assets (italic type)
|
10
|
Percent of net assets (excluding borrowings for investment purposes) (roman type)
|
|
No specific percentage limitation on usage; limited only by the objectives and strategies of the Fund
|
|
|
|
|
|
|
|
Asia
Equity
Fund
|
|
China
Equity
Fund
|
Investment Practices
|
|
|
|
|
Borrowings
|
|
33 1/3
|
|
33 1/3
|
Cross Hedging of Currencies
|
|
|
|
|
Custodial Receipts and Trust Certificates
|
|
|
|
|
Direct Equity Investment
|
|
|
|
5
|
Equity, Index and Currency Swaps
|
|
|
|
|
Foreign Currency Transactions (including forward contracts)
|
|
|
|
|
Futures Contracts and Options and Swaps on Futures Contracts (including index futures)
|
|
|
|
|
Illiquid Investments*
|
|
15
|
|
15
|
Initial Public Offerings (IPOs)
|
|
|
|
|
Investment Company Securities (including ETFs)**
|
|
10
|
|
10
|
Options on Foreign Currencies
1
|
|
|
|
|
Options on Securities and Securities Indices
2
|
|
|
|
|
Preferred Stock, Warrants and Stock Purchase Rights
|
|
|
|
|
Repurchase Agreements
|
|
|
|
|
Unseasoned Companies
|
|
|
|
|
When-Issued Securities and Forward Commitments
|
|
|
|
|
|
|
|
|
|
*
|
Illiquid investments are any investments which cannot be disposed of in seven days in the ordinary course of business at approximately the price at which the Fund
values the investment.
|
22
**
|
This percentage limitation does not apply to a Funds investments in investment companies (including ETFs) where a higher percentage limitation is permitted under
the terms of an SEC exemptive order or SEC exemptive rule.
|
1
|
The Funds may purchase and sell call and put options on foreign currencies.
|
2
|
The Funds may sell covered call and put options and purchase call and put options on securities and securities indices in which they may invest.
|
10
|
Percent of total assets (italic type)
|
10
|
Percent of net assets (including borrowings for investment purposes) (roman type)
|
|
No specific percentage limitation on usage; limited only by the objective and strategies of the Fund
|
|
|
|
|
|
|
|
Asia
Equity
Fund
|
|
China
Equity
Fund
|
Investment Securities
|
|
|
|
|
Asset-Backed and Mortgage-Backed Securities
1
|
|
|
|
|
Bank Obligations
1,2
|
|
|
|
|
Convertible Securities
|
|
|
|
|
Corporate Debt Obligations
1
|
|
|
|
|
Depositary Receipts
|
|
|
|
|
Emerging Country Securities
|
|
|
|
|
Equity Investments
|
|
80+
|
|
80+
|
Fixed Income Securities
|
|
20
4
|
|
20
5
|
Foreign Government Securities
1
|
|
|
|
|
Foreign Securities
|
|
|
|
|
Non-Investment Grade Fixed Income Securities (commonly known as junk bonds)
1,3
|
|
|
|
|
Participation Notes
|
|
|
|
|
Real Estate Investment Trusts
|
|
|
|
|
Structured Securities (which may include equity linked notes)
|
|
|
|
|
Temporary Investments
|
|
100
|
|
100
|
U.S. Government Securities
1
|
|
|
|
|
|
|
|
|
|
1
|
Limited by the amount the Fund invests in fixed income securities.
|
2
|
Issued by U.S. or foreign banks.
|
3
|
May be BB+ or lower by Standard & Poors, Ba1 or lower by Moodys or have a comparable credit rating by another NRSRO at the time of
investment.
|
4
|
The Asia Equity Fund may invest in the aggregate up to 20% of its Net Assets in: (i) fixed income securities; and (ii) equity investments in
issuers located in non-Asian countries and Japan.
|
5
|
The China Equity Fund may invest in the aggregate up to 20% of its Net Assets in investments in developed countries and emerging countries other than
China.
|
Investment Adviser
GSAMI, regulated by the Financial Services Authority and a registered investment adviser since 1991, is an affiliate of Goldman, Sachs & Co. (Goldman Sachs). As of September 31,
2013, Goldman Sachs Asset Management, L.P. (GSAM), including its investment advisory affiliates, one of which is GSAMI, had assets under management of approximately $807.6 billion.
The Investment Adviser provides day-to-day advice regarding the Funds portfolio transactions. The Investment Adviser makes the
investment decisions for the Fund and places purchase and sale orders for the
23
Funds portfolio transactions in U.S. and foreign markets. As permitted by applicable law, these orders may be directed to any brokers, dealers, futures commission merchants or derivative
clearing merchants, including Goldman Sachs and its affiliates. While the Investment Adviser is ultimately responsible for the management of the Funds, it is able to draw upon the research and expertise of its asset management affiliates for
portfolio decisions and management with respect to certain portfolio securities. In addition, the Investment Adviser has access to the research and certain proprietary technical models developed by Goldman Sachs (subject to legal, internal,
regulatory and Chinese Wall restrictions), and will apply quantitative and qualitative analysis in determining the appropriate allocations among categories of issuers and types of securities.
The Investment Adviser also performs the following additional services for the Funds:
|
|
Supervises all non-advisory operations of the Funds
|
|
|
Provides personnel to perform necessary executive, administrative and clerical services to the Funds
|
|
|
Arranges for the preparation of all required tax returns, reports to shareholders, prospectuses and statements of additional information and other
reports filed with the SEC and other regulatory authorities
|
|
|
Maintains the records of each Fund
|
|
|
Provides office space and all necessary office equipment and services
|
As compensation for its services and its assumption of certain expenses, the Investment Adviser is entitled to the following fees,
computed daily and payable monthly, at the annual rates listed below (as a percentage of each respective Funds average daily net assets):
|
|
|
|
|
|
|
Fund
|
|
Contractual
Management
Fee
Annual Rate
|
|
Average Daily Net Assets
|
|
Actual Rate For
the
Fiscal Year Ended
October 31, 2013
|
Acquiring Fund
|
|
1.00%
0.90%
0.86%
0.84%
0.82%
|
|
First $1 Billion
Next $1 Billion
Next $3 Billion
Next $3 Billion
Over $8 Billion
|
|
1.00%
|
|
|
|
|
Acquired Fund
|
|
1.10%
0.99%
0.94%
0.92%
0.90%
|
|
First $1 Billion
Next $1 Billion
Next $3 Billion
Next $3 Billion
Over $8 Billion
|
|
1.10%
|
The Investment Adviser may waive a portion of its management fee from time to time and may discontinue or
modify any such waivers in the future, consistent with the terms of any fee waiver arrangements in place.
A discussion
regarding the basis for the Board of Trustees approval of the Management Agreement for the Funds for 2013 is available in the Funds annual report dated October 31, 2013.
Distributor and Transfer Agent
Goldman Sachs, 200 West Street, New
York, New York 10282, serves as the exclusive distributor (the Distributor) of the each Funds shares. Goldman Sachs, 71 S. Wacker Drive, Chicago, Illinois 60606, also serves as each Funds transfer agent (the
Transfer Agent) and, as such, performs various shareholder servicing functions.
24
For its transfer agency services, Goldman Sachs is entitled to receive a transfer agency fee
equal, on an annualized basis, to 0.04% of average daily net assets with respect to the Institutional Shares and 0.19% of average daily net assets with respect to Class A, Class C and Class IR Shares.
From time to time, Goldman Sachs or any of its affiliates may purchase and hold shares of the Funds. Goldman Sachs and its affiliates
reserve the right to redeem at any time some or all of the shares acquired for their own accounts.
Activities of Goldman Sachs and its
Affiliates and Other Accounts Managed by Goldman Sachs
The involvement of the Investment Adviser, Goldman Sachs and their
affiliates in the management of, or their interest in, other accounts and other activities of Goldman Sachs may present conflicts of interest with respect to the Fund or limit the Funds investment activities. Goldman Sachs is a worldwide, full
service investment banking, broker dealer, asset management and financial services organization and a major participant in global financial markets that provides a wide range of financial services to a substantial and diversified client base that
includes corporations, financial institutions, governments and high-net-worth individuals. As such, it acts as an investor, investment banker, research provider, investment manager, financier, adviser, market maker, trader, prime broker, lender,
agent and principal. In those and other capacities, Goldman Sachs advises clients in all markets and transactions and purchases, sells, holds and recommends a broad array of investments, including securities, derivatives, loans, commodities,
currencies, credit default swaps, indices, baskets and other financial instruments and products for its own account or for the accounts of its customers and has other direct and indirect interests in the global fixed income, currency, commodity,
equities, bank loans and other markets in which the Fund directly and indirectly invests. Thus, it is likely that the Fund will have multiple business relationships with and will invest in, engage in transactions with, make voting decisions with
respect to, or obtain services from entities for which Goldman Sachs performs or seeks to perform investment banking or other services. The Investment Adviser and/or certain of its affiliates are the managers of the Goldman Sachs Funds. The
Investment Adviser and its affiliates earn fees from this and other relationships with the Fund. Although these fees are generally based on asset levels, the fees are not directly contingent on Fund performance, and Goldman Sachs would still receive
significant compensation from the Fund even if shareholders lose money. Goldman Sachs and its affiliates engage in proprietary trading and advise accounts and funds which have investment objectives similar to those of the Fund and/or which engage in
and compete for transactions in the same types of securities, currencies and instruments as the Fund. Goldman Sachs and its affiliates will not have any obligation to make available any information regarding their proprietary activities or
strategies, or the activities or strategies used for other accounts managed by them, for the benefit of the management of the Fund. The results of the Funds investment activities, therefore, may differ from those of Goldman Sachs, its
affiliates and other accounts managed by Goldman Sachs, and it is possible that the Fund could sustain losses during periods in which Goldman Sachs and its affiliates and other accounts achieve significant profits on their trading for proprietary or
other accounts. In addition, the Fund may enter into transactions in which Goldman Sachs or its other clients have an adverse interest. For example, the Fund may take a long position in a security at the same time that Goldman Sachs or other
accounts managed by the Investment Adviser take a short position in the same security (or vice versa). These and other transactions undertaken by Goldman Sachs, its affiliates or Goldman Sachs advised clients may, individually or in the aggregate
adversely impact the Fund. Transactions by one or more Goldman Sachs advised clients or the Investment Adviser may have the effect of diluting or otherwise disadvantaging the values, prices or investment strategies of the Fund. The Funds
activities may be limited because of regulatory restrictions applicable to Goldman Sachs and its affiliates, and/or their internal policies designed to comply with such restrictions. As a global financial services firm, Goldman Sachs also provides a
wide range of investment banking and financial services to issuers of securities and investors in securities. Goldman Sachs, its affiliates and others associated with it may create markets or specialize in, have positions in and effect transactions
in, securities of issuers held by the Fund, and may also perform or seek to perform investment banking and financial services for those issuers. Goldman Sachs and its affiliates may have business relationships with and purchase or distribute or sell
services or products from or to distributors, consultants or others who recommend the Fund or who engage in transactions with or for the Fund. For more information about conflicts of interest, see the SAI.
25
The Funds may make brokerage and other payments to Goldman Sachs and its affiliates in
connection with the Funds portfolio investment transactions in accordance with applicable law.
DISTRIBUTIONS
Each Fund pays distributions from its investment income and from net realized capital gains. You may
choose to have distributions paid in:
|
|
Additional shares of the same class of the Fund;
|
|
|
Shares of the same class from another Goldman Sachs Fund. Special restrictions may apply. See the SAI.
|
You may indicate your election on your Account Application. Any changes may be submitted in writing or via telephone, in some instances,
to the Transfer Agent (either directly or through your Authorized Institution) at any time before the record date for a particular distribution. If you do not indicate any choice, your distributions will be reinvested automatically in the applicable
Fund. Distributions from net investment income and net capital gains, if any, are declared and paid annually for each Fund. If cash distributions are elected with respect to a Funds annual distributions from net investment income, then cash
distributions must also be elected with respect to the short-term capital gains component, if any, of the Funds annual distributions. The election to reinvest distributions in additional shares will not affect the tax treatment of such
distributions, which will be treated as received by you and then used to purchase the shares.
The Funds investments in
foreign securities may be subject to foreign withholding taxes. Under certain circumstances, the Funds may elect to pass-through these taxes to you. If this election is made, a proportionate amount of such taxes will constitute a distribution to
you, which would allow you either (i) to credit such proportionate amount of foreign taxes against your U.S. federal income tax liability or (ii) to take such amount as an itemized deduction.
From time to time a portion of a Funds distributions may constitute a return of capital for tax purposes, and/or may include
amounts in excess of the Funds net investment income for the period calculated in accordance with good accounting practice. When you purchase shares of a Fund, part of the NAV per share may be represented by undistributed income and/or
realized gains that have previously been earned by the Fund. Therefore, subsequent distributions on such shares from such income and/or realized gains may be taxable to you even if the NAV of the shares is, as a result of the distributions, reduced
below the cost of such shares and the distributions (or portions thereof) represent a return of a portion of the purchase price.
26
FINANCIAL HIGHLIGHTS
The financial tables are intended to help you understand the Acquiring Funds financial performance for the past five years. Certain
information reflects financial results for a single Acquiring Fund share. The total returns in the table represent the rate that an investor would have earned or lost on an investment in the Fund (assuming reinvestment of all dividends and
distributions). The information has been audited by PricewaterhouseCoopers LLP, whose report, along with the Funds financial statement, is included in the Funds annual report (available upon request). Because Class IR Shares of the
Acquiring Fund recently commenced investment operations, financial highlights are not available.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Equity FundClass A Shares
|
|
|
For the Fiscal Years Ended October 31,
|
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
Net asset value, beginning of period
|
|
|
$
|
17.78
|
|
|
|
$
|
17.33
|
|
|
|
$
|
19.14
|
|
|
|
$
|
15.39
|
|
|
|
$
|
10.11
|
|
|
|
|
|
|
|
Income (loss) from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
a
|
|
|
|
0.04
|
|
|
|
|
0.11
|
|
|
|
|
0.12
|
|
|
|
|
0.07
|
b
|
|
|
|
0.12
|
|
Net realized and unrealized gain (loss)
|
|
|
|
1.51
|
|
|
|
|
0.41
|
|
|
|
|
(1.69
|
)
|
|
|
|
3.84
|
|
|
|
|
5.32
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
|
1.55
|
|
|
|
|
0.52
|
|
|
|
|
(1.57
|
)
|
|
|
|
3.91
|
|
|
|
|
5.44
|
|
|
|
|
|
|
|
Distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
|
(0.12
|
)
|
|
|
|
(0.07
|
)
|
|
|
|
(0.24
|
)
|
|
|
|
(0.16
|
)
|
|
|
|
(0.22
|
)
|
From net realized gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
Total distributions
|
|
|
|
(0.12
|
)
|
|
|
|
(0.07
|
)
|
|
|
|
(0.24
|
)
|
|
|
|
(0.16
|
)
|
|
|
|
(0.24
|
)
|
|
|
|
|
|
|
Increase from regulatory settlements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.08
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
$
|
19.21
|
|
|
|
$
|
17.78
|
|
|
|
$
|
17.33
|
|
|
|
$
|
19.14
|
|
|
|
$
|
15.39
|
|
|
|
|
|
|
|
Total return
c
|
|
|
|
8.72
|
%
|
|
|
|
3.05
|
%
|
|
|
|
(8.33
|
)%
|
|
|
|
25.59
|
%
|
|
|
|
55.89
|
%
e
|
Net assets, end of period (in 000s)
|
|
|
$
|
14,097
|
|
|
|
$
|
15,136
|
|
|
|
$
|
39,688
|
|
|
|
$
|
47,238
|
|
|
|
$
|
43,833
|
|
Ratio of net expenses to average net assets
|
|
|
|
1.72
|
%
|
|
|
|
1.60
|
%
|
|
|
|
1.60
|
%
|
|
|
|
1.60
|
%
|
|
|
|
1.60
|
%
|
Ratio of net investment income to average net assets
|
|
|
|
0.21
|
%
|
|
|
|
0.66
|
%
|
|
|
|
0.61
|
%
|
|
|
|
0.40
|
%
b
|
|
|
|
0.97
|
%
|
Ratios assuming no expense reductions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of total expenses to average net assets
|
|
|
|
2.25
|
%
|
|
|
|
2.24
|
%
|
|
|
|
2.17
|
%
|
|
|
|
2.32
|
%
|
|
|
|
2.36
|
%
|
Portfolio turnover
rate
d
|
|
|
|
102
|
%
|
|
|
|
83
|
%
|
|
|
|
107
|
%
|
|
|
|
85
|
%
|
|
|
|
117
|
%
|
See footnotes below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Equity FundClass C Shares
|
|
|
For the Fiscal Years Ended October 31,
|
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
Net asset value, beginning of period
|
|
|
$
|
16.77
|
|
|
|
$
|
16.39
|
|
|
|
$
|
18.12
|
|
|
|
$
|
14.64
|
|
|
|
$
|
9.51
|
|
|
|
|
|
|
|
Income (loss) from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
a
|
|
|
|
(0.10
|
)
|
|
|
|
(0.03
|
)
|
|
|
|
(0.03
|
)
|
|
|
|
(0.05
|
)
b
|
|
|
|
0.02
|
|
Net realized and unrealized gain (loss)
|
|
|
|
1.43
|
|
|
|
|
0.41
|
|
|
|
|
(1.59
|
)
|
|
|
|
3.64
|
|
|
|
|
5.07
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
|
1.33
|
|
|
|
|
0.38
|
|
|
|
|
(1.62
|
)
|
|
|
|
3.59
|
|
|
|
|
5.09
|
|
|
|
|
|
|
|
Distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
(0.11
|
)
|
|
|
|
(0.11
|
)
|
|
|
|
(0.02
|
)
|
From net realized gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
Total distributions
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
(0.11
|
)
|
|
|
|
(0.11
|
)
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
Increase form regulatory settlements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.08
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
$
|
18.02
|
|
|
|
$
|
16.77
|
|
|
|
$
|
16.39
|
|
|
|
$
|
18.12
|
|
|
|
$
|
14.64
|
|
|
|
|
|
|
|
Total return
c
|
|
|
|
7.87
|
%
|
|
|
|
2.31
|
%
|
|
|
|
(9.00
|
)%
|
|
|
|
24.53
|
%
|
|
|
|
54.64
|
%
e
|
Net assets, end of period (in 000s)
|
|
|
$
|
2,331
|
|
|
|
$
|
2,684
|
|
|
|
$
|
3,219
|
|
|
|
$
|
4,986
|
|
|
|
$
|
4,160
|
|
Ratio of net expenses to average net assets
|
|
|
|
2.47
|
%
|
|
|
|
2.35
|
%
|
|
|
|
2.35
|
%
|
|
|
|
2.35
|
%
|
|
|
|
2.35
|
%
|
Ratio of net investment income (loss) to average net assets
|
|
|
|
(0.56
|
)%
|
|
|
|
(0.18
|
)%
|
|
|
|
(0.18
|
)%
|
|
|
|
(0.32
|
)%
b
|
|
|
|
0.20
|
%
|
Ratios assuming no expense reductions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of total expenses to average net assets
|
|
|
|
2.99
|
%
|
|
|
|
2.97
|
%
|
|
|
|
2.92
|
%
|
|
|
|
3.07
|
%
|
|
|
|
3.11
|
%
|
Portfolio turnover
rate
d
|
|
|
|
102
|
%
|
|
|
|
83
|
%
|
|
|
|
107
|
%
|
|
|
|
85
|
%
|
|
|
|
117
|
%
|
See footnotes below.
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Equity FundInstitutional Shares
|
|
|
For the Fiscal Years Ended October 31,
|
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
Net asset value, beginning of period
|
|
|
$
|
18.71
|
|
|
|
$
|
18.24
|
|
|
|
$
|
20.12
|
|
|
|
$
|
16.16
|
|
|
|
$
|
10.70
|
|
|
|
|
|
|
|
Income (loss) from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
a
|
|
|
|
0.12
|
|
|
|
|
0.19
|
|
|
|
|
0.23
|
|
|
|
|
0.14
|
b
|
|
|
|
0.17
|
|
Net realized and unrealized gain (loss)
|
|
|
|
1.58
|
|
|
|
|
0.43
|
|
|
|
|
(1.80
|
)
|
|
|
|
4.03
|
|
|
|
|
5.59
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
|
1.70
|
|
|
|
|
0.62
|
|
|
|
|
(1.57
|
)
|
|
|
|
4.17
|
|
|
|
|
5.76
|
|
|
|
|
|
|
|
Distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
|
(0.28
|
)
|
|
|
|
(0.15
|
)
|
|
|
|
(0.31
|
)
|
|
|
|
(0.21
|
)
|
|
|
|
(0.36
|
)
|
From net realized gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
Total distributions
|
|
|
|
(0.28
|
)
|
|
|
|
(0.15
|
)
|
|
|
|
(0.31
|
)
|
|
|
|
(0.21
|
)
|
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
Increase from regulatory settlements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.08
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
$
|
20.13
|
|
|
|
$
|
18.71
|
|
|
|
$
|
18.24
|
|
|
|
$
|
20.12
|
|
|
|
$
|
16.16
|
|
|
|
|
|
|
|
Total return
c
|
|
|
|
9.16
|
%
|
|
|
|
3.50
|
%
|
|
|
|
(7.94
|
)%
|
|
|
|
26.05
|
%
|
|
|
|
56.48
|
%
e
|
Net assets, end of period (in 000s)
|
|
|
$
|
43,208
|
|
|
|
$
|
44,345
|
|
|
|
$
|
27,071
|
|
|
|
$
|
24,864
|
|
|
|
$
|
20,575
|
|
Ratio of net expenses to average net assets
|
|
|
|
1.32
|
%
|
|
|
|
1.20
|
%
|
|
|
|
1.20
|
%
|
|
|
|
1.20
|
%
|
|
|
|
1.20
|
%
|
Ratio of net investment income to average net assets
|
|
|
|
0.62
|
%
|
|
|
|
1.03
|
%
|
|
|
|
1.15
|
%
|
|
|
|
0.82
|
%
b
|
|
|
|
1.35
|
%
|
Ratios assuming no expense reductions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of total expenses to average net assets
|
|
|
|
1.85
|
%
|
|
|
|
1.79
|
%
|
|
|
|
1.77
|
%
|
|
|
|
1.92
|
%
|
|
|
|
1.96
|
%
|
Portfolio turnover
rate
d
|
|
|
|
102
|
%
|
|
|
|
83
|
%
|
|
|
|
107
|
%
|
|
|
|
85
|
%
|
|
|
|
117
|
%
|
See footnotes below.
Footnotes:
a
|
|
Calculated based on the average shares outstanding methodology.
|
b
|
|
Reflects income recognized from special dividends which amounted to $0.02 per share and 0.10% of average daily net assets on the Asia Equity.
|
c
|
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions, a complete redemption of the investment at the net asset
value at the end of the period and no sales or redemption charges. Total returns would be reduced if a sales or redemption charge was taken into account. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
|
d
|
|
The Funds portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and
certain derivatives. If such transactions were included, the Funds portfolio turnover rate may be higher.
|
e
|
|
Total return reflects the impact of payments for regulatory settlements entitled to be received during the year and recorded as an increase to capital by the Fund.
Excluding such payments, the total return would have been:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
Class C
|
|
|
Institutional
|
|
For the Fiscal Year Ended
October 31, 2009
|
|
|
55.33
|
%
|
|
|
54.16
|
%
|
|
|
55.93
|
%
|
EXPERTS
The financial highlights and financial statements of the Acquired Fund for the past three fiscal years are incorporated by reference into
this Information Statement/Prospectus. The financial highlights and financial statements of the Acquired Fund have been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as set forth in their reports thereon
incorporated by reference into this Information Statement/Prospectus. Such financial statements and financial highlights are incorporated by reference herein in reliance upon such reports given on the authority of such firm as experts in accounting
and auditing.
28
OTHER INFORMATION
Interest of Certain Persons
Exhibit D
to this Information Statement/Prospectus sets forth the persons who owned beneficially more than 5% of each Fund as of February 28, 2014.
Legal Matters
Certain
legal matters concerning the issuance of shares of the Acquiring Fund will be passed upon by Dechert LLP, 1095 Avenue of the Americas, New York, NY 10036.
You can obtain more free information about each Fund from your Authorized Institution or
By calling: 1-800-526-7384
By writing to:
Goldman Sachs Funds
P.O. Box 06050
Chicago, IL 60606-6306
On the Internet: SEC EDGAR database http://www.sec.gov.
The Funds statement of additional information and shareholder reports are available free of charge by using the contact information above or visiting the Funds website at: www.gsamfunds.com.
Annual and semiannual reports to shareholders, and quarterly reports filed with the SEC, provide information about each
Funds investments. An annual report discusses market conditions and investment strategies that significantly affected a Funds performance during its last fiscal year.
Each Fund is subject to the informational requirements of the Securities Exchange Act of 1934, as amended and the 1940 Act and files
reports, proxy statements and other information with the SEC. These reports, proxy statements and other information filed by the Funds can be inspected and copied (for a duplication fee) at the public reference facilities of the SEC at
100 F Street, N.E., Washington, D.C. Copies of these materials can also be obtained by mail from the Public Reference Branch, Office of Consumer Affairs and Information Services, SEC, Washington, D.C. 20549, at prescribed rates.
In addition, copies of these documents may be viewed onscreen or downloaded from the SECs Internet site at http://www.sec.gov.
29
Exhibit A
AGREEMENT AND PLAN OF REORGANIZATION
GOLDMAN SACHS CHINA EQUITY FUND
GOLDMAN SACHS ASIA EQUITY FUND
This Agreement and Plan of Reorganization is made as of April [], 2014, by and between Goldman Sachs Trust, a
Delaware statutory trust (Goldman Sachs Trust), on behalf of Goldman Sachs China Equity Fund (the Acquired Fund) and Goldman Sachs Asia Equity Fund (the Acquiring Fund, and together with the Acquired Fund, the
Funds).
This agreement is intended to be and is adopted as a plan of reorganization and liquidation (the
Plan) within the meaning of Section 368(a)(1) of the United States Internal Revenue Code of 1986, as amended (the Code). The reorganization and liquidation will consist of the transfer of all of the assets of the
Acquired Fund to the Acquiring Fund in exchange solely for shares of beneficial interest of the Acquiring Fund (Acquiring Fund Shares) corresponding to the outstanding shares of beneficial interest of the Acquired Fund, the assumption by
the Acquiring Fund of all liabilities of the Acquired Fund, and the distribution of the Acquiring Fund Shares to the applicable shareholders of the Acquired Fund in complete liquidation of the Acquired Fund, as provided herein
(Reorganization), all upon the terms and conditions hereinafter set forth in this Plan.
WHEREAS, the Funds are
series of Goldman Sachs Trust, an open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act);
WHEREAS, the Board of Trustees of Goldman Sachs Trust has determined that the exchange of all of the assets of the Acquired Fund for Acquiring Fund Shares and the assumption of all liabilities of the
Acquired Fund by the Acquiring Fund is in the best interests of the Funds and that the interests of the existing shareholders of the Funds would not be diluted as a result of this transaction; and
NOW, THEREFORE, in consideration of the premises and of the covenants and agreements hereinafter set forth, the parties hereto covenant
and agree as follows:
1. Transfer of Assets of the Acquired Fund to the Acquiring Fund in Exchange for Acquiring Fund Shares, the
Assumption of all of the Acquired Funds Liabilities and the Liquidation of the Acquired Fund
1.1. Subject to the
requisite approvals and the other terms and conditions herein set forth and on the basis of the representations and warranties contained herein, the Acquired Fund agrees to transfer all of its assets, as set forth in paragraph 1.2, to the Acquiring
Fund, and the Acquiring Fund agrees in exchange therefor: (i) to deliver to the Acquired Fund the number of full and fractional Acquiring Fund Shares of the respective class set forth on Schedule A, determined by dividing the value of the
Acquired Funds net assets, computed in the manner and as of the time and date set forth in paragraph 2.1, by the net asset value of one Acquiring Fund Share of the corresponding class, computed in the manner and as of the time and date set
forth in paragraph 2.2; and (ii) to assume all liabilities of the Acquired Fund, as set forth in paragraph 1.3. Such transactions shall take place on the date of the closing provided for in paragraph 3.1 (Closing Date).
1.2. The assets of the Acquired Fund to be acquired by the Acquiring Fund shall consist of all assets and property, including, without
limitation, all cash, securities, commodities and futures interests and dividends or interests receivable that are owned by the Acquired Fund and any deferred or prepaid expenses shown as an asset on the books of the Acquired Fund on the Closing
Date (collectively, Assets).
1.3. The Acquired Fund will endeavor to discharge all of its liabilities and
obligations prior to the Closing Date. The Acquiring Fund shall also assume all of the liabilities of the Acquired Fund, whether accrued or contingent, known or unknown, existing at the Valuation Date as defined in paragraph 2.1 (collectively,
A-1
Liabilities). On or as soon as practicable prior to the Closing Date, the Acquired Fund will declare and pay to its shareholders of record one or more dividends and/or other
distributions so that it will have distributed all of its investment company taxable income (computed without regard to any deduction for dividends paid) and realized net capital gain, if any, for the current taxable year through the Closing Date.
1.4. Immediately after the transfer of assets provided for in paragraph 1.1, the Acquired Fund will distribute to its
respective shareholders of record, determined as of immediately after the close of business on the Closing Date (Acquired Fund Shareholders), on a pro rata basis, the Acquiring Fund Shares of the corresponding class received by the
Acquired Fund pursuant to paragraph 1.1 and Schedule A, and will completely liquidate. Such distribution and liquidation will be accomplished by the transfer of the Acquiring Fund Shares then credited to the account of the Acquired Fund on the books
of the Acquiring Fund to open accounts on the share records of the Acquiring Fund in the names of the Acquired Fund Shareholders. The aggregate net asset value of Acquiring Fund Shares to be so credited to the applicable Acquired Fund Shareholders,
shall be equal to the aggregate net asset value of the corresponding class of shares of beneficial interest of the Acquired Fund (Acquired Fund Shares) owned by Acquired Fund Shareholders on the Closing Date. All issued and outstanding
shares of the Acquired Fund will simultaneously be redeemed and canceled on the books of the Acquired Fund. The Acquiring Fund shall not issue certificates representing the Acquiring Fund Shares in connection with such exchange.
1.5. Ownership of Acquiring Fund Shares will be shown on the books of the Acquiring Funds Transfer Agent, as defined in paragraph
3.3. Shares of the Acquiring Fund will be issued in the manner described in the Acquiring Funds current prospectus.
1.6. Any reporting responsibility of the Acquired Fund, including, but not limited to, the responsibility for filing regulatory reports,
tax returns, or other documents with the U.S. Securities and Exchange Commission (SEC), any state securities commission, and any Federal, state or local tax authorities or any other relevant regulatory authority, is and shall remain the
responsibility of the Acquired Fund up to and including the Closing Date.
2. Valuation
2.1. The value of the Assets shall be the value of such Assets computed as of immediately after the close of business of the New York
Stock Exchange and after the declaration of any dividends on the Closing Date (such time and date being hereinafter called the Valuation Date), using the valuation procedures set forth in the then-current prospectus and statement of
additional information with respect to the Acquired Fund and valuation procedures established by the Board of Trustees of Goldman Sachs Trust.
2.2. The net asset value of an Acquiring Fund Share shall be the net asset value per share computed with respect to that class as of the Valuation Date, using the valuation procedures set forth in the
Acquiring Funds then-current prospectus and statement of additional information and valuation procedures established by the Board of Trustees of Goldman Sachs Trust.
2.3. The number of the Acquiring Fund Shares to be issued (including fractional shares, if any) in exchange for the Acquired Funds Assets shall be determined by dividing the value of the net assets
with respect to the Acquired Fund Shares, determined using the same valuation procedures referred to in paragraph 2.1, by the net asset value of an Acquiring Fund Share, determined in accordance with paragraph 2.2.
2.4. All computations of value shall be made by State Street Bank and Trust Company (State Street), in its capacity as
administrator for the Acquired Fund.
3. Closing and Closing Date
3.1. The Closing Date shall be on or about April 25, 2014 or such other date as the parties may agree. All acts taking place at the
closing of the transactions provided for in this Plan (Closing) shall be deemed to take
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place simultaneously as of immediately after the close of business on the Closing Date unless otherwise agreed to by the parties. The close of business on the Closing Date shall be as of 4:00
p.m. Eastern time. The Closing shall be held at the offices of Goldman Sachs Asset Management International (GSAMI) or at such other time and/or place as the parties may agree.
3.2. The Acquired Fund shall direct State Street, as custodian for the Acquired Fund (Acquired Fund Custodian), to deliver,
at the Closing, a certificate of an authorized officer stating that the Assets have been delivered in proper form to the Acquiring Fund. The Acquired Funds portfolio securities represented by a certificate or other written instrument shall be
presented by the Acquired Fund Custodian to those persons at JPMorganChase Bank, N.A., as custodian for the Acquiring Fund (Acquiring Fund Custodian), who have primary responsibility for the safekeeping of the assets of the Acquiring
Fund. Such presentation shall be made for examination no later than five business days preceding the Closing Date, and shall be transferred and delivered by the Acquired Fund as of the Closing Date for the account of the Acquiring Fund duly endorsed
in proper form for transfer in such condition as to constitute good delivery thereof. The Acquired Fund Custodian shall deliver to those persons at the Acquiring Fund Custodian who have primary responsibility for the safekeeping of the assets of the
Acquiring Fund as of the Closing Date by book entry, in accordance with customary practices of the Custodians and the requirements of Section 17(f) and the rules thereunder, the Acquired Funds Assets. The cash to be transferred by the
Acquired Fund shall be delivered by wire transfer of Federal funds on the Closing Date.
3.3. The Acquired Fund shall direct
Goldman, Sachs & Co., in its capacity as transfer agent for the Acquired Fund (Transfer Agent), to deliver at the Closing a certificate of an authorized officer stating that its records contain the names and addresses of the
Acquired Fund Shareholders and the number and percentage ownership of outstanding shares owned by each such shareholder immediately prior to the Closing. The Acquiring Fund shall issue and deliver to the Secretary of the Acquired Fund prior to the
Closing Date a confirmation evidencing that the appropriate number of Acquiring Fund Shares will be credited to the Acquired Fund on the Closing Date, or provide other evidence satisfactory to the Acquired Fund as of the Closing Date that such
Acquiring Fund Shares have been credited to the Acquired Funds accounts on the books of the Acquiring Fund. At the Closing each party shall deliver to the other such bills of sale, checks, assignments, share certificates, if any, receipts or
other documents as such other party or its counsel may reasonably request.
3.4. In the event that on the Valuation Date
(a) the New York Stock Exchange or another primary trading market for portfolio securities of the Acquiring Fund or the Acquired Fund (each, an Exchange) shall be closed to trading or trading thereupon shall be restricted, or
(b) trading or the reporting of trading on such Exchange or elsewhere shall be disrupted so that, in the judgment of each Board, accurate appraisal of the value of the net assets of the Acquired Fund or the Acquiring Fund is impracticable, the
Closing Date shall be postponed until the first business day after the day when trading shall have been fully resumed and reporting shall have been restored.
4. Representations and Warranties
4.1. Except as has been fully disclosed
to the Acquiring Fund in a written instrument executed by an officer, Goldman Sachs Trust, on behalf of the Acquired Fund, represents and warrants to the Acquiring Fund, as follows:
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(a)
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The Acquired Fund is a series of Goldman Sachs Trust, which is a statutory trust duly organized, validly existing, and in good standing under the laws of the State of
Delaware with power under its Declaration of Trust and By-Laws to own all of its properties and assets and to carry on its business as it is now being conducted;
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(b)
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Goldman Sachs Trust is a registered investment company classified as a management company of the open-end type, and its registration with the SEC as an investment
company under the 1940 Act, and the registration of the Acquired Fund Shares under the Securities Act of 1933, as amended (1933 Act) have not been revoked or rescinded and are in full force and effect;
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(c)
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No consent, approval, authorization, or order of any court or governmental authority is required for the consummation by the Acquired Fund of the transactions
contemplated herein, except such as have been obtained under the 1933 Act, the Securities Exchange Act of 1934, as amended (1934 Act), and the 1940 Act, and such as may be required by state securities laws;
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(d)
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The current prospectus and statement of additional information of the Acquired Fund and each prospectus and statement of additional information of the Acquired Fund
used at all times prior to the date of this Plan conforms or conformed at the time of its use in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the SEC thereunder and does not
or did not at the time of its use include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made,
not materially misleading;
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(e)
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On the Closing Date, Goldman Sachs Trust, on behalf of the Acquired Fund, will have good and marketable title to the Assets and full right, power, and authority to
sell, assign, transfer and deliver such Assets hereunder free of any liens or other encumbrances, and upon delivery and payment for such Assets, Goldman Sachs Trust, on behalf of the Acquiring Fund, will acquire good and marketable title thereto,
subject to no restrictions on the full transfer thereof, including such restrictions as might arise under the 1933 Act, other than as disclosed to the Acquiring Fund;
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(f)
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The Acquired Fund is not engaged currently, and the execution, delivery and performance of this Plan will not result, in (i) a material violation of Goldman Sachs
Trusts Declaration of Trust or By-Laws, or of any agreement, indenture, instrument, contract, lease or other undertaking to which Goldman Sachs Trust, on behalf of the Acquired Fund, is a party or by which it is bound, or (ii) the
acceleration of any obligation, or the imposition of any penalty, under any agreement, indenture, instrument, contract, lease, judgment or decree to which Goldman Sachs Trust, on behalf of the Acquired Fund, is a party or by which it is bound;
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(g)
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All material contracts or other commitments of the Acquired Fund (other than this Plan and certain investment contracts, including options, futures, and forward
contracts) will terminate without liability to the Acquired Fund on or prior to the Closing Date;
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(h)
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Except as otherwise disclosed in writing to and accepted by Goldman Sachs Trust, on behalf of the Acquiring Fund, no litigation or administrative proceeding or
investigation of or before any court or governmental body is presently pending or, to its knowledge, threatened against Goldman Sachs Trust, on behalf of the Acquired Fund, or any of its properties or assets that, if adversely determined, would
materially and adversely affect its financial condition or the conduct of its business. Goldman Sachs Trust, on behalf of the Acquired Fund, knows of no facts which might form the basis for the institution of such proceedings and is not a party to
or subject to the provisions of any order, decree or judgment of any court or governmental body which materially and adversely affects its business or its ability to consummate the transactions herein contemplated;
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(i)
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The Statement of Assets and Liabilities, Statement of Operations, Statements of Changes in Net Assets, and Schedule of Investments of the Acquired Fund dated
October 31, 2013 have been audited by PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm, and are in accordance with accounting principles generally accepted in the United States of America (GAAP) consistently
applied, and such statements (copies of which have been furnished to the Acquiring Fund) present fairly, in all material respects, the financial condition of the Acquired Fund as of such date in accordance with GAAP, and there are no known
contingent liabilities of the Acquired Fund required to be reflected on a balance sheet (including the notes thereto) in accordance with GAAP as of such date not disclosed therein;
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(j)
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Since October 31, 2013, there has not been any material adverse change in the Acquired Funds financial condition, assets, liabilities or
business, other than changes occurring in the ordinary
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course of business, or any incurrence by the Acquired Fund of indebtedness maturing more than one year from the date such indebtedness was incurred, except as otherwise disclosed to and accepted
by the Acquiring Fund. For the purposes of this subparagraph (j), a decline in net asset value per share of Acquired Fund Shares due to declines in market values of securities held by the Acquired Fund, the discharge of the Acquired Funds
liabilities, or the redemption of the Acquired Funds shares by shareholders of the Acquired Fund shall not constitute a material adverse change;
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(k)
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On the Closing Date, all Federal and other tax returns, dividend reporting forms, and other tax-related reports of the Acquired Fund required by law to have been filed
by such date (including any extensions) shall have been filed and are or will be correct in all material respects, and all Federal and other taxes shown as due or required to be shown as due on said returns and reports shall have been paid or
provision shall have been made for the payment thereof, and to the best of the Acquired Funds knowledge, no such return is currently under audit and no assessment has been asserted with respect to such returns;
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(l)
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For each taxable year of its operation (including the taxable year ending on the Closing Date), the Acquired Fund has met (or will meet) the requirements of Subchapter
M of the Code for qualification as a regulated investment company, has been (or will be) eligible to and has computed (or will compute) its Federal income tax under Section 852 of the Code, and will have distributed all of its investment
company taxable income and net capital gain (as defined in the Code) that has accrued through the Closing Date, and before the Closing Date will have declared dividends sufficient to distribute all of its investment company taxable income and net
capital gain for the period ending on the Closing Date;
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(m)
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All issued and outstanding shares of the Acquired Fund are, and on the Closing Date will be, duly and validly issued and outstanding and, subject to the qualifications
set forth in the Goldman Sachs Trusts Declaration of Trust, fully paid and non-assessable by Goldman Sachs Trust and have been offered and sold in every state and the District of Columbia in compliance in all material respects with applicable
registration requirements of the 1933 Act and state securities laws. All of the issued and outstanding shares of the Acquired Fund will, at the time of Closing, be held by the persons and in the amounts set forth in the records of the Transfer
Agent, on behalf of the Acquired Fund, as provided in paragraph 3.3. The Acquired Fund does not have outstanding any options, warrants or other rights to subscribe for or purchase any of the shares of the Acquired Fund, nor is there outstanding any
security convertible into any of the Acquired Funds shares;
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(n)
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The execution, delivery and performance of this Plan will have been duly authorized prior to the Closing Date by all necessary action, if any, on the part of the Board
of Trustees of Goldman Sachs Trust, on behalf of the Acquired Fund, and this Plan will constitute a valid and binding obligation of the Acquired Fund, enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization, moratorium and other laws relating to or affecting creditors rights and to general equity principles;
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(o)
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The information to be furnished by the Acquired Fund for use in registration statements, information statements and other documents filed or to be filed with any
Federal, state or local regulatory authority (including the Financial Industry Regulatory Authority), which may be necessary in connection with the transactions contemplated hereby, shall be accurate and complete in all material respects and shall
comply in all material respects with Federal securities and other laws and regulations thereunder applicable thereto; and
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(p)
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The combined information statement and prospectus (Information Statement) to be included in the Registration Statement referred to in
paragraph 5.5, insofar as it relates to the Acquired Fund, will, on the effective date of the Registration Statement on Form N-14 (Registration Statement) and on the Closing Date (i) not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which such statements were made, not materially misleading, provided,
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A-5
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however, that the representations and warranties of this subparagraph (p) shall not apply to statements in or omissions from the Information Statement and the Registration Statement made in
reliance upon and in conformity with information that was furnished by the Acquiring Fund for use therein, and (ii) comply in all material respects with the provisions of the 1933 Act, the 1934 Act, and the 1940 Act and the rules and
regulations thereunder.
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4.2. Except as has been fully disclosed to the Acquired Fund in a written instrument
executed by an officer of Goldman Sachs Trust, Goldman Sachs Trust, on behalf of the Acquiring Fund, represents and warrants to the Acquired Fund, as follows:
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(a)
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The Acquiring Fund is a series of Goldman Sachs Trust, which is a statutory trust duly organized, validly existing, and in good standing under the laws of the State of
Delaware with power under its Declaration of Trust and By-Laws to own all of its properties and assets and to carry on its business as it is now being conducted;
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(b)
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Goldman Sachs Trust is a registered investment company classified as a management company of the open-end type, and its registration with the SEC as an investment
company under the 1940 Act, and the registration of the Acquiring Fund Shares under the 1933 Act have not been revoked or rescinded and are in full force and effect;
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(c)
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No consent, approval, authorization, or order of any court or governmental authority is required for the consummation by the Acquiring Fund of the transactions
contemplated herein, except such as have been obtained under the 1933 Act, the 1934 Act and the 1940 Act and such as may be required by state securities laws;
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(d)
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The current prospectus and statement of additional information of the Acquiring Fund and each prospectus and statement of additional information of the Acquiring Fund
used at all times prior to the date of this Plan conforms or conformed at the time of its use in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the SEC thereunder and does not
or did not at the time of its use include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made,
not materially misleading;
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(e)
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On the Closing Date, Goldman Sachs Trust, on behalf of the Acquiring Fund, will have good and marketable title to the Acquiring Funds assets, free of any liens or
other encumbrances, except those liens or encumbrances as to which the Acquired Fund has received notice and necessary documentation at or prior to the Closing;
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(f)
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The Acquiring Fund is not engaged currently, and the execution, delivery and performance of this Plan will not result, in (i) a material violation of Goldman Sachs
Trusts Declaration of Trust or By-Laws or of any agreement, indenture, instrument, contract, lease or other undertaking to which Goldman Sachs Trust, on behalf of the Acquiring Fund, is a party or by which it is bound, or (ii) the
acceleration of any obligation, or the imposition of any penalty, under any agreement, indenture, instrument, contract, lease, judgment or decree to which Goldman Sachs Trust, on behalf of the Acquiring Fund, is a party or by which it is bound;
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(g)
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Except as otherwise disclosed in writing to and accepted by the Acquired Fund, no litigation or administrative proceeding or investigation of or before any court or
governmental body is presently pending or, to the Acquiring Funds knowledge, threatened against Goldman Sachs Trust, on behalf of the Acquiring Fund, or any of the Acquiring Funds properties or assets that, if adversely determined, would
materially and adversely affect the Acquiring Funds financial condition or the conduct of its business. Goldman Sachs Trust, on behalf of the Acquiring Fund, knows of no facts which might form the basis for the institution of such proceedings
and is not a party to or subject to the provisions of any order, decree or judgment of any court or governmental body which materially and adversely affects the Acquiring Funds business or its ability to consummate the transactions herein
contemplated;
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(h)
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All issued and outstanding Acquiring Fund Shares are, and on the Closing Date will be, duly and validly issued and outstanding and, subject to the qualifications set
forth in the Goldman Sachs Trusts Declaration of Trust, fully paid and non-assessable by Goldman Sachs Trust and will have been offered in every state and the District of Columbia in compliance in all material respects with applicable
registration requirements of the 1933 Act and state securities laws. The Acquiring Fund does not have outstanding any options, warrants or other rights to subscribe for or purchase any Acquiring Fund Shares, nor is there outstanding any security
convertible into any Acquiring Fund Shares;
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(i)
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The execution, delivery and performance of this Plan will have been duly authorized prior to the Closing Date by all necessary action, if any, on the part of the Board
of Trustees of Goldman Sachs Trust, on behalf of the Acquiring Fund, and this Plan will constitute a valid and binding obligation of the Acquiring Fund, enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization, moratorium and other laws relating to or affecting creditors rights and to general equity principles;
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(j)
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The Acquiring Fund Shares to be issued and delivered to the Acquired Fund, for the account of the Acquired Fund Shareholders, pursuant to the terms of this Plan, will
on the Closing Date have been duly authorized and, when so issued and delivered, will be duly and validly issued Acquiring Fund Shares, and, subject to the qualifications set forth in the Goldman Sachs Trusts Declaration of Trust, will be
fully paid and non-assessable by the Acquiring Fund;
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(k)
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On the Closing Date, all Federal and other tax returns, dividend reporting forms, and other tax-related reports of the Acquiring Fund required by law to have been filed
by such date (including any extensions) shall have been filed and are or will be correct in all material respects, and all Federal and other taxes shown as due or required to be shown as due on said returns and reports shall have been paid or
provision shall have been made for the payment thereof, and to the best of the Acquiring Funds knowledge no such return is currently under audit and no assessment has been asserted with respect to such returns;
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(l)
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For each taxable year of its operation (including the taxable year that includes the Closing Date), the Acquiring Fund has met (or will meet) the requirements of
Subchapter M of the Code for qualification as a regulated investment company, has been eligible to (or will be eligible to) and has computed (or will compute) its federal income tax under Section 852 of the Code, and has distributed all of its
investment company taxable income and net capital gain (as defined in the Code) for periods ending prior to the Closing Date.
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(m)
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The information to be furnished by the Acquiring Fund for use in the registration statements, information statements and other documents that may be necessary in
connection with the transactions contemplated hereby shall be accurate and complete in all material respects and shall comply in all material respects with Federal securities and other laws and regulations applicable thereto; and
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(n)
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The Information Statement to be included in the Registration Statement (and any amendment or supplement thereto), insofar as it relates to the Acquiring Fund and the
Acquiring Fund Shares, will, from the effective date of the Registration Statement through the Closing Date (i) not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which such statements were made, not materially misleading, provided, however, that the representations and warranties of this subparagraph (n) shall not apply to statements in or
omissions from the Information Statement and the Registration Statement made in reliance upon and in conformity with information that was furnished by the Acquired Fund for use therein, and (ii) comply in all material respects with the
provisions of the 1933 Act, the 1934 Act, and the 1940 Act and the rules and regulations thereunder.
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5. Covenants of the Acquiring Fund and the Acquired Fund
5.1. The Acquiring Fund and the Acquired Fund each will operate its business in the ordinary course between the date hereof and the
Closing Date, it being understood that such ordinary course of business will include the declaration and payment of customary dividends and distributions, and any other distribution that may be advisable.
5.2. The Acquired Fund covenants that the Acquiring Fund Shares to be issued hereunder are not being acquired for the purpose of making
any distribution thereof, other than in accordance with the terms of this Plan.
5.3. The Acquired Fund will assist the
Acquiring Fund in obtaining such information as the Acquiring Fund reasonably requests concerning the beneficial ownership of the Acquired Funds shares.
5.4. Subject to the provisions of this Plan, the Acquiring Fund and the Acquired Fund will each take, or cause to be taken, all action, and do or cause to be done all things, reasonably necessary, proper
or advisable to consummate and make effective the transactions contemplated by this Plan.
5.5. The Acquired Fund has provided
the Acquiring Fund with information reasonably necessary for the preparation of the Information Statement (referred to in subparagraph 4.1(p)) to be included in a Registration Statement on Form N-14, in compliance with the 1933 Act, the 1934 Act and
the 1940 Act.
5.6. As soon as is reasonably practicable after the Closing, the Acquired Fund will make a liquidating
distribution to its respective shareholders consisting of the Acquiring Fund Shares received at the Closing.
5.7. The
Acquiring Fund and the Acquired Fund shall each use their reasonable best efforts to fulfill or obtain the fulfillment of the conditions precedent to effect the transactions contemplated by this Plan as promptly as practicable.
5.8. Goldman Sachs Trust, on behalf of the Acquired Fund, covenants that it will, from time to time, as and when reasonably requested by
the Acquiring Fund, execute and deliver or cause to be executed and delivered all such assignments and other instruments, and will take or cause to be taken such further action as Goldman Sachs Trust, on behalf of the Acquiring Fund, may reasonably
deem necessary or desirable in order to vest in and confirm (a) Goldman Sachs Trusts, on behalf of the Acquired Fund, title to and possession of the Acquiring Fund Shares to be delivered hereunder, and (b) Goldman Sachs Trusts,
on behalf of the Acquiring Fund, title to and possession of all the Assets and otherwise to carry out the intent and purpose of this Plan.
5.9. The Acquiring Fund will use all reasonable efforts to obtain the approvals and authorizations required by the 1933 Act, the 1940 Act and such of the state blue sky or securities laws as may be
necessary in order to continue its operations after the Closing Date.
6. Conditions Precedent to Obligations of the Acquired Fund
The obligations of Goldman Sachs Trust, on behalf of the Acquired Fund, to consummate the transactions provided for herein
shall be subject, at Goldman Sachs Trusts election, to the performance by Goldman Sachs Trust, on behalf of the Acquiring Fund, of all the obligations to be performed by it hereunder on or before the Closing Date, and, in addition thereto, the
following further conditions:
6.1. All representations and warranties of Goldman Sachs Trust, on behalf of the Acquiring Fund,
contained in this Plan shall be true and correct in all material respects as of the date hereof and, except as they may be affected by the transactions contemplated by this Plan, as of the Closing Date, with the same force and effect as if made on
and as of the Closing Date;
6.2. Goldman Sachs Trust, on behalf of the Acquiring Fund, shall have delivered to the Acquired
Fund a certificate executed in the name of the Acquiring Fund by its President or Vice President and its Treasurer or Assistant Treasurer, in a form reasonably satisfactory to the Acquired Fund, and dated as of the Closing Date, to the effect that
the representations and warranties of Goldman Sachs Trust, on behalf of the Acquiring Fund, made in this Plan are true and correct at and as of the Closing Date, except as they may be affected by the transactions contemplated by this Plan, and as to
such other matters as Goldman Sachs Trust shall reasonably request;
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6.3. Goldman Sachs Trust, on behalf of the Acquiring Fund, shall have performed all of the
covenants and complied with all of the provisions required by this Plan to be performed or complied with by Goldman Sachs Trust, on behalf of the Acquiring Fund, on or before the Closing Date; and
6.4. The Acquired Fund and the Acquiring Fund shall have agreed on the number of full and fractional Acquiring Fund Shares to be issued in
connection with the Reorganization after such number has been calculated in accordance with paragraph 1.1.
7. Conditions Precedent to
Obligations of the Acquiring Fund
The obligations of Goldman Sachs Trust, on behalf of the Acquiring Fund, to complete the
transactions provided for herein shall be subject, at Goldman Sachs Trusts election, to the performance by Goldman Sachs Trust, on behalf of the Acquired Fund, of all of the obligations to be performed by it hereunder on or before the Closing
Date and, in addition thereto, the following conditions:
7.1. All representations and warranties of Goldman Sachs Trust, on
behalf of the Acquired Fund, contained in this Plan shall be true and correct in all material respects as of the date hereof and, except as they may be affected by the transactions contemplated by this Plan, as of the Closing Date, with the same
force and effect as if made on and as of the Closing Date;
7.2. Goldman Sachs Trust, on behalf of the Acquired Fund, shall
have delivered to the Acquiring Fund a statement of the Acquired Funds Assets and Liabilities, as of the Closing Date, certified by the Treasurer of the Acquired Fund;
7.3. Goldman Sachs Trust, on behalf of the Acquired Fund, shall have delivered to the Acquiring Fund a certificate executed in the name of the Acquired Fund by its President or Vice President and its
Treasurer or Assistant Treasurer, in a form reasonably satisfactory to the Acquiring Fund and dated as of the Closing Date, to the effect that the representations and warranties of Goldman Sachs Trust, on behalf of the Acquired Fund, made in this
Plan are true and correct at and as of the Closing Date, except as they may be affected by the transactions contemplated by this Plan, and as to such other matters as Goldman Sachs Trust shall reasonably request;
7.4. Goldman Sachs Trust, on behalf of the Acquired Fund, shall have performed all of the covenants and complied with all of the
provisions required by this Plan to be performed or complied with by Goldman Sachs Trust, on behalf of the Acquired Fund, on or before the Closing Date;
7.5. The Acquired Fund shall have declared and paid a distribution or distributions prior to the Closing that, together with all previous distributions, shall have the effect of distributing to its
shareholders (i) all of its investment company taxable income and all of its net realized capital gains, if any, for the period from the close of its last fiscal year to 4:00 p.m. Eastern time on the Closing; and (ii) any undistributed
investment company taxable income and net realized capital gains from any period to the extent not otherwise already distributed; and
7.6. The Acquired Fund and the Acquiring Fund shall have agreed on the number of full and fractional Acquiring Fund Shares to be issued in connection with the Reorganization after such number has been
calculated in accordance with paragraph 1.1.
8. Further Conditions Precedent to Obligations of the Acquiring Fund and the Acquired Fund
If any of the conditions set forth below have not been satisfied on or before the Closing Date with respect to Goldman
Sachs Trust, on behalf of the Acquired Fund, or Goldman Sachs Trust, on behalf of the Acquiring Fund, the other party to this Plan (or in the case of Paragraph 8.1, either party to this Plan) shall, at its option, not be required to consummate the
transactions contemplated by this Plan:
8.1. On the Closing Date no action, suit or other proceeding shall be pending or, to
either partys knowledge, threatened before any court or governmental agency in which it is sought to restrain or prohibit, or obtain damages or other relief in connection with, this Plan or the transactions contemplated herein;
A-9
8.2. All consents of other parties and all other consents, orders and permits of Federal,
state and local regulatory authorities deemed necessary by each party to permit consummation, in all material respects, of the transactions contemplated hereby shall have been obtained, except where failure to obtain any such consent, order or
permit would not involve a risk of a material adverse effect on the assets or properties of the Acquiring Fund or the Acquired Fund, provided that either party hereto may for itself waive any of such conditions;
8.3. The Registration Statement (and the Information Statement included therein) shall have become effective under the 1933 Act and no
stop orders suspending the effectiveness thereof shall have been issued and, to the best knowledge of the parties hereto, no investigation or proceeding for that purpose shall have been instituted or be pending, threatened or contemplated under the
1933 Act; and
8.4. The parties shall have received the opinion of counsel to the parties substantially to the effect that
based upon certain facts, assumptions, and representations, the transactions contemplated by this Plan shall constitute a tax-free reorganization for Federal income tax purposes. The delivery of such opinion is conditioned upon receipt by counsel to
the parties of representations it shall request of the parties. Notwithstanding anything herein to the contrary, the parties may not waive the condition set forth in this paragraph 8.4.
9. Indemnification
9.1. Goldman Sachs Trust, out of the Acquiring
Funds assets and property, agrees to indemnify and hold harmless the Acquired Fund from and against any and all losses, claims, damages, liabilities or expenses (including, without limitation, the payment of reasonable legal fees and
reasonable costs of investigation) to which the Acquired Fund may become subject, insofar as such loss, claim, damage, liability or expense (or actions with respect thereto) arises out of or is based on any breach by the Acquiring Fund of any of its
representations, warranties, covenants or agreements set forth in this Plan.
9.2. Goldman Sachs Trust, out of the Acquired
Funds assets and property, agrees to indemnify and hold harmless the Acquiring Fund from and against any and all losses, claims, damages, liabilities or expenses (including, without limitation, the payment of reasonable legal fees and
reasonable costs of investigation) to which the Acquiring Fund may become subject, insofar as such loss, claim, damage, liability or expense (or actions with respect thereto) arises out of or is based on any breach by the Acquired Fund of any of its
representations, warranties, covenants or agreements set forth in this Plan.
10. Brokerage Fees and Expenses
10.1. The Acquiring Fund and the Acquired Fund represent and warrant to each other that there are no brokers or finders entitled to
receive any payments in connection with the transactions provided for herein, other than any brokerage fees and expenses incurred in connection with the Reorganization.
10.2. The expenses relating to the proposed Reorganization will be borne by GSAMI. The costs of the Reorganization shall include, but not be limited to, costs associated with obtaining any necessary order
of exemption from the 1940 Act, if any, preparation, printing and distributing the Registration Statement and Information Statement, legal fees, accounting fees, and securities registration fees, but will not include brokerage costs or other costs
associated with portfolio adjustments. Notwithstanding any of the foregoing, expenses will in any event be paid by the party directly incurring such expenses if and to the extent that the payment by another person of such expenses would result in
the disqualification of such party as a regulated investment company within the meaning of Section 851 of the Code.
11.
Entire Agreement; Survival of Warranties
11.1. Each party to this agreement agrees that it has not made any
representation, warranty or covenant, not set forth herein, and that this Plan constitutes the entire agreement between the parties.
11.2. The representations, warranties and covenants contained in this Plan or in any document delivered pursuant hereto or in connection herewith shall survive the consummation of the transactions
contemplated
A-10
hereunder. The covenants to be performed after the Closing and the obligations of the Acquired Fund and Acquiring Fund in Sections 9.1 and 9.2 shall survive the Closing.
12. Termination
This
Plan may be terminated and the transactions contemplated hereby may be abandoned by resolution of the Board of Trustees of Goldman Sachs Trust at any time prior to the Closing Date, if circumstances should develop that, in the opinion of the Boards,
make proceeding with the Plan inadvisable.
13. Amendments
This Plan may be amended, modified or supplemented in such manner as may be deemed necessary or advisable by the authorized officers of Goldman Sachs Trust, on behalf of the Funds.
14. Notices
Any notice, report, statement or demand required or permitted by any provisions of this Plan shall be in writing and shall be given by facsimile, electronic delivery (i.e., e-mail), personal service or
prepaid or certified mail addressed to the Funds, 200 West Street, New York, New York 10282, Attn: Caroline Kraus, Esq., Secretary, in each case with a copy to Dechert LLP, One International Place, 40
th
Floor, 100 Oliver Street, Boston, Massachusetts 02110-2605, Attn:
Geoffrey R.T. Kenyon, Esq.
15. Headings; Governing Law; Assignment; Limitation of Liability
15.1. The Article and paragraph headings contained in this Plan are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Plan.
15.2. This Plan shall be governed by and construed in accordance with the laws of the
State of New York without regard to its principles of conflicts of laws.
15.3. This Plan shall bind and inure to the benefit
of the parties hereto and their respective successors and assigns, but no assignment or transfer hereof or of any rights or obligations hereunder shall be made by any party without the written consent of the other party. Nothing herein expressed or
implied is intended or shall be construed to confer upon or give any person, firm or corporation, other than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this Plan. Except as expressly
provided otherwise in this Plan, the parties hereto will bear the expenses relating to the Reorganization as set forth in Section 10.2 as mutually agreed upon.
A-11
IN WITNESS WHEREOF, each of the parties hereto has caused this Plan to be executed as of the
date above first written.
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GOLDMAN SACHS TRUST
On behalf
of the Acquiring Fund:
Goldman Sachs Asia Equity Fund
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GOLDMAN SACHS TRUST
On behalf
of the Acquired Fund:
Goldman Sachs China Equity Fund
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By:
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By:
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Name:
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Name:
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Title:
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Title:
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Goldman Sachs Asset Management International agrees to the provisions set forth in Sections 10.2 and 15.3 of this Plan.
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GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL
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By:
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Name:
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Title:
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A-12
Schedule A
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Acquired Fund
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Acquiring Fund
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Class A
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g
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Class A
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Class B*
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Class C
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g
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Class C
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Institutional
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Institutional
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Class IR
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Class IR
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* The Acquired Fund does not offer Class B Shares.
A-13
Exhibit B
GSAMIS GLOBAL EMERGING MARKETS EQUITY INVESTMENT PHILOSOPHY AND ADDITIONAL INFORMATION ON PORTFOLIO RISKS, SECURITIES AND
TECHNIQUES
Investment Philosophy
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Belief
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How the Investment Adviser Acts on This
Belief
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Excess returns can be generated by conducting thorough fundamental research
and individual stock selection
A team-based approach enriches debate and enhances the quality of investment
decisions
Focused and differentiated portfolios provide the greatest potential to generate excess
returns
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Seeks to generate excess returns through an intensive research culture and a
strong commitment to on-the-ground research resources around the world.
Conducts proprietary stock level research in a team-orientated regional structure with frequent, open communication and frontline decision-making.
Builds portfolios that are
reflective of the teams best investment ideas so that the majority of excess returns are driven by stock selection.
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GSAMIs Global Emerging Markets Equity teams investment philosophy is grounded in the belief
that we can achieve a competitive edge through selecting stocks with local expertise while being opportunistic investors. We seek to discover a broad range of investment ideas while being flexible, nimble, contrarian and avoiding complacency. We
believe a companys prospective ability to generate high returns on invested capital will strongly influence investment success. In our view, using a strong valuation discipline to purchase well-positioned, cash-generating businesses run by
shareholder-oriented management teams is the best formula for long-term portfolio performance.
Additional Information on Portfolio Risks,
Securities and Techniques
A. General Portfolio Risks
The Funds will be subject to the risks associated with equity investments. Equity investments may include common stocks, preferred stocks, interests in REITs, convertible debt obligations,
convertible preferred stocks, equity interests in trusts, partnerships, joint ventures, limited liability companies and similar enterprises, other investment companies (including ETFs), warrants, stock purchase rights, Depository Receipts and
synthetic and derivative instruments (such as participation notes, swaps, options and futures contracts) that have economic characteristics similar to equity securities. In general, the values of equity investments fluctuate in response to the
activities of individual companies and in response to general market and economic conditions. Accordingly, the values of the equity investments that a Fund holds may decline over short or extended periods. The stock markets tend to be cyclical, with
periods when stock prices generally rise and periods when prices generally decline. This volatility means that the value of your investment in a Fund may increase or decrease. In recent years, certain stock markets have experienced substantial price
volatility. To the extent a Funds net assets decrease or increase in the future due to price volatility or share redemption or purchase activity, the Funds expense ratio may correspondingly increase or decrease from the expense ratio
disclosed in this Prospectus.
To the extent a Fund invests in pooled investment vehicles (including investment companies and ETFs),
partnerships and REITs, the Fund will be affected by the investment policies, practices and performance of such entities in direct proportion to the amount of assets the Fund invests therein.
B-1
To the extent that a Fund invests in fixed income securities, that Fund will also be subject to the risks
associated with its fixed income securities. These risks include interest rate risk, credit/default risk and call/extension risk. In general, interest rate risk involves the risk that when interest rates decline, the market value of fixed income
securities tends to increase (although many mortgage-related securities will have less potential than other debt securities for capital appreciation during periods of declining rates). Conversely, when interest rates increase, the market value of
fixed income securities tends to decline. Credit/default risk involves the risk that an issuer or guarantor could default on its obligations, and a Fund will not recover its investment. Call risk and extension risk are normally present in
mortgage-backed securities and asset-backed securities. For example, homeowners have the option to prepay their mortgages. Therefore, the duration of a security backed by home mortgages can either shorten (call risk) or lengthen (extension risk). In
general, if interest rates on new mortgage loans fall sufficiently below the interest rates on existing outstanding mortgage loans, the rate of prepayment would be expected to increase. Conversely, if mortgage loan interest rates rise above the
interest rates on existing outstanding mortgage loans, the rate of prepayment would be expected to decrease. In either case, a change in the prepayment rate can result in losses to investors. The same would be true of asset-backed securities such as
securities backed by car loans.
The Funds may invest in non-investment grade fixed income securities (commonly known as junk
bonds), which are rated below investment grade (or determined to be of comparable credit quality, if not rated) at the time of purchase and are therefore considered speculative. Because non-investment grade fixed income securities are issued
by issuers with low credit ratings, they pose a greater risk of default than investment grade securities.
The Investment Adviser will not
consider the portfolio turnover rate a limiting factor in making investment decisions for a Fund. A high rate of portfolio turnover (100% or more) involves correspondingly greater expenses which must be borne by a Fund and its shareholders, and is
also likely to result in higher short-term capital gains taxable to certain shareholders. The portfolio turnover rate is calculated by dividing the lesser of the dollar amount of sales or purchases of portfolio securities by the average monthly
value of a Funds portfolio securities, excluding securities having a maturity at the date of purchase of one year or less.
The
following sections provide further information on certain types of securities and investment techniques that may be used by the Funds, including their associated risks. Additional information is provided in the SAI, which is available upon request.
Among other things, the SAI describes certain fundamental investment restrictions that cannot be changed without shareholder approval. You should note, however, that all investment objectives and all investment policies not specifically designated
as fundamental are non-fundamental, and may be changed without shareholder approval. If there is a change in a Funds investment objective, you should consider whether that Fund remains an appropriate investment in light of your then current
financial position and needs.
B. Other Portfolio Risks
Risks of Investing in Mid-Capitalization and Small-Capitalization Companies.
Each Fund may, to the extent consistent with its investment policies, invest in mid- and small-capitalization
companies. Investments in mid- and small-capitalization companies involve greater risk and portfolio price volatility than investments in larger capitalization stocks. Among the reasons for the greater price volatility of these investments are the
less certain growth prospects of smaller firms and the lower degree of liquidity in the markets for such securities. Mid- and small-capitalization companies may be thinly traded and may have to be sold at a discount from current market prices or in
small lots over an extended period of time. In addition, these securities are subject to the risk that during certain periods the liquidity of particular issuers or industries, or all securities in particular investment categories, will shrink or
disappear suddenly and without warning as a result of adverse economic or market conditions, or adverse investor perceptions whether or not accurate. Because of the lack of sufficient market liquidity, a Fund may incur losses because it will be
required to effect sales at a disadvantageous time and only then at a substantial drop in price. Mid- and small-capitalization companies include unseasoned issuers that do not have an established financial history; often have limited
product lines, markets or financial resources; may depend on or use a few key personnel for management; and may be susceptible to losses and risks of bankruptcy.
B-2
Mid- and small-capitalization companies may be operating at a loss or have significant variations in operating results; may be engaged in a rapidly changing business with products subject to a
substantial risk of obsolescence; may require substantial additional capital to support their operations, to finance expansion or to maintain their competitive position; and may have substantial borrowings or may otherwise have a weak financial
condition. In addition, these companies may face intense competition, including competition from companies with greater financial resources, more extensive development, manufacturing, marketing, and other capabilities, and a larger number of
qualified managerial and technical personnel. Transaction costs for these investments are often higher than those of larger capitalization companies. Investments in mid- and small-capitalization companies may be more difficult to price precisely
than other types of securities because of their characteristics and lower trading volumes.
Risks of Foreign Investments.
The
Funds will make foreign investments. Foreign investments involve special risks that are not typically associated with U.S. dollar denominated or quoted securities of U.S. issuers. Foreign investments may be affected by changes in currency rates,
changes in foreign or U.S. laws or restrictions applicable to such investments and changes in exchange control regulations (
e.g.
, currency blockage). A decline in the exchange rate of the currency (i.e., weakening of the currency against the
U.S. dollar) in which a portfolio security is quoted or denominated relative to the U.S. dollar would reduce the value of the portfolio security. In addition, if the currency in which a Fund receives dividends, interest or other payments declines in
value against the U.S. dollar before such income is distributed as dividends to shareholders or converted to U.S. dollars, the Fund may have to sell portfolio securities to obtain sufficient cash to pay such dividends.
Brokerage commissions, custodial services and other costs relating to investment in international securities markets generally are more expensive than in
the United States. In addition, clearance and settlement procedures may be different in foreign countries and, in certain markets, such procedures have been unable to keep pace with the volume of securities transactions, thus making it difficult to
conduct such transactions.
Foreign issuers are not generally subject to uniform accounting, auditing and financial reporting standards
comparable to those applicable to U.S. issuers. There may be less publicly available information about a foreign issuer than about a U.S. issuer. In addition, there is generally less government regulation of foreign markets, companies and securities
dealers than in the United States, and the legal remedies for investors may be more limited than the remedies available in the United States. Foreign securities markets may have substantially less volume than U.S. securities markets and securities
of many foreign issuers are less liquid and more volatile than securities of comparable domestic issuers. Furthermore, with respect to certain foreign countries, there is a possibility of nationalization, expropriation or confiscatory taxation,
imposition of withholding or other taxes on dividend or interest payments (or, in some cases, capital gains distributions), limitations on the removal of funds or other assets from such countries, and risks of political or social instability or
diplomatic developments which could adversely affect investments in those countries.
Concentration of a Funds assets in one or a few
countries and currencies will subject a Fund to greater risks than if a Funds assets were not geographically concentrated. Investments in foreign securities may take the form of sponsored and unsponsored ADRs, GDRs, EDRs, TDRs or other similar
instruments representing securities of foreign issuers. ADRs, GDRs, EDRs and TDRs represent the right to receive securities of foreign issuers deposited in a bank or other depository. ADRs and certain GDRs are traded in the United States. GDRs may
be traded in either the United States or in foreign markets. EDRs and TDRs are traded primarily outside the United States. Prices of ADRs are quoted in U.S. dollars. EDRs, GDRs and TDRs are not necessarily quoted in the same currency as the
underlying security.
Risks of Sovereign Debt.
Investment in sovereign debt obligations by a Fund involves risks not present in
debt obligations of corporate issuers. The issuer of the debt or the governmental authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and a
Fund may have limited recourse to compel payment in the event of a default. Periods of
B-3
economic uncertainty may result in the volatility of market prices of sovereign debt, and in turn a Funds NAV, to a greater extent than the volatility inherent in debt obligations of U.S.
issuers.
A sovereign debtors willingness or ability to repay principal and pay interest in a timely manner may be affected by, among
other factors, its cash flow situation, the extent of its foreign currency reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the sovereign
debtors policy toward international lenders, and the political constraints to which a sovereign debtor may be subject.
Risks of
Emerging Countries.
The Funds may invest in securities of issuers located in emerging countries. The risks of foreign investment are heightened when the issuer is located in an emerging country. Emerging countries are generally located in
Africa, Asia, the Middle East, Eastern and Central Europe and Central and South America. A Funds purchase and sale of portfolio securities in certain emerging countries may be constrained by limitations relating to daily changes in the prices
of listed securities, periodic trading or settlement volume and/or limitations on aggregate holdings of foreign investors. Such limitations may be computed based on the aggregate trading volume by or holdings of a Fund, the Investment Adviser, its
affiliates and their respective clients and other service providers. A Fund may not be able to sell securities in circumstances where price, trading or settlement volume limitations have been reached.
Foreign investment in the securities markets of certain emerging countries is restricted or controlled to varying degrees which may limit investment in
such countries or increase the administrative costs of such investments. For example, certain Asian countries require governmental approval prior to investments by foreign persons or limit investment by foreign persons to only a specified percentage
of an issuers outstanding securities or a specific class of securities which may have less advantageous terms (including price) than securities of the issuer available for purchase by nationals. In addition, certain countries may restrict or
prohibit investment opportunities in issuers or industries deemed important to national interests. Such restrictions may affect the market price, liquidity and rights of securities that may be purchased by a Fund. The repatriation of both investment
income and capital from certain emerging countries is subject to restrictions such as the need for governmental consents. In situations where a country restricts direct investment in securities (which may occur in certain Asian and other countries),
a Fund may invest in such countries through other investment funds in such countries.
Many emerging countries have experienced currency
devaluations and substantial (and, in some cases, extremely high) rates of inflation. Other emerging countries have experienced economic recessions. These circumstances have had a negative effect on the economies and securities markets of such
emerging countries. Economies in emerging countries generally are dependent heavily upon commodity prices and international trade and, accordingly, have been and may continue to be affected adversely by the economies of their trading partners, trade
barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade.
Many emerging countries are subject to a substantial degree of economic, political and social instability. Governments of some emerging countries are authoritarian in nature or have been installed or
removed as a result of military coups, while governments in other emerging countries have periodically used force to suppress civil dissent. Disparities of wealth, the pace and success of democratization, and ethnic, religious and racial
disaffection, among other factors, have also led to social unrest, violence and/or labor unrest in some emerging countries. Unanticipated political or social developments may result in sudden and significant investment losses. Investing in emerging
countries involves greater risk of loss due to expropriation, nationalization, confiscation of assets and property or the imposition of restrictions on foreign investments and on repatriation of capital invested. As an example, in the past, some
Eastern European governments have expropriated substantial amounts of private property, and many claims of the property owners have never been fully settled. There is no assurance that similar expropriations will not occur in other countries.
B-4
A Funds investment in emerging countries may also be subject to withholding or other taxes, which may
be significant and may reduce the return to the Fund from an investment in issuers in such countries. Settlement procedures in emerging countries are frequently less developed and reliable than those in the United States and may involve a
Funds delivery of securities before receipt of payment for their sale. In addition, significant delays may occur in certain markets in registering the transfer of securities. Settlement or registration problems may make it more difficult for a
Fund to value its portfolio securities and could cause the Fund to miss attractive investment opportunities, to have a portion of its assets uninvested or to incur losses due to the failure of a counterparty to pay for securities the Fund has
delivered or the Funds inability to complete its contractual obligations because of theft or other reasons.
The creditworthiness of the
local securities firms used by a Fund in emerging countries may not be as sound as the creditworthiness of firms used in more developed countries. As a result, the Fund may be subject to a greater risk of loss if a securities firm defaults in the
performance of its responsibilities.
The small size and inexperience of the securities markets in certain emerging countries and the limited
volume of trading in securities in those countries may make a Funds investments in such countries less liquid and more volatile than investments in countries with more developed securities markets (such as the United States, Japan and most
Western European countries). A Funds investments in emerging countries are subject to the risk that the liquidity of a particular investment, or investments generally, in such countries will shrink or disappear suddenly and without warning as
a result of adverse economic, market or political conditions or adverse investor perceptions, whether or not accurate. Because of the lack of sufficient market liquidity, a Fund may incur losses because it will be required to effect sales at a
disadvantageous time and only then at a substantial drop in price. Investments in emerging countries may be more difficult to value precisely because of the characteristics discussed above and lower trading volumes.
A Funds use of foreign currency management techniques in emerging countries may be limited. The Investment Adviser anticipates that a significant
portion of the Funds currency exposure in emerging countries may not be covered by those techniques.
Risks Specific to Greater
China.
In addition to the risks listed above, investing in Greater China presents other legal, regulatory, monetary economic and environmental risks.
The Peoples Republic of China is dominated by the one-party rule of the Communist Party. Investments in the Peoples Republic of China involve the risk of greater control over the economy,
political and legal uncertainties and currency fluctuations or blockage. The government of the Peoples Republic of China exercises significant control over economic growth through the allocation of resources, controlling payment of foreign
currency-denominated obligations, setting monetary policy and providing preferential treatment to particular industries or companies. For over three decades, the government of the Peoples Republic of China has been reforming economic and
market practices and providing a larger sphere for private ownership of property. While currently contributing to growth and prosperity, the government may decide not to continue to support these economic reform programs and could possibly return to
the completely centrally planned economy that existed prior to 1978.
The Chinese government has yet to develop comprehensive securities,
corporate, or commercial laws, and the Chinese markets are relatively new and undeveloped. Because the legal system is still developing, it may be more difficult to obtain or enforce judgments. Chinese companies may not be subject to the same
disclosure, accounting, auditing and financial reporting standards and practices as U.S. companies. Thus, there may be less information publicly available about Chinese companies than about most U.S. companies. Government supervision and regulation
of Chinese stock exchanges, currency markets, trading systems and brokers may be more or less rigorous than that present in the U.S. The procedures and rules governing transactions and custody in Greater China also may involve delays in payment,
delivery or recovery of money or investments. The legal
B-5
and regulatory regime in Greater China, especially as it relates to the securities markets, is constantly evolving, and any changes may either positively or negatively affect the performance of
investments in Greater China.
Foreign investments in the Peoples Republic of China are somewhat restricted. Securities listed on the
Shanghai and Shenzhen Stock Exchanges are divided into two classes of shares: A shares, ownership of which is restricted to Chinese investors and Qualified Foreign Institutional Investors (QFIIs) who have obtained QFII quota, and B
shares, which may be owned by Chinese and foreign investors. The Funds may obtain exposure to the A share market in the Peoples Republic of China by investing in participatory notes issued by banks, broker-dealers and other financial
institutions, or other structured or derivative instruments that are designed to replicate, or otherwise provide exposure to, the performance of A shares of Chinese companies. The Funds may also invest directly in B shares on the Shanghai and
Shenzhen Stock Exchanges.
The economies of the Peoples Republic of China, Hong Kong and Taiwan may differ favorably or unfavorably from
the U.S. economy in terms of the rate of growth of gross domestic product, the rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position, among other measures. Rapid industrialization in Greater China has
led to widespread environmental degradation. Greater China is also at risk of certain environmental events and natural disasters including earthquakes, droughts, floods, and tsunamis and may demonstrate economic sensitivity to such events.
As a result of investing in the Peoples Republic of China, a Fund may be subject to withholding and various other taxes imposed by the
Peoples Republic of China. To date, a 10% withholding tax has been levied on cash dividends, distributions and interest payments from companies listed in the Peoples Republic of China to foreign investors.
However, tax authorities in the Peoples Republic of China have not clarified certain aspects of the tax treatment of capital gains arising from
securities trading. It is therefore possible that the relevant tax authorities may in the future clarify the tax position and impose an income tax or withholding tax on realized gains from dealing in Peoples Republic of China equities. In
light of this uncertainty and in order to meet this potential tax liability for capital gains, the Investment Adviser reserves the right to provide for the withholding tax on such gains or income and withhold the tax for the account of a Fund.
The tax law and regulations of the Peoples Republic of China are constantly changing, and they may be changed with retrospective effect
to the advantage or disadvantage of shareholders. The interpretation and applicability of the tax law and regulations by tax authorities may not be as consistent and transparent as those of more developed nations, and may vary from region to region.
It should also be noted that any provision for taxation made by the Investment Adviser may be excessive or inadequate to meet final tax liabilities. Consequently, shareholders may be advantaged or disadvantaged depending upon the final tax
liabilities, the level of provision and when they subscribed and/or redeemed their shares of a Fund.
Hong Kong.
Since Hong Kong
reverted to Chinese sovereignty in 1997, it has been governed by the Basic Law, a quasi-constitution. The Basic Law guarantees a high degree of autonomy in certain matters, including economic, until 2047. Attempts by the government of
the Peoples Republic of China to exert control over Hong Kongs economic, political or legal structures or its existing social policy, could negatively affect investor confidence in Hong Kong, which in turn could negatively affect markets
and business performance. The economy of Hong Kong may be significantly and adversely affected by increasing competition from the emerging economies of Asia, including that of the Peoples Republic of China itself. In addition, the Hong Kong
dollar trades within a fixed trading band rate to (or is pegged to) the U.S. dollar. This fixed exchange rate has contributed to the growth and stability of the economy, but could be discontinued. It is uncertain what affect any
discontinuance of the currency peg and the establishment of an alternative exchange rate system would have on the Hong Kong economy.
B-6
Taiwan.
The political reunification of the Peoples Republic of China and Taiwan is a
highly problematic issue and is unlikely to be settled in the near future. This situation, and the continuing hostility between the Peoples Republic of China and Taiwan, poses a threat to Taiwans economy and may have an adverse impact on
the value of investments in both the Peoples Republic of China and Taiwan. Any escalation of hostility between the Peoples Republic of China and Taiwan would likely distort Taiwans capital accounts, as well as have a significant
adverse impact on the value of investments in both countries and in the region.
Foreign Custody Risk.
A Fund that invests in
foreign securities, may hold such securities and cash with foreign banks, agents, and securities depositories appointed by the Funds custodian (each a Foreign Custodian). Some Foreign Custodians may be recently organized or new to
the foreign custody business. In some countries, Foreign Custodians may be subject to little or no regulatory oversight over or independent evaluation of their operations. Further, the laws of certain countries may place limitations on a Funds
ability to recover its assets if a Foreign Custodian enters bankruptcy. Investments in emerging markets may be subject to even greater custody risks than investments in more developed markets. Custody services in emerging market countries are very
often undeveloped and may be considerably less well regulated than in more developed countries, and thus may not afford the same level of investor protection as would apply in developed countries.
Risk of Equity Swap Transactions.
In a standard swap transaction, two parties agree to exchange the returns, differentials in
rates of return or some other amount earned or realized on a particular predetermined asset (or group of assets) which may be adjusted for transaction costs, interest payments, dividends paid on the reference asset or other factors. The gross
returns to be exchanged or swapped between the parties are generally calculated with respect to a notional amount, for example, the increase or decrease in value of a particular dollar amount invested in the asset.
Equity swaps may be structured in different ways. For example, when a Fund takes a long position, a counterparty may agree to pay the Fund
the amount, if any, by which the notional amount of the equity swap would have increased in value had it been invested in a particular stock (or group of stocks), plus the dividends that would have been received on the stock. In these cases, a Fund
may agree to pay to the counter-party interest on the notional amount of the equity swap plus the amount, if any, by which that notional amount would have decreased in value had it been invested in such stock (or group of stocks). Therefore, in this
case the return to the Fund on the equity swap should be the gain or loss on the notional amount plus dividends on the stock less the interest paid by the Fund on the notional amount. In other cases, when a Fund takes a short position, a
counterparty may agree to pay the Fund the amount, if any, by which the notional amount of the equity swap would have decreased in value had the Fund sold a particular stock (or group of stocks) short, less the dividend expense that the Fund would
have paid on the stock (or group of stocks), as adjusted for interest payments or other economic factors.
Under an equity swap, payments may
be made at the conclusion of the equity swap or periodically during its term. Sometimes, however, the Investment Adviser may be able to terminate a swap contract prior to its term, subject to any potential termination fee that is in addition to a
Funds accrued obligations under the swap.
Equity swaps are derivatives and their value can be very volatile. To the extent that the
Investment Adviser does not accurately analyze and predict future market trends, the values of assets or economic factors, or the creditworthiness of the counterparty, a Fund may suffer a loss, which may be substantial.
Risks of Derivative Investments.
The Funds may invest in derivative instruments including without limitation, options, futures, options on
futures, forwards, participation notes, swaps, options on swaps, structured securities and other derivatives relating to foreign currency transactions. Investments in derivative instruments may be for both hedging and nonhedging purposes (that is,
to seek to increase total return), although suitable derivative instruments may not always be available to the Investment Adviser for these purposes. Losses from investments in derivative instruments can result from a lack of correlation between
changes in the value of derivative instruments and the portfolio assets (if any) being hedged, the potential illiquidity of the markets for derivative
B-7
instruments, the failure of the counterparty to perform its contractual obligations, or the risks arising from margin requirements and related leverage factors associated with such transactions.
Losses may also arise if the Funds receive cash collateral under the transactions and some or all of that collateral is invested in the market. To the extent that cash collateral is so invested, such collateral will be subject to market depreciation
or appreciation, and a Fund may be responsible for any loss that might result from its investment of the counterpartys cash collateral. The use of these management techniques also involves the risk of loss if the Investment Adviser is
incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments may be harder to value, subject to greater volatility and more likely subject to
changes in tax treatment than other investments. For these reasons, the Investment Advisers attempts to hedge portfolio risks through the use of derivative instruments may not be successful, and the Investment Adviser may choose not to hedge
certain portfolio risks. Investing for nonhedging purposes presents even greater risk of loss.
Risks of Participation Notes.
The Funds may invest in participation notes. Some countries, especially emerging markets countries, do not permit foreigners to participate directly in their securities markets or otherwise present difficulties for efficient foreign investment. A
Fund may use participation notes to establish a position in such markets as a substitute for direct investment. Participation notes are issued by banks or broker-dealers and are designed to track the return of a particular underlying equity or debt
security, currency or market. When the participation note matures, the issuer of the participation note will pay to, or receive from, a Fund the difference between the nominal value of the underlying instrument at the time of purchase and that
instruments value at maturity. Investments in participation notes involve the same risks as are associated with a direct investment in the underlying security, currency or market that they seek to replicate. In addition, participation notes
are generally traded over-the-counter and are subject to counterparty risk. Counterparty risk is the risk that the broker-dealer or bank that issues them will not fulfill its contractual obligation to complete the transaction with a Fund.
Participation notes constitute general unsecured contractual obligations of the banks or broker-dealers that issue them, and a Fund would be relying on the creditworthiness of such banks or broker-dealers and would have no rights under a
participation note against the issuer of the underlying assets. In addition, participation notes may trade at a discount to the value of the underlying securities or markets that they seek to replicate.
Risks of Large Shareholder Redemptions.
Certain funds, accounts, individuals or Goldman Sachs affiliates may from time to time own
(beneficially or of record) or control a significant percentage of a Funds shares. Redemptions by these funds, accounts or individuals of their holdings in a Fund may impact the Funds liquidity and NAV. These redemptions may also force a
Fund to sell securities, which may negatively impact the Funds brokerage and tax costs.
Risks of Illiquid Securities.
Each Fund may invest up to 15% of its net assets in illiquid securities which cannot be disposed of in seven days in the ordinary course of business at fair value. Illiquid securities, in which some or all of the Funds may invest, include:
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Both domestic and foreign securities that are not readily marketable
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Certain stripped mortgage-backed securities
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Repurchase agreements and time deposits with a notice or demand period of more than seven days
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Certain over-the-counter options
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Certain private investments in public equity (PIPEs)
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Certain structured securities and swap transactions
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Certain restricted securities, unless it is determined, based upon a review of the trading markets for a specific restricted security, that such
restricted security is liquid because it is so-called 4(2) commercial paper or is otherwise eligible for resale pursuant to Rule 144A under the Securities Act of 1933 (144A Securities).
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Investing in 144A Securities may decrease the liquidity of a Funds portfolio to the extent that
qualified institutional buyers become for a time uninterested in purchasing these restricted securities. The purchase price and subsequent valuation of restricted and illiquid securities normally reflect a discount, which may be significant, from
the market price of comparable securities for which a liquid market exists.
Investments purchased by a Fund, particularly debt securities and
over-the-counter traded instruments, that are liquid at the time of purchase may subsequently become illiquid due to events relating to the issuer of the securities, markets events, economic conditions or investor perceptions. Domestic and foreign
markets are becoming more and more complex and interrelated, so that events in one sector of the market or the economy, or in one geographical region, can reverberate and have negative consequences for other market, economic or regional sectors in a
manner that may not be reasonably foreseen. With respect to over-the-counter traded securities, the continued viability of any over-the-counter secondary market depends on the continued willingness of dealers and other participants to purchase the
instruments.
If one or more instruments in a Funds portfolio become illiquid, the Fund may exceed its 15% limitation in illiquid
instruments. In the event that changes in the portfolio or other external events cause the investments in illiquid instruments to exceed 15% of a Funds net assets, the Fund must take steps to bring the aggregate amount of illiquid instruments
back within the prescribed limitations as soon as reasonably practicable. This requirement would not force a Fund to liquidate any portfolio instrument where the Fund would suffer a loss on the sale of that instrument.
In cases where no clear indication of the value of a Funds portfolio instruments is available, the portfolio instruments will be valued at their
fair value according to the valuation procedures approved by the Board of Trustees. These cases include, among others, situations where a security or other asset or liability does not have a price source, or the secondary markets on which an
investment has previously been traded are no longer viable, due to its lack of liquidity. For more information on fair valuation, please see Shareholder GuideHow To Buy SharesHow Are Shares Priced?
Non-Diversification and Geographic Concentration Risks.
The China Equity Fund is classified as nondiversified funds under the Investment
Company Act and is, therefore, more susceptible to adverse developments affecting any single issuer held in its portfolios, and may be more susceptible to greater losses because of these developments.
In addition, the Fund may invest a significant portion of its total assets in the securities of corporate and government issuers located in a particular
foreign country or region. Concentration of the investments of the Fund in issuers located in a particular country or region will subject the Fund, to a greater extent than if investments were less concentrated, to losses arising from adverse
developments affecting those issuers or countries.
Credit/Default Risks.
Debt securities purchased by the Funds may include
U.S. Government Securities (including zero coupon bonds) and securities issued by foreign governments, domestic and foreign corporations, banks and other issuers. Some of these fixed income securities are described in the next section below. Further
information is provided in the SAI.
Debt securities rated BBB or higher by Standard & Poors or Baa3 or higher by
Moodys or having a comparable rating by another NRSRO are considered investment grade. Securities rated BBB or Baa3 are considered medium-grade obligations with speculative characteristics, and adverse economic conditions or
changing circumstances may weaken their issuers capacity to pay interest and repay principal. For the purpose of determining compliance with any credit rating requirement, each Fund assigns a security, at the time of purchase, the highest
rating by an NRSRO if the security is rated by more than one NRSRO. Therefore, a security will be deemed to have met a rating requirement if it receives the minimum required rating from at least one such rating organization even though it has been
rated below the minimum rating by one or more other rating
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organizations, or if unrated by such rating organizations, the security is determined by the Investment Adviser to be of comparable credit quality. A security satisfies a Funds minimum
rating requirement regardless of its relative ranking (for example, plus or minus) within a designated major rating category (for example, BBB or Baa). If a security satisfies a Funds minimum rating requirement at the time of purchase and is
subsequently downgraded below that rating, the Fund will not be required to dispose of the security. If a downgrade occurs, the Investment Adviser will consider which action, including the sale of the security, is in the best interest of a Fund and
its shareholders.
The Funds may invest in fixed income securities rated BB+ or Ba1 or below (or comparable unrated securities) which are
commonly referred to as junk bonds. Junk bonds are considered speculative and may be questionable as to principal and interest payments.
In some cases, junk bonds may be highly speculative, have poor prospects for reaching investment grade standing and be in default. As a result, investment in such bonds will present greater speculative
risks than those associated with investment in investment grade bonds. Also, to the extent that the rating assigned to a security in a Funds portfolio is downgraded by a rating organization, the market price and liquidity of such security may
be adversely affected.
Risks of IPOs.
The Funds may invest in IPOs. An IPO is a companys first offering of stock to the
public. IPO risk is the risk that the market value of IPO shares will fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, the small number of shares available for trading and limited information
about the issuer. The purchase of IPO shares may involve high trans-action costs. IPO shares are subject to market risk and liquidity risk. When a Funds asset base is small, a significant portion of the Funds performance could be
attributable to investments in IPOs, because such investments would have a magnified impact on the Fund. As the Funds assets grow, the effect of the Funds investments in IPOs on the Funds performance probably will decline, which
could reduce the Funds performance. Because of the price volatility of IPO shares, a Fund may choose to hold IPO shares for a very short period of time. This may increase the turnover of the Funds portfolio and may lead to increased
expenses to the Fund, such as commissions and transaction costs. By selling IPO shares, a Fund may realize taxable gains it will subsequently distribute to shareholders. In addition, the market for IPO shares can be speculative and/or inactive for
extended periods of time. There is no assurance that a Fund will be able to obtain allocable portions of IPO shares. The limited number of shares available for trading in some IPOs may make it more difficult for a Fund to buy or sell significant
amounts of shares without an unfavorable impact on prevailing prices. Investors in IPO shares can be affected by substantial dilution in the value of their shares, by sales of additional shares and by concentration of control in existing management
and principal shareholders.
Temporary Investment Risks.
Each Fund may, for temporary defensive purposes, invest up to 100% of
its total assets in:
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U.S. Government Securities
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Commercial paper rated at least A-2 by Standard & Poors, P-2 by Moodys or having a comparable rating by another NRSRO (or, if
unrated, determined by the Investment Adviser to be of comparable credit quality)
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Certificates of deposit
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Non-convertible preferred stocks and non-convertible corporate bonds with a remaining maturity of less than one year
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Other investment companies
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When a
Funds assets are invested in such instruments, the Fund may not be achieving its investment objective.
C. Portfolio Securities and
Techniques
This section provides further information on certain types of securities and investment techniques that may be used by the
Funds, including their associated risks.
The Funds may purchase other types of securities or instruments similar to those described in this
section if otherwise consistent with the Funds investment objective and policies. Further information is provided in the SAI, which is available upon request.
Other Investment Companies.
Each Fund may invest in securities of other investment companies, including ETFs, subject to statutory limitations prescribed by the Investment Company Act. These
limitations include in certain circumstances a prohibition on any Fund acquiring more than 3% of the voting shares of any other investment company, and a prohibition on investing more than 5% of a Funds total assets in securities of any one
investment company or more than 10% of its total assets in securities of all investment companies. Many ETFs, however, have obtained exemptive relief from the SEC to permit unaffiliated funds to invest in the ETFs shares beyond these statutory
limitations, subject to certain conditions and pursuant to a contractual arrangement between the ETFs and the investing funds. A Fund may rely on these exemptive orders to invest in unaffiliated ETFs.
The use of ETFs is intended to help a Fund match the total return of the particular market segments or indices represented by those ETFs, although that
may not be the result. Most ETFs are passively-managed investment companies whose shares are purchased and sold on a securities exchange. An ETF represents a portfolio of securities designed to track a particular market segment or index. An
investment in an ETF generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives, strategies and policies. In addition, an ETF may fail to
accurately track the market segment or index that underlies its investment objective. The price of an ETF can fluctuate, and a Fund could lose money investing in an ETF. Moreover, ETFs are subject to the following risks that do not apply to
conventional funds: (i) the market price of the ETFs shares may trade at a premium or a discount to their NAV; (ii) an active trading market for an ETFs shares may not develop or be maintained; and (iii) there is no
assurance that the requirements of the exchange necessary to maintain the listing of an ETF will continue to be met or remain unchanged.
Pursuant to an exemptive order obtained from the SEC or under an exemptive rule adopted by the SEC, a Fund may also invest in certain other investment
companies and money market funds beyond the statutory limits described above. Some of those investment companies and money market funds may be funds for which the Investment Adviser or any of its affiliates serves as investment adviser,
administrator or distributor.
A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such
other investment companies (including ETFs), in addition to the fees and expenses regularly borne by the Fund. Although the Funds do not expect to do so in the foreseeable future, each Fund is authorized to invest substantially all of its assets in
a single open-end investment company or series thereof that has substantially the same investment objective, policies and fundamental restrictions as the Fund.
Unseasoned Companies.
Each Fund may invest in companies which (together with their predecessors) have operated less than three years. The securities of such companies may have limited
liquidity, which can result in
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their being priced higher or lower than might otherwise be the case. In addition, investments in unseasoned companies are more speculative and entail greater risk than do investments in companies
with an established operating record.
Direct Equity Investment.
The China Equity Fund may invest up to 5% of its total assets
in direct equity investments. These Funds may invest in direct equity investments that the Investment Adviser expects will become listed or otherwise publicly traded securities. Direct equity investments consist of (i) the private purchase from
an enterprise of an equity interest in the enterprise in the form of shares of common stock or equity interests in trusts, partnerships, joint ventures or similar enterprises, and (ii) the purchase of such an equity interest in an enterprise
from a principal investor in the enterprise. Direct equity investments are generally considered to be illiquid. To the degree that the Fund invests in direct equity investments that it considers to be illiquid, it will limit such investments so that
they, together with the Funds other illiquid investments, comply with the Funds investment restriction on illiquid securities.
In
most cases, the Fund will, at the time of making a direct equity investment, enter into a shareholder or similar agreement with the enterprise and one or more other holders of equity interests in the enterprise. The Investment Adviser anticipates
that these agreements may, in appropriate circumstances, provide the Fund with the ability to appoint a representative to the board of directors or similar body of the enterprise, and eventually to dispose of the Funds investment in the
enterprise through, for example, the listing of the securities or the sale of the securities to the issuer or another investor. In cases where the Fund appoints a representative, the representative would be expected to provide the Fund with the
ability to monitor its investment and protect its rights in the investment and will not be appointed for the purpose of exercising management or control of the enterprise. In addition, the Fund intends to make their direct equity investments in such
a manner as to avoid subjecting the Fund to unlimited liability with respect to the investments. There can be no assurance that the Funds direct equity investments will become listed, or that it will be able to sell any direct equity
investment to the issuer or another investor. The extent to which the Fund may make direct equity investments may be limited by considerations relating to its status as a regulated investment company.
Direct equity investments in Chinese companies may involve a high degree of business and financial risk that can result in substantial losses. Because of
the absence of a public trading market for these investments, the Fund may take longer to liquidate these positions than would be the case for publicly traded securities and the prices on these sales could be less than those originally paid by the
Fund or less than what may be considered the fair value of such securities. Further, issuers whose securities are not publicly traded may not be subject to disclosure and other investor protection requirements applicable to publicly traded
securities. If such securities are required to be registered under the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses of registration. Certain of the Funds direct equity
investments, particularly in China, may include investments in smaller, less-seasoned companies, which may involve greater risks. These companies may have limited product lines, markets of financial resources, or they may be dependent on a limited
management group.
Convertible Securities.
Each Fund may invest in convertible securities. Convertible securities are preferred
stock or debt obligations that are convertible into common stock. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. Convertible securities in which a Fund invests are subject
to the same rating criteria as its other investments in fixed income securities. Convertible securities have both equity and fixed income risk characteristics. Like all fixed income securities, the value of convertible securities is susceptible to
the risk of market losses attributable to changes in interest rates. Generally, the market value of convertible securities tends to decline as interest rates increase and, conversely, to increase as interest rates decline. However, when the market
price of the common stock underlying a convertible security exceeds the conversion price of the convertible security, the convertible security tends to reflect the market price of the underlying common stock. As the market price of the underlying
common stock declines, the convertible security, like a fixed income security, tends to trade increasingly on a yield basis, and thus may not decline in price to the same extent as the underlying common stock.
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Foreign Currency Transactions.
A Fund may, to the extent consistent with its investment
policies, purchase or sell foreign currencies on a cash basis or through forward contracts. A forward contract involves an obligation to purchase or sell a specific currency at a future date at a price set at the time of the contract. A Fund may
engage in foreign currency transactions for hedging purposes and to seek to protect against anticipated changes in future foreign currency exchange rates. In addition, a Fund may enter into foreign currency transactions to seek a closer correlation
between the Funds overall currency exposures and the currency exposures of the Funds performance benchmark. The Funds may also enter into such transactions to seek to increase total return, which presents additional risk.
The Funds may also engage in cross-hedging by using forward contracts in a currency different from that in which the hedged security is denominated or
quoted. A Fund may hold foreign currency received in connection with investments in foreign securities when, in the judgment of the Investment Adviser, it would be beneficial to convert such currency into U.S. dollars at a later date (
e.g.
,
the Investment Adviser may anticipate the foreign currency to appreciate against the U.S. dollar).
The Funds may, from time to time, engage
in non-deliverable forward transactions to manage currency risk or to gain exposure to a currency without purchasing securities denominated in that currency. A non-deliverable forward is a transaction that represents an agreement between a Fund and
a counterparty (usually a commercial bank) to buy or sell a specified (notional) amount of a particular currency at an agreed upon foreign exchange rate on an agreed upon future date. If the counterparty defaults, a Fund will have contractual
remedies pursuant to the agreement related to the transaction, but the Fund may be delayed or prevented from obtaining payments owed to it pursuant to non-deliverable forward transactions.
Currency exchange rates may fluctuate significantly over short periods of time, causing, along with other factors, a Funds NAV to fluctuate (when the Funds NAV fluctuates, the value of your
shares may go up or down). Currency exchange rates also can be affected unpredictably by the intervention of U.S. or foreign governments or central banks, or the failure to intervene, or by currency controls or political developments in the United
States or abroad.
The market in forward foreign currency exchange contracts, currency swaps and other privately negotiated currency
instruments offers less protection against defaults by the other party to such instruments than is available for currency instruments traded on an exchange. Such contracts are subject to the risk that the counterparty to the contract will default on
its obligations. Because these contracts are not guaranteed by an exchange or clearinghouse, a default on a contract would deprive a Fund of unrealized profits, transaction costs or the benefits of a currency hedge or could force the Fund to cover
its purchase or sale commitments, if any, at the current market price.
As an investment company registered with the SEC, each Fund must
identify on its books (often referred to as asset segregation) liquid assets, or engage in other appropriate measures, to cover open positions with respect to its transactions in forward contracts. In the case of forward
contracts that do not cash settle, for example, a Fund must identify on its books liquid assets equal to the full notional amount of the forward contracts while the positions are open. With respect to forward contracts that do cash settle, however,
a Fund is permitted to identify liquid assets in an amount equal to the Funds daily marked-to-market net obligations (
i.e.
, the Funds daily net liability) under the forward contracts, if any, rather than their full notional
amount.
Each Fund reserves the right to modify its asset segregation policies in the future in its discretion. By identifying assets equal to
only its net obligations under cash-settled forward contracts, the Fund will have the ability to employ leverage to a greater extent than if the Fund were required to identify assets equal to the full notional amount of the forward contracts.
Corporate Debt Obligations.
Corporate debt obligations include bonds, notes, debentures, commercial paper and other obligations
of corporations to pay interest and repay principal. Each Fund may invest in corporate debt
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obligations issued by U.S. and certain non-U.S. issuers which issue securities denominated in the U.S. dollar (including Yankee and Euro obligations as well as other non-U.S. dollar currencies).
In addition to obligations of corporations, corporate debt obligations include securities issued by banks and other financial institutions and supranational entities (i.e., the World Bank, the International Monetary Fund, etc.).
Bank Obligations.
Each Fund may invest in obligations issued or guaranteed by U.S. or foreign banks. Bank obligations, including without
limitation, time deposits, bankers acceptances and certificates of deposit, may be general obligations of the parent bank or may be limited to the issuing branch by the terms of the specific obligations or by government regulations. Banks are
subject to extensive but different governmental regulations which may limit both the amount and types of loans which may be made and interest rates which may be charged. In addition, the profitability of the banking industry is largely dependent
upon the availability and cost of funds for the purpose of financing lending operations under prevailing money market conditions. General economic conditions as well as exposure to credit losses arising from possible financial difficulties of
borrowers play an important part in the operation of this industry.
U.S. Government Securities.
Each Fund may invest in U.S.
Government Securities. U.S. Government Securities include U.S. Treasury obligations and obligations issued or guaranteed by U.S. government agencies, instrumentalities or sponsored enterprises. U.S. Government Securities may be supported by
(i) the full faith and credit of the U.S. Treasury; (ii) the right of the issuer to borrow from the U.S. Treasury; (iii) the discretionary authority of the U.S. government to purchase certain obligations of the issuer; or
(iv) only the credit of the issuer. U.S. Government Securities also include Treasury receipts, zero coupon bonds and other stripped U.S. Government Securities, where the interest and principal components are traded independently. U.S.
Government Securities may also include Treasury inflation-protected securities whose principal value is periodically adjusted according to the rate of inflation.
U.S. Government Securities are deemed to include (i) securities for which the payment of principal and interest is backed by an irrevocable letter of credit issued by the U.S. government, its
agencies, authorities or instrumentalities; and (ii) participations in loans made to foreign governments or their agencies that are so guaranteed. Certain of these participations may be regarded as illiquid. U.S. Government Securities also
include zero coupon bonds.
U.S. Government Securities have historically involved little risk of loss of principal if held to maturity.
However, no assurance can be given that the U.S. government will be able or willing to repay the principal or interest when due or will provide financial support to U.S. government agencies, authorities, instrumentalities or sponsored enterprises if
it is not obligated to do so by law.
Custodial Receipts and Trust Certificates.
Each Fund may invest in custodial receipts and
trust certificates representing interests in securities held by a custodian or trustee. The securities so held may include U.S. Government Securities or other types of securities in which a Fund may invest. The custodial receipts or trust
certificates may evidence ownership of future interest payments, principal payments or both on the underlying securities, or, in some cases, the payment obligation of a third party that has entered into an interest rate swap or other arrangement
with the custodian or trustee. For certain securities laws purposes, custodial receipts and trust certificates may not be considered obligations of the U.S. government or other issuer of the securities held by the custodian or trustee. If for tax
purposes a Fund is not considered to be the owner of the underlying securities held in the custodial or trust account, the Fund may suffer adverse tax consequences. As a holder of custodial receipts and trust certificates, a Fund will bear its
proportionate share of the fees and expenses charged to the custodial account or trust. Each Fund may also invest in separately issued interests in custodial receipts and trust certificates.
Borrowings.
Each Fund can borrow money from banks and other financial institutions in amounts not exceeding one-third of its total assets (including the amount borrowed) for temporary or
emergency purposes. A Fund generally may not make additional investments if borrowings exceed 5% of its net assets.
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Structured Securities.
Each Fund may invest in structured securities. Structured securities
are securities whose value is determined by reference to changes in the value of specific currencies, securities, interest rates, commodities, indices or other financial indicators (the Reference) or the relative change in two or more
References. Investments in structured securities may provide exposure to certain securities or markets in situations where regulatory or other restrictions prevent direct investments in such issuers or markets.
The interest rate or the principal amount payable upon maturity or redemption may be increased or decreased depending upon changes in the applicable
Reference. Structured securities may be positively or negatively indexed, so that appreciation of the Reference may produce an increase or decrease in the interest rate or value of the security at maturity. In addition, changes in the interest rates
or the value of the security at maturity may be a multiple of changes in the value of the Reference, effectively leveraging the Funds investment so that small changes in the value of the Reference may result in disproportionate gains or losses
to the Fund. Consequently, structured securities may present a greater degree of market risk than many types of securities and may be more volatile, less liquid and more difficult to price accurately than less complex securities. Structured
securities are also subject to the risk that the issuer of the structured securities may fail to perform its contractual obligations. Certain issuers of structured products may be deemed to be investment companies as defined in the Investment
Company Act. As a result, the Funds investments in structured securities may be subject to the limits applicable to investments in other investment companies.
Structured securities include, but are not limited to, equity linked notes. An equity linked note is a note whose performance is tied to a single stock, a stock index or a basket of stocks. Equity linked
notes combine the principal protection normally associated with fixed income investments with the potential for capital appreciation normally associated with equity investments. Upon the maturity of the note, the holder generally receives a return
of principal based on the capital appreciation of the linked securities. Depending on the terms of the note, equity linked notes may also have a cap or floor on the maximum principal amount to be repaid to holders,
irrespective of the performance of the underlying linked securities. For example, a note may guarantee the repayment of the original principal amount invested (even if the underlying linked securities have negative performance during the notes
term), but may cap the maximum payment at maturity at a certain percentage of the issuance price or the return of the underlying linked securities. Alternatively, the note may not guarantee a full return on the original principal, but may offer a
greater participation in any capital appreciation of the underlying linked securities. The terms of an equity linked note may also provide for periodic interest payments to holders at either a fixed or floating rate. The secondary market for equity
linked notes may be limited, and the lack of liquidity in the secondary market may make these securities difficult to dispose of and to value. Equity linked notes will be considered equity securities for purposes of a Funds investment
objective and policies.
REITs.
Each Fund may invest in REITs. REITs are pooled investment vehicles that invest primarily in
either real estate or real estate related loans. The value of a REIT is affected by changes in the value of the properties owned by the REIT or securing mortgage loans held by the REIT. REITs are dependent upon the ability of the REITs
managers, and are subject to heavy cash flow dependency, default by borrowers and the qualification of the REITs under applicable regulatory requirements for favorable income tax treatment. REITs are also subject to risks generally associated with
investments in real estate including possible declines in the value of real estate, general and local economic conditions, environmental problems and changes in interest rates. To the extent that assets underlying a REIT are concentrated
geographically, by property type or in certain other respects, these risks may be heightened. A Fund will indirectly bear its proportionate share of any expenses, including management fees, paid by a REIT in which it invests.
Options on Securities, Securities Indices and Foreign Currencies.
A put option gives the purchaser of the option the right to sell, and the
writer (seller) of the option the obligation to buy, the underlying instrument during the option period. A call option gives the purchaser of the option the right to buy, and the writer (seller) of the option the obligation to sell, the underlying
instrument during the option period. Each Fund may write (sell) covered call and put options and purchase put and call options on any securities in which the Fund may invest or
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on any securities index consisting of securities in which it may invest. A Fund may also, to the extent consistent with its investment policies, purchase and sell (write) put and call options on
foreign currencies.
The writing and purchase of options is a highly specialized activity which involves special investment risks. Options may
be used for either hedging or cross-hedging purposes, or to seek to increase total return (which presents additional risk). The successful use of options depends in part on the ability of the Investment Adviser to anticipate future price
fluctuations and the degree of correlation between the options and securities (or currency) markets. If the Investment Adviser is incorrect in its expectation of changes in market prices or determination of the correlation between the instruments or
indices on which options are written and purchased and the instruments in a Funds investment portfolio, the Fund may incur losses that it would not otherwise incur. The use of options can also increase a Funds transaction costs. Options
written or purchased by the Funds may be traded on either U.S. or foreign exchanges or over-the-counter. Foreign and over-the-counter options will present greater possibility of loss because of their greater illiquidity and credit risks. When
writing an option, a Fund must identify on its books liquid assets, or engage in other appropriate measures, to cover its obligation under the option contract.
Futures Contracts and Options and Swaps on Futures Contracts.
Futures contracts are standardized, exchange-traded contracts that provide for the sale or purchase of a specified financial
instrument or currency at a future time at a specified price. An option on a futures contract gives the purchaser the right (and the writer of the option the obligation) to assume a position in a futures contract at a specified exercise price within
a specified period of time. A swap on a futures contract provides an investor with the ability to gain economic exposure to a particular futures market. A futures contract may be based on particular securities, foreign currencies, securities indices
and other financial instruments and indices. The Funds may engage in futures transactions on both U.S. and foreign exchanges.
Each Fund may,
to the extent consistent with its investment policies, purchase and sell futures contracts, purchase and write call and put options on futures contracts and enter into swaps on futures contracts, in order to seek to increase total return or to hedge
against changes in interest rates, securities prices or currency exchange rates, or to otherwise manage its term structure, sector selections and duration in accordance with its investment objective and policies. Each Fund may also enter into
closing purchase and sale transactions with respect to such contracts and options.
Futures contracts and related options and swaps present
the following risks:
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While a Fund may benefit from the use of futures and options and swaps on futures, unanticipated changes in interest rates, securities prices or
currency exchange rates may result in poorer overall performance than if the Fund had not entered into any futures contracts, options transactions or swaps.
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Because perfect correlation between a futures position and a portfolio position that is intended to be protected is impossible to achieve, the desired
protection may not be obtained and a Fund may be exposed to additional risk of loss.
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The loss incurred by a Fund in entering into futures contracts and in writing call options and entering into swaps on futures is potentially unlimited
and may exceed the amount of the premium received.
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Futures markets are highly volatile and the use of futures may increase the volatility of a Funds NAV.
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As a result of the low margin deposits normally required in futures trading, a relatively small price movement in a futures contract may result in
substantial losses to a Fund.
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Futures contracts and options and swaps on futures may be illiquid, and exchanges may limit fluctuations in futures contract prices during a single
day.
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Foreign exchanges may not provide the same protection as U.S. exchanges.
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A Fund must identify on its books liquid assets, or engage in other appropriate measures, to
cover open positions with respect to its transactions in futures contracts and options and swaps on futures contracts. In the case of futures contracts that do not cash settle, for example, a Fund must identify on its books liquid assets
equal to the full notional amount of the futures contracts while the positions are open. With respect to futures contracts that are required to cash settle, however, a Fund may identify on its books liquid assets in an amount equal to the
Funds daily marked-to-market net obligations (i.e., the Funds daily net liability) under the futures contracts, if any, rather than their full notional amount. Each Fund reserves the right to modify its asset segregation policies in the
future in its discretion. By identifying assets equal to only its net obligations under cash-settled futures contracts, a Fund will have the ability to employ leverage to a greater extent than if the Fund were required to identify assets equal to
the full notional amount of the futures contracts.
Equity Swaps, Index Swaps and Currency Swaps.
Each Fund may invest in equity
swaps, index swaps and currency swaps. Equity swaps allow the parties to a swap agreement to exchange the dividend income or other components of return on an equity investment (for example, a group of equity securities or an index) for another
payment stream. An equity swap may be used by a Fund to invest in a market without owning or taking physical custody of securities in circumstances in which direct investment may be restricted for legal reasons or is otherwise deemed impractical or
disadvantageous. Index swaps allow one party or both parties to a swap agreement to receive one or more payments based off of the return, performance or volatility of an index or of certain securities which comprise the index. Currency swaps involve
the exchange of the parties respective rights to make or receive payments in specified currencies.
The value of swaps can be very
volatile. To the extent that the Investment Adviser does not accurately analyze and predict the potential relative fluctuation of the components swapped with another party, or the creditworthiness of the counterparty, a Fund may suffer a loss, which
may be substantial. The value of some components of a swap (such as the dividends on a common stock) may also be sensitive to changes in interest rates. Furthermore, swaps may be illiquid, and a Fund may be unable to terminate its obligations when
desired.
Currently, certain standardized swap transactions are subject to mandatory central clearing. Although central clearing is expected
to decrease counterparty risk and increase liquidity compared to bilaterally negotiated swaps, central clearing does not eliminate counterparty risk or illiquidity risk entirely.
As an investment company registered with the SEC, each Fund must identify on its books liquid assets, or engage in other SEC or staff approved measures, to cover open positions with respect to
certain kinds of derivative instruments. In the case of swaps that do not cash settle, for example, a Fund must identify on its books liquid assets equal to the full notional amount of the swaps while the positions are open. With respect to swaps
that are required to cash settle, however, a Fund may identify liquid assets in an amount equal to the Funds daily marked-to-market net obligations (i.e. the Funds daily net liability) under the swaps, if any, rather than their full
notional amount. Each Fund reserves the right to modify its asset segregation policies in the future in its discretion. By identifying assets equal to only its net obligations under cash-settled swaps, a Fund will have the ability to employ leverage
to a greater extent than if the Funds were required to identify assets equal to the full notional amount of the swaps.
When-Issued
Securities and Forward Commitments.
Each Fund may purchase when-issued securities and make contracts to purchase or sell securities for a fixed price at a future date beyond customary settlement time. When-issued securities are securities
that have been authorized, but not yet issued. When-issued securities are purchased in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction. A forward commitment involves
the entering into a contract to purchase or sell securities for a fixed price at a future date beyond the customary settlement period.
The
purchase of securities on a when-issued or forward commitment basis involves a risk of loss if the value of the security to be purchased declines before the settlement date. Conversely, the sale of securities on a forward commitment basis involves
the risk that the value of the securities sold may increase before the settlement date.
B-17
Although a Fund will generally purchase securities on a when-issued or forward commitment basis with the intention of acquiring the securities for its portfolio, a Fund may dispose of when-issued
securities or forward commitments prior to settlement if the Investment Adviser deems it appropriate. When purchasing a security on a when-issued basis or entering into a forward commitment, a Fund must identify on its books liquid assets, or engage
in other appropriate measures, to cover its obligations.
Non-Investment Grade Fixed Income Securities.
Non-investment grade fixed income securities and unrated securities of comparable credit quality (commonly known as junk bonds) are considered speculative. In some cases, these obligations may be highly speculative and have poor
prospects for reaching investment grade standing. Non-investment grade fixed income securities are subject to the increased risk of an issuers inability to meet principal and interest obligations. These securities, also referred to as high
yield securities, may be subject to greater price volatility due to such factors as specific government or municipal developments, interest rate sensitivity, negative perceptions of the junk bond markets generally and less secondary market
liquidity.
Non-investment grade securities may be issued by governmental bodies that may have difficulty in making all scheduled interest and
principal payments. The market value of non-investment grade fixed income securities tends to reflect individual government or municipal developments to a greater extent than that of higher rated securities which react primarily to fluctuations in
the general level of interest rates. As a result, a Funds ability to achieve its investment objectives may depend to a greater extent on the Investment Advisers judgment concerning the creditworthiness of issuers than funds which invest
in higher-rated securities. Issuers of non-investment grade fixed income securities may not be able to make use of more traditional methods of financing and their ability to service debt obligations may be affected more adversely than issuers of
higher-rated securities by economic downturns, specific corporate or financial developments or the issuers inability to meet specific projected business forecasts. Negative publicity about the junk bond market and investor perceptions
regarding lower rated securities, whether or not based on fundamental analysis, may depress the prices for such securities.
A holders
risk of loss from default is significantly greater for non-investment grade fixed income securities than is the case for holders of other debt securities because such non-investment grade securities are generally unsecured and are often subordinated
to the rights of other creditors of the issuers of such securities. Investment by a Fund in defaulted securities poses additional risk of loss should nonpayment of principal and interest continue in respect of such securities. Even if such
securities are held to maturity, recovery by a Fund of its initial investment and any anticipated income or appreciation is uncertain.
The
secondary market for non-investment grade fixed income securities is concentrated in relatively few market makers and is dominated by institutional investors, including mutual funds, insurance companies and other financial institutions. Accordingly,
the secondary market for such securities is not as liquid as, and is more volatile than, the secondary market for higher-rated securities. In addition, market trading volume for high yield fixed income securities is generally lower and the secondary
market for such securities could shrink or disappear suddenly and without warning as a result of adverse market or economic conditions, independent of any specific adverse changes in the condition of a particular issuer. The lack of sufficient
market liquidity may cause a Fund to incur losses because it will be required to effect sales at a disadvantageous time and then only at a substantial drop in price. These factors may have an adverse effect on the market price and the Funds
ability to dispose of particular portfolio investments. A less liquid secondary market also may make it more difficult for the Funds to obtain precise valuations of the high yield securities in their portfolios.
Credit ratings issued by credit rating agencies are designed to evaluate the safety of principal and interest payments of rated securities. They do not,
however, evaluate the market value risk of non-investment grade securities and, therefore, may not fully reflect the true risks of an investment. In addition, credit rating agencies may or may not make timely changes in a rating to reflect changes
in the economy or in the conditions of the issuer that affect the market value of the security. Consequently, credit ratings are used only as a preliminary indicator of investment quality.
B-18
Repurchase Agreements.
Repurchase agreements involve the purchase of securities subject to the
sellers agreement to repurchase them at a mutually agreed upon date and price. Each Fund may enter into repurchase agreements with eligible counter-parties which furnish collateral at least equal in value or market price to the amount of their
repurchase obligation. Repurchase agreements involving obligations other than U.S. Government Securities (such as foreign securities, commercial paper, corporate bonds, mortgage loans and equities) may be subject to special risks and may not have
the benefit of certain protections in the event of the counterpartys insolvency.
If the other party or seller defaults, a
Fund might suffer a loss to the extent that the proceeds from the sale of the underlying securities and other collateral held by the Fund are less than the repurchase price and the Funds costs associated with delay and enforcement of the
repurchase agreement. In addition, in the event of bankruptcy of the seller, a Fund could suffer additional losses if a court determines that the Funds interest in the collateral is not enforceable.
Certain Funds, together with other registered investment companies having advisory agreements with the Investment Adviser or any of its affiliates, may
transfer uninvested cash balances into a single joint account, the daily aggregate balance of which will be invested in one or more repurchase agreements.
Short Sales Against-the-Box.
The Funds may make short sales against-the-box. A short sale against-the-box means that at all times when a short position is open the Fund will own an equal
amount of securities sold short, or securities convertible into or exchangeable for, without payment of any further consideration, an equal amount of the securities of the same issuer as the securities sold short.
Preferred Stock, Warrants and Stock Purchase Rights.
Each Fund may invest in preferred stock, warrants and stock purchase rights (or
rights). Preferred stocks are securities that represent an ownership interest providing the holder with claims on the issuers earnings and assets before common stock owners but after bond owners. Unlike debt securities, the
obligations of an issuer of preferred stock, including dividend and other payment obligations, may not typically be accelerated by the holders of such preferred stock on the occurrence of an event of default or other non-compliance by the issuer of
the preferred stock.
Warrants and other rights are options to buy a stated number of shares of common stock at a specified price at any time
during the life of the warrant or right. The holders of warrants and rights have no voting rights, receive no dividends and have no rights with respect to the assets of the issuer.
B-19
Exhibit C
SHAREHOLDER GUIDE
HOW TO BUY SHARES
Shares
Offering
Shares of the Fund are continuously offered through the Distributor. In addition, certain Authorized
Institutions designated by the Fund may be authorized to accept, on behalf of the Fund, purchase and exchange orders and redemption requests placed by or on behalf of their customers, and if approved by the Fund, may designate other financial
intermediaries to accept such orders.
The Fund and the Distributor will have the sole right to accept orders to purchase
shares and reserve the right to reject any order in whole or in part.
How Can I Purchase Shares Of The Fund?
You may purchase shares of the Fund through certain Authorized Institutions. In order to make an initial investment in the Fund you must
furnish to your Authorized Institution the information in the account application.
The decision as to which class to
purchase depends on the amount you invest, the intended length of the investment and your personal situation. You should contact your Authorized Institution to discuss which share class option is right for you.
Note: Authorized Institutions may receive different compensation for selling different class shares.
To open an account, contact your Authorized Institution. Customers of certain Authorized Institutions will normally give their purchase
instructions to the Authorized Institution, and the Authorized Institution will, in turn, place purchase orders with Goldman Sachs. Authorized Institutions will set times by which purchase orders and payments must be received by them from their
customers.
For purchases by check, the Fund will not accept checks drawn on foreign banks, third party checks, temporary
checks, or cash or cash equivalents;
e.g.
, cashiers checks, official bank checks, money orders, travelers cheques or credit card checks. In limited situations involving the transfer of retirement assets, the Fund may accept
cashiers checks or official bank checks.
Class IR Shares are not sold directly to the public. Instead, Class IR Shares
generally are available only to Section 401(k), 403(b), 457, profit sharing, money purchase pension, tax-sheltered annuity, defined benefit pension, nonqualified deferred compensation plans and non-qualified pension plans or other employee
benefit plans (including health savings accounts) or SIMPLE plans that are sponsored by one or more employers (including governmental or church employers) or employee organizations (Employee Benefit Plans). Such an Employee Benefit Plan
must purchase Class IR Shares through a plan level or omnibus account. Class IR Shares may also be sold to accounts established under a fee-based program that is sponsored and maintained by an Authorized Institution that is approved by Goldman Sachs
(Eligible Fee-Based Program). Class IR Shares are not available to traditional and Roth Individual Retirement Accounts (IRAs), SEPs and SARSEPs; except that Class IR Shares are available to such accounts or plans to the
extent they are purchased through an Eligible Fee-Based Program.
Employee Benefit Plans generally may open an account and
purchase Class IR Shares through Authorized Institutions, financial planners, Employee Benefit Plan administrators and other financial intermediaries. Class IR Shares may not be available through certain Authorized Institutions. Additional
shares may be purchased through an Employee Benefit Plans administrator or record-keeper.
C-1
What Is My Minimum Investment In The Fund?
For each of your accounts investing in Class A or Class C Shares, the following investment minimums must be met:
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Initial
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Additional
*
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Regular Accounts
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$1,000
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$50
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Employee Benefit Plans
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No Minimum
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No Minimum
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Uniform Gift/Transfer to Minors Accounts (UGMA/UTMA)
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$250
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$50
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Individual Retirement Accounts and Coverdell ESAs
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$250
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$50
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Automatic Investment Plan Accounts
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$250
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$50
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*
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No minimum additional investment requirements are imposed with respect to investors trading through Authorized Institutions who aggregate shares in
omnibus or similar accounts (e.g., Employee Benefit Plan accounts, wrap program accounts or traditional brokerage house accounts). A maximum purchase limitation of $1,000,000 in the aggregate normally applies to purchases of Class C Shares across
all Goldman Sachs Funds.
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For Institutional Shares, the minimum initial investment is $1,000,000 for
individual or Institutional Investors, alone or in combination with other assets under the management of the Investment Adviser and its affiliates, except that no initial minimum will be imposed on (i) Employee Benefit Plans that hold their
Institutional Shares through plan level or omnibus accounts; or (ii) investment advisers investing for accounts for which they receive asset-based fees where the investment adviser or its Authorized Institution purchases Institutional Shares
through an omnibus account. For this purpose, Institutional Investors shall include wrap account sponsors (provided they have an agreement covering the arrangement with the Distributor), corporations, qualified non-profit
organizations, charitable trusts, foundations and endowments, state, county, city or any instrumentality, department, authority or agency thereof, and banks, trust companies or other depository institutions investing for their own account or on
behalf of their clients.
No minimum amount is required for initial purchases in Class IR Shares or additional investments in
Institutional or Class IR Shares.
The minimum investment requirement for Class A, Class C and Institutional Shares may
be waived: (i) Goldman Sachs, its affiliates (including Goldman Sachs Trust (the Trust)) or their respective Trustees, officers, partners, directors or employees (including retired employees and former partners), as well as certain
individuals related to such investors, including spouses or domestic partners, minor children including those of their domestic partners, other family members residing in the same household, and/or financial dependents, provided that all of the
above are designated as such with an Authorized Institution or the Portfolios Transfer Agent; (ii) advisory clients of Goldman Sachs Private Wealth Management and accounts for which The Goldman Sachs Trust Company, N.A. acts in a
fiduciary capacity (i.e., as agent or trustee); (iii) certain mutual fund wrap programs at the discretion of the Trusts officers; and (iv) other investors at the discretion of the Trusts officers. No minimum amount
is required for additional investments in such accounts.
What Should I Know When I Purchase Shares Through An Authorized Institution?
If shares of the Fund are held in an account maintained and serviced by your Authorized Institution, all
recordkeeping, transaction processing and payments of distributions relating to your account will be performed by your Authorized Institution, and not by the Fund and its Transfer Agent. Since the Fund will have no record of your transactions, you
should contact your Authorized Institution to purchase, redeem or exchange shares, to make changes in or give instructions concerning your account or to obtain information about your account. The transfer of shares from an account with one
Authorized Institution to an account with another Authorized Institution involves special procedures and may require you to obtain historical purchase information about the
C-2
shares in the account from your Authorized Institution. If your Authorized Institutions relationship with Goldman Sachs is terminated, and you do not transfer your account to another
Authorized Institution, the Trust reserves the right to redeem your shares. The Trust will not be responsible for any loss in an investors account or tax liability resulting from a redemption.
Certain Authorized Institutions may be authorized to accept, on behalf of the Trust, purchase, redemption and exchange orders placed by
or on behalf of their customers, and if approved by the Trust, to designate other financial intermediaries to accept such orders. In these cases:
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The Fund will be deemed to have received an order that is in proper form when the order is accepted by an Authorized Institution on a business day, and
the order will be priced at the Funds NAV per share (adjusted for any applicable sales charge) next determined after such acceptance.
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Authorized Institutions are responsible for transmitting accepted orders to the Fund within the time period agreed upon by them.
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You should contact your Authorized Institution to learn whether it is authorized to accept orders for the
Trust.
Authorized Institutions that invest in shares on behalf of their customers may charge fees directly to their customer
accounts in connection with their investments. You should contact your Authorized Institution for information regarding such charges, as these fees, if any, may affect the return such customers realize with respect to their investments.
The Investment Adviser, Distributor and/or their affiliates may make payments or provide services to Authorized Institutions to promote
the sale, distribution and/or servicing of shares of the Fund and other Goldman Sachs Funds. These payments are made out of the Investment Advisers, Distributors and/or their affiliates own assets, and are not an additional charge
to the Fund. The payments are in addition to the distribution and service fees, service fees and shareholder administration fees and sales charges described in this Prospectus. Such payments are intended to compensate Authorized Institutions for,
among other things: marketing shares of the Fund and other Goldman Sachs Funds, which may consist of payments relating to the Funds inclusion on preferred or recommended fund lists or in certain sales programs sponsored by the Authorized
Institutions; access to the Authorized Institutions registered representatives or salespersons, including at conferences and other meetings; assistance in training and education of personnel; marketing support; and/or other specified services
intended to assist in the distribution and marketing of the Fund and other Goldman Sachs Funds. The payments may also, to the extent permitted by applicable regulations, contribute to various non-cash and cash incentive arrangements to promote the
sale of shares, as well as sponsor various educational programs, sales contests and/or promotions. The payments by the Investment Adviser, Distributor and/or their affiliates which are in addition to the fees paid for these services by the Fund, may
also compensate Authorized Institutions for sub-accounting, sub-transfer agency, administrative and/or shareholder processing services. These additional payments may exceed amounts earned on these assets by the Investment Adviser, Distributor and/or
their affiliates for the performance of these or similar services. The amount of these additional payments is normally not expected to exceed 0.50% (annualized) of the amount sold or invested through the Authorized Institutions. In addition, certain
Authorized Institutions may have access to certain services from the Investment Adviser, Distributor and/or their affiliates, including research reports and economic analysis, and portfolio analysis tools. In certain cases, the Authorized
Institution may not pay for these services. Please refer to the Payments to Intermediaries section of the SAI for more information about these payments and services.
The payments made by the Investment Adviser, the Distributor and/or their affiliates and the services provided by an Authorized
Institution may differ for different Authorized Institutions. The presence of these payments, receipt of these services and the basis on which an Authorized Institution compensates its registered representatives or salespersons may create an
incentive for a particular Authorized Institution, registered representative or salesperson to highlight, feature or recommend the Fund based, at least in part, on the level of
C-3
compensation paid. You should contact your Authorized Institution for more information about the payments it receives and any potential conflicts of interest.
What Else Should I Know About Share Purchases?
The Trust reserves the right to:
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Refuse to open an account or require an Authorized Institution to refuse to open an account if you fail to (i) provide a Social Security Number or
other taxpayer identification number; or (ii) certify that such number is correct (if required to do so under applicable law).
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Reject or restrict any purchase or exchange order by a particular purchaser (or group of related purchasers) for any reason in its discretion. Without
limiting the foregoing, the Trust may reject or restrict purchase and exchange orders by a particular purchaser (or group of related purchasers) when a pattern of frequent purchases, sales or exchanges of shares of the Fund is evident, or if
purchases, sales or exchanges are, or a subsequent redemption might be, of a size that would disrupt the management of the Fund.
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Close the Fund to new investors from time to time and reopen the Fund whenever it is deemed appropriate by the Investment Adviser.
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Provide for, modify or waive the minimum investment requirements.
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Modify the manner in which shares are offered.
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Modify the sales charge rate applicable to future purchases of shares.
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Shares of the Fund are only registered for sale in the United States and certain of its territories. Generally, shares of the Fund will
only be offered or sold to U.S. persons and offerings or other solicitation activities will be conducted within the United States, in accordance with the rules and regulations of the Securities Act of 1933, as amended.
The Fund may allow you to purchase shares with securities instead of cash if consistent with the Funds investment policies and
operations and if approved by the Funds Investment Adviser.
Notwithstanding the foregoing, the Trust and Goldman Sachs
reserve the right to reject or restrict purchase or exchange requests from any investor. The Trust and Goldman Sachs will not be liable for any loss resulting from rejected purchase or exchange orders.
Please be advised that abandoned or unclaimed property laws for certain states (to which your account may be subject) require financial
organizations to transfer (escheat) unclaimed or lost property (including shares of the Fund) to the appropriate state if no activity occurs in an account for a period of time specified by state law.
Customer Identification Program.
Federal law requires the Fund to obtain, verify and record identifying information for
certain investors, which will be reviewed solely for customer identification purposes, which may include the name, residential or business street address, date of birth (for an individual), Social Security Number or taxpayer identification number or
other information, for each investor who opens an account directly with the Fund. Applications without the required information may not be accepted by the Fund. Throughout the life of your account, the Fund may request updated identifying
information in accordance with its Customer Identification Program. After accepting an application, to the extent permitted by applicable law or its Customer Identification Program, the Fund reserves the right to: (i) place limits on
transactions in any account until the identity of the investor is verified; (ii) refuse an investment in the Fund; or (iii) involuntarily redeem an investors shares and close an account in the event that the Fund is unable to verify
an investors identity or obtain all required information. The Fund and its agents will not be responsible for any loss or tax liability in an investors account resulting from the investors delay in providing all required
information or from closing an account and redeeming an investors shares pursuant to the customer identification program.
C-4
How Are Shares Priced?
The price you pay when you buy shares is the Funds next determined NAV for a share class (as adjusted for any applicable sales
charge) after the Fund receives your order in proper form. The price you receive when you sell shares is the Funds next determined NAV for a share class with the redemption proceeds reduced by any applicable charges (e.g., CDSCs) after the
Fund receives your order in proper form. Each class calculates its NAV as follows:
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NAV =
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(Value of Assets of the Class) (Liabilities of the
Class)
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Number of Outstanding Shares of the Class
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The Funds investments for which market quotations are readily available are valued at market value
on the basis of quotations furnished by a pricing service or provided by securities dealers. If accurate quotations are not readily available, or if the Investment Adviser believes that such quotations do not accurately reflect fair value, the fair
value of the Funds investments may be determined in good faith under valuation procedures established by the Board.
Cases where there is no clear indication of the value of the Funds investments include, among others, situations where a security
or other asset or liability does not have a price source.
To the extent the Fund invests in foreign equity securities,
fair value prices are provided by an independent fair value service in accordance with the fair value procedures approved by the Board. Fair value prices are used because many foreign markets operate at times that do not coincide with
those of the major U.S. markets. Events that could affect the values of foreign portfolio holdings may occur between the close of the foreign market and the time of determining the NAV, and would not otherwise be reflected in the NAV. If the
independent fair value service does not provide a fair value price for a particular security, or if the price provided does not meet the established criteria for the Underlying Fund, the Underlying Fund will price that security at the most recent
closing price for that security on its principal exchange.
In addition, the Investment Adviser, consistent with its
procedures and applicable regulatory guidance, may (but need not) determine to make an adjustment to the previous closing prices of either domestic or foreign securities in light of significant events, to reflect what it believes to be the fair
value of the securities at the time of determining the Funds NAV. Significant events that could affect a large number of securities in a particular market may include, but are not limited to: situations relating to one or more single issuers
in a market sector; significant fluctuations in U.S. or foreign markets; market dislocations; market disruptions or unscheduled market closings; equipment failures; natural or man made disasters or acts of God; armed conflicts; governmental actions
or other developments; as well as the same or similar events which may affect specific issuers or the securities markets even though not tied directly to the securities markets. Other significant events that could relate to a single issuer may
include, but are not limited to: corporate actions such as reorganizations, mergers and buy-outs; corporate announcements, including those relating to earnings, products and regulatory news; significant litigation; ratings downgrades; bankruptcies;
and trading suspensions.
One effect of using an independent fair value service and fair valuation may be to reduce stale
pricing arbitrage opportunities presented by the pricing of Fund shares. However, it involves the risk that the values used by the Fund to price its investments may be different from those used by other investment companies and investors to price
the same investments.
Investments in other open-end registered investment companies (if any) excluding investments in ETFs,
are valued based on the NAV of those open-end registered investment companies (which may use fair value pricing as discussed in their prospectuses).
C-5
Please note the following with respect to the price at which your transactions are
processed:
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NAV per share of each share class is generally calculated by the accounting agent on each business day as of the close of regular trading on the New
York Stock Exchange (normally 4:00 p.m. Eastern time) or such other times as the New York Stock Exchange or NASDAQ market may officially close. Fund shares will generally not be priced on any day the New York Stock Exchange is closed.
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The Trust reserves the right to reprocess purchase (including dividend reinvestments), redemption and exchange transactions that were processed at a
NAV that is subsequently adjusted, and to recover amounts from (or distribute amounts to) shareholders accordingly based on the official closing NAV, as adjusted.
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The Trust reserves the right to advance the time by which purchase and redemption orders must be received for same business day credit as otherwise
permitted by the SEC.
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Consistent with industry practice, investment transactions not settling on the same
day are recorded and factored into the Funds NAV on the business day following trade date (T+1). The use of T+1 accounting generally does not, but may, result in a NAV that differs materially from the NAV that would result if all transactions
were reflected on their trade dates.
Note: The time at which transactions and shares are priced and the time by which
orders must be received may be changed in case of an emergency or if regular trading on the New York Stock Exchange is stopped at a time other than its regularly scheduled closing time. In the event the New York Stock Exchange does not open for
business, the Trust may, but is not required to, open one or more Funds for purchase, redemption and exchange transactions if the Federal Reserve wire payment system is open. To learn whether a Fund is open for business during this situation, please
call the appropriate phone number located on the back cover of this Prospectus.
Foreign securities may trade in their
local markets on days the Fund is closed. As a result, if the Fund holds foreign securities, its NAV may be impacted on days when investors may not purchase or redeem Fund shares.
COMMON QUESTIONS APPLICABLE TO THE PURCHASE OF CLASS A SHARES
What Is The Offering
Price Of Class A Shares?
The offering price of Class A Shares of the Fund is the next determined NAV
per share plus an initial sales charge paid to Goldman Sachs at the time of purchase of shares.
The sales charge varies depending upon the amount you purchase. In some cases, described below, the initial sales charge may be eliminated
altogether, and the offering price will be the NAV per share. The current sales charges and commissions paid to Authorized Institutions for Class A Shares of the Fund are as follows:
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Amount of Purchase
(including sales charge, if any)
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Sales Charge as
Percentage
of
Offering Price
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Sales Charge
as
Percentage of Net
Amount Invested
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Maximum Dealer
Allowance
as
Percentage of
Offering
Price
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Less than $50,000
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5.50
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%
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5.82
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%
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5.00
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%
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$50,000 up to (but less than) $100,000
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4.75
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4.99
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4.00
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$100,000 up to (but less than) $250,000
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3.75
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3.90
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3.00
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$250,000 up to (but less than) $500,000
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2.75
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2.83
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2.25
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$500,000 up to (but less than) $1 million
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2.00
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2.04
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1.75
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$1 million or more
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0.00
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**
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0.00
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**
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***
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*
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Dealers allowance may be changed periodically. During special promotions, the entire sales charge may be reallowed to Authorized Institutions. Authorized
Institutions to whom substantially the entire sales charge is reallowed may be deemed to be underwriters under the Securities Act of 1933 (Securities Act).
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C-6
**
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No sales charge is payable at the time of purchase of Class A Shares of $1 million or more, but a CDSC of 1% may be imposed in the event of certain redemptions
within 18 months.
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The Distributor may pay a one-time commission to Authorized Institutions who initiate or are responsible for purchases of $1 million or more of shares of the Fund equal
to 1.00% of the amount under $3 million, 0.50% of the next $2 million, and 0.25% thereafter. In instances where this one-time commission is not paid to a particular Authorized Institution (including Goldman Sachs Private Wealth
Management Unit), the CDSC on Class A Shares, generally, will be waived. The Distributor may also pay, with respect to all or a portion of the amount purchased, a commission in accordance with the foregoing schedule to Authorized Institutions
who initiate or are responsible for purchases by Employee Benefit Plans investing in the Fund which satisfy the criteria set forth below in When Are Class A Shares Not Subject to A Sales Load? or $1 million or more by certain
wrap accounts. Purchases by such plans will be made at NAV with no initial sales charge, but if shares are redeemed within 18 months, a CDSC of 1% may be imposed upon the plan, the plan sponsor or the third-party administrator. In
addition, Authorized Institutions will remit to the Distributor such payments received in connection with wrap accounts in the event that shares are redeemed within 18 months.
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You should note that the actual sales charge that appears in your mutual fund transaction confirmation may differ slightly from the rate
disclosed above in this Prospectus due to rounding calculations.
As indicated in the preceding chart, and as discussed
further below and in the section titled How Can The Sales Charge On Class A Shares Be Reduced?, you may, under certain circumstances, be entitled to pay reduced sales charges on your purchases of Class A Shares or have those
charges waived entirely. To take advantage of these discounts, your Authorized Institution must notify the Funds Transfer Agent at the time of your purchase order that a discount may apply to your current purchases. You may also be required to
provide appropriate documentation to receive these discounts, including:
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(i)
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Information or records regarding shares of the Fund or other Goldman Sachs Funds held in all accounts (
e.g.
, retirement accounts) of the shareholder at all
Authorized Institutions; and
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(ii)
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Information or records regarding shares of the Fund or other Goldman Sachs Funds held at any Authorized Institution by related parties of the shareholder, such as
members of the same family or household.
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What Else Do I Need To Know About Class A Shares CDSC?
Purchases of $1 million or more of Class A Shares will be made at NAV with no initial sales charge. However, if
you redeem shares within 18 months after the beginning of the month in which the purchase was made, a CDSC of 1% may be imposed. The CDSC may not be imposed if your Authorized Institution agrees with the Distributor to return all or an applicable
prorated portion of its commission to the Distributor. The CDSC is waived on redemptions in certain circumstances. See In What Situations May The CDSC On Class A, B Or C Shares Be Waived Or Reduced? below.
When Are Class A Shares Not Subject To A Sales Load?
Class A Shares of the Fund may be sold at NAV without payment of any sales charge to the following individuals and entities:
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Goldman Sachs, its affiliates or their respective officers, partners, directors or employees (including retired employees and former partners), any
partnership of which Goldman Sachs is a general partner, any Trustee or officer of the Trust and designated family members of any of these individuals;
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Qualified employee benefit plans of Goldman Sachs;
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Trustees or directors of investment companies for which Goldman Sachs or an affiliate acts as sponsor;
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Any employee or registered representative of any Authorized Institution or their respective spouses, children and parents;
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Banks, trust companies or other types of depository institutions;
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Any state, county or city, or any instrumentality, department, authority or agency thereof, which is prohibited by applicable investment laws from
paying a sales charge or commission in connection with the purchase of shares of a Fund;
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Employee Benefit Plans, where such Plans purchase Class A Shares through a plan level or omnibus account;
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Investors who purchase Class A Shares through an omnibus account sponsored by an Authorized Institution that has an agreement with the Distributor
covering such investors to offer Class A Shares without charging an initial sales charge;
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Insurance company separate accounts that make the Fund available as an underlying investment in certain group annuity contracts;
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Wrap accounts for the benefit of clients of broker-dealers, financial institutions or financial planners, provided they have entered into
an agreement with GSAM specifying aggregate minimums and certain operating policies and standards;
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Investment advisers investing for accounts for which they receive asset-based fees;
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Accounts over which GSAM or its advisory affiliates have investment discretion;
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Shareholders who roll over distributions from any tax-qualified Employee Benefit Plan or tax-sheltered annuity to an IRA which invests in the Goldman
Sachs Funds if the tax-qualified Employee Benefit Plan or tax-sheltered annuity receives administrative services provided by certain third party administrators that have entered into a special service arrangement with Goldman Sachs relating to such
plan or annuity;
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State sponsored 529 college savings plans; or
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Investors who qualify under other exemptions that are stated from time to time in the SAI.
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You must certify eligibility for any of the above exemptions on your account application and notify your Authorized Institution and
the Fund if you no longer are eligible for the exemption.
The fund will grant you an exemption subject to confirmation of
your eligibility by your authorized institution. you may be charged a fee by your authorized institution.
How Can The Sales Charge On
Class A Shares Be Reduced?
Right of Accumulation:
When buying Class A Shares in Goldman Sachs
Funds, your current aggregate investment determines the initial sales load you pay. You may qualify for reduced sales charges when the current market value of holdings across Class A, Class B and/or Class C Shares, plus new purchases, reaches
$50,000 or more. Class A, Class B and/or Class C Shares of any of the Goldman Sachs Funds may be combined under the Right of Accumulation. If a Funds Transfer Agent is properly notified, the Amount of Purchase in the chart in
the section What Is The Offering Price of Class A Shares? will be deemed to include all Class A, Class B and/or Class C Shares of the Goldman Sachs Funds that were held at the time of purchase by any of the following persons:
(i) you, your spouse, your parents and your children; and (ii) any trustee, guardian or other fiduciary of a single trust estate or a single fiduciary account. This includes, for example, any Class A, Class B and/or Class C Shares
held at an Authorized Institution other than the one handling your current purchase. For purposes of applying the Right of Accumulation, shares of the Fund and any other Goldman Sachs Funds purchased by an existing client of Goldman Sachs Private
Wealth Management or GS Ayco Holding LLC will be combined with Class A, Class B and/or Class C Shares and other assets held by all other Goldman Sachs Private Wealth
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Management accounts or accounts of GS Ayco Holding LLC, respectively. In addition, under some circumstances, Class A, Class B and/or Class C Shares of the Fund and Class A, Class B
and/or Class C Shares of any other Goldman Sachs Fund purchased by partners, directors, officers or employees of certain organizations may be combined for the purpose of determining whether a purchase will qualify for the Right of Accumulation and,
if qualifying, the applicable sales charge level. To qualify for a reduced sales load, you or your Authorized Institution must notify the Funds Transfer Agent at the time of investment that a quantity discount is applicable. If you do not
notify your Authorized Institution at the time of your current purchase or a future purchase that you qualify for a quantity discount, you may not receive the benefit of a reduced sales charge that might otherwise apply. Use of this option is
subject to a check of appropriate records.
In some circumstances, other Class A, Class B and/or Class C Shares may be
aggregated with your current purchase under the Right of Accumulation as described in the SAI. For purposes of determining the Amount of Purchase, all Class A, Class B and/or Class C Shares currently held will be valued at their
current market value.
Statement of Intention
: You may obtain a reduced sales charge by means of a written
Statement of Intention which expresses your non-binding commitment to invest (not counting reinvestments of dividends and distributions) in the aggregate $50,000 or more within a period of 13 months in Class A Shares of one or more of the
Goldman Sachs Funds. Any investments you make during the period will receive the discounted sales load based on the full amount of your investment commitment. Purchases made during the previous 90 days may be included; however, capital appreciation
does not apply toward these combined purchases. If the investment commitment of the Statement of Intention is not met prior to the expiration of the 13-month period, the entire amount will be subject to the higher applicable sales charge unless the
failure to meet the investment commitment is due to the death of the investor. By selecting the Statement of Intention, you authorize the Transfer Agent to escrow and redeem Class A Shares in your account to pay this additional charge if the
Statement of Intention is not met. You must, however, inform the Transfer Agent (either directly or through your Authorized Institution) that the Statement of Intention is in effect each time shares are purchased. Each purchase will be made at the
public offering price applicable to a single transaction of the dollar amount specified on the Statement of Intention. The SAI has more information about the Statement of Intention, which you should read carefully.
A COMMON QUESTION APPLICABLE TO THE PURCHASE OF CLASS C SHARES
What Is The Offering Price of Class C Shares?
You may purchase
Class C Shares of the Funds at the next determined NAV without paying an initial sales charge. However, if you redeem Class C Shares within 12 months of purchase, a CDSC of 1% will normally be deducted from the redemption proceeds. In connection
with purchases by Employee Benefit Plans, where Class C Shares are redeemed within 12 months of purchase, a CDSC of 1% may be imposed upon the plan sponsor or third party administrator. Class C Shares acquired in exchange for shares subject to a
CDSC will be subject to the CDSC, if any, of the shares originally held. With respect to such shares held by Employee Benefit Plans, the CDSC may be imposed on the plan sponsor or third party administrator.
Proceeds from the CDSC are payable to the Distributor and may be used in whole or in part to defray the Distributors expenses
related to providing distribution-related services to the Funds in connection with the sale of Class C Shares, including the payment of compensation to Authorized Institutions. A commission equal to 1% of the amount invested is normally paid by the
Distributor to Authorized Institutions.
C-9
COMMON QUESTIONS APPLICABLE TO THE PURCHASE OF CLASS A AND C SHARES
What Else Do I Need To Know About The CDSC On Class A or C Shares?
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The CDSC is based on the lesser of the NAV of the shares at the time of redemption or the original offering price (which is the original NAV).
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No CDSC is charged on shares acquired from reinvested dividends or capital gains distributions.
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No CDSC is charged on the per share appreciation of your account over the initial purchase price.
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When counting the number of months since a purchase of Class A or Class C Shares was made, all purchases made during a month will be combined and
considered to have been made on the first day of that month.
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To keep your CDSC as low as possible, each time you place a request to sell shares, the Fund will first sell any shares in your account that do not
carry a CDSC and then the shares in your account that have been held the longest.
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In What Situations May The CDSC On
Class A or C Shares Be Waived Or Reduced?
The CDSC on Class A or Class C shares that are subject to a CDSC
may be waived or reduced if the redemption relates to:
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Mandatory retirement distributions or loans to participants or beneficiaries from Employee Benefit Plans;
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Hardship withdrawals by a participant or beneficiary in an Employee Benefit Plan;
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The separation from service by a participant or beneficiary in an Employee Benefit Plan;
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Excess contributions distributed from an Employee Benefit Plan;
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Distributions from a qualified Employee Benefit Plan invested in the Goldman Sachs Funds which are being rolled over into an IRA in the same share
class of a Goldman Sachs Fund;
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The death or disability (as defined in Section 72(m)(7) of the Code) of a shareholder, participant or beneficiary in an Employee Benefit Plan;
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Satisfying the minimum distribution requirements of the Code;
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Establishing substantially equal periodic payments as described under Section 72(t)(2) of the Code;
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Redemption proceeds which are to be reinvested in accounts or non-registered products over which GSAM or its advisory affiliates have investment
discretion;
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A systematic withdrawal plan. The Fund reserves the right to limit such redemptions, on an annual basis, to 12% of the value of your Class C Shares and
10% of the value of your Class A Shares;
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Redemptions or exchanges of Fund shares held through an Employee Benefit Plan using the Fund as part of a qualified default investment alternative or
QDIA; or
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Other redemptions, at the discretion of the Trusts officers, relating to shares purchased through Employee Benefit Plans.
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HOW TO SELL SHARES
How Can I Sell Shares Of The Fund?
Generally, Shares may be sold
(redeemed) only through your Authorized Institution. Customers of an Authorized Institution will normally give their redemption instructions to the Authorized Institution, and the
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Authorized Institution will, in turn, place redemption orders with the Fund. Redemptions may be requested by electronic trading platform (through your Authorized Institution), in writing or by
telephone (unless the Authorized Institution opts out of the telephone redemption privilege on the account application).
The Fund will generally redeem its Shares upon request on any business day the Fund is open at the NAV next determined after
receipt of such request in proper form, subject to any applicable CDSC.
You should contact your Authorized Institution to discuss redemptions and redemption proceeds. Certain Authorized Institutions are authorized to accept redemption requests
on behalf of the Fund as described under How to Buy SharesShares Offering. The Fund may transfer redemption proceeds to an account with your Authorized Institution. In the alternative, your Authorized Institution may request that
redemption proceeds be sent to you by check or wire (if the wire instructions are designated in the current records of the Transfer Agent).
An Authorized Institution may request redemptions by electronic trading platform, in writing or by telephone (unless the Authorized Institution opts out of the telephone redemption privilege on the
account application).
Generally, any redemption request that requires money to go to an account or address other than that
designated in the current records of the Transfer Agent must be in writing and signed by an authorized person with a Medallion signature guarantee. The written request may be confirmed by telephone with both the requesting party and the designated
bank to verify instructions. Other restrictions may apply in these situations.
When Do I Need A Medallion Signature Guarantee To Redeem
Shares?
A Medallion signature guarantee may be required if:
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A request is made in writing to redeem Class A, Class C and Class IR Shares in an amount over $50,000 via check;
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You would like the redemption proceeds sent to an address that is not your address of record; or
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You would like redemption proceeds sent to a domestic bank account that is not designated in the current records of the Transfer Agent.
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A Medallion signature guarantee must be obtained from a bank, brokerage firm or other financial
intermediary that is a member of an approved Medallion Guarantee Program or that is otherwise approved by the Trust. A notary public cannot provide a Medallion signature guarantee. Additional documentation may be required.
What Do I Need To Know About Telephone Redemption Requests?
The Trust, the Distributor and the Transfer Agent will not be liable for any loss or tax liability you may incur in the event that the Trust accepts unauthorized telephone redemption requests that the
Trust reasonably believes to be genuine. The Trust may accept telephone redemption instructions from any person identifying himself or herself as the owner of an account or the owners registered representative where the owner has not declined
in writing to use this service. Authorized Institutions may submit redemption requests by telephone. Thus, you risk possible losses if a telephone redemption is not authorized by you.
In an effort to prevent unauthorized or fraudulent redemption and exchange requests by telephone, Goldman Sachs and Boston Financial Data
Services, Inc. (BFDS) each employ reasonable procedures specified by the Trust to confirm that such instructions are genuine. If reasonable procedures are not employed, the Trust may be liable for any loss due to unauthorized or
fraudulent transactions. The following general policies are currently in effect:
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Telephone requests are recorded.
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C-11
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Proceeds of telephone redemption requests will be sent to your address of record or authorized account designated in the current records of the
Transfer Agent (unless you provide written instructions and a Medallion signature guarantee indicating another address or account).
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For the 30-day period following a change of address, telephone redemptions will only be filled by a wire transfer to the authorized account designated
in the current records of the Transfer Agent (see immediately preceding bullet point). In order to receive the redemption by check during this time period, the redemption request must be in the form of a written, Medallion signature guaranteed
letter.
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The telephone redemption option does not apply to shares held in an account maintained and serviced by your Authorized Institution. If your shares are
held in an account with an Authorized Institution, you should contact your registered representative of record, who may make telephone redemptions on your behalf.
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The telephone redemption option may be modified or terminated at any time without prior notice.
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The Fund may redeem via check up to $50,000 in Class A, Class C and Class IR Shares requested via telephone.
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Note: It may be difficult to make telephone redemptions in times of unusual economic or market conditions.
How Are Redemption Proceeds Paid?
By Wire:
You may arrange for your redemption proceeds to be paid as federal funds to an account with your Authorized Institution or to a domestic bank account designated in the current
records of the Transfer Agent. In addition, redemption proceeds may be transmitted through an electronic trading platform to an account with your Authorized Institution. The following general policies govern wiring redemption proceeds:
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Redemption proceeds will normally be paid on the next business day in federal funds, but may be paid up to three business days following receipt of a
properly executed wire transfer redemption request.
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Although redemption proceeds will normally be paid as described above, under certain circumstances, redemption requests or payments may be postponed or
suspended as permitted under Section 22(e) of the 1940 Act. Generally, under that section, redemption requests or payments may be postponed or suspended if (i) the New York Stock Exchange is closed for trading or trading is restricted;
(ii) an emergency exists which makes the disposal of securities owned by the Fund or the fair determination of the value of the Funds net assets not reasonably practicable; or (iii) the SEC, by order or regulation, permits the
suspension of the right of redemption.
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If you are selling shares you recently paid for by check or purchased by Automated Clearing House (ACH), the Fund will pay you when your
check or ACH has cleared, which may take up to 15 days.
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If the Federal Reserve Bank is closed on the day that the redemption proceeds would ordinarily be wired, wiring the redemption proceeds may be delayed
until the Federal Reserve Bank reopens.
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To change the bank wiring instructions designated in the current records of the Transfer Agent, you must send written instructions signed by an
authorized person designated in the current records of the Transfer Agent. A Medallion signature guarantee may be required if you are requesting a redemption in conjunction with the change.
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None of the Trust, the Investment Adviser or Goldman Sachs assumes any responsibility for the performance of your bank or any other financial
intermediary in the transfer process. If a problem with such performance arises, you should deal directly with your bank or such financial intermediary.
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By Check:
You may elect to receive redemption proceeds by check. Redemption proceeds paid by check will normally be mailed to the address of record within three business days of receipt of a
properly executed redemption request. If you are selling shares you recently paid for by check or ACH, the Fund will pay you when your check or ACH has cleared, which may take up to 15 days.
C-12
What Else Do I Need To Know About Redemptions?
The following generally applies to redemption requests:
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Additional documentation may be required when deemed appropriate by the Transfer Agent. A redemption request will not be in proper form until such
additional documentation has been received.
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Authorized Institutions are responsible for the timely transmittal of redemption requests by their customers to the Transfer Agent. In order to
facilitate the timely transmittal of redemption requests, Authorized Institutions may set times by which they must receive redemption requests. Authorized Institutions may also require additional documentation from you.
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The Trust reserves the right to:
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Redeem your shares in the event your Authorized Institutions relationship with Goldman Sachs is terminated, and you do not transfer your account
to another Authorized Institution with a relationship with Goldman Sachs or in the event that the Fund is no longer an option in your Employee Benefit Plan or no longer available through Eligible Fee-Based Program.
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Redeem your shares if your account balance is below the required Fund minimum. The Fund will not redeem your shares on this basis if the value of your
account falls below the minimum account balance solely as a result of market conditions. The Fund will give you 60 days prior written notice to allow you to purchase sufficient additional shares of the Fund in order to avoid such redemption.
Different rules may apply to investors who have established brokerage accounts with Goldman Sachs in accordance with the terms and conditions of their account agreements.
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Subject to applicable law, redeem your shares in other circumstances determined by the Board to be in the best interest of the Trust.
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Pay redemptions by a distribution in-kind of securities (instead of cash). If you receive redemption proceeds in-kind, you should expect to incur
transaction costs upon the disposition of those securities.
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Reinvest any amounts (e.g., dividends, distributions or redemption proceeds) which you have elected to receive by check should your check be returned
to the Fund as undeliverable or remain uncashed for more than 180 days. Amounts will be reinvested in additional shares at NAV per share on the day the check is reinvested. When reinvested, those amounts are subject to the risk of loss like any Fund
investment. This provision may not apply to certain retirement or qualified accounts or to a closed account. Your participation in a systematic withdrawal program may be terminated if your checks remain uncashed. No interest will accrue on amounts
represented by uncashed checks.
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Charge an additional fee in the event a redemption is made via wire transfer.
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None of the Trust, the Investment Adviser or Goldman Sachs will be responsible for any loss in an investors account or tax
liability resulting from an involuntary redemption.
Can I Reinvest Redemption Proceeds In The Same Or Another Goldman Sachs Fund?
You may redeem shares of a Fund and reinvest a portion or all of the redemption proceeds (plus any additional amounts
needed to round off purchases to the nearest full share) at NAV. To be eligible for this privilege, you must have held the shares you want to redeem for at least 30 days and you must reinvest the share proceeds within 90 days after you redeem. You
should obtain and read the applicable prospectus before investing in any other Goldman Sachs Fund. You may reinvest redemption proceeds as follows:
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Class A SharesClass A Shares of the same Fund or another Goldman Sachs Fund.
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Class C SharesClass C Shares of the same Fund or another Goldman Sachs Fund.
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C-13
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If you pay a CDSC upon redemption of Class A or Class C Shares and then reinvest in Class A or Class C Shares of another Goldman Sachs Fund
as described above, your account will be credited with the amount of the CDSC you paid. The reinvested shares will, however, continue to be subject to a CDSC. The holding period of the shares acquired through reinvestment will include the holding
period of the redeemed shares for purposes of computing the CDSC payable upon a subsequent redemption. For Class B Shares, you may reinvest the redemption proceeds in Class A Shares at NAV but the amount of the CDSC paid upon redemption of the
Class B Shares will not be credited to your account.
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The reinvestment privilege may be exercised at any time in connection with transactions in which the proceeds are reinvested at NAV in a tax-sheltered
Employee Benefit Plan. In other cases, the reinvestment privilege may be exercised once per year upon receipt of a written request.
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You may be subject to tax as a result of a redemption. You should consult your tax adviser concerning the tax consequences of a redemption and
reinvestment.
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Can I Exchange My Investment From One Goldman Sachs Fund To Another Goldman Sachs Fund?
You may exchange shares of a Goldman Sachs Fund at NAV without the imposition of an initial sales charge or CDSC, if
applicable, at the time of exchange for certain shares of another Goldman Sachs Fund. Redemption of shares (including by exchange) of certain Goldman Sachs Funds offered in other prospectuses may, however, be subject to a redemption fee for shares
that are held for either 30 or 60 days or less, subject to certain exceptions as described in those Goldman Sachs Funds prospectuses. The exchange privilege may be materially modified or withdrawn at any time upon 60 days written notice. You
should contact your Authorized Institution to arrange for exchanges of shares of the Fund for shares of another Goldman Sachs Fund.
You should keep in mind the following factors when making or considering an exchange:
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You should obtain and carefully read the prospectus of the Goldman Sachs Fund you are acquiring before making an exchange. You should be aware that not
all Goldman Sachs Funds may offer all share classes.
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Currently, the Fund does not impose any charge for exchanges, although the Fund may impose a charge in the future.
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The exchanged shares of the new Goldman Sachs Fund may later be exchanged for shares of the same class of the original Fund held at the next determined
NAV without the imposition of an initial sales charge or CDSC (but subject to any applicable redemption fee). However, if additional shares of the new Goldman Sachs Fund were purchased after the initial exchange, and that Funds shares do not
impose a sales charge or CDSC, then the applicable sales charge or CDSC of the original Funds shares will be imposed upon the exchange of those shares.
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When you exchange shares subject to a CDSC, no CDSC will be charged at that time. However, for purposes of determining the CDSC applicable to those
shares, the length of time you have owned the shares will be measured from the date you acquired the original shares subject to a CDSC, and the amount and terms of the CDSC will be those applicable to the original shares and will not be affected by
a subsequent exchange.
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Eligible investors may exchange certain classes of shares for another class of shares of the same Fund. For further information, contact your
Authorized Institution.
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All exchanges which represent an initial investment in a Goldman Sachs Fund must satisfy the minimum initial investment requirement of that Fund. This
requirement may be waived at the discretion of the Trust. Exchanges into a Fund need not meet the traditional minimum investment requirements for that Fund if the entire balance of the original Fund account is exchanged.
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Exchanges are available only in states where exchanges may be legally made.
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It may be difficult to make telephone exchanges in times of unusual economic or market conditions.
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C-14
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Goldman Sachs and BFDS may use reasonable procedures described under What Do I Need To Know About Telephone Redemption Requests? in an
effort to prevent unauthorized or fraudulent telephone exchange requests.
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Normally, a telephone exchange will be made only to an identically registered account.
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Exchanges into Goldman Sachs Funds or certain share classes of Goldman Sachs Funds that are closed to new investors may be restricted.
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Exchanges into the Fund from another Goldman Sachs Fund may be subject to any redemption fee imposed by the other Goldman Sachs Fund.
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Exchanges into the Fund from another Goldman Sachs Fund received by the close of regular trading on the New York Stock Exchange will normally begin to
accrue dividends on the next business day.
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For federal income tax purposes, an exchange from one Goldman
Sachs Fund to another is treated as a redemption of the shares surrendered in the exchange, on which you may be subject to tax, followed by a purchase of shares received in the exchange. Exchanges within Employee Benefit Plan accounts will not
result in capital gains or loss for federal or state income tax purposes. You should consult your tax adviser concerning the tax consequences of an exchange.
SHAREHOLDER SERVICES
Can I Arrange To Have Automatic Investments Made On A Regular
Basis?
You may be able to make automatic investments in Class A and Class C Shares through your bank via ACH
transfer or via bank draft each month. The minimum dollar amount for this service is $250 for the initial investment and $50 per month for additional investments. Forms for this option are available at www.gsamfunds.com and from your Authorized
Institution, or you may check the appropriate box on the Account Application.
Can My Distributions From The Fund Be Invested In Other
Goldman Sachs Funds?
You may elect to cross-reinvest distributions paid by a Goldman Sachs Fund in shares of the same
class of other Goldman Sachs Funds.
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Shares will be purchased at NAV.
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You may elect to cross-reinvest into an identically registered account or a similarly registered account provided that at least one name on the account is registered
identically.
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You cannot make cross-reinvestments into a Goldman Sachs Fund unless that Funds minimum initial investment requirement is met.
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You should obtain and read the prospectus of the Goldman Sachs Fund into which distributions are invested.
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Can I Arrange To Have Automatic Exchanges Made On A Regular Basis?
You may elect to exchange automatically a specified dollar amount of Class A or Class C Shares of the Fund for shares of the same class of other Goldman Sachs funds.
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Shares will be purchased at NAV if a sales charge had been imposed on the initial purchase.
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You may elect to exchange into an identically registered account or a similarly registered account provided that at least one name on the account is registered
identically.
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C-15
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Shares subject to a CDSC acquired under this program may be subject to a CDSC at the time of redemption from the Goldman Sachs Fund into which the exchange is made
depending upon the date and value of your original purchase.
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Automatic exchanges are made monthly on the 15th day of each month or the first business day thereafter.
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Minimum dollar amount: $50 per month.
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You cannot make automatic exchanges into a Goldman Sachs Fund unless that Funds minimum initial investment requirement is met.
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You should obtain and read the prospectus of the Goldman Sachs Fund into which automatic exchanges are made.
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An exchange is considered a redemption and a purchase and therefore may be a taxable transaction.
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Can I Have Systematic Withdrawals Made On A Regular Basis?
You may redeem from your Class A or Class C Shares account systematically via check or ACH transfer in any amount of $50 or more.
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It is normally undesirable to maintain a systematic withdrawal plan at the same time that you are purchasing additional Class A or Class C Shares
because of the sales charges that are imposed on certain purchases of Class A Shares and because of the charges that are imposed on certain purchases of Class A Shares and because of the CDSCs that are imposed on certain redemptions of
Class A and Class C Shares.
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Checks are normally mailed within two business days after your selected systematic withdrawal date of either the 15th or 25th of the month. ACH
payments may take up to three business days to post to your account after your selected systematic withdrawal date between, and including, the 3rd and 26th of the month.
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Each systematic withdrawal is a redemption and therefore may be a taxable transaction.
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The CDSC applicable to Class A or Class C Shares redeemed under the systematic withdrawal plan may be waived. The Fund reserves the
right to limit such redemptions, on an annual basis, to 12% of the value of your Class C Shares and 10% of the value of your Class A Shares.
What Types Of Reports Will I Be Sent Regarding My Investment?
Authorized Institutions are responsible for providing any communication from the Fund to shareholders, including but not limited to,
prospectuses, prospectus supplements, proxy materials and notices regarding the source of dividend payments under Section 19 of the 1940 Act. They may charge additional fees not described in this Prospectus to their customers for such services.
You will be provided with a printed confirmation of each transaction in your account and a quarterly account statement if you
invest in Class A, Class C or Class IR Shares and a monthly account statement if you invest in Institutional Shares. If your account is held through your Authorized Institution, you will receive this information from your Authorized
Institution.
You will also receive an annual shareholder report containing audited financial statements and a semi-annual
shareholder report. If you have consented to the delivery of a single copy of shareholder reports, prospectuses and other information to all shareholders who share the same mailing address with your account, you may revoke your consent at any time
by contacting your Authorized Institution or Goldman Sachs Funds at the appropriate phone number or address found on the back cover of this Prospectus. If your account is held through an Authorized Institution, please contact the Authorized
Institution to revoke your consent. The Fund will begin sending individual copies to you within 30 days after receipt of your revocation. The Fund does not generally provide sub-accounting services.
C-16
The types of reports Class IR shareholders will receive depend on the related arrangements
in effect with respect to such shareholders Employee Benefit Plan or Eligible Fee-Based Program.
DISTRIBUTION AND SERVICE FEES
What Are The Different Distribution And/Or Service Fees Paid By The Funds Shares?
The Trust has adopted distribution and service plans (each a Plan) under which Class A and Class C Shares bear
distribution and/or service fees paid to Goldman Sachs and Authorized Institutions. These Authorized Institutions seek distribution and/or servicing fee revenues to, among other things, offset the cost of servicing small and medium sized plan
investors and providing information about the Fund. If the fees received by Goldman Sachs pursuant to the Plans exceed its expenses, Goldman Sachs may realize a profit from these arrangements. Goldman Sachs generally receives and pays the
distribution and service fees on a quarterly basis.
Under the Plans, Goldman Sachs is entitled to a monthly fee from the Fund
for distribution services equal, on an annual basis, to 0.25% and 0.75%, of the Funds average daily net assets attributed to Class A and Class C Shares, respectively. Because these fees are paid out of the Funds assets on an ongoing
basis, over time, these fees will increase the cost of your investment and may cost you more than paying other types of such charges. The distribution fees are subject to the requirements of Rule 12b-1 under the Investment Company Act, and may be
used (among other things) for:
|
|
Compensation paid to and expenses incurred by Authorized Institutions, Goldman Sachs and their respective officers, employees and sales
representatives;
|
|
|
Commissions paid to Authorized Institutions;
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|
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Telephone and travel expenses;
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Interest and other costs associated with the financing of such compensation and expenses;
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Printing of prospectuses for prospective shareholders;
|
|
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Preparation and distribution of sales literature or advertising of any type; and
|
|
|
All other expenses incurred in connection with activities primarily intended to result in the sale of Class A and Class C Shares.
|
In connection with the sale of Class C Shares, Goldman Sachs normally begins paying the 0.75% distribution
fee as an ongoing commission to Authorized Institutions after the shares have been held for one year. Goldman Sachs normally begins accruing the annual 0.25% distribution fee for the Class A Shares as an ongoing commission to Authorized
Institutions immediately. Goldman Sachs generally pays the distribution fee on a quarterly basis.
CLASS C PERSONAL AND ACCOUNT MAINTENANCE
SERVICES AND FEES
Under the Class C Plans, Goldman Sachs is also entitled to receive a separate fee equal on an annual
basis to 0.25% of each applicable Funds average daily net assets attributed to Class C Shares. This fee is for personal and account maintenance services, and may be used to make payments to Goldman Sachs, Authorized Institutions and their
officers, sales representatives and employees for responding to inquiries of, and furnishing assistance to, shareholders regarding ownership of their shares or their accounts or similar services not otherwise provided on behalf of the Fund. If the
fees received by Goldman Sachs pursuant to the Plans exceed its expenses, Goldman Sachs may realize a profit from this arrangement.
C-17
In connection with the sale of Class C Shares, Goldman Sachs normally begins paying the
0.25% ongoing service fee to Authorized Institutions after the shares have been held for one year.
RESTRICTIONS ON EXCESSIVE TRADING
PRACTICES
Policies and Procedures on Excessive Trading Practices.
In accordance with the policy adopted by
the Board of the Trust, the Trust discourages frequent purchases and redemptions of Fund shares and does not permit market timing or other excessive trading practices. Purchases and exchanges should be made with a view to longer-term investment
purposes only that are consistent with the investment policies and practices of the Fund. Excessive, short-term (market timing) trading practices may disrupt portfolio management strategies, increase brokerage and administrative costs, harm Fund
performance and result in dilution in the value of Fund shares held by longer-term shareholders. The Trust and Goldman Sachs reserve the right to reject or restrict purchase or exchange requests from any investor. The Trust and Goldman Sachs will
not be liable for any loss resulting from rejected purchase or exchange orders. To minimize harm to the Trust and its shareholders (or Goldman Sachs), the Trust (or Goldman Sachs) will exercise this right if, in the Trusts (or Goldman
Sachs) judgment, an investor has a history of excessive trading or if an investors trading, in the judgment of the Trust (or Goldman Sachs), has been or may be disruptive to the Fund. In making this judgment, trades executed in multiple
accounts under common ownership or control may be considered together to the extent they can be identified. No waivers of the provisions of the policy established to detect and deter market timing and other excessive trading activity are permitted
that would harm the Trust or its shareholders or would subordinate the interests of the Trust or its shareholders to those of Goldman Sachs or any affiliated person or associated person of Goldman Sachs.
To deter excessive shareholder trading, certain Goldman Sachs Funds offered in other prospectuses impose a redemption fee on redemptions
made within 30 or 60 days of purchase subject to certain exceptions as described in those Goldman Sachs Funds prospectuses. As a further deterrent to excessive trading, many foreign equity securities held by the Fund are priced by an
independent pricing service using fair valuation. For more information on fair valuation, please see How To Buy SharesHow Are Shares Priced?
Pursuant to the policy adopted by the Board, Goldman Sachs has developed criteria that it uses to identify trading activity that may be excessive. Excessive trading activity in the Fund is measured by the
number of round trip transactions in a shareholders account. A round trip includes a purchase or exchange into the Fund followed or preceded by a redemption or exchange out of the same Fund. If the Fund detects that a
shareholder has completed two or more round trip transactions in a single Fund within a rolling 90-day period, the Fund may reject or restrict subsequent purchase or exchange orders by that shareholder permanently. In addition, the Fund may, in its
sole discretion, permanently reject or restrict purchase or exchange orders by a shareholder if the Fund detects other trading activity that is deemed to be disruptive to the management of the Fund or otherwise harmful to the Fund. For purposes of
these transaction surveillance procedures, the Fund may consider trading activity in multiple accounts under common ownership, control, or influence. A shareholder that has been restricted from participation in the Fund pursuant to this policy will
be allowed to apply for re-entry after one year. A shareholder applying for re-entry must provide assurances acceptable to the Fund that the shareholder will not engage in excessive trading activities in the future.
Goldman Sachs may modify its surveillance procedures and criteria from time to time without prior notice regarding the detection of
excessive trading or to address specific circumstances. Goldman Sachs will apply the criteria in a manner that, in Goldman Sachs judgment, will be uniform.
Fund shares may be held through omnibus arrangements maintained by Authorized Institutions such as broker-dealers, investment advisers and insurance companies. In addition, Fund shares may be held in
omnibus Employee Benefit Plans, Eligible Fee-Based Programs and other group accounts. Omnibus accounts include multiple investors and such accounts typically provide the Fund with a net purchase or redemption request on any given day where the
purchases and redemptions of Fund shares by the investors are netted against one another.
C-18
The identity of individual investors whose purchase and redemption orders are aggregated are ordinarily not tracked by the Fund on a regular basis. A number of these Authorized Institutions may
not have the capability or may not be willing to apply the Funds market timing policies or any applicable redemption fee. While Goldman Sachs may monitor share turnover at the omnibus account level, the Funds ability to monitor and
detect market timing by shareholders or apply any applicable redemption fee in these omnibus accounts may be limited in certain circumstances, and certain of these Authorized Institutions may charge the Fund a fee for providing certain shareholder
information requested as part of the Funds surveillance process. The netting effect makes it more difficult to identify, locate and eliminate market timing activities. In addition, those investors who engage in market timing and other
excessive trading activities may employ a variety of techniques to avoid detection. There can be no assurance that the Fund and Goldman Sachs will be able to identify all those who trade excessively or employ a market timing strategy, and curtail
their trading in every instance. If necessary, the Trust may prohibit additional purchases of Fund shares by an Authorized Institution or by certain customers of the Authorized Institution. Authorized Institutions may also monitor their
customers trading activities in the Fund. The criteria used by Authorized Institutions to monitor for excessive trading may differ from the criteria used by the Fund. If an Authorized Institution fails to cooperate in the implementation or
enforcement of the Trusts excessive trading policies, the Trust may take certain actions including terminating the relationship.
TAXATION
As with any investment, you should consider how your investment
in the Fund will be taxed. The tax information below is provided as general information. More tax information is available in the SAI. You should consult your tax adviser about the federal, state, local or foreign tax consequences of your investment
in the Fund. Except as otherwise noted, the tax information provided assumes that you are a U.S. citizen or resident.
Unless
your investment is through an Employee Benefit Plan or other tax-advantaged account, you should carefully consider the possible tax consequences of Fund distributions and the sale of your Fund shares.
DISTRIBUTIONS
The Fund
contemplates declaring as dividends each year all or substantially all of its taxable income. Distributions you receive from the Fund are generally subject to federal income tax, and may also be subject to state or local taxes. This is true whether
you reinvest your distributions in additional Fund shares or receive them in cash. For federal tax purposes, Fund distributions attributable to net investment income and short-term capital gains are taxable to you as ordinary income, while any
distributions of long-term capital gains are taxable to you as long-term capital gains, no matter how long you have owned your Fund shares.
Under current provisions of the Code, the maximum individual rate applicable to long-term capital gains is generally either 15% or 20%, depending on whether the individuals income exceeds certain
threshold amounts. Fund distributions to noncorporate shareholders attributable to dividends received by the Fund from U.S. and certain qualified foreign corporations will generally be taxed at the long-term capital gain rate, as long as certain
other requirements are met. For these lower rates to apply, noncorporate shareholders must own their Fund shares for at least 61 days during the 121-day period beginning 60 days before the Funds ex-dividend date. The amount of the Funds
distributions that would otherwise qualify for this favorable tax treatment may be reduced as a result of a high portfolio turnover rate.
Additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions received from the Fund and net gains from redemptions or other taxable
dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such persons modified adjusted gross income (in the case of an individual) or adjusted gross income (in the case of an estate or
trust) exceeds certain threshold amounts.
C-19
Although distributions are generally treated as taxable to you in the year they are paid,
distributions declared in October, November or December but paid in January are taxable as if they were paid in December.
It
is not anticipated that any significant percentage of the Funds dividends paid will be eligible for dividends-received deduction. The character and tax status of all distributions will be available to shareholders after the close of each
calendar year.
The Fund may be subject to foreign withholding or other foreign taxes on income or gain from certain foreign
securities. In general, the Fund may deduct these taxes in computing its taxable income. Rather than deducting these foreign taxes, the Fund may make an election to treat a proportionate amount of those taxes as constituting a distribution to each
shareholder, which would generally allow you, subject to certain limitations, either (i) to credit that proportionate amount of taxes against U.S. Federal income tax liability as a foreign tax credit or (ii) to take that amount as an
itemized deduction.
If you buy shares of the Fund before it makes a distribution, the distribution will be taxable to you
even though it may actually be a return of a portion of your investment. This is known as buying into a dividend.
SALES AND
EXCHANGES
Your sale of Fund shares is a taxable transaction for federal income tax purposes, and may also be subject to
state and local taxes. For tax purposes, the exchange of your Fund shares for shares of a different Goldman Sachs Fund is the same as a sale. When you sell or redeem your shares, you will generally recognize a capital gain or loss in an amount equal
to the difference between your adjusted tax basis in the shares and the amount received. Generally, this capital gain or loss will be long-term or short-term depending on whether your holding period for the shares exceeds one year, except that any
loss realized on shares held for six months or less will be treated as a long-term capital loss to the extent of any long-term capital gain dividends that were received on the shares. Additionally, any loss realized on a sale, exchange or redemption
of shares of the Fund may be disallowed under wash sale rules to the extent the shares disposed of are replaced with other shares of the Fund within a period of 61 days beginning 30 days before and ending 30 days after the date of
disposition (such as pursuant to a dividend reinvestment in shares of the Fund.) If disallowed, the loss will be reflected in an adjustment to the basis of the shares acquired.
OTHER INFORMATION
When you open your account, you should provide your
Social Security Number or Tax Identification Number on your Account Application. By law, the Fund must withhold 28% of your taxable distributions and any redemption proceeds if you do not provide your correct taxpayer identification number, or
certify that it is correct, or if the IRS instructs the Fund to do so.
Non-U.S. investors are generally subject to U.S.
withholding tax with respect to dividends received from the Fund and may be subject to estate tax. However, withholding is generally not required on properly designated distributions to non-U.S. investors of long-term capital gains, and, for
distributions in taxable years beginning before January 1, 2014 (if not extended further by Congress), of short-term capital gains and qualified interest income. Although this designation will be made for distributions of long-term and
short-term capital gains, the Fund does not anticipate making any qualified interest income designations. Therefore, all distributions of interest income will be subject to withholding when paid to non-U.S. investors.
Effective July 1, 2014, the Fund will be required to withhold U.S. tax (at a 30% rate) on payments of dividends and (effective
January 1, 2017) redemption proceeds and certain capital gain dividends made to certain non-U.S. entities that fail to comply (or be deemed compliant) with extensive new reporting and withholding requirements designed to inform the U.S.
Department of the Treasury of U.S.-owned foreign investment
C-20
accounts. Shareholders may be requested to provide additional information to enable the Fund to determine whether withholding is required.
The Fund is required to report to you and the IRS annually on Form 1099-B not only the gross proceeds of Fund shares you sell or redeem
but also their cost basis.
Cost basis will be calculated using the Funds default method of average cost, unless you instruct the Fund to use a different methodology.
If you would like to use the average cost method of calculation, no
action is required. To elect an alternative method, you should contact Goldman Sachs Funds at the address or phone number on the back cover of this Prospectus. If your account is held with an Authorized Institution, contact your representative with
respect to reporting of cost basis and available elections for your account.
You should carefully review the cost basis
information provided by the Fund and make any additional basis, holding period or other adjustments that are required when reporting these amounts on your federal income tax returns.
C-21
Exhibit D
INTERESTS OF CERTAIN PERSONS
To the knowledge of the Funds, as of February 28, 2014, the following persons owned of record or beneficially 5% or more of the
outstanding shares of the class identified of the Acquired Fund or Acquiring Fund. Shareholders indicated below holding greater than 25% or more of a Fund are controlling persons of that Fund under the 1940 Act.
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Asia Equity Fund
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Class
|
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Shareholder Name/Address
|
|
Percentage
of Class
|
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Class A
|
|
Edward D Jones & Co, FBO,
12555 Manchester Rd, Saint Louis, MO 63131-3729
|
|
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34.98
|
%
|
Class A
|
|
First Clearing LLC, Special Custody Acct FEBO,
2801 Market St, Saint Louis, MO 63103-2523
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|
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5.63
|
%
|
Class A
|
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Morgan Stanley Smith Barney LLC, Morgan Stanley, Harborside Financial Center, Plaza II 3rd Fl, Jersey City, NJ 07311
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5.75
|
%
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Class B
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First Clearing LLC, Special Custody Acct FEBO,
2801 Market St, Saint Louis, MO 63103-2523
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|
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14.22
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%
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Class B
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Merrill Lynch Pierce Fenner & Smith, FBO,
Attn: Service Team 97Pr2, Goldman Sachs Funds,
4800 Deer Lake Dr East 3rd Fl, Jacksonville, FL
32246-6484
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29.60
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%
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Class B
|
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Ameriprise Financial Services Inc.,
American Enterprise Investment Svc, FBO,
707 2nd Ave S, Minneapolis, MN
55402-2405
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6.82
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%
|
Class B
|
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Edward D Jones & Co, FBO,
12555 Manchester Rd, Saint Louis, MO 63131-3729
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10.64
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%
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Class B
|
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State Street Bank and Trust Company, RMP Beverage Corp. NDFI SIM-IRA, 74 Westbridge Dr, Holbrook, NY 11741-5310
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5.44
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%
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Class C
|
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Edward D Jones & Co, FBO,
12555 Manchester Rd, Saint Louis, MO 63131-3729
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11.28
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%
|
Class C
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Merrill Lynch Pierce Fenner & Smith, FBO,
Attn: Service Team Seq #97Rs2, Goldman Sachs Funds,
4800 Deer Lake Dr East 3rd Fl, Jacksonville,
FL 32246-6484
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14.21
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%
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Class C
|
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First Clearing LLC, Special Custody Acct FEBO,
2801 Market St, Saint Louis, MO 63103-2523
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|
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17.94
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%
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Class C
|
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Morgan Stanley Smith Barney LLC, Morgan Stanley & Co, Harborside Financial Center, Plaza II 3rd Fl, Jersey City, NJ 07311
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8.86
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%
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Class C
|
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Pershing LLC, PO Box 2052, Jersey City, NJ 07303-2052
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8.77
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%
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Institutional
|
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Goldman Sachs & Co, FBO Omnibus, C/O Mutual Fund Ops, 295 Chipeta Way Salt Lake City, UT 84108-1285
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70.58
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%
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Class IR
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Goldman Sachs Group Seed Accounts, Attn IMD-India-SAOS, Crystal Downs FL 3, Embassy Golf Links Business Park, Bangalore 560071 India
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100
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%
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D-1
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China Equity Fund
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Class
|
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Shareholder Name/Address
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Percentage
of Class
|
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Class A
|
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Ameriprise Financial Services Inc.,
American Enterprise Investment Svc, FBO,
707 2nd Ave S, Minneapolis, MN 55402-2405
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12.46
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%
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Class A
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|
Goldman Sachs Group Seed Accounts, Attn Imd-India-Saos, Crystal Downs Fl 3, Embassy Golf Links Business Park Bangalore 560071 India
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23.93
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%
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Class A
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Oppenheimer & Co Inc., FBO Joseph J Slama and
Robbin E Slama Jt/Ten By Ent,
12 Se 7th St Ste 801 Ft Lauderdale, FL 33301-3434
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66.17
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%
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Class C
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JP Morgan Securities Inc., JP Morgan Clearing Corp, Omnibus Account FEBO, 3 Chase Metrotech Center 3rd Floor Mf Dept Brooklyn, NY 11245-0005
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97.16
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%
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Institutional
|
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Goldman Sachs & Co, FBO Omnibus, C/O Mutual Fund Ops, 295 Chipeta Way, Salt Lake City, UT 84108-1285
|
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99.10
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%
|
Class IR
|
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Goldman Sachs Group Seed Accounts, Attn Imd-India-Saos, Crystal Downs Fl 3, Embassy Golf Links Business Park Bangalore 560071 India
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100.00
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%
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As of February 28, 2014, the Trustees and Officers of each Fund as a group owned less than
1% of the outstanding shares of the Fund.
The votes of the shareholders of the Acquired Fund and Acquiring Fund are not
being solicited since their approval or consent is not necessary for the Reorganization to take place.
CHINAN14DOC 03-14
D-2
PART B
STATEMENT OF ADDITIONAL INFORMATION
DATED MARCH 24, 2014
GOLDMAN SACHS ASIA EQUITY FUND
(a series of Goldman Sachs Trust)
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Class A Shares
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Class C Shares
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Institutional Shares
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Class IR Shares
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GSAGX
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GSACX
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GSAIX
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GSAEX
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71 South Wacker Drive
Chicago, Illinois 60606
This Statement of Additional Information (the
SAI) is not a prospectus. This SAI should be read in conjunction with the related Information Statement/Prospectus, dated March 24, 2014, which relates to the Class A, Class C, Institutional and Class IR Shares of the Goldman Sachs
Asia Equity Fund to be issued in exchange for the corresponding shares of the Goldman Sachs China Equity Fund. Please retain this SAI for further reference. To obtain a copy of the Information Statement/Prospectus, free of charge, please write to
the Goldman Sachs Funds at the address set forth above or call the Goldman Sachs Funds at 800-621-2550 (for Institutional Shareholders) or 800-526-7384 (for Class A, Class C and Class IR Shareholders).
GSAM
®
is a registered service mark of Goldman, Sachs & Co.
The date of this SAI is March 24, 2014.
TABLE OF CONTENTS
B-i
GOLDMAN SACHS ASSET
MANAGEMENT INTERNATIONAL
Investment Adviser
Christchurch Court
10-15 Newgate Street
London, England EC1A7HD
GOLDMAN, SACHS & CO.
Distributor
200 West Street
New York, NY 10282
GOLDMAN,
SACHS & CO.
Transfer Agent
71 South Wacker Drive
Chicago, IL 60606
Toll-free (in U.S.) 800-621-2550 (for Institutional Shareholders) or 800-526-7384 (for Class A, Class C and Class IR Shareholders).
B-1
INTRODUCTION
This SAI is intended to supplement the information provided in an Information Statement/Prospectus dated March 24, 2014 (the
Information Statement/Prospectus) relating to the proposed Agreement and Plan of Reorganization (the Plan) between the Goldman Sachs China Equity Fund (the Acquired Fund) and the Goldman Sachs Asia Equity Fund
(the Acquiring Fund), each a series of Goldman Sachs Trust, pursuant to which the Acquired Fund will (i) transfer all of its assets and liabilities attributable to each class of its shares to the Acquiring Fund in exchange for
shares of the Acquiring Fund; and (ii) distribute to its shareholders a portion of the Acquiring Fund shares to which each shareholder is entitled (as discussed below) in complete liquidation of the Acquired Fund (the
Reorganization).
Under the terms of the Plan, the Acquired Fund will transfer all of its assets to the
Acquiring Fund and the Acquiring Fund will assume all of the liabilities of the Acquired Fund. Subsequently, the Acquired Fund will be liquidated and you will become a shareholder of the Acquiring Fund. You will receive shares of the Acquiring Fund
that are equal in aggregate net asset value to the shares of the Acquired Fund that you held immediately prior to the Closing Date (as defined below). Shareholders of each class of shares of the Acquired Fund will receive the corresponding class of
the Acquiring Fund, as follows:
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Acquired Fund
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Acquiring Fund
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Class A
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g
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Class A
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Class B*
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Class C
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g
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Class C
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Institutional
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g
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Institutional
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Class IR
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g
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Class IR
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*
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The Acquired Fund does not offer Class B Shares.
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No sales charge, contingent deferred sales charge, commission, redemption fee or other transactional fee will be charged as a result of the Reorganization, which is scheduled to occur on or about April
25, 2014, but may occur on such earlier or later date as the parties agree in writing (the Closing Date).
DOCUMENTS INCORPORATED BY REFERENCE
This SAI consists of these cover pages and the following documents, each of which was filed electronically with the Securities and Exchange Commission (the SEC) and is incorporated by
reference herein.
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1.
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The Acquired Funds Annual Report for the fiscal year ended October 31, 2013 (File Nos. 33-17619 and 811-05349) as filed with the SEC on January 3, 2014
(Accession No. 0001193125-14-001905).
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2.
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The Acquired Funds Statement of Additional Information, dated February 28, 2014, as supplemented to date (File Nos. 33-17619 and 811-05349), as filed with
the SEC on February 28, 2014 (Accession No. 0001193125-14-077557) (and as supplemented from time to time in the future).
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3.
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The Acquiring Funds Annual Report for the fiscal year ended October 31, 2013 (File Nos. 33-17619 and 811-05349), as filed with the SEC on January 3,
2014 (Accession No. 0001193125-14-001905).
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|
4.
|
The Acquiring Funds Statement of Additional Information, dated February 28, 2014, as supplemented to date (File Nos. 33-17619 and 811-05349), as filed with
the SEC on February 28, 2014 (Accession No. 0001193125-14-077557) (and as supplemented from time to time in the future).
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B-2
PRO FORMA FINANCIAL STATEMENTS
Shown below are unaudited
pro forma
financial statements for the combined Fund, assuming the Reorganization, as more fully
described in the combined Information Statement/Prospectus dated March 24, 2014, had been consummated as of October 31, 2013. The
pro forma
Combined Schedules of Investments and the
pro forma
Combined Statements of Assets and
Liabilities have been adjusted to give effect to the Reorganization as if the Reorganization had occurred on October 31, 2013. The
pro forma
Combined Statement of Operations is for the fiscal year ended October 31, 2013 and has been
adjusted to give effect to the Reorganization as if the Reorganization had occurred November 1, 2012.
The unaudited
pro forma
Combined Schedules and Financial Statements are presented for informational purposes only and do not purport to be indicative of the financial condition that actually would have resulted if the Reorganization had been consummated on
October 31, 2013. These
pro forma
numbers have been estimated in good faith based on information regarding the Acquired Fund and the Acquiring Fund for the fiscal year ended October 31, 2013.
The following unaudited
pro forma
Combined Schedules and Financial Statements have been derived from the Schedules and Financial
Statements of the Acquired Fund and the Acquiring Fund and such information has been adjusted to give effect to the Reorganization as if the Reorganization had occurred on October 31, 2013. The unaudited pro forma Schedules and Financial
Statements should be read in conjunction with the Financial Statements and related notes of the Acquired Fund and the Acquiring Fund included in the Annual Reports to Shareholders for the fiscal year ended October 31, 2013, each of which are
incorporated herein.
Pro Forma Combined Schedule of Investments for the Goldman Sachs China Equity Fund and the Goldman Sachs Asia
Equity Fund October 31, 2013 (Unaudited)
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Shares
|
|
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Description
|
|
Value
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
Common Stocks98.3%
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
|
|
|
|
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|
|
|
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Canada1.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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39,052
|
|
|
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39,052
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|
|
Canadian Solar, Inc. (Semiconductors & Semiconductor Equipment)*
|
|
$
|
|
|
|
$
|
898,196
|
|
|
$
|
898,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China36.8%
|
|
|
|
|
|
|
2,009,000
|
|
|
|
|
|
|
|
2,009,000
|
|
|
Agricultural Bank of China Ltd. Class H (Banks)
(b)
|
|
|
968,127
|
|
|
|
|
|
|
|
968,127
|
|
|
254,000
|
|
|
|
|
|
|
|
254,000
|
|
|
Belle International Holdings Ltd. (Retailing)
|
|
|
358,146
|
|
|
|
|
|
|
|
358,146
|
|
|
162,100
|
|
|
|
|
|
|
|
162,100
|
|
|
China International Marine Containers (Capital Goods)
(b)
|
|
|
303,160
|
|
|
|
|
|
|
|
303,160
|
|
|
341,000
|
|
|
|
|
|
|
|
341,000
|
|
|
China Machinery Engineering Corp. Class H (Capital Goods)
|
|
|
233,028
|
|
|
|
|
|
|
|
233,028
|
|
|
114,000
|
|
|
|
|
|
|
|
114,000
|
|
|
China Mobile Ltd (Telecommunication Services)
(b)
|
|
|
1,184,648
|
|
|
|
|
|
|
|
1,184,648
|
|
|
436,000
|
|
|
|
|
|
|
|
436,000
|
|
|
China National Building Material Co. (Capital Goods)
(b)
|
|
|
426,292
|
|
|
|
|
|
|
|
426,292
|
|
|
171,200
|
|
|
|
|
|
|
|
171,200
|
|
|
China Pacific Insurance (Group) Co. Ltd. Class H
(Insurance)
(b)
|
|
|
618,653
|
|
|
|
|
|
|
|
618,653
|
|
|
102,000
|
|
|
|
|
|
|
|
102,000
|
|
|
China Shenhua Energy Co. Ltd. Class H (Energy)
|
|
|
310,271
|
|
|
|
|
|
|
|
310,271
|
|
|
654,000
|
|
|
|
|
|
|
|
654,000
|
|
|
China Suntien Green Energy Corp. Ltd. Class H
(Energy)
(b)
|
|
|
228,646
|
|
|
|
|
|
|
|
228,646
|
|
|
192,000
|
|
|
|
|
|
|
|
192,000
|
|
|
Dawnrays Pharmaceutical Holdings Ltd.
(Pharmaceuticals)
(b)
|
|
|
95,096
|
|
|
|
|
|
|
|
95,096
|
|
See accompanying Notes to Pro Forma Financial Statements
B-3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
Description
|
|
Value
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
Common Stocks98.3%
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
468,000
|
|
|
|
|
|
|
|
468,000
|
|
|
FIH Mobile Ltd. (Telecommunication Services)*
(b)
|
|
|
263,621
|
|
|
|
|
|
|
|
263,621
|
|
|
109,500
|
|
|
|
|
|
|
|
109,500
|
|
|
Great Wall Motor Co. Ltd. Class H (Automotive)
(b)
|
|
|
643,610
|
|
|
|
|
|
|
|
643,610
|
|
|
878,000
|
|
|
|
|
|
|
|
878,000
|
|
|
Guangdong Land Holdings Ltd. (Beverages)
|
|
|
234,587
|
|
|
|
|
|
|
|
234,587
|
|
|
163,000
|
|
|
|
|
|
|
|
163,000
|
|
|
Haitian International Holdings Ltd. (Capital Goods)
(b)
|
|
|
392,906
|
|
|
|
|
|
|
|
392,906
|
|
|
101,000
|
|
|
|
|
|
|
|
101,000
|
|
|
Hilong Holding Ltd (Energy)
(b)
|
|
|
67,179
|
|
|
|
|
|
|
|
67,179
|
|
|
396,000
|
|
|
|
|
|
|
|
396,000
|
|
|
Huaneng Power International Inc. Class H (Energy)
|
|
|
413,349
|
|
|
|
|
|
|
|
413,349
|
|
|
249,000
|
|
|
|
|
|
|
|
249,000
|
|
|
Jiangxi Copper Co. Ltd. Class H (Metals & Mining)
|
|
|
477,382
|
|
|
|
|
|
|
|
477,382
|
|
|
386,000
|
|
|
|
|
|
|
|
386,000
|
|
|
Ju Teng International Holdings Ltd.
(b)
|
|
|
280,813
|
|
|
|
|
|
|
|
280,813
|
|
|
161,600
|
|
|
|
|
|
|
|
161,600
|
|
|
New China Life Insurance Co., Ltd (Insurance)
(b)
|
|
|
456,592
|
|
|
|
|
|
|
|
456,592
|
|
|
46,000
|
|
|
|
|
|
|
|
46,000
|
|
|
Orient Overseas International Ltd. (Consumer Services)
|
|
|
237,595
|
|
|
|
|
|
|
|
237,595
|
|
|
926,000
|
|
|
|
|
|
|
|
926,000
|
|
|
PetroChina Co. Ltd. Class H (Energy)
(b)
|
|
|
1,054,511
|
|
|
|
|
|
|
|
1,054,511
|
|
|
93,000
|
|
|
|
|
|
|
|
93,000
|
|
|
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H
(Pharmaceuticals)
(b)
|
|
|
210,580
|
|
|
|
|
|
|
|
210,580
|
|
|
8,435
|
|
|
|
|
|
|
|
8,435
|
|
|
TAL Education Group ADR (Diversified Consumer
Services)
(b)
|
|
|
161,868
|
|
|
|
|
|
|
|
161,868
|
|
|
134,000
|
|
|
|
|
|
|
|
134,000
|
|
|
Zhuzhpu CSR Times Electric Co. Ltd. Class H
(b)
|
|
|
480,984
|
|
|
|
|
|
|
|
480,984
|
|
|
266,000
|
|
|
|
284,000
|
|
|
|
550,000
|
|
|
China Oilfield Services Ltd. Class H (Energy)
(b)
|
|
|
743,386
|
|
|
|
793,691
|
|
|
|
1,537,077
|
|
|
505,000
|
|
|
|
858,000
|
|
|
|
1,363,000
|
|
|
China Huishan Dairy Holdings Co. (Food, Beverage & Tobacco)*
|
|
|
200,619
|
|
|
|
340,854
|
|
|
|
541,473
|
|
|
2,666,000
|
|
|
|
1,483,110
|
|
|
|
4,149,110
|
|
|
China Construction Bank Corp. Class H (Banks)
(b)
|
|
|
2,074,219
|
|
|
|
1,153,900
|
|
|
|
3,228,119
|
|
|
40,100
|
|
|
|
20,300
|
|
|
|
60,400
|
|
|
Tencent Holdings Ltd. (Software & Services)
(b)
|
|
|
2,186,669
|
|
|
|
1,106,968
|
|
|
|
3,293,637
|
|
|
2,609,000
|
|
|
|
2,274,635
|
|
|
|
4,883,635
|
|
|
Industrial & Commercial Bank of China Ltd. Class H
(Banks)
(b)
|
|
|
1,828,977
|
|
|
|
1,594,578
|
|
|
|
3,423,555
|
|
|
27,522
|
|
|
|
31,541
|
|
|
|
59,063
|
|
|
Hollysys Automation Technologies Ltd. (Technology Hardware &
Equipment)*
(b)
|
|
|
461,544
|
|
|
|
528,943
|
|
|
|
990,487
|
|
|
47,000
|
|
|
|
58,000
|
|
|
|
105,000
|
|
|
Hengan International Group Co. Ltd. (Household & Personal
Products)
(b)
|
|
|
575,494
|
|
|
|
710,184
|
|
|
|
1,285,678
|
|
|
1,476,800
|
|
|
|
1,030,000
|
|
|
|
2,506,800
|
|
|
China Petroleum & Chemical Corp. Class H (Energy)
(b)
|
|
|
1,195,481
|
|
|
|
833,793
|
|
|
|
2,029,274
|
|
|
70,000
|
|
|
|
242,000
|
|
|
|
312,000
|
|
|
ENN Energy Holdings Ltd. (Utilities)
|
|
|
415,023
|
|
|
|
1,434,794
|
|
|
|
1,849,817
|
|
|
284
|
|
|
|
751
|
|
|
|
1,035
|
|
|
58.Com, Inc. ADR (Software & Services)*
|
|
|
6,850
|
|
|
|
18,114
|
|
|
|
24,964
|
|
|
|
|
|
|
192,000
|
|
|
|
192,000
|
|
|
Anhui Conch Cement Co. Ltd. Class H (Materials)
|
|
|
|
|
|
|
670,036
|
|
|
|
670,036
|
|
|
|
|
|
|
527,500
|
|
|
|
527,500
|
|
|
Bloomage Biotechnology Corp. Ltd. (Materials)
|
|
|
|
|
|
|
1,109,027
|
|
|
|
1,109,027
|
|
|
|
|
|
|
174,000
|
|
|
|
174,000
|
|
|
Shenzhou International Group Holdings Ltd. (Consumer Durables & Apparel)
|
|
|
|
|
|
|
599,952
|
|
|
|
599,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,789,906
|
|
|
|
10,894,834
|
|
|
|
30,684,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Pro Forma Financial Statements
B-4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
Description
|
|
Value
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
Common Stocks98.3%
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hong Kong10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169,436
|
|
|
|
169,436
|
|
|
AIA Group Ltd. (Insurance)
|
|
|
|
|
|
|
860,368
|
|
|
|
860,368
|
|
|
|
|
|
|
36,000
|
|
|
|
36,000
|
|
|
Cheung Kong Holdings Ltd. (Real Estate)
|
|
|
|
|
|
|
562,214
|
|
|
|
562,214
|
|
|
|
|
|
|
34,000
|
|
|
|
34,000
|
|
|
Cheung Kong Infrastructure Holdings Ltd. (Utilities)
|
|
|
|
|
|
|
236,597
|
|
|
|
236,597
|
|
|
216,000
|
|
|
|
140,000
|
|
|
|
356,000
|
|
|
China Overseas Land & Investment Ltd. (Real
Estate)
(b)
|
|
|
669,389
|
|
|
|
433,863
|
|
|
|
1,103,252
|
|
|
342,000
|
|
|
|
270,000
|
|
|
|
612,000
|
|
|
China Unicom Hong Kong Ltd. (Telecommunication Services)
|
|
|
535,063
|
|
|
|
422,419
|
|
|
|
957,482
|
|
|
|
|
|
|
151,000
|
|
|
|
151,000
|
|
|
Galaxy Entertainment Group Ltd. (Consumer Services)*
|
|
|
|
|
|
|
1,127,197
|
|
|
|
1,127,197
|
|
|
|
|
|
|
1,960,000
|
|
|
|
1,960,000
|
|
|
Peace Mark Holdings Ltd. (Consumer Durables & Apparel)*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
216,500
|
|
|
|
255,000
|
|
|
|
471,500
|
|
|
Shimao Property Holdings Ltd. (Real Estate)
(b)
|
|
|
544,120
|
|
|
|
640,881
|
|
|
|
1,185,001
|
|
|
396,000
|
|
|
|
424,000
|
|
|
|
820,000
|
|
|
Sino Biopharmaceutical (Pharmaceuticals, Biotechnology & Life
Sciences)
(b)
|
|
|
279,885
|
|
|
|
299,675
|
|
|
|
579,560
|
|
|
|
|
|
|
33,555
|
|
|
|
33,555
|
|
|
Sun Hung Kai Properties Ltd. (Real Estate)
|
|
|
|
|
|
|
439,528
|
|
|
|
439,528
|
|
|
114,000
|
|
|
|
115,000
|
|
|
|
229,000
|
|
|
China Menguin Dairy Co. Ltd. (Food, Beverage &
Tobacco)
(b)
|
|
|
501,476
|
|
|
|
505,875
|
|
|
|
1,007,351
|
|
|
|
|
|
|
67,000
|
|
|
|
67,000
|
|
|
Hutchison Whampoa Ltd. (Capital Goods)
|
|
|
|
|
|
|
834,865
|
|
|
|
834,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,529,933
|
|
|
|
6,363,482
|
|
|
|
8,893,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
India6.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,624
|
|
|
|
2,624
|
|
|
Bosch Ltd. (Automobiles & Components)
|
|
|
|
|
|
|
374,802
|
|
|
|
374,802
|
|
|
|
|
|
|
15,123
|
|
|
|
15,123
|
|
|
Bajaj Finance Ltd. (Diversified Financials)
|
|
|
|
|
|
|
333,647
|
|
|
|
333,647
|
|
|
|
|
|
|
61,531
|
|
|
|
61,531
|
|
|
HDFC Bank Ltd. (Banks)
|
|
|
|
|
|
|
685,198
|
|
|
|
685,198
|
|
|
|
|
|
|
22,161
|
|
|
|
22,161
|
|
|
HCL Technologies Ltd. (Software & Services)
|
|
|
|
|
|
|
395,088
|
|
|
|
395,088
|
|
|
|
|
|
|
30,951
|
|
|
|
30,951
|
|
|
IndusInd Bank Ltd. (Banks)
|
|
|
|
|
|
|
223,971
|
|
|
|
223,971
|
|
|
|
|
|
|
10,762
|
|
|
|
10,762
|
|
|
Infosys Ltd. (Software & Services)
|
|
|
|
|
|
|
575,116
|
|
|
|
575,116
|
|
|
|
|
|
|
87,018
|
|
|
|
87,018
|
|
|
Just Dial Ltd. (Software & Services)*
|
|
|
|
|
|
|
1,764,835
|
|
|
|
1,764,835
|
|
|
|
|
|
|
3,657
|
|
|
|
3,657
|
|
|
Oracle Financial Services Software Ltd. (Software & Services)*
|
|
|
|
|
|
|
190,756
|
|
|
|
190,756
|
|
|
|
|
|
|
80,518
|
|
|
|
80,518
|
|
|
Prestige Estates Projects Ltd. (Real Estate)
|
|
|
|
|
|
|
186,975
|
|
|
|
186,975
|
|
|
|
|
|
|
10,857
|
|
|
|
10,857
|
|
|
United Spirits Ltd. (Food, Beverage & Tobacco)*
|
|
|
|
|
|
|
454,536
|
|
|
|
454,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,184,924
|
|
|
|
5,184,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indonesia3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,612,000
|
|
|
|
1,612,000
|
|
|
PT Telekomunikasi Indonesia (Persero) Tbk (Telecommunication Services)
|
|
|
|
|
|
|
335,313
|
|
|
|
335,313
|
|
|
|
|
|
|
54,500
|
|
|
|
54,500
|
|
|
PT Unilever Indonesia Tbk (Household & Personal Products)
|
|
|
|
|
|
|
144,914
|
|
|
|
144,914
|
|
|
|
|
|
|
4,106,000
|
|
|
|
4,106,000
|
|
|
PT Erajaya Swasembada Tbk (Technology Hardware & Equipment)
|
|
|
|
|
|
|
495,008
|
|
|
|
495,008
|
|
|
|
|
|
|
685,000
|
|
|
|
685,000
|
|
|
PT MNC Sky Vision Tbk (Media)
|
|
|
|
|
|
|
141,208
|
|
|
|
141,208
|
|
|
|
|
|
|
2,575,000
|
|
|
|
2,575,000
|
|
|
PT Media Nusantara Citra Tbk (Media)
|
|
|
|
|
|
|
570,277
|
|
|
|
570,277
|
|
See accompanying Notes to Pro Forma Financial Statements
B-5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
Description
|
|
Value
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
Common Stocks98.3%
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
|
|
|
|
9,077,000
|
|
|
|
9,077,000
|
|
|
PT Sumber Alfaria Trijaya Tbk (Food & Staples Retailing)
|
|
|
|
|
|
|
434,826
|
|
|
|
434,826
|
|
|
|
|
|
|
554,000
|
|
|
|
554,000
|
|
|
PT Bank Central Asia Tbk (Banks)
|
|
|
|
|
|
|
513,286
|
|
|
|
513,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,634,832
|
|
|
|
2,634,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Malaysia2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,400
|
|
|
|
66,400
|
|
|
Public Bank Bhd (Banks)
|
|
|
|
|
|
|
385,378
|
|
|
|
385,378
|
|
|
|
|
|
|
193,620
|
|
|
|
193,620
|
|
|
Genting Berhad (Consumer Services)
|
|
|
|
|
|
|
642,823
|
|
|
|
642,823
|
|
|
|
|
|
|
144,800
|
|
|
|
144,800
|
|
|
Tenaga Nasional Berhad (Utilities)
|
|
|
|
|
|
|
432,708
|
|
|
|
432,708
|
|
|
|
|
|
|
476,500
|
|
|
|
476,500
|
|
|
UEM Sunrise Bhd (Real Estate)
|
|
|
|
|
|
|
353,066
|
|
|
|
353,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,813,975
|
|
|
|
1,813,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Philippines1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,957,700
|
|
|
|
1,957,700
|
|
|
Emperador, Inc. (Software & Services)*
|
|
|
|
|
|
|
532,806
|
|
|
|
532,806
|
|
|
|
|
|
|
1,919,900
|
|
|
|
1,919,900
|
|
|
Lafarge Republic, Inc. (Materials)
|
|
|
|
|
|
|
413,455
|
|
|
|
413,455
|
|
|
|
|
|
|
191,270
|
|
|
|
191,270
|
|
|
Universal Robina Corp. (Food, Beverage & Tobacco)
|
|
|
|
|
|
|
564,559
|
|
|
|
564,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,510,820
|
|
|
|
1,510,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Singapore3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
599,000
|
|
|
|
599,000
|
|
|
Hutchison Port Holdings Trust Class U (Transportation)
|
|
|
|
|
|
|
452,245
|
|
|
|
452,245
|
|
|
|
|
|
|
114,230
|
|
|
|
114,230
|
|
|
DBS Group Holdings Ltd. (Banks)
|
|
|
|
|
|
|
1,539,989
|
|
|
|
1,539,989
|
|
|
|
|
|
|
388,000
|
|
|
|
388,000
|
|
|
Singapore Telecommunications Ltd. (Telecommunication Services)
|
|
|
|
|
|
|
1,178,272
|
|
|
|
1,178,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,170,506
|
|
|
|
3,170,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Korea20.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,495
|
|
|
|
4,495
|
|
|
NCSoft Corp. (Software & Services)
|
|
|
|
|
|
|
871,289
|
|
|
|
871,289
|
|
|
|
|
|
|
44,000
|
|
|
|
44,000
|
|
|
Hyundai Development Co.Engineering & Construction (Capital Goods)
|
|
|
|
|
|
|
978,046
|
|
|
|
978,046
|
|
|
|
|
|
|
31,271
|
|
|
|
31,271
|
|
|
Seoul Semiconductor Co. Ltd. (Semiconductors & Semiconductor Equipment)
|
|
|
|
|
|
|
1,301,181
|
|
|
|
1,301,181
|
|
|
|
|
|
|
33,300
|
|
|
|
33,300
|
|
|
SK Hynix, Inc. (Semiconductors & Semiconductor Equipment)
|
|
|
|
|
|
|
1,002,027
|
|
|
|
1,002,027
|
|
|
|
|
|
|
8,270
|
|
|
|
8,270
|
|
|
Hyundai Mipo Dockyard (Capital Goods)
|
|
|
|
|
|
|
1,316,259
|
|
|
|
1,316,259
|
|
|
|
|
|
|
25,863
|
|
|
|
25,863
|
|
|
Kia Motors Corp. (Automobiles & Components)
|
|
|
|
|
|
|
1,502,672
|
|
|
|
1,502,672
|
|
|
|
|
|
|
9,891
|
|
|
|
9,891
|
|
|
OCICo. Ltd. (Materials)
|
|
|
|
|
|
|
1,789,967
|
|
|
|
1,789,967
|
|
|
|
|
|
|
2,866
|
|
|
|
2,866
|
|
|
Kumho Petro Chemical Co. Ltd. (Materials)
|
|
|
|
|
|
|
280,560
|
|
|
|
280,560
|
|
|
|
|
|
|
8,620
|
|
|
|
8,620
|
|
|
Hanssem Co. Ltd. (Consumer Durables & Apparel)
|
|
|
|
|
|
|
349,254
|
|
|
|
349,254
|
|
|
|
|
|
|
1,135
|
|
|
|
1,135
|
|
|
NAVER Corp. (Software & Services)
|
|
|
|
|
|
|
636,925
|
|
|
|
636,925
|
|
|
|
|
|
|
3,213
|
|
|
|
3,213
|
|
|
Hyundai Department Store Co. Ltd. (Retailing)
|
|
|
|
|
|
|
511,616
|
|
|
|
511,616
|
|
|
|
|
|
|
1,071
|
|
|
|
1,071
|
|
|
LG Chem Ltd. (Materials)
|
|
|
|
|
|
|
302,110
|
|
|
|
302,110
|
|
|
|
|
|
|
6,954
|
|
|
|
6,954
|
|
|
Samsung C&T Corp. (Capital Goods)
|
|
|
|
|
|
|
412,636
|
|
|
|
412,636
|
|
|
|
|
|
|
1,565
|
|
|
|
1,565
|
|
|
Samsung Electronics Co. Ltd. (Semiconductors & Semiconductor Equipment)
|
|
|
|
|
|
|
2,158,227
|
|
|
|
2,158,227
|
|
|
|
|
|
|
1,908
|
|
|
|
1,908
|
|
|
SK Holdings Co. Ltd. (Capital Goods)
|
|
|
|
|
|
|
345,806
|
|
|
|
345,806
|
|
See accompanying Notes to Pro Forma Financial Statements
B-6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
Description
|
|
Value
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
Common Stocks98.3%
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
|
|
|
|
53,180
|
|
|
|
53,180
|
|
|
Hana Financial Group, Inc. (Banks)
|
|
|
|
|
|
|
2,044,893
|
|
|
|
2,044,893
|
|
|
|
|
|
|
16,190
|
|
|
|
16,190
|
|
|
LMS Co. Ltd. (Semiconductors & Semiconductor Equipment)
|
|
|
|
|
|
|
259,003
|
|
|
|
259,003
|
|
|
|
|
|
|
26,680
|
|
|
|
26,680
|
|
|
KT Skylife Co. Ltd. (Media)
|
|
|
|
|
|
|
706,333
|
|
|
|
706,333
|
|
|
|
|
|
|
4,900
|
|
|
|
4,900
|
|
|
Hankook Tire Co. Ltd. (Automobiles & Components)
|
|
|
|
|
|
|
287,456
|
|
|
|
287,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,056,260
|
|
|
|
17,056,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taiwan9.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
199,000
|
|
|
|
364,000
|
|
|
|
563,000
|
|
|
Epistar Corp. (Semiconductor)
(b)
|
|
|
345,087
|
|
|
|
631,209
|
|
|
|
976,296
|
|
|
|
|
|
|
52,000
|
|
|
|
52,000
|
|
|
Ginko International Co. Ltd. (Health Care Equipment & Services)
|
|
|
|
|
|
|
986,520
|
|
|
|
986,520
|
|
|
|
|
|
|
423,000
|
|
|
|
423,000
|
|
|
Fubon Financial Holdings Co. Ltd. (Diversified Financials)
|
|
|
|
|
|
|
619,932
|
|
|
|
619,932
|
|
|
|
|
|
|
57,899
|
|
|
|
57,899
|
|
|
PChome Online, Inc. (Software & Services)
|
|
|
|
|
|
|
336,432
|
|
|
|
336,432
|
|
|
|
|
|
|
80,000
|
|
|
|
80,000
|
|
|
Media Tek, Inc. (Semiconductors & Semiconductor Equipment)
|
|
|
|
|
|
|
1,093,755
|
|
|
|
1,093,755
|
|
|
|
|
|
|
319,600
|
|
|
|
319,600
|
|
|
Hon Hai Precision Industry Co. Ltd. (Technology Hardware & Equipment)
|
|
|
|
|
|
|
812,518
|
|
|
|
812,518
|
|
|
|
|
|
|
636,195
|
|
|
|
636,195
|
|
|
Mega Finanancial Holdings Co. Ltd. (Banks)
|
|
|
|
|
|
|
550,874
|
|
|
|
550,874
|
|
|
|
|
|
|
67,286
|
|
|
|
67,286
|
|
|
Radiant Opto-Electronics Corp. (Semiconductors & Semiconductor Equipment)
|
|
|
|
|
|
|
251,784
|
|
|
|
251,784
|
|
|
|
|
|
|
530,338
|
|
|
|
530,338
|
|
|
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & Semiconductor Equipment)
|
|
|
|
|
|
|
1,954,595
|
|
|
|
1,954,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
345,087
|
|
|
|
7,237,619
|
|
|
|
7,582,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thailand2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79,753
|
|
|
|
79,753
|
|
|
PTT Exploration & Production PCL (Energy)
|
|
|
|
|
|
|
431,536
|
|
|
|
431,536
|
|
|
|
|
|
|
45,600
|
|
|
|
45,600
|
|
|
Bangkok Bank PCL NVDR (Banks)
|
|
|
|
|
|
|
302,623
|
|
|
|
302,623
|
|
|
|
|
|
|
199,200
|
|
|
|
199,200
|
|
|
Airports of Thailand PCL (Transportation)
|
|
|
|
|
|
|
1,355,680
|
|
|
|
1,355,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,089,839
|
|
|
|
2,089,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,393
|
|
|
|
5,393
|
|
|
Cognizant Technology Solutions Corp. Class A (Software & Services)*
|
|
|
|
|
|
|
468,813
|
|
|
|
468,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Cost $20,540,977, $52,857,473 and $71,398,450)
|
|
$
|
22,664,926
|
|
|
$
|
59,324,100
|
|
|
$
|
81,989,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Company1.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
|
|
|
|
|
|
|
|
|
452,274
|
|
|
|
|
|
|
|
452,274
|
|
|
SSgA U.S. Government Money Market Fund
(a)
|
|
|
452,274
|
|
|
|
|
|
|
|
452,274
|
|
See accompanying Notes to Pro Forma Financial Statements
B-7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
Description
|
|
Value
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
Common Stocks98.3%
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman
Sachs Asia
Equity Fund
|
|
|
Pro Forma
Combined
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thailand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,593,800
|
|
|
|
1,593,800
|
|
|
BTS Rail Mass Transit Growth Infrastructure Fund,
Class F
|
|
|
|
|
|
|
493,560
|
|
|
|
493,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENT COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Cost $452,274, $563,859 and $1,016,133)
|
|
$
|
452,274
|
|
|
$
|
493,560
|
|
|
$
|
945,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rights0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,648
|
|
|
|
50,648
|
|
|
Mega Financial Holding Co. Ltd. (Banks)*
|
|
|
|
|
|
|
6,791
|
|
|
|
6,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Cost $20,993,251, $53,421,332 and $74,414,583)
|
|
$
|
23,117,200
|
|
|
$
|
59,824,451
|
|
|
$
|
82,941,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS IN EXCESS OF LIABILITIES0.6%
|
|
$
|
20,896
|
|
|
$
|
439,301
|
|
|
$
|
460,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS100%
|
|
$
|
23,138,096
|
|
|
$
|
60,263,752
|
|
|
$
|
83,401,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The percentage shown for each investment category reflects the value of investments in that category as a percentage of
net assets.
*
|
Non-income producing security
|
(a)
|
Variable rate Security. Interest rate disclosed is that which is in effect at October 31, 2013.
|
(b)
|
It is currently anticipated that the security, or a portion of the security, may be disposed of prior to the Reorganization. Actual portfolio sales will depend on
portfolio composition, market conditions and other factors at the time of, or prior to, the Reorganization and will be at the discretion of Goldman Sachs Asset Management International, the Funds investment adviser (GSAMI).
|
Investment Abbreviations:
ADRAmerican Depository Receipt
NVDRNon-Voting Depository Receipt
See accompanying Notes to Pro Forma Financial Statements
B-8
Pro Forma Combined Statement of Assets and Liabilities
For the Goldman Sachs China Equity Fund and the Goldman Sachs Asia Equity Fund
October 31, 2013 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldman Sachs
China Equity
Fund
|
|
|
Goldman Sachs
Asia
Equity
Fund
|
|
|
Adjustments
|
|
|
Pro
Forma
Combined
Fund
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at value (cost $20,993,251, $53,421,332 and $74,414,583, respectively)
|
|
$
|
23,117,200
|
|
|
$
|
59,824,451
|
|
|
$
|
|
|
|
$
|
82,941,651
|
|
Cash
|
|
|
|
|
|
|
147,842
|
|
|
|
|
|
|
|
147,842
|
|
Foreign Currency, at value (cost $2,996, $96,494 and $99,490)
|
|
|
2,996
|
|
|
|
94,493
|
|
|
|
|
|
|
|
97,489
|
|
Receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments sold
|
|
|
151,988
|
|
|
|
807,164
|
|
|
|
|
|
|
|
959,152
|
|
Dividends
|
|
|
113,246
|
|
|
|
70,371
|
|
|
|
|
|
|
|
183,617
|
|
Fund shares sold
|
|
|
|
|
|
|
16,238
|
|
|
|
|
|
|
|
16,238
|
|
Reimbursement from investment adviser
|
|
|
15,041
|
|
|
|
25,564
|
|
|
|
|
|
|
|
40,605
|
|
Other assets:
|
|
|
2,460
|
|
|
|
19,215
|
|
|
|
|
|
|
|
21,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
23,402,931
|
|
|
|
61,005,338
|
|
|
|
|
|
|
|
84,408,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments purchased
|
|
|
153,295
|
|
|
|
318,103
|
|
|
|
|
|
|
|
471,398
|
|
Foreign capital gains taxes
|
|
|
|
|
|
|
147,777
|
|
|
|
|
|
|
|
147,777
|
|
Fund shares redeemed
|
|
|
|
|
|
|
87,448
|
|
|
|
|
|
|
|
87,448
|
|
Amounts owed to affiliates
|
|
|
22,492
|
|
|
|
60,566
|
|
|
|
|
|
|
|
83,058
|
|
Accrued expenses
|
|
|
89,048
|
|
|
|
127,692
|
|
|
|
|
|
|
|
216,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
264,835
|
|
|
|
741,586
|
|
|
|
|
|
|
|
1,006,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid in capital
|
|
|
22,111,260
|
|
|
|
74,101,255
|
|
|
|
|
|
|
|
96,212,515
|
|
Undistributed net investment income
|
|
|
416,443
|
|
|
|
72,950
|
|
|
|
|
|
|
|
489,393
|
|
Accumulated net realized loss
|
|
|
(1,513,578
|
)
|
|
|
(20,176,544
|
)
|
|
|
|
|
|
|
(21,690,122
|
)
|
Net unrealized gain
|
|
|
2,123,971
|
|
|
|
6,266,091
|
|
|
|
|
|
|
|
8,390,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
$
|
23,138,096
|
|
|
$
|
60,263,752
|
|
|
|
|
|
|
$
|
83,401,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
$
|
18,091
|
|
|
$
|
14,097,045
|
|
|
$
|
|
|
|
$
|
14,115,136
|
|
Class B
|
|
|
|
|
|
|
627,977
|
|
|
|
|
|
|
|
627,977
|
|
Class C
|
|
|
8,870
|
|
|
|
2,330,963
|
|
|
|
|
|
|
|
2,339,833
|
|
Institutional
|
|
|
23,102,039
|
|
|
|
43,207,767
|
|
|
|
|
|
|
|
66,309,806
|
|
Class IR
|
|
|
9,096
|
|
|
|
|
|
|
|
|
|
|
|
9,096
|
|
Net Assets Value, offering and redemption price per share:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
$
|
8.92
|
|
|
$
|
19.21
|
|
|
|
|
|
|
$
|
19.21
|
|
Class B
|
|
|
|
|
|
$
|
18.23
|
|
|
|
|
|
|
$
|
18.23
|
|
Class C
|
|
$
|
8.84
|
|
|
$
|
18.02
|
|
|
|
|
|
|
$
|
18.02
|
|
Institutional
|
|
$
|
8.99
|
|
|
$
|
20.13
|
|
|
|
|
|
|
$
|
20.13
|
|
Class IR
|
|
$
|
8.97
|
|
|
$
|
20.13
|
(b)
|
|
|
|
|
|
$
|
20.13
|
(b)
|
Shares Outstanding par value (unlimited number of shares authorized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
2,028
|
|
|
|
733,666
|
|
|
|
(1,086
|
)
(c)
|
|
|
734,608
|
|
Class B
|
|
|
|
|
|
|
34,448
|
|
|
|
|
|
|
|
34,448
|
|
Class C
|
|
|
1,003
|
|
|
|
129,382
|
|
|
|
(511
|
)
(c)
|
|
|
129,874
|
|
Institutional
|
|
|
2,570,215
|
|
|
|
2,146,290
|
|
|
|
(1,422,573
|
)
(c)
|
|
|
3,293,932
|
|
Class IR
|
|
|
1,014
|
|
|
|
|
|
|
|
(562
|
)
(c)
|
|
|
452
|
|
(a)
|
Maximum public offering price per share for Class A Shares of the Goldman Sachs China Equity Fund and Goldman Sachs Asia Equity Fund is $9.44 and $20.33,
respectively. At redemption, Class B and Class C shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current NAV or the original purchase of the shares.
|
(b)
|
Assumed share class existed at October 31, 2013 with NAV of $20.13.
|
(c)
|
Adjustment to reflect reduction of shares based on Goldman Sachs Asia Equity Fund NAVs.
|
See accompanying Notes to Pro Forma Financial Statements
B-9
Pro Forma Combined Statement of Operations
For the Goldman Sachs China Equity Fund and the Goldman Sachs Asia Equity Fund
For the
Fiscal Year Ended October 31, 2013 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Equity
Fund
|
|
|
Asia Equity
Fund
|
|
|
Adjustments
|
|
|
Pro Forma
Combined Fund
|
|
Investment Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends (net of foreign taxes of $53,879, $112,297 and $166,176)
|
|
$
|
692,111
|
|
|
$
|
1,186,533
|
|
|
$
|
0
|
|
|
$
|
1,878,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
|
191,531
|
|
|
|
610,893
|
|
|
|
(17,281
|
)
(b)
|
|
|
785,143
|
|
Custody, Accounting & Administrative services
|
|
|
84,393
|
|
|
|
257,721
|
|
|
|
(66,393
|
)
(c)
|
|
|
275,721
|
|
Professional Fees
|
|
|
75,142
|
|
|
|
82,711
|
|
|
|
(75,142
|
)
(c)
|
|
|
82,711
|
|
Registration fees
|
|
|
68,655
|
|
|
|
70,723
|
|
|
|
(61,582
|
)
(c)
|
|
|
77,796
|
|
Distribution and Service fees
(a)
|
|
|
515
|
|
|
|
68,787
|
|
|
|
|
|
|
|
69,302
|
|
Transfer Agent fees
(a)
|
|
|
7,120
|
|
|
|
50,969
|
|
|
|
|
|
|
|
58,089
|
|
Printing and Mailing Costs
|
|
|
22,915
|
|
|
|
38,158
|
|
|
|
(17,915
|
)
(c)
|
|
|
43,158
|
|
Trustee fees
|
|
|
16,921
|
|
|
|
17,051
|
|
|
|
(16,921
|
)
(c)
|
|
|
17,051
|
|
Other
|
|
|
14,263
|
|
|
|
27,460
|
|
|
|
(9,263
|
)
(c)
|
|
|
32,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
481,455
|
|
|
|
1,224,473
|
|
|
|
(264,497
|
)
|
|
|
1,441,431
|
|
Less - expense reductions
|
|
|
(214,602
|
)
|
|
|
(320,647
|
)
|
|
|
229,126
|
(d)
|
|
|
(306,123
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Expenses
|
|
|
266,853
|
|
|
|
903,826
|
|
|
|
(35,371
|
)
|
|
|
1,135,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income
|
|
|
425,258
|
|
|
|
282,707
|
|
|
|
35,371
|
|
|
|
743,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
(338,734
|
)
|
|
|
5,947,967
|
|
|
|
|
|
|
|
5,609,233
|
|
Futures Contracts
|
|
|
|
|
|
|
15,130
|
|
|
|
|
|
|
|
15,130
|
|
Foreign currency transactions
|
|
|
(3,782
|
)
|
|
|
(125,965
|
)
|
|
|
|
|
|
|
(129,747
|
)
|
Net change in unrealized gain (loss) on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
1,647,738
|
|
|
|
(858,549
|
)
|
|
|
|
|
|
|
789,189
|
|
Futures Contracts
|
|
|
|
|
|
|
3,939
|
|
|
|
|
|
|
|
3,939
|
|
Foreign Currency Translation
|
|
|
22
|
|
|
|
(26,342
|
)
|
|
|
|
|
|
|
(26,320
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain
|
|
|
1,305,244
|
|
|
|
4,956,180
|
|
|
|
|
|
|
|
6,261,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
$
|
1,730,502
|
|
|
$
|
5,238,887
|
|
|
$
|
35,371
|
|
|
$
|
7,004,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Class specific Distribution and Service, and Transfer Agent fees were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution and Service Fees
|
|
|
Transfer Agent Fees
|
|
Fund
|
|
Class A
|
|
|
Class B
|
|
|
Class C
|
|
|
Class A
|
|
|
Class B
|
|
|
Class C
|
|
|
Institutional
|
|
|
Class IR
|
|
China Equity
|
|
$
|
146
|
|
|
$
|
|
|
|
$
|
369
|
|
|
$
|
111
|
|
|
$
|
|
|
|
$
|
70
|
|
|
$
|
6,923
|
|
|
$
|
16
|
|
Asia Equity
|
|
|
36,034
|
|
|
|
7,385
|
|
|
|
25,368
|
|
|
|
27,386
|
|
|
|
1,403
|
|
|
|
4,820
|
|
|
|
17,360
|
|
|
|
|
|
(b)
|
Adjustment to reflect lower management fee for the Goldman Sachs Asia Equity Fund
|
(c)
|
Adjustments to reflect anticipated savings as a result of consolidation of custody and accounting, professional fees, printing and mailing cost, etc.
|
(d)
|
Adjustment to reflect expense reduction arrangement for Goldman Sachs Asia Equity Fund.
|
See accompanying Notes to Pro Forma Financial Statements
B-10
GOLDMAN SACHS ASIA EQUITY FUND
Notes to Pro Forma Financial Statements
October 31, 2013 (Unaudited)
1. ORGANIZATION
Goldman Sachs Trust (the Trust) is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended, (the
Act) as an open-end management investment company. The Trust includes the Goldman Sachs Asia Equity Fund (the Fund). The Fund is a diversified portfolio offering four classes of shares Class A, Class B, Class C,
Institutional and Class IR.
The Trust also includes the Goldman Sachs China Equity Fund (China Equity). China Equity is a
non-diversified portfolio offering four classes of shares Class A, Class C, Institutional and Class IR.
2. BASIS OF
COMBINATION
The unaudited pro forma Schedule of Investments, Statement of Assets and Liabilities, and Statement of Operations (
pro forma statements ) reflect the accounts of the Fund and China Equity as if the proposed Reorganization occurred as of and for the year ended October 31, 2013. Classes A, C, Institutional and IR of China Equity will be combined
with Classes A, C, Institutional and IR of the Fund, respectively. These pro forma statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for the period shown.
The unaudited pro forma statements are for informational purposes only and do not purport to be indicative of the financial condition that actually would
result if the Reorganization is consummated. The Fund will be the accounting survivor for financial reporting purposes. The Plan of Reorganization provides for a tax-free acquisition of China Equity into the Fund; therefore, no gain or loss will be
recognized by the Fund or its shareholders, as a result of the Reorganization, except as provided below. For financial reporting purposes, the historical cost basis of investment securities will be carried forward to the Fund to align ongoing
reporting of the realized and unrealized gains and losses of the Fund. The Reorganization will be accomplished by an acquisition of all the assets and the assumption of all the liabilities of China Equity by the Fund in exchange for shares of the
Fund and the distribution of such shares to China Equitys shareholders in complete liquidation of China Equity.
Following the
Reorganization, the Fund will be the surviving fund. The surviving fund will have the portfolio management team, portfolio composition, strategies and investment objectives, policies and restrictions of the Fund. No significant accounting policies
will change as a result of the Reorganization, specifically policies regarding security valuation or compliance with Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). No significant changes to any existing
contracts of the Fund are expected as a result of the Reorganization.
If the Reorganization had occurred as of October 31, 2013, China Equity
would not have been required to dispose of any of its securities in order to comply with the Funds investment policies and restrictions. However, due to certain transfer restrictions, among other things, it is currently estimated that
approximately 75% of the China Equitys portfolio will be sold. It is currently anticipated that such sales will occur before the Reorganization. It is currently estimated that such portfolio repositioning would have resulted in realized
capital gains of approximately $2.5 million, if such sales occurred as of March 18, 2014. Taking into account capital losses and capital loss carryforwards expected to be available to offset such realized gains, it is currently estimated that
the Acquired Fund will be required to distribute to its shareholders approximately $400,000 (approximately $0.14 per share) as a result of such portfolio repositioning, although the actual amount of such distribution could be higher or lower
depending on market conditions and on transactions entered into by the Acquired Fund prior to the Closing Date. Shareholders of the China Fund will generally be taxed on any resulting
B-11
capital gain distributions. It is also estimated that such portfolio repositioning will result in brokerage and other transaction costs, including trading taxes, of approximately $42,000
(approximately 12 basis points).
GSAMI has agreed to pay the legal, auditor/accounting and other costs, including brokerage, trading taxes
and other transactions costs, associated with each Funds participation in the Reorganization. GSAMI estimates that these costs will be approximately $105,000.
3. SHARES OF BENEFICIAL INTEREST
These pro forma statements give effect to the proposed
transaction whereby all assets of China Equity will be exchanged for shares of the Fund. The Fund will assume the liabilities, if any, of China Equity. Immediately thereafter, shares of the Fund will be distributed to the shareholders of China
Equity. China Equity will be subsequently terminated.
The pro forma net asset value per share assumes the issuance of additional shares
of the Fund, which would have been issued on October 31, 2013 in connection with the proposed Reorganization. The amount of additional shares assumed to be issued under the Reorganization was calculated based on the October 31, 2013 net
assets and the net assets value per share (NAV) of the Fund. These amounts are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
Class C
|
|
|
Institutional
|
|
|
Class IR
|
|
Shares Issued
|
|
|
942
|
|
|
|
492
|
|
|
|
1,147,642
|
|
|
|
452
|
|
Net Assets 10/31/2013
|
|
$
|
18,091
|
|
|
$
|
8,870
|
|
|
$
|
23,102,039
|
|
|
$
|
9,096
|
|
Pro Forma Net Asset Value 10/31/2013
|
|
$
|
19.21
|
|
|
$
|
18.02
|
|
|
$
|
20.13
|
|
|
$
|
20.13
|
*
|
*
|
Assumed share class existed at October 31, 2013 with NAV of $20.13.
|
4. SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of America (GAAP) and require management to make estimates and assumptions that may affect the reported amounts and disclosures. Actual results may differ from
those estimates and assumptions.
A. Investment Valuation
The Funds valuation policy is to value investments at fair
value.
B. Investment Income and Investments
Investment income includes interest income and dividend income, net of any
foreign withholding taxes, less any amounts reclaimable. Interest income is accrued daily and adjusted for amortization of premiums and accretion of discounts. Dividend income is recognized on ex-dividend date or, for certain foreign
securities, as soon as such information is obtained subsequent to the ex-dividend date. Investment transactions are reflected on trade date. Realized gains and losses are calculated using identified cost. Investment transactions are recorded on
the following business day for daily NAV calculations. Any foreign capital gains tax is accrued daily based upon net unrealized gains, and is payable upon sale of such investments.
For derivative contracts, realized gains and losses are recorded upon settlement of the contract
C. Class Allocations and Expenses
Investment income, realized and unrealized gain (loss), and non-class specific expenses of the Fund
are allocated daily based upon the proportion of net assets of each class. Class specific expenses, where applicable, are borne by the respective share classes and include Distribution and Service, Transfer Agent and Service and Shareholder
Administration fees. Non-class specific expenses directly incurred by the Fund are charged to the Fund, while such expenses incurred by the Trust are allocated across the respective Funds on a straight-line and/or pro-rata basis depending upon the
nature of the expenses.
B-12
D. Federal Taxes and Distributions to Shareholders
It is the Funds policy to
comply with the requirements of the Code, applicable to regulated investment companies (mutual funds) and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, the Fund
is not required to make any provisions for the payment of federal income tax. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gains distributions, if any, are declared and paid annually.
Net capital losses are carried forward to future fiscal years and may be used to the extent allowed by the Code to offset any future
capital gains. Utilization of capital loss carryforwards will reduce the requirement of future capital gains distributions.
Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in
taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of
this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses
rather than being considered all short-term as under previous law.
The Fund had capital loss carryforwards as of October 31,
2013. The year and amount of expiration for each capital loss carryforward is indicated below:
|
|
|
|
|
|
|
|
|
Capital Loss Carryforward
|
|
China Equity Fund
|
|
|
Asia Equity Fund
|
|
Expiring 2017*
|
|
$
|
|
|
|
$
|
19,951,704
|
|
Perpetual Long-term
|
|
|
514,813
|
|
|
|
|
|
Perpetual Short-term
|
|
|
688,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,203,434
|
|
|
$
|
19,951,704
|
|
|
|
|
|
|
|
|
|
|
*
|
Expiration occurs on October 31 of the year indicated.
|
E. Foreign Currency Translation
The accounting records and reporting currency of the Fund is maintained in U.S. dollars. Assets and liabilities denominated in foreign currencies are
translated into U.S. dollars using the current exchange rates at the close of each business day. The effect of changes in foreign currency exchange rates on investments is included within net realized and unrealized gain (loss) on
investments. Changes in the value of other assets and liabilities as a result of fluctuations in foreign exchange rates are included in the Statements of Operations within net change in unrealized gain (loss) on foreign currency transactions.
Transactions denominated in foreign currencies are translated into U.S. dollars on the date the transaction occurred, the effects of which are included within net realized gain (loss) on foreign currency transactions.
5. INVESTMENTS AND FAIR VALUE MEASUREMENTS
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
(i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The levels used for classifying investments are not necessarily an indication of the risk associated with investing in these
investments. The three levels of the fair value hierarchy are described below:
Level 1 Unadjusted quoted prices in
active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
B-13
Level 2 Quoted prices in markets that are not active or financial instruments for
which significant inputs are observable (including, but not limited to, quoted prices for similar investments, interest rates, foreign exchange rates, volatility and credit spreads), either directly or indirectly;
Level 3 Prices or valuations that require significant unobservable inputs (including GSAMs assumptions in determining fair
value measurement).
The Trustees have adopted Valuation Procedures that govern the valuation of the portfolio investments held by the Fund,
including investments for which market quotations are not readily available. The Trustees have delegated to GSAMI day-to-day responsibility for implementing and maintaining internal controls and procedures related to the valuation of the Funds
portfolio investments. To assess the continuing appropriateness of pricing sources and methodologies, GSAMI regularly performs price verification procedures and issues challenges as necessary to third party pricing vendors or brokers, and any
differences are reviewed in accordance with the Valuation Procedures.
A. Level 1 and Level 2 Fair Value Investments
The
valuation techniques and significant inputs used in determining the fair values for investments classified as Level 1 and Level 2 are as follows:
Equity Securities
Equity securities and investment companies traded on a United States (U.S.) securities exchange or the NASDAQ system, or those located on certain foreign
exchanges, including but not limited to the Americas, are valued daily at their last sale price or official closing price on the principal exchange or system on which they are traded. If no sale occurs, equity securities and exchange traded
investment companies are valued at the last bid price for long positions and at the last ask price for short positions. Investments in investment companies (other than those that are exchange traded) are valued at the NAV on the valuation date. To
the extent these investments are actively traded, they are classified as Level 1 of the fair value hierarchy.
Unlisted equity
securities for which market quotations are available are valued at the last sale price on the valuation date, or if no sale occurs, at the last bid price. Securities traded on certain foreign securities exchanges are valued daily at fair value
determined by an independent fair value service (if available) under Valuation Procedures approved by the Trustees and consistent with applicable regulatory guidance. The independent fair value service takes into account multiple factors including,
but not limited to, movements in the securities markets, certain depositary receipts, futures contracts and foreign currency exchange rates that have occurred subsequent to the close of the foreign securities exchange. These investments are
generally classified as Level 2 of the fair value hierarchy.
Derivative Contracts
A derivative is an instrument whose value is
derived from underlying assets, indices, reference rates or a combination of these factors. Exchange-traded derivatives, including futures contracts, typically fall within Level 1 of the fair value hierarchy.
i. Futures Contracts
Futures contracts are contracts to buy or sell a standardized quantity of a specified commodity or
security and are valued based on exchanged settlement prices or independent market quotes. Futures contracts are valued at the last settlement price, or in the absence of a sale, the last bid price for long positions and at the last ask price for
short positions, at the end of each day on the board of trade or exchange upon which they are traded. Upon entering into a futures contract, a Fund deposits cash or securities in an account on behalf of the broker in an amount sufficient to meet the
initial margin requirement. Subsequent payments are made or received by a Fund equal to the daily change in the contract value and are recorded as variation margin receivable or payable with a corresponding offset to unrealized gains or losses.
Short Term Investments
Short-term investments having a maturity of 60 days or less are generally valued at amortized cost which
approximates fair market value. These investments are classified as Level 2 of the fair value hierarchy.
B-14
B. Level 3 Fair Value Investments
To the extent that the aforementioned significant inputs are unobservable, or if quotations are not readily available, or if GSAMI believes that such quotations do not accurately reflect fair value, the
fair value of the Funds investments may be determined under Valuation Procedures approved by the Trustees. GSAMI, consistent with its procedures and applicable regulatory guidance, may make an adjustment to the most recent valuation prices of
either domestic or foreign securities in light of significant events to reflect what it believes to be the fair value of the securities at the time of determining the Funds NAV. Significant events which could affect a large number of
securities in a particular market may include, but are not limited to: significant fluctuations in U.S. or foreign markets; market dislocations; market disruptions; or unscheduled market closings. Significant events which could also affect a single
issuer may include, but are not limited to: corporate actions such as reorganizations, mergers and buy-outs; ratings downgrades; and bankruptcies.
C. Fair Value Hierarchy
The following is a summary of the Funds investments classified in the fair value hierarchy as of October 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock and/or Other Equity Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
North and South America
|
|
$
|
1,367,009
|
|
|
$
|
|
|
|
$
|
|
|
Other
|
|
|
1,431,719
|
|
|
|
79,197,089
|
|
|
|
|
|
Investment Companies
|
|
|
945,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,744,562
|
|
|
$
|
79,197,089
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.
INVESTMENTS IN DERIVATIVES
The following tables set forth, by certain risk types, the Funds gains (losses) related to these derivatives and their indicative volumes for the fiscal year ended October 31, 2013. These gains
(losses) should be considered in the context that these derivative contracts may have been executed to economically hedge certain investments, and accordingly, certain gains (losses) on such derivative contracts may offset certain (losses) gains
attributable to investments. These gains (losses) are included in Net realized gain (loss) or Net change in unrealized gain (loss) on the Statement of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
|
|
Statement of Operations
|
|
Net
Realized
Gain (Loss)
|
|
|
Net Change
in
Unrealized
Gain (Loss)
|
|
|
Average
Number of
Contracts
(a)
|
|
Equity
|
|
Net realized gain (loss) from futures contracts / Net change in unrealized gain (loss) on futures contracts
|
|
$
|
15,130
|
|
|
$
|
3,939
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a)
|
Average number of contracts is based on the average of month end balances for the fiscal year ended October 31, 2013
|
7. AGREEMENTS AND AFFILIATED TRANSACTIONS
A. Management Agreement
Under the Agreement, GSAMI manages the Fund, subject to the general supervision of the Trustees.
B-15
As compensation for the services rendered pursuant to the Agreement, the assumption of the
expenses related thereto and administration of the Funds business affairs, including providing facilities, GSAMI is entitled to a management fee, accrued daily and paid monthly, equal to an annual percentage rate of the Funds average
daily net assets.
For the fiscal year ended October 31, 2013, contractual and effective net management fees with GSAMI
were at the following rates:
|
|
|
|
|
|
|
|
|
|
|
First
$1 billion
|
|
Next
$1 billion
|
|
Next
$3 billion
|
|
Next
$3 billion
|
|
Over
$8 billion
|
|
Effective
Rate
|
1.00%
|
|
0.90%
|
|
0.86%
|
|
0.84%
|
|
0.82%
|
|
1.00%
|
B. Distribution and Service Plans
The Trust, on behalf of the Fund, has adopted Distribution and Service
Plans (the Plans). Under the Plans, Goldman Sachs, which serves as distributor (the Distributor), is entitled to a fee accrued daily and paid monthly, for distribution services and personal and account maintenance services,
which may then be paid by Goldman Sachs to authorized dealers, at the following annual rates calculated on the Funds average daily net assets of each respective share class:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution and Service Plan
Rates
|
|
|
|
Class
A
*
|
|
|
Class B
|
|
|
Class C
|
|
Distribution Plan
|
|
|
0.25
|
%
|
|
|
0.75
|
%
|
|
|
0.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Plan
|
|
|
|
|
|
|
0.25
|
|
|
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
With respect to Class A Shares, the Distributor at its discretion may use compensation for distribution services paid under the Distribution Plan to compensate service
organizations for personal and account maintenance services and expenses as long as such total compensation does not exceed the maximum cap on service fees imposed by the Financial Industry Regulatory Authority.
|
C. Distribution Agreement
Goldman Sachs, as Distributor of the shares of the Fund pursuant to a Distribution Agreement, may retain a
portion of the Class A front end sales charge and Class B and Class C Shares CDSC. During the fiscal year ended October 31, 2013, Goldman Sachs advised that it retained approximately $3,900 in front end sales charges and no
compensation for contingent deferred sale charges.
D. Transfer Agency Agreement
Goldman Sachs also serves as the transfer agent
of the Fund for a fee pursuant to Transfer Agency Agreement. The fees charged for such transfer agency services are accrued daily and paid monthly at annual rates as follows: 0.19% of the average daily net assets of Class A, Class B, Class C,
and Class IR Shares; and 0.04% of the average daily net assets of Institutional Shares.
E. Other Expense Agreements and Affiliated
Transactions
GSAMI has agreed to limit certain Other Expense of the Fund (excluding transfer agent fees and expenses, service fees and shareholder administration fees (as applicable), taxes, interest, brokerage fees,
litigation, indemnification, shareholder meetings and other extraordinary expenses) to the extent such expenses exceed, on an annual basis, 0.254% of the average daily net assets of the Fund. Such Other Expense reimbursements, if any, are accrued
daily and paid monthly. In addition, the Fund is not obligated to reimburse GSAMI for prior fiscal year expense reimbursements, if any. These Other Expense limitations will remain in place through at least March 24, 2014 and prior to such date GSAMI
may not terminate the arrangements without the approval of the Trustees. In addition, the Fund has entered into certain offset arrangements with the custodian and the transfer agent, which may result in a reduction of the Funds expenses and
are received irrespective of the application of the Other Expense limitations described above.
B-16
For the fiscal year ended October 31, 2013, The Fund had $304,861 and $1,262 of Other Expense
Reimbursements and Custody Fee Credits, respectively.
As of October 31, 2013, the amounts owed to affiliates were $72,643, $5,440 and
$4,975 for management, distribution and service, and transfer agent fees, respectively.
F. Line of Credit Facility
As of
October 31, 2013, the Fund participated in a $780,000,000 committed, unsecured revolving line of credit facility (the facility) together with other funds of the Trust and registered investment companies having management agreements
with GSAMI or its affiliates (Other Borrowers). Pursuant to the terms of the facility, the Fund and Other Borrowers could increase the credit amount by an additional $220,000,000, for a total of up to $1,000,000,000. This facility is to
be used solely for temporary or emergency purposes, which may include the funding of redemptions. The interest rate on borrowings is based on the federal funds rate. The facility also requires a fee to be paid by the Fund based on the amount of the
commitment that has not been utilized. For the fiscal year ended October 31, 2013, the Fund did not have any borrowings under the facility. Prior to May 8, 2013, the committed amount available through the facility was $630,000,000.
G. Other Transactions with Affiliates
For the fiscal year ended October 31, 2013, Goldman Sachs earned $190, in brokerage
commissions from portfolio transactions, including futures transactions executed with Goldman Sachs as the Futures Commission Merchant, on behalf of the Fund.
As of October 31, 2013, the Goldman Sachs Group, Inc. was beneficial owner of approximately 100% of Class IR Shares.
8. OTHER RISKS
The Funds risks include, but are not limited to, the following:
Foreign Custody Risk
A Fund that invests in foreign securities may hold such securities and foreign currency with foreign
banks, agents, and securities depositories appointed by the Funds custodian (each a Foreign Custodian). In some countries, Foreign Custodians may be subject to little or no regulatory oversight or independent evaluation of their
operations. Further, the laws of certain countries may place limitations on a Funds ability to recover its assets if a Foreign Custodian enters into bankruptcy. Investments in emerging markets may be subject to greater custody risks than
investments in more developed markets. Custody services in emerging market countries are often undeveloped and may be less regulated than in more developed countries, and thus may not afford the same level of investor protection as would apply in
developed countries.
Foreign Custody Risk
A Fund that invests in foreign securities may hold such securities and foreign
currency with foreign banks, agents, and securities depositories appointed by the Funds custodian (each a Foreign Custodian). In some countries, Foreign Custodians may be subject to little or no regulatory oversight or independent
evaluation of their operations. Further, the laws of certain countries may place limitations on a Funds ability to recover its assets if a Foreign Custodian enters into bankruptcy. Investments in emerging markets may be subject to greater
custody risks than investments in more developed markets. Custody services in emerging market countries are often undeveloped and may be less regulated than in more developed countries, and thus may not afford the same level of investor protection
as would apply in developed countries.
Investments in Other Investment Companies
As a shareholder of another investment
company, including an exchange traded fund (ETF), a Fund will directly bear its proportionate share of any management fees and other expenses paid by such other investment companies, in addition to the fees and expenses regularly borne
by the Fund. ETFs are subject to risks that do not apply to conventional mutual funds, including but not limited to the following: (i) the market price of the ETFs shares may trade at a premium or a discount to their NAV; and (ii) an
active trading market for an ETFs shares may not develop or be maintained.
B-17
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 a 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, a Fund may be forced to sell investments at an unfavorable time and/or under unfavorable conditions.
Market and Credit Risks
In the normal course of business, the Fund trades financial instruments and enter into financial
transactions where risk of potential loss exists due to changes in the market (market risk). Additionally, the Fund may also be exposed to credit risk in the event that an issuer fails to perform or that an institution or entity with which the Fund
has unsettled or open transactions defaults.
Investing in foreign markets may involve special risks and considerations not
typically associated with investing in the U.S. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and adverse political and economic developments. Moreover, securities issued in
these markets may be less liquid, be subject to government ownership controls, have delayed settlements and their prices may be more volatile than those of comparable securities in the U.S.
9. INDEMNIFICATIONS
Under the Trusts organizational documents, its Trustees,
officers, employees and agents are indemnified, to the extent permitted by the Act and state law, against certain liabilities that may arise out of performance of their duties to the Funds. Additionally, in the course of business, the Fund enters
into contracts that contain a variety of indemnification clauses. The Funds maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, GSAMI
believes the risk of loss under these arrangements to be remote.
CHINAN14DOC
3-14
B-18
PART C: OTHER INFORMATION
Article IV of the Declaration of Trust of Goldman Sachs Trust, a
Delaware statutory trust, provides for indemnification of the Trustees, officers and agents of the Trust, subject to certain limitations. The Declaration of Trust is incorporated by reference to Exhibit (1)(a).
The Management Agreement provides that the Investment Adviser will not be liable for any error of judgment or mistake of law or for any loss
suffered by a Fund, except a loss resulting from willful misfeasance, bad faith or gross negligence on the part of the Investment Adviser or from reckless disregard by the Investment Adviser of its obligations or duties under the Management
Agreement. The Management Agreement is incorporated by reference as Exhibit (6).
Section 9 of the Distribution Agreement between the
Registrant and Goldman Sachs dated April 30, 1997, as amended, and Section 7 of the Transfer Agency Agreement between the Registrant and Goldman, Sachs & Co. dated August 9, 2007 provides that the Registrant will indemnify
Goldman, Sachs & Co. against certain liabilities. Copies of the Distribution Agreement and the Transfer Agency Agreement are incorporated by reference as Exhibits (7)(a) and (b) and (13)(d) and (e) respectively.
Mutual fund and trustees and officers liability policies purchased jointly by the Registrant, Goldman Sachs Variable Insurance Trust, Goldman
Sachs Credit Strategies Fund, Goldman Sachs BDC, Inc., Goldman Sachs Trust II and Goldman Sachs MLP Income Opportunities Fund insure such persons and their respective trustees, partners, officers and employees, subject to the policies coverage
limits and exclusions and varying deductibles, against loss resulting from claims by reason of any act, error, omission, misstatement, misleading statement, neglect or breach of duty.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the Registrant has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is therefore
unenforceable.
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(1)
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(a) Agreement and Declaration of Trust dated January 28, 1997
1
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(b)
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Amendment No. 1 dated April 24, 1997 to Agreement and Declaration of Trust January 28, 1997
2
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(c)
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Amendment No. 2 dated July 21, 1997 to Agreement and Declaration of Trust dated January 28, 1997
2
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(d)
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Amendment No. 3 dated October 21, 1997 to the Agreement and Declaration of Trust dated January 28, 1997
3
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(e)
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Amendment No. 4 dated January 28, 1998 to the Agreement and Declaration of Trust dated January 28, 1997
3
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(f)
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Amendment No. 5 dated January 28, 1998 to Agreement and Declaration of Trust dated January 28, 1997
4
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(g)
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Amendment No. 6 dated July 22, 1998 to Agreement and Declaration of Trust dated January 28, 1997
4
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(h)
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Amendment No. 7 dated November 3, 1998 to Agreement and Declaration of Trust dated January 28, 1997
5
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(i)
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Amendment No. 8 dated January 22, 1999 to Agreement and Declaration of Trust dated January 28, 1997
6
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(j)
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Amendment No. 9 dated April 28, 1999 to Agreement and Declaration of Trust dated January 28, 1997
7
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(k)
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Amendment No. 10 dated July 27, 1999 to Agreement and Declaration of Trust dated January 28, 1997
8
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(l)
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Amendment No. 11 dated July 27, 1999 to Agreement and Declaration of Trust dated January 28, 1997
8
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(m)
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Amendment No. 12 dated October 26, 1999 to Agreement and Declaration of Trust dated January 28, 1997
9
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(n)
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Amendment No. 13 dated February 3, 2000 to Agreement and Declaration of Trust dated January 28, 1997
10
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(o)
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Amendment No. 14 dated April 26, 2000 to Agreement and Declaration of Trust dated January 28, 1997
11
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(p)
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Amendment No. 15 dated August 1, 2000 to Agreement and Declaration of Trust dated January 28, 1997
12
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(q)
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Amendment No. 16 dated January 30, 2001 to Agreement and Declaration of Trust dated January 28, 1997
13
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(r)
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Amendment No. 17 dated April 25, 2001 to Agreement and Declaration of Trust dated January 28, 1997
14
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(s)
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Amendment No. 18 dated July 1, 2002 to Agreement and Declaration of Trust dated January 28, 1997
15
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(t)
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Amendment No. 19 dated August 1, 2002 to Agreement and Declaration of Trust dated January 28, 1997
15
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(u)
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Amendment No. 20 dated August 1, 2002 to Agreement and Declaration of Trust dated January 28, 1997
15
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(v)
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Amendment No. 21 dated January 29, 2003 to the Agreement and Declaration of Trust dated January 28, 1997
16
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(w)
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Amendment No. 22 dated July 31, 2003 to the Agreement and Declaration of Trust dated January 28, 1997
17
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(x)
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Amendment No. 23 dated October 30, 2003 to the Agreement and Declaration of Trust dated January 28, 1997
17
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(y)
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Amendment No. 24 dated May 6, 2004 to the Agreement and Declaration of Trust dated January 28, 1997
18
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(z)
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Amendment No. 25 dated April 21, 2004 to the Agreement and Declaration of Trust dated January 28, 1997
19
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(aa)
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Amendment No. 26 dated November 4, 2004 to the Agreement and Declaration of Trust dated January 28, 1997
19
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(bb)
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Amendment No. 27 dated February 10, 2005 to the Agreement and Declaration of Trust dated January 28, 1997
20
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(cc)
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Amendment No. 28 dated May 12, 2005 to the Agreement and Declaration of Trust dated January 28, 1997
21
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(dd)
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Amendment No. 29 dated June 16, 2005 to the Agreement and Declaration of Trust dated January 28, 1997
21
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(ee)
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Amendment No. 30 dated August 4, 2005 to the Agreement and Declaration of Trust dated January 28, 1977
21
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(ff)
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Amendment No. 31 dated November 2, 2005 to the Agreement and Declaration of Trust dated January 28, 1997
22
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(gg)
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Amendment No. 32 dated December 31, 2005 to the Agreement and Declaration of Trust dated January 28, 1997
23
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(hh)
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Amendment No. 33 dated March 16, 2006 to the Agreement and Declaration of Trust dated January 28, 1997
22
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(ii)
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Amendment No. 34 dated March 16, 2006 to the Agreement and Declaration of Trust dated January 28, 1997
22
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(jj)
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Amendment No. 35 dated May 11, 2006 to the Agreement and Declaration of Trust dated January 28, 1997
24
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(kk)
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Amendment No. 36 dated June 15, 2006 to the Agreement and Declaration of Trust dated January 28, 1997
25
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(ll)
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Amendment No. 37 dated August 10, 2006 to the Agreement and Declaration of Trust dated January 28, 1997
26
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(mm)
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Amendment No. 38 dated November 9, 2006 to the Agreement and Declaration of Trust dated January 28, 1997
26
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(nn)
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Amendment No. 39 dated December 14, 2006 to the Agreement and Declaration of Trust dated January 28, 1997
27
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(oo)
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Amendment No. 40 dated December 14, 2006 to the Agreement and Declaration of Trust dated January 28, 1997
27
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(pp)
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Amendment No. 41 dated February 8, 2007 to the Agreement and Declaration of Trust dated January 28, 1997
27
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(qq)
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Amendment No. 42 dated March 15, 2007 to the Agreement and Declaration of Trust dated January 28, 1997
27
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(rr)
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Amendment No. 43 dated May 10, 2007 to the Agreement and Declaration of Trust dated January 28, 1997
27
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(ss)
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Amendment No. 44 dated June 13, 2007 to the Agreement and Declaration of Trust dated January 28, 1997
28
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(tt)
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Amendment No. 45 dated June 13, 2007 to the Agreement and Declaration of Trust dated January 28, 1997
29
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(uu)
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Amendment No. 46 dated November 8, 2007 to the Agreement and Declaration of Trust dated January 28, 1997
29
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(vv)
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Amendment No. 47 dated November 8, 2007 to the Agreement and Declaration of Trust dated January 28, 1997
29
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(ww)
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Amendment No. 48 dated December 13, 2007 to the Agreement and Declaration of Trust dated January 28, 1997
30
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(xx)
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Amendment No. 49 dated June 19, 2008 to the Agreement and Declaration of Trust dated January 28, 1997
31
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(yy)
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Amendment No. 50 dated August 14, 2008 to the Agreement and Declaration of Trust dated January 28, 1997
32
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(zz)
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Amendment No. 51 dated August 25, 2008 to the Agreement and Declaration of Trust dated January 28, 1997
33
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(aaa)
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Amendment No. 52 dated November 13, 2008 to the Agreement and Declaration of Trust dated January 28, 1997
33
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(bbb)
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Amendment No. 53 dated May 21, 2009 to the Agreement and Declaration of Trust dated January 28, 1997
34
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(ccc)
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Amendment No. 54 dated November 19, 2009 to the Agreement and Declaration of Trust dated January 28, 1997
34
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(ddd)
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Amendment No. 55 dated February 11, 2010 to the Agreement and Declaration of Trust dated January 28, 1997
35
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(eee)
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Amendment No. 56 dated May 20, 2010 to the Agreement and Declaration of Trust dated January 28, 1997
36
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(fff)
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Amendment No. 57 dated June 17, 2010 to the Agreement and Declaration of Trust dated January 28, 1997
36
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(ggg)
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Amendment No. 58 dated November 18, 2010 to the Agreement and Declaration of Trust dated January 28, 1997
37
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(hhh)
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Amendment No. 59 dated January 5, 2011 to the Agreement and Declaration of Trust dated January 28, 1997
38
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(iii)
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Amendment No. 60 dated February 10, 2011 to the Agreement and Declaration of Trust dated January 28, 1997
38
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(jjj)
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Amendment No. 61 dated February 10, 2011 to the Agreement and Declaration of Trust dated January 28, 1997
38
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(kkk)
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Amendment No. 62 dated June 16, 2011 to the Agreement and Declaration of Trust dated January 28, 1997
39
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(lll)
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Amendment No. 63 dated August 18, 2011 to the Agreement and Declaration of Trust dated January 28, 1997
40
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(mmm)
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Amendment No. 64 dated September 27, 2011 to the Agreement and Declaration of Trust dated January 28, 1997
41
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(nnn)
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Amendment No. 65 dated October 20, 2011 to the Agreement and Declaration of Trust dated January 28, 1997
41
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(ooo)
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Amendment No. 66 dated December 15, 2011 to the Agreement and Declaration of Trust dated January 28, 1997
42
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(ppp)
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Amendment No. 67 dated April 19, 2012 to the Agreement and Declaration of Trust dated January 28, 1997
43
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(qqq)
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Amendment No. 68 dated August 16, 2012 to the Agreement and Declaration of Trust dated January 28, 1997
44
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(rrr)
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Amendment No. 69 dated December 13, 2012 to the Agreement and Declaration of Trust dated January 28, 1997
45
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(sss)
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Amendment No. 70 dated February 12, 2013 to the Agreement and Declaration of Trust dated January 28, 1997
46
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(ttt)
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Amendment No. 71 dated April 18, 2013 to the Agreement and Declaration of Trust dated January 28, 1997
47
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(uuu)
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Amendment No. 72 dated June 13, 2013 to the Agreement and Declaration of Trust dated January 28, 1997
48/
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(vvv)
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Amendment No. 73 dated August 15, 2013 to the Agreement and Declaration of Trust dated January 28, 1997
49
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(www)
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Amendment No. 74 dated September 19, 2013 to the Agreement and Declaration of Trust dated January 28, 1997
50
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(xxx)
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Amendment No. 75 dated October 17, 2013 to the Agreement and Declaration of Trust dated January 28, 1997
51
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(yyy)
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Amendment No. 76 dated November 8, 2013 to the Agreement and Declaration of Trust dated January 28, 1997
52
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(zzz)
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Amendment No. 77 dated December 19, 2013 to the Agreement and Declaration of Trust dated January 28, 1997
53
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(aaaa)
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Amendment No. 78 dated February 11, 2014 to the Agreement and Declaration of Trust dated January 28, 1997
54
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(2)
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Amended and Restated By-Laws of Goldman Sachs Trust dated August 15, 2013
55
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(4)
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Form of Agreement and Plan of Reorganization is included in Part A to the Registration Statement on Form N-14.
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(5)
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Instruments Defining the Rights of Holders of Registrants Shares of Beneficial Interest
56
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(6)
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(a) Management Agreement dated April 30, 1997 between Registrant, Goldman Sachs Asset Management, Goldman Sachs Fund Management L.P. and Goldman Sachs Asset Management International
57
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(b) Amended Annex A dated December 19, 2013 to the Management Agreement dated April 30, 1997 between Registrant, Goldman Sachs Asset Management, Goldman Sachs Fund Management L.P. and Goldman Sachs Asset
Management International
59
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(7)
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(a) Distribution Agreement dated April 30, 1997
17
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|
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(b) Amended Exhibit A dated December 19, 2013 to the Distribution Agreement dated April 30, 1997
59
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(9)
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(a) Global Custody Agreement dated June 30, 2006 between Registrant and JPMorgan Chase Bank, N.A.
65
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(10)
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(a) Class A Distribution and Service Plan amended and restated as of May 5, 2004
19
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(b)
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Class B Distribution and Service Plan amended and restated as of February 4, 2004
83
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(c)
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Class C Distribution and Service Plan amended and restated as of February 4, 2004
83
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(d)
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Plan in Accordance with Rule 18f-3, amended and restated as of December 1, 2010
82
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(11)
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Opinion and Consent of Dechert LLP, filed herewith
|
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(12)
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Form of Opinion of Dechert LLP supporting the tax matters and consequences to shareholders discussed in the Prospectus/Information Statement
87
/, filed herewith
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(13)
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(a) First Amendment dated July 18, 1994 to Amended and Restated Wiring Agreement dated January 25, 1994
|
|
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among Goldman, Sachs & Co., State Street Bank and Trust Company and The Northern Trust Company
77
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(b)
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Amended and Restated Wiring Agreement dated January 25, 1994 among Goldman, Sachs & Co., State Street Bank and Trust Company and The Northern Trust Company
77
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(c)
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Letter Agreement dated June 20, 1987 regarding use of checking account between Registrant and The Northern Trust Company
78
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(d)
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Amended and Restated Transfer Agency Agreement dated August 9, 2007 between Registrant and Goldman, Sachs & Co.
79
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(e)
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Amended and Restated Transfer Agency Agreement Fee Schedule dated December 19, 2013, to the Transfer Agency Agreement dated August 9, 2007 between Registrant and Goldman, Sachs & Co.
59
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(f)
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Form of Retail Service Agreement on behalf of Goldman Sachs Trust relating to Class A Shares of Goldman Sachs Asset Allocation Portfolios, Goldman Sachs Fixed Income Funds, Goldman Sachs Domestic Equity Funds and
Goldman Sachs International Equity Funds
5
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(g)
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Form of Retail Service Agreement on behalf of Goldman Sachs Trust TPA Assistance Version relating to the Class A Shares of Goldman Sachs Asset Allocation Portfolios, Goldman Sachs Fixed Income Funds, Goldman
Sachs Domestic Equity Funds and Goldman Sachs International Equity Funds
80
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(h)
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Form of Supplemental Service Agreement on behalf of Goldman Sachs Trust relating to the Class A Shares and Service Shares of Goldman Sachs Equity and Fixed Income Funds
80
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(i)
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Form of Service Agreement on behalf of Goldman Sachs Trust relating to the Institutional Class, Select Class, Preferred Class, Capital Class, Administration Class, Premier Class, Service Class, Resource Class and Cash
Management Class, as applicable, of Goldman Sachs Financial Square Funds, Goldman Sachs Fixed Income Funds, Goldman Sachs Domestic Equity Funds, Goldman Sachs International Equity Funds and Goldman Sachs Fund of Funds Portfolios
81
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(j)
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Mutual Funds Service Agreement dated June 30, 2006 between Registrant and J.P. Morgan Investor Services Co.
65
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(k)
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Code of Ethics Goldman Sachs Trust, Goldman Sachs Variable Insurance Trust and Goldman Sachs Credit Strategies Fund dated April 23, 1997, as amended effective June 1, 2012
48/
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(l)
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Code of Ethics Goldman, Sachs & Co., Goldman Sachs Asset Management, L.P., Goldman Sachs Asset Management International, Goldman Sachs Hedge Fund Strategies LLC and GS Investment Strategies, LLC dated
January 23, 1991, effective February 6, 2012
47
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(14)
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Consent of Independent Registered Public Accounting Firm, filed herewith
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(16)
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Powers of Attorney for James A. McNamara, Ashok N. Bakhru, Donald C. Burke, John P. Coblentz, Jr., Diana M. Daniels, Joseph P. LoRusso, Herbert J. Markley, Jessica Palmer, Alan A. Shuch, Richard P. Strubel and Roy W.
Templin
87
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(17)
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(a) Prospectus and Statement of Additional Information of Goldman Sachs Asia Equity and China Equity Funds, dated
|
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February
|
28, 2014, as supplemented, filed herewith
|
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(b)
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Audited Financials of the Annual Report of Goldman Sachs Asia Equity and China Equity Funds for the fiscal year ended October 31, 2013
87/
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1/
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Incorporated by reference from Post-Effective Amendment No. 29 to the Registrants registration statement, SEC File No. 33-17619, filed February 14, 1997.
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2/
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Incorporated by reference from Post-Effective Amendment No. 40 to the Registrants registration statement, SEC File No. 33-17619, filed October 16, 1997.
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3/
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Incorporated by reference from Post-Effective Amendment No. 41 to the Registrants registration statement, SEC File No. 33-17619, filed February 13, 1998.
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4/
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Incorporated by reference from Post-Effective Amendment No. 47 to the Registrants registration statement, SEC File No. 33-17619, filed October 1, 1998.
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5/
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Incorporated by reference from Post-Effective Amendment No. 50 to the Registrants registration statement, SEC File No. 33-17619, filed December 29, 1998.
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6/
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Incorporated by reference from Post-Effective Amendment No. 52 to the Registrants registration statement, SEC File No. 33-17619, filed February 12, 1999.
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7/
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Incorporated by reference from Post-Effective Amendment No. 55 to the Registrants registration statement, SEC File No. 33-17619, filed July 16, 1999.
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8/
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Incorporated by reference from Post-Effective Amendment No. 56 to the Registrants registration statement, SEC File No. 33-17619, filed September 16, 1999.
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9/
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Incorporated by reference from Post-Effective Amendment No. 58 to the Registrants registration statement, SEC File No. 33-17619, filed November 22, 1999.
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10/
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Incorporated by reference from Post-Effective Amendment No. 62 to the Registrants registration statement, SEC File No. 33-17619, filed February 23, 2000.
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11/
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Incorporated by reference from Post-Effective Amendment No. 65 to the Registrants registration statement, SEC File No. 33-17619, filed May 3, 2000.
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12/
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Incorporated by reference from Post-Effective Amendment No. 68 to the Registrants registration statement, SEC File No. 33-17619, filed November 22, 2000.
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13/
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Incorporated by reference from Post-Effective Amendment No. 72 to the Registrants registration statement, SEC File No. 33-17619, filed April 13, 2001.
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14/
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Incorporated by reference from Post-Effective Amendment No. 73 to the Registrants registration statement, SEC File No. 33-17619, filed December 21, 2001.
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15/
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Incorporated by reference from Post-Effective Amendment No. 79 to the Registrants registration statement, SEC File No. 33-17619, filed December 11, 2002.
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16/
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Incorporated by reference from Post-Effective Amendment No. 81 to the Registrants registration statement, SEC File No. 33-17619, filed February 19, 2003.
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17/
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Incorporated by reference from Post-Effective Amendment No. 85 to the Registrants registration statement, SEC File No. 33-17619, filed December 12, 2003.
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18/
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Incorporated by reference from the Registrants Registration Statement on Form N-14 relating to the Registrants acquisition of the Golden Oak
®
Family
of Funds (Acquisition), SEC File No. 333-117561, filed July 22, 2004.
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19/
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Incorporated by reference from Post-Effective Amendment No. 93 to the Registrants registration statement, SEC File No. 33-17619, filed December 23, 2004.
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20/
|
Incorporated by reference from Post-Effective Amendment No. 103 to the Registrants registration statement, SEC File No. 33-17619, filed June 17, 2005.
|
21/
|
Incorporated by reference from Post-Effective Amendment No. 112 to the Registrants registration statement, SEC File No. 33-17619, filed December 7, 2005.
|
22/
|
Incorporated by reference from Post-Effective Amendment No. 127 to the Registrants registration statement, SEC File No. 33-17619, filed May 26, 2006.
|
23/
|
Incorporated by reference from Post-Effective Amendment No. 114 to the Registrants registration statement, SEC File No. 33-17619, filed December 29, 2005.
|
24/
|
Incorporated by reference from Post-Effective Amendment No. 133 to the Registrants registration statement, SEC File No. 33-17619, filed August 18, 2006.
|
25/
|
Incorporated by reference from Post-Effective Amendment No. 129 to the Registrants registration statement, SEC File No. 33-17619, filed June 23, 2006.
|
26/
|
Incorporated by reference from Post-Effective Amendment No. 143 to the Registrants registration statement, SEC File No. 33-17619, filed December 21, 2006.
|
27/
|
Incorporated by reference from Post-Effective Amendment No. 159 to the Registrants registration statement, SEC File No. 33-17619, filed June 12, 2007.
|
28/
|
Incorporated by reference from Post-Effective Amendment No. 162 to the Registrants registration statement, SEC File No. 33-17619, filed August 14, 2007.
|
29/
|
Incorporated by reference from Post-Effective Amendment No. 173 to the Registrants registration statement, SEC File No. 33-17619, filed November 27, 2007.
|
30/
|
Incorporated by reference from Post-Effective Amendment No. 183 to the Registrants registration statement, SEC File No. 33-17619, filed January 18, 2008.
|
31/
|
Incorporated by reference from Post-Effective Amendment No. 205 to the Registrants registration statement, SEC File No. 33-17619, filed July 29, 2008.
|
32/
|
Incorporated by reference from Post-Effective Amendment No. 206 to the Registrants registration statement, SEC File No. 33-17619, filed August 27, 2008.
|
33/
|
Incorporated by reference from Post-Effective Amendment No. 217 to the Registrants registration statement, SEC File No. 33-17619, filed February 27, 2009.
|
34/
|
Incorporated by reference from Post-Effective Amendment No. 226 to the Registrants registration statement, SEC File No. 33-17619, filed November 24, 2009.
|
35/
|
Incorporated by reference from Post-Effective Amendment No. 242 to the Registrants registration statement, SEC File No. 33-17619, filed April 30, 2010.
|
36/
|
Incorporated by reference from Post-Effective Amendment No. 249 to the Registrants registration statement, SEC File No. 33-17619, filed June 30, 2010.
|
37/
|
Incorporated by reference from Post-Effective Amendment No. 261 to the Registrants registration statement, SEC File No. 33-17619, filed December 3, 2010.
|
38/
|
Incorporated by reference from Post-Effective Amendment No. 270 to the Registrants registration statement, SEC File No. 33-17619, filed February 16, 2011.
|
39/
|
Incorporated by reference from Post-Effective Amendment No. 285 to the Registrants registration statement, SEC File No. 33-17619, filed July 29, 2011.
|
40/
|
Incorporated by reference from Post-Effective Amendment No. 290 to the Registrants registration statement, SEC File No. 33-17619, filed December 12, 2011.
|
41/
|
Incorporated by reference from Post-Effective Amendment No. 291 to the Registrants registration statement, SEC File No. 33-17619, filed December 16, 2011.
|
42/
|
Incorporated by reference from Post-Effective Amendment No. 292 to the Registrants registration statement, SEC File No. 33-17619, filed December 23, 2011.
|
43/
|
Incorporated by reference from Post-Effective Amendment No. 321 to the Registrants registration statement, SEC File No. 33-17619, filed April 27, 2012.
|
44/
|
Incorporated by reference from Post-Effective Amendment No. 333 to the Registrants registration statement, SEC File No. 33-17619, filed September 24, 2012.
|
45/
|
Incorporated by reference from Post-Effective Amendment No. 346 to the Registrants registration statement, SEC File No. 33-17619, filed January 28, 2013.
|
46/
|
Incorporated by reference from Post-Effective Amendment No. 348 to the Registrants registration statement, SEC File No. 33-17619, filed February 28, 2013.
|
47/
|
Incorporated by reference from Post-Effective Amendment No. 355 to the Registrants registration statement, SEC File No. 33-17619, filed April 30, 2013.
|
48/
|
Incorporated by reference from Post-Effective Amendment No. 363 to the Registrants registration statement, SEC File No. 33-17619, filed July 29, 2013.
|
49/
|
Incorporated by reference from Post-Effective Amendment No. 366 to the Registrants registration statement, SEC File No. 33-17619, filed September 12, 2013.
|
50/
|
Incorporated by reference from Post-Effective Amendment No. 368 to the Registrants registration statement, SEC File No. 33-17619, filed September 26, 2013.
|
51/
|
Incorporated by reference from Post-Effective Amendment No. 369 to the Registrants registration statement, SEC File No. 33-17619, filed October 25, 2013.
|
52/
|
Incorporated by reference from Post-Effective Amendment No. 375 to the Registrants registration statement, SEC File No. 33-17619, filed December 13, 2013.
|
53/
|
Incorporated by reference from Post-Effective Amendment No. 376 to the Registrants registration statement, SEC File no. 33-17619, filed December 26, 2013.
|
54/
|
Incorporated by reference from Post-Effective Amendment No. 393 to the Registrants registration statement, SEC File No. 33-17619, filed February 21, 2014.
|
55/
|
Incorporated by reference from Post-Effective Amendment No. 364 to the Registrants registration statement, SEC File No. 33-17619, filed August 16, 2013.
|
56/
|
Article II, Section 10, Article IV, Section 3, Article V, Article VI, Article VII, Article IX, Section 8 and Section 9 of the Registrants Agreement and Declaration of
Trust incorporated herein by reference as Exhibit (a)(1) and Article III of the Registrants Amended and Restated By-Laws incorporated by reference as Exhibit (b)(3).
|
57/
|
Incorporated by reference from Post-Effective Amendment No. 48 to the Registrants registration statement, SEC File No. 33-17619, filed November 25, 1998.
|
58/
|
Incorporated by reference from Post-Effective Amendment No. 195 to the Registrants registration statement, SEC File No. 33-17619, filed February 29, 2008.
|
59/
|
Incorporated by reference from Post-Effective Amendment No. 387 to the Registrants registration statement, SEC File No. 33-17619, filed January 30, 2014.
|
60/
|
Incorporated by reference from Post-Effective Amendment No. 311 to the Registrants registration statement, SEC File No. 33-17619, filed February 27, 2012.
|
61/
|
Incorporated by reference from Post-Effective Amendment No. 83 to the Registrants registration statement, SEC File No. 33-17619, filed June 13, 2003.
|
62/
|
Incorporated by reference from Post-Effective Amendment No. 26 to the Registrants registration statement, SEC File No. 33-17619, filed December 29, 1995.
|
63/
|
Incorporated by reference from Post-Effective Amendment No. 59 to the Registrants registration statement, SEC File No. 33-17619, filed December 1, 1999.
|
64/
|
Incorporated by reference from Post-Effective Amendment No. 75 to the Registrants registration statement, SEC File No. 33-17619, filed April 15, 2002.
|
65/
|
Incorporated by reference from Post-Effective Amendment No. 149 to the Registrants registration statement, SEC File No. 33-17619, filed January 19, 2007.
|
66/
|
Incorporated by reference from Post-Effective Amendment No. 218 to the Registrants registration statement, SEC File No. 33-17619, filed April 30, 2009.
|
67/
|
Incorporated by reference from Post-Effective Amendment No. 233 to the Registrants registration statement, SEC File No. 33-17619, filed December 28, 2009.
|
68/
|
Incorporated by reference from Post-Effective Amendment No. 229 to the Registrants registration statement, SEC File No. 33-17619, filed December 24, 2009.
|
69/
|
Incorporated by reference from Post-Effective Amendment No. 277 to the Registrants registration statement, SEC File No. 33-17619, filed April 5, 2011.
|
70/
|
Incorporated by reference from Post-Effective Amendment No. 279 to the Registrants registration statement, SEC File No. 33-17619, filed April 28, 2011.
|
71/
|
Incorporated by reference from Post-Effective Amendment No. 304 to the Registrants registration statement, SEC File No. 33-17619, filed January 25, 2012.
|
72/
|
Incorporated by reference from Post-Effective Amendment No. 312 to the Registrants registration statement, SEC File No. 33-17619, filed February 27, 2012.
|
73/
|
Incorporated by reference from Post-Effective Amendment No. 313 to the Registrants registration statement, SEC File No. 33-17619, filed February 28, 2012.
|
74/
|
Incorporated by reference from Post-Effective Amendment No. 338 to the Registrants registration statement, SEC File No. 33-17619, filed December 21, 2012.
|
75/
|
Incorporated by reference from Post-Effective Amendment No. 353 to the Registrants registration statement, SEC File No. 33-17618, filed March 25, 2013.
|
76/
|
Incorporated by reference from Post-Effective Amendment No. 360 to the Registrants registration statement. SEC File No. 33-17619, filed May 28, 2013.
|
77/
|
Incorporated by reference from Post-Effective Amendment No. 222 to the Registrants registration statement, SEC File. No. 33-17619, filed July 28, 2009.
|
78/
|
Incorporated by reference from Post-Effective Amendment No. 43 to the Registrants registration statement, SEC File No. 33-17619, filed March 2, 1998.
|
79/
|
Incorporated by reference from Post-Effective Amendment No. 175 to the Registrants registration statement, SEC File No. 33-17619, filed December 10, 2007.
|
80/
|
Incorporated by reference from Post-Effective Amendment No. 198 to the Registrants registration statement, SEC File No. 33-17619, filed April 28, 2008.
|
81/
|
Incorporated by reference from Post-Effective Amendment No. 252 to the Registrants registration statement, SEC File No. 33-17619, filed July 29, 2010.
|
82/
|
Incorporated by reference from Post-Effective Amendment No. 263 to the Registrants registration statement, SEC File No. 33-17619, filed December 29, 2010.
|
83/
|
Incorporated by reference from Post-Effective Amendment No. 86 to the Registrants registration statement, SEC File No. 33-17619, filed February 24, 2004.
|
84/
|
Incorporated by reference from Post-Effective Amendment No. 245 to the Registrants registration statement, SEC File No. 33-17619, filed May 14, 2010.
|
85/
|
Incorporated by reference from Post-Effective Amendment No. 331 to the Registrants registration statement, SEC File No. 33-17619, filed August 31, 2012.
|
86/
|
Incorporated by reference from Post-Effective Amendment No. 370 to the Registrants registration statement, SEC File No. 33-17619, filed November 15, 2013.
|
87/
|
Incorporated by reference from Registrants registration statement on Form N-14, SEC File No. 333-194085, filed February 21, 2014.
|
(1)
|
The undersigned Registrant agrees that prior to any public reoffering of the securities registered through the use of a prospectus which is a part of
this registration statement by any person or party who is deemed to be
|
|
an underwriter within the meaning of Rule 145(c) of the Securities Act [17 CFR 230.145c], the reoffering prospectus will contain the information called for by the applicable registration form for
the reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.
|
(2)
|
The undersigned Registrant agrees that every prospectus that is filed under paragraph (1) above will be filed as a part of an amendment to the registration statement and will not be used until the amendment is
effective, and that, in determining any liability under the 1933 Act, each post-effective amendment shall be deemed to be a new registration statement for the securities offered therein, and the offering of the securities at that time shall be
deemed to be the initial bona fide offering of them.
|
(3)
|
The Registrant hereby undertakes to file, by post-effective amendment, the final opinion of Dechert LLP supporting the tax consequences of the proposed reorganization as soon as practicable after the closing of the
reorganization.
|
SIGNATURES
As required by the Securities Act of 1933, this registration statement has been filed on behalf of the Registrant, in the City and State of
New York on the 20
th
day of March, 2014.
|
|
|
GOLDMAN SACHS TRUST,
on behalf of its series:
Goldman Sachs Asia Equity Fund
(A Delaware
statutory trust)
|
|
|
By:
|
|
/s/ Andrew Murphy
|
|
|
Andrew Murphy
Assistant
Secretary
|
As required by the Securities Act of 1933, this registration statement has been signed by the following
persons in the capacities and on the dates indicated.
|
|
|
|
|
Name
|
|
Title
|
|
Date
|
|
|
|
1
James A. McNamara
James A. McNamara
|
|
President (Chief Executive Officer) and Trustee
|
|
March 20, 2014
|
|
|
|
1
Scott M. McHugh
Scott M. McHugh
|
|
Treasurer, Senior Vice President and Principal Financial Officer
|
|
March 20, 2014
|
|
|
|
1
Ashok N. Bakhru
Ashok N. Bakhru
|
|
Chairman and Trustee
|
|
March 20, 2014
|
|
|
|
1
Donald C. Burke
Donald C. Burke
|
|
Trustee
|
|
March 20, 2014
|
|
|
|
1
John P. Coblentz, Jr.
John P. Coblentz, Jr.
|
|
Trustee
|
|
March 20, 2014
|
|
|
|
1
Diana M. Daniels
Diana M. Daniels
|
|
Trustee
|
|
March 20, 2014
|
|
|
|
1
Joseph P. LoRusso
Joseph P. LoRusso
|
|
Trustee
|
|
March 20, 2014
|
|
|
|
1
Herbert J. Markley
Herbert J. Markley
|
|
Trustee
|
|
March 20, 2014
|
|
|
|
1
Jessica Palmer
Jessica Palmer
|
|
Trustee
|
|
March 20, 2014
|
|
|
|
1
Alan A. Shuch
Alan A. Shuch
|
|
Trustee
|
|
March 20, 2014
|
|
|
|
1
Richard P. Strubel
Richard P. Strubel
|
|
Trustee
|
|
March 20, 2014
|
|
|
|
1
Roy W. Templin
Roy W. Templin
|
|
Trustee
|
|
March 20, 2014
|
|
|
|
|
|
By:
|
|
/s/ Andrew Murphy
|
|
|
Andrew Murphy,
Attorney-In-Fact
|
1
|
Pursuant to powers of attorney previously filed.
|
EXHIBIT INDEX
(11)
|
Opinion and Consent of Dechert LLP
|
(14)
|
Consent of Independent Registered Public Accounting Firm
|
(17) (a)
|
Prospectus and Statement of Additional Information of Goldman Sachs Asia Equity and China Equity Funds, dated February 28, 2014, as supplemented.
|
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