Bringing Alternatives Within Reach

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2 Bringing Alternatives Within Reach Goldman Sachs Multi-Manager Alternatives Fund (Ticker: GSMMX)

3 Mutual funds pursuing alternative investment strategies, also known as alternative mutual funds, open up additional investment options by offering access to strategies previously only available to large institutions, like pensions and endowments, and certain individual investors. Managed by Goldman Sachs Asset Management (GSAM), the Goldman Sachs Multi-Manager Alternatives Fund is a daily liquid mutual fund providing investors access to leading alternative investment managers. Note that alternative investing is not suitable for all investors and alternative mutual funds are not riskless investments, so investors can lose money. Please see page 14 for additional risk considerations.

4 Alternative Taking a different approach Familiar investments, differentiated strategies Alternative strategies generally use traditional investments, like stocks and bonds, and apply a variety of non-traditional investment approaches, such as shorting, in an effort to provide differentiated returns. Alternative strategies can also invest in other asset classes, such as real estate or commodities. An alternate path for generating returns Alternative strategies may benefit from a more flexible investment approach, allowing them to potentially behave more independently than traditional investments. They often use this flexibility to seek more consistent returns over time, potentially offering an additional source of return and stability as investors try to reach long-term goals. New options with a long history For many years, alternatives have only been available to institutions, like pensions and endowments, and certain individual investors. But new developments in the mutual fund industry have provided options for nearly every investor to gain access to the differentiated return characteristics of alternative investments with the daily liquidity of mutual funds. 1 As of December 31, Assets under supervision include assets under management and other client assets for which Goldman Sachs does not have full discretion. In June 1997, The Goldman Sachs Group, Inc. acquired the assets and business of Commodities Corporation Limited.

5 In today s markets, experience matters. With over $1 trillion in assets under supervision, GSAM is one of the largest investment managers in the world, with more than 30 years of experience managing both alternatives and mutual funds for clients globally. 1

6 High-quality alternative investments are hard to find. We draw upon our deep, global team with on-the-ground strategy expertise and existing relationships with over 500 investment managers to identify leading investment opportunities among thousands of potential candidates on an ongoing basis. 2

7 Selective Finding the right elements A big universe of options In 2004, fewer than 100 alternative mutual funds existed. Today, there are over 600 funds, as classified by Morningstar. As the pool of alternative mutual funds continues to grow, investors evaluating these strategies need to approach the space through a focused lens. 2 Not all funds are equal The difference in performance between the top and bottom alternative investment managers can be significant, since investment skill and ability to implement vary. Selecting high-quality managers and avoiding the worst performers can have a big impact on returns, especially during times of market stress. Past performance is not predictive Yesterday s winners can turn into tomorrow s losers as markets evolve and conditions change. Picking alternative investment managers based on skill and capability can potentially yield more consistent results than simply chasing the best prior returns. 2 As of December 31, 2015.

8 Resilient Adapting to today s environment In today s markets, change is constant It s impossible to know the future with any certainty, but investors should be prepared for a variety of possibilities. Staying nimble can be an advantage when conditions change unpredictably and when new opportunities unexpectedly arise. Keeping up with the new, re-examining the old The search for high-quality alternative investment managers is continuous, as new strategies emerge and existing strategies evolve. A constant review of the opportunities, in the context of today s environment, helps inform decisions on what to keep and what to change. Deliberate decisions, immediate action While new ideas and directions must be considered carefully, actions need to be swift and definitive. Daily liquidity provides the ability to move quickly and decisively as the world changes. 3 GSAM leverages the resources of Goldman, Sachs & Co. subject to legal, internal and regulatory restrictions.

9 With change, comes opportunity. GSMMX capitalizes on Goldman Sachs real-time market insights, investment experience and risk management expertise, seeking to identify opportunities in the market cycle and manage portfolio losses over time. 3

10 A thoughtfully diversified portfolio of alternatives may provide a smoother investment experience over various market cycles. GSMMX is a comprehensive multi-strategy, multi-manager fund seeking to benefit from a diverse lineup of managers across the spectrum of liquid alternative strategies in a single vehicle.

11 Diversified Completing the balance Access to a breadth of opportunities A diversified multi-manager fund can offer investors a turn-key solution to building their alternatives allocation. This approach not only provides investors with potential for diversification, but also access to strategies that may benefit from a broad array of market developments. Multiple leading investment managers A multi-manager approach can offer access to several leading alternative investment managers. Each manager has a different skill set that contributes to the overall performance of the portfolio. Balanced across a variety of strategies Each alternative investment strategy has distinct drivers of returns and characteristics that can play different roles in a portfolio. Thoughtfully combining strategies can yield a portfolio with lower risk without materially reducing expected returns. Diversification does not protect an investor from market risk and does not ensure a profit.

12 GSMMX The Comprehensive Solution to Your Alternatives Allocation GSMMX is a mutual fund that provides investors access to a diverse group of leading alternatives managers across a range of strategies. Combining these investments from across the alternatives universe, GSMMX continually seeks to adapt to dynamic markets to deliver the potential benefits of alternatives to investors.

13 The GSMMX Team GSAM is a global asset manager overseeing more than $1 trillion of assets. Our investment teams capitalize on the market insights, risk management expertise and technology of Goldman Sachs. 4 With more than 2,000 professionals across 34 offices worldwide, GSAM helps investors navigate today s dynamic markets and identify the opportunities that shape their long-term investment goals. GSMMX is managed by a dedicated group of over 300 alternative investment specialists who seek to identify leading traditional and alternative investment managers from outside of Goldman Sachs. 4 Kent Clark Jason Gottlieb Ryan Roderick Betsy Gorton Managing Director CIO overseeing GSMMX Portfolio Manager Managing Director Portfolio Manager Managing Director Portfolio Manager Managing Director Portfolio Manager 25 years of industry experience 24 years of industry experience 18 years of industry experience 15 years of industry experience Alternatives are incredibly dynamic and exciting places to invest. Our process is continually evolving to meet the changing nature of alternatives as we seek to deliver great portfolios to our investors. We believe today s complex markets require sophisticated investment techniques that can enhance a traditional portfolio, and bring investors closer to their long-term goals. We look forward to extending the capabilities of our large team and our experience in manager selection, portfolio construction and risk management to the daily liquid alternatives market. We believe our dedicated alternatives expertise, combined with GSAM s established mutual fund business, will provide a differentiated solution for our investors. 4 As of December 31, Assets under supervision include assets under management and other client assets for which Goldman Sachs does not have full discretion. GSAM leverages the resources of Goldman, Sachs & Co. subject to legal, internal and regulatory restrictions.

14 Goldman Sachs Multi-Manager Alternatives Fund Risk Considerations The Goldman Sachs Multi-Manager Alternatives Fund allocates its assets among multiple investment managers ( Underlying Managers ) who are unaffiliated with the Investment Adviser and who employ one or more non-traditional and alternative investment strategies. A strategy implemented by an Underlying Manager and/ or the use of quantitative models to implement that strategy may fail to produce the intended results. Different investment styles (e.g., alternative ) tend to shift in and out of favor, and at times the Fund may underperform other funds that invest in similar asset classes. Investments in liquid alternatives expose investors to risks that have the potential to result in losses. These strategies involve risks that may not be present in more traditional (e.g., equity or fixed income) mutual funds. These strategies generally may seek sources of returns that perform differently from broader securities markets. However, correlations among different asset classes may shift over time, and if this occurs a fund s performance may track broader markets. In addition, if returns are in fact uncorrelated to the broader securities markets, they may underperform those markets. For example, in periods of robust equity market returns, returns from the Fund may be lower or negative. The Fund s equity investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular sectors and/or general economic conditions. The securities of mid- and small-capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. The Fund s investments in fixed income securities and loans are subject to the risks associated with debt securities generally, including credit, interest rate, liquidity, call and extension risk. Foreign and emerging market investments may be more volatile and less liquid than investments in U.S. securities and will be subject to the risks of currency fluctuations and adverse economic or political developments. The use of alternative investment techniques such as shorting or leveraging creates an opportunity for increased returns but also creates the possibility for greater loss. Leverage increases a Fund s sensitivity to market movements. Funds that use leverage can be expected to be more volatile than other funds that do not use leverage. This means if the instruments such a Fund buys decrease in market value, the value of the Fund s shares will decrease by even more. Losses on short positions are potentially unlimited, since the positions lose value as the asset that was sold short increases in value. Taking short positions leverages a Fund s assets, because the Fund is exposed to market movements beyond the amount of its actual investments. Derivative instruments may involve a high degree of financial risk. These risks include the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument; risks of default by a counterparty; and liquidity risk. Over-the-counter transactions are subject to less government regulation and supervision. At times, the Fund may be unable to sell certain of its illiquid investments without a substantial drop in price, if at all. The Fund may have a high rate of portfolio turnover, which involves correspondingly greater expenses which must be borne by the Fund, and is also likely to result in short-term capital gains taxable to shareholders. The Fund s investments in other pooled investment vehicles subject it to additional expenses. The Fund is non-diversified and may invest more of its assets in fewer issuers than diversified funds. Accordingly, the Fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio and to greater losses resulting from these developments. The Investment Adviser s Alternative Investments & Manager Selection ( AIMS ) Group is responsible for making recommendations with respect to hiring, terminating, or replacing the Fund s Underlying Managers, as well as the Fund s asset allocations. With respect to the Fund, the AIMS Group applies a multifaceted process with respect to manager due diligence, portfolio construction, and risk management. The AIMS Group also manages additional pooled vehicles which have similar investment strategies to those of the Fund that are not offered to retail investors and are not registered under the Investment Company Act of 1940, as amended (the Act ). Because these vehicles are not registered under the Act, they are subject to fewer regulatory restraints than the Fund (e.g., fewer trading constraints) and (i) may invest with managers other than the Fund s Underlying Managers, (ii) may employ strategies that are not subject to the same constraints as the Fund, and (iii) may perform differently than the Fund despite their similar strategies. There may be additional risks that the Fund does not currently foresee or consider material. The investment program of the Fund is speculative, entails substantial risks and includes alternative investment techniques not employed by traditional mutual funds. The Fund should not be relied upon as a complete investment program. The Fund s investment techniques (if they do not perform as designed) may increase the volatility of performance and the risk of investment loss, including the loss of the entire amount that is invested, and there can be no assurance that the investment objective of the Fund will be achieved. A summary prospectus, if available, or a Prospectus for the Fund containing more information may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling (retail ) (institutional ). Please consider a fund s objectives, risks, and charges and expenses, and read the summary prospectus, if available, and the Prospectus carefully before investing. The summary prospectus, if available, and the Prospectus contains this and other information about the Fund. Views and opinions expressed are for informational purposes only and do not constitute a recommendation by GSAM to buy, sell, or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change, they should not be construed as investment advice. Goldman, Sachs & Co. is the distributor of the Goldman Sachs Funds Goldman Sachs. All rights reserved. Date of first use: August 10, MF.MED.OTU

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16 Work with your financial advisor to further explore how GSMMX can potentially enhance your portfolio. For more information, visit GSAMFunds.com. To learn more about alternative mutual funds please also visit our Liquid Alternatives Center at GSAMFunds.com/LAC. NOT FDIC-INSURED May Lose Value No Bank Guarantee