GSAM aims to offer defined contribution plan sponsors and investors access to the diversifying nontraditional asset classes used by pension plans in a single, daily valued mutual fund.
The fund intends to gain exposure to inflation-linked government bonds, global real estate investment trusts, commodities, emerging markets equity, emerging markets sovereign credit, North American high-yield corporate credit and hedge fund industry beta (i.e., the component of hedge fund returns that is attributable to market risk exposure, rather than manager skill).
Within the fund, GSAM determines the allocation of each asset class and then employs a passive investment approach with respect to achieving exposure to most asset classes for efficiency and to reduce transaction costs. It is managed by the Quantitative Investment Strategies team of more than 60 investment professional and 60-plus professionals dedicated to trading, information technology and the development of analytical tools.
“Market volatility and low interest rates make it challenging for DC participants to establish a risk-managed investment portfolio,” said Phil Callahan, Managing Director, GSAM’s Retirement Services Group. “Goldman Sachs RPC shows that broader diversification and less crowded plan menus are not mutually exclusive. By combining a number of asset classes, RPC may also carry less risk and volatility than a number of its individual underlying asset classes.”
The fund’s performance benchmark is a composite of the S&P 500 Index (60%) and the Barclays US Aggregate Bond Index (40%). Additionally, GSAM created a proprietary Retirement Portfolio Completion Benchmark. RPC is offered in Class A and Class C shares, both with $1,000 minimum initial investments; it also offers Institutional, Class R and Class IR shares.
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