Goldman Sachs

Goldman Sachs' commitment to the Asset Management Division, organized in 1988, is evidenced by swift, steady growth and expertise in managing a complete global product line that includes global asset allocation services, domestic and offshore mutual funds, institutional separate accounts and private investments.

The Asset Management Division is continuing Goldman, Sachs & Co.'s 130-year tradition of global financial leadership, outstanding client service and quality products. The Firm's vast global resources, fundamental research and risk management capabilities are reflected in every investment service offered.

At Goldman Sachs Asset Management, asset allocation decisions are driven by the Black-Litterman Model, a proprietary tool created by senior Goldman Sachs partners in 1990. Designed to seek an optimum balance between risk and return in a portfolio on an ongoing basis, Black-Litterman is the same tool used to manage risk for the Firm's own balance sheet.

Allocation recommendations for the Goldman Sachs Asset Allocation models are made on a quarterly basis and, while recommended changes may not be significant, they may include an addition or removal of an entire asset class.

The Goldman Sachs approach seeks to add value through four layers of global decision-making:

• Asset class decisions — equity vs. fixed income vs. cash
• Equity country selection
• Fixed income country selection
• Currency selection

This approach should appeal to investors who:

• Want access to Goldman Sachs' quantitative research capabilities
• Believe that market inefficiencies can be systematically exploited to reduce potential risk or increase potential return
• Want to have their assets actively reallocated — yet remain in line with an original risk/return profile
• Want access to the quarterly recommendations of the Asset Management Division's Quantitative Research Group