Products June 10, 2008

Goldman Sachs Fund Seeks to Reap Hedge Fund-like Benefits

Goldman Sachs Asset Management (GSAM) launched the Absolute Return Tracker (ART) Fund.
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According to a release, the Goldman Sachs ART Fund (ticker: GARTX) seeks to achieve results that approximate the return of the Goldman Sachs ART Index, which reflects the returns of a basket of long and short investable market factors determined by an algorithm to track patterns of returns of hedge funds as a broad asset class. GSAM created the mutual fund to give U.S. individual investors access to the returns of the Index.

Previously, the only way U.S. investors could gain exposure the GS-ART Index was through a structured note or swap, the company explained in the release. The new fund gives individual investors the opportunity to benefit from the potential investment advantages of a hedge fund-like strategy, but with the daily liquidity, daily pricing, and periodic portfolio transparency provided by mutual funds.

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The Goldman Sachs ART Fund is offered in A and C shares, both with a $1,000 minimum investment. The fund also offers Institutional and R & IR class shares.

For more information, visit www.goldmansachsfunds.com.

Data & Research June 10, 2008

Boomers Not Following in Parents’ Footsteps

Baby Boomers are failing to follow the retirement planning disciplines that enabled their parents to achieve a satisfying retirement, according to a new study by NAVA, the Association for Insured Retirement Solutions.
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One reason for that could be that Boomers have a less positive view of their parents’ retirement than their parents have, according to a NAVA press release. Sixty-four percent of Baby Boomers categorized their parents’ nest eggs as “modest” or “quite small.” Only 37% of Boomers surveyed said they would be very satisfied with their parents’ lifestyles, and the majority of the Boomers surveyed expect a different lifestyle; with 86% of those respondents expecting it to be better than that of their parents.

Among retired parents of Boomers, most attributed their retirement success to the avoidance of credit card debt (81%), the creation of an emergency fund (86%), and their ability to save enough for retirement (79%). Baby Boomers are not doing as well in these departments.

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So far, 57% of Boomers reported success in avoiding credit card debt—24 percentage points less than their parents’ responses. Less than half (44%) of Boomers said they have done a “good job’ saving for retirement. Only 32% of Boomers said they did an “excellent job’ creating an emergency fund.

More Adventurous

However, the study suggests Boomers possess a more adventurous attitude toward retirement investments, which could be to their benefit. The majority is willing to consider new financial products, including annuities, to help them meet their retirement goals, NAVA said.

More specifically, 76% of Boomers expect to invest more aggressively than their parents have done in retirement, and two-thirds expect to differ in their willingness to use new types of financial vehicles, with half saying guaranteed lifetime income annuities provide an “attractive’ option.

Generational Differences in Retirement Planning (GDRP): Adult Children of Retired Parents surveyed more than 1,000 people age 45 to 65 about their expectations for retirement and the experiences of their retired parents. The study compared those findings with a survey of 100 retired people age 70 to 80 regarding their views on retirement as compared with that of their adult children.


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