SCHEDULE 14C INFORMATION
Information Statement Pursuant to Section 14(c) of the
Securities Exchange Act of 1934
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Goldman Sachs Trust II
(Name of Registrant as Specified in Its Charter)
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Goldman Sachs Trust II
Multi-Manager U.S. Dynamic Equity Fund
200 West Street
New York, New York 10282
October 12, 2018
Dear Shareholder,
Goldman Sachs Asset Management, L.P. (“GSAM” or the “Investment Adviser”), the investment adviser of Multi-Manager U.S. Dynamic Equity Fund (the “Fund”), selects investment managers (“Underlying Managers”) for the Fund, a series of Goldman Sachs Trust II (the “Trust”), subject to approval of the board of trustees of the Trust (the “Board”). We are pleased to inform you that, at the recommendation of GSAM, the Board has appointed Vaughan Nelson Investment Management, L.P. (“Vaughan Nelson”) to serve as a new, additional Underlying Manager for the Fund. The Board approved thesub-advisory agreement between GSAM and Vaughan Nelson (the“Sub-Advisory Agreement”) at a meeting held on September12-13, 2018 (the “Meeting”). Lazard Asset Management LLC, Sirios Capital Management, L.P. and Smead Capital Management, Inc. continue to serve as the Fund’s other Underlying Managers. Each Underlying Manager is approved to manage a portion of the Fund’s portfolio (which may change over time) as allocated by GSAM and overseen by the Board.
Please note that this appointment does not require a shareholder vote.Therefore, we are not asking you for a proxy, and you are requested not to send us a proxy. The purpose of this document is to provide you with additional information about these changes that we are required to make available to you.
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Additional Information About GSAM and the Fund’s Other Service Providers | 3 | |||
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MULTI-MANAGER U.S. DYNAMIC EQUITY FUND
In connection with its duties as the investment adviser for the Fund, GSAM reviews and evaluates the Fund’s Underlying Managers on an ongoing basis. At the Meeting and pursuant to GSAM’s recommendation, the Board approved Vaughan Nelson as a new Underlying Manager for the Fund and approved theSub-Advisory Agreement.
The Board determined to initially approve theSub-Advisory Agreement after a thorough analysis of the proposed services to be provided by Vaughan Nelson. The material factors considered by the Board in approving theSub-Advisory Agreement are set forth below under “Multi-Manager U.S. Dynamic Equity Fund—Trustees’ Considerations.”
Investment Strategies of Vaughan Nelson
Pursuant to theSub-Advisory Agreement, GSAM may allocate a portion of the Fund’s assets to Vaughan Nelson for management. With respect to such assets, Vaughan Nelson pursues an equity strategy with a bias formid- tolarge-cap equity securities.
Under theSub-Advisory Agreement, subject to the supervision and oversight of GSAM, Vaughan Nelson, with respect to those assets that GSAM allocates to it (the “Allocated Assets”), provides the Fund with investment research, advice and supervision and furnishes a continuous investment program for, and manages the investment and reinvestment of, the Allocated Assets. Vaughan Nelson determines in its discretion the securities, cash and other financial instruments to be purchased, retained or sold for the Fund within the parameters of the investment approach, policies, restrictions and guidelines applicable to the Allocated Assets as provided by GSAM, the provisions of theSub-Advisory Agreement, all applicable laws, rules and regulations and the Fund’s registration statement on FormN-1A under the Investment Company Act of 1940, as amended (the “1940 Act”).
Under theSub-Advisory Agreement, Vaughan Nelson pays for all expenses incurred by it in connection with its services to the Allocated Assets. As compensation for its services, Vaughan Nelson is entitled to receive fees from GSAM (not the Fund) each calendar quarter based on an annual percentage of the average daily net assets of the Allocated Assets.
TheSub-Advisory Agreement will remain in effect for two years after its effective date and will continue thereafter for successive periods of twelve months, provided that its continuance is approved at least annually (i) by the vote of a majority of those Trustees of the Trust who are not parties to theSub-Advisory Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval, and (ii) by either the vote of (A) the Board or (B) a majority of the outstanding voting securities of the Fund (within the meaning of the 1940 Act).
TheSub-Advisory Agreement provides for termination, without payment of any penalty, (i) by vote of a majority of the Board or by a vote of a majority of the outstanding voting securities of the Fund, (ii) by GSAM on 60 days written notice to Vaughan Nelson (or immediately in the event of a material breach by Vaughan Nelson), or (iii) by Vaughan Nelson on not less than 90 days written notice to GSAM and the Trust. Notwithstanding the above, Vaughan Nelson may not terminate theSub-Advisory Agreement during the24-month period immediately following the effective date of theSub-Advisory Agreement with respect to the Fund (except as it may relate to a material breach by GSAM). TheSub-Advisory Agreement shall automatically terminate in the event of its assignment or change of control of Vaughan Nelson or the assignment of the Fund’s management agreement with GSAM. TheSub-Advisory Agreement shall also terminate in the event that the Fund’s management agreement with GSAM is terminated.
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As described below under “Additional Information—SEC Exemptive Order,” GSAM has received an exemptive order from the U.S. Securities and Exchange Commission (the “SEC”) enabling it to enter into an investmentsub-advisory agreement with an Underlying Manager that has not been approved by a vote of the majority of the outstanding voting securities of the Fund if certain conditions are met.
The Fund is an investment portfolio of the Trust that commenced investment operations on July 31, 2015. The Fund employs a “manager of managers” structure, whereby the Investment Adviser is responsible for selecting Underlying Managers (subject to Board approval), allocating the Fund’s assets among them, and overseeing theirday-to-day management of Fund assets. Upon the recommendation of the Investment Adviser, at the Meeting, the Trustees, including the Trustees who are not parties to the Fund’s investment management agreement or anysub-advisory agreement or “interested persons” (as defined in the 1940 Act) of any party thereto (the “Independent Trustees”), unanimously approved aSub-Advisory Agreement between the Investment Adviser and Vaughan Nelson. In connection with the Meeting, the Trustees received written materials and oral presentations on the topics covered, and were advised by their independent legal counsel. In addition, Vaughan Nelson provided information in response to a request from the Investment Adviser.
Nature, Extent and Quality of the Services to be Provided Under theSub-Advisory Agreement
In evaluating the nature, extent and quality of services to be provided by Vaughan Nelson, the Trustees considered information about Vaughan Nelson’s (a) personnel and their compensation structure; (b) track record in managing other funds and accounts with investment strategies similar to those to be employed on behalf of the Fund; (c) policies and procedures in place to address potential conflicts of interest; and (d) compliance program and code of ethics. In this regard, they considered assessments provided by the Investment Adviser of Vaughan Nelson, Vaughan Nelson’s investment strategies and personnel, and its compliance program. The Trustees considered that Vaughan Nelson currently manages other assets for the Investment Adviser’s clients, including a portion of the assets of the Goldman Sachs Multi-Manager Global Equity Fund. They noted that, because Vaughan Nelson had not previously provided services to the Fund, there was no performance information to evaluate with respect to the Fund.
Costs of Services to be Provided
The Trustees reviewed the terms of theSub-Advisory Agreement and the proposed fee schedule. They noted that the compensation paid to Vaughan Nelson would be paid by the Investment Adviser, not by the Fund. They also noted that the terms of theSub-Advisory Agreement were the result of arms’ length negotiations between the Investment Adviser and Vaughan Nelson. The Trustees reviewed the anticipated blended average of allsub-advisory fees to be paid by the Investment Adviser with respect to the Fund and how it would change upon hiring Vaughan Nelson. The Trustees considered the Investment Adviser’s undertaking to waive the portion of its management fee which is in excess of the weighted average of the Fund’ssub-advisory fees.
Conclusion
In connection with their consideration of theSub-Advisory Agreement, the Trustees gave weight to various factors, but did not identify any particular factor as controlling their decision. After deliberation and consideration of the information provided, including the factors described above, the Trustees, including the Independent Trustees, unanimously concluded, in the exercise of their business judgment, that thesub-advisory fees to be paid by the Investment Adviser to Vaughan Nelson were reasonable in light of the factors considered, and that theSub-Advisory Agreement, and the terms thereof, should be approved for a period of two years from its effective date.
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On May 29, 2013, GSAM and the Trust received an exemptive order (the “Order”) from the SEC exempting them from certain provisions of the 1940 Act. Specifically, the Order permits the Trust and GSAM, so long as certain conditions are satisfied, to enter into and materially amend an investmentsub-advisory agreement with an Underlying Manager without shareholder approval. The Order generally requires that shareholders of the Fund be notified of an investmentsub-advisory agreement that has been entered into within 90 days of the hiring of the Underlying Manager, and that the Fund make available to shareholders information similar to that which would have been included in a proxy statement to shareholders.
Additional Information About GSAM and the Fund’s Other Service Providers
GSAM, a Delaware limited partnership registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended, is the Fund’s investment adviser. GSAM is an indirect, wholly-owned subsidiary of The Goldman Sachs Group, Inc., a public company that is a bank holding company, financial holding company and a world-wide, full-service financial services organization. GSAM Holdings LLC is the general partner and principal owner of GSAM. GSAM’s and The Goldman Sachs Group Inc.’s current business address is 200 West Street, New York, NY 10282. As of June 30, 2018, GSAM, including its investment advisory affiliates, had approximately $1.30 trillion in assets under supervision.
Goldman Sachs & Co. LLC, an affiliate of GSAM, located at 200 West Street, New York, New York 10282, serves as the exclusive distributor of shares of the Fund.
State Street Bank and Trust Company, located at One Lincoln Street, Boston, Massachusetts 02111, serves as the Fund’s custodian and administrator.
Additional Information About Vaughan Nelson
Vaughan Nelson, located at 600 Travis Street, Suite 6300, Houston, Texas 77002, is an investment adviser registered with the SEC. Vaughan Nelson is wholly-owned by Natixis Investment Managers, L.P., which is an indirect subsidiary of Natixis Investment Managers SA, an international asset management group owned by Natixis SA. As of September 30, 2018, Vaughan Nelson manages assets of approximately $13.3 billion.
The principal executive officers, directors and general partners of Vaughan Nelson, as of the date of this document, are set forth below. The business address of each person and entity is 600 Travis Street, Suite 6300, Houston, Texas 77002.
Name | Position(s) with Vaughan Nelson1 | |
Vaughan Nelson Investment Management, Inc. | General Partner | |
Christopher D. Wallis | Director, Chief Executive Officer and Chief Investment Officer | |
Steven Psaledakis | President | |
Richard B. Faig | Chief Financial Officer and Chief Compliance Officer | |
Beverly M. Bearden | Director | |
David L. Giunta | Director | |
James T. Orfanos | Director |
| 1 | None of the principal executive officers of Vaughan Nelson listed above have other principal employment other than his or her respective position(s) with Vaughan Nelson and its affiliated managers. |
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The Fund’s annual and semi-annual reports are available free upon request. Shareholders may obtain a copy of either report by writing to Goldman Sachs & Co. LLC, P.O. Box 06050, Chicago, IL 60606-6306 or by calling1-800-621-2550. You may also access and download these reports at the Fund’s website: www.GSAMFUNDS.com/summaries.
If you have any questions, please contact your investment professional or authorized dealer.
October 12, 2018
200 West Street
New York, New York 10282
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Goldman Sachs Trust II
Multi-Manager U.S. Dynamic Equity Fund
200 West Street
New York, New York 10282
IMPORTANT NOTICE OF INTERNET AVAILABILITY OF INFORMATION STATEMENT
October 12, 2018
This communication presents only an overview of the more complete Information Statement that is available to you on the Internet relating to Multi-Manager U.S. Dynamic Equity Fund (the “Fund”), a series of Goldman Sachs Trust II (the “Trust”). We encourage you to access and review all of the important information contained in the Information Statement.
Goldman Sachs Asset Management, L.P. (“GSAM”), the investment adviser of the Fund, selects investment managers (“Underlying Managers”) for the Fund subject to approval of the board of trustees (the “Board”) of the Trust. We are pleased to inform you that, at the recommendation of GSAM, the Board has appointed Vaughan Nelson Investment Management, L.P. (“Vaughan Nelson”) to serve as a new, additional Underlying Manager for the Fund. The Board approved thesub-advisory agreement between GSAM and Vaughan Nelson (the“Sub-Advisory Agreement”) at a meeting held on September12-13, 2018. Lazard Asset Management LLC, Sirios Capital Management, L.P. and Smead Capital Management, Inc. continue to serve as the Fund’s other Underlying Managers. Each Underlying Manager is approved to manage a portion of the Fund’s portfolio (which may change over time) as allocated by GSAM and overseen by the Board. Additional information about GSAM, Vaughan Nelson, theSub-Advisory Agreement, and the Board’s approval of theSub-Advisory Agreement is contained in the Information Statement.
Please note that, in reliance on exemptive relief obtained by GSAM and the Trust from the Securities and Exchange Commission, the hiring of Vaughan Nelson on the Fund’s behalf does not require a shareholder vote.Therefore, we are not asking you for a proxy, and you are requested not to send us a proxy.
This Notice of Internet Availability of the Information Statement is being mailed on or about November 2, 2018. The full Information Statement will be available for printing on the Fund’s website at www.gsamfunds.com until at least 90 days from the date of this Notice and the Information Statement. To access the full Information Statement, navigate towww.gsam.com/content/gsam/us/en/advisors/literature-and-forms/literature.html, where the full Information Statement is available to view and print by utilizing the search feature to locate literature specific to Vaughan Nelson. A paper or email copy of the full Information Statement may be obtained, without charge, by contacting the Fund at1-800-621-2550. If you would like to receive a paper ore-mail copy of the full Information Statement, you must request one. If you have any questions about this Notice, please contact your financial advisor (if applicable) or contact the Fund at the appropriate phone number provided above.
Please Note: If (i) you are a member of a household in which multiple shareholders of the Fund share the same address, (ii) your shares are held in “street name” and (iii) your broker or bank has received consent to household material, then your broker or bank may have sent to your household only one copy of this Notice of Internet Availability of Information Statement unless your broker or bank previously received contrary instructions from a shareholder in your household. If you are part of a household that has received only one copy of this Notice of Internet Availability of Information Statement, the Fund will deliver promptly a separate copy of this Notice of Internet Availability of Information Statement to you upon written or oral request. To receive a separate copy of this Notice of Internet Availability of Information Statement, please contact the Fund by calling toll free1-800-621-2550 or by writing Goldman Sachs Funds, P.O. Box 06050, Chicago, IL 60606-6306. If your shares are held with certain banks, trust companies, brokers, dealers, investment advisers and other financial intermediaries (each, an “Intermediary”) and you would like to receive a separate copy of future notices of internet availability of information statements, prospectuses or annual reports or you are now receiving multiple copies of these documents and would like to receive a single copy in the future, please contact your Intermediary.
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