{ "docId": "019dd923-5e88-73ef-bd5a-16f06e21d85d", "docSlug": "859fd9d3a5bec613", "documentTitle": "Goldman Sachs Ayco Outlook 2024 Webinar Materials", "authorId": "GoldmanSachs", "authorName": "Goldman Sachs", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.773, "pageNumber": 1, "pageCount": 12, "prevPage": null, "nextPage": 2, "slideType": "appendix_disclosure", "function": "front_matter", "density": "overcrowded", "nDataPoints": 0, "notes": "Includes a formal disclosure statement at the bottom.", "elementsJson": [ "paragraph", "logo_grid" ], "metadataConfidence": 1, "imagePath": "https://imgproxy.kitesheet.com/6vgCcz9l6upEdfH4LzDRY_ZH2Bj1g5B-z8rYoAPokqg/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy84NTlmZDlkM2E1YmVjNjEzL3AwMDEuanBn", "slideHref": "/slides/019dd923-5e88-73ef-bd5a-16f06e21d85d/1", "deckHref": "/decks/019dd923-5e88-73ef-bd5a-16f06e21d85d", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd5a-16f06e21d85d.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd5a-16f06e21d85d#slide-1", "components": [ { "bbox": null, "kind": "callout", "text": "The Investment Strategy Group (ISG) in the Goldman Sachs Investment Management Division has developed a new approach to strategic asset allocation, which leverages the idea that long-term investment returns derive from multiple distinct sources called “return-generating factors.”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-1d6d-7403-aea1-85d2687de61f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.76, "x": 0.118, "y": 0.76 }, "kind": "disclaimer", "text": "Disclosures: Our Relationship with Clients. We may act as an investment adviser or as a broker-dealer depending on our relationship with you, and may act as both for some clients. Our role and obligations will vary depending on the capacity in which we act. Where we act as an investment adviser, our primary role is to give advice, help you manage your investments or help you hire another adviser to do so. Where we act as a broker, our primary role is to execute trades for you based on your instructions and any advice we give you is incidental to our brokerage services. How we are compensated by you (and sometimes by issuers or managers of investments who compensate us based on what you buy) and how your Private Wealth Advisor is compensated will vary depending on whether you have an advisory or brokerage account and on the investments we or you make in your account, and may change over time. Please ask us questions to make sure you understand your rights and our obligations to you, the difference between advisory and brokerage accounts and / or how we are compensated based on the capacity in which we act. We are part of a full-service, integrated investment banking, investment management, and brokerage firm. Other firm businesses may implement investment strategies that are different from the strategies used or recommended for your portfolio.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "94735b99-1c86-4eeb-b52e-774a7fe28b4e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.075, "w": 0.135, "x": 0.118, "y": 0.092 }, "kind": "image", "text": "Goldman Sachs", "attrs": null, "subkind": "logo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6c878be3-1d85-46fd-8b89-2753a7d2242a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.76, "x": 0.118, "y": 0.415 }, "kind": "paragraph", "text": "The factor-based risk and return estimates are used in a robust portfolio optimization process that the ISG has designed to address each client’s individual investment goals and preferences. The factor model is also leveraged in portfolio stress tests that help the ISG better capture downside risks, including tail events and elevated correlations between asset classes at times of crises.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "334a706e-779e-40be-b664-1027b224218e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.76, "x": 0.118, "y": 0.625 }, "kind": "paragraph", "text": "While we believe the new multi-factor framework addresses many shortcomings of traditional asset allocation approaches, quantitative models are only part of the ISG’s investment framework. To help mitigate model risks and to understand individual investors’ specific goals and softer preferences, qualitative judgment and investment expertise remain important inputs to the asset allocation process.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "528d62f9-d367-4870-b5ef-48c0a314f626", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.76, "x": 0.118, "y": 0.255 }, "kind": "paragraph", "text": "Strategic asset allocation is arguably one of the most important, yet least advanced, aspects of investing. The Investment Strategy Group (ISG) in the Goldman Sachs Investment Management Division has developed a new approach to strategic asset allocation, which leverages the idea that long-term investment returns derive from multiple distinct sources called “return-generating factors.” This multi-factor approach is designed to help investors better understand the key sources of long-term return across asset classes and to increase the precision of long-term risk and return estimates. It also provides investors with a new way to think about portfolio diversification, allowing them to focus not only on diversification across asset classes but also on diversification across the underlying sources of return.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "71b08210-4808-49a0-9570-c8c2934d4d26", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.76, "x": 0.118, "y": 0.51 }, "kind": "paragraph", "text": "Previously, the ISG’s asset allocation approach was based on the single-factor model of Black and Litterman and the assumption of Normal distribution for asset returns. These models were supplemented by qualitative assumptions in different parts of the investment process. For example, adjustments designed to improve the estimates of long-term returns were applied to a number of asset classes, and additional risk metrics were relied upon to approximate tail risks not captured by the Normal distribution.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eccca5f9-d32c-4b2c-a5bd-059e174484d7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.45, "x": 0.118, "y": 0.198 }, "kind": "title", "text": "Strategic Asset Allocation in a Multi-Factor World", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9ab61468-1f9a-4c54-b92e-c4b417bc2845", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.55, "x": 0.118, "y": 0.215 }, "kind": "title", "text": "Introduction to an article published in the Journal of Portfolio Management\nNovember 2012", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9cf920f4-4dc9-40cd-b886-98de4da0a7eb", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Audience Definition", "slug": "audience-definition", "agent": "Storyteller", "layer": "slide", "matchId": "1a77faaf-ab5b-46c9-8b3a-a2852697c37f", "evidence": "Jed Finn Chief Operating Officer of Wealth Management and Head of Corporate & Institutional Solutions", "confidence": 0.7 } ], "frameworks": [], "arcBeats": [ { "to": 2, "from": 1, "beatId": "fe8ad79a-c023-4dfc-885d-8cd79fce9e97", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Situation & Context", "beatSlug": "consultants-gambit-situation-context", "evidence": "Appendix disclosures and introduction to the Investment Strategy Group", "position": 0, "confidence": 0.8, "parentBeatName": "Setup", "parentBeatSlug": "setup" } ], "loops": [], "imagePathAlt": "https://imgproxy.kitesheet.com/jaR_QwFN5dS-bQ-Ph-2ptFTZIDyxx0uYXO7hkmlE8d4/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy84NTlmZDlkM2E1YmVjNjEzL3AwMDEucG5n", "thumbSrc": "https://imgproxy.kitesheet.com/QmNVhvG2mrABl64O147ralOjgTog8s3spupOfqMNLW4/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy84NTlmZDlkM2E1YmVjNjEzL3AwMDEuanBn", "thumbSrcAlt": "https://imgproxy.kitesheet.com/nWCrEiSOSh0VICpYQDZx38kmHCjg1SA9i-EgDDXUm3M/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy84NTlmZDlkM2E1YmVjNjEzL3AwMDEucG5n" }