Wednesday, November 7, 2007

History Goldman Sachs Present Business Scope - 2007

Business Overview
Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

We seek to be the advisor of choice for our clients and a leading participant in global financial markets. Our strategy is to grow our three core businesses ? Investment Banking, Trading and Principal Investments and Asset Management and Securities Services ? in markets throughout the world.

Investment Banking
Our Investment Banking business provides a broad range of investment banking services to a diverse group of corporations, financial institutions, governments and individuals. The activities of our Investment Banking segment are divided into two components: Financial Advisory and Underwriting.
Financial Advisory
Financial Advisory includes advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense activities, restructurings and spin-offs.

Underwriting includes public offerings and private placements of equity, equity-related and debt instruments.
Trading and Principal Investments
Our Trading and Principal Investments business facilitates customer transactions with a diverse group of corporations, financial institutions, governments and individuals and take proprietary positions through market making in, and trading of, fixed income and equity products, currencies, commodities and derivatives on such products. In addition, we engage in floor-based and electronic market making as a specialist on U.S. equities and options exchanges and we clear customer transactions on major stock, options and futures exchanges worldwide. In connection with our merchant banking and other investment activities, we make principal investments directly and through funds that we raise and manage. The activities of our Trading and Principal Investments segment are divided into three components: Fixed Income, Currency and Commodities, Equities and Principal Investments.

Fixed Income, Currency and Commodities
We make markets in and trade interest rate and credit products, mortgage-backed securities and loans, currencies and commodities, structure and enter into a wide variety of derivative transactions, and engage in proprietary trading.

We make markets in, act as a specialist for, and trade equities and equity-related products, structure and enter into equity derivative transactions, and engage in proprietary trading. We also execute and clear customer transactions on major stock, options and futures exchanges worldwide.

Principal Investments
Principal Investments primarily represents net revenues from our merchant banking investments, including the increased share of the income and gains derived from our merchant banking funds when the return on a fund?s investments exceeds certain threshold returns (merchant banking overrides), as well as unrealized gains or losses from our investment in the convertible preferred stock of Sumitomo Mitsui Financial Group, Inc.
Asset Management and Securities Services
Our Asset Management and Securities Services business offers a broad array of investment strategies, advice and planning across all major asset classes to a diverse group of institutions and individuals worldwide, and provide prime brokerage, financing services and securities lending services to mutual funds, pension funds, hedge funds, foundations and high-net-worth individuals worldwide. The activities of our Asset Management and Securities Services segment are divided into two components: Asset Management and Securities Services.

Asset Management
Asset Management provides investment advisory and financial planning services to a diverse group of institutions and individuals worldwide and primarily generates revenues in the form of management and incentive fees.

Securities Services
Securities Services provides prime brokerage, financing services and securities lending services to mutual funds, pension funds, hedge funds, foundations and high-net-worth individuals worldwide, and generates revenues primarily in the form of interest rate spreads or fees.

More details

Investment Banking
Goldman Sachs? Investment Banking Division identifies, structures and executes diverse and innovative public and private market transactions for corporations, financial institutions and governments. Transactions include mergers, acquisitions, divestitures, the issuance of equity or debt capital, or a combination of these.

Goldman Sachs seeks to provide our clients with the broadest possible range of opportunities around the world. Our global relationships, coupled with our unique understanding of local economies, industries and cultures, help us consistently deliver high quality advice and service time and again.

Banking professionals advise and assist clients across a number of industry and product groups: Industrial, Consumer, Natural Resources, Health Care, Financial Institutions, Real Estate, Special Products, Technology, Media and Telecommunications. In each of these areas, we provide a range of services designed to meet the specific needs of our clients - including financing, merger and acquisition and other investment banking services.

Our team-based approach allows us to maintain a high level of quality and integrity in developing and executing on our client?s transactions. This has made us the investment banker of choice for some of the world?s most demanding clients.

Trading & Capital Markets
Goldman Sachs' Equity Division has been assisting corporations and governments around the world in planning investment strategies and raising capital in public and private equity markets for well over a century.

With offices in six continents and well-established relationships with the largest U.S. and international money managers, our equities professionals can bring our clients the widest possible range of ideas and services. These include:
Executing trades of Equity securities
Portfolio hedging and restructuring
Assisting companies in raising capital
Developing innovative products and strategies that broaden capital-raising opportunities
Exchange-based market making
Developing trading models and algorithms
Investing in Warrants
Goldman Sachs' Fixed Income, Currency and Commodities (FICC) Division serves a wide range of clients, including mutual funds, central banks, insurance companies, pension funds, hedge funds, corporations, investment advisors, broker dealers, government agencies and domestic/international banks.

FICC works with these clients to:
Make markets and trade bonds, money market instruments, interest rate products, bank loans, mortgage-backed securities, currencies, commodities and other products
Raise capital for our clients in the public and private markets
Structure and enter into a wide variety of derivative transactions
Invest in stressed or distressed fixed income securities
Engage in proprietary trading and arbitrage activities
The FICC division prides itself on:
Intense focus on our largest and most strategically important clients
Portfolio of diverse and unique businesses
Ability to take advantage of new business opportunities
To find out more about our FICC services, contact your Goldman Sachs salesperson..

Goldman Sachs Futures Services connects clients to exchange traded derivatives markets worldwide. We offer research, execution and custody/clearing services for listed futures and options.

Asset Management
Goldman Sachs Asset Management serves the investment needs of institutions, governments and government agencies around the world. Our understanding of local economies, industries and cultures helps us develop global relationships over time, helping us in our objective of delivering what clients want most: access to a wide range of investment opportunities, consistent, risk-adjusted performance, solid, consistent returns over time.

We believe that the Goldman Sachs team approach to asset management helps us in our goal of delivering strong, consistent results built on our global resources and relationships, thoughtful analysis and research as well as effective risk management.

What Sets Goldman Sachs Apart

Resources and Relationships
With offices in New York, London, Tampa, Princeton, and Tokyo, we offer access to portfolio management teams on-site, around the world. Our understanding of local economies, markets and cultures helps us develop global relationships over time, through face-to-face meetings and local insights.

In-Depth Research
Our emphasis on research stems from a belief that careful gathering of information and perspectives leads to informed decision making and helps achieve our objective of solid, consistent returns over time.

Risk Management
Our objective is to consistently deliver favorable returns compared to the market. Our institutional clients look to us to manage risk effectively and to generate performance consistent with their tolerance to risk.

Goldman Sachs offers our clients access to a wide range of mutual funds and other asset management products, along with specialized services for our institutional investors.


At Goldman Sachs Asset Management, clients can access a range of global investment opportunities including equities, fixed income, currency, money markets and innovative quantitative strategies.

US Equity

US Growth Equity
We believe that wealth is created through the long-term ownership of growing businesses.

US Value Equity
Value investing begins with balancing both the price and prospects. We seek to buy companies opportunistically when we believe their stock price is undervalued in the market place.
Global / Non US Equity
We believe outperformance is generated by a long term focus on quality companies that have excellent management and attractive valuations.
UK Equity
Europe Equity
Japan Equity
Asia Equity
Global / EAFE
Global Sectors
Global Emerging Markets Equity
Small Cap
Quantitative Equity
We believe that financial markets are competitive, but not entirely efficient, and that a combination of qualitative and quantitative insights can help achieve strong results.
US Quantitative Equity
UK Quantitative Equity
Europe Quantitative Equity
Japan Quantitative Equity
Global / Non US Quantitative Equity
Quantitative / Balanced Strategies
These strategies use proprietary asset allocation models to seek diversified sources of alpha in a sophisticated, yet transparent, manner - identifying and capitalizing on trends and mispricing across global markets. Balanced strategies offer access to several sources of excess return: asset allocation decisions, equity security selection, fixed income management and currency management.
Asset Allocation Overlay
Balanced Plus GTAA
Fixed Income / Currency
We believe that consistent outperformance is achieved by using a broad mix of fixed income strategies implemented by well regarded sector teams in a global research platform.
US Fixed Income
UK Fixed Income
Europe Fixed Income
Japan Fixed Income
Global Fixed Income
Enhanced Cash
High Yield
Emerging Market Debt

Global Cash Services
We also offer clients access to, Goldman Sachs' Global Cash Services Internet platform. This electronic trading system provides streamlined cash management and can serve as a single online center for trading, reporting and research needs:
Real-time execution capabilities for institutional money market funds from Goldman Sachs and select external providers
Access to direct fixed income securities and foreign exchange
Exclusive Goldman Sachs content including research, market commentaries and economic discussions

Managed Accounts
With the changing investor landscape and growth in personal wealth, managed accounts have emerged as one of the fastest growing investment vehicles today due to their ability to potentially deliver tax-efficiency within a customized portfolio. Goldman Sachs Asset Management offers a personalized managed account investment strategy focused on each client's specific needs in the following asset categories:

Strategic Growth
Strategic Value
Mid Cap Value

Private Equity Group
Based in New York, London, Tokyo, Hong Kong and San Francisco, the Private Equity Group makes commitments to private equity funds located in the United States, the United Kingdom, continental Europe, Latin America and Asia.

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