Goldman Sachs Inflation Protected Securities Fund Class R6 · NASDAQ:GSRUX
Goldman Sachs Inflation Protected Securities Fund Class R6 — The Goldman Sachs Group — Debt Investor Presentation (August 2018)
24 slides from Goldman Sachs Inflation Protected Securities Fund Class R6's debt investor presentation, Aug 1, 2018
Slide 1: Fixed Income Investor Presentation
August 1, 2018 Fixed Income Investor Presentation
Slide 2: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements For a discussion of some of the risks and important factors that could affect the Firm’s future results and financial condition, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017. You should also read the forward-l
Slide 3: I. Performance Review and Risk Management Overview
I. Performance Review and Risk Management Overview
Slide 4: Mid-Year in Review
Mid-Year in Review 1H18 Net Revenues by Segment 1H18 Key Metrics Investment 1H18 YoY Δ Banking 20% Net Revenues $19.4bn +22% Financial Advisory Investing & 7% Lending Underwriting 13% Pre-Tax Earnings $6.7bn +33% 21% All segments Net Earnings $5.4bn +32% Investment up >10% FICC Client Execution Mana
Slide 5: Fee-Based / More-Recurring Revenues and Earnings Volatility
Fee-Based / More-Recurring Revenues and Earnings Volatility Fee-Based / More-Recurring Revenues1 Annual Earnings Volatility2 FY17+1H18 1,816%3 294% 91% ~60% Fee-Based / More-Recurring 52% Revenues 41% 28% 2009-2017 2013-2017 GS US Peer Average European Peer Average 2013 2014 2015 2016 2017 Alignme
Slide 6: Risk Management
Risk Management Deep culture of risk management Integrated approach across credit, market, liquidity, model, operational and enterprise-wide risk disciplines Risk tolerance governed via the firm’s risk appetite statement Independent control and Appropriate segregation of duties between our
Slide 7: Credit Risk Management and Lending Growth
Credit Risk Management and Lending Growth Total Loans ($bn) Loans Receivable ($bn) % of Peer Avg: Balance 7.3% 7.4% 8.8% 9.1% >80% Secured ~30%1 Sheet in Aggregate $88.1 $80.8 16% $74.1 18% Marcus: $3.1 Unsecured $63.9 Other: $3.3 $62.7 83% Secured Real Estate $16.3 100% Secured 22% 28% PWM $17.7 98
Slide 8: II. Balance Sheet and Funding
II. Balance Sheet and Funding
Slide 9: Balance Sheet Trends
Balance Sheet Trends Our balance sheet has grown in response to client needs — Growth concentrated in our market-making businesses, lending activity, and liquidity pool assets We maintain a highly liquid balance sheet with mark-to-market discipline. As of 2Q18: — Substantially all of our assets
Slide 10: Diversification of Funding Sources
Diversification of Funding Sources Our secured funding1 ($135.9bn) Shareholders’ equity ($86.6bn) book is diversified across: is a stable and perpetual source of funding — Counterparties — Tenor — Geography Term is dictated by the composition of our fundable assets with longer maturities execu
Slide 11: Secured Funding
Secured Funding We manage our secured funding liquidity risk by: 2Q18 Non-GCLA Secured Funding Book1 1 Full Flex Managing maturity concentration 12% Pre-rolling and negotiating tenor extensions with Term IG Fixed clients Income Targeting longer tenors for less liquid assets Liquid 12% Equities
Slide 12: Deposits
Deposits Deposit Growth ($bn) Deposits by Type as of 2Q18 Institutional CAGR since 2007: +24% Deposits $153 Private Bank 13% $139 Deposits $124 36% Deposit Sweep $98 Programs 10% Brokered Certificates of 2015 2016 2017 2Q18 Deposit 26% Marcus Deposits U.S. Deposits International Deposits 15% Key Att
Slide 13: Unsecured Group Issuance
Unsecured Group Issuance We continue to emphasize diversification across tenor, GS Group Vanilla Issuance1 vs. Maturities2 ($bn) currency, channel, and structure Scheduled Maturities 2018 year-to-date1, we have raised ~$22bn of GS Group long- $25.2 term unsecured vanilla debt. We expect full-year
Slide 14: Structured Notes
Structured Notes As part of our broader unsecured funding strategy, we have a footprint in the structured note space These notes, coupled with non-benchmark vanilla debt, allow the firm to diversify our unsecured funding by channel and investor type at attractive rates — Buyers receive a customi
Slide 15: III. Liquidity and Capital
III. Liquidity and Capital
Slide 16: Liquidity Risk Management
Liquidity Risk Management Liquidity Coverage Ratio Components ($bn) Average LCR Trend Maturity 132% $169 Mismatch 131% Other 2% 129% 1% 128% $129 Unfunded 32% Commitments >99% Level 1 11% Derivatives 10% Secured 44% Unsecured Eligible High-Quality Liquid Assets Net Cash Outflows 3Q17 4Q17 1Q18 2Q18
Slide 17: Capital
Capital CET1 Ratio1 and Tier 1 Leverage Ratio 2Q18 Standardized Risk-Weighted US Tax Reduced Paused Assets: $561bn Legislation: buyback buyback 70bps hit 12.6% Market RWAs 12.1% 14% 11.9% 11.5% 11.1% Credit 10.7% RWAs 86% 8.4% 8.2% 8.2% 2Q18 Advanced Risk-Weighted Assets: $614bn 4Q17 1Q18 2Q18 Opera
Slide 18: IV. Conclusion
IV. Conclusion
Slide 19: Key Takeaways
Key Takeaways Strong financial foundation with solid capital ratios Highly liquid and high-velocity balance sheet Liquidity pool comprised of high-quality assets with capacity for reinvestment Diversifying funding sources to reduce reliance on USD unsecured long-term debt Focused on increasing credi
Slide 20: Appendix
Appendix 20
Slide 21: Non-GAAP Disclosures
Non-GAAP Disclosures The table below presents information about our annualized return on average common shareholders’ equity (ROE) and annualized return on average tangible common shareholders’ equity (ROTE) Six Months Ended $mm June 30, 2018 June 30, 2017 Net Earnings Applicable to Common Shareho
Slide 22: Non-GAAP Disclosures
Non-GAAP Disclosures In addition to preparing our consolidated statements of financial condition in accordance with U.S. GAAP, we prepare a balance sheet that generally allocates assets to our businesses, which is a non-GAAP presentation and may not be comparable to similar non- GAAP presentations
Slide 23: Non-GAAP Disclosures
Non-GAAP Disclosures As of December 31, 2017, our capital ratios on a fully phased-in basis were non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies. We believe that our capital ratios on a fully phased- in basis are meaningful because they are measures
Slide 24: Fixed Income Investor Presentation
August 1, 2018 Fixed Income Investor Presentation
The Goldman Sachs Group — Debt Investor Presentation (August 2018) on 6ix