NEW YORK – Goldman Sachs Asset Management announced that it will begin disclosing a daily market value Net Asset Value (“NAV”) for its US-domiciled Commercial Paper Money Market funds effective today. Disclosure of the NAV for the Government and Municipal funds is expected to follow next week.
“As a leading provider of liquidity solutions, we believe that more frequent disclosure and greater transparency will benefit investors. This will have no impact to how fund shareholders transact or the way the funds are managed,” said James McNamara, Managing Director and President of Goldman Sachs Mutual Funds. “It is our belief that this level of transparency will also benefit the ongoing dialogue around potential regulatory changes to money market funds.”
As the industry and regulators work to determine the next course of action relative to money market fund reform, GSAM believes increased transparency will help investors, and the market at large. This disclosure is also consistent with Goldman Sachs’ long-standing advocacy of mark-to-market accounting.
“Given that much of the discussion about systemic risk has centered on the commercial paper fund market in the US, we have decided as a first step to disclose those funds’ market value NAVs,” said David A. Fishman and James P. McCarthy, Managing Directors and Co-Heads of GSAM’s Global Liquidity Management business. “This additional transparency gives fund investors more information to understand the underlying value of the portfolio – a data point we already use each day to manage risk and achieve the funds’ primary goal: seeking to achieve a $1.00 NAV.”
The calculation, disclosure and monitoring of a market value NAV for a money market fund is not new. In fact, every money market fund is required by the Securities and Exchange Commission (SEC) to calculate a market value NAV to the nearest hundredth of a cent (or $0.0001) on a monthly basis, which is made available to investors on a 60-day lag. Additionally, GSAM and its Funds’ Board regularly monitor the funds’ market value NAV.
GSAM will begin disclosing a daily market value NAV for the following US-domiciled commercial paper or “prime” funds: the GS Financial Square Money Market Fund, the GS Financial Square Prime Obligations Fund and the GS VIT Money Market Fund. The information will be available to investors on the Funds website at http://www.goldmansachs.com/gsam/glm/products/money-market/index.html.
GSAM plans to disclose daily NAVs for US-domiciled tax-exempt, government, and Treasury funds next week and for non-US Money Market funds in the near future.
Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages $856 billion as of September 30, 2012. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.