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Goldman Sachs Municipal Fixed Income

Stay Ahead of the Curve

The municipal bond market is vast and fragmented. We bring decades of experience to help you and your clients piece it together. Check out the latest insights and resources below. Want to learn more?

Muni Market Views

Municipal Bonds: More Resilient Than You Think?

The Covid-19 crisis has put municipal bond fundamentals in the spotlight.

Insights from Our Experts

Munis in a Minute 
Got a Minute? We're Talking Munis


David Alter

Head of GSAM Municipal Research

  • GSAM Connect 13 July 2021

    High-Yield Municipal Bonds: Three Things to Consider

    With the US economy gaining steam, central banks holding interest rates low and talk of higher taxes heating up, investors have been enthusiastic buyers of tax-exempt munis –especially high-yield municipal bonds. We think allocating to high yield munis is a reasonable strategy for increasing return potential in fixed income portfolios. But it’s important to be selective. Here are three things investors should keep in mind:

    Read More
  • GSAM Connect 24 May 2021

    Municipal Bonds: Why It's Important to be Flexible

    Fiscal stimulus, an aggressive infrastructure plan and the possibility of higher taxes to pay for it have sparked a surge in municipal bond demand. But even at current prices, we still see value in the sector for active investors.

    Read More
  • Muni Market Views 14 January 2021

    2021 Muni Outlook

    We see three key themes to watch in the new year. Each may unlock income opportunities for municipal bond investors in 2021.

    Read More
  • GSAM Connect 04 January 2021

    How Municipalities Can Manage Economic Stress

    Municipalities have a number of countercyclical levers available to help stabilize credit quality, suggesting that municipal bonds may prove valuable for a fixed income allocation when times are tough.

    Read More
  • GSAM Connect 16 November 2020

    It’s What You Keep That Counts: Understanding Taxable Munis

    Do taxable bonds belong in a tax-exempt portfolio? It’s not a trick question. With taxable muni bond issuance on the rise, we think the answer is clear: Yes.

    Read More
  • GSAM Connect 10 November 2020

    A Closer Look at Municipal Credit

    This year has been a challenging one for municipalities—and municipal bond investors. As we move toward year end and beyond, we believe economic growth levels are likely to slowly recover, leading to further uncertainty for municipal investors and issuers alike.  So here are a few things we think that investors should keep in mind.

    Read More

Our Municipal Bond Funds

GSDUX

Institutional

GS Short Duration Tax-Free Fund

Seeks a high level of current income, exempt from federal income tax


Overall Morningstar Rating as of 06.30.21

Standardized 30-Day Subsidized Yield

0.35%

Standardized 30-Day Unsubsidized Yield

0.34%

View Fund Detail

GHYIX

Institutional

GS High Yield Municipal Fund

Seeks capital appreciation and a high level of current income exempt from federal income tax


Overall Morningstar Rating as of 06.30.21

Standardized 30-Day Subsidized Yield

1.81%

Standardized 30-Day Unsubsidized Yield

1.79%

View Fund Detail

GSMTX

Institutional

GS Dynamic Municipal Income Fund

Seeks a high level of current income that is exempt from regular federal income tax


Overall Morningstar Rating as of 06.30.21

Standardized 30-Day Subsidized Yield

1.16%

Standardized 30-Day Unsubsidized Yield

1.15%

View Fund Detail


Click on Fund Details above for standardized quarterly performance and mutual fund fees. 

All data as of 5.31.2021. Morningstar Risk-Adjusted Ratings: GS Dynamic Municipal Income Fund (Muni National Interim Category) - Class I Shares 3 Year 4 stars out of 250 funds, 5 Year 5 stars out of 223 funds, 10 year 5 stars out of 165 funds. GS High Yield Municipal Income Fund (High Yield Muni Category) - Class I Shares 3 Year 5 stars out of 178 funds, 5 Year 5 stars out of 152 funds, 10 year 4 stars out of 100 funds. GS Short Duration Tax-Free Fund (Muni National Short Category) - Class I Shares 3 Year 4 stars out of 201 funds, 5 Year 4 stars out of 178 funds, 10 year 4 stars out of 137 funds. 
The Morningstar RatingTM is calculated for funds with at least a 3-year history based on a risk-adjusted return measure that accounts for variation in a fund’s monthly excess returns. Exchange-traded funds and open-ended mutual funds are considered a single population. In each category, the top 10% = 5 stars, next 22.5% = 4 stars, next 35% = 3 stars, next 22.5% = 2 stars, and bottom 10% = 1 star. Overall rating is derived from a weighted average of the returns associated with its 3-, 5-, and 10-year (if applicable) rating, excluding all sales charges. Weights are based on the # of months of total returns: 100% 3-year rating for 36-59 months, 60% 5-year rating/40% 3-year rating for 60-119 months, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months. Rankings for other share classes may vary. The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.GSAM.com to obtain the most recent month end return.

Muni SMAs: A More Personalized Approach

Our separately managed accounts can be individually designed to meet your needs, including state-specific requirements and ongoing tax management of securities.

Read More

Other Resources

Education Center

Why Invest in Municipal Bonds?

Learn more about the role municipal bonds can play in your portfolio.

Learn More

PDF

Strength in Munis

Quarterly performance update on GSAM Muni Fixed Income Funds.

Learn More

PDF

GS Dynamic Municipal Income Fund Investment Solutions

Invest dynamically along the municipal yield curve and credit quality spectrum in an effort to maximize total return and tax-exempt income.

Learn More

Goldman Sachs Municipal Fixed Income

About Our Team

Overseeing $140+ billion of AUS¹, the GSAM Municipal Team brings decades of experience with an active and disciplined approach to investing in a market that is vast and fragmented.

Tenured

Decades of experience evaluating compelling opportunities. Over 50,000 issuers exist in the United States, each with unique financing needs for capital improvements, schools and local infrastructure.

Agile

Integrates trading and portfolio management capabilities to harness the ability to act quickly and appropriately based on market convictions, core to an active management philosophy.

Discipline

Assesses municipal bonds across sectors and credit quality, providing a comprehensive view on the opportunity set to make informed investment decisions.

Meet Our Municipal Fixed Income Team

Scott Diamond

Co-head of GSAM Municipal Fixed Income

28 years of experience


Prior to his current role, Scott was head of the Municipal Bond Trading desk within GSAM, where his responsibilities included the trading and structuring of municipal portfolios for various clients, including mutual funds, institutions and separately managed accounts for high net worth individuals. Scott joined Goldman Sachs in 2002 as a senior portfolio manager on the GSAM municipal team.

Sylvia Yeh

Co-Head of GSAM Municipal Fixed Income

21 years of experience


Sylvia overseas portfolio management, trading and research for the platform. Prior to joining GSAM, Sylvia she was head of Municipal Fixed Income for Private Wealth Management, where she worked with high net worth individuals and family offices to construct customized separately managed municipal bond portfolios. Sylvia spent 13 years as a municipal bond trader and sales person within the Securities Division. 

David Alter

Head of GSAM Municipal Research

31 years of experience


David is responsible for investment decisions for the GSAM mutual funds and accounts managed by the Municipal Fixed Income team. In 2002, he transferred to GSAM from the credit department, where he conducted research in support of the municipal banking and trading effort. David joined Goldman Sachs in 1996 and was named managing director in 2006.


1. Source: GSAM. Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not have full discretion. As of 09.30,2020.

The Goldman Sachs Dynamic Municipal Income Fund invests primarily in municipal securities, the interest on which is exempt from regular federal income tax. The Fund may invest up to 100% of its net assets in private activity bonds, whose income may be subject to the federal alternative minimum tax. Investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. High yield, lower rated investments involve greater price volatility and present greater risks, including greater liquidity risk, than higher rated fixed income securities. The Fund is subject to the risk that the liquidity of particular issuers or industries, or of all securities within a particular investment category, will shrink or disappear as a result of adverse economic, market or political events or adverse investor perception. At times, the Fund may be unable to sell certain of its illiquid investments without a substantial drop in price, if at all. The Fund may be more sensitive to adverse economic, business or political developments if it invests a substantial portion of its assets in bonds of similar projects or in particular types of municipal securities. Because the Fund may invest heavily in investments in particular states and sectors, the Fund is subject to greater risk of loss as a result of adverse events affecting those states and sectors than if its investments were not so focused. The Fund may be adversely impacted by changes in tax law rates and policies, and is not suited for IRAs or other tax-exempt or deferred accounts.

The Goldman Sachs High Yield Municipal Fund invests primarily in high yield municipal securities that, at the time of purchase, are medium quality or non-investment grade, the interest on which is exempt from regular federal income tax. The Fund may invest up to 100% of its net assets in private activity bonds, whose income may be subject to the federal alternative minimum tax. The Fund’s investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate riskHigh yield, lower rated investments involve greater price volatility and present greater risks, including greater liquidity risk, than higher rated fixed income securities. The Fund is subject to the risk that the liquidity of particular issuers or industries, or of all securities within a particular investment category, will shrink or disappear as a result of adverse economic, market or political events or adverse investor perception. At times, the Fund may be unable to sell certain of its illiquid investments without a substantial drop in price, if at all. The Fund may be more sensitive to adverse economic, business or political developments if it invests a substantial portion of its assets in bonds of similar projects or in particular types of municipal securities. Because the Fund may invest heavily in investments in particular sectors or states, the Fund is subject to greater risk of loss as a result of adverse events affecting those sectors or states than if its investments were not so focused. The Fund may be adversely impacted by changes in tax law rates and policies, and is not suited for IRAs or other tax exempt or deferred accounts. The Fund is “non-diversified” and may invest a larger percentage of its assets in fewer issuers than “diversified” mutual funds. Accordingly, the Fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio and to greater losses resulting from these developments.

The Goldman Sachs Short Duration Tax-Free Fund invests primarily in municipal securities, the interest on which is exempt from regular federal income tax and is not a tax preference item under the federal alternative minimum tax. The Fund may invest up to 20% of its portfolio in private activity bonds whose income may be subject to the federal alternative minimum tax and taxable investments. Investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. At times, the Fund may be unable to sell certain of its illiquid investments without a substantial drop in price, if at all. The Fund may be more sensitive to adverse economic, business or political developments if it invests a substantial portion of its assets in bonds of similar projects or in particular types of municipal securities. Because the Fund may invest heavily in investments in particular states and sectors, the Fund is subject to greater risk of loss as a result of adverse events affecting those states and sectors than if its investments were not so focused. The Fund may be adversely impacted by changes in tax law rates and policies, and is not suited for IRAs or other tax-exempt or deferred accounts.

The method of calculation of the 30-Day Standardized Subsidized Yield is mandated by the Securities and Exchange Commission and is determined by dividing the net investment income per share earned during the last 30 days of the period by the maximum public oering price (“POP”) per share on the last day of the period. This number is then annualized. The 30-Day Standardized Subsidized Yield reflects fee waivers and/or expense reimbursements recorded by the Fund during the period. Without waivers and/or reimbursements, yields would be reduced. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders. The 30-Day Standardized Unsubsidized Yield does not adjust for any fee waivers and/ or expense reimbursements in effect. If the Fund does not incur any fee waivers and/or expense reimbursements during the period, the 30-Day Standard Subsidized Yield and 30-Day Standardized Unsubsidized Yield will be identical.

Views and opinions expressed are for informational purposes only and do not constitute a recommendation by GSAM to buy, sell, or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change, they should not be construed as investment advice.

Goldman Sachs does not provide legal, tax or accounting advice, unless explicitly agreed between you and Goldman Sachs (generally through certain services offered only to clients of Private Wealth Management). Any statement contained in this presentation concerning U.S. tax matters is not intended or written to be used and cannot be used for the purpose of avoiding penalties imposed on the relevant taxpayer. Notwithstanding anything in this document to the contrary, and except as required to enable compliance with applicable securities law, you may disclose to any person the US federal and state income tax treatment and tax structure of the transaction and all materials of any kind (including tax opinions and other tax analyses) that are provided to you relating to such tax treatment and tax structure, without Goldman Sachs imposing any limitation of any
kind. Investors should be aware that a determination of the tax consequences to them should take into account their specific circumstances and that the tax law is subject to change in the future or retroactively and investors are strongly urged to consult with their own tax advisor regarding any potential strategy, investment or transaction.

©2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not guarantee of future results.

Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. We have relied upon and assumed without independent verification, the accuracy and completeness of all information available from public sources.

The information and services provided on this web site are intended for persons in the US only. Non-US persons are directed to our audience selecting page.
-No Bank Guarantee
-May Lose Value
-Not FDIC Insured

A summary prospectus, if available, or a Prospectus for the Fund containing more information may be obtained from your authorized dealer or from Goldman Sachs & Co. LLC by calling (retail -1-800-526-7384) (institutional – 1-800-621-2550). Please consider a fund's objectives, risks, and charges and expenses, and read the summary prospectus, if available, and the Prospectus carefully before investing. The summary prospectus, if available, and the Prospectus contains this and other information about the Fund.

Goldman Sachs & Co. LLC is the distributor of the Goldman Sachs Funds.