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    FIXED INCOME TAX-AWARE SEPARATELY MANAGED ACCOUNTS

    A Holistic Approach to Fixed Income Investing

    Strategy

    Flexible approach to investment grade fixed income

    Benefit

    Access to diversification and relative value across asset classes

    Goal

    Enhanced after-tax income

    13 Years

    Average Experience Across Muni Team

     

    $110B

    Municipal Assets Under Supervision in Separate Accounts

    As of December 31, 2023

    Two Core Offerings. One Powerful Approach

    The Fixed Income Tax-Aware separately managed account (SMA) blends two core Goldman Sachs offerings: municipals and corporate fixed income. The strategy offers broad, investment-grade exposure with prudent risk oversight and access to a tenured team that manages more than $159 billion of municipal assets, including $110 billion in separately managed accounts.

     
    Download Fact Sheet

    Get quick details and information about this SMA solution.

    How It Works

    Leveraging decades of fixed income experience, our investment team aims to offer enhanced after-tax yields with a tailored approach to asset allocation that takes into account an individual's tax rate, credit risk considerations, and relative value across the investment-grade fixed income markets.

    Investment Allocation Range

    Implementation

    An optimization engine will assess relative value across various fixed income markets in combination with an individual’s tax rate to create customized asset allocations within a standardized risk framework.

    Portfolio Composition

    A blend of taxable and tax-exempt investment grade fixed income securities, primarily comprised of corporate and municipal bonds.

    Interest Rate Risk

    Laddered short- and intermediate-duration portfolios with duration targets of either 3 or 4.5 years.

    Credit Quality

    Securities rated investment grade at time of purchase. Portfolio aims to maintain at least an A3/A-average credit rating.

    Tax Efficiency

    Seeks to maximize tax efficiency by accounting for state and federal tax rates when making investment decisions, while also limiting taxable consequences and tax-loss harvesting when appropriate.

    Relative Value

    Flexibility to take advantage of relative value opportunities within the tax-exempt and taxable municipal bond market in addition to corporate bonds to enhance after-tax yield.

    Navigating a Complex Landscape.

    Looking across various fixed income asset classes could improve after-tax income and offer diversification benefits – as different segments of the market deliver varying degrees of risk, return, and income over time. We believe it’s important for investors to work with an active manager that has the flexibility to navigate these evolving market dynamics.

    Illustrative Portfolio (40.8% Tax Rate)

    Customized portfolios offer enhanced after-tax income potential by considering both an individual's federal tax rate and current relative value between investment-grade municipals and taxable bonds.

    Start the Conversation

    Connect with our team and learn more about our Fixed Income Tax Aware SMA.

     
    Let's Talk

    Who It's For

    May be suitable for investors seeking:

    1.

    Enhanced After-Tax Income

    While municipal bonds typically offer attractive after-tax income, casting a wider net incorporating taxable bonds may enhance after-tax income potential.

    2.

    Broad Exposure Across Investment-Grade Fixed Income

    This strategy aims to capitalize on after-tax income opportunities through exposures to investment-grade municipals and taxable bonds.

    3.

    Customized Solutions

    Seeks to maximize individual tax efficiency via state-level consideration and ongoing tax management of the individual securities.

    Management Team

    Tenured. Agile. Disciplined. Goldman Sachs Asset Management offers access to an industry-leading portfolio management team with the flexibility and expertise to navigate today’s complex fixed-income market.

     

    Scott Diamond

    Co-Head of Municipal Fixed Income. 28 years of experience

    Scott Diamond

     

     

    Scott joined Goldman Sachs Asset Management in 2002 as a senior portfolio manager working with high net worth and institutional clients. Before joining Goldman Sachs, Scott spent nine years at Prudential Financial, where he served as a portfolio manager for various national and state specific municipal mutual funds and institutional accounts. He also worked as a municipal trader and credit research analyst. Scott received his B.A. in Psychology from Rutgers University in 1989, his M.B.A. from Seton Hall University in 1993, and was awarded his CFA designation in 1998.

    Sylvia Yeh

    Co-Head of Municipal Fixed Income. 23 years of experience

    Sylvia Yeh

     

     

    Prior to her current role, Sylvia was head of Municipal Fixed Income for Private Wealth Management in the Investment Management Division, where she built separately managed municipal bond portfolios for high net worth individuals and family offices. Sylvia was also a member of the Private Wealth Management Best Execution Committee. Before that, she spent 13 years as a municipal bond trader and salesperson within the Securities Division. Sylvia joined Goldman Sachs in 1999 and was named managing director in 2015. She earned a BS in Finance from The State University of New York at Albany in 1997.

    David Alter

    Head of Credit Research. 31 years of experience

    David Alter

     

     

    David manages the Municipal Research team and is responsible for municipal credit decisions for mutual funds, individual accounts and institutional investments managed by the Municipal Fixed Income team. Before 2002, he did research in support of municipal banking and trading for the Goldman Sachs credit department. David started his career in the Public Finance Department at Moody’s Investors Service. He is a member of the Municipal Analyst Group of New York and earned his BA in Economics from the City University of New York in 1989.

    Ed Paulinski

    Head of Municipal Separately Managed Accounts. 19 years of experience

    Ed Paulinski

     

     

    Ed heads Goldman Sachs Asset Management’s Municipal Separately Managed Accounts (SMA) platform. He joined the company in 2014 as a portfolio manager in Private Wealth Management. Prior to that, he spent 12 years managing municipal bond portfolios at  Western Asset Management with a focus on the firm’s separately managed account business. Ed received his B.A. in Economics from the State University of New York at New Paltz in 2002 and his M.B.A. from Baruch College in 2008.

    Things to Know

    What is duration?

    Duration is the method of determining a bond’s price sensitivity given a change in interest rates. The duration for fixed income securities is calculated by determining the  price movement due to a 100 basis point change in market interest rates. This calculation  incorporates the change in value of any embedded options that exist. 

    Are these portfolios actively managed? 

    Goldman Sachs Separately Managed Accounts are actively managed by our tenured team of investment professionals.

    What is volatility?

    Volatility is a measure for variation of price of a financial instrument over time. 

    What is the minimum account size for this strategy?

    The minimum account size for this strategy is $250,000.

    What is the credit quality rating?

    A credit quality rating assesses the financial ability of a debt issuer to make timely payments of principal and interest. Ratings of AAA (the highest), AA, A, and BBB are investment-grade quality. Ratings of BB, B, CCC, CC, C and D (the lowest) are considered below investment grade, speculative grade, or junk bonds.

    How do I get started?

    To get started, contact a member of our team.

     
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    Resources & Insights

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    Risk Considerations

    Municipal Securities are subject to credit/default risk, interest rate risk and certain additional risks. High-yield, lower-rated securities involve greater price volatility and present greater credit risks than higher-rated fixed income securities. Investments in fixed-income securities are subject to credit and interest rate risks. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline in the bond’s price. Credit risk is the risk that an issuer will default on payments of interest and principal. All fixed income investments may be worth less than their original cost upon redemption or maturity. Income from municipal securities is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for some investors may be subject to the federal Alternative Minimum Tax (AMT).

    Investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity, interest rate, prepayment and extension risk. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline in the bond’s price.  The value of securities with variable and floating interest rates are generally less sensitive to interest rate changes than securities with fixed interest rates. Variable and floating rate securities may decline in value if interest rates do not move as expected. Conversely, variable and floating rate securities will not generally rise in value if market interest rates decline. Credit risk is the risk that an issuer will default on payments of interest and principal. Credit risk is higher when investing in high yield bonds, also known as junk bonds. Prepayment risk is the risk that the issuer of a security may pay off principal more quickly than originally anticipated. Extension risk is the risk that the issuer of a security may pay off principal more slowly than originally anticipated. All fixed income investments may be worth less than their original cost upon redemption or maturity.


    Disclosures
    Views and opinions expressed are for informational purposes only and do not constitute a recommendation by Goldman Sachs Asset Management to buy, sell, or hold any security, they should not be construed as investment advice.
     
    All investments involve risk including possible loss of principal. Individual asset classes involve unique risks. Bonds and fixed income investing are subject to interest rate risk. When interest rates rise, bond prices fall. Equity securities are more volatile than bonds and greater risks. Small cap company stocks involve greater risks than those customarily associated with larger companies. International securities entail special risks such as currency, political, economic, and market risks. These risks are heightened in emerging markets securities which may be less liquid and more volatile.

    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.
     
    There is no guarantee that objectives will be met.

    The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

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

    364375-TMPL-04/2024-2000570

    © 2025 Goldman Sachs. All rights reserved.

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