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Goldman Sachs Municipal Fixed Income

THE JOURNEY HOME

We believe it is time for investors to pare credit risk back to neutral, opportunistically extend duration and strategically deploy cash. Learn more in our Municipal Fixed Income Outlook 2022.
MUNICIPAL BONDS AND BEYOND: BUILDING A BETTER TAX-AWARE STRATEGY

Global Fixed Income

MUNICIPAL BONDS AND BEYOND: BUILDING A BETTER TAX-AWARE STRATEGY

As investors, we believe strongly in the importance of active tax management. As the saying goes, “it’s not what you earn, it’s what you keep.” By providing investors with interest payments that are exempt from federal taxes, municipal bonds have long played a critically important role in helping investors keep more of what they earn. But the way we see it, having the flexibility to add taxable securities to the mix can do even more to maximize individual tax efficiency and potentially enhance after-tax returns.

Resources & Insights

Munis in a Minute 

Got a Minute? We're Talking Munis


David Alter

Head of Municipal Credit Research, Goldman Sachs Asset Management

David Alter


Scott Diamond

Co-Head of Municipal Fixed Income, Goldman Sachs Asset Management

Scott Diamond

  • GSAM Connect

    Municipal Bonds: Are We There Yet?

    09 June 2022 The Fed’s hawkish turn has pushed up yields and pushed down prices of nearly all types of bonds, Munis being no exception. Now, investors face the difficult task of deciding when to wade back in given higher yields, locking in higher income and return potential. Read more about our views on The Fed’s path here. Read More
  • Municipal Market Quarterly: Choppy Seas - Heightened Volatility Amid Macro Cross-Currents

    30 June 2022 Access quarterly fund specific market commentary and performance attribution. Download Now
  • GSAM Connect

    Can Municipal Bonds Handle Higher Rates?

    31 January 2022

    Amid a continued strong economic backdrop and persistently high inflation, the Federal Reserve appears set to deliver a series of interest-rate hikes in 2022. That’s makes some municipal bond investors nervous. But recent history suggests Fed rate hikes may not be such bad news for muni portfolios.

    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 08.31.22

Standardized 30-Day Subsidized Yield

1.93%

Standardized 30-Day Unsubsidized Yield

1.91%

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 08.31.22

Standardized 30-Day Subsidized Yield

3.80%

Standardized 30-Day Unsubsidized Yield

3.78%

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 08.31.22

Standardized 30-Day Subsidized Yield

3.06%

Standardized 30-Day Unsubsidized Yield

3.05%

View Fund Detail


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

All data as of 10.31.2021. Morningstar Risk-Adjusted Ratings: GS Dynamic Municipal Income Fund (Muni National Interim Category)—Class I Shares 3 Year 4 stars out of 274 funds, 5 Year 5 stars out of 253 funds, 10 Year 5 stars out of 171 funds. GS Short Duration Tax-Free Fund (Muni National Short Category)—Class I Shares 3 Year 3 stars out of 209 funds, 5 Year 4 stars out of 178 funds, 10 Year 4 stars out of 134 funds. GS High Yield Municipal Fund (High Yield Muni Category)—Class I Shares 3 Year 4 stars out of 186 funds, 5 Year 5 stars out of 154 funds, 10 Year 5 stars out of 104 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

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 Municipal Fixed Income

Scott Diamond

28 years of experience


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

Sylvia Yeh

21 years of experience


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

David Alter

31 years of experience

 

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

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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.