Historically, many municipal bonds were backed by insurance, which resulted in AAA credit ratings and a high correlation to US government bonds. Fewer municipal bonds are backed by insurance today, increasing the diversity of municipal bond credit ratings while reducing their correlation to government bonds. We think this evolution may create attractive yield and diversification opportunities for active municipal bond investors.
Source: Morningstar, Bloomberg, and GSAM. As of 12/31/19.
High Yield Municipals are represented by the Bloomberg Barclays High Yield Municipal Bond Index, an unmanaged index made up of bonds that are non-investment grade, unrated, or rated below Ba1 by Moody’s Investors Service with a remaining maturity of at least one year.
Municipals are represented by the Bloomberg Barclays US Municipal Index, which covers the USD- denominated long-term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds.
Past performance does not guarantee future results, which may vary. It is not possible to invest directly in an unmanaged index. Diversification does not protect an investor from market risk and does not ensure a profit.
GS Short Duration Tax-Free Fund
Seeks high quality, short-term tax-free income
Morningstar Risk-Adjusted Ratings: GS Short Duration Tax-Free Fund (Muni National Short Category) - Class I Shares 3 Year 4 stars out of 176 funds, 5 Year 4 stars out of 158 funds, 10 year 4 stars out of 114 funds.
GS Dynamic Municipal Income Fund
Seeks to optimize tax-free total return through an active, flexible approach
Morningstar Risk-Adjusted Ratings: GS Dynamic Municipal Income Fund (Muni National Interm Category) - Class I Shares 3 Year 5 stars out of 239 funds, 5 Year 5 stars out of 215 funds, 10 year 5 stars out of 149 funds.
GS High Yield Municipal Fund
Seeks a high level of tax-free income by investing across high yield and investment grade credit
Morningstar Risk-Adjusted Ratings: GS High Yield Municipal Income Fund (High Yield Muni Category) - Class I Shares 3 Year 5 stars out of 155 funds, 5 Year 5 stars out of 135 funds, 10 year 5 stars out of 89 funds.