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Investing in a Floating NAV World

Comparing Floating NAV and Stable NAV Investments


Liquidity Calculator
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Stable NAV Investment

Floating NAV Investment

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Government Fund

Prime Fund

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Difference in Total Return:

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Source: GSAM
IMPORTANT: The projections or other information generated by Calculator: Comparing Stable NAV to Floating NAV Investments regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment returns and are not guarantees of future returns.

DEFINITIONS

Prime Money Market Funds invest primarily in short-term commercial paper and can invest in government notes. Starting in October 2016, institutional prime money market funds in the US will no longer be able to guarantee a $1 per share price. The value or NAV will float based on the current market price of their holdings. In addition, should liquidity levels fall below a stated threshold, they will incur fees on redemptions. Prime funds for individual investors in the US will maintain their stable NAV or fixed asset price, but they may incur redemption fees during periods of market volatility.
Floating Net Asset Value: Due to SEC approved amendments to Rule 2a-7, Prime Funds will now be subject to a fluctuating NAV. This is calculated multiple times throughout the day and is based upon changes in the market value of the Institutional Funds' investments.
Stable Net Asset Value is the dollar value of a mutual fund share based on the value of its underlying assets of the fund minus the liabilities, divided by the number of shares outstanding. This is calculated and priced once a day and pertains to Government Funds.
Tax-free/exempt Municipal bonds are exempt from federal taxes and from most state and local taxes, especially if the investor lives in the state in which the bond has been issued.

PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS WHICH MAY VARYNo assurance can be given that the investment returns may be achieved.
Investment analysis tools are not intended to provide investment advice. This calculator provides analysis based on your input. All results are for illustrative purposes only and are not intended to represent the performance of any Goldman Sachs product and should not be construed as an offer or solicitation to buy or sell securities.

Investment analysis tools have limitations; results may vary. An investment in money market funds is not appropriate for all investors. Investors should carefully review and consider their personal investments, risks, charges and expenses before investing.

United States: 
Government Funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a deposit of the bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Retail Funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not a deposit of the bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Institutional Funds: You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not a deposit of the bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Goldman Sachs & Co., member FINRA