Goldman Sachs Municipal Income Fund to change name, strategy

By Toni Weeks

San Luis Obispo, Calif., Dec. 17 – The board of trustees of Goldman Sachs Trust announced a change to the name, investment objective, principal strategy and benchmark of its Goldman Sachs Municipal Income Fund.

According to a 497 filing with the Securities and Exchange Commission, the new name will be the Goldman Sachs Dynamic Municipal Income Fund.

The existing investment objective of seeking a high level of current income exempt from regular federal income tax, consistent with preservation of capital, will change to seeking a high level of current income exempt from regular federal income tax.

Although the fund will continue to invest in fixed-income securities that are exempt from regular federal income tax, the new strategy will seek to add value through capitalizing on municipal market inefficiencies by targeting a duration bandwidth of two to eight years and by providing flexibility for the fund to invest up to 30% of its net assets in securities rated below investment grade or, if unrated, determined by the investment adviser, New York-based Goldman Sachs Asset Management, LP, to be of comparable credit quality.

Finally, the fund’s benchmark will change to the Barclays Municipal Bond 1-10 Year Blend index from the Barclays Municipal Bond index.

The changes will take effect on Dec. 18.

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