Goldman Sachs Asset Management (GSAM) has introduced two new funds: the Goldman Sachs International Equity Dividend and Premium Fund and the Goldman Sachs Structured International Tax-Managed Equity Fund.
Both Funds seek to provide attractive international tax-advantaged investing. The goal of the Goldman Sachs International Equity Dividend and Premium Fund, designed for retirees who may or may not outlive their assets, is to create an after-tax cash flow through returns that enjoy favorable tax treatment.
Alternatively, the Goldman Sachs Structured International Tax-Managed Equity Fund, which targets individuals who are unlikely to outlive their assets and who plan to pass their estate along to family or charities, seeks to generate returns through price appreciation, which is not subject to current taxation.
Both Funds are designed for investors looking for tax efficiencies in their taxable portfolios.
To seek to achieve their goal of tax efficiency, both Funds use similar strategies, including: limiting portfolio turnover that may result in short-term capital gains; selling securities with a higher tax basis before those with a lower tax basis; and realising short-term losses to offset short-term and long-term capital gains.
“GSAMs creation of these two international equity funds specifically designed for retirement planning reflect our recognition of the much longer life spans that Americans are enjoying and our firm conviction that their investment needs must be met with the greater growth potential that stocks offer compared to bonds. The tax efficiency features built into these funds leaves investors with the potential for greater possibilities of principal growth,” says Don Mulvihill, managing director and product manager for Tax-Efficient Strategies at GSAM.