Goldman Sachs MLP Income Opportunities Fund Reduces Leverage Amid Commodity Volatility
March 09 2020 - 8:35PM
Business Wire
Given unprecedented commodity price volatility, the portfolio
management team of the Goldman Sachs MLP Income Opportunities
Fund (the “Fund”) (NYSE: GMZ) has decided to effectively
eliminate the net leverage of the Fund. By terminating its fixed
rate borrowings, the Fund incurred significant interest rate
breakage costs. The recent market volatility coupled with the
effective elimination of leverage has resulted in a material impact
to the Fund’s net asset value. The portfolio management team will
continue to evaluate the distribution level of the Fund in the
coming quarters.
Portfolio holdings as of December 31, 2019, as well as
additional information regarding the Fund, can be accessed through
the GSAM Closed-End Fund landing page at www.GSAMFUNDS.com/cef.
Goldman Sachs MLP Income Opportunities Fund
Goldman Sachs MLP Income Opportunities Fund is a
non-diversified, closed-end management investment company managed
by Goldman Sachs Asset Management’s (“GSAM’s”) Energy &
Infrastructure Team, which is among the industry’s largest MLP
investment groups. The Fund began trading on the NYSE on November
26, 2013. The Fund seeks a high level of total return with an
emphasis on current distributions to shareholders. The Fund invests
primarily in master limited partnership (“MLP”) investments, a
significant portion of which deliver midstream infrastructure to
support growing hydrocarbon extraction. These include investments
in pipeline operators, natural gas processors, natural gas liquids
fractionators and storage facilities.
About Goldman Sachs Asset Management, L.P.
GSAM is the asset management arm of The Goldman Sachs Group,
Inc. (NYSE: GS) and supervises $1.69 trillion as of December 31,
2019.1 GSAM has been providing discretionary investment advisory
services since 1988 and has investment professionals in all major
financial centers around the world. The company offers investment
strategies across a broad range of asset classes to institutional
and individual clients globally. Founded in 1869, Goldman Sachs is
a leading global investment banking, securities and investment
management firm that provides a wide range of financial services to
a substantial and diversified client base that includes
corporations, financial institutions, governments and
high-net-worth individuals.
1Assets Under Supervision (AUS) includes assets under management
and other client assets for which Goldman Sachs does not have full
discretion.
Disclosures
Shares of closed-end investment companies frequently trade at a
discount from their net asset value (“NAV”), which may increase
investors’ risk of loss. At the time of sale, an investor’s shares
may have a market price that is above or below NAV, and may be
worth more or less than the original investment. There is no
assurance that the Fund will meet its investment objective. Past
performance does not guarantee future results. Investments in
securities of MLPs involve risks that differ from investments in
common stock, including among others risks related to limited
control and limited rights to vote on matters affecting MLPs,
potential conflicts of interest risk, cash flow risks, dilution
risks and trading risks.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy any security. The Fund has
completed its initial public offering. Investors should consider
their investment goals, time horizons and risk tolerance before
investing in the Fund. An investment in the Fund is not appropriate
for all investors, and the Fund is not intended to be a complete
investment program. Investors should carefully review and consider
the Fund’s investment objective, risks, charges and expenses before
investing.
Compliance Code: 030920.MF.IP.OTU
Date of First Use: March 9, 2020
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version on businesswire.com: https://www.businesswire.com/news/home/20200309005873/en/
Media: Patrick Scanlan 212-902-6164
Investors: Immanuel Tan 917-343-3375
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