Goldman Sachs MLP Income Opportunities Fund Announces Quarterly Distribution of $0.210 Per Share
Goldman Sachs MLP Income Opportunities Fund (the “Fund”) (NYSE: GMZ)
announces its quarterly distribution of $0.210 per common share. This
represents a reduction of $0.135 per share from the previous quarter’s
distribution of $0.345 per share. The distribution is payable on the
date noted below.
The distribution schedule is as follows:
February 18, 2016
February 22, 2016
February 29, 2016
$0.210 per share
As the broader energy sector has continued to be under extraordinary
pressure, master limited partnerships (“MLPs”) have also been negatively
impacted. In the short term, Goldman Sachs Asset Management’s (“GSAM’s”)
Energy & Infrastructure Team expects continued volatility as long as
headwinds persist, such as the historically low price of oil, financing
concerns, and technical factors including increased correlation of MLPs
to crude oil prices.
In this challenging environment, the Fund’s distributable cash flow has
declined due to factors including portfolio deleveraging in response to
adverse market conditions, distribution cuts affecting certain holdings
of the Fund, as well as merger & acquisition activity resulting in lower
yielding companies. From December 31, 2014 through December 31, 2015,
the Fund reduced its leverage from $276.0 million, representing 25.6% of
managed assets (23.0% of managed assets, net of cash held by the Fund)
to $134.0 million, representing 25.6 % of managed assets (21.8% of
managed assets, net of cash held by the Fund). This is a 51.4% decrease
from the end of 2014 to the end of 2015.
To determine a distribution amount that the Fund believes is reasonable
given the current environment, the Fund’s investment adviser analyzed
the impact of a range of potential investment scenarios on the Fund’s
potential distributable cash flows, including different leverage levels
and potential distribution cuts by certain of the Fund’s largest
holdings. “We recognize the impact that the volatility of the sector has
had on the performance of the Fund and we believe that, in light of our
analysis, the Fund’s distribution amount is prudent given the current
market environment,” said Kyri Loupis, Managing Director of GSAM’s
Energy & Infrastructure Team and Portfolio Manager of the Fund.
It is currently anticipated that a portion of this distribution will be
treated for tax purposes as a return of capital; however, the final
characterization of such distribution will be made in the coming months
when the Fund can determine its earnings and profits for the full year.
The final tax status of the distribution may differ substantially from
this preliminary information.
First Quarter 2016 MLP Closed-End Funds Conference Call
Goldman Sachs Asset Management (“GSAM”) will host a master limited
partnership (“MLP”) market update conference call on February 4, 2016 at
1:00 PM EST. The call will cover the market environment for U.S. energy
and provide an update on the closed-end fund investment strategies.
The live webcast can be accessed via the web portal using conference ID:
gsammlp2016 or through the GSAM Closed-End Fund landing page at www.GSAMFUNDS.com/cef.
Questions may be submitted via the webcast during the call.
Dial In Number: 1-866-464-2452
Conference ID: 31376993
Goldman Sachs MLP Income Opportunities Fund
Goldman Sachs MLP Income Opportunities Fund is a non-diversified,
closed-end management investment company which began trading on the NYSE
on November 25, 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. The Fund is managed by Goldman Sachs Asset
Management’s (GSAM’s) Energy & Infrastructure Team, which is among the
industry’s largest MLP investment groups.
About Goldman Sachs Asset Management, L.P.
GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE:
GS), and supervises $1.08 trillion as of December 31, 2015.1
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
1Assets Under Supervision (AUS) includes assets under
management and other client assets for which Goldman Sachs does not have
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.
MLP distributions consist largely of return of capital and not of
current income. The ultimate composition of these distributions may vary
due to a variety of factors including projected income and expenses,
depreciation and depletion, and any tax elections made by the MLP. The
final characterization of such distribution will be made when an MLP can
determine each investor's share of the MLP's income, expenses, gains and
losses. The final tax status of the distribution may differ
substantially from this information.
For additional information, please visit the Fund’s website at www.gsamfunds.com/cef
© 2016 Goldman Sachs. All rights reserved.
Compliance Code: 31008
Date of First Use: 2/3/2016
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