Goldman Sachs Asset Management (GSAM) has agreed to acquire Deutsche Asset & Wealth Management’s (DeAWM) stable value business, which has total assets under supervision of US$21.6 billion as of 30 June 2013.
Stable value funds are capital preservation investment options available in US retirement savings plans. They invest in a diversified fixed income portfolio that is protected against interest rate volatility by wrap contracts from banks and insurance companies.
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This transaction follows GSAM’s July 2013 announcement of its intent to establish a new stable value collective trust.
As part of this transaction, John Axtell, DeAWM’s head of stable value, and other key members of the DeAWM stable value management team will join GSAM.
Eric Lane and Timothy O’Neill, co-heads of the investment management division at Goldman Sachs, said: "GSAM’s acquisition of DeAWM’s stable value business affirms our strong commitment to providing defined contribution plan participants with capital preservation investment options. The expert talent and potential client relationships that we gain from this transaction will complement our existing stable value business."
The transaction is subject to certain conditions and expected to close during the first quarter of 2014.
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By GlobalDataGSAM currently manages over US$55 billion in defined contribution mandates, including more than US$34 billion in stable value assets under supervision.
