Goldman Sachs Asset Management (GSAM), a division of
Goldman Sachs Group, Inc.
), announced its plans to acquire the Global Treasury Funds from
RBS Asset Management (RBSAM), an arm of T
he Royal Bank of Scotland Group plc
). The Global Treasury Funds comprise money market funds.
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According to Goldman, the deal could nearly double its
Sterling-denominated offering in the European market. GSAM has
33% share in Europe of its total money market funds worth $195
billion as of Sep 30, 2013.
RBS, in order to increase focus in its core operations, has
decided to exit the money market fund arm, entrusting Goldman
with client service. Until the transition is complete, RBS and
GSAM will work together to ensure proper service to RBS' money
market fund clients. Further, there will be no changes in the
management of accounts. Alongside, funds or investors will not
bear any expenses during the transition period.
The deal is likely to close in first-quarter 2014. Since the
Global Treasury Funds are based in Ireland, approval by the
Central Bank of Ireland and the Irish Stock Exchange is required
to close the deal.
In Sep 2013, GSAM announced its decision to acquire Deutsche
Asset & Wealth Management (DeAWM), a part of
Deutsche Bank AG
), with total assets worth $21.6 billion (as of Jun 30, 2013).
The deal is likely to close in first-quarter 2014. In May 15,
2012, GSAM had acquired Dwight Asset Management (Dwight) from Old
Mutual Asset Management (OMAM). Both the transactions will expand
its defined contribution (DC) franchise.
Goldman currently carries a Zacks Rank #3 (Hold).
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) is a better performing banking stock with a Zacks Rank #1