Goldman Sachs Asset Management, L.P. (GSAM) announced today that it has reached an agreement with Fifth Third Bank for eligible plan investors in the Fifth Third Stable Value Fund to transition to the Goldman Sachs Stable Value Collective Trust (Fund), a new stable value fund expected to be formed by The Goldman Sachs Trust Company, N.A. The transaction reflects GSAM’s commitment to the defined contribution (DC) investment-only business and reinforces the importance of stable value as an investment option for retirement plan participants.
“The new Fund enables GSAM and its affiliates to expand access to stable value solutions to an even greater number of retirement plans and their participants,” said Eric S. Lane and Timothy J. O’Neill, global co-heads of the Investment Management Division at Goldman Sachs, in a formal statement. “Stable value continues to be an important asset class for DC plans and our new Stable Value Collective Trust will be an opportunity to respond to strong demand in the marketplace.”
GSAM built on its historically strong fixed income capabilities with the acquisition of Dwight Asset Management Company LLC (Dwight) in May 2012. The Dwight stable value portfolio management team has been advising the Fifth Third Stable Value Fund since 1998 and will be adviser in respect of the stable value contracts for the Fund. The Goldman Sachs Trust Company, N.A. will act as trustee for the Fund, and GSAM and Dwight will be the investment advisers for the Fund’s investment portfolio.
Currently, stable value is offered in approximately half of all 401(k) plans
. GSAM has over $34 billion in stable value assets as part of over $55 billion in DC assets under supervision (AUS)
. This agreement is GSAM’s latest step in delivering capabilities that help meet the needs of DC plan sponsors.
The transaction with Fifth Third is expected to close by the fourth quarter of 2013, at which time we anticipate the launch of the Goldman Sachs Stable Value Collective Trust.