Goldman Sachs Asset Management to Launch New Stable Value Fund
Seeking to meet plan sponsor demand for pooled stable value funds
NEW YORK -- June 21, 2013
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
“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^1. GSAM has over $34 billion in stable value assets as part of over $55
billion in DC assets under supervision (AUS)^2. This agreement is GSAM’s
latest step in delivering capabilities that help meet the needs of DC plan
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
Goldman Sachs Asset Management is the asset management arm of The Goldman
Sachs Group, Inc. (NYSE: GS), which manages $860 billion as of March 31, 2013.
Goldman Sachs Asset Management 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
The Goldman Sachs Stable Value Collective Trust (the Fund) has not been
launched yet. This press release is delivered solely for informational
purposes with respect to the Fund, an investment product that Goldman Sachs
may offer in the future.
This information is provided for informational purposes only and is not an
offer or solicitation to invest in any Goldman Sachs product.Any offers in
the future will be made by the Goldman Sachs Trust Company, N.A. solely to
certain eligible trusts, certain government plans, and certain insurance
company separate accounts for which such an investment would be considered
suitable and would be lawful and which can afford to invest in investment
vehicles having the risks, objectives and prospects of the Fund.
Views and opinions are current as of the date of this presentation and may be
subject to change, they should not be construed as investment advice.
^1 Stable Value Investment Association, March 31, 2013
^2 GSAM, April 30, 2013
Goldman Sachs Asset Management
Andrea Raphael, 212-357-0025
Fifth Third Bank
Barbara Grimsley, 513-534-6791
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