Sept. 13 (Bloomberg) -- Goldman Sachs Group Inc.’s Eileen Rominger, who serves as chief investment officer for portfolio management businesses within the firm’s fund unit, is stepping down at the end of the year and won’t be replaced.
Rominger, who has worked at Goldman Sachs for 11 years, oversaw fixed income, fundamental equity and quantitative investment strategies within Goldman Sachs Asset Management, according to an internal memo dated Sept. 10. Melissa Daly, a spokeswoman for New York-based Goldman Sachs, confirmed the contents of the memo.
Goldman Sachs Asset Management, which handled $802 billion as of June 30, accounts for less than 9 percent of the firm’s revenue. Rominger’s retirement from the firm coincides with the announcement last week that Jim O’Neill, Goldman Sachs’s London-based chief economist and creator of the BRICs acronym to describe large emerging markets, would assume a new role as chairman of asset management.
Rominger “reinforced and enhanced our investment culture and facilitated the sharing of ideas across portfolio management teams during a time of tremendous market volatility and change,” Ed Forst and Tim O’Neill, global co-heads of Goldman Sachs’s investment-management division, said in the Sept. 10 memo. “We are confident that the structure that Eileen has put in place will serve us well into the future.”
Rominger’s departure was reported earlier today by Financial News.
Asset management generated $1.92 billion in revenue in the first six months of this year, up 3 percent from a year earlier, according to the firm’s second-quarter earnings report. Assets within GSAM fell 4.5 percent in the quarter as clients pulled cash from money market and equity funds. Stock market declines also reduced the level of assets under management.
In February, the division’s co-head, Marc Spilker, left the firm after two decades and was replaced by Forst, who had returned to Goldman Sachs from a job at Harvard University five months earlier. Spilker and Tim O’Neill had been promoted to run the unit in June 2008 when Forst exited to work at Harvard. Three months before Forst left, division co-head Peter Kraus had departed. Eric Schwartz, another previous co-head, left in 2007.
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