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Goldmans Sachs to buy RBS's MMFs
21 October 2013
Deal to be completed early 2014, subject to regulatory approval
money market funds
Goldman Sachs Asset Management (GSAM) has announced it is to acquire RBS Asset Management's Global Treasury money market funds (MMFs).
The asset manager said the acquisition would complement its portfolio of fixed income and liquidity management businesses, as well as almost doubling the size of its fund range.
GSAM has $195bn in MMF assets under management, 33% of which is in Europe.
Kathleen Hughes, GSAM's global head of liquidity sales and European head of institutional sales, said: "This acquisition has the potential to nearly double the size of our sterling-denominated offering and strengthen GSAM's position in the European market, ensuring we are well-positioned to deliver the scale and service that our clients have come to expect."
The transaction is expected to be completed early next year, subject to regulatory approval by the Central Bank of Ireland and the Irish Stock Exchange, as the funds are Irish-domiciled, and also an investor vote.
Both Goldman Sachs Asset Management and RBS said they were “fully committed” to ensuring a seamless transition. GSAM promised there would be no changes in how accounts are managed during the transition, with none to be borne by the funds or investors.
Scott McMunn, CEO, RBS Asset Management, said: "From RBS's perspective, this transaction represents another stage in our strategic plan to focus on our core customer franchises. We are confident that this represents the best deal for our clients."