Goldman Sachs Asset Management is to acquire Global Treasury Funds, a range of money market funds managed by RBS Asset Management and domiciled in Ireland.
The range is comprised of constant net asset value funds, which are hotly debated after the European Union proposed a 3% capital buffer for constant net asset value money market funds.
Ratings agency Moody’s says this could raise fees by 30 basis points.
The deal, which is expected to close in the first quarter of next year, could nearly double the size of Goldman Sachs’ sterling-denominated offering.
Timothy J. O’Neill and Eric S. Lane, co-heads of the investment management division at Goldman Sachs, say the acquisition emphasises a strong and continued commitment to provide liquidity solutions.
The asset management division of Goldman Sachs manages $195 billion (€142.6 billion) in money market funds, 33% of which is held in Europe.
Scott McMunn, chief executive officer at RBS Asset Management, says the deal represents another stage in a strategic plan to focus on core customer franchises. “We are confident that this represents the best deal for our clients,” McMunn adds.
Both asset managers say they are committed to ensure a seamless transaction, and that there will be no changes in how accounts will be managed during the transition period. No expenses will be borne by any of the funds or investors, they say.
The deal is subject to approval by the Central Bank of Ireland and the Irish Stock Exchange as well as investor vote.
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