Goldman Sachs Asset Management has announced it is set to acquire the money market funds business of RBS' asset management arm.
The US firm will acquire the UK bank's Global Treasury Funds' division, which is an Irish domiciled fund range, as it aims to strengthen its fixed income and liquidity management businesses in Europe and around the world.
The sale follows RBS' decision to exit the money market funds business and both companies have said they will work in partnership to ensure a seamless transition.
Commenting on the transaction, Scott McMunn, CEO, RBSAM said: 'From RBS’s perspective, this transaction represents another stage in our strategic plan to focus on our core customer franchises.'
There will be no changes in how accounts will be managed during the transition period and no expenses will be borne by any of the funds or investors.
The transaction is expected to close in the first quarter of 2014, subject to approval by the Central Bank of Ireland and the Irish Stock Exchange, as well as a fund investor vote.
'GSAM is a global leader in liquidity management with $195 billion in money market fund assets under management, 33% of which is in Europe,' said Kathleen Hughes, GSAM’s global head of liquidity sales and European head of institutional sales.
'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.'