Goldman Sachs Asset Management announced its appointment by the UPS pension plan fiduciaries to provide investment management services for UPS’s US and Canadian-defined benefit pension plan assets. And UPS’s North American pension plans have a combined $43.4 billion in assets as of March 31, 2024.
This partnership is one of the largest corporate pension OCIO mandates so far. It continues the trend of increasingly large and complex plan sponsors seeking robust outsourced solutions to manage their pension portfolios. And the mandate affirms Goldman Sachs’ position as the largest OCIO manager in the US, with over $325 billion in OCIO assets under supervision globally.
In connection with the appointment, the UPS in-house investment management team is expected to join Goldman Sachs’ Atlanta office and continue to provide investment management services to the pension plans.
The team transition also helps further Goldman Sachs’ commitment to expanding its Atlanta presence, adding deep pension expertise to its growing local office of approximately 200 employees. The asset management and team transition to Goldman Sachs is also expected to occur in the third quarter of 2024.
UPS’ pension plans will benefit from both continuity and enhanced services through Goldman Sachs’ global investment and risk management capabilities and the integration of the in-house team.
The plan fiduciaries’ decision to appoint Goldman Sachs follows a competitive search. It reflects the firm’s experience partnering with pension plans of all sizes and integrating investment teams. Goldman Sachs’ strength in liability-driven investing (LDI) to help protect pensioners’ benefits offers one of the world’s leading open architecture platforms. It has extensive investment capabilities and experience across public and private markets.
KEY QUOTES:
“We are grateful to UPS’s pension plan fiduciaries for entrusting us with this significant mandate and we look forward to welcoming a number of talented new colleagues. Outsourced CIO solutions can deliver investment excellence, economies of scale and enhanced risk management while allowing corporate and pension plans of all sizes to focus on their core business.”
– Marc Nachmann, Global Head of Asset & Wealth Management at Goldman Sachs
“After extensive evaluation of market trends and asset managers, we are happy to announce that UPS has chosen Goldman Sachs Asset Management to take on this important role. I’m confident this team will ensure strong continuity and best-in-class pension asset management with no change to benefits for plan participants. This decision also allows UPS to place our focus more squarely on serving our customers while adding more oversight and expertise that will benefit retirees.”
– PJ Guido, SVP Capital Markets and Investor Relations Officer at UPS
