Goldman Sachs Asset Management resigned as a named fiduciary of the $19.8 billion Central States, Southeast & Southwest Areas Pension Fund, Rosemont, Ill.
The pension fund plans to transfer the 30% of plan assets that Goldman Sachs controlled to Northern Trust Global Advisors, the fund's other named fiduciary, then move 10% of the plan's assets to passively managed index funds, according to a filing in U.S. District Court in Chicago.
Goldman and Northern each oversaw 30% of the fund's assets in diversified allocations, while Mellon Capital Management managed 20% of the fund in an S&P 500 index fund and 20% in a Barclays Aggregate Bond index fund, according to a 2008 U.S. District Court report. More recent figures were not available.
As named fiduciaries, Goldman Sachs and Northern have discretion to allocate funds they oversee to managers they select, although they cannot manage money themselves for the fund.
Frank J. McGarr, independent special counsel of the Central States, didn't provide a reason in the filing for the Goldman Sachs resignation. Mr. McGarr couldn't be reached for comment.
Goldman Sachs notified the fund Feb. 10 of its intention to resign, according to the filing in U.S. District Court, dated May 19.
Judge Milton I. Shadur of U.S. District Court in Chicago would have to approve the Central States changes, the filing states. The fund operates under U.S. District Court supervision through a consent decree dating to 1978 with the Department of Labor to oversee the integrity of the management of the fund.
The fund's allocation as of March 31 was 69% equity, 27% fixed income, 2% cash and 2% other, according to the filing.
Mark Angerame, Central States CFO, couldn't be reached; Goldman Sachs spokeswoman Andrea Raphael said GSAM officials declined to comment about a client. Joesph De Wolk, Labor Department spokesman, said he was unable to reach appropriate DOL officials to respond with information about the fund.