Goldman Sachs Asset Management will acquire the $161 million Rising Dividend Growth Fund, a five-star Morningstar-rated mutual fund managed by Dividend Growth Advisors, confirmed Andrea Raphael, GSAM spokeswoman.
Terms of the deal, under which DGA will act as subadviser for the fund, aren't being disclosed.
In a Goldman Sachs news release, James McNamara, a managing director at GSAM and president of Goldman Sachs Funds, said the growth fund — which will be reorganized into the newly launched Goldman Sachs Rising Dividend Growth Fund — should help GSAM meet “significant client demand for equity income products.”
The reorganization will require approval from shareholders of the fund, with proxy materials expected to be put before those shareholders in early 2012.
In a telephone interview, C. Troy Shaver Jr., president and CEO of Dividend Growth Advisors, welcomed the partnership with GSAM, which will put Goldman’s distribution muscle behind the rising dividend investment strategy. Aside from the more than $160 million that DGA will now subadvise, the firm manages another $600 million in private wealth and institutional client money, he said.