Nearly four years after Goldman Sachs Group Inc. got out of the target-date business, the company is getting back in.
In July 2012, it filed a notice with the Securities and Exchange Commission saying it would close its six target-date funds to new investments and liquidate the funds later in the year.
Neither the company's filing nor a spokeswoman commented in 2012 on why Goldman Sachs decided to leave.
But the company is eager to talk about why it's getting back in.
“Our goal is to provide our clients with a full suite of investment solutions that are essential to helping investors reach their retirement savings goals,” Andrew Williams, a company spokesman, wrote in an e-mail. ”For the last several years, target-date funds were a gap in our comprehensive suite of our DC-focused products.”
The company has missed AUM growth opportunities.
In 2015, for example, mutual fund target-date fund assets rose to $763 billion from $706 billion in 2014, Morningstar recently reported.
According to a registration statement filed May 25 with the SEC, New York-based Goldman Sachs said it plans to acquire four target-date funds — 2020, 2030, 2040 and 2050 vintages — from Madison Asset Management LLC, Madison, Wis. The filing said Madison shareholders will vote Aug. 4 on selling the assets.
Mr. Williams wrote that his company hopes to launch its target-date versions later this year. Goldman Sachs Asset Management will be the investment adviser and Madison Asset Management will be the subadviser, he added.
The Madison Target Retirement Funds, which had $195.4 million in assets as of Dec. 31, will be renamed Goldman Sachs Target Date Portfolios.