US parcel delivery company UPS has picked banking giant Goldman Sachs to handle its $43.4 billion pension fund assets in the United States and Canada.
UPS Enlists Goldman Sachs to Handle its Pension Funds
According to Reuters, this agreement highlights the increasing importance of the asset management business as Goldman Sachs looks to cut its dependence on unpredictable trading and investment banking.
For UPS, outsourcing the management of its pension funds will enable the company to concentrate more on its primary business operations. Large companies frequently delegate pension fund management to specialized firms with more financial market experience.
UPS Focusing on Customer Service
UPS Investor Relations Officer PJ Guido told Reuters that this decision allows UPS to focus on customer service while adding more oversight and expertise benefitting retirees.
The UPS in-house investment team will move to Goldman Sachs' Atlanta office and will remain to provide pension plans' services. According to a UPS spokesperson, this change will not impact the benefits or how the plans are handled.
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