- Global investment capabilities of Goldman Sachs will benefit UPS pensioners
- One of the largest corporate pension outsourced chief investment officer (OCIO) mandates to date
Goldman Sachs Asset Management (“Goldman Sachs”) 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. UPS’s North American pension plans have a combined $43.4 billion in assets as of March 31, 2024.
The partnership is one of the largest corporate pension OCIO mandates to date and continues the trend of increasingly large and complex plan sponsors seeking robust outsourced solutions for the management of their pension portfolios. The mandate affirms Goldman Sachs’ position as the largest OCIO manager in the US, with over $325 billion in OCIO assets under supervision globally.1
As part of this appointment, the UPS in-house investment management team is expected to join Goldman Sachs’ Atlanta office and to continue to provide investment management services to the pension plans. The team transition helps further Goldman Sachs’ commitment to expanding its Atlanta presence, adding deep pension expertise to its growing local office of approximately 200 employees. It is expected that the asset management and team transition to Goldman Sachs will take place in the third quarter of 2024.
The UPS pension plans will benefit from both continuity and enhanced services through the global investment and risk management capabilities of Goldman Sachs and the integration of the in-house team.
The decision by the plan fiduciaries to appoint Goldman Sachs follows a competitive search process and reflects the firm’s deep experience in partnering with pension plans of all sizes and integrating investment teams. Goldman Sachs has proven strength in liability-driven investing (“LDI”) to help protect pensioners’ benefits, offers one of the world’s leading open architecture platforms, and has extensive investment capabilities and experience across public and private markets.
Marc Nachmann, Global Head of Asset & Wealth Management at Goldman Sachs, said:
“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.”
PJ Guido, SVP Capital Markets and Investor Relations Officer at UPS, said:
“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.”
Source: Goldman Sachs Asset Management
