Bloomberg News

Goldman Sachs to Buy Mutual-Fund Unit of Dividend Growth

December 13, 2011

(Updates with details of fund reorganization in fourth paragraph.)

Dec. 12 (Bloomberg) -- Goldman Sachs Group Inc.’s money- management unit agreed to buy the mutual-fund management business of Dividend Growth Advisors LLC to increase its income- oriented offerings. Terms were not disclosed.

The acquired business includes the Rising Dividend Growth Fund, which had $153 million in assets of Oct. 31, New York- based Goldman Sachs Asset Management said today in a statement. Dividend Growth Advisors is a closely held money-management company based in South Carolina.

Goldman Sachs Asset Management, which has $821 billion in assets, said the purchase will broaden its mutual-fund offerings to include strategies that provide investors with an income stream through the payment of dividends. The fund, which will now be called the Goldman Sachs Rising Dividend Growth Fund, invests in companies that have paid dividends that increase by at least 10 percent a year for a minimum of 10 consecutive years.

The fund’s reorganization must be approved by its shareholders, with a vote expected in the first quarter of 2012, according to the statement.

The Rising Dividend fund has advanced at an average annual rate of 4.6 percent over the past five years, beating 98 percent of similarly-managed funds, according to data compiled by Bloomberg. This year, the fund has increased 2.5 percent, better than 72 percent of peers.

--Editors: Steven Crabill, Josh Friedman

To contact the reporters on this story: Sree Vidya Bhaktavatsalam in Boston at sbhaktavatsa@bloomberg.net; Will Daley in New York at wdaley2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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