Goldman Sachs, the New York bank, announced on Monday that it is considering selling a portion of its wealth management division. The firm has put its Personal Financial Management unit up for sale, which currently manages assets worth $29 billion.
According to a company spokesperson, Goldman Sachs is evaluating options for this business in order to determine where to allocate its resources and identify the most promising opportunities. The objective is to achieve an outcome that benefits both clients and advisors.
This particular division focuses on serving the mass affluent market through an internal network of registered investment advisers. Despite this potential sale, Goldman Sachs remains committed to its ultra-high net worth wealth management division, which manages over $1 trillion in assets and serves more than 16,000 clients.
In addition, the bank plans to continue investing in and expanding services for the third-party registered investment advisor market. This includes offering various products and services such as asset management, custody, structured notes, stock lending, and deposit-taking.
It should be noted that Goldman Sachs' shares have experienced a 5% decline this year, in contrast to the 14% increase of the S&P 500 index. The Financial Times reported on Monday that CEO David Solomon enjoys the support of the company's board, but internal dissension will be discussed during an upcoming meeting next month.
