Citing the small fund familys inability to survive on its own, Citizens Banking Corp. this week announced that its Golden Oak mutual funds would become the joint possession of Goldman Sachs and Federated Investors, Reuters reports.
The Golden Oak funds possess about $465 million in assets under management, and James Schmelter, the executive vice president in charge of wealth management at CBC, said the company already has working relationships with both Federated and Goldman Sachs. The company expects the transition to be completed by the end of September.
"Our funds had not reached a size of critical mass, and we didnt have a large enough distribution network," Schmelter said, adding, "The new regulatory demands would have forced us to really beef up."
The Golden Oak funds Web site, goldenoakfunds.com, is currently under construction and contains no information. Flint, Mich.-based Citizens has $7.8 billion in assets under management.