First Tennessee Bank, a division of First Horizon National, will merge its $1.4 billion First Funds family of eight mutual funds into Goldman Sachs's $532 billion stable of 35 funds, the companies announced late last week.
The bank decided to fold its funds into Goldman's in order to offer its clients a broader choice of funds, said Karen Kruse, First Tennessee's senior vice president of wealth management. She said the bank is committed to offering customers choices from more than one company through an open architecture platform.
"We look forward to serving the clients of First Funds," added James McNamara, managing director and head of third-party distribution at Goldman. "We believe that Goldman Sachs Asset Management's expertise across the global investment spectrum, and our commitment to delivering strong, consistent investment results, will benefit this new group of investors."
Pending shareholder approval in the first quarter of 2006, shares of the First Funds will be exchanged for the acquiring Goldman funds.
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