Old Mutual Asset Management (OMAM) has announced the sale of Dwight Asset Management to Goldman Sachs Asset Management (GSAM).

GSAM agreed the deal as part of its increased focus on establishing its position in the defined contribution (DC) investment-only business.

The acquisition is expected to be completed in the second quarter of 2012.

Chief executive of OMAM Peter Bain explained, ‘For OMAM, the transaction will free up capital to redeploy into our global distribution and asset management franchise.

‘We remain committed to building our multi-boutique business around long-term, institutionally-driven, active asset management.’

Eric Lane and Timothy O’Neill, co-heads of the investment management division at Goldman Sachs, said the acquisition of Dwight would enable the business to provide more investment solutions to those clients with DC plans who want to ‘grow their hard earned retirement savings’.

‘Many of our clients are focused on stable value as an important asset class for DC plans and Dwight has been an innovator in this space,’ Lane and O’Neill added.

Dwight provides fixed income investment management services to institutional clients, such as retirement plans and insurance companies.

As of 31 December 2011, Dwight managed and advised for approximately $42 billion (£26.4 billion) of assets.