First Tennessee Bank
is the latest bank to drop out of the mutual fund races. The Memphis-based bank is sending its First Funds to Goldman Sachs Asset Management were they will be merged into the investment banker's fund family.
The First Funds family encompasses two equity funds, two fixed income funds, a Tennessee tax-free fund, and three money market funds, all of which will merge with corresponding funds managed by GSAM. First Funds has about $1.4 billion in assets under management.
The move, officials said, is key in its shift towards an open architecture environment.
Pending fund shareholder and regulatory approvals, the merger is seen to be completed within the first quarter of 2006, at which point the assets of First Funds will be exchanged for shares of the acquiring Goldman Sachs funds.
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