Goldman Sachs has decided to sell its Personal Financial Management unit

Goldman Sachs Group Inc (NYSE: GS) inched up 1.0% on Monday after revealing plans of offloading its Personal Financial Management business to Creative Planning.

Goldman Sachs to restore focus on ultra-rich clientele

What the Kansas-based financial advisor is paying for its PFM unit remains unknown.

Goldman Sachs expects the transaction to complete in the final quarter of this year. March Nachmann – its Global Head of Asset & Wealth Management said today in a press release:

We will continue to support PFM and other Creative advisors with access to our investment solutions through our expanded strategic agreement.

The said agreement will enable the financial services behemoth to restore focus on its core ultra-rich clientele. Shares of Goldman Sachs Group Inc are down about 13% versus their year-to-date high at writing.

Goldman Sachs will get to improve its profit margin

Daniel Fannon – a Jefferies analyst expects today’s announcement to help Goldman Sachs improve its profit margin attributed to its asset and wealth management business.

Goldman Sachs is getting closer to becoming the more durable and profitable business it outlined at investor day.

The bank’s profit margin came in at a bit over 11% in its latest reported quarter. Note that Goldman Sachs has been trimming its consumer loan portfolio this year and has considered offloading its fintech unit GreenSky as well.  

Creating Planning currently has a workforce of over 2,100 and a whopping $245 billion worth of assets under management. The deal with Goldman Sachs will help strengthen its name as a national registered investment advisor.