(Reuters) -Goldman Sachs' ( GS ) asset management arm has secured a deal to manage $43.4 billion worth of pension fund assets of parcel giant UPS in North America, the investment bank said on Thursday.

As part of the deal, the Goldman unit will provide investment management services for pension plan assets of UPS in the United States and Canada.

Companies often outsource the management of their pension funds to firms that have more experience navigating the financial markets.

Goldman Sachs Asset Management invests across asset classes, including stocks bonds and alternatives. The bank supervises more than $2.8 trillion of assets as of March 31.

The deal also underscores the growing significance of the asset management business at Goldman, which has been looking to diversify its revenue streams beyond trading and investment banking, which are more susceptible to shifts in the market.

The in house investment management team of UPS will join Goldman Sachs' ( GS ) Atlanta office and continue to provide services to the pension plans.

"This decision also allows UPS to place our focus more squarely on serving our customers while adding more oversight and expertise that will benefit retirees," said PJ Guido, Investor Relations Officer at UPS.

The companies expect the team transition to Goldman Sachs ( GS ) to take place in the third quarter of this year.

This change will not alter any benefits plan participants receive or how the plans are administered, a UPS spokesperson said.

(Reporting by Shivansh Tiwary and Niket Nishant in Bengaluru; Editing by Pooja Desai and Arun Koyyur)