May 16 (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.