Touchstone Investments, a subsidiary of Western & Southern Financial Group, has entered into a definitive agreement to acquire certain assets of AIG Life & Retirement’s Retail Mutual Funds business.
In the proposed transaction, which is expected to close in mid-2021, twelve funds with approximately $7.5 billion in assets will be acquired by Touchstone funds.
The twelve retail mutual funds currently managed by SunAmerica Asset Management (SAAMCo), a member of AIG Life & Retirement, will be reorganised into either existing Touchstone funds or into newly created ones.
Six retail mutual funds currently managed by SAAMCo not included in the transaction will be wound down and liquidated.
AIG Life & Retirement will retain its fund management platform and capabilities dedicated to its variable insurance products.
Kevin Hogan, Executive Vice President and CEO of AIG Life & Retirement commented: “Our retail mutual funds platform has been a pioneer in rules-based investing and has generated long-term returns since its inception.
“The decision to sell this business is not related to AIG’s decision to separate the Life & Retirement business, rather we determined that it was no longer core to our offering. We are confident that the funds’ shareholders will benefit from the experienced management, strong distribution platform, scale and service that Touchstone will provide.
“I would like to sincerely thank the team that has helped to make the retail mutual funds business the success that it is today.”
Blake Moore, President and CEO of Touchstone added: “We are committed to providing a seamless transition for AIG funds’ shareholders to our Touchstone funds.
“We believe that our actively managed mutual funds provide innovative solutions to help shareholders achieve their financial goals. We are confident that both AIG funds’ shareholders and their financial professionals will be well served by Touchstone.”