Touchstone to acquire certain assets of AIG Life & Retirement
AIG Life & Retirement, a division of AIG , and Touchstone Investments, an indirect wholly-owned subsidiary of Western & Southern Financial Group , announced they have entered into a definitive agreement for Touchstone to acquire certain assets of AIG Life & Retirement’s Retail Mutual Funds business.
AIG’s Life & Retirement’s Retail Mutual Funds business manages $7.8 billion in assets across eighteen funds as of December 31, 2020. In the proposed transaction, which is subject to fund shareholder approval and is expected to close in mid-2021, twelve funds with approximately $7.5 billion in assets would be reorganized into Touchstone funds.
Under the terms of the agreement, twelve retail mutual funds currently managed by SunAmerica Asset Management, LLC (SAAMCo), a member of AIG Life & Retirement, will be reorganized into either existing Touchstone funds or into newly created Touchstone funds, each of which is or will be advised by Touchstone. 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.
“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.” – Kevin Hogan, Executive Vice President and CEO of AIG Life & Retirement.
“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.” – Blake Moore, President and CEO of Touchstone.
After the completion of the acquisition, the Touchstone complex will exceed $30 billion in assets under management and will include 33 mutual funds across asset classes and investment styles for both retail and institutional investors.
