In addition, the acquisition will create new sub-advisory relationships with Fifth Third Asset Management.
“I am very excited about this transaction. In addition to increasing our assets under management, it gives us some new and interesting fund offerings, and access to a premier distribution system,” says Steven M. Graziano, president of Touchstone.
“Our transaction with Touchstone allows [Fifth Third] to focus on our core strengths — providing institutionally managed active management strategies,” says Keith Wirtz, chief investment officer of Fifth Third Asset Management.
The transaction is subject to certain conditions and approvals before it can close. Closing is expected in this year’s third quarter. Once completed, the 16 Fifth Third Asset Management funds will be reorganized into Touchstone funds, with Fifth Third Asset Management’s affiliated investment managers continuing as sub-advisors for certain funds.
The transaction is not expected to have a material impact on Fifth Third Bancorp’s results.
Danielle Reed writes for Financial Planning.