Just five months after agreeing to buy Old Mutual Asset Management’s funds from the firm’s U.S. mutual fund business, Cincinnati, Ohio-based Touchstone Advisors today revealed that it is acquiring the assets of 16 mutual funds from Fifth Third Bancorp.
The deal is expected to close some time in September 2012. It is expected to increase Touchstone’s assets under management to $13 billion (pending the closing of Touchstone’s Old Mutual deal this month) and create new sub-advisory relationships with FTAM. Fifth Third will be retained as sub-advisor for the Strategic Income Fund and Micro Cap Fund.
“It’s been a long and steady relationship,” Steven M. Graziano, president of Touchstone, told Money Management Executive. “They wanted to exit the mutual fund business but not the asset management business and we won the deal because they would be an important distribution partner for us.”
Grazianoi added that the deal gives Touchstone distribution reach into retirement plans and retail banking clients a well as new funds and added assets to existing Touchstone funds.
“Our transaction with Touchstone allows FTAM to focus on our core strengths – providing institutionally managed active asset management strategies,” stated Keith Wirtz, chief investment officer of FTAM.