Touchstone Investments, a Cincinnati-based mutual fund company, completed its acquisition of 16 mutual funds from Fifth Third Asset Management. The deal allows Touchstone to jump start its presence in the 401k and trust arena—a sector that Touchstone previously had identified as a prime growth opportunity—because the newly acquired funds already have strong relationships in that space, especially among smaller plans.

The acquisition, first announced in April, gives Touchstone 47 funds in its line-up with assets under management of $13.5 billion. Touchtone also struck a new sub-advisory relationship with FTAM which will see FTAM's funds reorganized into Touchstone Funds and FTAM's managers continuing as sub-advisors for the newly acquired funds.

“In addition to increasing our assets under management, [the acquisition] gives us some new and interesting fund offerings, and access to a premier distribution system,” stated Steven Graziano, president of Touchstone Investments, in a statement, adding that like with its other fund products, Touchstone will distribute the newly acquired funds through third-party intermediaries like registered investment advisors, consultants, private banks and broker-dealers.

FTAM is the institutional advisory arm of Fifth Third Bancorp, a Cincinnati-based banking company that had $118 billion in assets as of June 30.

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