AIG sells $7.5bn mutual fund assets to Touchstone

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AIG Life & Retirement, a division of American International Group, has agreed to sell certain assets of its retail mutual funds business to Touchstone Investments, an indirect wholly-owned subsidiary of Western & Southern Financial Group.

The proposed transaction includes 12 funds with approximately $7.5 billion in assets. AIG Life & Retirement’s retail mutual funds business manages $7.8 billion in assets across 18 funds as of December 31, 2020.

Following the deal, expected to close in mid-2021, 12 retail mutual funds currently managed by SunAmerica Asset Management, a member of AIG Life & Retirement, will be reorganised into either existing Touchstone funds or into newly created Touchstone funds.

The remaining six retail mutual funds currently managed by SunAmerica, 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.

After the completion of the acquisition, Touchstone 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.

Kevin Hogan, executive vice president and CEO of AIG Life & Retirement, said: “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.”

Blake Moore, president and CEO of Touchstone, commented: “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.”

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AIG, Touchstone, Mergers & Acquisitions, Insurance, Reinsurance, Kevin Hogan, North America

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