Touchstone Investments said Monday that Touchstone Advisors
has wrapped up an agreement to buy Constellation Investment Management Company, L.P
., in a deal that will give Touchstone an additional $2.8 billion in fund assets. Terms of the sale were not made public.
The acquisition will push Touchstoneís assets under management to $6.8 billion from the current $4 billion. It will also add several new sub-advisors to the Cincinnati-based firmís lineup of managers.
The sale is expected to close in the first quarter of 2006.
Touchstone said it does not foresee any material change in investment strategies or in the investment professionals managing the funds. It added, however, that Constellation Funds will be pitched using the Touchstone brand after the completion of the transaction.
Touchstone also said that although it will be responsible for selecting and monitoring fund sub-advisors, Constellationís sub-advisors will remain responsible for the day-to-day management of the funds.
"The addition of Constellation Funds increases the range of funds we offer and fills the gaps in our current lineup with expert managers who have strong, long-term performance records," said James H. Grifo
, president of Touchstone Investments, in a statement.
"Beyond that, Constellation adds distribution channels that complement our existing relationships, so strategically, it's an ideal fit. The Constellation Funds are distributed primarily through registered investment advisors, private banks and 401(k) plans, while Touchstone's key distribution is through national, regional and independent broker-dealers," he added.
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