Touchstone Investments today revealed that it is buying selected assets of Old Mutual Asset Management, increasing Touchstone's assets under management to nearly $10 billion and adding several new sub-advisors to its current roster of fund managers. Terms of the deal were not disclosed.
The deal is expected to be completed early in the second quarter of 2012. Upon the completion of the transaction, 17 Old Mutual Funds will be reorganized into Touchstone Funds with OMAM's affiliated investment managers continuing as sub-advisors to a significant majority of those Funds. Berkshire Capital is advising OMAM on the transaction.
The firms said they don't expect any material changes in the investment strategies employed by the reorganized Old Mutual Funds but that many of the funds will be marketed under the Touchstone brand.
"This transaction is a perfect fit with Touchstone's business model. Touchstone hires leading institutional money managers, experts in their respective asset classes, to sub-advise Touchstone Funds," stated Steven Graziano, president of Touchstone Investments. "The addition of Old Mutual's affiliated investment managers will increase the range of funds we offer and fills the gaps in our current lineup with boutique managers who have strong, long-term performance records."
"Touchstone's reach and expertise in distributing sub-advised mutual funds is the right complement to our business and will provide investors and their advisors better access to our affiliates' investment strategies," stated Peter Bain, OMAM's chief executive officer. "We believe this transaction is in the best interests of OMCAP's mutual fund shareholders and we look forward to working with our partners at Touchstone on an ongoing basis."
Touchstone Assets to Grow to $10 Billion with Acquisition of Fund Assets of Old Mutual
Strategic partnership leverages each company's core strengths
CINCINNATI, Oct. 4, 2011 /PRNewswire via COMTEX/ -- Touchstone Investments and Old Mutual Asset Management (OMAM) announced today that Touchstone Advisors, Inc. (Touchstone), a wholly owned subsidiary of Western & Southern Financial Group, has entered into a definitive agreement with OMAM, the U.S.-based global asset management business of Old Mutual plc, and its subsidiary Old Mutual Capital, Inc. (OMCAP) for Touchstone to acquire selected assets of OMAM's U.S. mutual fund business. The acquisition will increase Touchstone's assets under management to nearly $10 billion and add several new sub-advisors to its current roster of fund managers. Terms were not disclosed.
Consummation of the transaction is subject to certain conditions and approvals and is expected to be completed early in the second quarter of 2012. Upon the completion of the transaction, 17 Old Mutual Funds will be reorganized into Touchstone Funds with OMAM's affiliated investment managers continuing as sub-advisors to a significant majority of those Funds.
Touchstone remains dedicated to its sub-advised mutual fund approach and is committed to offering investment products based on partnerships with premier money managers, like Old Mutual's affiliates, who act in a sub-advisory capacity.
Touchstone's primary mission is to bring best-in-class institutional money managers to investors through its mutual funds. Touchstone also believes strongly in the value that financial advisors provide to the private client and institutional marketplace. As such, Touchstone distributes these funds exclusively through third-party intermediaries like registered investment advisors, private banks, and consultants, as well as through national, regional and independent broker-dealers.
"This transaction is a perfect fit with Touchstone's business model. Touchstone hires leading institutional money managers, experts in their respective asset classes, to sub-advise Touchstone Funds," said Steven M. Graziano, president of Touchstone Investments. "The addition of Old Mutual's affiliated investment managers will increase the range of funds we offer and fills the gaps in our current lineup with boutique managers who have strong, long-term performance records."
"Our partnership with Touchstone allows Old Mutual to focus on what we do best, namely manage institutionally-driven, active asset management strategies through our affiliates," said Peter L. Bain, OMAM's Chief Executive Officer. "Touchstone's reach and expertise in distributing sub-advised mutual funds is the right complement to our business and will provide investors and their advisors better access to our affiliates' investment strategies. We believe this transaction is in the best interests of OMCAP's mutual fund shareholders and we look forward to working with our partners at Touchstone on an ongoing basis."
Following the closing of the transaction, it is expected that there will be no material changes in the investment strategies employed by the reorganized Old Mutual Funds, though it is anticipated that many of the Funds will be marketed under the Touchstone brand.
Berkshire Capital is advising OMAM on the transaction.
About Touchstone Investments
Touchstone Investments is a mutual fund company committed to providing investors with access to institutional asset managers who act in a sub-advisory capacity. While its sub-advisors are held to strict performance standards, they work with a large measure of independence and operate within their own demonstrated areas of expertise. Touchstone's rigorous asset manager evaluation process and robust oversight approach are designed to ensure delivery on Touchstone's commitment of achieving competitive long-term results. The Touchstone Funds are advised by Touchstone Advisors, Inc., a registered investment advisor, and are distributed nationally through intermediaries including broker-dealers, financial planners and institutions by Touchstone Securities, Inc., a registered broker-dealer and member FINRA/SIPC. For more information, please visit www.touchstoneinvestments.com .
About Western & Southern Financial Group
With a heritage dating back to 1888, Western & Southern Financial Group (Western & Southern) is a Cincinnati-based Fortune 500 diversified family of financial services companies with assets owned, managed and under care in excess of $53 billion as of June 30, 2011. Western & Southern is one of eight groups in the world to earn Standard & Poor's AA+ rating for its life insurance units, and is consistently recognized by A.M. Best, Moody's and Fitch for financial strength and sound management. For more information, please visit www.westernsouthern.com . Western & Southern is the title sponsor of the Western & Southern Open tennis tournament.
About Old Mutual Asset Management
Old Mutual Asset Management (OMAM) is a global multi-boutique investment organization, managing and growing a diverse portfolio of asset managers that serve institutional and individual investors around the world. The assets under management of OMAM's 18 affiliated investment firms were $260 billion as of June 30, 2011. OMAM is the name through which Old Mutual (U.S.) Holdings Inc. conducts its U.S. asset management business. Its parent company is London-based Old Mutual plc. More information on OMAM, its member firms, and their investment teams and strategies, is available at www.oldmutualus.com .
About Old Mutual plc
Old Mutual plc is an international long-term savings, protection and investment Group. Originating in South Africa in 1845, the Group provides life assurance, asset management, banking and general insurance to more than 15 million customers in Europe, the Americas, Africa and Asia. Old Mutual plc is listed on the London Stock Exchange and the Johannesburg Stock Exchange, among others.
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