Touchstone Investments to acquire assets of AIG's retail mutual fund business

American International Group Inc.'s life and retirement division is selling some of the assets of its retail mutual funds business to Touchstone Investments.

Under the transaction, 12 AIG retail mutual funds managed by SunAmerica Asset Management LLC will be reorganized into either existing or newly created Touchstone funds. Six funds managed by SunAmerica will be wound down and liquidated.

AIG's life and retirement division decided to sell the funds as they are no longer core to its offerings, said Kevin Hogan, CEO of the division. Hogan said the sale is not related to the insurance giant's move to separate its life and retirement business.

AIG's life and retirement division will keep the fund management platform and capabilities for its variable insurance products.

Following the transaction, Touchstone's assets under management will surpass $30 billion, and the Western & Southern Financial Group Inc. indirect subsidiary will have 33 mutual funds across asset classes and investment styles for retail and institutional investors.

Fort Washington Investment Advisors Inc. will be subadviser to the newly created Touchstone Dividend Equity Fund and Touchstone Strategic Income Opportunities Fund. Fort Washington, Ares Capital Management II LLC, Barrow Hanley Mewhinney & Strauss LLC and Sands Capital Management LLC, as applicable, will continue as subadvisers of the existing Touchstone funds involved in the reorganizations.

The transaction is expected to close in mid-2021, subject to customary closing conditions, including the approval of AIG Retail Mutual Funds shareholders. The boards of trustees of AIG's retail mutual funds and Touchstone's funds have approved the transaction.

Piper Sandler and Willkie Farr & Gallagher LLP advised AIG on the transaction. J.P. Morgan Securities LLC, and K&L Gates LLP advised Touchstone Advisors Inc. and Western & Southern Financial Group.