The transaction excludes AIG Life &
Retirement’s fund management platform dedicated to its variable
insurance products
AIG Life & Retirement, a division of American International
Group, Inc. (NYSE: AIG), and Touchstone Investments, an indirect
wholly-owned subsidiary of Western & Southern Financial Group,
today announced they have entered into a definitive agreement for
Touchstone to acquire certain assets of AIG Life & Retirement’s
Retail Mutual Funds business.
AIG’s Life & Retirement’s Retail Mutual Funds business
manages $7.8 billion in assets across eighteen funds as of December
31, 2020. In the proposed transaction, which is subject to fund
shareholder approval and is expected to close in mid-2021, twelve
funds with approximately $7.5 billion in assets would be
reorganized into Touchstone funds.
Under the terms of the agreement, twelve retail mutual funds
currently managed by SunAmerica Asset Management, LLC (SAAMCo), a
member of AIG Life & Retirement, will be reorganized into
either existing Touchstone funds or into newly created Touchstone
funds, each of which is or will be advised by Touchstone. Six
retail mutual funds currently managed by SAAMCo 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. Tables 1
and 2 below set out the proposed actions for each fund.
“Our retail mutual funds platform has been a pioneer in
rules-based investing and has generated long-term returns since its
inception,” said Kevin Hogan, Executive Vice President and CEO
of AIG Life & Retirement. “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. I would like to sincerely thank the team that has helped
to make the retail mutual funds business the success that it is
today.”
“We are committed to providing a seamless transition for AIG
funds’ shareholders to our Touchstone funds,” said Blake Moore,
President and CEO of Touchstone. “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.”
After the completion of the acquisition, the Touchstone complex
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.
Piper Sandler and Willkie Farr & Gallagher LLP advised AIG
on the transaction.
Table 1: AIG funds that will be mapped into existing
Touchstone Funds
AIG Fund
Reorganized into existing Touchstone
Funds
AIG Focused Alpha Large-Cap
Touchstone Large Cap Focused Fund
AIG Focused Growth Fund
Touchstone Sands Capital Select Growth
Fund
AIG Active Allocation Fund
Touchstone Balanced Fund
AIG Multi-Asset Allocation Fund
Touchstone Balanced Fund
AIG Strategic Value Fund
Touchstone Value Fund
AIG Senior Floating Rate Fund
Touchstone Credit Opportunities Fund
AIG U.S. Government Securities
Fund
Touchstone Active Bond Fund
AIG International Dividend Strategy
Fund
Touchstone International Equity Fund
Table 2: AIG funds that will be mapped into new Touchstone
funds
AIG Fund
Reorganized into new Touchstone
Funds
AIG Focused Dividend Strategy
Fund
Touchstone Dividend Equity Fund
AIG Select Dividend Growth Fund
AIG Strategic Bond Fund
Touchstone Strategic Income Opportunities
Fund
AIG Flexible Credit Fund
The AIG funds to be wound down are: AIG Government Money
Market Fund; AIG ESG Dividend Fund; AIG Income Explorer Fund; AIG
Small-Cap Fund; AIG Commodity Strategy Fund and the AIG Japan
Fund.
Disclosures
A Registration Statement for each of the Touchstone Dividend
Equity Fund and the Touchstone Strategic Income Opportunities Fund
has been filed with the Securities and Exchange Commission but is
not yet effective. Information contained herein is subject to
completion or amendment. Fund securities may not be sold nor may
offers to buy be accepted prior to the time the Registration
Statement becomes effective. This information shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of these securities in any state in which such
offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state.
Investors should consider a fund’s investment objectives, risks,
charges and expenses before investing. The prospectus and the
summary prospectus contain this and other information about the
fund. To obtain a prospectus or a summary prospectus for Touchstone
Funds, contact your financial advisor or download and/or request
one at TouchstoneInvestments.com/resources or call Touchstone at
800-638-8194; the prospectus and summary prospectus for an AIG Fund
can be obtained from your financial advisor, the AIG Funds Sales
Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Please read
the prospectus and/or summary prospectus carefully before
investing.
AIG Funds are advised by SunAmerica Asset Management, LLC
(SAAMCo) and distributed by AIG Capital Services, Inc. (ACS),
Member FINRA. Harborside 5, 185 Hudson Street, Suite 3300, Jersey
City, NJ 07311, 800-858-8850. SAAMCo and ACS are members of
American International Group, Inc. (AIG). Not FDIC or NCUA/NCUSIF
Insured. May Lose Value. No Bank or Credit Union Guarantee. Not a
Deposit. Not Insured by any Federal Government Agency.
Investors and shareholders of the AIG Funds are urged to the
read the proxy statement/prospectus filed with the SEC carefully
and in its entirety when it becomes available because it will
contain important information about the reorganizations. The proxy
statement/prospectus will not constitute an offer to buy or sell
securities in any state where such offer or sale is not permitted.
Shareholders may obtain a free copy of the proxy
statement/prospectus (when it becomes available) at the SEC’s web
site at www.sec.gov.
About AIG
American International Group, Inc. (AIG) is a leading global
insurance organization. AIG member companies provide a wide range
of property casualty insurance, life insurance, retirement
solutions, and other financial services to customers in more than
80 countries and jurisdictions. These diverse offerings include
products and services that help businesses and individuals protect
their assets, manage risks and provide for retirement security. AIG
common stock is listed on the New York Stock Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn:
www.linkedin.com/company/aig. These references with additional
information about AIG have been provided as a convenience, and the
information contained on such websites is not incorporated by
reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries and jurisdictions, and coverage is subject to
underwriting requirements and actual policy language. Non-insurance
products and services may be provided by independent third parties.
Certain property-casualty coverages may be provided by a surplus
lines insurer. Surplus lines insurers do not generally participate
in state guaranty funds, and insureds are therefore not protected
by such funds.
About Touchstone Investments
Touchstone Investments is a Distinctively Active mutual fund
company committed to providing investors with access to strategies
sub-advised by institutional asset managers. It employs an
integrated and rigorous process for identifying and partnering with
highly skilled asset managers with organizational stability,
quality personnel, strong adherence to investment discipline and
solid infrastructure. These attributes constitute what Touchstone
holds to be the necessary elements of repeatable and competitive
results over time. Touchstone advocates a robust approach when
constructing portfolios that use only active strategies or employ
active strategies to complement passive ones. This philosophy has
produced a diverse but focused product offering that gives
investors a full breadth of investment options across styles and
asset classes, including U.S. equity, international/global equity,
income and multi-asset funds. Based on fundamental investing,
Touchstone’s actively managed, high-conviction, concentrated
portfolios are benchmark aware but not benchmark constrained. 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. Touchstone, Touchstone Funds
and Touchstone Investments are federal service mark registrations
and applications owned by IFS Financial Services, Inc. Touchstone
Securities, Inc., Touchstone Advisors, Inc., and IFS Financial
Services, Inc., are members of Western & Southern Financial
Group. For more information, please visit
TouchstoneInvestments.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210208005772/en/
Sabra Purtill (Investors): sabra.purtill@aig.com Shelley Singh
(Investors): shelley.singh@aig.com Marc Hazelton (Media):
marc.hazelton@aig.com Sharon Karp (Touchstone):
sharon.karp@touchstonefunds.com
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