Touchstone Investments to Acquire Assets of AIG (AIG) Life & Retirement's Retail Mutual Funds Business

Touchstone Investments and AIG Life & Retirement, a division of American International Group, Inc. (NYSE: AIG), announced today that Touchstone Investments, a wholly owned subsidiary of Western & Southern Financial Group, has agreed to acquire select assets of AIG Life & Retirement's Retail Mutual Funds business.

AIG's Retail Mutual Funds business manages $7.8 billion in assets across 18 mutual funds as of Dec. 31, 2020. Under the terms of the purchase agreement, 12 of those funds – with approximately $7.5 billion in assets – will be reorganized and merged into either existing Touchstone funds or into newly created Touchstone funds. After the reorganizations, the funds will be advised by Touchstone Advisors, Inc.

See below for additional information about these funds.

Fort Washington Investment Advisors, Inc., a wholly owned subsidiary of Western & Southern Financial Group, will serve as sub-advisor to the newly created Touchstone Dividend Equity Fund and Touchstone Strategic Income Opportunities Fund (see below for important disclosures about the funds). Each newly created Touchstone fund will employ established strategies that Fort Washington offers to its institutional clients. The existing Touchstone funds involved in the reorganizations will continue to be sub-advised by Fort Washington, Ares Capital Management II LLC, Barrow, Hanley, Mewhinney & Strauss, and Sands Capital Management, as applicable.

"In addition to significantly increasing our assets under management, we will be offering two new funds that we believe will be important to investors and Touchstone going forward," said Blake Moore, president and chief executive officer of Touchstone Investments. "We welcome AIG Fund shareholders and their financial professionals to the Touchstone family."

Touchstone Investments is known for its distinctive approach employing institutional asset managers in a sub-advisory capacity.

"We remain dedicated to our sub-advised mutual fund approach and are committed to offering investment solutions based on partnerships with premier institutional asset managers," Moore said. "This acquisition reflects Touchstone's continued commitment to providing investors with access to best-in-class investment management through our mutual funds."

Moore added that he believes strongly in the value that financial professionals provide to individuals, families, corporations and others. As such, Touchstone distributes its funds through third-party intermediaries like registered investment advisors, private banks and consultants, as well as through financial professionals at national, regional and independent broker-dealers.

"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. "While we determined that it was no longer core to AIG Life & Retirement's offering, we are confident that the shareholders will benefit from the experienced management, strong distribution platform, scale and service that Touchstone will provide."

Closing of the transaction is expected to occur in mid-2021, subject to customary closing conditions including the approval of AIG Retail Mutual Funds shareholders. The boards of trustees of the AIG Retail Mutual Funds and the Touchstone funds have approved the transaction. (See below for important disclosures about the transaction.)

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

See below for information about these funds:

Information presented as of December 31, 2020:

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