Touchstone Assets to Acquire Fund Assets of Old Mutual [Professional Services Close – Up]

<p lede="true">Touchstone Investments and Old Mutual Asset Management (OMAM) announced that <org value="ACORN:2350856925" idsrc="xmltag.org">Touchstone Advisors, Inc.</org> (Touchstone), a subsidiary of <org value="ACORN:2837991825" idsrc="xmltag.org">Western & Southern Financial Group</org>, has entered into a definitive agreement with OMAM, a U.S.-based global asset management business of <org value="NASDAQ-MF:OMCAX" idsrc="xmltag.org">Old Mutual plc</org>, and its subsidiary <org value="ACORN:1498446659" idsrc="xmltag.org">Old Mutual Capital, Inc.</org> (OMCAP) for Touchstone to acquire selected assets of OMAM's U.S. mutual fund business.</p><p lede="true">In a release, the Company noted details of the acquisition:</p><p>The acquisition will increase Touchstone's assets under management to nearly <money>$10 billion</money> and add several new sub-advisors to its current roster of fund managers. Terms were not disclosed.</p><p>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.</p><p>Touchstone said it remains dedicated to its sub-advised mutual fund approach and is committed to offering investment products based on partnerships with money managers, like <org value="NASDAQ-MF:OMCAX" idsrc="xmltag.org">Old Mutual's</org> affiliates, who act in a sub-advisory capacity.</p><p>The Company noted that its primary mission is to bring institutional money managers to investors through its mutual funds. Touchstone also believes 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.</p><p>"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 <person value="APIN:4150015123">Steven M. Graziano</person>, president of Touchstone Investments. "The addition of <org value="NASDAQ-MF:OMCAX" idsrc="xmltag.org">Old Mutual's</org> 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."</p><p>"Our partnership with Touchstone allows <org value="NASDAQ-MF:OMCAX" idsrc="xmltag.org">Old Mutual</org> to focus on what we do best, namely manage institutionally-driven, active asset management strategies through our affiliates," said <person>Peter L. Bain</person>, OMAM's CEO. "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."</p><p>Following the closing of the transaction, Touchstone reported that 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.</p><p><org>Berkshire Capital</org> is advising OMAM on the transaction.</p><p>Touchstone Investments is a mutual fund company committed to providing investors with access to institutional asset managers who act in a sub-advisory capacity.</p><p><org value="ACORN:2837991825" idsrc="xmltag.org">Western & Southern Financial Group</org> (Western & Southern) is a Fortune 500 diversified family of financial services companies.</p><p>Old Mutual Asset Management (OMAM) is a global multi-boutique investment organization, managing a diverse portfolio of asset managers that serve institutional and individual investors.</p><p><org value="NASDAQ-MF:OMCAX" idsrc="xmltag.org">Old Mutual plc</org> is an international long-term savings, protection and investment Group. The Group provides life assurance, asset management, banking and general insurance to customers in <location value="LR/eur" idsrc="xmltag.org">Europe</location>, the <location value="LR/am" idsrc="xmltag.org">Americas</location>, <location value="LR/afr" idsrc="xmltag.org">Africa</location> and <location value="LR/asp" idsrc="xmltag.org">Asia</location>.</p><p>More Information:</p><p><a href="http://www.touchstoneinvestments.com">www.touchstoneinvestments.com</a></p><p><a href="http://www.westernsouthern.com">www.westernsouthern.com</a></p><p><a href="http://www.oldmutualus.com">www.oldmutualus.com</a></p><p>((Comments on this story may be sent to <a href="mailto:[email protected]">[email protected]</a>))</p>