Touchstone Investments said Monday that its Touchstone Advisors Inc. had agreed to buy Constellation Investment Management Co. LP, adviser to the Constellation Funds Group's $2.8 billion of managed assets.
The deal, whose terms were not disclosed, would increase Touchstone's assets under management to $6.8 billion and add several subadvisers to its roster. It is expected to close in the first quarter.
Upon approval by Constellation Funds' shareholders, Touchstone, a wholly owned subsidiary of Western and Southern Financial Group, a Cincinnati family of financial services companies, would become the adviser to all the Constellation Funds. Constellation, a Berwyn, Pa., company, like Touchstone retains subadvisers to supply best-in-class institutional management. Touchstone said it remains dedicated to its subadvised mutual fund approach.
Constellation would add distribution channels - primarily registered investment advisers, private banks, and 401(k) plans - that are complementary to Touchstone's, the company said. It said its distribution has been through national, regional, and independent broker-dealers. The Constellation portfolios are expected to be marketed under the Touchstone brand once the deal closes.
