In connection with the acquisition, approximately $5 billion of money market assets will be reorganized from four Fifth Third money market funds into four existing Federated money market funds with similar investment objectives.
“Our relationship with Federated provides us an exciting opportunity to grow our business in an area where scale is increasingly important,” said Kevin T. Kabat, president and CEO of Fifth Third Bancorp. “This action reduces risk and moves us more closely to trusted adviser status by being able to offer clients a broader choice of investment products.”
Closing of the transaction is subject to certain conditions and approvals and is expected to be completed in the third quarter of 2012.
In addition, Fifth Third Asset Management, Inc. (FTAM) and Touchstone have entered into an agreement under which Touchstone will be acquiring the assets of 16 mutual funds from FTAM.
The acquisition is expected to increase Touchstone’s assets under management to $13 billion (pending Touchstone’s acquisition of selected assets of Old Mutual Asset Management’s U.S. mutual fund business) and create new sub-advisory relationships with FTAM.
“Our transaction with Touchstone allows FTAM to focus on our core strengths — providing institutionally managed active asset management strategies,” said Keith Wirtz, chief investment officer of FTAM.
Closing of the transaction is subject to certain conditions and approvals and is expected to be completed in the third quarter of 2012. Upon the completion of the transaction, 16 FTAM funds will be reorganized into Touchstone Funds with FTAM’s affiliated investment managers continuing as sub-advisors for certain funds.