Touchstone Investments agreed to acquire the assets of Constellation Investment Management Co. and will start advising the Constellation Funds in the first half of 2006, said Touchstone President James Grifo. Terms were not disclosed. Touchstone, which has $4 billion in assets under management through eight subadvisers, will gain an additional $2.8 billion in assets through Constellation's platform of nine investment management subadvisers. The acquisition will expand Touchstone's reach into the institutional, 401(k) and registered investment adviser marketplaces, Mr. Grifo said. The deal will diversify Touchstone's current investment offerings, which are primarily growth equity strategies, by adding international, fixed-income and value equity strategies to its platform, he added.
John Grady, chairman and CEO of Constellation, could not be reached for comment by press time.