Guardian Life Insurance Co. of America will acquire a 65% stake in RS Investments, confirmed Dennis Manning, Guardian CEO. The deal will make RS Investments an independent subsidiary of Guardian, with RS Investments CEO Terry Otton and the existing management team remaining at the helm. Terms of the agreement were not disclosed.
Guardian's Park Avenue Portfolio family of 13 core equity and fixed-income mutual funds will be branded under the RS Investments name and integrated with RS Investments' 11 growth and value mutual funds later this year, subject to necessary approvals, company executives said. There will be no changes to RS Investments' portfolio management, Mr. Otton said. With the changes, RS Investments will have $17 billion in assets under management, up from $11.8 billion today.
"We view this (deal) as a significant win for our shareholders," Mr. Otton said. The transaction creates "equity incentives" for the next generation of RS professionals, he added.