Touchstone Investments and Old Mutual Asset Management have entered into an agreement whereby Touchstone will acquire the U.S. mutual fund business of Old Mutual, bringing Touchstone’s assets to nearly $10 billion. The deal will also add several new sub-advisors to Touchstone’s roster of fund managers.

Terms of the deal, expected to close in the second quarter of 2012, were not disclosed.

The deal adds 17 Old Mutual Funds to the Touchstone family. Old Mutual’s affiliated investment managers will continue to serve as sub-advisors to a majority of those 17 funds.

“This transaction is a perfect fit with Touchstone’s business model,” said Steven M. Graziano, president of Touchstone Investments. “Touchstone hires leading institutional money managers, experts in their respective asset classes, to sub-advise Touchstone Funds. The addition of Old Mutual’s 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.”

“Our partnership with Touchstone allows Old Mutual to focus on what we do best, namely manage institutionally driven, active asset management strategies through our affiliates,” said Peter L. Bain, chief executive officer of Old Mutual.

-- This article first appeared on Money Management Executive.