Virtus Investment Partners Inc. has agreed to distribute and handle all advisory services for The Phoenix Cos.’ $1.6 billion-asset Edge Series Fund.
Both Hartford firms announced the deal Wednesday, cementing the close ties they have maintained despite Virtus being spun off from The Phoenix on Jan. 1, 2009.
Virtus will rename the trust the Virtus Variable Insurance Trust, which will now be marketed to other insurance and annuity companies.
Edge Series Fund President Philip Polkingham said the transaction fits Phoenix’s goal to enter strategic partnerships with organizations that have particular expertise and benefit Phoenix customers.
For Virtus, it retains a valuable relationship while gaining the opportunity to expand its footprint as an asset manager, said CEO George Aylward.
The trust comprises 17 funds and $1.6 billion in assets as of June 30 that are investment options in Phoenix’s variable life and annuity products. Â Virtus currently serves as administrator to the trust and subadvisor to $300 million of fund assets, and will assume subadvisory responsibilities for an additional $500 million of fund assets.
Goodwin Capital Advisers, an affiliate of Phoenix, and Aberdeen Asset Management will continue to manage $700 million of assets under subadvisory agreements with Virtus.
Four of the funds, with approximately $100 million of assets, will not be part of the transaction and will be merged into a third-party variable insurance trust at a later date. Â Phoenix has an additional $2.2 billion of variable product assets managed by external advisors.
