American International Group Inc. (AIG) has agreed to acquire a majority interest in John McStay Investment Counsel and its proprietary family of mutual funds, the Brazos funds, for an undisclosed sum. The transaction is expected to close in June.

"Expanding our global asset management business is a priority for AIG, and we are pleased to have signed this agreement with John McStay Investment Counsel, an outstanding firm with a group of professionals who have compiled an enviable record of investment performance for their clients," said M. R. Greenberg, chairman of AIG. "They will continue to manage their business as they done in the past, but will now have the benefit of the AIG and SunAmerica distribution networks to expand their Brazos mutual fund products. We view this as a strategic combination that will have strong benefits for both AIG and John McStay Investment Counsel."

John McStay, 56, founder and managing partner, will continue as chief executive officer of the new unit. The other three partners and eleven analyst/portfolio managers will remain as well and all will have equity interests. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE